The busine ss issue
As one of the leading manufactu rers of industrial off-road machinery and vehicles in the
world, Komatsu’s operations are vast, spanning multiple continents and divisions. Komatsu
Europe International (KEISA) manages operations and sales for Komatsu’s construction and
mining interests in Europe, the Middle East and Africa. About 90 percent of Komatsu’s
production takes place on a bu ilt-to-order basis, which makes high-performance IT c apable
of su pporting mac hine orders, parts distribu tion and warranty administration worldwide an
absolute must.
However, the 15-year-old mainframe-based warranty application that supported three of the
com pany ’s four European fac tories had reached the end of its life c ycle. So KEISA set ou t in
searc h of a robust new warranty and claims solu tion that could enhance the acc uracy and
quality of data gathered during the claims process while strengthening collaboration across
Komatsu’s various divisions. The existing m ainframe application was only available to KEISA’s
internal users so business with external dealers, distributors and suppliers had to be handled
manu ally. The company mailed/faxed c laims to data-entry c ompanies who then entered this
information into the system , a time-consuming process that often left dealers and
distributors unsatisfied. Clearly , KEISA needed to modernize its laborious paper claims
processes. This would ensure m ore efficient and reliable claims entry and approval proc esses,
resulting in lower costs associated with human error and inefficiencies. To make it happen,
the earthmoving equipment leader made its m ove to EDS.
Our approach
To develop a centralized, streamlined applic ation for the After Sales & Warranty group, KEIS A
service managers across all four European factories had to agree on a common set of business
processes. EDS then conduc ted an arc hitecture study to help define the requirements for the
new applic ation.
Strengthening distributor satisfaction via
a best-in-class warranty application
Innovative .NET architecture helps cut costs and power productivity
Komatsu Europe International
A new claims and warranty system relying on .NET architecture helped one of the world’s leading construction equipment companies
complete its transition from an outdated mainframe infrastructure to a next-generation enterprise environment.
The new system processes
the information we need
when a customer wants to
make a warranty claim via
his dealer. In addition, the
dealer is now able to enter
information directly into
the system, for example
with the request to refund
certain costs or parts. The
system then advises the
Komatsu employee whether
the claim is admissible
or not.
Chris Borremans
General Manager, European IT
Komatsu Europe International
case stud y
Methodology and technology
EDS reused existing .NET code, which in
combinat ion with daily builds and
automated deployment, helped the
development team focus on the m ore
complicated task of implement ing busines s
logic. As a result, EDS built a complex
warranty and claims application fro m
scratch in less than one year.
The team relied on Microso ft’s SQL
Server 2000 database to develop the .NET
environment and its Visual Studio 2003
so lut ion as the front-end system fo r the
migratio n. ED S also integrated Microsoft’s
Biztalk 2004 business rule engine into t he
.NET application.
S ervices featured
Applicat ions Development
Applicat ions Modernization
Driven by KEISA’s cost-cutting v ision and need for greater functionality, EDS
recommended implementing the new application using Microsoft .NET
technology . When designing the new architecture, EDS customized a reusable set
of components specifically to KEISA’s needs, enhancing the best that was already
available in EDS’ proven portfolio. The team chose a phased approach to
application development and implemented the solution in four six-week phases.
This allowed key users the opportunity to test the application at each stage and
make recommendations in order to ensure optimum usability.
With user bu y-in sec ured, EDS installed the new warranty application on
Komatsu’s central servers, transitioning all four fac tories and the entire
Komatsu operation from an aging mainframe environment to a next-generation
enterprise architecture.
“It is a big step to move from a mainframe screen to a .NET screen,” says Chris
Borremans, general manager of Eu ropean IT at KEISA. Indeed, a one-week
training program to acclimate independent distributors convinced KEISA service
managers that the applic ation was fool-proof, and with that, the application went
live throughout Eu rope.
The results
“We shut down the mainframe in Vilvoorde on February 1, 2005,” continu es Chris
Borremans. “In the meantime we hav e also completed the data conversion and
have transferred to the new system.”
Although the rollout to dealers and distributors is ongoing, many can already
access and process claims in the warranty application fast and flawlessly from
anywhere at any time. In addition, every thing from machine delivery and
inspection to dam aged part return and claims collection is stream lined and
centralized. As a result, the company has been able to significantly increase
supplier recharge for damaged parts and better evaluate the validity of
claims – both of whic h contribute direc tly to K EISA’s bottom line.
What’s more, better quality claims data provide an important resource for service
improvement that was not possible with the mainframe solution.
Today, the best-in-class application supports sales and distribu tion for more than
150,000 machines, 2 million parts and 300,0 00 claims, not to mention more than
300 dealers and distributors who will soon enjoy effortless access to KEISA’s
systems – ultimately strengthening Komatsu ’s relationship with this market and
its c ustomers.
ED S a n d th e ED S l o g o a re r e g is te r e d tr a d e m ar k s o f E l ec t ro n i c Da t a Sy st e m s Co r p o r a t io n . A l l o t h e r b r an d o r p r o d u ct n a m e s a re t r ad e m a r k s
o r re g i st e r ed m a r k s o f t h e i r r e sp e ct i ve o wn e rs. ED S is an e q u a l o p p o r tu n i t y e m p l oy e r a n d va l u e s th e d i ve r si ty o f i ts pe o p l e . Co p y r ig h t © 2 0 06
El e ct ro n i c D a ta Sys te m s Co r p o r at i o n . A l l r i g h ts r e se r ve d . 02 /2 0 06 5 042 3 -R CS
case stud y
EDS remains a big name
with an impressive list of
references. We knew EDS
would be a stable partner
for us, but also one who
works according to proper
Chris Borremans
General Manager, European IT
Komatsu Europe International
5400 Legacy Drive
Plano, Texas 75024-3199
phone: 1 866 337 2584
visit: eds.com
e-mail: info@eds.com