Philips Consumer Electronics has selected IBM Corp. to both improve and manage its service activities in North America. The multiyear agreement is valued at about $300 million and is expected to start in May. According to Somers, N.Y.-based IBM, a key part of the initiative includes IBM business consultants and technology services specialists redesigning Philips' customer service processes. Those processes include parts logistics, contact centers, warranty entitlement and claims processing, field service management, depot repair, Web self-help and others. "The service transformation is consistent with the business renewal program of the consumer electronics division, which includes a global service strategy to pursue a broader partnering approach across the total service value chain," explains Rudy Provoost, senior vice president, Royal Philips Electronics, Amsterdam, and CEO, Global Sales and Services Consumer Electronics.