Companion Piece to Bill Pollock’s Field Service Experts Interview, Posted by Mobile Reach

[This companion piece to the Field Service Experts interview series posted by www.MobileReach.com focuses on “The Future of Field Service Management”. As is generally the case with interview pieces, most of the responses are not included in the published feature. As such, please consider this Blog as a more detailed companion piece that provides additional “between the lines” thoughts and opinions.]

Questions for Bill Pollock:

Q1: You’ve seen field service evolve over the years in your various roles. In what ways is field service management changing now? 

BP: I’ve seen the Field Service segment evolve several times over the years, from break/fix, to network services, to software support and such. However, the introduction of the Internet of Things, or IoT, is going to have a much greater and profound impact on the global services community than anything else that has preceded it! In fact, it already is!

For years, services managers have been talking about ways in which to reduce a “truck roll” in order to save money, and repair the customer’s equipment remotely – first, by phone, or assisted self-help; and, now, via remote diagnostics and even predictive diagnostics.

Truck rolls are not necessarily a thing of the past; however, they have greatly diminished in frequency as a result of the integration of the IoT into Field Service Management (FSM) systems.

Improvements in business analytics have also assisted field service managers in their ability to manage their entire business operations – and not just the field service aspects of the business. There are more analytical tools available now than ever before, and most managers are actively engaging their dashboards, so they can intelligently manage their field service operations.

Through the use of Augmented Reality (AR) apps, now actively being combined with Virtual Reality (VR) to form a more complex and robust “Mixed Reality” (MR) capability, we are likely to see even more advances in the types of technology that will ultimately reduce the cost of performing service – for both on-site and remote repairs – over time.

Also, with technology visionaries like Elon Musk, who started out with his Tesla business, branching into solar panels and, of course, SpaceX, we are likely to see more and more technological advances coming down the pike. For example, Musk’s new venture, Neuralink, has set its goals on attaining the ability to “merge” the power of the human brain with the power of the IoT, in order to upload and download “human thoughts” onto chips, and vice versa. Imagine the impact that new ventures like this will have on all aspects of business, if successful! All of a sudden, veteran field services technicians will become just as important as the influx of computer-savvy millennials with respect to their experiential value to the Field Service Organization (FSO).

The process goes on and on, and field service management will continue to evolve over time, as a result.

Q2: What are the strategic opportunities you’re seeing for field service organizations?

BP: The greatest strategic opportunities for FSOs will be to gain additional efficiencies as they use the IoT to power their field service operations. Of course, the converse is equally true, in that those FSOs that do not step up to the challenge will ultimately find themselves falling further and further behind the technology curve, their customers’ expectations for quality of service delivery, and their ability to compete head-to-head against not only the market leaders, but any small, medium or enterprise-sized services organization that has already embraced the new technologies.

There may still be a “wait and see” attitude toward AR, VR and MR at this time, as no single solution provider has come out with an industry-leading solution just yet. Anyone remember the decision as to whether to go with the Sony BetaMax or VHS? For many organizations, it’s the videotape wars all over again!

However, regardless of the organization’s size, vertical industry segment or geographic coverage, there are ample opportunities for ALL services organizations to take advantage of the IoT and Cloud-based FSM solutions to take their operations to the next level.

From our most recent Field Service Management Benchmark Survey Update, conducted in December/January 2017, we find that the top two drivers influencing the global services community, as cited by a majority of respondents, are (1) customer demand for quicker response time, and (2) need to improve workforce utilization and productivity. The question arises, then, “How can the services organization adequately address these two key issues without the strategic advantage of an IoT-powered FSM solution? ”The answer, of course, is increasingly. “It can’t!”

Other strategic opportunities can also come through strategic partnering with complementary technology solution providers. PTC is doing this with ServiceMax, and their respective relationships with GE Digital (ServiceMax’s parent company); and many smaller FSOs are involved in supporting partnerships with either Microsoft, for its CRM capabilities, and/or Salesforce, for its sales and marketing management tools; etc. Customers want what they want, and in most cases, they don’t care whether their primary FSM solution vendor is offering its services directly or indirectly through strategic partnerships. In fact, many customers like the fact that their FSM vendor is linked in some way to GE Digital, Microsoft, Salesforce or other industry giants.

Q3: What features in field service platforms are critical now and what will be necessary in the future?

BP: For many FSOs, a standard scheduling functionality is simply not doing the job anymore, and many have set their sights on solution providers that can offer optimized scheduling, etc. The same applies to standard business analytics vs. advanced analytics, as well as for the various components of spare parts and inventory management. In fact, what used to be “passable” in the past, now looks a little bit “dusty” and, as such, some FSOs have elected to move forward with more robust functionalities made possible through the integration of the IoT into their FSM systems.

Nowadays, legacy platforms may not be able to accommodate such new technology apps as AR, VR and MR, and, as a result, newer platforms need to be implemented to power these new capabilities. The same goes for implementing predictive diagnostics and remote diagnostics capabilities for most FSOs.

Mobility is also important, particularly with respect to real-time data collection, sharing and transmission to relevant parties within the organization. Can the organization’s existing platform handle all of these new technologies? Probably not! Therefore, newer platforms will need to be implemented, and they will need to be pretty much state-of-the-art.

Q4: What role do you see the Internet of Things playing in field service management?

BP: The Internet of Things (IoT) is becoming an integral component of ANY FSO’s desire to be able to improve its services processes, streamline its services processes, collect and share business analytic data, and serve the customer better. It’s already here!

FSOs will be greatly behind the technology curve if they do not have existing IoT-powered FSM capabilities – or at least a primary FSM solution provider that does. The IoT is quickly becoming the chief differentiator that divides those FSOs that can meet the challenges of the present, let alone the future; from those that cannot.

Without the IoT, there can be no predictive diagnostics; there could be no AR, VR or MR; there could be no chance of being able to compete directly against those FSO who do have these capabilities. Just as Cloud-based FSM solutions normalized the playing field across all services industry segments, the IoT is now doing the same – but on steroids!

In the past, falling behind the technological curve still gave the FSO an opportunity to catch up in another year or so. However, there is not that much time available for catching up anymore. Falling behind for just a few months may represent too much of a gap to make up.

The IoT allows all FSOs to keep pace with the market leaders, regardless of their size, reach or reputation, etc.

Q5: How are mobile technologies changing the way field service organizations interact with and serve customers?

BP: Mobile technologies are, of course, also of critical importance to FSOs. Without a full complement of mobility, it would be as if you’ve got all this technology “hidden” in your office, but you can’t share the benefits with your field force or customers. This is particularly true with respect to customer engagement activities and business analytics.

For example, competitors may already have the capability to generate customer contracts, invoices and other types of paperwork right at the customer site. They can obtain a customer’s signature immediately and, by doing so, eliminate much of the “float” that has been historically associated with paper-based forms management and USPS “snail” mail, etc.

Mobile technologies can also make an FSO’s business analytics capabilities much more vibrant. What good does it do to collect real-time data if you can’t share it in real time? In other words, a full-bodied mobility platform can improve any FSOs “velocity of service” by shaving off days, if not weeks, of delays and potential paper-based mistakes, etc.

Having the IoT generate data in real time, but not getting relevant data and information out to the field in real time, is a big mistake. The combination of the IoT and mobility can help FSOs avoid this opportunity cost.

Q6: How are you seeing field service organizations use mobile technologies to drive revenue and maintain a competitive advantage?

BP: The float issue is only one small component of how mobile technologies can assist in driving revenue and maintaining a competitive advantage. There are many others, as well.

However, it is important to note that, if all you’re doing is automating bad processes, then you’ll only be doing all of the wrong things faster – but not better! That’s why it’s so important to use the tools of a Cloud-based FSM solution, powered by the IoT, to improve your processes first; empower your field techs with real-time data, information and analytics; empower your customers through customer portals and self-help platforms; and generally perform all of your services activities better. Then, you can see additional benefits by doing it all faster – that is, through the functionalities of the IoT, etc.

By doing so, customers will recognize the improvements you have made and, therefore, will be more reliant on the organization for future services needs and requirements, upsells and cross-sells, etc. This will have the combined impact of reducing the cost of customer acquisition, while simultaneously increasing the existing revenue stream. Then, increases in customer satisfaction metrics can be used to promote the organization’s competitive advantage, which can also benefit from the fruits of social media coverage and word of mouth. But, it all starts with making improvements to the processes!

Q7: How can field service organizations better capitalize on sales opportunities?

BP: One area where many services organizations do not do a good enough job is in the area of contract and warranty management. It’s so simple; but it’s not “sexy” or “glitzy” enough.

However, by using an FSM solution that has a contract management and warranty management capability built into it, or by finding a reputable warranty management solution provider, an FSO can focus directly on contract attachments, contract renewals and contract management, all of which can contribute to generating not only an increased revenue stream, but one that is also a more predictable revenue stream.

The increased use of business and customer analytics can also provide the organization with increased insight into which customers may require expanded services agreement based on anything from surpassing their throughput limits for existing equipment, repetitive failures for the same problems; or to make adjustments for an expansion of the business, a recent acquisition or merger, or the increase in the number of daily shifts using the equipment; etc.  This is something that the organization’s field techs can recognize either through the customer analytics they have access to, or simply by being at the customer site on a recurring basis.

Many FSOs also do not have the expertise for upselling and/or cross-selling their existing customers. This is a critical component for any business – not just for field services. If you do not already have these capabilities, you may need a new, highly-trained salesperson, or a process for ensuring that no sales opportunity goes unrecognized.

Q8: How is the broader economy affecting field service management?

BP: The broader economy affects businesses of all types, including field services. However, field services has one thing going for it that many other industry segments don’t (i.e., particularly manufacturing and product sales) – that is, while not necessary recession-proof, businesses will always need their systems, equipment and devices to be up and running for the duration – in many cases, in spite of what it may cost to do so.

Even at reduced capacity, factories will need their production lines to continue to operate; hospitals will need their medical devices to be readily available; banks will need their transaction-related systems to run continuously; and so on. However, Business-to-Consumer, or B2C-focused services organizations may feel the full brunt of any economic downturn, as a majority of consumers may opt to wait until they can afford to have their home electronics serviced until they can better afford to pay for those services.

A broadly robust economy can stimulate increased product sales, which in turn, can stimulate increased services opportunities; conversely, a poor economy can dampen everything – including the field services segment.

However, the sign of a truly progressive services organization is one that has already taken into account the effects of a weakened economy and planned on how to best deal with a temporarily reduced workforce (through the use of a Freelance Management System, or FMS, solution); temporarily diminished service call activity; or the like. If these types of economic-influenced events occur, those FSOs that have already taken measures to address these temporary downturns can more effectively “roll with the punches”.

Q9: How is the role of Chief Service Officer evolving?

BP: The role of the Chief Service Officer (CSO) has already evolved significantly over the past several years. In many cases, today’s (and tomorrow’s) CSO must also be a Chief Data Officer (CDO) willing and able to manage the data and business analytics that drive the operations of the services business.

He or she must also be a Chief Customer Officer (CCO), once again, willing and able to interface with the customer directly when customer problems need to be escalated. As you can imagine, the role of the CSO can also be expanded to be the Chief Operations Officer (COO), Chief Business Development Officer (CBDO), Chief Social Media Officer (CSMO) and …, well, you get my gist!

The days of simply managing a staff of dispatchers, field technicians and administrative assistants are long over. From this point forward, all CSOs must also be accomplished and experienced in a much larger variety of customer-facing, analytics, business development, sales, marketing and social media functions.

Q10: What are the top three KPIs that you recommend FSM organizations focus on? How might those KPIs change five years from now?

BP:  Basically, the rule of thumb is that you should be measuring all of the metrics that focus on areas where you are underperforming, or have recognized (or suspected) problems in service delivery. For example, if your customer satisfaction ratings are lower than desired, then you will need to measure and track customer satisfaction ratings; if your on-site response time is deficient, then you will need to measure things such as on-site response, providing an Estimated Time for Arrival (ETA); etc.

There are also several Key Performance Indicators, or KPIs, that a majority of  FSOs measure, based on the results of our 2017 Field Service Management Benchmark Survey. For example, the top KPIs currently being measured by a majority of FSOs are:

  • (73%) Customer Satisfaction
  • (62%) Total Service revenue
  • (61%) Total Service Cost
  • (53%) Field Technician Utilization
  • (50%) On-site Response Time
  • (49%) First Time Fix Rate

However, it should also be noted that a majority of Best Practices FSOs (i.e., those that are attaining both 90%+ Customer Satisfaction and 30%+ Services Profitability) typically measure twice as many KPIs as the average FSOs.

Five years from now – actually, even sooner – there will also be an entirely “new” way of collecting data and reporting KPIs as a result of remote diagnostics, Augmented Reality and the growing influence of the IoT. It will be analogous to keeping two sets of books – that is, one set of KPIs, like Mean Time to Repair (MTTR), Elapsed Time from Problem Identification to Correction, etc., for the way service has historically been performed (i.e., having a field tech dispatched on site), vs. the “new” way via remote diagnostics and repair. Combining the two will not make sense, and will need to be measured, monitored and tracked separately.

[To access the published Mobile Reach feature, please visit their website at http://info.mobilereach.com/blog/field-service-expert-interview-bill-pollock.]

How the Right Warranty Management Solution Can Help Improve Your Organization’s Bottom Line!

[This Blog presents an excerpted portion of the White Paper written by Strategies For GrowthSM (SFGSM) and distributed by Tavant Technologies, a global leader in providing Cloud-based Warranty Management systems and solutions.To access the complete White Paper, or to download an archived copy of the companion Webcast, please use the Weblink provided at the end of the Blog.]

Each year, SFGSM conducts a series of Benchmark Surveys among its outreach community of more than 39,000 global services professionals. Total responses for the 2017 Warranty Chain Management Benchmark Survey, conducted in January/February 2017, are 215. As such, we believe the survey results to represent a realistic reflection of the global warranty chain management community in which we all serve.

Putting Things in Perspective

Overall, survey respondents identify the following as the top factors that are currently driving their desire – and ability – to optimize warranty management performance:

  • 47% Post-sale customer satisfaction issues
  • 43% Desire to improve customer retention
  • 36% Customer demand for improved warranty management services

In order to effectively address these challenges – and strive to attain best practices – respondents then cite the following as the most needed strategic actions to be taken:

  • 43% Develop / improve metrics, or KPIs, for advanced warranty chain analytics
  • 28% Foster a closer working collaboration between product design & service
  • 28% Institute/enforce process workflow improvements for supplier cost recovery

The survey results also reveal that roughly two-thirds (66%) of respondent organizations currently operate service as an independent profit center (or as a pure, third-party service company), compared with only 34% that operate as cost centers. At these percentages, the warranty management respondent base represented in the survey reflects a consistency over the past few years, and mirrors the overall composition of the global services marketplace.

Further, the two-thirds ratio supports the supposition that it would strongly benefit services organizations that are attempting to keep their customers satisfied – and make an attractive profit by doing so – to put into place a well-structured, automated and Cloud-based warranty management solution designed both to satisfy customers, and contribute directly to the bottom line.

However, while the importance of effective warranty management is sufficiently validated by the responses to the survey, a majority of warranty management solution users are not as duly impressed with the vendors that render them these services. For example, only 42% of respondents are presently satisfied with the services and solutions provided by their respective primary warranty management solution vendors – including a stunningly low 12%, or only one-out-of-eight, who are “extremely satisfied”.

In fact, just under half of users (44%) rate their perceptions of the performance of their primary vendor as “neither satisfied nor dissatisfied” – or what we would normally describe as a “complacent” user base. While only 3% of users claim to be “not at all satisfied”, there are still a total of 15% that fall into the “dissatisfied” category.

Research shows that a majority (i.e., 50% or greater) of the dissatisfaction that users have with their current vendors apparently stems from the importance that the market places on key factors including cost of services (70%), followed by the industry reputation and warranty management experience of the vendor (i.e., at 47%, each). Other factors influencing performance perceptions include the vendor’s data/information reporting capabilities (41%) and specific geographic experience (38%).

Roughly half (49%) of the survey respondents’ organizations have either implemented a “new” warranty management solution, or upgraded their existing solution, within the past three years or less. Of this amount, about one-in-seven (15%) have implemented a “new” solution, while more than one-third (34%) have upgraded their existing solution. The remaining 51% are currently using warranty management solutions that are, at least, three years old, or older (Figure 1).

The survey research clearly shows that those organizations that have implemented “new” warranty management solutions have realized the greatest levels of performance improvement – certainly, much greater than for those that have merely upgraded their respective Warranty Management solutions. The Key Performance Indicators, or KPIs, that reflect the greatest improvements for each category of organization are as follows:

Warranty Claims Processing Time:

  • 14% Performance improvement for “New” Implementations
  •   6%  Performance improvement for Upgrades

Supplier/Vendor Recovery (as a percent of Total Warranty Expense):

  •   8%  Performance improvement for “New” Implementations
  •   5%  Performance improvement for Upgrades

Based on the results of SFG’s 2017 Warranty Chain Management Benchmark Survey, the key takeaways are:

  • Roughly half (49%) of the warranty management segment have either implemented or upgraded their warranty management solutions in the past three years or less
  • More than three-quarters (77%) of current warranty management processes are at least partially automated
  • Over the next 12 months, annual warranty management budgets are expected to increase, with more than twice as many organizations planning increases over decreases
  • Organizations with “new” warranty management implementations have realized significantly greater performance improvements than all other categories with respect to warranty claims processing time and supplier/vendor recovery (as a percent of total warranty expense)
  • Warranty management organizations are being driven, first, by Customer-focused factors; second, by Product Quality-focused factors; and third, by Cost/Revenue-focused factors
  • The most significant challenges currently faced by warranty services managers are identifying the root causes of product failures, followed by product quality issues and claims processing time and accuracy
  • Currently, as well as in the next 12 months, warranty services managers will be focusing primarily on developing and/or improving their KPIs and warranty analytic programs, fostering a closer working collaboration between product design and service, and instituting/enforcing process workflow improvements for supplier cost recovery
  • Nearly half (46%) of organizations are currently integrating warranty management with all other services functions, and just as many already have an end-to-end workflow process in place to handle claims and returns (46%); however, this means that more than half presently do not have these capabilities in place
  • The top uses of data/information collected from warranty events are basically to improve processes (i.e., field service, depot repair, parts returns, etc.) and effect changes (i.e., product design, manufacturing, etc.)
  • Customer satisfaction and warranty management-related costs are the top two categories of KPIs used by warranty services management organizations, followed by warranty costs, per product

[To access the complete White Paper, containing much more information and numerous supporting tables and charts, please visit the following Weblink, hosted by Tavant. An archived copy of the companion Webcast is also available for download at http://bit.ly/2lUppNZ.]