UK/Europe vs. U.S./Global State of Field Service Management (FSM) Survey Findings Infographic

The attached Infographic presents and compares the key survey findings from Strategies For Growth℠s 2017 Field Service Management (FSM) Benchmark Survey for the UK/Europe vs. the U.S./Global FSM markets.

The U.S./Global survey findings were presented on November 8, 2017 in a Webcast hosted by CSDP, the leading service relationship management software developer that commences every client engagement with consulting. Bill Pollock, President & Principal Consulting Analyst at Strategies For Growth℠, was the featured presenter.

See below to find out how you can view the archived Webcast in its entirety, and obtain a complimentary copy of the companion Analysts Take paper.

The Infographic provides a synopsis of how the UK/Europe FSM market differs from the U.S./Global FSM by comparing key survey findings in an easy-to-follow graphical format. By viewing the Infographic, learn how the UK/Europe FSM market compares to all others for each of the key survey findings. Then, register for the 6 December, 2017 Webcast to drill down for more detailed information!

[Download the Infographic at: UK-Europe vs US Infographic (November, 2017).]

[To register for the 6 December, 2017 Webcast on the topic of “UK/Europe Field Service Organisations Are Closing the Global Service Delivery Gap!“, please click on the following Weblink: http://bit.ly/2zt4eu0.]

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The State of Field Service Management (FSM) in 2017 – and Beyond!

[This Blog post contains a sampling of the content and information that will be presented in our upcoming Webcast, Wednesday, November 8, 2017 from 1:00 pm to 2:00 pm EST. To register for the Webcast and receive a complimentary copy of the full Analysts Take white paper, please go to: http://bit.ly/CSDPWebinarNov8.]

As we near the end of calendar year 2017, many Field Service managers have begun to wrestle with the question, “What lies ahead for us in the next 12 months and beyond? Of course, there is no quick and easy answer – and everything can change in a heartbeat due to unforeseen internal and/or external factors.

As such, it becomes increasingly important for Field Service Organizations (FSOs) to understand the specific impact that the next 12 months (and beyond) will have on the quality and performance of their field service operations. In fact, the future state of Field Service Management (FSM) will depend largely on what strategic actions FSOs plan to take in the next 12 months or so. Since these actions will be directly linked to the multitude of drivers that are most likely to influence decision making within the global services community, this would be a good place to start.

The results of Strategies For GrowthSM‘s (SFGSM) 2017 Field Service Management Benchmark Survey reveal that the top drivers cited as influencing FSOs today may be categorized into three main areas:

  1. Customer demand and/or preferences
  2. Need to improve service workforce utilization, productivity and efficiencies
  3. Internal mandate to drive increased service revenues

When asked to cite the top three drivers currently influencing their ability to effectively manage field services operations, 56% of respondents cite customer demand for quicker response time, and nearly one-third (32%) cite customer demand for improved asset availability.

However, the need to improve workforce utilization and productivity is also cited by a majority (51%) of respondents as a top driver, followed by the need to improve service process efficiencies (39%). An internal mandate to drive increased service revenues is then cited by 31% of respondents as one of their top three drivers.

Once the key market drivers are clearly identified, FSOs need to create – and implement – the most effective strategic planning actions to address them head-on. As revealed in the SFGSM survey, the most commonly implemented strategic actions, currently, are:

  • 48% Develop and/or improve KPIs used to measure field service performance
  • 40% Invest in mobile tools to support field technicians
  • 36% Automate existing manual field service processes and activities
  • 31% Integrate new technologies into existing field service operations
  • 30% Provide additional training to field service technicians and dispatchers
  • 26% Improve planning and forecasting with respect to field operations
  • 25% Increase customer involvement in Web-based service process
  • 24% Provide enterprise-wide access to important field-collected data

These data strongly suggest that there is a pattern of synergy among the top four cited strategic actions that builds a foundation for all of the other actions that will ultimately be taken by the organization; that is, that nearly half of the FSOs comprising the global services community already recognize the need to build and/or improve their KPI measurement program – this is essential! This is the first step!

Based on the SFG survey data, Jerry Edinger, President, CEO and Chairman of CSDP Corporation, a leading Service Relationship Management software developer, explains, “This is why we start every one of our client engagements with consulting. We ensure that your business processes are designed correctly before automating them. Software alone cannot improve KPIs. We design the exact Field Service Management solution based on the needs and requirements of the organization.  We detail how a solution automates the entire service delivery and customer service processes into a fully integrated field service management system and maps it into the overall enterprise workflow. Once the consultative effort is completed, we then have a detailed roadmap of how to build the most effective solution to meet the organization’s field service goals and objectives.”

However, along with the development and/or improvement of a KPI program, nearly as many organizations also recognize the need to invest in state-of-the-art mobile tools to support their technicians in the field, while concurrently, automating their existing manual field service processes and activities to provide an enterprise-wide foundation for collecting data and information, and disseminating this process to field technicians (and, in many cases, to their customers) on an as-needed basis. Further, about one-third of FSOs recognize the need to integrate new technologies into existing field service operations to make it all come together.

This synergy is built on, first, ensuring that there is an effective KPI measurement program in place, and using that program to establish a benchmark, or baseline, for measuring the organization’s current field service performance. Second, there needs to be a comprehensive internal effort to bring the technical aspects of services operations into the current (and future) timeframe – this can be done mainly by investing in an effective package of mobile tools to support the field force.

Finally, it will be the integration of these new technologies (e.g., mobility applications, the IoT, wearables, 3D printing, Augmented Reality (AR), Artificial Intelligence (AI), Machine Learning (ML), etc.) into the overall mix of resources and tools deployed by FSOs that will empower the field force do their jobs more productively and efficiently. The desired results, of course, would be the improvement of service delivery performance and the resultant improvements in the levels of customer satisfaction (and retention).

The data make it clear that there is no mistake – that is, if your services organization already finds itself behind the curve with respect to:

  1. The automation of its existing field service management processes (or lack thereof);
  2. Its ability to meet (if not exceed) its customers’ demands or requirements;
  3. Its ability to support its field technicians and customers with real-time data and information; or
  4. Dealing with escalating costs associated with running its services operations; this gap will likely only get larger over time – unless it considers implementing a new, more state-of-the-art, field service management solution;

SFG’s 2017 FSM survey results clearly show the impact that doing so will have on the organization – as well as on its customers and its bottom line.

[For more information on this topic; to register for the companion Webcast hosted by CSDP on Wednesday, November 8, 2017; or to download a copy of SFG’s companion Analysts Take report, please visit the registration Webpage at: http://bit.ly/CSDPWebinarNov8.

How to Sell Services to Individual Vertical Industry Segments

You Need to Understand Their Unique Needs and Requirements – and Be Organized to Meet Them!

A.  Introduction

All vertical industry segments continue to undergo significant change, and along with this change comes evolving needs and requirements for field service and customer support. In addition, the competitive landscape of the global services community is in a phase of constant acquisition, merger, partnership, consolidation and realignment, and no two experts can agree on where it will end, and what it will ultimately look like.

Still, Field Service Management (FSM) solution users expect, and demand, consistently high levels of service and support so that they can deal more effectively with their own growing economic costs, shifting customer demographics, advancements in new technologies and changing patterns of growth. There are, however, some easy guidelines for getting started on the path to being better prepared to support these highly demanding and, oftentimes, heavily regulated industry segments.

The best place to start is to first gain a strong working knowledge of the unique needs for each of the individual vertical industry segments you are targeting, typically comprised of manufacturers/OEMs, third-party maintainers and independent service organizations, professional services organizations, in-house services organizations, consumers and others; who in turn, support their respective systems, equipment and devices – either on-premise, in the Cloud – or both!.

B.  Understanding the Unique Needs & Requirements of Individual Industry Segments

Knowing the specific services business of your customers and all of their general terminology, “buzz words”, Key Performance Indicators (KPIs) and acronyms is not only an admirable goal, but a “given” just to participate in a segment-specific sector (i.e., terms like Manufacturer/OEM, TPM/ISO, MTTR, FTFR, etc.). However, each individual market segment also has its own unique set of terms and acronyms, as well as its own structure and organization, patterns of purchasing and decision-making, and means for evaluating the needs and requirements of service

This is the level of understanding that is ultimately required in order to succeed in building a solution that meets the needs of any individual specific industry segment – keeping firmly in mind that the same acronyms (e.g., ATM) may mean something entirely different in different industry segments  (e.g., the communications and banking segments, etc.). Also, you will need to keep in mind that some segments (e.g., medical devices, aerospace, government, etc.) may be much more demanding than others.

While there are many guidelines that can be used to facilitate an understanding of the specific needs and requirements of individual segments, there are essentially six (6) which provide a sound foundation. They are:

  1. “If you don’t speak their language, they won’t think you understand their business”

All of the FSM solution provider’s sales, services and marketing personnel that have any contact, either direct or indirect, with customers and prospects must be familiar with the terminology, technology and “buzz words” of the targeted segment. They will be required to communicate articulately with company management and personnel at each prospect organization, typically coming from a variety of related fields, sometimes with vendors supporting their segment, and are now serving in the roles of department heads or purchasing managers, equipment operators and/or technicians, etc. They already speak the language, and, as a result, the entire FSM solution provider sales team will need to be trained to understand and speak to key customer issues in their own words, names and examples.

Every industry segment has its own vocabulary and terminology – and, as an example, the medical device segment is no exception! In fact, with as diverse a composition of medical systems, equipment, instrumen-tation and devices that populate this segment, as well as the many departments or groups that get involved in the solution acquisition decision-making process, simply learning the acronyms themselves can be almost overbearing. Medical systems, equipment and instrumentation that can be found in a medical center’s imaging department can include x-ray, ultrasound, MRI, CT scanner (i.e., don’t call them cat-scanners!), nuclear medicine, PETT, and many others. There are also blood gas chemistry analyzers, patient monitoring systems, surgical suite systems and a full range of accompanying consumables and reagents, in addition to parts.

Further, although their Hospital Information System (HIS) may look similar to you as many other types of data centers or repositories – they will also have their own set of “buzz words”, acronyms and terminology, as well. Although most segment-specific medical services organizations may already understand these names, acronyms and terminologies, the more general IT services organizations will need to ramp up to learn them in order to be perceived as credible for supporting a medical systems and equipment installed base.

  1. “If you know who to sell to, you can shorten the overall sales cycle”

Knowing who to sell to within the prospect (and customer) organization is critical to the success of the overall sales effort. The fewer referrals you get within the organization before you reach the right decision-maker, the less likely you will be in getting “brushed off” along the way.

However, in order to be in a position where you can effectively differentiate between the decision-influencers and the decision-makers, you will first need to understand the segment’s (and each prospect’s) organizational structure, hierarchy and roles. This will require an enlightened understanding of the various titles, responsibilities and roles of key segment decision-makers in general, as well as the specific names relating to each within the prospect organization.

Who are these decision makers? What are their pain points? What gets them “excited” about service? What is a typical structure at companies in their industry segment?

Every services organization has its own characteristic structure, organizational hierarchy and roles. That is why it is so critical that the FSM solution sales team understands exactly how each of its targeted prospects  is structured and organized – especially with regard to who the principal FSM solution acquisition decision-makers (and decision-makers) are.

For example, at some organizations, all IT and software solution acquisitions are screened, managed, negotiated and overseen by a senior IT program team and/or committee. It is often the case where this would represent the starting point of entry for the solution vendor sales team; however, in other cases, it might commence at the CFO’s, or CIO’s, office, Finance and/or Purchasing Department. Again, it all depends on each organization’s unique structure and hierarchy of decision-makers.

The mode of acquisition will also likely have an impact on who within the prospect organization will constitute the ultimate decision-making entity. For example, under a perpetual license scenario (i.e., typically involving a large, up-front, capital expenditure), the decision-making team is likely to include Finance and Purchasing, Department Heads, as well as Service Operations.

However, under a subscription pricing model (i.e., where there is no large, up-front, capital outlay required), regular monthly (or quarterly) usage-related payments are typically substantially lower and, accordingly, the ultimate acquisition decision may not need to involve all of these departments. Since Cloud-based FSM solutions are typically sold via subscription model, the purchase decision-making process will likely be less involved.

  1. “If you know who is involved in making the decision, you can ensure that they have everything they need from you”

The decision-making process, and ultimately the entire solution sales cycle, can be both expedited and facilitated if the solution sales and marketing team has a prior understanding of who is involved in the decision-making process, how many individuals get involved, who “calls the shots”, how long the process takes, what they need to know, and when they need it. Any incomplete information provided will simply extend the overall length of the process, and any extraneous information will create “noise“. In some cases, information given to the “wrong” individual may be worse than not providing it at all.

This is an area where a more complete understanding of the specific individual(s) you will be selling to will be helpful to ensure that you fully understand all of the needs, requirements, constraints (i.e., both IT and budgetary), preferences and “pain points” that will come into play. It will generally be this individual (or group of individuals) who will convey to you the business’ main acquisition and usage considerations that may include anything from implementation timeframe and training; to initial cost vs. Total Cost of Ownership (TCO), Return-on-Investment (ROI), and other financial aspects, etc.

  1. “If you understand their cost constraints, you can package your solution more attractively”

All prospects are likely to inform you of their various cost constraints right from the outset. However, all solution sales personnel should be trained to distinguish “real” from “perceived” costs as a result of the initial prospect meeting and needs assessment. They should be able to establish prospect thresholds for cost vs. value and build into the equation the best timing for spreading out the total program costs.

Sometimes total cost is the principal determinant; sometimes regularly scheduled cash expenditures are more important. In either case, the most appropriately “packaged” and priced solution must be developed for each prospect and customer, and your solution sales personnel must be equipped to do this.

Some potential examples of cost constraints may include departmental limits imposed on monthly expenditures (e.g., where the Department or Services Manager may only be able to approve up to a certain amount of expenses per month, etc.). Under a subscription pricing model, this constraint may disappear entirely; however, in a perpetual licensing scenario, the approval for the solution acquisition may need to be escalated to the attention of the CIO and CFO, etc. Of course, sales of Cloud-based FSM solutions will likely avoid this level of complexity.

  1. “If you know how your customers support their users, you can better understand their solution needs”

This requires a full understanding of how the users’ systems and equipment are being supported, in addition to what specific types, and how many units, of equipment comprise the overall base (again, either on-premise, Cloud-based, or both). For example, a laptop, tablet or mobile device used in a hospital setting, or on the factory floor, etc. may have substantially different service requirements than one used in a retail or hospitality environment.

Equipment used in three-shift cycles in life-critical medical applications requires very different service than the same equipment used in a nine-to-five office shift. The impact of downtime, both scheduled and unscheduled, on process throughput (and revenue stream) is also an important consideration, and should be evaluated primarily on the basis of each type of equipment’s application. These are important considerations that you will need to learn from each prospect.

A full understanding of the ways in which the prospect organization, in turn, supports its customers will also place you at an advantage with respect to showing them that you “get” their business model – and can build a solution that directly meets their – and their customers’ – needs, requirements, preferences  and expectations for service.

  1. “If you understand how your customers are growing, your solution should grow along with them in meeting their evolving needs”

If you are aware of your customer’s plans for growth (i.e., organic, via merger and/or acquisition, etc.), you will be better able to “tailor” your solution specifically to that customer’s needs. By understanding your customers’ plans for growth, along with their anticipated timetables for change, you will be better prepared to gauge the expected impact of those changes on their services model, and suggest an appropriately scalable solution that takes the anticipated growth (or downsizing) into consideration. If you can anticipate these changing needs (and convey your understanding to your prospect), you will find yourself in a much better position to propose a solution that meets their expectations.

As many individual industry services segment are typically characterized by high levels of market growth; technology adoption; and prospects for merger, acquisition and consolidation, you must let your prospects know that you understand their evolving needs for functionality, features and scale, and are able to convey that the solution will scale along with their evolving needs.

As a result, a strong part of the overall sales message should always focus on the scalability aspects of the solution that is, that it can keep up with the expanding needs of the organization – and its customers – over time.

C.  Summary and Conclusions

In summary, the most successful solution providers in 2017 and beyond will be those that:

  • Understand the unique language, terminology and “buzz words” that characterize the segment;
  • Understand both the current and evolving needs of the segment, in general; and for each of their individual customers and prospects, in particular;
  • Are organized and structured to address the unique needs of the segment (i.e., through a segment-specific sales approach, supported by segment-specific sales, marketing and promotional collateral;
  • Are prepared to grow along with, or ahead of, the overall growth of the prospect;
  • Are prepared to “partner” with their customers in order to ensure that all of their services goals and objectives are being met.

The most successful FSM solution providers will be those that can work as partners with their customers – and that partnership must be developed from the initial dealings with the prospect, and carried out through all successive interactions during the course of the entire sales cycle.

The main key to success, however, will be the ability to show your prospects that you truly understand their needs and requirements (i.e., you “get” it), and that you can offer an FSM solution that supports all of their goals, objectives, customer satisfaction and retention, and financial targets.

[To download a complimentary printed version of the full Analysts Take paper (i.e., including the six (6) guidelines for organizing to meet customers’ services needs, requirements, preferences and expectations), please click on the following link: @@@ How to Sell Services to Individual Industry Segments (Draft-17-06-23-01.]

Companion Piece to Bill Pollock’s August, 2017 Guest Blog Post on Behalf of Sprint Business (Part 2 of 2)

[This is the companion piece to my two-part guest Blog published in July and August on the Sprint Business Blogsite. Part two also focuses on the impact of the Internet of Things (IoT) on the Field Services industry. As is the case in most analyst interview-based guest Blogs, much of my responses will not be included in the final posts. As such, please consider this Blog as a more detailed companion piece for the final five of 10 questions posed by Sprint Business. Hopefully, this will provide you with additional “between the lines” thoughts and opinions.]

Q6:   How can field service organizations monetize IoT?

The ability to monetize the IoT in field services is another variation on a theme of what has dogged the field services industry for decades! Every time there are advances in technology, the more progressive – and aggressive – Field Services Organizations (FSOs) adopt the technology to streamline their processes, reduce their internal costs, and improve their service delivery capabilities. However, customers, for the most part, see the adoption of this technology as being (1) strictly for the benefit (i.e., cost-benefit) of the services organization itself, and not them; and (2) a means that should reduce overall costs for both the services organization and its customers (i.e., themselves).

The mistake that many services organizations make is trying to sell the same services to customers, at reduced costs to themselves, but increased costs to their customers. Customers will typically see this apparent disparity and question their services providers as to why they should have to pay more for something that costs their vendors less!

What basically needs to happen is for the services organizations to move away from traditional Service Level Agreement (SLS) pricing, to an outcome-based pricing model, such as “power by the hour”, “airplanes in the air” or “x levels of output”, rather than “y hours of service coverage”. Remember the “bullion” pricing model (i.e., Platinum, Gold, Silver, Bronze)? It bit the dust (in most cases) years ago. So, too, will traditional Service Level Agreements (SLAs) as they are replaced by outcome-based services agreements.

The best current examples of this are, as noted, are selling “uptime as a service”, rather than merely “throwing hours of support” at customers – a rifle shot, rather than a scattergun approach to selling services.

Q7:   What do you see as IoT’s impact on service lifecycle management? 

Many services organizations say they offer total Service Lifecycle Management (SLM) support, but many still only offer Field Service Management (FSM) solutions in terms of field service and support, preventive maintenance, and meager parts and inventory management.

However, the IoT, in some cases for the first time, now empowers FSOs to provide “true” Lifecycle Management for their services customers – essentially “cradle to grave” support for all of their systems and devices, throughout all of their day-to-day usage and applications.

How does the IoT do this? Basically, by automating the entire services management process, end-to-end, from data collection, through device monitoring, problem identification and resolution, routine and ad hoc maintenance services, predictive and pre-emptive maintenance, parts/inventory management – and even “end-of-life” product support! SLM is more than FSM – and the IoT can support all of the organization’s SLM services processes.

Q8:   How will IoT change how companies package and deliver their services?

The IoT is more likely to change the way in which services organizations deliver their services, first; and the way they package them, second.

By that, I mean that, first, the IoT will allow services organizations to perform more maintenance and repair service remotely, rather than on-site – and the growing use of predictive diagnostics will continue to reduce the need for on-site services (in some cases, at all) over time. As a result, many services customers may not even know that their systems or equipment have been serviced, as everything that was needed was either performed remotely – or did not need to be performed at all (i.e., through routine monitoring and minor calibrations or maintenance “tweaks”, etc.).

Through the use of a customer portal, customers can typically gain full visibility of exactly what types of maintenance have been performed, on which systems, at what times, and with what results. However, those customers not electing to utilize their customer portals (or if their services provider does not offer that capability) will have virtually no visibility as to the extent of the maintenance that has been performed. This ultimately becomes problematic for some services organizations that must then report what they have done for the customer – and try to convince them that by doing so, there was added value provided.

Packaging the “new” way of providing services through an IoT-powered FSM, or SLM, involves an entirely new way of delivering services to customers. For example, instead of providing a certain number of hours of support, within a designated time window, and providing a “guaranteed” uptime percent (i.e., or you don’t have to pay your services contract fee that month), some organizations are now selling uptime – period.

Instead of throwing service contract hours at an aviation customer, they now provide “airplanes in the air” to this segment. Similarly, instead of selling a standard SLA to a wind farm customer, they are selling “power by the hour”. Instead of selling standard SLAs for extermination services, they’re selling a “rodent-free” environment. And so on.

However, this ”new” way of packaging services will be difficult for some services organizations to deliver – and for many customers to acclimate to. It will take time, and it will not be an easy conversion for some. But, it is the way of the present already, in many cases – let alone for the future.

Q9:   What specific steps should organizations take now in order to ride this transformation?

For some organizations in certain segments (e.g., aviation, energy, factory automation, medical devices, etc.), if they haven’t already embraced and incorporated the IoT into their services operations, they are already a step or two behind the market leaders. For those that are still examining the potential value of Virtual Reality, there are others that are already looking to implement Artificial Intelligence and Machine Learning.

The time is now for reading up on all things IoT, attending IoT conferences, viewing vendor demos, establishing “long lists” and reducing them to “short lists” for vendor consideration, etc. Gaining management buy-in is also a must – in fact, it is basically a must for all things services management anyway – but, especially with respect to the IoT.

Prepare a plan for embarking on the road to an IoT-powered FSM or SLM solution scenario – do it now, because many of your competitors have already done so, and many of your customers (and prospects) are already at least somewhat familiar with what the IoT can do for them. When the services management marketplace is more fully transformed, you will need to have made the transformation as well. The market leaders are already several steps ahead of you; you can’t afford to fall even further behind.

Q10: Within the field service industry, where will the greatest disruption come from – startups, midmarket, enterprises, or a combination?

The expected disruption to the global services industry will be manifested as a combination of all types, sizes and categories of “new” entries to the competitive landscape. Most (if not all) of the enterprise services providers are already offering true Services Lifecycle Management solutions (or, at least, enhanced Field Service Management solutions). They “get it”, and they’re doing something about it.

Over the past several years, we’ve seen many of the large Enterprise Resource Planning (ERP) companies (e.g., SAP, Oracle, etc.) acquire their FSM solution capabilities. For example, Oracle acquired TOA Technologies, IFS acquired Metrix, Microsoft acquired FieldOne, and so on. Some larger companies have also elected to go more organically, such as Salesforce that created its “new” Field Service Lightning solution based on ClickSoftware technology. ClickSoftware went private again, but still operates in the marketplace itself, while also licensing some of its software apps to other organizations.

The midmarket is only a step or two behind the enterprise services providers in terms of embracing and incorporating the IoT into their FSM and SLM solution offerings. However, where the most “confusion” and uncertainty lies in is the landscape populated by start-ups – and what I call the upstarts!

In addition to the ongoing spate of mergers, acquisitions and alliances, and organic development, there has also been a significant increase in the numbers of “new” entries into the FSM solution marketplace. In fact, probably more of this type of activity has occurred in this segment recently than in the past many years – or decades!

These “new” start-ups can essentially be divided into two main categories: (1) FSM Start-ups, that are trying earnestly to find a way to enter – and penetrate – the FSM market, by leveraging new technologies, experienced leadership, deep (enough) pockets, investment capital and a bit of luck into a services growth segment where they believe they can actually make a difference.

However, it is the FSM Upstarts, that are basically trying to ride the Cloud-based, or SaaS, solution wave into a “new” market (to them), in order to make a quick buck when they ultimately plan to sell out to a larger organization in another year or two. As such, it is truly a “buyer beware” market, as there are a great number of “new” upstart FSM solution providers that will not be around for very long.

Hopefully, my responses have helped you to better understand the ways in which the services management market is changing – both rapidly and pervasively. Blame it on the IoT for this rapid evolution; however, blame yourself if you’re not keeping up with the advances in services management technology!

[To access the published Blogs, please visit the Sprint Blogsite at https://business.sprint.com/blog/field-services-iot-makeover/. Or, if you prefer, you may access the complete SFG℠ Analysts Take paper simply by clicking on the following Weblink: How the IoT Is Transforming the FS Industry (Draft-17-07-21-01).]

Companion Piece to Bill Pollock’s July, 2017 Guest Blog Post on Behalf of Sprint Business (Part 1 of 2)

[This companion piece to my two-part guest Blog published in July on the Sprint Business Blogsite focuses on the impact of the Internet of Things (IoT) on the Field Services industry. As is the case in most analyst interview-based guest Blogs, much of my responses will not be included in the final posts. As such, please consider this Blog as a more detailed companion piece for the first five of 10 questions posed by Sprint Business. Hopefully, this will provide you with additional “between the lines” thoughts and opinions.]

Q1:   In what ways is IoT transforming the field service industry, and at what pace?

The Internet of Things (IoT) is transforming the field service industry in ways that most analysts –  and practitioners – could not have foreseen just a few years ago. While most of us were focusing on machine-to-machine (i.e., m2m) communications and the prospects for utilizing Augmented Reality (AR), the IoT was already beginning to be leveraged into smart systems and Connected Field Service (CFS) solutions among the more progressive services organizations in the global marketspace.

Even as we speak, while some companies are just beginning to evaluate the benefits of integrating Augmented Reality into their services operations, AR is already morphing into Mixed, or Merged, Reality (MR) through the combined deployment along with Virtual Reality (VR) applications. And this advanced trend is not only not going to stop; it is much more likely to accelerate right before our eyes.

The growing recognition that Artificial Intelligence (AI) and Machine Learning (ML) applications are ultimately poised to make the difference between those services organizations that are destined to be the market leaders versus everyone else (i.e., the followers, and laggards) is also picking up steam, and will likely join the mainstream of market adoption shortly (albeit, the inner working of AI and ML are both much more complicated than the IoT – especially with respect to AI).

The IoT is not just for m2m anymore. It is the tool that can make any services (or other) process “smart”, if applied effectively. It can (and will) take services organizations to places they never dreamed possible just a short time ago – and it will be responsible for cutting the costs of delivering services along the way.

At what pace? Basically, if you merely blink, you may find yourself quickly falling behind your more progressive competitors! Many of them are already there!

Q2:   What are the highest-impact factors in this transformation?

The highest-impact factors in field service transformation will be the normalization of the playing field across all industry segments, by vertical market, size, type, geographic coverage and any other “demographic” segments you can think of. Field Service Management (FSM) is not only for the large enterprise organizations, but for services organizations of all types, regardless of size or market coverage.

The proliferation of Cloud-based FSM solutions has also moved many organizations from the historical perpetual license pricing model to a much more manageable subscription basis pricing model. This also is having a significant impact on facilitating the entry of smaller and medium-sized organizations into the world of the IoT and smart solutions.

The integration of AR, VR and/or MR platforms into services operations will also normalize the playing field even more, thereby empowering services organizations of all types and sizes, etc., to compete head-to-head against each other (as well as the market leaders) with essentially the same levels of system capabilities. It will also lead to quicker customer equipment “fixes”, at reduced costs (to the services organization), and with far fewer visits required to the customer site to perform the repair.

Q3:   What do you see as the top three or four benefits to field service organizations?

The top benefits to field service organizations, as cited in Strategies For Growth℠’s (SFG℠’s) 2017 Field Service Management Benchmark Survey, are (1) the ability to run a more efficient field service operation by eliminating silos, etc. (cited by 44% of respondents as one of the top three benefits); (2) improved customer satisfaction (cited by 39%); (3) the ability to provide customers with an end-to-end engagement relationship (cited by 35%); (4) the ability to establish a competitive advantage (cited by 30%); and (5) improved field technician utilization and productivity (cited by 26%).

Other top benefits include (6) reduced Total Cost of Operations (TCO) (cited by 25%); (7) reduced ongoing/recurring costs of operations (cited by 19%); (8) improved service delivery time (cited by 16%); (9) fostering enhanced inter-departmental collaboration (cited by 15%); and (10) ability to complete the automation of all field service operations (cited by 12%).

However, as more and more services organizations ramp up with respect to IoT-powered technologies and applications, there will likely be even more potential benefits identified within the global services organization community.

Q4:   How can organizations best leverage all the IoT data they gather?

Many reports have been written about services organizations (and businesses of all types) “drowning in data lakes”. However, the key to success is to establish early on what data is needed to effectively run the services operations, and hone in on specifically those types of data when collecting and processing the reams and reams of data generated from your IoT-based systems. Too much data is … well, too much data, if you don’t have a plan to harvest it effectively.

Services organizations also need to be able to identify which data is “need to know” vs. which data is only “nice-to-know”. Nice-to-know data is ultimately way too expensive to collect, process, analyze, monitor and distribute; however, need-to-know data is not only invaluable – but critical to ensuring the well-being of the services organization.

You don’t go to work wearing 12 watches; you don’t buy 48 oz. of steaks, per person, to put on the grill for a summer barbecue; so, why would you pay for more data than you will ever need when you can harvest just what you need for now (plus whatever else looks like you may need in the future)?

Think of your data repository as a storage space for all of the data you will need today, tomorrow and in the future. If large enough, put it in a data lake – but make sure you don’t use Lake Superior for what a smaller data lake can do for you more efficiently.

Q5:   What barriers do organizations face in taking full advantage of IoT, and how can they overcome those barriers?

The greatest barrier in taking full advantage of the IoT is typically senior management resistance at the top of the organization structure. Coupled with a general lack of understanding of exactly what the IoT is, and exactly what it can do for the organization, these two factors can too often become “momentum-killers” within the organization.

This is why making sure that all participants comprising services management are kept up-to-date with (1) advances in IoT-based technologies, (2) the introduction of new applications and mobile tools to support field technicians (and to transfer some of their historical on-site responsibilities to more remote-based scenarios), and (3) evolutions in FSM solution capabilities, etc., is so important.

With subscription-based pricing, cost should no longer be as critical an issue to the prospects for moving forward with the desired FSM solution – however, do your CFO and Purchasing teams understand that? Or are they still entrenched in the traditional perpetual license mindset?

Attending field services trade shows and IoT-focused conferences should “shake off the cobwebs” for most of the non-believers or nay-sayers in the organization. Collect as much information as you can, schedule some demos, and invite management to witness the benefits (i.e., the outcomes) of an IoT-powered FSM solution first-hand. This will definitely sway most of the non-believers!

Hopefully, my responses have helped you to better understand the ways in which the services management market is changing – both rapidly and pervasively. Blame it on the IoT for this rapid evolution; however, blame yourself if you’re not keeping up with the advances in services management technology!

[To access the published Blogs, please visit the Sprint Blogsite at https://business.sprint.com/blog/field-services-iot-makeover/. Or, if you prefer, you may access the complete SFG℠ Analysts Take paper simply by clicking on the following Weblink: How the IoT Is Transforming the FS Industry (Draft-17-07-21-01)]

Going For The “Gold” Is An Olympic Event — Especially for Services Organizations!

In light of the current proceedings of the Summer Olympics in Rio de Janeiro, I thought this piece would be relevant to all those Services Organizations striving to be “World Class” (i.e., “going for the Gold”)

Even Gold May Have a Silver Lining

For Field Services Organizations, “going for the gold” may mean very different things. For some, it may mean nothing more than struggling to generate increased service revenue (i.e. “gold”). For others, it may mean attempting to upsell existing service level agreement (SLA) accounts from “bronze” to “silver” to “gold” levels (is anyone out there still offering “platinum”-level services?). However, another good way to define “gold” levels of service performance is to compare your organization to the athletes striving for their own version of “gold” — an Olympic gold medal!

The Olympic and the services communities share many things in common, ranging from striving to attain perfection to generating a profit after the scheduled event is over. However, they also share another very important attribute in that both communities typically go into an event (e.g. a 200-meter freestyle or an on-site service call, etc.) with some pre-event expectations.

For example, Michael Phelps and Katie Ledecki are, arguably, the world’s best male and female swimmers and, as such, went into the 2016 Summer Olympics in Rio de Janeiro with extremely high expectations. However, it was never a certainty that each would win Gold medals in all of the competitions for which they were qualified to compete. Nonetheless, the expectations were high for each swimmer — even before they arrived in Rio.

While Michael Phelps ultimately ended up winning five Gold and one Silver medal; and Katie Ledecki won four Gold and one Silver medal, each are still acknowledged as the best of the best in their respective fields.

The same situation also exists for services organizations. If your organization is one of the larger ones in the field or has won numerous performance awards in the past, the community will expect it to perform like a world-class provider (i.e. one that is able to meet its customers’ total service needs while delivering world-class levels of performance). By performing reasonably well in the past, the marketplace will also expect you to also perform well — and even better — in the future. The bar is constantly being raised.

For Michael Phelps, the defending champion in the previous two Summer Olympiads, the prospect of not winning several gold medals was unthinkable – although he did not seem to be all that phased that he had to share his Silver medal with two other swimmers. He has won both Gold and Silver medals before, and performed about the same in his most current Olympics.

For Katie Ledecki, for whom this was her first (and, possibly, last) Olympics competition, the bar has been raised again for all female swimmers who will ultimately enter the Olympics in her wake. World class does not necessarily mean “perfect”! There can still be a Silver lining wrapped around your Gold standard.

By the time this Blog post is published, it is also certain that other gymnasts — from the U.S., and around the world — will excel in their competitions as well. However, merely having the goods does not assure Gold in the Olympics — and it is exactly the same for services organizations. You still need to execute — and strive to be as close to perfect as you can.

The Role Of Social Media In Service

Finally, in this year’s Olympics, social media will be expected to take on an even more prominent role than in the past. Virtually all of the Olympic events will be accessible to viewers all around the globe through various forms of Cable and Broadcast TV, Social Media and other types of digital transmissions. As a result, Twitter, FaceBook, and independent blogs will, once again, take up the slack on presenting (and editorializing) all of these Olympics-related events — all in real time! Again, the similarities between the Olympics and the services community abound.

Just as many Olympians are encouraged by their trainers to communicate often — in real time — with their supporters and fans, so must the services community adapt to the practical uses and applications of the available social media. It is truly time to recognize that social media is not merely an acquired taste, but a way of life — especially when it comes to communicating about service.

The 2016 Summer Olympics are nearly over, but already, athletes from all over the world are preparing for the next summer games just four years away. All of the medalists for these upcoming games will ultimately win their respective races by first choosing a field, then acquiring the necessary resources and skills, preparing for the race, and aggressively moving forward.

This is also how most services organizations have historically approached service, especially with respect to meeting — and exceeding — customer requirements. However, you won’t necessarily need to have a medal draped around your neck to be recognized for good service — you simply need to perform at a level of performance that is higher than an ever-raising bar, and let your customers place their perceptual medals around your neck.

Selling Services – How to Recognize Customer Buying Signals

Understanding your customers’ needs, and knowing what is available for sale, complete one key equation; however, there is still one other key unanswered question: How can you tell when your customer is ready to buy?

Recognizing a customer’s buying signals is one of the most difficult things there is to teach. In fact, many will argue that this is an innate trait that only “true” salespersons are born with. Whether this is true or not is really only a side issue. The main issue is that every one of your customers and prospects sends out signals that you can rally around with respect to determining when they are ready to buy. Some will be “hard” signals that you can practically take right to the bank; although most will be “soft” signals that will vary from customer-to-customer, person-to-person, and situation-to-situation. Let me explain.

The various types of buying signals “transmitted” by your customers may typically be classified into the following categories:

  • Overt
  • Passive
  • Observed

Overt Buying Signals

An overt buying signal is the closest thing to a gift that you may ever receive from your customers. This is when the customer calls you, or comes right up to you, and says something like, “Our copier is pretty much shot, and it simply won’t handle all of our volume anymore. Don’t you guys have a newer machine that you think can do the job for us?” Or, “You know, our machine will be coming off warranty soon. Don’t you guys offer some kind of extended warranty contract? If you do, we’d really be interested.” While these opportunities may seem just like manna fallen from the heavens, the problem is, if you do not take immediate advantage of them, the opportunities themselves may either fade over time, or go away altogether.

For example, given an opportunity like one of these, it may simply be a matter of speaking briefly with your customer, showing him or her a new brochure or directing them to your company’s web site, and casually discussing the enhanced features of a new system or service offering on a face-to-face basis. However, if your response is more like, “I have a few ideas. Why don’t I get back to you in a week or two when I’m not so busy, and maybe we can work out something.” By the time a couple of weeks go by, the thought of acquiring a new piece of equipment or service offering may have moved from your customer’s top-of-mind to their back-of-mind – and once there, it may involve much more work on your part to get it back up front.

Overt buying signals do not happen all the time; but when they do, you pretty much have to take advantage of them as they occur, rather than run the risk of having the customer push it far back into the recesses of his or her mind – or even worse, allowing them to have the same conversation with a competitive vendor’s sales or services person.

Passive Buying Signals

Passive buying signals may not be as obvious; however, they are still fairly easy to identify, and even easier to take advantage of. The tell-tale clues that your customers may give to you typically manifest themselves in comments or questions such as, “Man, this old machine keeps breaking down, and breaking down, and breaking down. I don’t know what I’m going to do if it shuts down during one of our big production runs”; “Ever since this machine came off of warranty, whenever we call for service, we end up paying you guys on a time and materials basis. There’s got to be a better way”; or “I don’t know. It just seems like our other division on the next floor gets their copy work done a heck of a lot faster than we do. I think they have a new machine up there, and they just keep making us look bad in comparison”.

Any of these comments or questions represent just as valid a selling opportunity as any of the overt buying signals we just talked about earlier. The only real difference is that, in these cases, you will typically need to be the one who initiates the conversation about replacement units, new machines, and/or enhanced service level agreements – and not the customer.

Even so, you may still be surprised as to how receptive your customers will be in having such a conversation. What’s more, since you already understand your customers’ needs and requirements for business imaging systems and equipment, and you know what your company has available for sale, you can probably step right in, provide some specific suggestions or recommendations, and convert a potential customer problem into a potential company sale.

Observed Buying Signals

Sometimes the customer does not even have to say a word. Since you already visit the customer’s site, on average, about once a month or so, you are probably in an excellent position to observe how one or more of their machines are routinely being overused, misused, or otherwise used improperly. You have probably also seen some of your customers reach new levels of frustration in dealing with machines that simply cannot ratchet up to their increased levels of volume or throughput, or effectively deal with emerging areas of business imaging applications.

We have all heard the expression that “a picture is worth a thousand words”. In both the overt and passive buying signal situations, it will primarily be the words that are either conveyed to you, or conveyed by you to the customer, that will ultimately lead to the potential sale. However, in an observed buying signal situation, it is the “picture” you observe at the customer site that will ultimately tell you the “story” that you will need to focus on in order to ultimately make the sale.

At the end of the day, it really does not matter whether the buying signal you get is overt, passive, or simply observed – what does matter though, is that you get the signal, you know what to do with it, you take advantage of it, and you serve effectively in your role as an intermediary between what your customer needs, and what your company offers.