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.

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Lessons Learned from WBR’s 2017 Field Service Fall Conference

FSM Is Taking a More Innovative and Progressive Approach to Meeting Evolving User Expectations

Introduction to Field Service Fall: Innovation. Progression. That’s Field Service!

There were a great many lessons to be learned about field service and customer support so far in 2017 due to a number of factors, including responses to multiple natural disasters (i.e., hurricanes, floods  and earthquakes); evolving patterns of customer needs, requirements and expectations (i.e., as a result of the introduction and proliferation of new technologies); a changing competitive landscape (e.g., the consolidation and/or acquisition of many of the “traditional” Field Service Management (FSM) solution providers, as well as the influx of many new start-ups); and so on.

That’s what’s makes the WBR 2017 Field Service Fall conference at Amelia Island, Florida, so important – especially as it immediately followed the destruction caused by Hurricane Irma only a couple of weeks earlier. Innovation and progress were certainly at the forefront of those services organizations proximate to Amelia Island (and Texas only a couple of weeks earlier) that were tasked to deal with the devastation that was brought forth.

General Conference Theme

First, as conference host, Sara Mueller, WBR’s Event Producer for the conference, stated in her opening remarks, that after speaking to a number of Field Service executives leading up to the event, most suggested that they were interested in learning more about what their peers were doing (or thinking of doing) with respect to dealing with major challenges and establishing priorities for moving forward.

To that end, Sara summarized the “Big Picture” that her executive interviews painted as consisting of the following four components:

  • Business Model Transformation – moving towards selling outcomes rather than selling a product;
  • Having the Right Field Force in Place – with the right information and tools at their fingertips;
  • Leveraging Digitalization and Connected Products – for better efficiency and service; and
  • Achieving Customer Satisfaction – and growth!

The main premise behind all of this “learning”, Sara said, could be summarized in a single quote from Benjamin Franklin: “Tell me and I forget, teach me and I may remember, involve me and I learn.” The next three days certainly bore out Franklin’s thoughts – all with clear examples and background provided.

However, there is always additional, or incremental, “learning” that can be attained by participating in events such as WBR’s Field Service Fall. The following is our “take” on the primary lessons learned over the course of the three day event.

Advancing Service Together

Before delving into specific topics relating to lessons learned from the conference, first, we believe it would be helpful to. Take a more broadly-defined look at what constitutes the basis of field service and customer support.

In his keynote presentation, Martin Knook, CEO at Gomocha, defined the components of “Advancing Service Together” as being based on the the responses to a series of questions, including:

  • What can I do for you today?
  • What can I do better this time?
  • What solution do you need tomorrow?
  • Do you have any pain points that you can share?
  • Are you happy with my product/service?
  • What else do you expect?

While admittedly, this list of questions is not complete, it at least establishes a base, or basis, for both the solution provider and the customer to begin the process of working together to a common end. “It’s not rocket science!”, Knook exclaimed. But it does begin the process of information exchange.

Knook also cited W. Edwards Deming, who said that, “Without data, you are just another person with an opinion.” However, data alone does not do the entire job – the data must, first be accurate and relevant, but it must then be converted into usable information and, ultimately actionable knowledge.

The challenges, according to Knook, are:

  • Servitization
  • Technology Capabilities
  • Existing Business Processes, Products and Services
  • Innovative Learning Organization

One of the greatest challenges is predicated on the fact that “only 18% of the companies interviewed have clear performance metrics in place.” This is also supported by Strategies For Growth’s (SFG’s) most recent survey data tree along that a similar percent do not currently even have a formal Key Performance Indicator (KPI) program in place.

However, these alarmingly low percentages may be somewhat offset by the fact that up to 62% of the organizations surveyed in SFG’s 2017 Field Service Benchmark Survey are currently establishing or enhancing their existing KPI programs to include more metrics measured, more sharing of data/information and the better application of those measurements into strengthening their ability to measure and improve existing levels of performance.

Denise Rundle, GM and Partner at Microsoft, took the discussion a bit further by discussing “Turning Customers into Raving Fans.” In her keynote presentation, she cited a quote from Microsoft CEO, Satya Nadella, who stated the company’s mission statement as, “Achieving our mission requires us to evolve our culture and it all starts with a growth mindset – a passion to learn and bring our best every day to make a bigger difference in the world.”

It’s all there: culture, passion to learn, bring our best, make a difference via the execution of our “growth mindset”. And, not the other way around!

  1. In order to execute on its mission, Microsoft has identified three breakthrough experiences that it believes will take it to the next level:
  2. Artificial Intelligence – the technology that will make the virtual agent more human and helps agents be more effective,
  3. Collaborative Delivery Model – based on the simple routing to groups of experts who solve cases collaboratively, and before and after sentiment to understand how  customers feel.
  4. Achieve More Conversations – through the application of machine learning, predictive analytics and targeting, and campaigns.

Rundle also spoke of the things that Microsoft has already begun implementing in these areas including: (1) extending conversations with customers by 30 seconds in order to “add real value to customers; (2) eliminate “painful routing” and “frustrating bounces” by channeling customer calls directly to “groups of collaborative product specialists” (i.e., rather than to a worldwide assortment of engineers, etc.): and (3) provide customers with an “end-to-end” user experience to create new opportunities to customers (as well as cross-sell and upsell opportunities to Microsoft).

Greatest Lessons Learned

Perhaps the greatest lessons learned from WBR’s 2017 Field Service Fall conference were focused in the following areas:

  • Digital Transformation
  • Connected Services / The Internet of Things (IoT)
  • Augmented Reality (AI) / Artificial Intelligence (AI) / Machine Learning (ML)
  • Outcome-Based Services
  • Dealing with a Changing Workforce / Leveraging a Contingent Workforce

[To download a complete copy of SFG℠‘s “Lessons Learned from WBR’s Field Service Fall ConferenceAnalysts Take report, please click on the following Weblink: @@@ 2017 Field Service Fall Analysts Take Report (17-10-16-01).]

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).]

UK/Europe Field Service Organisations (FSOs) Are Closing the Performance Gap by Investing in New Technologies and Analytics

[The following is an excerpt from the Field Service News June, 2017 issue focusing on how UK/Europe Field Service Organizations are closing the historical performance gap with the United States and, in some cases, the rest of the world, by investing in new technologies and analytics. As such, please consider this Blog as a “teaser” for the full article which may be accessed via the link provided at the bottom of the page.]

Each year, Strategies For GrowthSM (SFGSM) conducts a series of Benchmark Surveys directed to the global services community. The final results of the 2017 Field Service Management (FSM) Benchmark Survey clearly reflect that UK/Europe Field Service Organisations (FSOs) are continuing their focus on addressing the top market drivers that impact their geographic marketplace – and in many cases, at a significantly higher rate than their global respondent counterparts!

Susannah Richardson, Account Director, mplsystems, concurs with these findings stating that, “We’ve seen our customers increasingly asking about what further functionality they can add into mobile applications to improve effectiveness of their field force. It’s no longer simply about field technicians being at the right place at the right time with the right parts, but also about them being empowered to excel in the service that they offer and to provide additional services.”

[To access the full, published Field Service News feature, please visit their website at http://fs-ne.ws/bV9g30cBss6.]

Companion Piece to Field Service Experts Interview in the May, 2017 Issue of Field Service News

[This companion piece to the Field Service News May, 2017 issue focuses on the impact of the recent spate of events (i.e., mergers/acquisitions, strategic partnerships, new entries to the FSM competitive landscape, etc.) that appears to be transforming the global services industry. As is the case in the magazine’s multi-analysts interviews, most of these 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.]

Q1: Why do you think that Field Service Providers have recently become an attractive target for investment – is this indicative of the growing importance of field service to the wider economy?

The current spate of acquisitions of Field Service Providers is long overdue. In fact, it should have happened years ago! However, the acquiring organisations seemed to have other priorities in mind with respect to broadening and strengthening their existing offerings, and tailoring them to a more narrowing-defined market space.

For example, CRM vendors tended to focus more on expanding the functionality of their respective CRM platforms, while ERP vendors tended to do the same with theirs. Remember, there were days – way back when – when a Field Service Management (FSM) solution provided only the functionality required to run a services operation – but not a services business (i.e., no accounts payable/billable or accounting functionality; no reverse logistics; no human resources; etc.). In those days past, a services business would also need to acquire ancillary software packages (e.g., anyone remember Peachtree Software) in order to manage the entire services business.

However, it’s a bit different today. As more and more software providers expand their offerings to run the entire business, they now market themselves as offering a “new” type of platform for doing so.

In general, it will be those organisations that move into (or buy into) the field services arena – for all the right reasons – that are most likely to be successful. That is, if a field service functionality makes sense as a logical extension of their existing offerings, then they will be more likely to succeed. However, those that attempt to “ram their way” into what is already a fast-growing and vibrant market sector, some without even having a complete FSM offering, will find themselves “busted” in the eyes of their targeted market base.

Q2: The FSM solution space has seen huge innovation in recent years, is there a danger that with so much M&A activity this innovation will plateau, and if so is the technology now available suitable to empower field serve organisations to meet growing consumer demands?

Currently available technology, coupled with newer technology that always seems to be lurking “just around the corner”, is already sufficient to meet (and exceed) all of the FSO’s requirements for managing their field service operations – and then some! It’s already here!

As such, the global services market is not likely to experience a plateau in terms of recognition, adoption and/or deployment of these new technological advances anytime soon. In fact, as the proliferation of technology appears to be eclipsing adoption by the marketplace, there is no plateau in sight. There is still a “mountain of growth” ready to be conquered!

As such, this accelerating growth is likely to bring more FSM provider suitors to the forefront rather than less. For example, three or four years ago, how many field service managers thought that Microsoft would acquire itself into the fray? Many industry analysts missed the signs that Oracle was about to acquire TOA Technologies. However, with several major players already having acquired, licensed and/or organically entered the field services market, the question arises: Who will be next?

On the demand side, where has Apple been? What about SAP? What about any of the large, global, systems integrators? On the supply side, what, if anything, will ultimately happen with ClickSoftware? What about the “tried and true” historical vendors, like Astea? And what about all of those Venture Capital and investment firms that seem to be gobbling up one FSM vendor after another?

The technology is already here! Watch out for the impending approach of more acquiring organisations!

Q3: Finally, the comments from each of these acquisitions almost universally refer to FSM “platforms” and certainly there is a growing trend for Field Service Management tools to be part of a wider service platform solution. Do you think that ultimately we will see FSM become as integral to business systems as ERP and CRM?

The difference between an FSM solution and an FSM platform is that the former is essentially used to run the services operations, while the latter is used to run the entire business. As far as marketing and market positioning go, doesn’t “platform” sound more important than “solution”, anyway?

CRM-based solution providers have long touted their products as full “platforms” that may be used to run an entire business; ERP-based solution providers have essentially marketed their offerings in the same manner. By incorporating an FSM solution into their respective offerings, they can now all claim (and, probably, rightfully so) that their offerings represent a complete (or near-complete) platform upon which future services functionalities can be built – whether strictly in support of field service operations, or any other business activity.

However, it is not necessarily a “slam-dunk” that FSM will become as integral to business systems as ERP and CRM, as not all businesses have field service offerings – while all have (or should have) an ERP and/or ERP capability. Further, as remote and predictive diagnostics, powered by the Internet of Things (IoT) and Augmented Reality (AR), make further footholds in the general services arena, running a field service operation may become more important, while become less cumbersome to run (and, as such, more likely to be outsourced, possibly, to a third party).

For the time being, FSM will likely remain subservient, in most cases, to CRM and ERP – but will only become more important to those FSOs for whom FSM is basically the whole business to them.

[To access the published Field Service News feature, please visit their website at www.fieldservicenews.com.]

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.]