It’s 2020 (Almost) – Time to Revitalize Your Organization’s Services Portfolio!

After a while, even the most innovative services offerings begin to lose some of their appeal, ultimately being perceived as commodity-like offerings, rather than as representing a differentiated portfolio. What was initially offered to the market as a specialized service, often without much competition, soon becomes just another service commodity positioned ineffectively among scores of increasingly competitive offerings.

Regardless of your organization’s market share or position, it is important to gauge exactly where your services portfolio stands at any given point in time with respect to the perceptions – and expectations – of your targeted market base. In most cases, it is the new, innovative upstart companies that are typically conducting the bulk of the market research and competitive intelligence prior to launching their new products and services, not necessarily the companies that are still selling their older commodity-like offerings.

However, there may still be a great deal of life left in the more mature business lines that comprise the majority of your company’s product or services portfolio. Even better, these lines tend to already be “tried and true” with respect to market acceptance, and may only need a gentle marketing or promotional “push” every once in awhile to stimulate additional market interest and sales. Even NASA uses a “mid-course correction” every now and then to ensure that the rocket gets to the proper destination!

There are many ways in which a business can determine exactly how much “kick” its services offerings still have in them, or, conversely, whether it is time to “kick” some of them out of the portfolio altogether and replace them with newer, more innovative and technologically-competitive lines.

The path recommended to evaluate the overall health of your present portfolio of services, is to conduct a strategic business assessment that focuses on:

  • An assessment of your customers’ – and the market’s – perceptions, needs, requirements, preferences and expectations with respect to your existing portfolio of services offerings.
  • The specific features and characteristics (e.g., attributes, benefits, value, cost, etc.) that currently define your services lines, and what it will likely take to “ramp them up” to the new and/or emerging market requirements (i.e., the Three R’s: Refine, Re-design and/or Re-package).
  • Customer/market perceptions and opinions regarding the current quality and performance of the services offered – both from your organization and its competitors.
  • A set of recommended improvements to your existing portfolio in order to better position it against the competition, and to maximize both sales potential and ongoing customer satisfaction.

The assessment and evaluation of the findings from such a study would be extremely useful in terms of providing your company management with the strategic, marketing and promotional tools it needs to:

  • Identify the basic customer/market needs, requirements, preferences and perceptions that can be used to assess and “fine tune” the overall strategic market positioning of the organization’s existing service lines.
  • Ensure that the company is effectively marketing the right services; to the right market segments; by communicating the right marketing, branding, and promotional messages; all through the right media.
  • Modify and enhance existing product/service lines to address the highest levels of customer and market demands.
  • Develop new products and/or services to address the emerging needs and requirements of both the existing and prospective customer bases.
  • Identify and cultivate the most attractive target markets based on identified patterns of customer decision-making and purchase behaviors, and product preferences and perceptions.
  • Strengthen the company’s overall product/service awareness and image, advertising and promotion, and sales activities through the execution of the recommended refinements, enhancements and/or modifications based on the study findings.

While your present business lines are probably the key factors that helped your company grow to its current size and market position, they may have become “dusty” over the years and may now be in need of a good “dusting off” – or even, retirement.

Putting a “cash cow” off to pasture before it is time can cost your company a great deal of money in terms of lost potential. However, keeping it on once it’s gone “dry” may cost you even more in the long run in terms of giving your company a perceived market image as being less than innovative, or no longer offering anything more than commodity-like products and services.

Assessing where your product and services portfolio currently stand in terms of market perceptions, and your ability to meet the market’s – and your customers’ – changing and evolving needs, will allow you to determine just how much “dust” has collected on your existing offerings – as well as what you will need to “dust off” in order to compete more effectively.

Lessons Learned from WBR’s 2019 Field Service Amelia Island Conference – Advancing Service Together through Innovation, Cross-Industry Best Practices & Transformation

[WBR’s annual Field Service Amelia Island conference is one of the premier Field Services event of the year – and this year was, once again, no exception! More than 350 field service professionals attended the conference from August 18 – 21, 2019.

The following is a brief excerpt from SFG℠‘s “Lessons Learned …Analysts Take report, written and distributed under the auspices of WBR. Our suggestion? Don’t read the following excerpt – go to the bottom of the page and download a complementary copy of the full report, and read up on what the key players in the field services community had to say with respect to “Advancing Service Together!“]

Since 2003, WBR has been bringing together the world’s leading services organizations to “benchmark, establish best practices, embrace new technologies and build a strong network to enhance its attendees’ services businesses and field operations.” Each successive conference over the past 16 years has provided participants with “future-facing content and a mix of interactive session formats that ensure [they can] learn and network most effectively.” As such, these annual (and mid-year) Field Service events are designed to set up its attendees “for maximum profitability and competitiveness in [their] service business.”

And this year’s Amelia Island event did not disappoint, as the nearly 400 onsite attendees would most likely attest!

“At Field Service Amelia Island I learned that Field Service professionals love to learn new ways to improve service delivery since that is often the first (and only) personal contact a customer has with their brand. They are especially eager to explore what technology can do to optimize their field service fleets to get them to job sites efficiently and safely.”

– Carol Roden, Senior Product Marketing Manager, Lytx

The main theme for WBR’s 2019 Field Service Palm Springs conference was billed as “Advancing Service Together”, similar to the Palm Springs event held earlier in the year – and the succession of speakers, presenters, moderators, panel participants and practitioners all supported that theme throughout the conference by sharing examples (i.e., mostly success stories) about how it takes a strong commitment to teamwork to have any chance of meeting, let alone exceeding, management goals for improving employee and customer satisfaction – while at the same time, driving increased services revenue streams and making a profit by doing so.

“After attending the Field Service Conference on Amelia Island, the importance of disruptive service, and understanding that what got our businesses to their current level of success will not take them to the next level of success is evident. In an XAAS world, those organizations that embrace these transformations with technology and culture will win!”

– Mary Flake, General Manager – Coastal Southeast Service, Comfort Systems USA

The ”Lessons Learned” at the conference were many, and we have attempted to summarize the main sessions (and lessons learned) in the text that follows. Please note that not all of the sessions are highlighted and summarized in this document; however, there are many others that are available through WBR directly. Also, if you missed the chance to have one of your “lesson learned” quotes included in this paper, … well, there’s always next year in Palm Springs or, again, at Amelia Island!

Each of the three Main Days of the conference had a particular focus, beginning with Day One setting its sights on “Technology and Process Innovation for Efficiency”; Day Two focusing on “Disruptive Service & Customer Value; and Day Three focusing on “Leadership & Service Revenue Generation.”

Overall, WBR’s 2019 Field Service Amelia Island conference gave every attendee the opportunity to learn, question, network, buy/sell and interact with vendors, practitioners, editors, writers, industry experts, consultants, research analysts, peers and competitors and every other important person or company in the field services business.

The temperature was not as hot as in Palm Springs, earlier in the year – but the topics covered at the conference were still “red hot”. One of the key learnings from this year’s event is that “the main benefit of this conference is that it represents a middle ground between what we all learned last year, and what we will expect to learn next year.” As such, this year’s conference represented another key milestone in the Journey that we, as an industry, are taking along with our customers.

At the risk of repeating myself from the “Lessons Learned …” Analyst Take paper distributed following this year’s Palm Springs conference, I believe the following quote still stands true:

“As Bob Dylan once wrote and sang, ‘The times, they are a’changin’.    He must have been singing about the field services industry!”

– Bill Pollock, President & Principal Consulting Analyst
Strategies For Growth℠

Here’s looking forward to seeing you all at Palm Springs and Amelia Island again next year!

[To download a complementary copy of the full “Lessons Learned …” report, simply click here: @@@ 2019 Field Service Amelia Island Analysts Take Report (Final Draft – 19-09-17).]

Salesforce Goes All In on ClickSoftware

Click’s Scheduling Optimization Module was Just a Teaser! Now, Salesforce has Gone All In, and Click’s Found a Home!

On August 7, 2019, after months of speculation – and negotiations – Salesforce, the global leader in Customer Relationship Management (CRM), announced that it had signed a definitive agreement to acquire ClickSoftware, an acknowledged leader in Field Service Management (FSM) solutions.

Finally, the perennially open question of “What’s going on with ClickSoftware; Will it stay private? Will it be acquired by SAP? Will it go public again?” will officially end! This has been somewhat off-putting for many of the company’s potential customers in the past. However, as of the close of the deal, we will all know exactly what’s happened to ClickSoftware!

Read our Analysts Take paper on the acquisition of ClickSoftware by Salesforce, and see how the industry is reacting with respect to its potential impact on the FSM solution competitive landscape: Salesforce Acquisition of ClickSoftware (19-08-13).

[BTW – Have you already taken SFG℠‘s 2019 Servitization Journey Benchmark Survey? If yes, then, thank you! If no, please accept our invitation to take the survey by clicking on the following Weblink: https://www.surveymonkey.com/r/SFGServ19. Thanks!]

Global Field Service Management (FSM) Trends for 2019/2020 – and Beyond!

The results of Strategies For GrowthSM‘s (SFGSM) 2019 Field Service Management (FSM) Tracking Survey reveal a healthy – and expanding – global services market that appears to have clearly rebounded from the economic downturns and upheavals experienced over the previous 10 years or so (i.e., since the 2008 economic bust). In fact, the global FSM market is now poised to make significant strides forward in terms of growth, technology adoption and the integration of those technologies into existing (and improved) services operating plans and processes.

However, there are still many obstacles along the way, and those Field Services Organizations (FSOs) that are not prepared to adapt to the “new” way of running a services operation will be ill-prepared to compete on a head-to-head basis with those that are. For example, the top future challenges cited by survey respondents as likely having the greatest impact on their ability to acquire and/or integrate new technologies into their existing field service operations may be summarized as follows:

  • 43%  Return-on-Investment (ROI) on the acquisition of new technology
  • 34%  Identifying all of the required functionality for the organization
  • 30%  Cost of new technology
  • 28%  Potential disruption from new technology implementation and burn-in
  • 27%  Obtaining management “buy-in” for new technology acquisition

Other challenges, such as selecting the most effective FSM solution (19%) and integrating new technologies into existing FSM solution platforms (16%) are also cited as rounding out the top challenges facing the global FSO base.

The good news is that there are also significant and distinct opportunities, or benefits, that can be realized by FSOs, regardless of type, size or coverage, through the acquisition and integration of these new technologies. For many FSOs, these may include:

  • 39%  Ability to run a more efficient field service operation by eliminating silos, etc.
  • 37%  Improving customer satisfaction
  • 36%  Ability to provide customers with an end-to-end engagement relationship
  • 27%  Establishing (or strengthening) a competitive advantage
  • 27%  Improving field technician utilization and productivity
  • 25%  Reducing Total Cost of Operations (TCO)

But these opportunities and benefits do not automatically produce themselves – there needs to be a formal plan for attaining these goals, and many of the leading FSOs already seem to know how to go about making it happen.

The 2019 survey results also reveal that more than two-thirds (71%) of global FSOs currently run their services operations as profit centers, rather than as cost centers. This percent represents an increase from roughly 66% only three years earlier, but more than 10 percentage points above roughly a decade ago. In fact, the percent increases to 74% for those FSOs attaining 90% or greater customer satisfaction, and up to 81% for Best Practices FSOs that also achieve 30% or greater services profitability.

As we move through the uncharted waters of 2019, 2020 and beyond, the future state of the global Field Service Management (FSM) market will depend largely on which strategic actions FSOs plan to take in the ensuing 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 an excellent place to start!

The 2019 survey results reveal that the top drivers cited as being most influential on the future success of FSOs may be categorized into three main areas:

  1. Need to improve service workforce utilization, productivity and process efficiencies
  2. Meeting (or exceeding) customer demand for quicker response and improved asset availability
  3. Internal mandate to drive increased service profitability and revenues

However, once the key market drivers are firmly identified, FSOs need to create – and implement – the most effective strategic planning actions to address them head-on. As identified in SFGSM‘s 2019 survey, the most commonly implemented strategic actions, currently, are:

  • 47%  Develop and/or improve KPIs used to measure field service performance
  • 43%  Invest in mobile tools to support field technicians
  • 38%  Automate existing manual field service processes and activities
  • 34%  Integrate new technologies into existing field service operations

The question then arises: What can your FSO realize from aggressively addressing each of these challenges and opportunities head-on, recognizing the key market drivers, and taking the strategic (and tactical) actions to take the organization to the next level?

The answer is simple! The average FSO is currently attaining 37% services profitability and 84% customer satisfaction (although 26% are not even attaining 20% profitability, and 20% are not attaining 80% satisfaction). Therefore, while the opportunity is there, not all FSOs have their operations in order to aspire to the next levels of Best Practices.

So, … if your organization is not currently attaining desired levels of profitability and satisfaction – or even worse, finds itself among those not even attaining lower levels of performance – now would be the perfect time to consider acquiring a Field Service Management (FSM) (or a Connected Field Service, or CFS) solution that can help it to attain these loftier levels, without losing any more ground to the industry leaders who have already taken the appropriate actions.

[BTW – Have you already taken SFG℠‘s 2019 Servitization Journey Benchmark Survey? If yes, then, thank you! If no, please accept our invitation to take the survey by clicking on the following Weblink: https://www.surveymonkey.com/r/SFGServ19. Thanks!]

Matching Your Services to the Customer’s Total Service and Support Needs

The customer’s need for basic product service and support is quite simple; essentially, when their equipment is down, and they need it back up and running as soon as possible. You may typically consider this as being the customer’s “core” need for basic systems and equipment service and support.

In most cases this will involve a simple, rather than complex, repair process; typically the kind of repair that the service technician has made countless times, over and over again. For repeat customers, the service technician will already be familiar with the equipment, along with its respective service history, as well as having some insight with respect to how the customer actually uses the equipment on a day-to-day basis. He or she will probably also have all the documentation and tools they need to make the repair and, probably, all of the necessary parts as well.

For most customers, this will be all they need – plain and simple. However, there will always be the chance for exceptions, and you should be prepared to address them as quickly as possible. Some examples include cases where the customer believes that what they are asking for is “basic” equipment service and support, but it is really value-added, or “over and above the call of duty” support.

For example, once the field technician arrives on-site, some customers may ask it to perform the next scheduled preventive maintenance at the same time since it was already scheduled for later in the week. While this may seem like a reasonable request from the customer’s perspective, it could possibly wreak havoc with the day’s service call schedule and, if no additional time is available, cannot easily be done. At times like this, the service technician will typically check in with its dispatcher to see whether performing an impromptu PM call is even feasible.

However, in most cases, all that is typically required in cases such as these is to inform the customer that the exclusive goal for this particular visit is to get the equipment up and running as quickly as possible, and that their scheduled preventive maintenance can best be accomplished at its pre-designated time.

While the service technician may have a clear understanding of the difference between “basic” and “value-added” equipment service and support, it cannot always assume that the customer will share the same understanding. It all comes down, ultimately, to the basic understanding of the difference between customers’ wants and needs, and the service technician’s ability to manage them appropriately.

By understanding the difference between the customers’ various needs and wants, and handling them accordingly, the service technician will already be far along the road toward matching the company’s services to the customer’s total needs. There is generally a big difference between customers’ “basic” and “value-added” product service and support needs; however, we may define their “total” needs as essentially encompassing everything they want, need, and expect to receive from their services provider, in general – and their field technician, in particular.

For example, the customer’s total needs may be nothing more than the coupling of their basic and value-added needs, all delivered to them in a timely, skilled, courteous, and professional manner. As such, the service technician’s performance at each of these levels of customer service becomes very critical. For example, if the customer perceives that the technician is unable to satisfactorily deliver even their most “basic” equipment service and support needs, they will be even less likely to believe that it can meet their “value-added” needs. Compounding the issue would be their perception that the field technician can’t even comport itself in a professional or courteous manner.

Ultimately, customers will be depending on their field technicians to not only provide the physical repair of their installed equipment, but to also serve as a technical adviser, trainer, applications specialist, service call scheduler, customer service representative, and primary go-to person for general inquiries, new product information, parts ordering, and anything else they can think of. Again, while it is not necessarily the technician’s responsibility to serve in all of these roles, they should at least be prepared to serve as a “channel” between the customer and everyone else within the organization who actually has these individual responsibilities.

In this way, the service technician can also position itself in the minds of its customers as someone who is “personally” responsible for supporting their “total” service and support needs, even if all they are doing is supporting their equipment on-site, and acting as an intermediary between and among the other various departments within the company’s service and sales organizations.

It is important to remember that even if the service technician is doing everything it is supposed to be doing within their specific service responsibility, the customer’s needs will generally always be greater than services alone, and they will continually be counted on to point them in the right direction, make the appropriate recommendations, lead them to the right people within the sales or other services organizations, and generally support them in all of their “total” service and support needs.

Lessons Learned from WBR’s 2019 Field Service Palm Springs Conference – How FSM Solution Vendors & FSOs Are Advancing Service Together

[WBR’s annual Field Service Palm Springs conference is the premier Field Services event of the year – and this year was no exception! More than 850 field service professionals attended the conference during the last week of April, 2019.

The following is a brief excerpt from SFG℠‘s “Lessons Learned …Analysts Take report, written and distributed under the auspices of WBR. Our suggestion? Don’t read the following excerpt – go to the bottom of the page and download a complementary copy of the full report, and read up on what the key players in the field services community had to say with respect to “Advancing Service Together!“]

Since 2003, WBR has been bringing together the world’s leading services organizations to “benchmark, establish best practices, embrace new technologies and build a strong network to enhance its attendees’ services businesses and field operations.” Each successive conference over the past 16 years has provided participants with “future-facing content and a mix of interactive session formats that ensure [they can] learn and network most effectively.” As such, these annual (and mid-year) Field Service events are designed to set up its attendees “for maximum profitability and competitiveness in [their] service business.”

The main theme for WBR’s 2019 Field Service Palm Springs conference was billed as “Advancing Service Together” – and the succession of speakers, presenters, moderators, panel participants and practitioners all supported that theme throughout the conference by sharing examples (i.e., mostly success stories) about how it takes a strong commitment to teamwork to have any chance of meeting, let alone exceeding, management goals for improving employee and customer satisfaction – while at the same time, driving increased services revenue streams and making a profit by doing so.

In fact, there appeared to be more focus on the importance of attaining high levels of employee satisfaction and retention (and their linkages to customer satisfaction and retention) in the 2019 Palm Springs conference than in any of the past WBR Field Service events in recent memory.

“What struck me most about this year’s Field Service Palm Springs event is the overall progress of the industry – it was far more conversational this year among service executives. Rather than a few innovative leaders speaking up and the majority of attendees listening and learning, there was far more collaboration. It was clear to me that we’ve moved beyond an advanced few tackling the service evolution to now everyone being somewhere along the journey. This made for a far more engaging dialogue among attendees, presenters, and the vendor community.”

– Sarah Nicastro, Field Service Evangelist
Future of Field Service

Each of the two Main Days of the conference had a particular focus, beginning with Day One setting its sights on “Leveraging IoT, Big Data, and AI To Move Towards Preemptive Service And Achieve Customer Business Outcomes”; and Day Two focusing on “Increasing Revenue With New Service Offerings And Knowing What Your Customer Wants.”

Overall, WBR’s 2019 Field Service Palm Springs conference gave every attendee the opportunity to learn, question, network, buy/sell and interact with vendors, practitioners, editors, writers, industry experts, consultants, research analysts, peers and competitors and every other important person or company in the field services business.

The temperature was hot – but so were the topics that were covered at the conference. One of the key points that I made as part of my Track A opening remarks was that “the main benefit of this conference is that it represents a middle ground between what we all learned last year, and what we will expect to learn next year.” As such, this year’s conference represented another key milestone in the Journey that we, as an industry, are taking along with our customers.

“As Bob Dylan once wrote and sang, ‘The times, they are a’changin’.    He must have been singing about the field services industry!”

– Bill Pollock, President & Principal Consulting Analyst
Strategies For Growth℠

Here’s looking forward to seeing you all at Amelia Island later this year, and in Palm Springs again next year!

[To download a complementary copy of the full “Lessons Learned …” report, simply click here: @@@ 2019 Field Service Palm Springs Analysts Take Report.]

Bill Pollock’s Responses to Field Service News’ 2019 Big Discussion Questions

[This is the companion piece to Field Service News’ 2019 “Big Discussion”, published in four parts in its digital magazine. This Blog contains the full text of my responses to Associate Editor, Mark Glover’s four questions. Please visit the FSN Website to view my edited responses, along with those of other services industry experts, at: https://www.fieldservicenews.com/blog/the-big-discussion-what-challenges-opportunities-and-trends-should-we-expect-in-2019-part-1.]

FSN – Across the last twelve months what do you think has been the biggest shift in how we approach field service delivery? 

Pollock – The last 12 months have been quite a bit more active among global Field Services Organisations (FSOs) with respect to their acquisition and implementation of new technologies. For example, after having spent a number of years more as a perennial line item on an organisation’s “wish list”, Augmented Reality (AR) has gained a much wider acceptance, and is presently in use by more than twice as many FSOs as just a year earlier. In fact, the trend lines for AR adoption are have begun to increase at an accelerating rate. We are now also seeing the further incorporation of Artificial Intelligence (AI) and Machine Learning into existing FSM systems. As a result, many FSOs have already begun the transformation from the traditional break/fix model to the use of predictive diagnostics and AI-powered chatbots to facilitate and expedite service delivery.

FSN – IoT has become an increasingly key discussion amongst field service companies in recent years – do you think it will soon be essential for field service companies to embrace IoT?

Pollock – I believe it is already essential for field service companies to embrace the IoT. That ship has already sailed – and those FSOs that run their services operations on an IoT platform are already beginning to see the return on their investment. The enormous amount – and wealth – of data that is now being generated through the use of an IoT platform is turning many of the traditional ways of thinking upside-down. For example, it has created an environment where the “old” (i.e., last year’s) way of measuring performance is becoming almost instantly outdated. For example, last year, an FSO might have been assessing its service delivery performance on the basis of asset uptime or SLA compliance, etc. However, this year, they may need to gauge their performance viaan entirely “new” set of KPIs! Measuring your performance in providing “power by the hour” or “airplanes in the air” is quite a bit different than measuring on the basis of the number of monthly site visits, PM calls and asset uptime.

FSN – What do you think should be the key areas of focus for field service managers across the next twelve months?

Pollock – The next most important areas of focus for field service managers in the coming 12 months will likely be among the following three items: (1) embracing the “new” technologies to support an expanded and enhanced capability to deliver their respective service offerings. Artificial Intelligence (AI) and Machine Learning have been around for more than 50 years, but are still relatively new to the services segment – but, it’s time to build them into your service operations! (2) Changing the way in which you deliver – and price – your service offerings. Traditional break/fix service is essentially “dead”. Long live predictive diagnostics and predictive maintenance! Have you spoken to any chat bots lately? Well, you will! (3) Re-engineering the way you measure performance metrics, or KPIs. Mean-Time Between Failures (MTBF) and Mean-Time-to-Repair (MTTR) will not mean anything in an environment where services are being performed remotely on an ongoing basis. It will be time to replace some of the old “tried and true” KPIs with new ones that can measure systemic productivity, rather than merely individual field technician productivity. It’s time to rethink the entire service delivery process – and adjust to it!

FSN – What is the biggest area of concern that field service companies should address in the next 12 months?

Pollock – The biggest area of concern for field service companies in the next 12 months will be, if they’re already somewhat behind the technology curve (or with respect to the competitive landscape), what do they need to do todayto ensure that they will not fall further behind? And, it’s not just a matter of technology either; many FSOs will need to alter their corporate philosophy and mentality as well. Technology goes hand-in-hand with the personnel that use it, so attention must also be given to how the organisation goes about replacing, and/or supplementing, its existing field force with new hires or the use of outside, third-party “feet on the street” support. The services world is evolving so quickly, that any missteps along the way can be devastating – so every step, every move counts. There will also be no time for any intra-mural infighting – only for collaboration and inter-departmental cooperation. Equipment will keep on breaking, and end-of-lifecycles are getting increasingly shorter. As such, there will always be the need for services organisations to deliver their support! However, only those that have the technological and corporate wherewithal to continually improve the way in which they deliver their services will rise to the top of the competitive order – and stay there!