Using Service Lifecycle Management (SLM) to Support Your Customers While You’re Servicing Their Equipment

Every day you deal with a multitude of customers who vary by type, size, installed base, usage, personality and everything else that ultimately differentiates one customer from another. However, one thing always remains constant – their business systems and equipment are critically Important to their day-to-day business operations. Despite this common thread that runs through virtually all of the customers you support, it is still important to recognize that each customer account will likely be different in terms of:

  • The various types, brands, models and numbers of units they have installed at their respective sites;
  • The ages of the individual units that are covered under their various Service Level Agreements (SLAs), or supported viaa Time & Materials (T&M) basis;
  • The usage patterns of the equipment at their individual locations (i.e., continuous intermittent use; single vs.multiple shifts; simple vs.complex multifunctional peripheral applications; and so on);
  • The volume, capacity or throughput they regularly execute; and
  • Many other unique and/or specific differentiators.

For some of your customers, their equipment is an integral component of what they do on a day-to-day basis. Customers in all industry segments, whether it be legal, financial, medical, real estate, government, or other highly-demanding markets, will tell you that their systems and equipment are essential to their business operations, and that when their equipment is down, their production is severely affected. For some, even a small piece of connected equipment may be the only means they have for providing their customers with a receipt, order confirmation, or other important transaction-generated documents. In fact, for many in the latter category, their reliance on the equipment you support may be even more critical to them (at least on a relative basis).

Regardless of the specific industry market segment or type of customer, there will always be a basic level of reliance on the business systems and equipment they have installed at their facility. In addition, you will find that your customers will also be relying heavily on your organization to ensure that their equipment is always up and running as required – and as expected. As such, it is important to recognize that in the customer’s mind, if the equipment is not working optimally – regardless of the technology that may have been built into it – it is worthless.

Since there is just so much that the customer is either inclined or permitted to do in order to get the equipment back in working order following a failure, in most cases, your field technicians will be the sole entities that they can count on to make that happen (that is, aside from remote monitoring and diagnostics, etc.). Accordingly, they will need to approach the servicing and support of the equipment with a great deal of professionalism and responsibility. Customers usually do not care whether the cause of an equipment problem is due to a hardware or software failure; a paper jam; or whether it was the unit’s fault, their fault, or nobody’s fault in particular. All they know is that when they needed to use the equipment, it simply did not work.

This is typically where the organization’s field technicians come into the picture. In many cases, they represent the only “real” physical manifestation of the service and support that keeps their equipment up and running – or at the very least, they may represent their first line of service and support defense. Your customers may rely heavily on the equipment itself to support their day-to-day business operations; but they rely even more on your organization and your field technicians to ensure that the equipment can continually do what it is supposed to do.

This is a unique area where most services organizations – and their dealers and distributors – can use some help! The good news is that there is a Service Lifecycle Management (SLM) software solution available for users in every industry, size and geographic coverage segment. The implementation of anSLM solution can provide a comprehensive set of integrated business solutions that empower strategic initiatives while driving tactical execution.

Companies that install, repair, and maintain business systems and equipment can increase their competitive advantage, grow top-line revenue, and bolster bottom-line profitability through the use of an effective SLM solution. Among the basic features and benefits of SLM functionality for a typical Field Services Organization (FSO) may best be summarized as follows:

  • Comprehensive Contract and Service Level Management
  • Service and Sales Integration
  • Increased Help Desk/Contact Center Effectiveness
  • Field Service Efficiencies

Comprehensive Contract and Service Level Management

Through SLM, customer contracts and Service Level Agreements (SLAs) can be structured in ways that best fit the business, as well as the businesses of their respective customers. Key items such as maintenance and repair service; preventative (or predictive) maintenance; remote monitoring, diagnostics and repair; and draw-down contracts can all be easily established and managed. As such, the organization’s services management can be assured that all of the obligations of its customers’ SLAs are well-planned for – and met – and that all of its mission-critical commitments to the customer are being honored.

In this way, services revenues are maximized, and there is little risk of experiencing lost revenues. Company representatives can quickly and easily verify both the customer and vendor entitlements, thereby eliminating any costs that might otherwise be associated with providing customers with parts, consumables or services they are not entitled to under the terms and conditions of any existing warranties or contracts. This also ensures that any and all dealer claims will be quickly processed.

Service and Sales Integration

The Service and Sales Integration functionality of an SLM software suite can be relied on to enable the manufacturer’s and dealer organizations’ field service technicians and contact center personnel to more thoroughly service the company’s accounts, while also driving increased revenue in the process. By placing intuitive, easy-to-use sales tools into the hands of the appropriate service employees, the number of new opportunities to up-sell and cross-sell equipment, parts and consumables to existing customers will increase multifold.

The organization’s service technicians are out in the field every day talking to, and interfacing with, its customers; why not also provide them with the tools and resources they can use to close – or at least open –additional sales opportunities within this virtually captive customer base!

Increased Help Desk/Contact Center Effectiveness

SLM can also allow the organization to increase its call handling efficiencies, especially in the areas of first-call resolution and call avoidance rates. This will ultimately result in the lowering of internal service costs, and commensurate improvements in existing levels of customer satisfaction and retention. In many ways, business systems and equipment services have been somewhat commoditized over the years, and the only way that one services organization (or its dealers) can establishment a competitive advantage over another is to differentiate (i.e., improve) the way in which they support the customer base after the initial sale.

The best way to do this is to provide superior levels of help desk and call center support empowered by a robust SLM capability. By arming your call center personnel with accurate and up-to-date customer and installed equipment base information – be it entitlement, configuration, or marketing campaign data – the organization will be able to greatly increase its ability to sell, cross-sell, and upsell its entire portfolio of products, services, parts and consumables.

Field Service Efficiencies

Leveraging the field service automation tools inherent in the SLM software allows the organization to optimize its field force capacity utilization, resulting in significant operational efficiencies as field technicians quickly become empowered to increase revenue generation and recovery. By streamlining and managing the invoice process, billing cycles will be lowered, as will other key areas, such as Day Sales Outstanding (DSO), etc.

These improvements will almost immediately go directly to the bottom line as you will be able to manage your cash flow and receivables much more effectively. Similarly, by streamlining and managing your service inventories (such as trunk stock) more effectively, you will also be able to realize significant inventory cost reductions.

What many OEMs and dealer organizations seek is an end-to-end, enterprise-wide SLM solution that addresses the complete equipment/service lifecycle, from lead generation and sales quotation, to service and billing, through asset retirement. They are looking for a solution that both integrates and optimizes the critical business processes that all services organizations have to face with respect to providing their customers with the levels of service and support they require.

Services organizations that provide their customers with any combination of products, parts, services and consumables must be able to not only fix the customers’ equipment, but to fix the customer as well; however, the ability to do so may vary greatly from one organization to another. However, the most successful organizations will ultimately be the ones that have the right mix of management, personnel, tools, resources and solutions (i.e., Service Lifecycle Management), all working together to provide their customers with the levels of service and support they require – and expect!

The Importance of Truly Knowing Your Customers

The field technician’s role in supporting its customers may be extremely varied, and no one job description is likely to be able to describe or define everything he or she does – either from the customer’s perspective, or from the organization’s. In some cases, a field technician is called on to be nothing more than the repair person – they arrive on-site, fix the equipment, and leave without causing any undue disruption; however, in other cases, they may serve as anything from a consultant (i.e., being asked to provide advice on how to most efficiently use the equipment), to a trainer (i.e., being asked to teach the customer how to operate some of the equipment’s more advanced features), to a sales person (i.e., being asked to suggest what new types of equipment should be acquired to replace the existing model), etc.

If the question is “Which one of these roles is the field technician supposed to play when interacting with its customers?”, the answer is – simply stated – “All of them!” The customer will, at one time or another, expect their field technicians to serve in all of these roles, as they will typically be the only representative of your company that physically visits or speaks to the customer once the original equipment sale has been made (save for an occasional sales call made as the equipment nears the expiration date of the warranty or service agreement, etc.).

Basically, field technicians need to serve in whatever role their customers expect them to serve as they will be their only “true” connection to the company that provides them with their operating systems and equipment service and support. The irony is that, if all they do is repair the customer’s equipment whenever it fails, they will typically be perceived as “not doing their job”. However, by also becoming their customers’ systems and equipment consultant, advisor, and (pre-)sales person – if only on a casual, or as-needed basis – they will certainly place themselves in a stronger position to become the most important individual to the customer with respect to any and all of its systems and equipment service and support needs.

It doesn’t take customers a very long time to get to know who their field technicians really are. In fact, with just a few on-site service calls under their belt, they probably will get to know them very well in terms of how well they communicate with customers; how quickly they react to what they would define as “emergency” or “urgent” situations; how quickly they tend to arrive on-site; and how much attention they pay to the details once they get there.

Can your organization say the same for each of its customers? If the answer is “no”, you may find yourself in a situation where your customers are “managing” their relationships with you better than you are with respect to managing them. If this is the case, you may ultimately find yourself at a relative disadvantage in dealing with your customers in the future – especially if they believe that you don’t really know who they are (i.e., what makes them “tick”; what “ticks” them off; etc.).

So, what do you really need to know about your customers? It once again comes down to having a basic understanding of their specific and unique needs, requirements, preferences, and expectations for the types of service and support you provide, and the way they react when their equipment goes down. And, how can you best get to know your customers on this basis? By listening, observing, and thinking before you speak!

However, while understanding the customer’s need for basic systems and equipment service and support is relatively simple, understanding their need for “value-added” service and support may be a bit more complicated, as their interpretations of exactly what “value-added” means may be “all over the place”.

From the customer’s perspective, “value-added” may mean anything from performing additional maintenance service on peripherals hanging off of the equipment; to servicing additional equipment while the service technician is already on-site; to installing new software; to installing another piece of equipment they had recently purchased from your company that you were not even aware they had; to walking them through an unrelated problem that they might be facing; to anything else in-between.

While these may all represent realistic “needs” from the customer’s perspective, it will ultimately be up to company policy (and the service technician’s daily schedule) to determine what really represents acceptable “value-added” service and support while the service technician is already at the customer site – and what will require an additional, or separate (and, sometimes, billable), work order.

Some examples of the various types of value-added service and support that both the service technician and its customers may agree on while the tech is already on-site may include:

  • Answering questions or inquiries about other installed equipment that they presently have covered under a service agreement with the company;
  • Double-checking the integrity of the connectivity and/or interfaces that the equipment that was just repaired has with other units in the user’s network;
  • Ensuring that everything that was just worked on is operating properly, doing what it is supposed to do, and interfacing properly with other systems and equipment; and
  • Assessing whether there are any other potential problems or possible “flags” that both the service technician and the customer should be aware of before closing up the equipment and leaving the customer site.

Other types of value-added service and support that may be requested include showing the customer how to operate the equipment more efficiently after they have told you what they were doing that ultimately caused the machine to jam, crash, or otherwise stop working in the first place.

While it is not necessarily the service technician’s role to provide on-site, on-the-job training to its customers, it is still within the realm of his or her responsibility to ensure that they are operating the equipment properly, and performing their own equipment maintenance and management (as permitted) in an appropriate manner (i.e., neither neglecting nor abusing the equipment during the normal course of operation).

The bottom line is that you really do need to know your customers, because they probably already have you (and your service technicians) figured out!

Stepping Up to a “World Class” Service Delivery Model

Many businesses that have historically striven to provide their customers with merely “satisfactory” levels of customer service and support have now begun to move closer to a “world class” service delivery model in order to provide their customers with “total support” beyond merely product acquisition. Today’s customers are looking well beyond the product, and are focusing just as much on other pre- and post-sales support offerings such as implementation and installation; equipment training, field and technical support, Web-enabled self-help; remote diagnostic and predictive support capabilities; professional services, including consulting and application training; services management outsourcing; and a whole variety of other value-added services. More importantly, many are still wondering when their primary suppliers will truly be able to provide them with the levels of “world class” service delivery they now require!

In fact, we believe that now represents a critical time for virtually every business to update, or refine, its strategic plan for moving closer to a “world class” service delivery model. This plan may encompass many components, including:

  • Reassessing the company’s existing customer service and support mission, goals and objectives, capabilities, resources, and infrastructure;
  • Identifying and prioritizing the existing and emerging customer/market demands, needs, requirements, expectations, and preferences for customer service and technical support, across all classifications of the company’s market base; and
  • Developing specific recommendations for action with respect to the engineering/reengineering of the existing services organization and processes in an effort to arm the company with a more competitive – and effective – “world class” service and support portfolio.

In more specific terms, the overall goals and objectives of such a planning effort, simply stated, should be to:

  • Examine, analyze, and assess the company’s service and support mission with respect to its desired ability to ultimately provide customers with a full range of service and support offerings that will position the company as a “world class” product and services provider;
  • Identify, from management’s perspective, what the most important elements of a “world class” service operation would be expected to comprise, and within what framework it would envision such an operation to be created and managed;
  • Determine, from the customers’ perspectives, where the company should direct its primary attention with respect to creating a more customer-focused service and support organization and service delivery infrastructure;
  • Define how the desired service delivery organization should be structured in terms of human resources, roles, responsibilities, and functions; organizational components and structural hierarchy; internal vs.outside components (i.e., in-house vs. outsource); strategic partnering and channel alliances; management and staff training; and other key related areas;
  • Recommend how the optimal service operation should be structured in terms of defining and establishing the appropriate service operations, processes, and procedures; logistics and resource management controls; operating targets and guidelines; management control and performance monitoring parameters; and other key related areas; and
  • Provide specific recommendations for the establishment of a more “flexible” services organization and operational infrastructure that addresses all key elements consistent with the delivery of “world class” service and support to the company’s present and projected marketplace.

The specific areas where the services and support strategic marketing plan should focus include:

  • Identification of customer needs and requirements for “World Class” service – including recommended goals, targets, and desired service parameters based both on input/feedback gathered from existing and potential customers, as well as from an assessment/evaluation of other state-of-the-art service organizations/operations in the general marketplace.
  • Composition of the recommended customer service and support portfolio – including the development and packaging of a “tiered” customer service and support portfolio matched directly against the specific needs and requirements of both existing and prospective customers.
  • Service operation structure and processes – including recommended service and support operations supporting the overall service portfolio, focusing on customer service, call handling, help desk, technical support, on-site support, order entry, call logging, administrative, and other processes (to be determined).
  • Determination of key performance indicators – including identification and recommendations for the selection of the most appropriate industry metrics, and guidelines for measuring and tracking service performance over time.
  • Definition of service organization, functions, and responsibilities – including recommendations for the general structure, roles, and responsibilities of the service organization and infrastructure; inter- and intra-departmental roles and responsibilities; organization functions and activities; updated job descriptions; in-house vs.outsourcing decisions; channel management; etc.
  • Selection of operational tools – including recommendations for the most effective use of information and communications technology (ICT) tools, services management and CRM software, and other segment-specific support tools, etc.
  • Formalization of the implementation plan – In-house: including system selection, investment plan, organization development, training, etc.; and outsourcing: including strategic partner selection criteria, performance measurement/management requirements; and general timeframe and rollout plan.

Providing customers with “world class” customer service and support is generally not achievable without a well thought out and orchestrated “world class” planning effort. Good products don’t sell themselves anymore than they service and support themselves. All of these functions must first be developed and implemented as part of an overall business plan. However, we believe that the most successful – and profitable – businesses are those that have managed to effectively deal with both sides of the issue – that is, they know how to sell, and they are prepared to service and support the “total” needs and requirements of their constituent market base. And, by doing it on a “world class” basis, they can benefit from one of the most effective competitive differentiators.

If your organization still operates primarily as a manufacturing- or product-focused business, if service is managed basically as a cost center, or if it is still using the same service delivery model it has used for as long as you can remember, it may be totally missing the boat! Regardless of what product lines your organization has historically manufactured, sold, or distributed, one thing remains certain – your customers want “world class” service and support, and the only way you will be able to provide them with what they want is to plan for it; implement an effective service delivery strategy; acquire all of the necessary tools,  and get all of its resources and processes in place – and, then, roll it out and reap the benefits!

Knowing What and How to Cross-Sell and Upsell

Every business has a portfolio of products and services that it markets, promotes, and sells to customers. In fact, most businesses make their product and service portfolio information available through a variety of means, including published product literature and general marketing collateral, service guides, company catalogs or brochures, and various other types of printed matter. In addition, most of the product and service information is also typically accessible viathe Internet through company and/or dealer Websites, trade association or other industry clearinghouse Websites, online commercial buyers guides and/or directories, and others.

However, even your own company’s brochures or Website may not be 100% complete – or completely up-to-date – with respect to the information it provides on its portfolio of products and services. In fact, in a competitive marketplace where new products and services are being introduced on a virtual daily basis, it is more than likely that some product and service information may be missing – and most likely, these will be the newest additions to the overall portfolio. Further, what the company may make available to the general marketplace, may not yet have landed on the desks – or the desktops – of your customers.

You can probably assume that most of your customers do not keep running tallies of the various advances that are being made to the products and services that have been using for some time. Nor do they typically keep brochures or copies of new product and service information in a readily-accessible file folder. Outside of your more sophisticated and organized accounts who monitor such things as the ongoing cost of utilization of their systems and equipment, or expected product life spans and/or life cycles, and build all of this information into their annual planning processes, it is a safe bet that most customers will not begin collecting information on new products or services until their older products stop working, or the existing service level agreements are no longer doing their jobs.

For this reason, your company will be depending largely on its field technicians to make sure that you are always current, up-to-date, and well-informed on the various types of products and services it offers. In fact, if they are doing their jobs properly, they should have a more current, comprehensive, and accurate “read” on the company’s products and services than any other single document, brochure, web site, or other piece of marketing collateral.

After all, the technicians are the ones who are out in the field every day dealing with dozens of customers and all types of equipment – small, large, new, old, and everything in-between. They have probably already attended all of the most relevant training classes, or have seen a demo, for all of the new types of equipment well before the market base has even learned of their existence. They have probably even installed some of the newer products for which your company may not yet have released a formal brochure or product spec through its typical customer, dealer and/or media channels.

As a result, who better than your field technicians to know what products are available, why they may be better in some business applications than some of the company’s historical products, and which of their accounts may benefit from adding some of these new products to their own installed base of equipment? The answer is, of course, nobody else does – certainly, nobody else who deals directly with the company’s customer base on a day-to-day basis.

The bad news is that they may never actually gain access to all of the company’s new product and service information on an automatic basis. There are just too many products and services to keep track of – both new and old, and too many individual sources of information that keep passing across their tablets, through texts, or via e-mail.

The good news, however, is that it should be relatively easy for them to keep their own tabs on what new products and services are becoming available, and immediately see opportunities for where it may be beneficial to make some suggestions to some of their accounts with respect to replacing older equipment, upgrading to higher-volume machines, or generally stepping up to a more efficient business system.

They should also already have a good understanding of what the specific needs and requirements of their customers are with respect to their existing products and services; and by keeping current with the new products and services that are continually being made available, they will find themselves in an excellent position to assist their customers in matching these new products and services to their evolving needs – or basically upselling them to a more efficient operating scenario.

When you think about it, upselling should be a lot easier than making the original sale. The rationale behind this is that in order to make an initial sale you’ve got to take non-customers, and convert them into customers by selling them something for the first time. However, in order to upsell, all you have to do is sell an existing customer an additional one of your company’s products or services. What makes this easier is that once a customer has already been “sold” on your company’s reputation, qualifications and capabilities, it does not have to be “re-sold” on the company before it makes a second, or third – or twentieth – purchase.

By the nature of the word itself, “upselling” is different than “cross-selling”. When you “cross-sell” a customer, you are typically selling them a companion piece of equipment or service to what they already have. For example, if one of your customers already has an extended warranty contract on one piece of installed equipment, but not on another, you may find it relatively easy to “cross-sell” them an extended warranty on the second unit as well. Or, if a customer is already receiving preventive maintenance support on two of their three units, you may be able to sell them a PM contract for their entire installed base. Basically, in these cases, “cross-selling” simply means selling the customer “more of the same”, or more variety for the same base of equipment.

However, upselling is more vertically-focused than cross-selling. By that, we mean that upselling goes beyond simply selling your customers “more of the same”, typically involving the sale of upgraded, enhanced, and/or upscaled products and services. For example, if a customer currently has three older units installed, but you believe that they can actually handle more throughput, at less expense, by upgrading to two of your company’s newer units, this could conceivably lead to an upselling opportunity. In addition, if one of your customers is repeatedly calling for service on a time and materials basis, this may represent a good opportunity to upsell them to an extended warranty service agreement instead.

The best way to decide whether a customer sales opportunity would be better represented as a “cross-sell” or upsell situation is to first determine what the specific customer needs are. In situations where a customer’s business systems and services needs are fairly static, and the existing equipment appears to be meeting most of their requirements on a regular basis, you may still be able to “cross-sell” them additional units, or certain add-on coverages to an existing service level agreement (i.e., more frequent PMs, remote diagnostics, extended hours of coverage, etc.) as a means for making them somewhat more productive in the way they utilize their equipment (and the company’s services).

However, for customers whose businesses are continually growing or expanding, whose needs are becoming much more demanding (i.e., using new technical applications, increasing throughput quotas or expanding the number of daily shifts, etc.), or who are continually outgrowing their existing installed base, perhaps these represent situations where upgrading to an entirely new suite of business systems, or moving to a much more all-inclusive extended warranty agreement, would be a more logical solution.

Sometimes a cross-sell solution is all that is required to keep the customer operating at full efficiency; however, in some cases, it will only be an upsell solution that takes the customer to where it needs to be in order to utilize its equipment at maximum, or optimal, efficiency. The better you understand your customer, the better prepared you will be to determine whether a cross-sell or upsell solution is required.

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.

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.

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

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.

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).]

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)]