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.

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The IoT Is Changing the Way in Which We Approach Field Service Management (FSM)

The impact of the Internet of Things (IoT) on Field Service Management (FSM) has already been significant – and will continue to grow in magnitude over time. This applies to all services organizations, of all types and sizes, covering all world geographies, and supporting all product-service lines. Yes – it’s that pervasive!

This is especially true for organizations supporting certain vertical industry segments (e.g., aviation/aerospace, energy, factory automation, medical devices, etc.), and is beginning to have a similar impact on all other segments, even going beyond the traditional field service B2B segments, to now include many of the emerging B2C services segments, such as consumer/home medical devices, home security systems, HVAC/electrical and plumbing services, among others.

In fact, the pervasive use of Cloud-based platforms, coupled with the integration of IoT-powered FSM solutions, has expanded the relevant market size to a near-ubiquitous universe encompassing all types and sizes of solution providers, as well.

However, as we sit here and read about IoT-powered FSM solutions, the means with which the IoT is supporting these systems is constantly growing and evolving as well. Even more, if a services organization has not yet embraced and incorporated the IoT into its services operations, they are already a step or two behind the market leaders. For example, for any one of the organizations that are still examining the potential value of incorporating Augmented Reality (AR) into their services operations, there are many others that are already looking to implement Artificial Intelligence (AI) and Machine Learning (ML) – and, increasingly, Blockchain!

The time is now for ramping up on all things IoT, reading IoT thought leadership articles, 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 and the “new” technology it brings to the table.

The most progressive – and aggressive – solution providers have already embarked on the road to an IoT-powered FSM or Service Lifecycle Management (SLM) solution scenario. As such, now is also the time for all other FSM solution providers to do so. 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 ultimately do for them. When the global services management marketplace is more fully transformed (i.e., when the IoT is a ubiquitous factor in every organization’s services operations), your organization will also need to have made the transformation. If the market leaders are already several steps ahead of you, you cannot afford to fall further behind.

Proliferation in the use of Cloud-based and IoT-powered FSM solutions have also led to a major consolidation of the global competitive landscape. The “new” competitive landscape is now comprised of a combination of all types, sizes and categories of solution providers. Most (if not all) of the enterprise services providers are already offering FSM (or SLM) solutions (or, at the very least, “enhanced” Field Service Management solutions). They “get it”, and they’re doing something about it.

Over the past several years, we have also 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 by introducing its Field Service Lightning solution based on ClickSoftware technology. ClickSoftware went private again, but still is a strong competitor in the global FSM marketplace, while also licensing some of its software apps to other organizations.

For the most part, the mid-sized services organization market 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. Some are already on an equal footing with their larger competitors. However, where the most “confusion” and uncertainty lies is in the landscape populated by start-ups – and what, in some cases, I refer to as “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 successfully 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 opportunity (for them), in order to make a quick buck when all they ultimately plan to do is to be acquired by 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.

Yes – the IoT is definitely changing the FSM marketplace – both rapidly and pervasively. You can blame it on the IoT for this rapid evolution (and disruption); however, you will also need to share some of the blame yourself if your organization is not keeping up with the advances in services management technology!

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

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

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

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

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

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

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

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).]

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)]