Field Service News Editor-in-Chief, Kris Oldland discusses the fact that the choices field service companies are facing today wider ranging and more critical to success than ever before and gives us an overview of what to expect in Field Service...
AUTHOR ARCHIVES: Kris Oldland
About the Author:
Kris Oldland has been working in Business to Business Publishing for almost a decade. As a journalist he has covered a diverse range of industries from Fire Juggling through to Terrorism Insurance. Prior to this he was a Quality Services Manager with a globally recognised hospitality brand. An intimate understanding of what is important when it comes to Service and a passion for emerging technology means that in Field Service he has found an industry that excites him everyday.
Oct 17, 2017 • Features • Leader • Magazine (digital editions) • MArne MArtin • Nick Frank • Outcome Based Solutions • resources • Bill Pollock • Felix Keiderling • Jim Baston • Servitization
Field Service News Editor-in-Chief, Kris Oldland discusses the fact that the choices field service companies are facing today wider ranging and more critical to success than ever before and gives us an overview of what to expect in Field Service News issue 19
There are of course always big choices to be made in business, but it seems field service companies are facing more big choices than ever in today’s market...
Which of course is not necessarily a bad thing at all. Choices mean options and options are a good thing. They allow us to follow a path that feels right for us.
Of course, options also let us change direction when we’ve headed in the wrong way for a while - although they do tend to come along less often if we spend too long heading up a blind ally.
Perhaps the most important option we can take (and one that is always available to us) is to listen to those around us. I’m a firm believer in the fact that we can learn something from everyone we interact with, but of course if you are facing time pressures (who isn’t these days) then I’d suggest starting with those who are experts in their fields.
Fortunately, we’ve an issue that’s jam packed with expert advice so all you need to do is keep on reading.
We’ve got what for my mind is our best yet panel in this issue’s Big Discussion, which is focussed on the relationship between Service and Sales. As always we’ve brought together three industry experts on the topic and put four questions to each of them.
Our panel consists of Nick Frank, Michael Blumberg and Jim Baston so there is a wealth of deep knowledge and experience waiting for you in that feature which begins on page 16.
Elsewhere we’ve two features that look specifically at how to choose the right field service management (FSM) solution for your business. When we consider just how big an impact the selection of a FSM solution can have on your business - how it can drive efficiency, reduce costs, create revenue...
“Perhaps the most pressing choice for many field service companies is whether to move away from the traditional break-fix SLA driven model that has served them well for so long...”
Frankly, it really is absolutely vital that this is a choice you get right first time around.
So for anyone considering an upgrade from a creaking old legacy system or looking to implement a system from scratch for the first time then I suggest checking out Bill Pollock’s article “Choosing the most effective FSM provider” and also Marne Martin’s article “Customer Experience is essential to every member in the field service ecosystem” which both offer insight into what makes a good FSM partner for a service organisation, whilst coming at the topic from slightly different perspectives.
Yet as important as selecting a FSM solution is, perhaps the most pressing choice for many field service companies is whether to move away from the traditional break-fix SLA driven model that has served them well for so long and to embrace the more modern and increasingly popular outcome-based service models.
We’ve discussed outcome-based services many times in these pages before and cards on the table, personally I’m a big proponent of the servitization movement. I think it absolutely makes sense. But that’s just my opinion and ultimately, it’s not a choice I need to make - unlike many of you.
So for those of you readers, of whom there are many I’m sure, whose organisations are considering this very question - then I absolutely recommend listening to those who have been there and done it. As whilst the benefits can be many , so too are the risks - it is not an easy path to tread.
One company that has been on that journey is ABB and you can read my interview with Felix Keiderling on the topic on page 44 and also check out my interview with GE’s Scott Berg on page 29 where we also discuss outcome based services in depth.
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Oct 16, 2017 • News • Future of FIeld Service • Oneserve • Preventable downtime • Chris Proctor
It has been revealed today that preventable machine downtime in the UK manufacturing industry is costing manufacturers a staggering £180bn every year.
It has been revealed today that preventable machine downtime in the UK manufacturing industry is costing manufacturers a staggering £180bn every year.
At a time when the UK Economy sets-out to re-establish itself as an economical, industrial and technological powerhouse on the global stage, the knowledge that over £180bn can be added back to the economy by controlling preventable manufacturing downtime will certainly come as positive news.
The comprehensive research commissioned by Oneserve, the award-winning field service management company, exposes the cost and time implications associated with traditional current machine maintenance methods.
It is truly shocking to see the scale of losses businesses endure due to machine downtime
Discussing the findings Chris Proctor, CEO of Oneserve commented “Whilst unsurprising, it is truly shocking to see the scale of losses businesses endure due to machine downtime. It is clear that existing maintenance processes aren’t working and the time has come for predictive methods to become the norm – not the exception. I hope that in light of these findings, businesses can take control of machine downtime and ensure they are working to deliver the best possible service for their customers.”
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Oct 12, 2017 • Features • Management • Michael Blumberg • Service Revenue
Michael Blumberg, President, Blumberg Advisory Group, reflects on the seven most crucial considerations for service managers tasked with driving additional revenue in today’s market...
Michael Blumberg, President, Blumberg Advisory Group, reflects on the seven most crucial considerations for service managers tasked with driving additional revenue in today’s market...
Revenue growth is probably the single most important objective for executives who are responsible for managing their company’s field service organisation (FSO) as a profit center or strategic line of business. “I want to double my service revenue in the next 3-5 years” is an incantation that I hear constantly from business owners and executives.
That equates to a 20% or more growth rate per year.
Sure, this type of growth is easily achievable if the market is growing at this rate or faster. I’ve found that these high growth targets are often triggered by management’s desire to take back market share from competitors or increase the share of service revenue contribution to overall corporate revenue.
While high revenue growth in a mature or declining market is difficult, it’s not impossible. A little work is usually required to achieve this type of performance.
To understand where the emphasis is needed, let’s look at where service market programs may fall short:
#1 - Service Portfolio not meeting customer needs:
Quite often service providers fail to meet their revenue objectives because their service portfolio is no longer meeting customer requirements. In other words, they have failed to offer services tailored to their customer needs. For example, offering only next day response when customers require same day.
#2 - Pricing not optimal:
If service revenue is flat or declining, a service provider might want to look at their pricing strategy and tactics. Perhaps their service prices are no longer competitive.
On the other hand, they may be underpricing their services in relation to the value they provide.
#3 - Failure to understand competitive threats:
Many service providers, particularly those that are divisions of manufacturers, fail to understand the competitive threat of third party maintenance (TPM) companies and/or in-house service providers.
For example, they often under estimate the value that TPMs provide to their customer and/or fail to develop an effective value proposition to compete against them.
#4 - Failure to articulate value:
The single biggest reasons why customer don’t purchase service agreements is because they don’t understand their value. An FSO must ensure they have clearly articulated the value of their service offering to current and prospective customers.
Do customers the cost of downtime or the pain points that their services help solve?
It is important that FSOs not only articulate value to their customers but also make sure that their sales people understand it and sales people are provided with the appropriate sale aides and marketing collateral to support it.
#5 - Lack of communication & follow-up:
One way to increase service revenue is by improving contract renewal rates.
These rates often decline though lack of consistent communication and persistent follow-up about the value of services provided, when contracts are up for renewal, special incentives for renewing, and information on when they are about to expire.
Customers are likely to forget about their experiences even if they are positive ones after 30 days. That’s why it is important to follow-up once a month.
#6 - Not asking for referrals or testimonials:
A recent study by HubSpot, a marketing automation software provider, found that 85% of companies who achieve year over year revenue growth do so because they ask for and receive referrals from their customers. Referrals are the best and least expensive source of generating new business.
The problem is most FSOs forget to ask for them. Remember customers speak to each other. They may be involved in the same networks and trade associations, or call on each other for advice and guidance. Why not enlist them in your business development efforts, even if it is to influence their peers in other companies who already know about the services you offer.
#7 - Lack of customer appreciation:
Your customers will remain loyal to you and purchase more from you when you let them know how much you value and appreciate them.
It’s the simple things like a courtesy phone call/visit, thank you card, small gift (i.e., rewards program), or exclusive offer that let them know you value their business. These seven focus areas have one thing in common, they all benefit from market research.
Whether its information that will help redesign a service portfolio or modify pricing, market research provides an unbiased and unfiltered perspective on what customers are thinking and doing. More importantly, market research, when designed effectively will uncover valuable market intelligence that may not have otherwise been captured from a sale’s call or courtesy call made by a company executive.
By implementing all seven approaches to revenue growth, as outlined above, on a highly disciplined and consistent manner, an FSO can expect to achieve a 30% to 120% increase in sales in just one year alone.
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Oct 11, 2017 • News • Fredrik vom Hofe • Mergers and Acquisitions • Workwave • Chris Sullens • IFS • Software and Apps
IFS is now uniquely positioned to offer world leading service management software solutions to the full spectrum of service businesses, independent of size, level of operational complexity, vertical focus or geographical location.
IFS is now uniquely positioned to offer world leading service management software solutions to the full spectrum of service businesses, independent of size, level of operational complexity, vertical focus or geographical location.
IFS, the global enterprise applications company, has recently announces it has signed an agreement to purchase WorkWave LLC. WorkWave is a leading provider of highly scalable, cloud-based Software-as-a-Service (SaaS) solutions for the Field Service and Last Mile Delivery and Logistics industries. WorkWave primarily serves small & medium sized (SMB) service businesses, with specific vertical focus on Pest Control, Lawn & Landscape, Cleaning & Janitorial, Heating/Ventilation/AC, Plumbing & Electrical and Transportation.
WorkWave’s SaaS solutions seamlessly integrate the office to the field, enabling SMB service businesses to streamline back office tasks such as scheduling, planning and billing, increase field visibility and productivity, and automate marketing and sales activities. As a result, WorkWave’s clients are able to significantly improve efficiency, reduce cost, boost revenues and enhance customer satisfaction.
This acquisition is further evidence of how IFS is investing to extend its global leadership in Service Management.
Commenting on the acquisitions, Fredrik vom Hofe, Group Senior Vice President for Business Development at IFS said “This acquisition is further evidence of how IFS is investing to extend its global leadership in Service Management. WorkWave, with its very strong SaaS offering and deep knowledge of how to serve SMB service businesses, complements IFS’s already leading service management offering that is used by many larger service-centric companies. We can now offer the most complete, connected Service Management solutions across the full-spectrum of service organisations and service-intensive industries, globally! In addition, we have significantly strengthened our presence in North America, the world’s largest software market, meaning that the Americas is now the largest region in the IFS Group.” He continued: “We are very pleased to have WorkWave’s CEO, Chris Sullens, and the talented WorkWave team join IFS to continue our growth in Service Management.”
Chris Sullens, CEO of WorkWave, stated “We are very excited to join the IFS team and looking forward to mutually accelerating our growth in the field service and logistics industries - and beyond. This is a great opportunity for our clients, partners, and employees.” He added, “We now have the opportunity to leverage the resources of a leading service management software organization, while continuing to invest in and deliver exceptional products and services to our core clients in pest control and other field service verticals. Our combination of offerings will help service businesses of all sizes solve their operational and growth challenges through our market-leading software solutions.”
The acquisition is expected to close in Q4 2017. The financial terms of the acquisition are not being disclosed.
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Oct 10, 2017 • Fleet Technology • News • Matthew Hague • MIcrolise • big data
Speaking at the IRTE Conference, telematics and technology company Microlise has said fleets will harness the power of Big Data in 2018 thanks to advanced data analysis techniques and growing demand for the capabilities they enable.
Speaking at the IRTE Conference, telematics and technology company Microlise has said fleets will harness the power of Big Data in 2018 thanks to advanced data analysis techniques and growing demand for the capabilities they enable.
This is according to Matthew Hague, Microlise Executive Director – Product Strategy, who recently addressed an audience at one of the UK’s premier conferences for fleet managers and operators.
“We have spent a phenomenal amount time and resource over the last two years, running a number of successful projects involving government funding,” said Hague. “Big Data is a bit of a buzz word, but it is one of those things that will really drive our product offering forward in the coming months and years.”
Big Data is a bit of a buzz word, but it is one of those things that will really drive our product offering forward in the coming months and years.
In 2014, with partner the University of Nottingham, Microlise was awarded funding of £359,000 from the UK’s innovation agency, the Technology Strategy Board (now Innovate UK). The objective of the “Value Enhancement for Data from Assets & Transactions” (VEDAT) project was to achieve customer and market value from the high volumes of complex data generated in real-time through telematics technology.
“We completed our work with the University of Nottingham last year and will soon be in a position to productise new and innovative tools and solutions that will create new value propositions within the transport and logistics sector,” added Hague.
According to Microlise, the first uses of this new big data resource will be predictive analytics for vehicle health, improving hazard awareness and briefing drivers. Though Hague said there are many use cases which will be developed in due course including the ability to benchmark performance against the industry or sector a fleet operates in.
“By using the anonymous data we capture every day then overlaying the government’s annualised accident black spot data, and crime data, we can very accurately predict risk while taking time of day and weather conditions into account,” said Hague.
According to Hague, it will soon be possible to rank routes according to risk, and even to alert drivers to specific risks along their route as they approach them ensuring they are prepared.
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Oct 10, 2017 • Features • FSM Systems • resources • White Paper • White Papers & eBooks • Software and Apps • software and apps • Asolvi
Resource Type: White Paper Published by: Field Service News (sponsored by Tesseract) Title: Five fundamental elements to expect in a FSM system
Resource Type: White Paper
Published by: Field Service News (sponsored by Tesseract)
Title: Five fundamental elements to expect in a FSM system
Want to know more? Access to this resource is available to Field Service News subscribers only - but if you are a Field Service Professional you may qualify for a complimentary industry practitioner subscription!
Synopsis:
Field Service Management technology has become essential to service delivery excellence. Service excellence is no longer a USP but a baseline requirement.
However, whilst technologies such as IoT and Augmented Reality are grabbing the headlines their potential is greatly diminished unless you have a fundamental layer of technology in place already.
This white paper explores what to expect from a FSM system and offers best-practice tips to help you get the most from your investment..
Overview
The white paper explores the following five key elements of a Field Service Management (FSM) System explaining the importance and offering best practice advice of how to get the most from your own system...
1. Contract Manager:
Contract management is often viewed as the starting point of almost everything within field service management operations. Without a view of your service contracts you cannot have to hand the answers for critical questions such as:
- What is the SLA on any given contract?
- Is a client under warranty or do they have an enhanced level of service contract?
- Does a contract include spare parts and/or consumables?
- Is the service contract due for renewal?[/unordered_list]
You could be at risk of potentially not meeting your clients expectations and so putting the potential of renewing or upselling service to that client in danger in the future – or on the other side of the coin, you could be giving valuable service away for free.
Therefore, Contract Management is perhaps the most important of the fundamental building blocks that you should expect to find within a modern field service management solution and perhaps the first area that you should make sure your team is fully versed in utilising.
2. Scheduling:
Scheduling comes in a number of different guises and the various different names given to types of scheduling options can be a somewhat confusing but broadly scheduling will come in three flavours:
- Assisted
- Optimised
- Dynamic
It is often assumed that a dynamic solution is required for a larger mobile workforce, but whilst the size of your workforce is certainly one consideration in which type of scheduling engine would best suit your service operation - this is not the only factor.
The complexity of the service work, as well as the variety of service jobs you undertake is another significant factor. For example an organisation that has a field workforce that services multiple different asset types – perhaps from multiple OEMs, and therefore has a number of different engineer requirements for differing jobs - would likely benefit far more from an optimised scheduling engine than an organisation that just fixes one or two types of assets for which all of their engineers are qualified to undertake repairs and maintenance.
3. Mobile tools and communications::
It is fair to say that the biggest revolution in field service has come from the rapid explosion in mobile computing power. Today’s smartphones are capable of greater computing tasks than even the laptops of just a few years back. For the field service organisation this is fantastic as it puts information at the field service engineers finger tips, empowers them to spend more time on maintenance and repair and less on activities such as paper work and enables them to deliver a far more effective and impressive service experience for the customer. Also, with the advent of smart phones, and then latterly tablets, has come greater communications tools than we could have ever expected ten years ago.
Also, with the advent of smart phones, and then latterly tablets, has come greater communications tools than we could have ever expected ten years ago.
However, whilst the mobile element in FSM technology is constantly evolving, essentially the most fundamental and core aspect that you want a mobile aspect of a FSM solution to do is to mirror your back-end solution and to do so in real-time.
4. Parts & Inventory Management::
Parts and Inventory management is perhaps an area that in the past has not received the focus and attention that it requires. It has often been the mantra of field service organisations that they are aiming to the get the right engineer to the right job, at the right time.
But that all becomes moot if the right engineer doesn’t have the right parts to hand as well. Consistently at industry conferences parts management remains a hot button and a common pain point for a huge amount of organisations. So whilst it is exciting to talk about emerging technologies such as IoT and Augmented Reality - a primary focus should be on ensuring our field service operation is as efficient as possible at a fundamental level, and that means getting a grip on parts management.
And whilst of course there are supply chain and logistics aspects to the conversation which can make things complicated – especially when you are using third party contractors – one of the most crucial aspects of good parts and inventory management is utilising a system that can keep track of where your inventory, including van inventory, is at any given point.
5. Integration:
We are living in a world of data lakes, data rivers, data mountains and all other types of data topography it seems! But all these vast swathes of data are meaningless unless you are able to draw insight from it, and quite often that means being able to let the data flow seamlessly from one set of business applications to another.
Of course, our vision of the future is that everything will be plug and play and all technologies will play well together nicely, but we aren’t quite there yet.
This is why integration is absolutely key in any modern business system – including FSM. Of course, our vision of the future is that everything will be plug and play and all technologies will play well together nicely, but we aren’t quite there yet.
Integration varies from provider to provider but often it is led by the integrations they have been asked to undertake, so if your current provider or a provider you have identified as being a good fit for your business don’t advertise integration with a specific system you are using – it is worth discussing the possibilities with them - especially if it is a common platform as making their product integrate may be useful for other future clients also.
This White Paper offers further details on each of the above elements and how to get the most from them.
Want to know more? Access to this resource is available to Field Service News subscribers only - but if you are a Field Service Professional you may qualify for a complimentary industry practitioner subscription!
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Oct 05, 2017 • Features • Management • ABB • aston university • Felix Keiderling • Servitization
Kris Oldland talks to Felix Keiderling, General Manager responsible for Global Service Business Development and Product Management of ABB Turbocharging shortly after his presentation at the Spring Servitization Conference in Lucerne, to find out...
Kris Oldland talks to Felix Keiderling, General Manager responsible for Global Service Business Development and Product Management of ABB Turbocharging shortly after his presentation at the Spring Servitization Conference in Lucerne, to find out more about how ABB are approaching the introduction of an outcome based service offering for the merchant marine sector as well as for power plants.
KO: Having just given a fantastic presentation a little earlier this morning one of the things you highlighted was that you have an install base of 200,000 assets and you know exactly what is going on with each and every one of those assets.
How do you achieve that?
FK: Well, we do not have a real-time information about all turbochargers.
But basically, knowledge about the installed based is at the core of our business considering the long life cycles over which vessels and power plants are operated. In order to do this we have an intelligent product and service database for specific application data covering from cradle to grave the whole process. I.e. from day one how we manufacture with what materials, through to where it is installed, on which engines and then keeping track of the lifecycle of the asset - how we’ve serviced it, if there are any upgrades and also technical information such as the estimated running hours and scheduled maintenance.
All this information creates value in particular for our long-term customers as we can be available where and when the customer needs us, with the right parts and the right people, very effectively.
KO: The business model that you described today generated a significant chunk of the revenue from service, has that always been the case, i.e. has service always been a key element within your business model?
FK: Yes it has. From Day 1 on, if you look at the harsh operational environments these engines are operating in, of course our turbo chargers also face these environments - so wear and tear is always occurring and we have always had to do regular maintenance because of that.
Due to this, from the beginning service has been an important part of our business approach and our success.
KO: And has it also always been a driver for you strategically? Or was there a customer pull as well?
FK: In one sense, it was a clear strategic decision especially when we looked at how manufacturing was moving to Asia and the big growth in logistics that was coming along with that. The merchant marine sector that we support is also driving this demand for regular maintenance for turbochargers as well.
Whilst it was a strategic decision in that we saw this market developing and positioned ourselves accordingly, there was also the move to implement our service solution globally which was in part a reaction to the changing demands of the sector.
KO: When you were speaking earlier on today you alluded to such change and that the shift in market forces had allowed to put yourselves in the position where you can begin to explore the potential of an outcome based solutions model - what exactly does that look like for your division in ABB and what is that appeals to you in such a model?
FK:We see certain things happening in the market- one is that uptake of service agreements is picking up in pure numbers, customers are increasingly willing to outsource their service needs to service providers, and in particular to the OEM.
We see that there is an interest in customers engaging in much longer term service agreements because they see the leverage of reducing their total cost of ownership the over asset lifecycle and also outsourcing the risk.
Then thirdly, there is the customisation possibility that you have within the scope of these lifecycle agreements - customers are willing to engage if you can truly support their operations and are willing to adjust to their needs.
KO: Finally, one other area that was brought up in your presentation, was digital transformation, which is one of the buzz-terms of 2017 it seems, but what does digital transformation mean for ABB both company wide and in your division?
FK: From top down, ABB has recently announced ABB Ability as the platform where we plan to connect all Internet of Things related services, products and people into this one common platform to ultimately enable our customers to know more, do more, do better, together with us. Then talking about our own specific unit, we are of course part of that process and we are looking into blending our excellence in global service execution, with digital customer solutions to support customers’ operations to be most reliable and efficient.
These solutions are in the development and are yet to come to the market
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Oct 05, 2017 • News • Future of FIeld Service • ERP • IFS • IoT
IFS, the global enterprise applications company, has released a primary research study on how the Internet of Things (IoT) affects readiness for digital transformation in industrial companies.
IFS, the global enterprise applications company, has released a primary research study on how the Internet of Things (IoT) affects readiness for digital transformation in industrial companies.
According to survey of 200 IoT decision makers at industrial companies in North America, only 16 percent of respondents consume IoT data in enterprise resource planning (ERP) software. That means 84 percent of industrial companies face a disconnect between data from connected devices and strategic decision making and operations, limiting the digital transformation potential of IoT.
The study posed questions about companies’ degree of IoT sophistication. The study also explores how well their enterprise resource planning (ERP), enterprise asset management (EAM) or field service management (FSM) software prepares them for digital transformation and to consume IoT data within enterprise software.
Respondents were divided into groups including IoT Leaders and IoT Laggards, depending on how well their enterprise software prepared them to consume IoT data—as well as Digital Transformation Leaders and Digital Transformation Laggards depending on how well their enterprise software prepared them for digital transformation.
[unordered_list style="bullet"]
- The two Leaders groups overlapped, with 88 percent of Digital Transformation Leaders also qualifying as IoT Leaders, suggesting IoT is a technology that underpins the loose concept of digital transformation.
- Digital Transformation Leaders made more complete use of IoT data than Digital Transformation Laggards; Leaders are almost three times as likely to use IoT data for corporate business intelligence or to monitor performance against service level agreements.
- Digital Transformation Leaders were more likely than Digital Transformation Laggards to be able to access IoT data in applications used beyond the plant floor. They were more than four times as lilkely to have access to IoT data in enterprise asset management software, twice as likely than Digital Transformation Laggards to be able to access IoT data in high-value asset performance management software, and almost twice as likely to be able to be able to use IoT data in ERP.
- The data suggests a real need for more IoT-enabled enterprise applications designed to put data from networks of connected devices into the context of the business.[/unordered_list]
In reviewing the findings, IFS Chief Technology Officer for North America, Rick Veague, commented, “Are your planning and maintenance systems robust enough to make real time decisions using IoT-sourced data? Many are facing the reality of having to answer ‘no.’ We have seen examples of companies coming to us because their incumbent software is not able to administer and use IoT data to achieve the gains they want to realize.”
Long before the term IoT was coined, IFS was committed to introducing machine data into enterprise applications. With the release of the IFS IoT Business Connector, we are in a better position than ever to help our customers operationalise their IoT data -Steve Andrew, IFS Vice President of Marketing for North America
“Study data suggest that the most common use case for IoT in these industrial settings is condition-based maintenance. The benefits go beyond operational improvements and maintenance cost avoidance,” said Ralph Rio, Vice President of Enterprise Software at ARC Advisory Group. “It increases uptime that provides additional capacity for increased revenue. It also avoids unplanned downtime that interrupts production schedules causing missed shipment dates and customer satisfaction issues. When married to demand and scheduling systems in ERP, IoT becomes a revenue-enhancement tool improving the top line.”
Download the Industrial IoT and Digital Transformation Study.
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Oct 03, 2017 • Features • Artificial intelligence • Augmented Reality • Future of FIeld Service • WBR • Sara Mueller • Parts Pricing and Logistics
Sara Mueller, Field Service Portfolio Director, WBR, discusses why despite the growing importance of technology within our industry, the critical balance between using automation to meet tightening SLAs and losing the important human touch points...
Sara Mueller, Field Service Portfolio Director, WBR, discusses why despite the growing importance of technology within our industry, the critical balance between using automation to meet tightening SLAs and losing the important human touch points field service visits offer the benefits they bring...
They say the only thing constant is change.
In just over a decade we’ve seen service organisations move from cost to profit centers. Now business models are evolving beyond product-centricity towards selling solutions or customer business outcomes. This shift in business model evolution and higher levels of customer service comes largely from the innovative technologies that are being widely adopted across global service organisations.
So much so that companies are quickly falling behind their competition and losing money to inefficiencies if they are too slow to adopt the cutting-edge technologies that have filled the service space in the last few years.
As the market analyst and director of program development for the Field Service USA and Europe events, I spend my time looking for trends that seem like they will stick, and uncovering the buzz behind buzz words.
I’d like to share with you three technology changes that have been popping across my radar lately, that seem to be here to stay.
Artificial Intelligence
Artificial intelligence (AI) is one such buzz word.
Field service leaders are actively debating how it will impact the industry.
Do service executives believe robots will take the place of field technicians or customer service operators in the short-to-medium term future? No (though more service organisations are adopting the use of drones to carry out service inspections in a safer, more timely manner). There is a critical balance that must be maintained between the technology service organisations use to keep machines up and running, and the personal human touch points that often contributes to higher levels of customer satisfaction.
Where I do see AI already being used within service organisations today, however, is with machine learning.
Augmented Reality
Secondly, our Field Service events have been talking about the opportunity for augmented reality (AR) in service for a few years now. I am starting to see companies that have finally piloted or are using AR as a standard tool of their service organisation.
Early conversations around AR debated whether the technology should be given to customers, so they could be the eyes for the experienced service technician (rather than the service organisation having to pay to dispatch an engineer to the site).
But generally most service organisations have decided that from a liability and legal perspective, its best to send a more junior-level technician to the site with the AR glasses or hands-free device, rather than put the tools in the hands of the customer.
A reason that the adoption of AR by service organisations has finally picked up is that the technology has gotten better, cheaper, and with more choices available. Devices are lightweight and more intuitive as the technology has evolved.
One limitation of AR is connectivity bandwidth. While only a small bandwidth is necessary for AR to work, if your customer’s facility has limited Wi-Fi or an unstable signal, it could disrupt performance and communication. So service organisations are starting to build the use of AR into their service agreements, including ownership of Wi-Fi so they can control the Wi-Fi sources themselves to produce a more stable environment to support AR.
Parts Management
Finally, if you are in service you need to have the right parts in the right place at the right time in order to get the job done. This hasn’t changed. But the way service organisations are carrying out service parts planning has.
Several years ago organisations were managing parts on Excel spreadsheets and realised they needed a more robust tool to carry out planning effectively. Nowadays, since most service organisations have adopted field service management (FSM) systems, they are no longer integrating a parts planning tool into their ERP, they are integrating it into the FSM system.
It’s an exciting time for field service technology, especially if you embrace change.
Instead, it may now be more efficient for a technician to service a wider variety of products at different customer sites; therefore the inventory he needs to carry around is more complex. Even a technician’s training becomes part of the selection criteria in the FSM to determine which customer site he will be dispatched to; so this type of training data is being integrated into service inventory planning tools as well.
It’s an exciting time for field service technology, especially if you embrace change. But as I alluded to earlier, there is still a critical piece of service that comes from the human connection between technician and customer. No matter how technology evolves, the service industry will have to figure out the right balance of technology and human intimacy in order to maintain customer satisfaction and loyalty.
Field Service News is published by 1927 Media Ltd, an independent publisher whose sole focus is on the field service sector. As such our entire resources are focused on helping drive the field service sector forwards and aiming to best serve our industry through honest, incisive and innovative media coverage of the global field service sector.
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