In the above video you'll find the Q&A session from our most recent webinar run in partnership with service management software specialists IFS where Field Service News Editor-in-Chief, Kris Oldland spoke with scheduling expert Daryl Dudey of IFS.

 

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Do Millennials and Augmented Reality hold the key to the future of field service?   Field Service News Editor-in-Chief speaks exclusively with Professor Howard Lightfoot of  Cranfield University School of Management to find out why field service organisations should ditch the chalkboard approach and embrace augmented reality

Augmented Reality (AR) is starting to make some serious waves in Field Service.

AR has made its way from being one of a number of potential technologies that we could see impacting in our market to perhaps the biggest conversation in field service circles, matched only by the emergence of a number of case studies of how Internet of Things.

One man who has been talking up the importance of AR within a field service environment for some time is Professor Howard Lightfoot.  Indeed, it was his forward-looking work at Cranfield University in embracing AR and it’s potential use amongst manufacturers and service organisations alike that garnered him a coveted place in this year’s FSN20 – a list of the most influential people within the field service industry globally.

However, whilst the potential for AR as a field service tool is vast, Lightfoot’s work has been in applying it in another area that will likely have just as big an impact on the field service industries globally: using AR as a training tool to bring in the next generation of field service engineers.

I took the opportunity to catch up with him after his presentation at this year’s Aftermarket Business Platform conference to find out more about the work he and his colleagues were doing and to ask the $64 billion question – is there a sufficient skill-set and talent pool amongst the millennials to ease our fears of an approaching ageing workforce crisis?

“What we’ve set up at Cranfield is a learning laboratory,” Lightfoot begins. It’s not a design laboratory laboratory or an engineering laboratory; it’s a learning laboratory and we are using virtual and augmented reality tools as part of training and teaching processes.”

Lightfoot, who is perhaps arguably more well known for some of his pioneering work in the field of Servitization, is part of a team at Cranfield who are very much ensconced in the world of manufacturing both at home in the UK and abroad.

“We are looking at how companies maintain products throughout their useful life and that can be ten, twenty, thirty year but also doing that at the right cost. So a lot of our research is on doing that,” he explains.

“So, how things work, degradation mechanisms, self-healing technology. The area I’m working in and the reason I’m interested in the aftermarket business and field service is in the application of augmented reality in training people and also getting data out into the field readily and easily.”

The application of AR in field service operations is potentially an absolutely massive game changer, he believes.

“It could de-skill the field service activity - and there will be parts of the world where you can’t get the right people. With augmented reality you can link them to a skilled technician back at base who can take them through the process, not with a manual, not on the phone but he can actually see what they are doing and he can overlay information for them, digitally point at things ‘that’s the nut, this is the one you turn. Don’t torque that one anymore than this, torque that one to this level or undo that cabinet first and make sure you disconnect this before you do that.”

 

Indeed as a tool for transmitting knowledge and experience from one corner of the globe to another it is a genuinely exciting technology that could really up the ante when it comes to improving productivity in the field.

AR: a fantastic training tool

However, it is the use of AR as a training tool that Lightfoot is truly passionate about.

“You can visualise things,” he begins when asked why it is such an important tool in future training techniques.
“They use it in chemistry teaching - you can visualise a molecule in virtual reality much more effectively than a two dimensional picture on a computer screen or in a book. Imagine augmented reality where you get a molecule and then start overlaying information for students on that and then it becomes much more meaningful. It becomes real.”

As mentioned above, whilst in many ways we are on the cusp of a glorious period for the advancement of field service with technologies such as AR and IoT begin to open up completely new ways of structuring field service operations, at the same time we are facing a crisis of unheralded proportions as huge swathes of our workforce edge ever closer to retirement age.

AR: recruitment appeal

I was interested to explore whether Lightfoot felt whether the use such bleeding edge technology such as AR could play a role in attracting and the brightest and best of the next generation away from the dominant careers of finance and law and towards the Science, Technology, Engineering and Maths (STEM) subjects that could help field service organisations cope with the sudden loss of their baby-boomer workforce.

“There is certainly more of an interest now in manufacturing in the UK generally with brighter people,” he admits. “I think for years people wouldn’t go near something like manufacturing or even science and engineering because it was too difficult and manufacturing does seem to have a bad press. Everyone wanted to be in finance not manufacturing. Now things are starting to turn a bit. The UK government has realised you can’t build a country just based on financial services.”

 

“Luckily with some of the technology emerging, like augmented reality technologies, these millennials, the guys going to university now are born into this technology. For them it’s just second nature. They tweet they send text messages at a faster speed then I can talk and so the use of that technology for them is completely there.”

Of course it is one thing attracting millennials, educating and training them is another matter entirely and if we are to harness the dynamism of this young demographic we must understand that the way they learn is fundamentally different to how their predecessors did.

As Lightfoot comments : “In our day, Google and the Internet weren’t around. If you had a project to do it was library and some really serious heavy detective work to get some information. Now the information is instantly accessible they spend the time learning rather than finding the material to learn from.”

Knowledge sharing the Millenial way

However, the biggest difference is not so much the access to information but the way information is disseminated. For a generation born into smartphones and social media, sharing and collaboration are simply parts of life. This is something Lightfoot believes Millennials can benefit from greatly.

“They’ll share with people, they’ll text somebody a message about what they’ve found, they’ll email somebody something they’ve got or they’ll send somebody a link through social media. So the technology is there for sharing, for learning quickly and for accessing information quickly. It’s incredible.”

Of course the flip side of this is whilst a generation that has such easy access to information has phenomenal opportunity to learn rapidly, there is also a danger of them being less focused. However, Lightfoot believes that the key to keeping Millennials engages is through the adoption of technology within the teaching environment.

“This is why things like virtual reality and augmented reality are so important.” He explains, “When you start using that to train them and educate them then that’s the technology they are familiar with. They’ll buy into that far more than giving them a book or standing somebody in front of them lecturing at them.”

 

“Learning via technology and these new techniques is going to feed their desire to want to learn. I picked up a study from Columbia state university on augmented reality and training and there study showed people picked things up twice as quickly when trained through augmented reality than being trained with the hardware and with a guy in front of them. Also they said they felt it was a more intuitive way of learning.”

Digitisation of knowledge bases

Given the above, Lightfoot also is a staunch advocate of ensuring the digitalisation of knowledge bases and integrating them with training programs sooner rather than later. “I think you’ve got to capture what you’ve got and make sure you retain that tacit knowledge, the knowledge learnt over the years. I recall talking to Rolls Royce many years ago about how they saved information on engine data. The problem was they saved it in different methods in different places. Spreadsheets, software, handwritten and in their heads so you must get the infrastructure right to capture knowledge from the guy in the field.”

“For example if you’re using AR to help an engineer in the field that can now be recorded. It doesn’t just disappear anymore. You can digitize the whole thing. So every time the guy speaks to someone my take would be: for God’s sake make sure it’s recorded. Once you’ve got that digitised you can share that information easily.”

You don’t tell your new engineers to go read the manual, you send him to these recordings and the trainee is happy because that’s the technology he is used to, he adds “You need them integrated, you need to make sure the knowledge capture and the knowledge sharing work together. There is nothing like learning from someone who knows what he is talking about whichever way you do it.”

And what about that $64Billion dollar question? Can millennials replace the ageing boomer workforce? Are they suited to field service engineering roles?

“Absolutely” Lightfoot states, “I think more than any other generation now because of the technology they are used to and the way are used to acquiring information. They are used to data sources and it matches quite well with the way systems have to be put together in terms of things like field service and maintenance.”

“So I think yes they are fit for the job. What we have to do is get them interested in manufacturing and technology industries so let's drive that on.”

 

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Smarter customer engagement, an interactive customer service hub and streamlined knowledge management are some of the enhancements Microsoft will introduce to its Dynamics CRM platform in 2016. Microsoft Dynamics General Manager Bill Patterson gave Field Service News Editor-in-Chief  Kris Oldland the low down on the innovations .

Having spent 2015 focusing on productivity improvements in Microsfot Dynamics, Microsoft is turning to customer service experience enhancements in 2016.  "It has probably been one of the most significant areas in innovation and investment we've been making in Microsoft," Patterson states.  "We see that organisations today are operating still like they were ten years ago. They are still trying to compete on the basis of price or on the strength of their product or service that they have for their offerings. But key data is really beginning to emerge that a lot of consumers today are largely beginning to stay with brands due to the customer experience and we see customer service playing a huge role in that realm of differentiation."

We have all been part of good customer services experiences but those that we remember oftentimes are the most extremely bad ones. What we are trying to do for enterprises today is really help them understand their customers, help them engage with their customers and help them empower their employees to really drive and centre that degree of engagement."

"While organisations may understand this dichotomy, the reality that they find themselves in today is that a lot of their tooling is dated, a lot of their systems have not been modernised to keep up with the needs of their customers and they are struggling with the proliferation and explosion of channels in the digitalisation of the service experience like never before."

Indeed,  in the modern world of the empowered consumer building a cohesive customer experience that translates across the multitude of different touch points with your organisation is critical. "This notion of digitalisation and the empowered consumer really is creating a juxtoposition with the enterprise, because the agent today is mostly dealing with technology and screens that were built for the last decade of computing."

 

This presents one of two key challenges for today's service-oriented organisations.  While the challenge to deliver the level of service excellence is spread across a growing number of channels, simultaneously there is the challenge of overcoming high employee churn rates within customer service roles which Microsoft analysis of labour statistics around the customer service role both in the US and the UK has revealed as worryingly high at around 27%. "If you think that one in four of your team is turning over every twelve months increasingly it's a really struggling proposition to keep employees engaged and empowered to ultimately to deal with customers. "

"And that meta-trend - the ability to engage with customers and to empower employees - is really what's driving Microsoft, what's driving our innovation force behind our set of releases."

With their latest roll out their Dynamics platform, Microsoft is looking to resolve these challenges with three new elements that Patterson describes as being at the centre of that employee empowerment and customer engagement problem set for an organisation. Perhaps the biggest of these changes, and one that is likely the headline grabbing development, is a complete overhaul of the user experience.

"Most CRM systems have been built over time with this notion of the relationship and relationships take time to emerge and unfold for an organisation," explains Patterson. "So it's s oftentimes that a CRM system is designed with lots of data, lots of forms and lots of views. For organisations who need to keep up with high scale but low amount of data within an interaction there was a dichotomy between the optimised user experience and the user experience we find today in most CRM systems."

"So we went back to the drawing board and back to the core of the user experience itself and designed what we think is the most productive user experience for customer service agents on the planet."

A bold statement indeed.  So what is the detail behind the hyperbole?

Interactive Service Hub

The UX Microsoft has introduced is called the interactive service hub. It has the ability to handle large screens of information, and to take a screen and easily turn it into an interaction. It's a technology that many will be familiar with in social solutions, Patterson readily admits. However bringing it into the customer service team at large to help them engage across all the digital channel - web, social email and so on - could be a very powerful tool.

"There is also a focus on building much tighter integration between what Microsoft refer to as Tier One agents (those who have to deal with the most volume) and Tier Two agents (those who have to deal with the escalations coming from the tier one team).  This could prove an important aid in increasing efficiency resulting in speedier resolutions for customers.

 

That interplay between tier one and tier two today for most organisations is where you see the highest degree of latency in closing a business operation. It is our belief that if we can bring the tier one and tier two teams together in a way that information is continuous and seamless throughout a service funnel, then we could help teams react, respond and resolve issues much easier than before.

Smarter customer engagement

2016 will see the release of what Microsoft calls smarter customer engagement.  It's an interesting concept that builds upon their own social engagement technology while addressing what is perhaps a key flaw. "What sentiment and social screens have proven is that it's a signal, a belief at a point in time but it may not get to the full unearthing of a customer perspective on things," Patterson begins. "So in addition to some advances we're making in the social engagement side we're introducing our Voice of Customer solution." This is based on some tech acquired last spring to go to the next level of voice-of-the-customer and feedback as part of the business process."

"When you combine the sentiment analytics with the enriched information on an interaction or on a survey perhaps, organisations can further understand their customers in a way that's not just only a point in time or what they might have said on a social network. The combination of these two is how we see organisations truly coming together to engage in new ways with their customers."

Knowledge capture and management

The third of the new developments particularly caught my attention as it is a tool capable of helping tackle a significant issue being faced by many, many field service companies: the challenge of capturing the knowledge, locked away in the heads of a workforce rapidly set to walk away from the business as they reach retirement age.

Again the challenge is two-fold, firstly there is the capture of this knowledge to ensure it remains in the organisation and secondly there is the need to make this knowledge easily accessible.

 

Microsoft's knowledge capture platform incorporates a WYSISYG designer to allow for simple and easy creation of content, as you'd expect, but perhaps more importantly they have also included social collaboration tools which allow companies to bring teams of people together to work in tandem on the creation of an article.

The upshot of this is that either each article becomes less disputed or you create fewer articles authored by individual experts who have distinct points of view. Either way it makes for a more streamlined approach to developing a knowledge bank and when the aim is to help deliver quicker understanding to your workforce and swifter resolution to customer problems, then quality should always trump quantity.

This is also something that Microsoft are acutely aware, says Patterson, pointing out that most knowledge management solutions have been built more as knowledge aggregators which end up taking in so much volume and so much data that agents really get lost in the cloud of information.

"Often what happens is an organisation will spend so much time indexing and not enough time thinking about the meaningful information that helps drive an interaction to a resolution.  Over time the knowledge index becomes less and less trusted by the customer service team."

"So our focus was putting the knowledge into the core hands of the agents and the experts inside an organisation who can put the right information into the hands of the customer service interaction team so it can become a more thoughtful and ambient experience for an agent."

Supported by a powerful machine learning engine, the knowledge management tool analyses the content of what an interaction is about and pro actively surfaces and pushes the right knowledge into the hands of the agent whilst they are taking the call. This ability to place focused content intelligently in the right place at the right time could hugely improve resolution times within a service centre. However, the magic doesn't end there as the system essentially continues to refine itself through each interaction.

"Once that intersection between knowledge and interaction come together that binding, that fusion if you will, actually tunes the machine learning engine even further and enriches it even further this article solves this problem," enthuses Patterson.

Each of these developments are exciting in their own right but together it looks like Microsoft Dynamics 2016 is certainly shaping up to be an impressive update to the platform.

However, when it is bundled together with Office 365, Microsoft’s productivity suite, for a cost of between £40 and £95 depending on your own configurations, this becomes a platform offering fantastic value. Long may it continue.

 

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The hyperbole around 3D printing has died down but can it be a viable tool in field service? Aberdeen Group's Aly Pinder takes a closer look

The interaction between the end customer and the field service team is changing quite rapidly.  In the not so distant past of just a few years ago, a technician was solely expected to show up on time. And that on time promise was somewhere between 8 hours and beyond.

This is no longer the environment we all live in. Customers demand answers fast, service even faster, and resolution on their schedules. The service organisation can no longer be reactive, it must have the resources, skills, and visibility to deliver when called upon. And the best service teams can be there before a problem is even detected.

This is all leading to the need for improvement in an often forgotten aspect of field service – spare parts. As noted in previous Aberdeen research, the #1 reason for a secondary truck roll is the technician doesn’t have the right part to resolve the issue.

This seemingly minor hiccup can cause any number of debilitating consequences from delayed resolution, bloated supply chains, hoarding of parts by technicians, and unsatisfied customers.

 

If this isn’t keeping you up night, be sure that your management team is beginning to recognise the enormity of this problem and will be calling you soon to wake you up.

The answer to this problem may be in the form of 3D printing technology. Now, I know this may seem like the chatter of sci-fi movies. But even right now there are some very interesting use cases of 3D printing in our B2B world. And as seen in Aberdeen’s See the Future of Field Service in 3D report, this future is not far off even for the field.

Granted only about 11% of top performers have this technology in place (as compared to even less for peers at 4%), the interest in this technology is growing quite rapidly.

The business case is simple, the cost of technicians hoarding parts to make sure they have what they need is too high and service organisations can’t afford to disappoint customers with a second truck roll because a technician didn’t happen to overstock his/ her truck with that needed part.

For business that have the following profile, 3D printing might be the way to go in the near future:[unordered_list style="bullet"]

• Mission critical field service environment – What is the cost of not fixing the problem for the customer? If downtime can result in millions of dollars lost, it is important to ensure you have the parts needed to solve the problem when the technician is scheduled and sent out.
• Parts are a revenue stream – Some companies have found that spare parts, if priced accurately, can be a lucrative revenue opportunity for the business. If this is the case, it is imperative that the organisation keep technicians from hoarding parts as this is no longer solely a cost issue.
• The cost of inventory is out of hand – Is it worth it for your business to carry parts to fix issues that may not come up that often?  Or maybe, revisions in equipment and parts happen frequently and it isn’t cost effective to carry parts which will be obsolete in just a couple of reporting quarters. 3D printing capabilities for the field team can help organisations cut down the cost of stocking low running parts and ensure the service organization can maintain its profitability goals.Place your list items here

3D printing as of today isn’t the right answer for everyone, as noted by the currently low adoption rates. But when it does make sense from a cost of deployment perspective, I think it can be a game changer in regard to the ability for the field team to always know they will have the right part to solve a customer need on the first time.

 

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It's been a long standing reply to companies seeking to put their press releases in a publication I've been working on whether it be in field service, finance, insurance or any of the other various industries i've worked in in my years in publishing...

"I'm happy to look at anything you think is news worthy" I would say "however, please try and make it something of interest, our readers aren't generally interested in whether you've moved office etc"

And then along come ServiceMax who basically did just that, however they did it in such a fantastic way with this video that I felt it was worth breaking my hard fast rule on this one occasion. Why? well not only does the video have a great sense of humour to it (which is always a sure fire way through this wizened old journalist's gruff exterior) but actually while ServiceMax hopping from one side of the great city of London to another may be the catalyst for this video, the story that lies within it is actually something that I think will be of interest to readers of fieldservicenews.com i.e. the rapid rise of a field service software provider that have gone from start-up to a leading organisation within their sector within less than a decade.

 

Understanding what has made so many field service organisations turn to ServiceMax to help them move into the standards of service expected by 21st Century customers is perhaps akey indicator into what the challenges are for field service companies and how our industry is evolving.

So for the first time in my publishing career. Ladies and gentlemen I'm here to announce ServiceMax have moved offices. Watch the film above to find out more.

 

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In this final part of our series exploring the findings of our research into field service and the potential impact of IoT we look at the key reasons driving adoption of IoT forwards….

If you missed out on the earlier features in this series you can find them at part one, part two and part three respectively

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Actual implementations

In fact we can look further within our data to help us better identify when we will see field service companies embracing IoT on a widespread level by looking at how many companies have indeed already implemented an IoT strategy and how many are currently planning to do so.

Indeed over two thirds (67%) of companies are at the very least ‘actively planning an IoT strategy’, with 15% of companies actually ‘having an IoT based system in place’ and 14% currently in ‘the process of implementing an IoT strategy or solution.’

 

This would indicate that whilst those who stated that they felt IoT was already becoming widespread may be slightly optimistic, in reality we are perhaps three to five years away from IoT becoming a truly common place tool within field service management with only just under a third of companies (32%) not currently planning to use an IoT strategy or solution as part of their field service operations.

Main reasons for adopting IoT

So what are the key drivers for what is seemingly a large appetite amongst field service companies to adopt and develop their own IoT strategies?

In fact there were three key reasons that were cited by our respondents that stood out in our findings. The largest of these was to ‘Improve customer loyalty by improving the service levels we deliver to our customers’ which 68% of our respondents identified as being a major reason for adopting an IoT strategy.

This was closely followed by ‘increasing the efficiency of a field service division’ and ‘reducing costs by moving to a more preventative service model’ which were cited by 62% and 59% respectively. Indeed these three options could be identified as the holy trinity of drivers for investment in field service technology and are quite rightly identified as key drivers regardless of the technology.

 

However, the next group of responses which again were all identified by similar amounts of respondents are perhaps much more   specific to IoT. These were ‘increasing market share by delivering proactive service before the competition’ (43%),’IoT enabling companies to change our business strategy to a servitized, outcome based solutions model’ (42%) and ‘Increasing profits by moving to a more service oriented business model.’

With a high proportion of our respondents backing each of these statements we are also seeing perhaps further evidence of the growing movement towards servitization which is of course often heavily reliant on remote monitoring that comes via the Internet of Things.

Barriers to adoption

Of course we must also explore the barriers to adopting IoT as well and here it seems clear that there are again three major concerns for field service companies looking to develop an IoT strategy.

The first is the perennial fear of twenty first century technology, security. Much like the Cloud there is a worry about being so heavily reliant on the internet especially as it becomes fully ingrained within business critical tools and 46% of respondents stated this was a major barrier to implementing an IoT strategy.

 

Tied heavily to this of course is connectivity.

Whilst for some companies fears around the security of connected devices is a worry, for many others, especially those operating in rural areas actually connecting devices to the Internet in the first place is also a significant challenge and this was flagged up by 56% of respondents.

Finally there is of course the question of the customer. Again security worries remain and 55% of companies believe that their ‘customers would be reluctant to have their devices connected sharing data.’

Conclusion

However, as mobile broadband continues to improve at a rapid pace, connectivity issues will surely subside and whilst the perception of the IoT being a security threat remains, online security is also continuously improving with the likes of Amazon Web Services and recent PTC acquisition Axeda continuing to reinforce online security.

So given that these major fears are likely to fade with time and that there is already a significant groundswell of approval for the use of IoT in field service it seems that it is now perhaps a matter of time before we stop talking about IoT as the future of field service and start seeing it as an integral element within field service operations.

Indeed, the big question for most field service companies is no longer if you will move to IoT but when and what will happen to those who get left behind?

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Oneserve, a field service management software specialist, has made the bold claim that the market they operate in is being stifled by market leaders, who they state are putting their own interests before the needs of their customers.

In an explosive press release published yesterday the UK based FSM software provider went on to comment that there is a a fundamental flaw in the industry going as far as questioning the integrity of other providers and the quality of the service they deliver to the mobile field market suggesting that “The dominating business model lacks the flexibility to adjust to the prevailing market demand, and subsequently, opens up a field of discontent.”

Established in 2010, Oneserve claim that the current market needs a complete overhaul if it is to give customers what they are actually crying out for; innovative, joined-up solutions that offer real value for money and reflect the needs of a modern field workforce. Those that can not or do not sign up to this way of thinking they assert, will be quickly become fossilised as more innovative, flexible companies take control.

A spokesman at Oneserve commented.“Many of the large players in this market have grown wildly out of control, meaning that customers are now experiencing appalling levels of service and in many cases are paying extortionate amounts for professional services that should not be needed; increasing the true cost of ownership and hindering their ability to develop and grow without assistance.

 

“There are too many of these lumbering dinosaurs in our sector. They are falling so far behind the ball in terms of where the market should, and will, be heading over the next few years that extinction seems only round the corner for them. For too long the business model of selling cheap licenses and then pushing hugely expensive professional services, has been the tried and tested method of securing sales. But this is changing, and quickly, it has to be about a true SaaS offering, a flexible approach that allows technology of different types to talk to each other and giving customers what they really want; a self-service model that allows them the freedom to utilise the solution as they see fit, without having to purchase extra services on top.

“The financial turnover of a number of these dinosaurs in this market is impressive. What should be so worrying for them and their customers is that despite this many are making huge losses. This combined with their lack of appetite or ability to change is adding to the momentum of the huge meteorite that is speeding towards them. There is no sign that this momentum is slowing down. Unless they are able to turn their business proposition upside down, which is not easy with such huge losses and multiple VCs piling on the pressure, there is a real chance that they’ll be wiped off the face of the market.”

Whilst Oneserve are clearly not afraid to pull their punches the world of field service management is indeed changing dramatically. The advances made in the technology can make a difference to the way that organisations are able to manage, monitor and analyse their field force.

However, South Coast based company believe this is in fact causing even more issues than it resolves. With so many companies in the field service management sector jumping on and over hyping new technology and trends such as ‘Internet of Things’, without putting the basics right first. Core issues that customers are crying out for, such as self-service, are largely being ignored argue Oneserve whilst adding that there are many customers who want to buy the solution and run it themselves and not be held to the whole swathe of professional services that too often accompanies any purchase in this sector.

In a closing statement to the press release Onserve concluded. “Companies need to understand and reflect the fact that the roles of a field based workforce has changed dramatically over the past few of years. Field service management can no longer be a rigid structured solution, it has to be a flexible one that embraces the many aspects of what a mobile workforce needs. The self-service approach is absolutely what customers want and need. They are no longer satisfied being tied to hugely expensive additional services, but instead want to buy the solution and grow and develop without ‘forced’ assistance.

The world has changed and a new breed of faster, more agile and innovative companies are taking the places of the out-of-date lumbering dinosaurs that have dominated our sector for so many years.

 

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The latest headline findings from our exclusive research sponsored by ClickSoftware looking at the appetite for the Cloud as a platform for field service management solutions put together in one handy infographic....

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As we continue our series discussing our recent research into IoT and Field Service sponsored by ServiceMax and PTC we look at why there is such a strong undercurrent in favour of IoT…

Missed the earlier parts of this series? Find part one here and part two here

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Belief in the power of IoT

Given then the fact that the majority of our respondents believe that IoT will be the most important technology to impact the way field service companies operate within the next five years, just how critical do companies feel that IoT will be?

Again our respondents showed a significantly positive approach to the importance of IoT when we asked them “What are your thoughts of the Internet of Things and how it can be implemented in Field Service?”

Over half (55%) of our respondents stated they thought “IoT will become a fundamental part of field service operations in the future” whilst a further 21% went further stating that “IoT is critical to any field service organisation’s strategy”.

 

The same amount of respondents (21%) stated that they felt that whilst ‘IoT is an interesting technology and I can see potential applications for it I don’t think it is ready yet.”

This means that 97% of respondents felt that they could at the very least see the potential of the Internet of Things in a field service environment compared to just 3% who stated ‘I don’t see it playing a part in our field service operations’.

Such figures indicate a truly overwhelming belief that IoT is indeed set to lie at the heart of field service as our industry continues to evolve.

Does size matter?

Of course one of the biggest challenges any emerging technology faces in terms of gaining traction and widespread adoption is whether it is accessible for companies of all sizes.

Often it is the case that when a significant new technology arrives it is cost prohibitive for those smaller companies (and often even mid-sized companies as well) to adopt. In field service this has often been negated by the fact that as well as delivering the opportunity to deliver better service for customers, very often technology in field service management can yield significant cost savings as well.

It has long been a key argument for the implementation of dynamic scheduling, tablets and smart phones and telematics for example that x implementation will have paid for itself within y months.

Of course similar arguments can be put forward for the introduction of IoT but for companies that would be looking to retrofit their assets in the field, such an implementation could have a potentially large initial outlay. So has this impacted on whether field service companies believe that IoT is a technology that could work for companies of all sizes?

We asked our respondents “do you think that IoT is more suited to larger companies or accessible to companies of all sizes?” And it seems that on the whole such challenges are not considered sizeable enough to be prohibitive for smaller companies with almost three quarters of respondents stating they ‘don’t think size matters when implementing IoT’.

 

What is particularly interesting is that when we drill down further into the data to look at responses from those representing companies with 50 engineers or less, this figure remains high at almost two thirds (65%) and in fact the number of respondents from this group who state IoT is ‘more suited to larger companies’ remains almost the same as the group as a whole (15% of respondents when looking just at smaller companies vs. 16% of the group as a whole) with a larger percentage of respondents stating they ‘don’t know’.

So it would appear that even amongst those companies with smaller field service teams, the majority believe that IoT could be suited to their business, again further reinforcing the belief that IoT will be part of the field service landscape across companies of all sizes.

When will IoT be common place?

So it seems that there is a general agreement amongst field service companies that the Internet of Things will become a staple part of field service operations. However, where opinions remain somewhat divided is when we will start to see this happen on a pervasive scale.

 

We asked our respondents “when do you think IoT will become common place within field service operations?” And the results were both varied and relatively evenly spread.

The most popular response was that in fact ‘it is already beginning to happen’ which just under a third (30%) of respondents stated. However, the second most common answer was within the next five years which just under a quarter of respondents (24%) stated. “Within the next three years” and “within the next two years” were the next highest answers with 19% and 18% opting for these responses respectively, whilst 5% felt it would happen within the next twelve months.

Of course varying factors such as industry verticals, company sizes and more will impact when we actually see a widespread adoption of IoT so perhaps such differing opinions may be expected here but what is clear is that again the majority do expect to see IoT become common place in field service. In fact just 3% of our respondents stated they ‘don’t think it will happen at all’.

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