AUTHOR ARCHIVES: Nick Frank
About the Author:
Nick Frank is co-founder and Managing Partner at Si2 Partners. He has more than 25 years international experience ranging from start-up service businesses, sales & marketing and leading transformation within large global manufacturing and technology organizations. After working as a Professional Engineer and Launch Manager at Xerox, he went on to be Director of Full Service Provider Programmes at Textron Inc and then later General Manager After-Market Sales EMEA at Husky Injection Molding Systems. Having worked as an international consultant for over six years, Nick’s focus is on service strategy development, servitization business models, ecosystems, innovation management, service operations and service business development. He works with companies in a diverse range of industries including engineering, high volume manufacturing, equipment manufacturers and technology. His expertise includes the development of strategic methodologies, initiatives, and appropriate strategic support mechanisms including technological, organizational and process redesign, as well as the delivery of service innovation and transformation, in particular how to leverage the capabilities of the Internet of Things and achieving the needs of the Circular Economy.
Jun 19, 2019 • Features • Management • future of field service • Nick Frank • Si2Partners • Trusted Advisor
Problem-solving is an essential skill set for all Trusted Advisors, yet many of us take it for granted. We assume our Technicians and Engineers must be great problem solvers because that is what they do. Most have developed ways to solve problems through on the job training and mentoring from experienced colleagues, but very few have been educated in this key professional competence – logical problem solving!
This lack of competence can cost companies considerable money and customer loyalty. You will have all experienced problems that don’t seem to go away, where teams of people seem to solve, resolve and resolve again the same issue. These are the type of problems that are complex, multifaceted and can costs companies thousands and sometimes millions of pounds.
They require a disciplined process and in truth most companies do not sufficiently support their staff in developing this critical skill set. As data analytics becomes increasingly influential in field service processes, so logical problem solving skills will become more important!
Increasingly the solutioning of known problem sets will be done through self-service, lower skilled technicians or even automated through remote services. Companies will want their skilled technicians to focus on the more complex technical issues as well as fixing the customer relationship.
How can you up the game of your technical teams, save your organisation costs and increase customer loyalty?
Best in class companies with a Trusted Advisor mindset where the goal is to continually create more value for their customers, embed in their culture a logical problem-solving wheel, which starts and finishes with the customer. This gives companies a common language and process to solve problems, which is critical to improving the skill levels of all their employees. When problems are complex, it develops a good discipline, especially around problem definition and data collection.
As the ability of service organisations to leverage advanced analytics to analyse unstructured data found in service reports becomes more widespread, so a common language becomes even more important in identifying and predicting fault patterns. There are also many tools for both analysis and solutioning that help break open the problemsolving process. Some examples from the problem analysis phase are the 5 W’s (Who, What, Why, Where, When) for situational fact finding, the 5 Why Method for root cause analysis and Fishbone diagrams, sometimes known as Ishikawa or FaultFinding Trees.
The importance of statistical skills in the future should not be underestimated, as data becomes an essential resource in the service resolution processes. Many of you will know these tools from your professional experiences and probably take them for granted as part of your work life. However, you will be surprised at how few of your colleagues really understand how to solve problems. Many will often jump to the first solution that fits the symptom’s they are seeing.
They will switch components in & out to see if the symptom goes away without really understanding the root cause. This leads to significantly higher costs in managing spare parts and many more “No fault Found” from returns reports from component suppliers.
Research by Cranfield University ‘A framework to estimate the cost of No-Fault-Found events’ published in 2016 showed examples from the Aerospace industry where NFF cost companies between one to 300 million dollars and in some cases account for up to 80% of failures. Indeed, not solving the root cause of problems has led to industries developing their own problem solving methods.
If you have worked in the automotive industry, no doubt you will have experienced the 8D problem solving process and will probably be familiar with 6 sigma methods. Those of you with the experience of large field organisations will know that service leaders such as Xerox or Vaillant make logical problem solving a core skill in which they train their whole organisations, not just their service technicians. For these organisations, just solving the technical problems is not enough.
They recognise that the art of creating customer loyalty comes from an ability for the organisation to fix the customer. Hence a critical element of any work in logical problem solving is to recognise the role of the problem solver in the process. For example, if a service technician perceives their role as ‘fixing equipment’, this is what they will focus on.
They will miss the fact that the root cause might be a lack of customer training or an external factor such as raw material quality or the operating environment. This wider view of the problem, and an understanding of the problem solvers role in the effectiveness of the process, can save companies huge amounts of cost, and deliver more value to customers.
We often refer to this mindset as being the Trusted Advisor, and it is the reason why excellence in Problem Solving is such a vital and often overlooked capability that needs to be developed. We are all aware that the ability of any organisation to effectively solve problems is critical to its success in terms of costs and customer loyalty. Leading global organisations recognise this and train their teams in logical problem solving, yet for many organisations it is a capability that is taken for granted. And in the context of forming deeper lasting relationships with customers, we also should recognise that problem solving is an essential skill set of being perceived as a Trusted Advisor.
If you would like to know more about developing Trusted Advisor programmes in your business, then you can contact Nick at nick.frank@si2partners.com.
May 20, 2019 • Features • Data • Nick Frank • digital disruption • Digitalization • Servitization • Si2Partners • Service People Matter
Over the last three years there has been a huge emphasis on the need to invest in technology to stay ahead and be the disruptor.
As many leaders struggle to move towards the enticing digital visions being painted, we have seen a more nuanced approach emerge. We perceive that leaders are switching their emphasis back to creating a solution focused culture where people have the imagination and customer focus to create and deliver new value offered by digital technologies.
In the coming years we believe we will see companies focusing on three areas in the growth journey:
1. Digital Servitization: the notion of digitising the back-office processes and enabling data capture in the product infrastructure to enable new value through services
2. Data Analytics capabilities: Turning the data into insights through being able to turn Business Problems and opportunities into Data Solutions that leverage their company unique knowledge.
3. Trusted Advisor Mindset: Having the trust of customers and the communication skills to turn intangible data into valuable actions that drive growth.
Digital Servitization
Now more than at any other time, businesses are focused on how to use shifts in technology to reduce costs and find new value propositions. But understanding how it all fits has proven more elusive to business leaders. Those that are making most progress have broken the Digital Transformation process into more meaningful chunks. They typically have two areas of focus:
1. Installed-Base Digitalisation:
Designing the products and supporting operational infrastructures that generate data, so that it can be collected, analysed and then monetized through service-based business models. Generally, investments have been made in:
- Technology that enhances the product and company infrastructure to enable Digital Support, such as remote data collection, diagnostics or predictive maintenance.
- Capabilities and technologies in the organisation that enables Data Analytics, such machine learning, visual analytics and business intelligence technologies.
2. Back-Office Digitalisation:
The tools we use to manage our business back office which sustain and improve margins /profits. Examples might be Service Management solutions, CRM and ERP. Generally, there are two aspects to consider in terms of system and process development:
- Technology that enhances the product and company infrastructure to enable Digital Support, such as remote data collection, diagnostics or predictive maintenance.
- Capabilities and technologies in the organisation that enables Data Analytics, such machine learning, visual analytics and business intelligence technologies.
Only when companies have reached a level of maturity in both Back-Office Digitalisation and Installed-Base Digitalisation, are they ready to, explore new business models such outcome based or subscription based services.
Data Analytics Capability - Business problem before Data Solution
The use of sophisticated Data Analytics technologies to gain insights into processes and product performance is slowly becoming part of management thinking. But again, progress is slow as many leaders are intimidated by the jargon and lack of understanding of the business case. We have found successful companies have followed these three steps:
1. Articulate the business problem to solve and why (Value)
Before investing in digital technologies, the most successful companies have a clear idea of the business problem to solve and the value it can potentially bring. Often there is some experimentation/prototyping that may occur to build knowledge of the business problem and confirm value. They look wider than their own business processes or customers processes, the hand-offs between the different stakeholders in their value chain. Often, they will use ecosystem analysis, the value iceberg principal or points-of-selling approaches to identify value opportunities.
2. Define the Data Problem
The next challenge is how to turn the business problem into a business data hypothesis. This would describe an expected or speculated relationship that we hope to determine through the analysis of data. For example, the hypothesis for a predictive maintenance solution might be: ‘We can identify the failure patterns for hydraulic system as well as general machine performance using pressure, oil contamination, temperature and humidity data from the PLC, such that we can predict failures and recommend corrective actions.
Why is this important? Data Scientists cannot tell you patterns that interest you without knowing the area of interest! Hence converting the business problem into a hypothesis is a key part of the process and applying the scientific method which is question led and iterative. But the hypothesis does not have to be correct.
It is very likely that it will change as more knowledge is gained about the data being analysed or definition of the business problem evolves. One must expect a certain amount of iteration from business problem to data problem as our knowledge expands, and this in turn helps deliver optimal business value. It is critical to be very clear about the business problem and the data required to understand it.
3. Pilot before Scale Up
Now that the data problem is defined, managers can understand where they may have organisational and infrastructure gaps for their project, and from this be able to identify the first steps of their roadmap to a data solution. It is important that these early steps include a pilot of the solution. The goal is to quickly understand if our solution is likely to be successful, and the actions to be taken to scale up across the organization.
"Over the last three years there has been a huge emphasis on the need to invest in technology to stay ahead..."
Often in business we take it for granted that we have all the capabilities in house. However, in today’s world, where the use of technology is rapidly evolving, it is very easy to become ‘out of date’ from both a business mindset as well as technology capability.
To help leaders understand the strengths and weaknesses, Si2 have worked with The Data Analysis Bureau to develop a short 10 minute maturity self-assessment which will you help you identify your strengths and weaknesses as you move from Business Problem to Data Solution.
There are just 10 questions and you will get personalised feedback as to your situation and what you can do. Use this link to access the assessment.
Trusted Advisor Mindset
The biggest enabler of the ‘digital’ ideas we have discussed is not so much the technology but the mindset of your people. The Trusted Advisor mindset is more than just being able to talk to the customer, solve problems and sell ideas. It is a whole attitude where we focus on solutions, continuously moving customers towards their goals whether they be internal or external.
This is the type of mindset that has leapt onto the potential offered by digitisation, long before it entered the language of today’s business. Trusted Advisors have clarity on their role and an understanding of how to talk to customers so that they achieve a WIN, WIN, WIN:
• A Win for the customer so that every conversation they have moves them closer to their goal
• A Win for the company to develop customer loyalty and profitability
• A Win for themselves so they feel great about their job
What makes a Trusted Advisor different? At the very minimum they are good customer problem solvers. What starts to differentiate them from others is their ability to have meaningful conversations with customers that always seem to move towards solutions. They are able to provide options together with the benefits for various decision the customer might make.
They normally have a high level of personal maturity in that they do not try to tell customers what to THINK. Instead they influence them by what they SAY and DO, and because they consistently deliver, customers trust their advice. As the notion of a Trusted Advisor is widely used across sales & service, the job context is extremely important.
For example, in field service and technical support the Trusted Advisor role is more about providing options than closing deals. Whereas in sales it is more about how we build rapport and credibility within a consultative selling process.
Clearly understanding the context in which the Trusted Advisor mindset is being developed is vitally important to successful adoption. Service leaders who want to improve how their teams communicate with customers, might consider having the following conversations with their own people:
• Clarify what you mean by a Trusted Advisor and the role they play in your organisation. In particular the customer needs and what makes them successful, as well as your companies business goals. This is where distinguishing the difference between selling and advising will be absolutely critical to your success;
• Develop a Mindset where every conversation we have with customers moves them a step closer to their goal. It may not be the complete solution, but it is a step in the right direction no matter how bad and uncomfortable the situation is. This very basic philosophy is key to training your people to deal with conflict, as well encourage them to have dynamic and collaborative relationships through solution orientated language;
• Provide Tools and methods that allow us to actively listen, to talk more effectively, to manage conflict and resolve difficult customer situations. These tools are critical to helping us to prepare ourselves to be a Trusted Advisor in what can be challenging and stressful situations;
• Practice in real-life scenarios with your team to see how they react under stress. We are constantly amazed at how confident many service people are about talking to customers in a training environment, yet it all falls apart in a customer situation.
• Refresh: Developing how your team interacts with customers is not a one-off event and needs to be constantly mentored and coached.
Digital People Increasingly we anticipate that Service organisations will take a more balanced approach to Digital. Yes, they will invest in the technology, but they will do so with a clearer idea of the value they are trying to capture. They will understand that the key to new business models will be to have automated their back-office processes as well as how to capture and action data from the product infrastructure. They will increasingly focus on developing a solution orientated innovative culture which is the key to leveraging the opportunities offered by new technologies and paradigms of thinking.
Nick Frank is Managing Partner at Si2 Partners. If you would like to talk more about any of the topics discussed in this article you can contact him at nick.frank@si2partners.com.
Apr 04, 2019 • Features • communications • management • Nick Frank • service excellence • Si2Partners • Customer Satisfaction and Expectations
Just because we tell our people we want them to be Trusted Advisors, does not mean they will succeed. We can give them mobile systems to escalate leads to sales, implement compensation systems and KPI’s to encourage behaviour, and provide training on service offers, but without embedding a Trusted Advisor mindset into our service teams, these efforts will be wasted.
The good news is that many of the traits of Trusted Advisors are already in the DNA of good service people. What they need is clarity on their role and an understanding of how to talk to customers so that they achieve a WIN, WIN, WIN:
• A Win for the customer so that every conversation they have moves them closer to their goal;
• A Win for the company to develop customer loyalty and profitability;
• A Win for themselves so they feel great about their job.
What makes a Trusted Advisor different? At the very minimum they are good customer problem solvers. What starts to differentiate them from others is their ability to have meaningful conversations with customers that always seem to move towards solutions. They are able to provide options together with the benefits for various decision the customer might make. They normally have a high level of personal maturity in that they do not try to tell customers what to THINK. Instead they influence them by what they SAY and DO, and because they consistently deliver, customers trust their advice.
As the notion of a Trusted Advisor is widely used across sales & service, the job context is extremely important. For example, in field service and technical support the Trusted Advisor role is more about providing options than closing deals. Whereas in sales it is more about how we build rapport and credibility within a consultative selling process. Clearly understanding the context in which the Trusted Advisor mindset is being developed is vitally important to successful adoption.
In all cases, importance of having a great conversation cannot be underestimated. Technical people can have a tendency to focus more on the narrow problem than the wider customer relationship. This can lead them to missing important data in the problem-solving process and so failing to find the route cause.
Or just as important, the company misses out on opportunities to add value to the customers business whether that be through helpful advice or the identification of commercial activities. Another challenge many technical people have is that without realising it, they can talk in a way which makes customers defensive or aggressive. For example the next time you are having a conversation, listen for the “…yes, but…”. You may notice that it is a way of saying NO, which probably pulls up really negative feelings for you the listener. The trick is to learn the language that turns these negative situations into positive outcomes.
"Technical people can focus more on the narrow problem than the wider customer relationship..."
Sales people also need good conversations, and in particular understanding the art of closing the deal without losing their rapport with the customer. This is a very different version of Trusted Advisor and it is important not to get the sales version mixed up with technical service.
Service leaders who want to improve how their teams communicate with customers, might consider having the following conversations with their own people:
Clarify what you mean by a Trusted Advisor and the role they play in your organisation. In particular the customer needs and what makes them successful, as well as your companies business goals. This is where distinguishing the difference between selling and advising will be absolutely critical to your success
Develop a Mindset where every conversation we have with customers moves them a step closer to their goal. It may not be the complete solution, but it is a step in the right direction no matter how bad and uncomfortable the situation is. This very basic philosophy is key to training your people to deal with conflict, as well encourage them to have dynamic and collaborative relationships through solution orientated language.
Provide Tools and methods that allow us to actively listen, to talk more effectively, to manage conflict and resolve difficult customer situations. These tools are critical to helping us to prepare ourselves to be a Trusted Advisor in what can be challenging and stressful situations.
Practice in real-life scenarios with your team to see how they react under stress. We are constantly amazed at how confident many service people are about talking to customers in a training environment, yet it all falls apart in a customer situation.
Refresh: Developing how your team interacts with customers is not a one-off event and needs to be constantly mentored and coached.
If you want to develop the Trusted Advisor in your teams, then in addition to processes and propositions, you will need to start to have conversations about their role in the business, the listening skills they must develop and the language to use in order to create dynamic solution orientated relationships.
If you would like to know more about developing Trusted Advisor programmes in your business, then you can contact nick at nick.frank@si2partners.com or visit the si2 website here.
Dec 27, 2018 • Features • Management • Nick Frank • field service • Service Community • Service Management • Si2 partners • Networking • Peer to peer learning • Managing the Mobile Workforce
The UK Service Community is a group of professionals who are passionate about service and believe in sharing ideas and experiences in order to improve. It is a community in the true sense of the word in that there is no legal entity, no sponsors, no...
The UK Service Community is a group of professionals who are passionate about service and believe in sharing ideas and experiences in order to improve. It is a community in the true sense of the word in that there is no legal entity, no sponsors, no sales pitch, no exchange of money.
Yes, it is free and no-one gets paid! Members give their time, their expertise or facilities so that we have the opportunity to talk, share and learn from our peers who operate in a whole range of industry sectors.
The Service Community generally has two half-day meetings per year which are generally attended by between 30-50 professionals. Recently we have been at GE Power in Stafford, the Institute of Manufacturing at Cambridge University and at Konica Minolta’s London HQ. We have had speakers from small SME’s, to the largest and best of UK industrial businesses, including buyers of Advanced Services such as the Ministry of Defence.
Generally we run the meetings from 11-4pm, including lunch, with an opportunity to listen and discuss 4-5 topics plus lots of opportunities for informal discussions with your peers. The discussions range across 5 broad areas, so there is always something of interest:
- Service Sales & Customer Success
- Operational Improvement
- Achieving Transformation & Change
- Leveraging Technology to achieve growth
- Leadership in Service
With this informality, yet access to the very best industrial thinking, the discussions run deeper and more intimate than one usually might find at networking events. To get an idea of the topics we cover and the speakers, have a look at the Service Community website on www.service-community.uk
First started in 2012 the community has grown to over 240 members, despite losing the founder of the community Steve Downton to cancer. His philosophy has been taken forward by a loose collection of service professional, including a number of senior leaders from Pitney Bowes, Elekta and Fujitsu, as well as ourselves. The membership is extremely varied across a wide range of industries and includes practitioners, consultants and solution providers.
At our next event at Renishaw new HQ near Gloucestershire, we are taking the community to a new part of the country with an agenda that will be to promote discussion through smaller groups of people to discuss common problems in the industry.
As with any community, the energy comes from its membership, so we are always interested in new ideas, or people who want to get involved.
If you believe that talking with peers is one of the best ways to improve your performance, then you can register for our next event at https://www.eventbrite.co.uk/e/uk-service-community-at-renishaw-tickets-52993610315
Or if you are interested in talking or even getting involved, please contact us at info@service-community.uk
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Nov 14, 2018 • Features • Augmented Reality • Future of FIeld Service • Knowledge Management • Nick Frank • Remote Assistance • field service • field service management • field service technology • Service Management • Si2 partners • Field Technologies • Peter Maier • Managing the Mobile Workforce
We've been asking for some time now how Augmented Reality will fill its potential as a central fulcrum within the future of field service. For Nick Frank the key is for it AR to become entwined with Knowledge Management...
We've been asking for some time now how Augmented Reality will fill its potential as a central fulcrum within the future of field service. For Nick Frank the key is for it AR to become entwined with Knowledge Management...
The English philosopher Francis Bacon once said: “Knowledge is power,” In earlier times, knowledge was usually kept to oneself for personal gain. Today, it is the sharing of knowledge that leads companies to success, especially in times of increasing digitization.
This ‘sharing’ involves collecting data, transforming it into insight and then getting it to a place where people can use it to make a difference. Benefits are only seen when the ‘knowledge chain’ is completed and any break in the chain nullifies our efforts.
So when industry commentators tell you that a particular technology is the “silver bullet” to success, it really is an oversimplification!
The problem is that knowledge is often “hidden” in the various IT systems and applications, or lost in the heads of employees who leave the business. For field service, this problem is particularly severe as the service portfolio is significantly larger than the current product offers due to longer product lifecycles and ever faster new product introductions.
On the other hand, service knowledge must be immediately available, in a distributed fashion, to achieve quick solutions and to ensure customer satisfaction. For service, we should view the challenge as being to provide customers or field technicians with that extra piece of know how that will help them solve problems more efficiently. A kind of “Augmented Knowledge” for expand it and provide it in a targeted manner. Existing information stored in different systems is merged. This can be structured data such as parts lists and unstructured information such as service tickets or service reports.
"Unstructured knowledge – text or prose – is analysed using text mining tools and integrated with the structured data. Large amounts of data can then be digitised and used intelligently..."
Unstructured knowledge – text or prose – is analysed using text mining tools and integrated with the structured data. Large amounts of data can then be digitised and used intelligently.
Urgently needed information is provided easily and quickly. Being able to network across databases makes it possible to recognize contexts, to analyze causes of failures and to create transparency. By using the system and verifying or excluding results, users continuously enrich it with expert knowledge. The current problem may already be the solution for the next user.
A classic example is finding similar cases (or problems). If an engineer is looking for the cause of a failure, the system looks for similar case and offers potential solutions.
The source for this could be the targeted evaluation of completed service cases (e.g. service tickets). By analysing which solutions were chosen by the engineer, the associated repair instructions, and confirming them as successful (or not successful, as the case may be) after the repair – the system learns through this interaction.
In fact, this process can go further and develop new insights from existing information. By visualizing and recognizing patterns, correlations can be identified, and appropriate measures initiated. For example, as part of a maintenance action or repair, the system can recommend the maintenance or repair of other elements to avoid subsequent failures that have arisen in similar situations.
But how to get that information to the point of need?
Augmented Reality (AR) technology, with its capability to supplement a real object, such as a machine or a component, with additional digital content is an ideal tool for this. It is not just the traditional approach of an expert communicating with a technician, it is extending it to ‘’smart’ databases supplying answers to questions.
"There is much to learn about the ergonomics of Augmented Knowledge and how to integrate it into people’s working lives..."
For example, in addition to the live video image on a tablet, smartphone or smart glasses, information and instructions can be augmented to the display to help solve the problem. These may be created by an expert remotely or they may be rendered as step by step instructions by the knowledge management system.
The individual steps necessary to solve the problem are now available in the form of AR annotations and can be subsequently edited and saved. This is another advantage of the AR system: The repair process gets documented and can be used again for similar cases.
So, if the engineer encounters this problem again in the future, they can reuse the annotations of the first repair without having to consult the expert. In addition, the solution is also available to all other engineers.
This saves significant time and effort. The caveat is to be able to present information to users such that they can use it. There is much to learn about the ergonomics of Augmented Knowledge and how to integrate it into people’s working lives.
This is a good example of how by turning information into transportable and analysable data (some call this digitisation of their processes), it is possible to accelerate service delivery, saving time and money for both the service provider and the user of machines.
Our experience is that by breaking down Knowledge Management and Augmented Reality into smaller pilot projects, we learn how to provide Augmented Knowledge to the Technician. Not just the technology, but actually how people brains cope with having access to this additional insight.
This may seem as bit ScFi and daunting at first, but you would be surprised how much of this you already do. Our advice is don’t look to anyone technology being pushed at you as the unique solution to your problems. You must develop your Knowledge Management, Augmented Reality and People capability in parallel.
For more information on how to start this digital journey, you can contact authors at peter.maier@si2partners.com or nick.frank@si2partners.com
Nick Frank, Managing Partner at Si2 Partners
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Aug 20, 2018 • Features • Management • AR • Augmented Reality • Connected products • Predictive maintenance • Digital Twins • field service • field service management • Service Delivery • Service Management • Si2 partners • Titos Anastassacos • Managing the Mobile Workforce
Titos Anastassacos from Si2Partners shares with us some interesting insight on Augmented Reality from their recent research-based reports...
Titos Anastassacos from Si2Partners shares with us some interesting insight on Augmented Reality from their recent research-based reports...
Technology is changing field service rapidly.
In the not too distant future Smart Connected Products will be self-diagnosing; Maintenance will become, almost exclusively, predictive; Spare parts will be 3D printed; And humans will interact at a deeper level with machines through Augmented Reality and Digital Twins, whether the machine is in the same room or on the other side of the planet.
The nature of the service business will shift from technical labour and logistics to knowledge management and exchange. Service delivery will change drastically as will the nature of competition and business models.
"The nature of the service business will shift from technical labour and logistics to knowledge management and exchange. Service delivery will change drastically as will the nature of competition and business models..."
But if the “end-state” medium term can be discerned quite clearly, getting there poses significant challenges.
So, at a Si2 Partners, we developed a series of survey-based management reports, to shine a spotlight into service businesses’ efforts to grasp the opportunities of digitization while dealing with the challenges. We then draw conclusions and recommend the best ways forward. The first report on Augmented Reality is available now, the next report on Predictive Maintenance is due by the end of the year.
The first public demonstration of AR was in 1998 during ESPN’s coverage of a football game: Generation and display of the yellow first down line. The line stayed fixed within the coordinates of the playing field. It was not physically present on the field and was visible only to the television audience.
But from that simple application, only 15 years later, Gartner was predicting that companies would be increasing their profits by over $1 billion annually -by 2017- through the application of AR in their field service business.
Things, of course, are not so simple. Reducing costs does not directly translate into increased profits.
That depends on prices and we know that digitization tends to make them drop, sometimes to zero -think of what happened to chemical photography. But even if we only consider costs, AR is clearly important, in many ways transformational, technology with a potentially very powerful impact.
So, are companies adopting AR for field service? Our survey showed that they are.
Most expect significant cost savings and productivity improvements through AR, mainly in engineering time and travel cost -and, interestingly, smaller companies are at least as much engaged with the technology as larger ones: Upfront investment can be low, and it can be implemented quickly and stand-alone (at least initially).
Importantly, it may help reduce pressure on scarce, highly qualified, and expensive engineering resources, while simultaneously improving the cost-effective support of remote customers (smaller companies are less likely to have extensive service networks).
Overall, we found that while less than 1/3 of respondents already used AR, and, of those, the majority had introduced it over the past 12 months, another third planned to introduce it over the coming 12 months. This indicates an accelerating trend.
Of course, for users, it has not been all smooth sailing. Challenges are numerous: For example, it turns out that connectivity at customer sites is a significant issue, which hampers the use of the technology. But technical problems are normal at this stage of introduction.
Far more important are managerial challenges.
For example, as always, one size does not fit all: The most commonly reported use case is field technicians receiving AR-based support by experienced engineers from a remote central hub.
"Better applications for such cases may be pooling AR-based support, providing technical information through “knowledge-libraries”..."
This may help companies with large field service workforces (possibly with high turn-over rates or fewer qualifications) supporting standardized equipment. It is not much help to vendors of highly complex equipment whose field engineers are already highly experienced and qualified themselves.
In fact, it may be even counter-productive, slowing things down or reducing acceptance.
Better applications for such cases may be pooling AR-based support, providing technical information through “knowledge-libraries”, particularly on rarely encountered problems or legacy equipment, or integrating AR with the IoT, so that operational data can provide real-time context to engineers and support for diagnostics.
However, such applications require investment in digital content, something that many AR users have often not considered, as well as a process of experimentation and development.
Another finding is that following implementation of AR, many managements don’t take the necessary action to lock-in the AR benefits by pushing through change in the support and field service processes. For example, few companies eliminate technical manuals and drawings from a field engineer’s toolbox, delaying the necessary adjustments.
And, while many companies market their AR capability to customers, few have developed AR-based offerings. Yet our survey shows that customers would welcome AR-based support if it would help to reduce costs and improve performance, notwithstanding issues of confidentiality or privacy.
The process to integrate AR into a company’s mode of operations and to maximize its benefits will, as for any new technology, be arduous and bumpy. But the impact on costs and productivity is becoming clear. Though most don’t yet formally track it, 72% of our respondents said that AR is on par with or has exceeded expectations.
Augmented Reality in Service: Ready for Prime Time? Visit the Service in Industry Hub Shop to download the flyer or purchase the report. For more information contact titos.anastassacos@si2partners.com or visit Si2Partners
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Jul 11, 2018 • Features • Management • Harold Wasserman • Nick Frank • digitalisation • Servitization • Si2 partners
Nick Frank, Si2 Partners and Harald Wasserman explore the growing conversation around digital servitization as they attempt to break down the whole challenge around digitalisation into smaller more practical actions which leaders can take to make...
Nick Frank, Si2 Partners and Harald Wasserman explore the growing conversation around digital servitization as they attempt to break down the whole challenge around digitalisation into smaller more practical actions which leaders can take to make themselves more competitive...
The increased accessibility of digital technologies is accelerating the shift from product to service led growth strategies.
The problem is that many leaders are confused by the jargon and unclear how to leverage these opportunities Intuitively they know they must do something or potentially face disruption, as they see the industrial world shifting in 3 major ways:
- The growing awareness of the importance of data and the accessibility of powerful analytics technology means that most business leaders recognise the value of data. GDPR is an excellent example of this awareness at a legislative level
- The Industrial Internet of Things has transformed how we can move data around the world
- That the role of services in industrial business is being increasingly perceived as strategic rather than tactical, as companies want to capture more value and monetise their data through Service-led business models
Successful companies starting along this ‘Digital Servitisation’ route, typically start their journey with the following three basic steps:
- Discovery: opening up their eyes to the possibilities
- Solutioning: developing and piloting tangible ideas
- Business Plan: to fund the scale up and the often associated organisation transformation
Discovery:
Understanding the potential impact of these trends on your business and developing a compelling vision is an important first step.
A mistake many companies make is to start with Technology first, creating platforms and offering services they assume the customer wants.
If they started with the customer and industry need and then worked back to how they add value through technology and know-how, they are much more likely to be successful.
The Discovery phase can be facilitated by three simple methodologies to identify the profit pools that will pay for your investments; Value Mapping your customer and industry supply chain, examining your Points of Selling in the product life-cycle, and finally a review of the data you currently create and will/can create in the future.
Solutioning:
Solutioning involves breaking the vision down into tangible projects and programmes that deliver something real.
Although understanding customers enables us to quantify the opportunities and set priorities, figuring out where to focus a Digital Servitisation strategy that flows across organisational silo’s is not so easy. One way is to see the impact from two very distinct perspectives:
1. Technology Digitalisation:
That product and supporting operational infrastructures are designed to produce data that can be collected, analysed and then monetized through service-based business models. Generally, technology is used in one of two ways:
- Technology in the product and company infrastructure that enables Digital Support, such as remote diagnostics or predictive maintenance.
- Capabilities and technologies in the organisation that enables Data Analytics, such machine learning, visual analytics and business intelligence technologies.
2. Back Office Digitalisation:
The tools we use to manage our business back-office which sustain and improve margins /profits. Examples might be Service Management solutions, CRM and ERP. Generally, there are two aspects to consider in terms of system & process development:
- To enable Customer Management, making customer data transparent and so breaking down silos.
- Enable Business Process Automation: so reducing cost and often leading to improved customer experience.
3. Combining Technology and Back-office Digitalisation:
When products and infrastructure that collect, analyse and action data, are fully integrated with the back-office process, we can explore what new business models such as Digital Servitisation can deliver in terms of value
Business plan:
Having identified the customer solutions and internal process improvements, it is time to execute and deliver the products and offering.
We require a business plan which defines Where we will target, with What, When and Who in the target organisations and How the delivery model will deliver excellence.
This is a process in its own right and one which we call Customer Focused Business Development.
It involves working through a structured approach to customer segmentation, defining the service product portfolio that is relevant to specific customer profiles, the GoTo market or sales strategy that will be most effective, and the service delivery model that drives profitability.
Learning points
Digital Servitisation does not all have to be done at once, nor is it necessarily a linear process. An agile approach in small pilots or sprints that overcome specific hurdles are a good way to drive small incremental changes towards a larger goal.
The key to success is to use cross-functional teams with a breadth of expertise and experience coupled with a logical framework to cut through complexity. In our experience, it is possible to run through these 3 phases between 3-6 months depending on the complexity and ambition of the business.
The key to success is to use cross-functional teams with a breadth of expertise and experience coupled with a logical framework to cut through complexity.
Don’t be put off by technology jargon, and if in doubt always come back to the customer value as your guiding light through the complexity of change.
Once you have developed your direction, execution of the transformation strategy is more akin to a major change programme. For more thoughts on this process, you can read our FSN articles on the Art of Driving Innovative Change and Self-learning solution-focused mindset.
If you would like to know more about how Si2’s Digital Servitisation programme can help you unlock the data and know-how of your business, then please contact us Nick Frank or Harald Wasserman who can be reached at info@si2partners.com
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Apr 23, 2018 • Features • Management • Nick Frank • Richard Cowley • Dag Gronevik • Service Leadership • Service People Matters • Service Sales • Si2 partners
With service becoming more and more integral to business strategies across the globe the role of the service leader is equally becoming increasingly crucial within successful organisations. Nick Frank, Principal Consultant and Founder of Si2 Partners
With service becoming more and more integral to business strategies across the globe the role of the service leader is equally becoming increasingly crucial within successful organisations. Nick Frank, Principal Consultant and Founder of Si2 Partners explores what makes a great Service Leader...
For Service leaders wanting to develop their talent, or companies wanting to recruit new talent, knowing the competencies required to achieve your business goals is vital.
To start, we need to define what a ‘Service Leader’ looks like, smells like and tastes like, similar to a fine cheese it is not one dimensional.
As with most things in life, what defines success is often contextual.
In defining service leadership, we have identified four relevant perspectives.
- Business Evolution;
- Service Evolution;
- Organizational Structure;
- People or the individual.
Business evolution
Businesses are constantly developing and pass through different stages such as start-up, maturity or transformation.
What we find is that many companies run into problems when their business context changes due to economic realities, and their leadership cannot adapt fast enough.
As a service leader you will consequently need to be clear on your current and future position aspiration.Successful leaders need to be able to demonstrate different competencies depending on this business context. As a service leader you will consequently need to be clear on your current and future position aspiration.
For example, if you currently work for a start-up or a business at its early stages, it will be critical for your long-term career development that you acquire a higher level of business acumen. In a larger more mature business, leaders will develop change management capabilities which are essential for business transformation.
Service evolution
The overall business context of the company drives the service evolution, inevitably putting new demands on service leadership.
Breaking this down, we observed four generic service strategy steps, which describe the journey of companies when evolving from product focus to service orientation:
- Product life cycle; Ensure equipment availability
- Product performance; Optimize performance over the lifecycle
- Process support; to help the customer in improving their business processes
- Process Outsourcing; perform processes on behalf of customers
This evolution is influenced by the mix and maturity of customer profile(s) and will impact both the breadth and depth of competence requirements.
For example, looking at how leaders deal with segmentation, a company focusing on solving product issues will segment their business by-products and geographical markets, whereas companies focusing on business outcomes will segment in terms of customer value.
Understanding the service evolution context is probably the most important area to consider when hiring/developing future service leaders.
Organisational structure
Increasingly, service organizations are being managed as a stand-alone business where companies see it as a strategic driver of growth with its own Profit & Loss responsibility. Led by a single Service leader with subordinate sub-function leaders, business acumen becomes more important than the technical knowledge of service.
The more traditional cost focused service organizations are often organized along functional lines with leaders for Field Service, Technical Support and other ‘technical’ teams.In contrast, the more traditional cost focused service organizations are often organized along functional lines with leaders for Field Service, Technical Support and other ‘technical’ teams.
Here technical expertise is more important.
The difference between the two business needs is profound. Having the wrong person in a leadership role can become a major barrier to growth. It is not that they are a poor performer, but that their skill sets and temperament have not developed to be effective to overcome a particular business challenge.
People or individual
As companies develop internal talent or search for new talent externally, Service Leaders may come from a non-technical function and/or background.
For example, Sales people are increasingly being asked to lead service organizations because of their commercial background. Alternatively, the current Service leader might only have worked within a specific organizational context such as Field Service or Digital Marketing.
The impact in both scenarios is that an individual is being moved or promoted into the position, shouldering new accountabilities with a different and/or limited traditional, service knowledge.
As service organizations become more sophisticated and require a leadership team with a diverse mix of competencies it becomes more important to be cognizant of the complementary expertise required as well as how it fits into company culture and people strategies, processes and aspirations.
Linking context to competency
Competencies are the parameters we use to describe the capabilities of people.
Within service, we have identified 30 of these competencies which can be grouped under leadership, management, personal attributes and technology (in the digital context). Successful service leadership comes from conscious adoption of these competencies to the business context and service maturity you operate in.
Coupled with a genuine understanding of your current/aspired structure, values and culture will enable leaders to create an organizational environment where people can succeedCoupled with a genuine understanding of your current/aspired structure, values and culture will enable leaders to create an organizational environment where people can succeed. So how can we use this insight when recruiting new service leaders into your teams.
One of the most powerful factors applied in the selection of competencies is undoubtedly the job/position requirements. To support this and to provide a summary overview, we found it was possible to distinguish four functional groups, Service Sales; Service Delivery; Service Excellence and Service Innovation.
Each of these groups include a complete set of relevant accountabilities.
For example, for Service Sales we include customer management, sales management, business development and product development. In total, one position should ideally include 5-8 clearly articulated and prioritized competencies.
The mix of these competencies will depend on the context we have discussed and in combination, will be used to develop job descriptions that more accurately reflect the needs of the business, rather than an intuitive perception of what the business leader thinks.
In summary
Great is defined by a number of contextual factors, therefore, the consideration of the competencies required and the weighting of each is going to be essential to be able to articulate the right job profile for a given context.
Whether you are developing the capabilities of an existing employee or hiring externally, our recommendation is to ‘go slow to go quick’, meaning take the extra time to consider your context at the outset of your search. Companies’ likelihood of finding and developing great service leaders in the B2B world will be greatly enhanced.
If you would like to know more about the competencies that define great Service leaders, than you can download our white paper by contacting the authors at dag.gronevik@servicepeoplematters.com, richard.cowley@servicepeoplematters.com or nick.frank@si2partners.com
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Feb 18, 2018 • Features • Management • Aftermarket • MAN UK • Nick Frank • Outotec • Carterpillar • digitalisation • Serco • Si2 partners • SKF
Despite huge leaps forward in technology coming at us left right and centre, the companies that will get the most from a process of digitalisation are those that keep fundamental, traditional values of putting the customer first at the core of their...
Despite huge leaps forward in technology coming at us left right and centre, the companies that will get the most from a process of digitalisation are those that keep fundamental, traditional values of putting the customer first at the core of their ethos writes Nick Frank, Managing Partner, Si2 Partners.
Those companies that are successful in implementing a digital-led growth strategy don’t bother with the jargon of the moment!
The leaders in this field start with the basics – a deep understanding of their customer’s problems and then work backwards to offer solutions that create value or reduce risk. As part of the journey, they look hard at their own DNA and take action to fill their capability shortfalls. They identify the actual data they need and then automate the data collection/analytics process to deliver scalable solutions.
Businesses starting this shift to service led growth would do well to note that successful companies do not focus on the rhetoric, but rather have an intense obsession with how to make their customers more successful. The lesson to be learned is using the latest jargon does not put you ahead of the game. Believe this and you might not realise that you are leaving your business ‘naked’ to competitive actions, just like the emperor in the children’s story.
In the last year, I have heard this same story time and time again. At the recent After Market conference in Hamburg, we heard speakers from SKF, Outotec, Caterpillar and Serco tools all starting with the customer problem, defining the customer pain map in terms of real money.
Talk to experts in machine learning or knowledge management and one hear’s exactly the same story. Start with the business problem or the KPI and then work back to the data solution. For some, this means adding services such as analytics or remote access to products to create customer value. Others go further and no longer sell a product but an outcome such as leasing a tractor unit of a truck by the mile.
In all the success stories there is a common theme. Each company is able to articulate in terms of money, why their customers should buy their solutions.
They almost all do this following what I call the Value Iceberg principal.
The cost of the product or service you provide can be clearly seen above the waterline.
However, from the customers perspective, there are many other costs within their business below the ‘waterline’. Some are easy to define such as labour, material throughput and energy. Others are much harder such as overheads or obsolescence. And then there is RISK and UNCERTAINTY that are extremely intangible and frightening when quantified, but which have a strong emotional impact on companies buying decisions.
The most profitable manufacturing companies understand the iceberg very well. By adding services to their products and creating integrated solutions, there exists a huge opportunity to capture more value that is hidden deep within the customers’ business processes. Take the truck example. The tractor unit represents maybe only 8% of the annual running costs. Below the waterline 50% of the operating costs is the fuel used, 25% the driver and profit accounts for perhaps 2-3%.
Over 20 years ago, MAN truck’s UK distributor identified this value and added maintenance services to their portfolio that were designed to reduce fuel consumption by 10% and so double the profitability of a tractor unit over the year.
Using telematics technology in the cab, they were able to manage the running costs so well, they could shift their business model to effectively lease trucks by the mile. The resulting value argument was so compelling, that over a 20-year period their business grew from £50M to 550M. The other OEM’s are now following!
For leaders of change, this deep, almost obsessive understanding of customer value, gives them the confidence to know in what businesses and technologies to invest. It allows them to understand whether customers can afford more outcome-based services and how far their business should move along the Product to Service continuum.
This value-based phenomenon is also very real when we start to look at the UK macroeconomic viewpoint. When we redefine manufacturing as a product plus associated services, a 2016 study by Cranfield University estimated this to make up 16.8% of the UK Gross Value Added(GVA) versus the traditional definition of manufacturing at 10% GVA
Perhaps this realization that our view of manufacturing is fundamentally changing, is the reason why many people focus on the digital or IR4 technologies, forgetting that these are only enablers of change. In most part, it is through services that the technologies add new value and not the other way around. But sadly many companies have yet to grasp this notion. The reality is that unless they do, many players will be left wondering why digitization and IR4 have never quite delivered on the promise!
If you would like to know more about your Value Iceberg to drive your investment priorities, then you can contact Nick at nick.frank@si2partners.com
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