Different customers have different needs. Being clear in how you meet their needs as we move into the new normal is key.

Apr 08, 2021 • Features • Digital Transformation

In the third article in this series of excerpts from a brand new white paper authored by Kris Oldland, Editor-in-Chief, Field Service News published in partnership with PTC, we explore why it is critical to understand the differing needs of our customers when identifying how remote services can enhance our service portfolio

This feature is just one short excerpt from an exclusive Field Service News White Paper published in partnership with PTC

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In an article published on Field Service News prior to the pandemic, Jan van Veen, the Founder of industry focus group MoreMomentum commented: “We need to rethink our value proposition, our target market, our position in the value chain and in the competitive landscape. We will be facing new opportunities and new risks. This requires us to be open to new thinking, new mindsets and different strategies for innovation and change.”

It is a topic that will be familiar to many field service organizations, ‘how do we define the value proposition we offer to our clients?’ On one hand, it could be argued that the value proposition remains constant, the value proposition the service provider offers is to keep the asset operational so it performs the function it was acquired for.

However, it could also be argued the depth of that value proposition may evolve slightly from one scenario to another. It could be expanded upon, for example, within a more deeply involved, outcome-based agreement where the true value of the service provides is the removal of a layer of complexity from the customers operations. Alternatively, at the most basic transactional level, the value proposition may be as simple as how quickly an issue can be resolved.

The important thing here is that for most service organisations different customers will have different requirements and preferences in how they are served. We should of course remember that ultimately, the value of our service offering is wherever and whatever the customer perceives it to be.

It is crucial we understand that rarely can a one size fits all approach be applied across an entire service portfolio.

Therefore, as we begin to identify how we can holistically weave remote service into that broader service portfolio, it is important to consider where remote service may sit in different approaches to service delivery, from the transactional break-fix right, through to outcome-based service offerings.

One popular model widely referenced is a three tiered approach to developing a service portfolio that encompasses different customer preferences. These are:

I’ll do it myself (transactional)
Do it with me (eco-system/partnership-based)
Do it for me (servitization/outcome-based)

While it is a relatively simple process to outline, the strength of this tiered approach to service delivery is that it embraces an Outside-In approach, in line with one of the most fundamental aspects of the management philosophies of Peter Drucker, regarded to be the Godfather of modern business thinking.

Again, it understands that the value of your service lies within the perception of your customer and that this will vary across different customers. As leading service consultant Nick Frank of Si2 Partners wrote back in 2014, “Industry leading companies tend to exhibit an OUTSIDE-IN approach. They actively search out their customer’s thoughts and act on them. They use more sophisticated methods to capture deeper customer insights. They are mature enough to take on-board comments, which might be negative or not fit their agenda, because listening and action are in their DNA.”

Frank’s observations ring just as true today and sit at the heart of the model mentioned above. They should also form the backbone of any evaluation of how we refine and evolve the service offerings within a portfolio.

Given that the introduction of remote service capabilities into a service portfolio can and will change many core ideas of what service delivery means, it is also a useful framework for us to explore some examples of where remote service can enhance the service offering in the eyes of the customer.

I’ll do it for myself (transactional)

Here the approach to remote service could be reasonably straight forward as the relationship between the service provider and the customer remains transactional. For the customer that wishes to stay within such an agreement, remote services would also, therefore, remain transactional. For example, if the customer has their own maintenance engineers, then access to a self help knowledge portal either on a subscription or pay-per-use basis could be effective.

Similarly, if they wanted to access expert guidance on a particular piece of maintenance or repair, expertise could be ‘dialled’ in remotely. Again a transactional pricing model could be suitable, perhaps with the level of sophistication (i.e. AR vs phone support) a factor in the pricing structure.

Indeed, if the assets are connected an additional layer of value could be added to run an analysis and optimization report on an annual or even quarterly basis to offer further advice. Again, at this level, such use of remote service elements can remain within the framework of a transactional service agreement.

Do it with me (eco-system/partnership-based)

In a more partnership-based relationship, we may begin to see the use of remote service elements not only become more sophisticated but also becoming more intrinsically woven into the pricing of the service offering as a more holistic whole. Here, we will begin to see the importance of connected assets, as a large part of the value of the service agreement for the customer is not just in keeping the assets operational, but also in maximizing output from those assets. The field service organization that can track, monitor and advise on best practices for optimal performance is one that will likely become an essential part of their customers’ broader eco-system.

One emerging suggestion of a hybrid model that will incorporate remote service into such a service portfolio is that the service provider offers a set amount of remote service calls within the contract, that are to be used as the default service approach, often supported by an effective triage to identify faults via remote diagnostics. Depending on the parameters of the contract, remote service delivery could also involve guided service calls either with the customer or a locally-based engineer, with subject matter expertise being delivered remotely.

The on-site service visit is then reserved for two primary functions, firstly to resolve any complex issues that require experienced hands on-site, and secondly, to spend time with the customer, giving them access to a subject matter expert who can advise them on how they could further optimize their operations. While this is only one example of the blending of remote and physical service, it outlines how the benefits of remote service should no longer be a standalone conversation,

Do it for me (servitization/outcome-based)

In the final strand of this model, we will now see many similarities to the ‘Do-it-with-me’ approach outlined above, the critical difference here is that the responsibility for keeping the assets running and at optimal levels now shifts firmly onto the service provider. In such a service relationship, ultimately the customer cares little for how the service provider approaches the job, simply that they do so and that they do so within the boundaries of the agreement. In many ways, the customer’s only true metric is the output.

Here, remote services are critical. It is essential that the service organization can understand the performance of both the individual asset and the fleet, to be able to accurately predict mean-time-to-failure (MTTF) and resolve the issue before it results in unplanned downtime. Again, the approach to resolution could leverage guided service calls. However, in this instance, almost certainly such calls would a) utilize a local engineer, not the customer and b) leverage Augmented Reality to allow the subject matter expert to communicate with the on-site engineer in the most effective manner possible. Also, as with the previous service model, with regards to outward pricing, the value of physical and remote service delivery, would likely be interwoven into one all encompassing price.

Of course, each of the above examples serves to offer just a brief outline of how service contracts could be developed to incorporate remote service delivery, and there will be many other models to emerge within the coming years as remote service becomes a fundamental aspect of how we approach service overall.

The key message is that if field service companies are to succesfully integrate remote services into their service portfolio having a clearly defined understanding of the various layers of service offerings has to be the first step.

With a clear vision of all service solutions within a portfolio and how these dovetail with customer needs, it is then possible to identify where remote service can improve our processes.

This feature is just one short excerpt from an exclusive Field Service News White Paper published in partnership with PTC

www.fieldservicenews.com subscribers can read the full white paper now by hitting the button below.

If you are yet to subscribe you can do so for free by hitting the button and registering for our complimentary subscription tier FSN Standard on a dedicated page that provides you instant access to this white paper PLUS you will also be able to access our monthly selection of premium resources as soo as you are registered.