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In the Big Discussion, we will take one topic, bring together three leading experts on that topic and put three key questions to them to help us better understand its potential impact on the field service sector...

This issue our topic is the what to expect in 2018 and our experts are Michael Blumberg, Blumberg Advisory, Bill Pollock, Strategies for GrowthSM and Jan Van Veen, moreMomentum

The first question we tackled was What is the biggest challenge facing field service companies in the next 12 months?

Now let's turn to the second question in the discussion...

What is the biggest opportunity facing field service companies in the next 12 months?

Bill Pollock: The biggest opportunity facing field service companies today is the ability to compete head-to-head with any of their main competitors – however large or small – through the implementation and/or upgrade to a Cloud-based Field Service Management (FSM) solution. Over the past several years, Cloud technology has normalized the playing field for both FSM solution providers and their customers, who are no longer encumbered by the cost and complexity of their legacy premise-based solutions and applications.

Advances in technology are also giving a boost to those field service companies that have embraced these new technologies. For example, the greatest opportunities over the next 12 months will most likely be realised by those companies that will have already implemented Augmented Reality (AR) and/or Merged Reality (MR) into their field service operations. However, the most likely dominant field service organisations will be the ones that have also taken steps to explore the benefits of moving to an Artificial Intelligence- (AI) and Machine Learning- (ML) driven field service solution.

The technology is already there for every field service company; however, only those that embrace – and implement – these technologies will actually be able to reap the benefits.

 

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Jan Van Veen:  When talking about the biggest opportunities, I think we need to look beyond 12 months. It is mission critical to act now on future success.

Most industries are somewhere around the top of the life cycle and are facing (first signs of) commoditization.

The big opportunity for them is to go through the next life cycle where the added value is about enhancing the use of technology. The new value propositions will be heavily driven by data, algorithms and intelligence. The value will be far beyond predictive maintenance and uptime of technology.

This is a domain in which young, rapidly growing data-driven companies are in their comfort zone. So, the opportunity here is moving up the food chain and increase relevance for clients. By failing to pursue these opportunities, the threat is being forced down in the food chain and seeing other players deliver the high value, whilst seeing your role being limited to manufacturing equipment, spare parts and, to some extent, delivering low skilled hands-on machines for maintenance.

For those companies who are not ready to focus on these opportunities, I think your top priority should be to build the missing foundation and make sure you are ready to pursue the opportunities soon.

 

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Michael Blumberg: The biggest opportunity facing field service companies in the next 12 months lies in pursuing strategies that will advance their journey along the path toward servitization.

The specific strategies vary from company to company based on where they are on their journey. For some companies, 2018 will be the year when they finally transition their field service operation from a cost centre to a profit centre. For others, the opportunity lies in monetizing service offerings and effectively marketing and selling service outcomes.

Still, others will have the opportunity to invest in digital technologies that enhance service quality, boost productivity, and create an uber-like experience for their customers.

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Manuel Grenacher, CEO Coresystems, explores the major trends that he expects to impact field service companies across 2018...

While 2017 introduced innovative new technology-based trends with the likes of artificial intelligence (AI) and augmented reality (AR), 2018 will bring real-world applications that put those buzzwords into practice. Here are the top trends we see this coming year.

The IoT will drive more proactive device maintenance, service and repair

In 2016, Gartner, Inc. forecasted that 8.4 billion connected things will be in use worldwide in 2017, with 5.5 million new devices being connected every day. The vast majority of today’s devices and machines come equipped with sensors, which transmit signals, status updates and warnings.

Field service innovators are finding ways to use the IoT and increased connectivity to their advantageThese alerts not only allow people to address problems proactively but also accelerate expectations around service time. The alerts notify users the moment their device needs maintenance or repair, which immediately puts the technician on the clock to resolve the issue. Challenges such as long response wait time and excessive appointment windows already plague the field service industry, so the IoT threatens to exacerbate these existing issues.

However, field service innovators are finding ways to use the IoT and increased connectivity to their advantage. In 2018, further innovation in the field technology space will enable technicians to take advantage of the IoT’s increased connectivity and automation in today’s devices, enabling them to provide service in real time to meet and exceed customer expectations.

Artificial intelligence will simplify and automate service appointments

2018 will focus on not the adoption of AI, but the implementation of it in real use cases. One industry that stands to greatly benefit from AI is customer service, particularly field service. Gartner forecasts that 85 percent of customer relationships will be through AI-powered services by the year 2020.

AI technology will make strides in streamlining the customer experienceIn 2018, AI technology will make strides in streamlining the customer experience. Chatbots will troubleshoot issues with customers, determining all necessary information before dispatching a technician. Powered by machine learning, chatbots will understand if a customer needs assistance in resolving an issue or wants more information about a certain piece of equipment. Logistic regression capabilities will enable chatbots to walk customers through equipment problems step by step.

AI will also automate the technician’s workflow. One of the biggest pain points in customer service – particularly field service – is dispatch time. To combat this, heuristic search functions in AI technology will determine which technicians are not only available but also knowledgeable enough to properly service the request. AI will also consolidate relevant customer details – from device history and prior appointments to technicians who are qualified and available to resolve an issue – to ensure customers receive the most efficient and painless experience possible.

Augmented reality will provide unprecedented visibility into worksites

Augmented reality enhances the way we see, hear and feel by bringing elements of the virtual world into the real world. Many people associate augmented and virtual reality with the gaming industry, but the technology offers far more than entertainment for a niche group. Industry forecasters predict that by 2020 the market for AR will reach $100 billion in value.

The increased connectivity that the IoT brings will continue to propel the application of AR in the field service sector. The increased connectivity that the IoT brings will continue to propel the application of AR in the field service sector. Using standard mobile devices and AR glasses, service technicians are finding unique ways to approach service. AR applications that allow technicians to look into machines without disassembling them have proven enormously helpful for pinpointing malfunctioning parts. Also, the ability to share data from onsite with offsite experts allows for a more collaborative approach to finding solutions. And this capacity to share knowledge and access an endless stream of information is increasing the first-time-fix rate and thereby improving the customer experience.

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UK based non-profit knowledge sharing group the Service Community which Field Service News is proud to partner with has recently announced one of the most diverse events they have organised in the last couple of years.

The next Service Community event will be hosted by the Cambridge Service Alliance at the Institute for Manufacturing (a division of the University of Cambridge’s Department of Engineering) on the 19th April 2018.

Being at one of the world’s leading service research organisations means that we hope to mix the very best in thought leadership, with practical hands-on experiences of transforming service businesses. Each discussion will be approximately 40 mins enabling you to discuss real issues with real people.  We are also very lucky to have a The Digital Manufacturing Tour, where you will have a chance to hear about the research initiatives that the IfM are undertaking on digitalisation in manufacturing.

In addition to a speaker from the CSA, we have leaders from MARS, Oracle and Fujifilm joining us to discuss and share experiences on how they have tackled some of their key service business challenges.

How to register

You can reserve your place by sending an email to info@service-community.uk. We will then contact you to confirm registration and will send out the joining instructions nearer to the event.

Please feel free to forward this information to colleagues who you think would be interested. We look forward to seeing you in April

Agenda for the 19th April 2018

12.00 - 13.00: Meet at the Institute of Manufacturing at Cambridge University
13.00: Nick Frank: Welcome

The Impact of Big Data and Machine Learning technologies on developing Customer Experience in manufacturing companies Dr Mohamed Zaki: Deputy Director of the Cambridge Service Alliance will introduce the work the Cambridge Service Alliance does and share recent research he has undertaken into Customer Experience development

Leading Service to a Trusted Advisor Culture:  Ashley Weller: UK Service Director at Mars drinks will share his own journey in driving sustainable cultural change

The Digital Manufacturing Tour

Coffee & Networking break

Real World Challenges of implementing Augmented Reality in Field Service Adil Kabel: Technical Support Manager, at Fuji Film responsible for EMEA 2nd line support for Wide Format Digital Printers will share his experiences of running two pilot projects in the Field Service organisation looking at 'glasses' and handheld augmented reality apps

Benefits and Challenges of Self Service models - Stephen Darkes Snr Process Analyst: Global Systems Remote Support at Oracle: Steve will give us some insights into the different Self-Service support models that Oracle have introduced to enhance customer satisfaction and make their business more cost-effective.  He will cover a range of models, from the use of community forums for Diagnosis and Resolution to the development of Customer Replaceable Units for hardware.  He will share his experiences of the range of benefits that self-service brings, as well as the challenges of implementation.  Many businesses can make their customer support more effective through self-service business models.

17.00 Networking Drinks

Reserve your place by sending an email to info@service-community.uk. We will then contact you to confirm registration and will send out the joining instructions nearer to the event.

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The digital revolution in the field service sector is continuing to move forward at pace, Michael Blumberg, Principal Consultant, Blumberg Advisory Group helps us keep track...

It seems that there is no escaping the Digital Transformation Revolution in Field Service at this moment. A splendid example of this is the Servitization of Manufacturing. Servitization is about the journey a company goes through as it transforms from a product-centric company where service is an afterthought or a necessary evil to one that generates a sizable portion of revenue from services; where service is the business.  The ultimate example is a Product as a Service business.

This is sort of the razor and razor blade scenario where the manufacturer gives away the razor in exchange for the recurring revenue stream that comes from purchasing the razor blades.  Instead of razor blades, it services or more specifically, outcome-based services.  For example, paying for the usage or result (e.g., outcome) produced by a product instead of buying the actual product.   To deliver on the promise, the provider of this outcome most implement a broad array of digital technologies to ensure the equipment is up and running whenever the customer needs to access it.  Downtime is problematic so you need to have technologies like IoT, AI, AR, etc. to ensure this high uptime.

In parallel to the servitization trend is the general ethos that businesses need to disrupt or be disruptedIn parallel to the servitization trend is the general ethos that businesses need to disrupt or be disrupted.  Uber has become the poster child for disruption.  This has lead many Field Service Organizations, software vendors, and technology providers to promote the concept of “Uberization” within field service.

Let’s put the term Uberization into context, when I hear the term Uberization, I think of providing customers with real-time, on-demand, always on, always connected solution.  Other terms that people associate with Uberization are agility and frictionless.  Agility is the ability to scale quickly, frictionless is where touch points that would delay the time it takes to complete a transaction are eliminated.  We might also think of a solution that incorporates aspects of the sharing economy or gig economy.

The Field Service Industry is far from being a laggard when it comes to Uberization.  Examples of how Field Service Organizations (FSOs) are achieving this outcome include but are not limited to:

• Utilizing IoT to monitor equipment performance and send notifications and alerts about the condition and performance of the machine
• Leveraging Artificial Intelligence to interpret these notifications, identify and diagnose problems, and take corrective actions
• Transmitting dispatch orders, triggered by IoT alerts, electronically to an ERP or CRM system and using Dynamic Scheduling software functionality to assign the right person for the job based on the needs of the job
• Turning to a freelance management system platform to source and dispatch freelance technicians on-demand to scale to capacity during peak periods
• Using Augmented Reality, Virtual Reality, or Mixed Reality to provide less experienced field engineers with expertise they need to resolve technical problems they haven’t encountered before
• Relying on Big Data and analytics to optimize resource planning and allocation issues.[/unordered_list]

If FSOs are going to remain relevant and create value for their customers, their leaders must adapt and grow within the context of the trends identified above.   This motivation is required now more than ever.  Technological development and new business models are coming at such as rapid pace that leaders can afford to rest on their laurels or past successes of their company.  Past success does not guarantee future results!

In this digital age, companies must be faster, stronger and better than their competitorsIn this digital age, companies must be faster, stronger and better than their competitors.  A 5-year strategy is typically out of date within 18 months or less.  To survive and thrive in 2018, Field Service Leaders must have a crystal-clear vision about the outcomes they’d like to achieve within their organizations. They must pursue these outcomes with laser-like focus and adopt a sense of urgency about achieving these results.

Accountability to the mission is critical as is a mindset of certainty and a spirit of resourcefulness.

Quite often, the greatest of strategies and best of intentions are not pursued because of a lack of certainty or a perceived lack of resources.  The truth is that those who overcome enormous challenges and achieve phenomenal results have done so because of their determination (i.e., certainty) and their resourcefulness.   Cultivate these traits and the possibilities are endless.

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Michael Blumberg, President Blumberg Advisory Group explains why Augmented Reality will be at the core of field service in the not too distant future giving examples of three companies that have already embraced this game-changing tech...

Want to know more? You’ll find a white paper on this topic @ fs-ne.ws/7Q9230fLKu7

If your Field Service Organization (FSO) is not using some form of remote telepresence or video collaboration tool today like Augmented Reality (AR) or Virtual Reality (VR), chances are you will be in the future.

There are many compelling data points and trends that support this prognosis. First, a recent study by Salesforce.com reports that 92% of service executives indicated they need to transform their service models to keep up with consumer needs.

Second, according to Aberdeen Group, Best in Class field service organizations are 72% more likely than their peers to utilize visual collaboration tools (e.g., AR/VR). It is only a matter of time before other companies follow suit. Third, end-customers have begun to expect this type of service experience. Indeed, 84% of millennial customers have used a self-service portal for customer service. The immersive nature of AR/VR apps makes it the ultimate self-service experience.

Customer demand is obviously a critical factor driving the proliferation of AR/VR applications in the field service industry.

Fueling the demand for AR/VR technology is the fact that it is both relevant and effective within a broad array of industry segments and use casesAs a result, the use of collaboration tools like AR will become the standard by which customers evaluate and measure field service performance. Fueling the demand for AR/VR technology is the fact that it is both relevant and effective within a broad array of industry segments and use cases.

Indeed, it is difficult to find any technology segments where AR/VR does not have practical value. In fact, any technology that is comprised of electronic, electro-mechanical (e.g., pneumatic, hydraulic, etc.) or electrical components can benefit from AR/VR enabled service and support.

Another factor driving demand is the fact that early adopters are achieving measurable results from the deployment of AR/VR pilot projects. For example:

Siemens Industrial Turbomachinery is exploring AR and VR solutions to increase both field service utilisation and productivity while reducing travel expenditures. AR would enable the company to send technicians who communicate with remote experts, thus reducing the total number of man-hours on site as well as travel costs.

Bombardier, a provider of propulsion and control equipment for trains, was able to make significant savings, per service event every time they utilized AR to resolve technical issues remotely.

Bosch Rexroth, a manufacturer of hydraulic drive systems, spent every year in Sweden alone a lot of travelling time to go to customer’s sites to inspect what problem or question the customer had prior to deploying AR. The company now offers its customers the option of purchasing support hours to their value-added service offering that utilizes AR to deliver remote support. The collaborative and visual aspects of this technology are far more effective than telephone support. As a result, Bosch Rexroth is now able to provide quicker uptime to customers while generating a profitable income stream.

The technology industry, of which field service is a subset, is already considered to be the biggest economic driver of ARIn the coming years, we are likely to see an exponential growth of AR in the field service industry. In fact, the technology industry, of which field service is a subset, is already considered to be the biggest economic driver of AR. Furthermore, industry forecasters anticipate that expenditures on AR technology will exceed $100 million by 2020.

While we are likely to see new developments in AR/VR feature functionality, this technology will be deployed in one of two environments:

1. In support of an existing installed base of equipment
2. Embedded in the design of new products

We are also likely to find different versions of AR deployed in the field. For example, certain service environments, like Oil & Gas or Utilities, may require that AR applications be integrated with rugged wearable devices to deliver a hands-free environment, whereas non-rugged wearable devices or smartphones/tablets may be more than sufficient in enabling a collaborative experience in markets like IT or Telecom.

As technology improves it is very likely that consumers will purchase AR for business use in much the same way they purchase their own laptops and smartphones for similar business use. It is also quite possible that “Bring Your Own Device” (BYOD) will apply to AR as well.

This will completely change the paradigm of service support and break down barriers to finding and hiring talent, which in turn will continue to facilitate the use of freelance technicians. Regardless of future possibilities, these potential developments should not stop FSOs from investing in AR and reaping the benefits today.

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It’s been a whirlwind year in terms of technology development impacting the field service sector and the breakneck pace of development shows no signs of slowing down anytime soon. Manuel Grenacher, CEO, Coresystems takes stock of the rapid technological advances we’ve seen across the last twelve months and outlines what we can expect in 2018...

Just as automation gave rise to more advanced machines over the past decade, so too has field services evolved.

The analog process of collecting and sharing information about customers and devices has now become automated, and in some cases completely digitalised. Service executives are continuously pushing the envelope of what’s possible with field service management software, and 2017 was a great example of that drive towards innovation.

As discussed previously, the growth of the Internet of Things and its real-time connectivity has led to a massive spike in consumer expectations for instantaneous customer service. As a result, organisations have been forced to rethink their customer service delivery strategies, including their workforce resources and supporting technologies.

In field service, we see a future in which for-hire field service technicians can connect This year, pioneering companies (for example, Airbnb) have continued to lay a blueprint for other industries to follow using a gig economy model. In field service, we see a future in which for-hire field service technicians can connect – through technology tuned for the gig economy – to organisations that need extra manpower for their field service teams.

At Coresystems, we understand the challenges organizations face when field service requests greatly outnumber that company’s field service technicians. By leveraging independent workers in the gig economy, organisations can deliver the real-time service that customers now demand. By introducing technology that enables the crowdsourcing of field service to independent, for-hire field service technicians, FSM software providers can help their customers find those field service technicians anywhere and anytime. This would check organisations’ critical box of providing real-time customer service.

In 2017, virtual and augmented reality (AR) technologies became more prevalent in many industry sectors, including field service.

There’s a huge market opportunity for organisations looking to enhance their field service businesses with these technologies – and you can find more on that here. Essentially, a specialised AR headset would boost the first-time fix rates and average repair time by allowing technicians to view, search and digest any information they need for an installation and/or repair on a heads-up display (think manuals, checklists and more).

AR would also connect on-site technicians with more experienced engineers back at HQ, who can visually supervise and troubleshoot more difficult technical issues, thus benefiting staff training and mitigating skills shortages.

Looking ahead to 2018, we believe the customer touchpoint will become a point of focus. Put simply, customer touchpoints are the various ways in which a customer encounters your company and products. This can be before, during or after purchase, and can be through social media, your online help center or word-of-mouth conversations.

Rather than selling a new machine through traditional methods, we’ll see companies handle the customer touchpoint better and more effectively Amazon Alexa and Google Home, for example, are perfect illustrations of successful customer touchpoints: they can meet their customers’ demands quicker than others because they understand their customers better, thanks to the use of smart home devices.

Alexa already knows which brand of water you prefer, and how many bottles you usually order, and with a short command you can place your order and have it on your doorstep within hours.

In contrast, in a traditional retail setting you need to go through several clicks to begin the delivery process.

To translate that to field service, rather than selling a new machine through traditional methods, we’ll see companies handle the customer touchpoint better and more effectively. For many companies, service is considered last. In my mind, that’s backwards – it should come first. Before you start digitising machines, you should think about how to digitise the service.

The evolution of technology has propelled us into the age of digital transformation, and it’s fundamentally changed the way we interact with technology and even the way technology interacts with itself. That shift will continue in 2018, at least in field service, with innovations such as crowd service platforms and AR headsets gaining further traction.

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What will the impact of servitization and the move to preventative maintenance that it entails have on parts and inventory management? Erik Kjellstrom, Pre-Sales Manager, Syncron tackled this question at the Aftermarket Conference in Hamburg last October. Kris Oldland followed up with him after the event to find out more more...

As Erik Kjellstrom, Pre-Sales Manager, Syncron, stepped down from the stage having just given a presentation at this year’s Aftermarket Conference, I was looking forward to the opportunity to catch up with him for a number of reasons.

His organisation has been something of an anomaly in our sector of recent years. A pioneering lone voice that often were seemingly single-handedly trying to bring a dedicated solution to what was often the unloved piece of the field service puzzle – parts management.

Whether, it be pricing, inventory management or stock ordering, Syncron have successfully over the last few years been one of few brands to be associated with taking this part of the aftermarket conversation seriously. We’ve seen Syncron a lot at various conferences over the last 24 months and almost each time they’ve been armed with case studies and hard data that revealed just how much (and how easily) their solution has improved their clients P&L both in terms of top line revenue and bottom line profit.

However, this time around there was a twist to their approach. Having recently brought a new in module into their offering that is focused on predictive maintenance and based on IoT, were they shifting their focus - or was this development just a natural evolution that reflected the changing dynamics of the industry?

The central thrust of Kjellstrom’s presentation was that essentially there are a number of interesting trends appearing in the aftermarket industry – covering a lot of the ground that regular readers of Field Service News will be familiar with.

We are seeing futuristic concepts such as Drones, 3D Printing, Augmented Reality and Autonomous Vehicles all of which have all been on the horizon offering the promise of industry revolution for a while but are now really starting to come into the mainstream conversationTo begin with, coming from the technology perspective we are seeing futuristic concepts such as Drones, 3D Printing, Augmented Reality and Autonomous Vehicles all of which have all been on the horizon offering the promise of industry revolution for a while but are now really starting to come into the mainstream conversation. Alongside this with have already seen wide adoption of Mobile, Cloud and increasingly the Internet of Things amongst manufacturers and service providers.

However, the changes we are seeing in our sector are not just driven by technology alone.

Sweeping demographic change within the workforce, accelerated by the ageing workforce crisis being faced by companies across the globe and being exacerbated by the unprecedented differences between the incoming Millennial generation and the outgoing Baby Boomers, is of course another factor driving industry evolution forwards.

Finally, add into this mix our shift to a much more service and outcome orientated society as a whole - arguably itself the result of the generational shift alongside the technical advances referenced above and we are seeing companies turn their entire business models on their head.

Servitization has gone from fringe concept to buzzword across the last eighteen months or so as talk of ever decreasing SLAs and increasing First-Time-Fix rates has morphed into discussions around guarantees of uptime and the financial impact of unplanned downtime.

As such our industry is in a fascinating and exciting state of flux at the moment and it was this rapid development and the various drivers behind it that were at the heart of the Kjellstrom presentation in Hamburg.

Of course, such dynamic changes within the sector need to be reflected within the solutions provided and it is the shift towards preventative maintenance (itself a major stepping stone on the way to servitization) that Syncron have focused their latest efforts on.

“We have been working very much to support more reactive service models in the past in terms of inventory management and pricing but what we are now doing, both from a product stand point but also from a service offering standpoint, is we are working towards an uptime supporting module.” Kjellstrom explained when we caught up.

In brief, Syncron are integrating a new module into their current service network optimisation capabilities.

These capabilities in the past had all been centred on the parts management area of the Aftermarket sector – pricing, inventory management, and ordering. However, their new module is a predictive maintenance module they call Uptime (makes sense), which Kjellstrom explains is intended to ‘blend together the aspect of inventory management and pricing etc with an understanding of the actual assets that use these parts.

It seems a natural alignment to bring the asset and the parts management together in the preventative management worldIt seems a natural alignment to bring the asset and the parts management together in the preventative management world. Indeed, much of reasoning behind this development from Syncron echoes a similar line of conversation that ServiceMax put forward when they announced their integration with GE Digital’s technology Asset Performance Management (APM).

Essentially both Syncron and ServiceMax are approaching the same central maxim - just from two different angles. In a world of IoT and sensor-led preventative maintenance the asset is King and everything else should fall in line around and work back from that one premise.

However, where one does feel that viewpoints will change between the two organisations is in how the ecosystem is built. Through their recent acquisition list including Servicemax, it is clear that GE Digital have their eyes set on building a comprehensive and all encompassing new platform for age of the Industrial Internet.

For Syncron however, the focus for the time being at least, appears to be in line with their best-of-breed heritage.

“I think that a product such as ours and a Field Service Management (FSM) system are complimentary products.” Kjellstrom explains.

“We have many instances where we will see a FSM system or a maintenance system that runs in compliment to the more Aftermarket focussed, parts oriented solutions such as ours. Perhaps what makes Syncron a little bit unique is the way we work and how we blend together the aspects of network optimisation and parts optimisation which is often natively something that belongs in a FSM tool.”

With so many technologies evolving at once a clear case could be made for establishing a comprehensive technology ecosystem across a service orientated business and Syncron is set to be an important part of that ecosystem.

Yet, in a world that seems to be in constant Beta, not all developments are equal and Kjellstrom believes it is important to understand how different technologies can impact the way we work when building out your own tech strategy.

Certain technologies will bring refinement whilst others offer revolution.

“We definitely see more potential impact from some types of the technologies than others,” he comments.

“What we are really interested in are the questions like will 3D printing totally replace a need for service part inventory management – and the answer is no it will not, it may enhance it but it will not replace it.”

Does the development of autonomous vehicles mean that we will begin to see car sharing across a team of engineers“How about autonomous vehicles? Does the development of autonomous vehicles mean that we will begin to see car sharing across a team of engineers” he asks rhetorically before outlining that such technology could lead to servitizing the fleet at which point automotive manufacturers concerns about spare parts really begin to truly change and evolve into an entirely new set of thinking and processes.

“These are the types of questions that we are interested in, in terms of the emerging technology.” He explains.

“What we are seeing is that some of these new technologies are really pushing towards a more uptime related world, whereas some technologies are more likely to become tools for us to simply improve existing processes.”

However, whilst he believes the shift to Servitization and outcome based solutions will continue to grow, Kjellstrom also insists that the traditional break-fix market and the aspects of pricing, parts management and inventory which that function drives forward, will never fully disappear.

“I am sure that the shift in focuses to uptime guarantees are growing rapidly and eventually break-fix is going to become less significant but there is always going to be the type of customers where uptime critical assets are not relevant.”

Indeed, whilst we wait for the weighting between the old and the new to do a 180 flip, one thing is clear, for the short-term at least we need to be able to accommodate both – which means looking to the future today – something Kjellstrom and his colleagues have embraced which is clearly evident by their introduction of the new Uptime module.

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Having explored some of the ground breaking new tools being used in field service including crowd service and Augmented Reality in his recent articles, Manuel Grenacher, CEO Coresystems now explores how video assistance can be used to great effect in improving field service delivery...

The outlook for the growth of the field service market is hugely positive, with predictions noting the field service industry will nearly triple in size to $5.11 billion by 2020.

Following on from my previous articles in Field Service News, several modern technologies are playing a major role in driving that exponential growth, including the Internet of Things (IoT) and augmented reality (AR) solutions. Another trend – or rather an overarching one that IoT and AR innovations both tie into – is the rising importance of video.

In addition to AR, as well as artificial intelligence (AI) and virtual reality (VR), new tools are emerging that make it possible to more directly involve service technicians, specialists and experts in field service operations, even if they are not on site.

Any provider of field services understands the frustration of having to comprehend a complex problem without a proper visual perspective of the issue at hand. Any provider of field services understands the frustration of having to comprehend a complex problem without a proper visual perspective of the issue at hand. With a verbal description (and perhaps an attempt to recreate strange sounds emanating from a malfunctioning device), a service technician is expected to diagnose the problem and magically offer tips on how to repair it.

When information cannot be transferred and made accessible to field service technicians on-the-go, this limits their ability to offer first-time fixes. With the rapidly increasing pace our lifestyles, consumption habits and mindsets, this is an issue because we are expected to be quicker, connected and digitalized.

The consequence is dissatisfied customers who face lost revenue due to extended system downtime.

Video assistance uses the tools available – like mobile devices – to provide images of devices in need of repair or even virtual spaces where service technicians can congregate to solve an issue. Companies can minimize errors, increase efficiency and speed up field services by, for example, uploading instructional videos and manuals and checklists for facilitating repairs.

Field service technicians can refer to these guides if they are unable to solve a problem on their own. This is a real help for service technicians who might be less familiar at repairing unique problems.

In addition to the growing complexity of service offerings, the aging workforce is one of the top challenges within the field service industry, according to the Aberdeen Group.

As this highly skilled workforce approaches retirement age, service managers are now faced with the risk of losing a vast source of knowledge that will be difficult, if not impossible, to replace.

Modern video tools would make it possible for seasoned service technicians to play an active role in the company while also determining their own schedules.That is because these service technicians have not only gone through years of training but have also acquired immeasurable experience on the job – and this is experience that can often only be amassed firsthand and on site with clients.

Modern video tools would make it possible for seasoned service technicians to play an active role in the company while also determining their own schedules. This would ensure that their valuable expertise and know-how is available to a new and novice pool of service technicians.

Moving towards video is relatively simple and cost-effective to apply, and promises increased customer satisfaction, higher revenues, lower costs and overall maximized efficiency. Given video’s integral role in our day-to day activities (YouTube, Skype, Snapchat, Facebook Live and other media), it is surprising that more companies offering field services have not yet integrated video technology into their business models. Surely a tool as ubiquitous as video – connecting people, providing access to endless information and entertainment – is a vital tool for providing more effective service.

Video-connected field service technicians have access to a vast wealth of information, which could help them find answers to complex questions or seek out expert advice from colleagues.

These tools also facilitate communication and collaboration across the entire company, which means field service technicians have access to real-time updates.

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Michael Blumberg, President Blumberg Advisory Group gives us some insight into his recent conversations at Field Service Fall in Florida last month, where Augmented Reality was once again one of the hot topics of the conference...

I recently attended WBR’s Field Service Fall 2017 conference in Amelia Island, Florida where there was a lot of buzz among participants about Augmented Reality and Virtual Telepresence. Many industry experts, observers, and practitioners believe that these technologies will have a dramatic impact on field service delivery in terms of shortening resolution times, improving first time fix rate, and reducing travel costs.

In my discussions with conference attendees, I concluded that Field service leaders face several challenges when it comes to making investments in modern technologies like Augmented Reality (AR) and Virtual Reality (VR). One obvious challenge lies in determining whether the investment is currently a priority.

To answer this question, they need to have a clear understanding about what problems they are trying to solve and what results they are trying to achieve through it.

The best way to answer these questions is to develop a use-case justification based on the Key Performance Indicators (KPIs) that are improved through the deployment of these technologies.

The second biggest challenge has to with the confusion that exists among field service leaders with regard to alternative and/or competing platforms, for example, AR versus VR. . By definition, VR offers a digital recreation of a real life (or fantasy world) setting, while AR delivers virtual elements as an overlay to the real world. There is also Mixed Reality (MR) where we see a merging of real and virtual worlds to produce a new environment and visual image where physical and digital objects co-exist and interact in real time.

These platforms involve different levels of investment, time, and complexity to implement. AR is typically the least expensive and fastest platform to implement.

Many AR solutions that are available on the market today can be developed, implemented and rolled out rapidly. In contrast, VR and MR platforms often require extensive programming, development, and integration before they can be rolled out to the field.

 

On the other hand, VR and MR provide a more feature-rich environment and visual experience than AR. For example, AR/MR can overlay 3-D digital twins of a sub-assembly and generate animated repair procedures as well as virtual dashboards of machine performance.

A significant investment is required to implement this type of platform and these investments often require input from various internal stakeholders including engineering, sales, marketing, manufacturing, and finance. For some OEMs or other service providers it may be cost-prohibitive to retro-fit their existing installed base with this type of technology.

A common misconception is that wearable glasses must be incorporated into an AR or VR solution. These devices may not be practical or ergonomically suited for the task at hand. However, this is just one component of the platform so all hardware and software needs must be considered with each solution. Other viewing devices, such as a smart phone or tablet, can be used to generate a remote, collaborative experience.

Many field service leaders are taking a wait-and-see attitude to implementing AR/VR/MR in hopes that costs will decrease and better versions will be available in the future. So why not wait? Field service leaders must remember that time-to-market is everything. FSOs that wait too long to take advantage of this technology may lose their competitive advantage and market share.

Once field service leaders decide on a course of action here is how to get started: The optimal approach, one that will guarantee early success, is to select a mature AR solution that can be rolled out with minimum upfront programming, software development, and systems integration.

FSOs are also advised not be overly concerned with developing an exhaustive list of feature functionality that can be included in their AR solution.

This is because AR features are continuously evolving, and too much planning into an unknown future will slow down the evaluation and selection process. Most AR solutions are available through an On-Demand model, which means new enhancements will be available as part of the subscription.

 

Lastly, FSOs are urged to demo and pilot, yes, pilot products from multiple vendors. Unlike enterprise software or mobility applications, an FSO can run multiple pilot projects with limited upfront investment in time or capital.

When it comes to selecting an AR vendor, remember that AR is a part of a broader digital transformation impacting the company.

Choose an AR partner who will work with existing IT platforms and overall strategy and can provide guidance in how to best integrate their solution. FSOs are advised to consider the following criteria:

• Sensitivity to customer’s needs – In other words, select a vendor that understands that AR is still a relatively new technology and that education and some amount of “hand-holding” is required to ensure a successful pilot and/or implementation.
• Flexibility – Vendors create win/win situations by providing their customers with flexibility. The two most critical areas where flexibility wins are business-model and software requirements. Flexible vendors offer alternative pricing methods and flexible software-feature options.
• Knowledge of best practices – This refers more specifically to best practices around change management and adoption and usage.
• Ability to integrate AR platform with ERP solutions – This will enable FSOs to store and retrieve remote sessions with dispatch work orders.
• Products that can operate in a low-bandwidth communication environment – This will facilitate the ability of FSOs to use AR in remote geographic areas.

Selecting an AR solution based on these criteria will help ensure successful results.

 

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