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Who are the most influential people in the global field service sector that you need to pay attention to in 2017?

The Field Service News #FSN20 is our list of the individuals we believe will be key influencers in our industry across the next twelve months. Those included in the list have been selected by our own panel of industry insiders, who were given the simple criteria of identifying people who will have a significant impact on field service thinking.

However, more than just an annual list of 20 individuals the #FSN20 has grown since it’s launch to become a true celebration of excellence and innovation within our industry.

There are some familiar names and some new faces on this years list and as always we don’t expect everyone to agree with our selection – at it’s heart the #FSN20 was conceived as a tool to get everyone in our industry thinking about who it is that they have come across in the global field service sector that has made them think, who has made them question the accepted paradigms, who has inspired them to do just one little thing more in their own day to day role.

The #FSN20 is not just about the list our panel has put together. It is about fostering discussion that celebrates the unsung heroes of the field service sector. So look out for the online version of this list as well to take part in the debate.

But for now, ladies and gentleman and without further a do, in no particular order, we are pleased to introduce the #FSN20 of 2017…

 

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Click here to see page one of the 2017 #FSN20

 

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Nick Frank, Founder and Managing Partner Si2 Partners

Having worked as an international consultant for over 6 years, Nick founded Si2 Partners last year bringing a new approach to consultancy by offering services on demand.

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. A regular columnist in the trade press and a excellent speaker often to be found at industry conferences, Nick also plays a pivotal role in organising the conference sessions for the UK not-for-profit group The Service Community.

 

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Michael Blumberg, President of Blumberg Advisory Group, Inc

Michael Blumberg is the President of Blumberg Advisory Group and is a recognised expert in Field Service and Reverse Logistics in High-Technology industry.

Michael’s thought leadership, service system planning and strategy formulation are cited as having helped many organisations increase profits and he is a prolific author publishing a number of well received projects including white papers and educational video projects.

 

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Aly Pinder, Director of Member Research & Communities, The Service Council

In previous editions we had a rule that we would only include one person per organisation within the #FSN20. However, ever since Aly moved from the Aberdeen Group to The Service Council, we knew we would have to repeal the rule, as both Aly and Sumair are industry heavy weights in terms of analysis of our industry.

In his new role he will be looking to further enhance the already well established research projects undertaken by The Service Community and his addition to their team makes The Service Council one of the most important groups in the entire global field service sector.

 

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Tom Heiser, CEO, ClickSoftware

It may perhaps be unfair to comment that when Heiser took the reigns of the field service management software stalwarts ClickSoftware the company was perhaps at it’s weakest point in some years, indeed they remain a leading provider of field service management solutions at the forefront of the industry.

Yet, based on the sheer level of dominance that they once held and in light of the ever increasing quality of the competition in the field service management space, Heiser had little time to find his feet in the world of field service if he was to ensure the ClickSoftware brand remained as synonymous with delivering service excellence as it had to date - particularly in the natural uncertainty that an acquisition by a private equity firm can potentially cause. 

However, having seemingly spent little more than a few hours in his own office for the first six months as he flew around the world meeting analysts, influencers and customers alike Heiser certainly appears to have not only established a firm grasp of the industry at large but also where the future for field service management technology lies and under his guidance the outlook for the iconic ClickSoftware brand appears to be on a very positive footing once more...

 

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Marne Martin, CEO, ServicePower

With their next generation platform Nexus now firmly established within the market place ServicePower have re established themselves as a key company within the FSM solutions sector under the vision of Martin.

However, it is her focus on R&D that really continues to drive Service Power to the forefront of their sector. With a number of patents including a one focussed on quantum annealing that will see them developing cutting edge technology for the foreseeable future. Martin is also a very highly respected speaker on the international field service circuit

 

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Jim Baston, President of BBA Consulting Group Inc

Baston of BBA Consulting is the proponent of Proactive Service, and is a master when it comes to understanding the delicate relationship between service and sales and how companies can maximize that relationship to enhance profits. Author, Speaker and Consultant Baston is an intelligent and experienced leader within his field whilst being a true gentleman and pleasure to talk to, to boot.

 

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Kevin Jones Managing Director Computer Product Solutions, Panasonic Europe

Panasonic remain the undisputed leaders in the rugged space with the ToughPad and Toughbook brands synonymous with rugged computing. The Panasonic ToughBook20 is the worlds first fully rugged detachable and could just be the most perfect device for field service to date being both a tablet and a laptop.

Jones has spent a decade with Panasonic and has total responsibility for the entire ToughBook / ToughPad Products and Solutions in Europe, including Sales, Marketing, Engineering and Operations whilst also sitting concurrently on the board of Panasonic Manufacturing.

 

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Dave Yarnold, CEO, ServiceMax

Within less than a decade Yarnold has taken ServiceMax from start-up to being purchased by GE late last year for close to a Billion Dollars.

However, the meteoric rise of ServiceMax wasn’t solely about the technology. Yarnold has a true passion for the service and that passion has filtered down and shone through at all levels of the organisation, which was perhaps the secret source that put them at the top of the sector - having been recognised as the leading FSM solution provider in the most recent magic quadrant report.

Now as part of GE Digital, Yarnold has even bigger visions of how ServiceMax can play a role in building an operating system for the entire industrial sector of which service will be a key component.

Big ambitions?

Yes. But Yarnold is a man that could possibly just do it.

 

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Click here to see page three of the 2017 #FSN20

 

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Michael Blumebrg, President, Blumberg Advisory Group explains why the on-demand economy has become a very attractive value proposition for both FSOs and their customers...

I recently marked a significant milestone in my career. This year marks 32 years since I began work as a management consultant in the Field Service Industry.

I was a newly minted MBA when I started and wondered how I could possibly help clients solve their field service challenges. One of my mentors at the time told me that the key to my success was to just keep at it.

Eventually, I’d have enough experience to solve any challenge presented to me; even those that people were dealing with for the first time. Not just because I’ve seen these issues before but because I would be able to anticipate them.

Looking back, I find these words of wisdom to have been spot on. The Field Service Industry has changed so much since I began working in it.

Much of what we anticipated would happen has happened.

Oldsmobile, a now defunct car manufacturer, had a popular commercial jingle on television in the United States when I began my career…” this is not your father’s Oldsmobile… this is the new generation of Olds”. I feel the same way about Field Service. We have entered a new generation of field service.

 

The field service industry has changed so much such much since I started working in it. Interestingly, much of what the experts at that time predicted would happen with respect to field service has happened.

Back in the good old days, I used to sit around the lunch table with my colleagues and discuss how technology would change the service delivery model and how service would become a utility just like electricity, water, or gas.

It would always be available when you needed it, you would consume it frequently, and pay for what you use. In other words, we were describing the basic elements of the on-demand economy. We just didn’t know it at the time.

What exactly is the On-Demand Economy?

Tech Insider Magazine defines it as the economic activity created by technology companies that fulfil consumer demand via the immediate provisioning f goods and services. Uber, eBay, Lyft, and Airbnb are classic examples of the On-demand economy in practice.

Field Service is also rapidly becoming an On-Demand economy business. Over the last twenty years there have been several industry trends and developments that have made this possible.

Here are a few examples of how Field Service Organisations (FSOs) are leveraging technology to become On-Demand economy businesses:

• Dynamic Scheduling provides real-time information on technician availability which permits FSOs to immediately commit to their customers when a Field Engineer (FE) will arrive on site.
• GPS Technology provides real-time visibility of FE location which enables immediate updates as to when the FE will arrive on site
• Freelancer Management Systems provide FSOs with the ability to source, train, and dispatch freelance technicians. As result, FSOs can scale their workforce on-demand.
• Advanced Technology such as IoT, Augmented Reality, and Artificial Intelligence provides the technical platform for delivering on-demand diagnostics to FEs and end-customers reducing resolution time and improving first time fix.
• 3D Printing Technology enables FSOs to produce parts on-demand. Thus, they can reduce their investment in spare parts inventory, improve fill rate, and lower their logistics and transportation costs.
• Servitization Business Models where manufacturers charge for usage of their product on a subscription basis, such as Rolls Royce’s “power by the all”; the ultimate example of an on-demand economy business. Customers pay for what they consume, when they consume it.
• On-demand consulting platforms like Si2Partners provide a collaborative platform for Field Service Leaders to access subject matter experts to validate thinking, solve problems, challenge assumptions, and formulate new approaches as needed.
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The On-Demand Economy is no longer a concept of the future as far as the Field Service Industry is concerned. It represents a very attractive value proposition for both FSOs and their customers.

There are numerous case studies and data points available that demonstrate how the advancements identified above have helped FSOs improve the efficiency, agility, and economics of service. It will only be a matter of time before Manufacturers and FSOs develop and market on-demand value propositions to business customers in the same way that Uber or Airbnb have done with consumers.

Given current trends, FSOs will need to give serious consideration as to whether they should develop on-demand, “uber-like” service offerings for their customers. It is likely that customers will expect these offerings just as they have come to expect other types of services that have become standard within our industry.

 

There will obviously be leaders, followers, and those left behind when it comes to On-Demand. The question is where will you company reside on this spectrum. Will your company be first to market or will you wait to see what happens? The choice isn’t easy.

Ultimately the answer comes down to whether your company and your customers are ready for On-Demand.

If my experience offers any wisdom, then it’s that entry into any new service or market requires a good bit of market research, analysis, planning, and execution.

On-demand consulting platforms like Si2 Partners can certainly be a critical resource to field service leaders as they formulate their own on-demand service strategies.

 

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Michael Blumberg, President of Blumberg Advisory Group explores the nuances of marketing services and how to get it right...

 

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Want to know more? 20% discount for Field Service News readers on Michael Blumberg’s latest online course on marketing service more @ http://fs-ne.ws/pv2m305UvI5 claim your discount with the code “FSN1”

 

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Service executives often struggle to grow their businesses when they try to apply product-marketing concepts to service marketing.

The 4 P’s marketing mix is one such concept that works great for products but not for services. It is based on the theory that the success of a company’s marketing program is based on how well the company manages strategies and tactics related to product (i.e., design, form/factor, etc.), price, promotion (e.g., sales, advertising, etc.), and place (i.e., distribution).

The problem is that these 4 P’s do not always apply to services. Service products are intangible and difficult to describe, so they can be challenging to promote. Another problem is that place has a fuzzy connotation in service marketing because there are multiple entities involved in service distribution.

Sometimes they cooperate, other times they collaborate, and still other times they compete. Services can be offered by one entity, ordered through another, and delivered by a third. Without well-defined product, promotion and place strategies, all that is left is price and that becomes a slippery slope for service marketing. Sales and marketing can never be just about prices because customers will always find a way to negotiate price.

 

In order to achieve results, service executives instead need to master three fundamental or strategic concepts about service marketing. First, perception is just as important as reality. The perception a customer has about a service provider is what influences their decision to work with that service provider.

Customers need to trust that their service provider has the capability to deliver service before it is actually delivered.

Second, customers pay more for services over the lifetime of a product than they do when purchasing the product itself. In fact, they may pay as much as 8-10 times more for services than what they originally pay for the product.

Clearly the dollars can add up. Finally, there is a relationship between “value in use” and time. Value in use is the cost to your customer in absence of the service. Some services are mission critical. If they are not performed in a timely manner, the customer may lose money by not having the service available. Seeing this connection allows service marketers to effectively price their services and articulate the value of what they provide.

By mastering these strategic concepts service providers will begin to observe a shift in the way they think about service marketing. In fact, only by changing their mindset can they hope to become more effective in implementing strategies that lead to higher revenues, greater profits, and increased market share. Service providers who go through such an evolution understand that the Successful Service Marketing™ mix is actually based not on 4 but on 7 key principles.

These principles are:

PORTFOLIO:

Often described in terms of a service-level commitment, such as 24/7with a four-hour response time. The more distinctions a service provider can make to define their service portfolio, the more likely they will be to fulfill the needs of prospective customers.

PROVIDER:

Tangible elements of the service infrastructure, such as a call center, self-service portals, enterprise systems and service technology that make it possible to deliver on the promise of the service portfolio.

PROCESS:

The steps customers must take to request the service, and the tasks that occur to deliver the service. For example, performing front-end call screening and diagnostics before dispatching a field technician.

PERFORMANCE:

Evidence that the service provider can deliver on your promise, such as KPIs, customer satisfaction results and customer testimonials.

PERCEPTION:

The ability to win business and retain satisfied customers is based on the service provider’s ability to influence the perception that current and prospective customers have of them. This goes beyond simply promotion through advertising, branding, and communications. It gets to the essence of who are service provider is, what they stand for, and how they portray themselves in the market.

PLACE:

Services distribution channels can be complex. Quite often, consumers can purchase service from one place, order or request it from another place, and have it delivered to them at a third place (e.g., onsite, depot, remote, etc.). Sometimes it’s the same company delivering this service. Other times it’s not. Regardless, the service marketing mix must deal with these complexities.

PRICE:

Of course, there is always the issue of price. The important thing to remember is that price is a function of value in use and perception that consumers have of their service provider (i.e., expertise, experience, capability).

There are just a few more concepts that service providers need to learn if they are going to win at service marketing. First, they have to know their market. Service providers obtain this knowledge through market research. If they know who buys, what they buy, and why they buy then they can sell more service to customers, to more customers, and get them to buy more often.

Market research also provides the insight needed to communicate effectively with current and prospective customers. It helps determine what messages, what images, what ideas will resonate with them and make them want to buy. Marketing is about taking a need and converting it into a want. You may need a watch to tell time but you want a Rolex because of the status and prestige associated with owning one. So when you have really good market research of who buys, what they buy and why they buy, you can construct your message in such a way that you turn a need to a want.

Good market research not only helps in creating a service portfolio customers want but supports in developing an optimal pricing strategy for that portfolio. Many companies price their services on the basis of either cost-plus or competitive pricing strategies. With cost-plus pricing, you calculate what it costs to deliver service and then mark up that amount to cover you profit. With competitive pricing strategies, you conduct market research to find out what your competitors are charging and then price your services at a lower amount.

 

A third type of pricing strategy is called value-in-use pricing. It involves measuring the economic value or loss to the customer of not having the service available in a timely manner. This can be significant. For example, a manufacturing facility may lose millions of dollars every hour its machines are down. Therefore, it may be willing to a pay premium for faster service.

Market research can help determine whether a service provider should pursue a cost-plus, competitive, or value in use pricing strategy.

The final aspect to winning service marketing is called invisible selling. This is based on the premise that companies win service business not by pushing their offers onto prospects, but by pulling customers towards them. One way is through indirect marketing as opposed to direct selling. Indirect marketing includes publishing articles or white papers that demonstrate that the service provider understands the problems companies in their market are experiencing and that they have solutions. Other forms of indirect marketing involve using social media and public speaking opportunities to influence others to seek out the service providers’ expertise.

When companies put all the elements of a Successful Service Marketing™ program together, when they fully understand the strategic concepts of service marketing, when they effectively apply the seven principles of service marketing, when they learn how to optimally price their services, and when they use market research effectively, they achieve phenomenal results. Their service-marketing program becomes successful, their sales take off, and their profits skyrocket.

 

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Want to know more? 20% discount for Field Service News readers on Michael Blumberg’s latest online course on marketing service more @ http://fs-ne.ws/pv2m305UvI5 claim your discount with the code “FSN1”

 

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Service organisations who have integrated field service and reverse/service logistics processes report a higher level of service performance than those who have not, reports Michael R. Blumberg, President and CEO, Blumberg Advisory Group, which has conducted a survey of 250 field service companies companies in the high-tech sector.

Much attention has been given in recent years to the need to automate field service and service parts logistics processes through the implementation of Enterprise Service Management (ESM) systems, . Although the benefits from improved automation are well documented, there is a segment of the market that faces challenges to achieving measurable gains in productivity and efficiency as it relates to key performance indicators (KPIs). This is especially true for KPIs associated with service parts logistics activities. We believe these shortcomings are due in part to lack of integration between field service and reverse/service Llogistics functions.

In order to validate this hypothesis, we conducted a survey among a cross representative sample of companies in the high technology service and support industry. Over 250 respondents participated in the survey, which was sponsored by IFS.  The survey results reveal a number of very interesting trends:

1. Greater reliance on remote support: The survey results support the growing trend toward resolving service requests remotely without the need to dispatch a field service engineer. 40% of companies can resolve more that 25% of service requests remotely by sending out a replacement spare part. Over one quarter of respondents expect this trend to continue to increase over the next 18-24 months.
2. Best of breed solutions outperform integrated solutions: Despite the breadth of functionality found within integrated enterprise systems, our results indicated a higher level of satisfaction with Best of Breed solutions than with Integrated ESM platforms. Over one-third of respondents were extremely satisfied with their Best of Breed ESM solution compare to 14% with integrated ESM platforms. We believe this is because best of breed solutions are more focused on the detailed processes and transactions involved in managing a field service and/or reverse logistics operation.
3.  Perceived gaps in reverse logistics functionality: Many companies perceive their ESM solutions have gaps in the ability to deal with reverse/service logistics issues particularly when it comes to depot repair activities. For example, 27% of respondents claim that their ESM is not very effective in tracking the results of depot repair test and screening activities. Another one quarter indicated their systems are not very effective in automating the work flow or business rules associated with processing returned materials.
4. Integrated automation is critical to success: The level of integrated automation between field service and reverse/service [ogistics functionality has a direct impact on ESM effectiveness. More importantly companies with a high level of integrated automation perform better on key service performance metrics than those who do not. Companies with some level of integrated automation experience a higher SLA compliance rate than those have no integrated automation (93.4% v 87.9%) as well as a lower no-fault-found rate (26.1% v 38.3%).[/ordered_list]

In summary, our research findings reveal that companies who have been able to successfully integrate field service and reverse/service logistics processes report a higher level of service performance than those who have not. The most effective integrated solutions are those that incorporate integrated, best of breed functionality for both field service and reverse/service logistics processes. More importantly, the data reveals that these integrated, best of breed solutions are not only highly effective in managing ongoing service requirements but essential to overcoming critical business challenges such as improving remote resolution rates and improving field service engineer productivity rates.
We’d like to thank IFS, a leading provider of ESM systems, for sponsoring our research study. IFS has made available the results of our study in a 14-page whitepaper that can be downloaded at Whitepaper Download. To better understand the implications of these findings to your organization or to define requirements for a best of breed, integrated solution, schedule a free strategy session with us today by clicking here.

 

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