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Digital Twins have been discussed in tech circles for a while now, but their potential value in field service is still only just beginning to filter through, Manuel Grenacher, SAP Field Service Management, explains the role they could play in improving service delivery. 

Have you ever considered the possibilities and potential of digital twins for your customer service?  Don’t worry, we are not talking about virtual figures in cyberspace that are modelled after the user just like avatars.

A digital twin represents a real object in the digital world. Digital twins are composed of data and algorithms and can be coupled with the real world via sensors.  They form the basis for a digital customer service and other industry 4.0 related processes. In short, “digital twins” recreate a system in the computer. Ideally, data from the engineering phase – from 3D models to detailed information on installed components – is transferred to the operating phase.

Sensors provide live information on operating conditions, and in addition, all technical innovations on the system, such as the installation of a spare part, are tracked in the “digital twin”. Users benefit from more accurate real-time information and they get a detailed “reference book” with all service information they need.

But how can companies use the advantages of digital twins for their customer service? Digital twins enable the implementation of predictive maintenance since they allow data to be assigned to specific plant conditions. Thus, changing measuring conditions often show in advance that a certain component will fail in the foreseeable future. This allows planned system downtimes to be better coordinated and repair cycles to be adapted to expected failure probabilities.

Requirements For Digital Twins In Service
Sufficient sensors and a systematic evaluation of the data are the essential basis to predict imminent component failures – an approach that is already feasible today. However, technical possibilities are still far from being exhausted right now.

Due to ongoing depreciations or for other economic reasons, companies are only gradually investing in plants equipped with modern IoT technology. IoT, however, will become more affordable in the near future. Sensors will therefore spread continuously while at the same time becoming easier to use, more resistant and cheaper.

"A digital twin represents a real object in the digital world..."

Enabling New Business Models, A Recipe For Digital Success
Industry 4.0 cannot work without a well-planned and technologically underpinned digital service concept, because service is an essential part of digitization. Many companies today already try to stand out with the quality of their service rather than just great products since they are often too similar, even exchangeable.

Customers therefore primarily choose the partner that offers more and faster service. The goal of every company should therefore be to better understand its customers, create better touchpoints and improve service.

This is where new concepts such as “machine-asa-service” become more and more important: companies only purchase the performance of a machine instead of the machine itself – including the service to ensure constant performance. Service Lifecycle Management plays a central role in this concept. In the future, entire ecosystems will emerge from new service providers using concepts like this.

Digital Twins Will Revolutionize Customer Service
Digital twins with their immense data material in both service and business intelligence offer the potential to create entirely new areas of business. Sensors allow to map and control machine statuses and product quality in real time – as well as predicting problems at an early stage. This way, service can intervene before expensive machine failures occur.

Furthermore, companies can dynamically adapt maintenance intervals to actual requirements on the basis of live information. In the future, all of a company’s systems as well as all of its spare parts, tools, containers and products, will be represented by their “digital mirror images”, a complete factory in the computer. The large amount of data that can be collected using digital twins in combination with artificial intelligence evaluation will provide stunning new insights into the interaction of operating processes.

This will lead to fully automated smart factories, which, thanks to artificial intelligence and digital twins, can control themselves practically without human intervention

Manuel Grenacher, is GM at SAP Field Service Management.

Hot on the heels of its launch last year, Field Service Connect 2019 focuses on the UK field service industry and its challenges, bringing fresh insights and differing perspectives to this often under-appreciated sector.

Set against a backdrop of rolling Welsh countryside, this invitation only summit will see senior field service executives debate, discuss and divulge their successes and challenges in 2019.

Customer Service and Mindset
There can be no doubt that the traditional interpretation of Field Service is changing: a fundamental shift is being made to focus on service and its incorporation and development into existing, more product-centric, business models. Where once it was enough to rely on a stellar product, now competition is fierce and margins are being squeezed this is no longer the case. Where excellent service is being provided and taken for granted in everyday life, it makes sense that this is now being expected, if not demanded, within business transactions.

A new age is dawning and customers are continuing to ask how a product and company ‘adds value’. Engineers in the field have access to, and interactions with, potentially hundreds of contacts within a specific customer base. So it’s no surprise that those customers will come to associate a product’s ‘worth’ based on the dealings they have had with these field service representatives. As the American poet Maya Angelou is attributed to have said: “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel”.

By 2020 customer experience is slated to overtake price and product as a key brand differentiator. 

Women in Field Service and Brand
With this shift to customer centricity there must also be a shift in perception. Traditionally seen as male dominated, a career in field service has not attracted women. However, with service coming to the fore this situation is starting to change and the skills that women offer are becoming more vital than ever. The ‘soft skills’ required for customer service roles are often attributed to women, but it’s not a question of gender, the focus must be on what skills can be brought to the table as a whole and how these can be used to improve a company’s field service offering.

"Traditionally seen as male dominated, a career in field service has not attracted women..."

In order to ensure that quality talent is acquired and retained Field Service must also diversify so that the next generation of bright minds can see themselves working in this sector. If a certain demographic is only ever highlighted and portrayed then it is no wonder that it is presumed that this is all there is. As you would market a brand, the same must be done throughout Field Service. Why would you choose this career? What is there to offer? What is the long term career outlook?

In order to keep up with rising expectations it will require a massive change in mindset, starting at board level and moving downwards, to truly transform a company ethos. For some this will mean a transformation in culture that has formed over decades but must now be changed rapidly if they are not to be left behind by the competition. This will be easier said than done; as change is happening so fast it’s fundamentally hard to move quickly enough! However, as the old adage goes, ‘just because something is difficult, it doesn’t mean it isn’t worth doing’.

Digital Transformation
Alongside the cultural shift needed to meet customer expectations, Field Service is also being driven by digital. Gartner defines digitalisation as ‘the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.’ ‘Digitalisation’ and ‘digital transformation’ have become such buzz words in recent years that some have lost sight of not only what it means but what they are actually trying to do.

Digitalisation is a tool by which to achieve an end goal, not the goal itself. Gartner predicts that by 2020 10% of emergency field service work will be both triaged and scheduled by artificial intelligence. With AI assisting with everything from scheduling to predictive maintenance to using past data to make future plans.

The human element within Field Service is still very much relied on and future technologies and solutions will be there to support these interactions - to make life easier and more efficient, not to replace humans altogether.

People still want to do business with people and until the customer becomes more Terminator than terrestrial this will probably always be the case.

You can find out more more information about Field Service Connect UK 2019, including how to register here.

A panel debate on the best digital tools for achieving top-end service, strayed from shortlisting technologies and focused more on the end-user impact. Field Service News’ Deputy Editor Mark Glover attended the session – part of Field Service Europe 2018 – and saw discussion range from strategy to data, but always swinging back to the customer.
Among the many highlights from Field Service Europe, held in Amsterdam before Christmas, was a debate attempting to shortlist digital tools that can contribute to a world-class service process.

Panellists included Miguel Angel Hernanz, VP Head of Global Service Delivery Transformation at Phillips Healthcare; Karen Mehal, VP Field Service Lightning at Salesforce and David Nedohin, President at Scope Augmented Reality.

Chairing the debate, Field Service News’ Editor-in-Chief Kris Oldland began by defining world-class service and more specifically what it means to customers used to high-end service delivery from the likes of Uber and Amazon. “Service is no longer how we compete with our direct competitors,” he told delegates. “We’re now constantly at competition with the best service experiences customers have ever had. We’re now moving into a world where customer satisfaction is perhaps no longer the right phrase anymore.    
"It has to be about customer experience and understanding what the experience is to the customer and working back from there. Only then can we really start thinking about what world class service is,” he posed.  

Oldland put it to the panel that technology and digitisation in service should be perceived as “one continuous eco-system that compliments and feeds off one-another" rather than separate tools. Hernanz, who recently oversaw a large B2B and B2C contact center service transformation at Phillips Healthcare, was keen to set the focus on strategy and away from the tools. “The different tools are enablers," he said. You should first of all take a look at your strategy and secondly re-define your processes end-to-end, then use the different solutions or tools that are available in the market to make it happen.”    

He continued: “The problem with digitisation and the variety of tools in the market is that you get overloaded with information; you find opportunities all over the place and you want it all and you want it now and that is a big mistake.    “You should start doing a proof of concept. You try it, you learn, you correct and you scale up; if it is scalable. Or you dismiss it and you try something else” he urged.    

Servicecloud’s Karen Mehal agreed: “If you don’t understand what your objective is, how do you know you’re getting there? she asked, going on to question the use of the term digitisation. “We digitised field service technicians with laptops 20 years ago, did we not? We gave them a laptop. That was digitisation."   

It's a good point. The industry can be guilty of getting swept up in buzzwords without fully understanding what they mean, and more importantly how they can impact on customer service. “What’s the objective?” Mehal continued, “Is it around your customer? Is digitisation serving your customer? If it isn’t, it really should be. Or are you just taking your ERP and digitising it?    

If the customer service is the end goal, then digital tools should be used to empower that process. Putting this theory to David Nedohin, the co-founder and president of an Augmented Reality company, Oldland asked how such a new and innovative technology such as Augmented Reality can cut through the excitement and intrigue to become a genuine ROI. “It’s about identifying what the problems are but to also make sure there are measurements to it,” Nehan explained. “For example, if you are currently sending out your field service team to help support your customer on a certain percentage of problems, what is that costing you right now? And if you could implement a technology that could help reduce a certain percentage of those, then what is the actual cost savings?    

“If they don’t have those numbers, we work with them to find out what those numbers are so there’s a business case that can be presented to management,” he says, before adding: “It’s a strategy they need to put together to understand exactly why they’re solving that problem. You have to start with the problem, you have to start with the use-case.”     

Concurring, Oldland suggested that technology should underpin a wider business plan of evolution. “Digitisation is not a one-off process,” he said. “In a sense, we’re talking about a continuous improvement journey, it’s just that the tools behind that evolve too.”    

“I see a lot of people get lost in that,” offered Mehan, who by her own admission is customer-facing, “They get lost in the shiny object, such as Augmented Reality. But if your strategy is around customer support, better customer service, wouldn’t it be better to use digitisation to look at someone’s asset now and fix it now, rather than scheduling someone to go out there and fix it?    

“Our world is no longer traditional. We’re not in a traditional world, we’re not in a traditional software world, we’re not in a traditional field service world. We should not be bound by EAPs or by software. We should by bound by what serves out the customer,” she argued. “My questions are: are you doing that with your digitisation. Are you really taking care of the customer when you’re doing your strategy?” She said.   

Philips’ Hernanz admitted working in large organisations ,where many different stakeholders have many ideas can be difficult. However, all these opinions come second to that of the most important stakeholder: the customer. “You need to put the customer at the centre and listen to them,” he said. “This is very important. You must find out what they need and then start building solutions which are suitable for today, but also for the future because the whole process is also an evolution.”   

 

"We're not in a traditional software world, we're not in a traditional field service world..." (Mehal)

 

 

One digital tool that has made a significant impression on this process is data and, in particular, big data. Filtering the most useful information remains the challenge, given the reams of information that smart assets churn out. “There’s no point in having data if it’s not providing the right insight,” Oldland said to the panel, all of whom agreed and acknowledged all the customer cares about is fixing what needs fixing.   

Referencing a client who made industrial cooking equipment for fast food restaurants including Burger King and Macdonald’s, Mehner told the audience that when their client's equipment – such as a bun toaster – produced a fault the restaurant would call out a contract worker ill-equipped to isolate and solve the issue. “This piece of equipment,” Nedohin explained, “now has 20 or 30 tickets associated with it because the technician doesn’t know how to diagnose the problem, let alone fix it. The message is clear: we need to find a better way of fixing the assets.”    

The restaurant now uses remote support tools to directly contact the manufacturer, who can identify the model, the fault, diagnose the problem and send the right technician with the correct parts and asset knowledge   “There is data with this such as preventative maintenance,” Nedohin said. “But the customer doesn’t care, all they care about is getting the equipment working. That data is important to somebody and that somebody is in the manufacturer's office.   “The person at the end just needs to know what to do,” he concluded, summing up a key take away from the debate.   

Enlightened delegates left the session without a list of digital tools but an idea of what to do before you choose them. Data collection, Augmented reality can all complement a process, but without a strategy that also encompasses your customer’s needs, those tools may as well be blunt.  

Si2 Partners’ Nick Frank outlines why we can’t just expect our field service engineers to naturally achieve the status of trusted advisors without guidance, training and empowerment. 

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.

The field service sector is heading into the final stages of a transition from an operationally focussed, cost-based discipline to a service-centric, revenue generating one and it is a change we must embrace writes John Hunt from Astea.

In my role as Managing Director EMEA with Astea I speak to a lot of field service professionals. As is the nature of our industry, these folks come from companies of all shapes and sizes and from many different industries – which can lead to many varying, often highly nuanced views as to what ‘service excellence’ is. 

For some of our customers ‘speed of response times’ may be key, for others it’s ‘first-time-fix rates’, for others still it may be ‘effective time’.

However, looking back on the conversations I’ve had across the last twelve months, there is one constant challenge pervasive amongst field service organisations. Indeed, I’d go as far as saying that across the board, service leaders are facing a new reality that can be summed up in one word - change.

Ours is Not a Sector That Stays Still For Long
The field service industry is not and never has been, one for ever standing still too long.  Remember, ours is the industry that was sending data back from the field long before the likes of Apple and Samsung had put the internet in everyone’s pocket and the best-in-class companies in our sector today are often those who innovated their way out of the global financial crisis in 2008 by placing their service offerings at the heart of their solutions.

So it is through a lens of confidence and anticipation that I look now at our industry once more going through widespread change.
We are witnessing significant change in many core areas of field service at the moment, including changes in our workforce structures to include more short-term labor. Even the very role of the field service engineers themselves is rapidly evolving as more emphasis is being placed on quality customer interactions that lead to higher customer satisfaction and hopefully, higher shareof-wallet.

The service engineer has historically been the relationship managers since they have the most one-on-one time with the customer. Now companies are putting formal training in place to ensure technicians have the right customer service skills and the right mind-set for being the brand ambassadors. And field service technology is helping companies make this shift by adding checklists that can guide technician behaviour through things like upselling and cross-selling initiatives.

"I look now at our industry once more going through widespread change..."

As I mentioned at the top, different companies will prioritise different KPIs according to their own internal goals and targets. Yet, one thing that we at Astea are seeing across all service related industries, is the ever-increasing importance of customer satisfaction. This is where field service organisations can find a real competitive advantage.

In a world of digitalisation, Artificial Intelligence and automation, the field service call represents something that is becoming a rare and hugely valuable commodity – genuine face-to-face interaction with customers. In today’s service economy, this is an opportunity that cannot be overlooked.

One KPI To Rule Them All?
Customer Satisfaction is increasingly becoming the KPI for field service organisations, and it is not just for the more abstract concepts within business strategy such as brand perception either – there are very clear, tangible economic reasons why field service companies should realign their KPIs more towards CSAT as opposed to more traditional operational KPIs such as First-time-fix or mean-time-to-repair. For example, for those working in business to consumer verticals, I would point to research published in the Harvard Business Review that revealed that consumers who receive the highest standards of service spend 140% more than those who receive the poorest service, whilst data from

American Express revealed 86% of consumers will pay more for better service. The bottom line is that better service means better revenue opportunities.  However, a focus on CSAT KPIs isn’t just for B2C companies, it is just as vital in B2B sectors also. For a start, the lines for service in both segments are continuously blurring as the bar for high quality service continues to be raised in all sectors. But once again, there is also a wealth of data to support the argument for focussing on CSAT for B2B organisations. For example, research by Bain and Company shows that just a 5% increase in customer retention will typically see profit increases of anywhere between 25% and 95%.

Besides guiding technician behaviour, there are other ways that field service management (FSM) platforms can help companies prioritise CSAT, including self-service web portals and mobile apps where customers have more visibility and control over their service relationship. Other ways FSM platforms can help is giving companies the ability to communicate with customers in modern ways that are more often seen in B2C relationships. For example, automated workflows can easily be set up to send text messages or email alerts letting customers know about a change in a service order status.

It’s clear that we are entering an era of new opportunities. Of course, in such times the challenges can be daunting and discussions of how to move forward are often complex. This is why I’m looking forward to hosting a series of round tables at this year’s Field Service Summit in Warwick, where I intend to dig deeper into the changes the field service sector is heading through and how we can embrace them.

John Hunt is Managing Director EMEA at Astea

According to research from IDC 30% of manufacturers will soon provide personalized dashboards for customers by 2023 which could lead to a new era of customer satisfaction: customer collaboration. Aly Pinder explores the potential of this evolution. 

What role does the customer play in their own service experience? If we were to think back a few years or decades the answer would be minimal. Historically, the service organization or manufacturer held the keys to a customer’s happiness and satisfaction.

Show up, preferably on time, with the answer to resolve the issue was the main goal. If the issue were resolved the customer was happy and vice versa. But as most of the world is now accustomed to on-demand experiences and collaborative interactions with peers, manufacturers, and technology platforms this model is changing. IDC predicts that resulting from demand for hyper-customized customer experiences, 30% of manufacturers will provide personalized dashboards for customers to schedule service, learn about products, and collaborate by 2023. Customers now can create their own experiences and in turn their level of satisfaction with their expected outcomes.

This isn’t to say that the manufacturer is completely absolved of responsibility to have knowledgeable technicians, reliable products, and efficient processes to support a quality service experience, but a good service experience is evolving and has become inclusive of customers, partners, and other stakeholders. Customers can and will continue to play a bigger role in the experiences they create for themselves and the impact they will have on quality service. From their level of engagement to the access they allow manufacturers to use the data that is created customers will only become more relevant for the future of service excellence. Below are a few ways I see customers impacting the service experience in 2019 and beyond.

Customers are invested in your success but have options
Engaging customers in their own experiences with service is not only a way to balance risk and the cost of service, but ensuring customers have a reason to stay with you. Competition for service has never been higher, no longer is the manufacturer the sole provider of service for a customer. Third parties are nothing new, but they have become more viable in their ability to deliver quality, timely service on a variety of products and equipment types. Therefore, manufacturers must innovate the ways in which they build bonds with customers going beyond the suggestion that “you bought it from us, so you must sign a service contract”.

"Customers can and will continue to play a bigger role in the experiences they create for themselves..."

A personalized dashboard which integrates with suggested new services or products, creates a community of user-driven content, and boosts the customer’s performance in KPI that matter to them is one way to create longer lasting customer partnerships.

Expectations change and manufacturers need to evolve at faster pace
Not much is more frustrating than providing feedback in a survey and seemingly having that information go into a blackhole not used by the those who administered the survey. Customers are very willing to give manufacturers feedback as we have seen an influx of customer advisory forums, social interactions, and other channels of insight. But too often this is used as a marketing tool and not as a path to tailor future products, service, and experiences because of this intelligence.

As customers provide manufacturers with insight into what they value and how they want to be interacted with, it is imperative that this information leads to improvements as this is the customer taking the time to involve themselves in their own service experience.

Connected products must enable intelligence and customized experiences
The number of connected products and devices will only continue to grow, but unfortunately, we still lag well behind the promise of this future. Data from connected products too often is just stored in the cloud used by just a few when the ability for this insight to trigger new and valuable experiences is plentiful.

Customers through their usage and behaviour data have provided manufacturers and service organizations with a treasure trove of insights that must be leveraged to enhance on-going experiences.

Customers shouldn’t just be an open wallet or an email address. As much as customers of the future are a wealth of data points they also have a growing willingness to be a part of the experiences that are delivered to them. Not engaging them in a true partnership of shared experiences, shared benefits, and shared goals is a missed opportunity that won’t be sustainable in our shared futures.

Aly Pinder is Program Director at IDC.

Underpinned by regulation and historically reluctant to embrace new technology such as big-data, the utilities service sector finds itself at a crossroads. Will 2019 be the year of the customer with industry watchdogs taking a back seat? Field Service News' Deputy Editor Mark Glover finds out more....

I write this article in the second week of January. An odd time when faded Christmas trees lay abandoned in gardens, and flashes of tinsel peek through wheelie-bins. Festive memories seem a long time ago and the summer seems even further away as we return to work. We snooze the 6am alarm, reluctant to step into the cold morning.

Symbolising this grim time of year is the broken boiler. Plummeting temperatures mean faults are common and energy companies come under pressure to respond and to deliver first-time fixes. Customers, particularly on a cold January morning, want radiators hot and their showers hotter.

In Britain, central heating was introduced in the 70s. Then it was seen as something of a luxury. Today it is seen as a basic requirement, we miss it sorely when it’s not around so when the boiler flame goes out, we demand a quick response from our supplier. An expectation affirmed by the Uber and Amazon delivery service-times we operate in.

So has the utility sector adapted to the modern customer demand and if not,what does it need to do to keep up? Are they instead content to just keep their regulators at bay? And what about technology adoption? Do firms still feel uncomfortable dipping their toes in big-data lakes?

Historically, utilities have felt ring-fenced from competition. The majority of companies have a monopoly over the areas they supply. Investing in complicated and costly digital strategies has never been high on the agenda. Stephen J Callahan IBM’s VP of Global Strategy and Solutions for Energy and Utilities explained why outfits remain sceptical in an article for RDMag in 2015: “The analytics opportunity for utilities is clear,” he wrote, “but there continues to be a lack of real push and value delivery. Companies have been concerned about the high costs and complexity of data. “Technology shifts, regulatory changes and the emergence of empowered consumers all demand a new approach to customer engagement. With analytics, energy companies can make the shift to engage with customers in highly personalised ways that can increase customer satisfaction, lower the cost of service and promote new products and services,” he urged.

For UK energy companies, customers switching tariffs and regulation from the Office of Gas and Electricity Markets (OFGEM) are the main drivers influencing its customer strategy. Transparent costs and price comparison sites have
made swapping easier for consumers and in 2016, 4.8 million frustrated households did just that. Their main reason? Poor customer service.

That said, despite the numbers, and a strong PR campaign around the ease of which it can be done, the rate of switching is perhaps not where OFGEM want it to be. “I think switching is happening but probably at a lower level than the regulators would be aiming for,” explains Laurence Cramp from Leadent, a managing consulting and technology business specialising in field service. “Mainly because people are using the supplier in their area and they’ll stay with that supplier.

“It also comes from the fact that tariffs are all in and around the same range so consumers tend to be paying about the same price for their energy. The customer service may be better or worse at some or others but that’s not necessarily linked with what billing platform they’ve just integrated. I think people probably look at the power sector and think it’s much of a muchness.”

In the UK, British Gas, SSE, EDF Energy, npower, E.ON UK and Scottish Power form the “Big Six”, the suppliers who provide the majority of energy to the UK. Smaller and more streamlined energy companies, with a strong focus on service exist, yet consumers seem content to stick with the top names.

Of those, British Gas is the UK’s largest energy supplier and can lay claim as the world’s first public utility company. Set-up in 1812 as The Gas Light and Coke Company, the firm provided customers with coal-based energy. The sector, and technology, has moved on considerably – not least with the advent of electricity – and British Gas has done its best to keep-up, adopting technology to enhance its customer service processes. It recently rolled-out its ‘On My Way’, real-time engineer tracking facility, enabling customers to see the precise location of the engineer, producing an accurate arrival time for time-starved customers.

"In 2016, 4.8 households switched energy supplier. Their main reason? Poor customer service..."

Tim Andrew is the CEO of Localz, the company behind British Gas’ location tracking technology. He says 2019 will see utility watchdogs push companies hard when it comes to customer service. “Regulators continue to increase their focus on customer experience, using both penalties and incentives to drive same-year measurable improvements,” he predicts.
“This year will show that the companies who outperform the industry, continuously focusing on providing transparency and control to consumers, rather than running a project to meet the minimum regulatory requirements.”

Consumers are hamstrung to the area they reside: Southern Water, Thames Water, Yorkshire Water for example, with customers unable to switch tariffs. With consumers locked-in to contracts, how are suppliers kept on their toes to ensure they deliver on customer service?

Here, the Water Services Regulation Authority (OFWAT) keeps economic tabs on companies. Set-up in 1989 following the privatisation of England’s 10 water authorities, it carries out a review every five years with this year (2019) being the next period of scrutiny.

This cycle will see companies adopting a Customer Measure of Experience (C-MeX) incentive approach, intended to focus firms on delivering a high-standard of customer service. C-MeX supersedes Service Incentive Mechanism (SIM), a customer satisfaction survey carried out four times a year by the regulator, and will link financial incentives to the performance level of the best performing companies.

Cramp believes the new approach will spur-on companies, through the use of technology, to be more comprehensive in their customer focus. “C-MeX is there to encourage firms to be more holistic and rounded in what they do for their customers,” he says. “This is a good time for water firms because they’re now all gearing up for the next five years and undoubtedly customer service is a really big part of that with a lot of focus on investment in technology to help
with that.”

However, he suggests the water companies are some way behind their energy counterparts who, driven by their own regulator OFGEM, have already integrated such initiatives “I see the water companies playing catch-up with where the power utilities were five years ago. I think the energy regulator has been on that case a little bit ahead of the water companies than OFWAT,” he says.

The utilities sector is a broad market, however like field service, which straddles numerous verticals, there exists an opportunity to share best practice across its own verticals: water, electricity and gas. Is it possible for the energy sector to extend its five years of technology-focused customer learning to its water counterparts?

“In our daily lives we take a great experience from one industry, and get frustrated when that isn’t available in another,” says Localz’ Tim Andrew, who is adamant it can. “As a business, trying to meet, let alone exceed customer expectations by
taking input from just an internal or single industry perspective is futile. Cross-industry collaboration and product development is critical.”

As well as working together, the sector needs to invest sensibly in technology, particularly around customer service. There are murmurings that this is starting to happen, particularly in the water industry but how long this will take is even less clear. Studies suggest that worldwide firms are setting aside funds to do just that. In 2015, GTM research anticipated utility company spend on data analytics growing from the $700 million spent in 2012 to $3.8 billion by 2020, a huge leap but it need not be a leap into the unknown and at all times, the customer should be at the heart of any decision.

“Becoming a customer-centric, information driven organisation is no longer simply an option for most utility companies. It’s a business imperative,” Callahan said in his 2015 rallying call to the utilities sector. Four years’ on, will his words have had an impact?

Watch this space.

In the latest Field Service Podcast, Christian Kowalkowski, Professor of Industrial Marketing at Linköping University, discusses the challenges round transitioning to a servitization business model.

In this episode, Field Service News Deputy Editor Mark Glover, speaks to Christian Kowalkowski, author of Service Strategy in Action: A Practical Guide for Growing your B2B Service and Solution Business, about the challenges businesses can face when adapting to a servitization model having been used to the more traditional transactional framework.

You can connect with Christian on his LinkedIn profile here and email him at christian.kowalkowski@liu.se
Information about the book Service Strategy in Action: A Practical Guide for Growing your B2B Service and Solution Business, including how to purchase a copy, can be found here.  

Click Software’s Hilla Karni sat down with Field Service News’ Deputy Editor Mark Glover at Field Service Europe 2018 in Amsterdam, sharing thoughts on Augmented Reality, the gig economy and the importance of employee wellbeing.

Ten years is a long time in field service. Trends come thick and fast with some trends thicker than others, attaching like coral onto the industry and becoming an integral part of service progress. The worldwide web and mobile technology are probably the two best examples of this; both have been essential in pushing the industry forward. Would we cope without them today?

It’s fair to label these movements as revolutions; their impact has been immense but smaller changes while not as monumental are just as significant. Today though, focus is swinging from technology enablers and back to customer service.

“Mobile was many years ago, everyone expects to have it,” says Hilla Karni, VP of Product and Customer Marketing at Click Software. Karni has just finished hosting a roundtable at Field Service Europe and we’ve managed to find a quiet dining room post-lunch to talk. I settle my dictaphone among skewed butter knives and bread crumbs. Sipping coffee, Karli continues: “In recent years, the shift has moved from a service operation that is a cost-centre, to a service operation that is an opportunity to impact customer service.”

The roundtable titled: The Science Behind Service: Metrics that Matter, centred on KPIs affecting customer service. The fact such a round table was taking place affirms how the industry is focusing on the end-user. “Before you would never hear of this,” she says. “KPIs were always around productivity, travel cost, overtime; it was always cost.”

But what about those enablers such as AI, IoT or specifically Augmented Reality (AR)? What role does AR play in the new customer focus? “Everyone talks about AR. But why are they using it?” She asks, pausing slightly. “It’s for the remote diagnostics which enables a better first-time fix. A first-time fix rate is the metric that combines efficiency, productivity with customer experience.”

In order to achieve customer focus KPIs, Karni tells me, smaller trends such as employee wellbeing are taking on a greater significance. “There is a very clear correlation between employee engagement and customer satisfaction,” she
says. “When an employer is happy with his or her job then he or she will deliver excellent service. Now we are seeing different investments around making your employees happier. There is a very clear correlation between happy and engaged employees with customer satisfaction.”

This, refreshingly, ties in with a general shift in occupational wellbeing and a positive approach to mental health in general. From a business point of view, work-related stress affects staff absenteeism; in turn affecting productivity. One thread of wellbeing, prevalent in field service is the time an engineer might spend on the road. Tools around scheduling play an important part in employee engagement and buy-in. Some firms, Karni says are handing autonomy to their engineers to create their own timetable. “Some of our
customers like their technicians to make more decisions by themselves.” The increase in wellbeing can be loosely attributed to the flexible nature of the modern workforce.

“When an employer is happy with his or her job then he or she will deliver excellent service..."

Today, freelancers choose their workdays and hours to fit their lifestyle. The typical nine-to-five day still exists but the gig
economy – so-called as each piece of work being akin to a ‘gig’ - represents another shift in efficiency and cost. Karni suggests large contractors, with their large overheads, can fail to deliver the required standard of customer service, paving the way for freelancers. “This is where the workforce trend is to have more freelancers, the uber-like model, offering a better service but it must be connected, ultimately, to a better customer service.”

So, if customer focus is the new trends in field service what technology revolution does Karni see to compliment it? Firstly, she is keen to re-label the progress. “I think the next evolution – and it is an evolution, not a revolution – is more focused around prediction,” she affirms. “Having prediction within the service delivery life cycle changes a lot of things because it makes for more
accuracy and real-time decision making.

“Previously, we still made decisions, many decisions. Then we got mobile so were able to streamline the process. Then we had more optimisation and got artificial intelligence to improve productivity and efficiency. Now we are taking it to the next level and saying, ‘Okay, how can I predict better to ensure I make faster, smarter decisions on the day of service, on the minute of service?’”

Despite the influx of new disruptive technologies – such as AR – Karni is aware that the main beneficiary has to be the end-user, the customer. “Everyone talks about the current trend in field service, which is AR. But if you ask ‘why are we using this remote technology’, it is ultimately to create a better first-time fix. A first-time fix rate is the metric that combines efficiency and productivity with customer experience. “You’re not adopting something for the sake of the technology. You need to have a very strong business case with savings. This is what is unique about field service management applications is that it needs to find the balance between time and cost savings while creating better customer service. If it was only a one-way thing it would not be such a valuable asset,” she says.

I push Karni on the role of the asset: the wind turbine, the air conditioning unit, the washing machine. When does it become more important than the engineer? “There is no replacement for the human touch,” she pauses again. “There is, however, a replacement for the process.

“If you can fix something remotely and it’s not a problem and it will smoothly recover, then I don’t see why the customer wouldn’t be happy because the washing machine is fixed. Having said that, if you fix something sophisticated and there is a break-down, I believe there is no replacement for human experience.”

Finally, as waiters circle impatiently around us to prepare the table for the next coffee break, I ask Karni, who has been with Click Software over ten years, why she enjoys working in the field service sector. “As I said, everyone talks about machine learning and AR but,” she says. “But when it comes to field service it’s real. It’s actual technology that serves a use-case and a business value.”

She finishes her cappuccino. “We make a difference I think, and this is what I like about what I do.”