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In a world of digitalisation, servitization and a data driven economy, the fulcrum at the heart of your service delivery needs to be digital people writes Nick Frank...

Over the last three years there has been a huge emphasis on the need to invest in technology to stay ahead and be the disruptor.

As many leaders struggle to move towards the enticing digital visions being painted, we have seen a more nuanced approach emerge. We perceive that leaders are switching their emphasis back to creating a solution focused culture where people have the imagination and customer focus to create and deliver new value offered by digital technologies.

In the coming years we believe we will see companies focusing on three areas in the growth journey: 

1. Digital Servitization: the notion of digitising the back-office processes and enabling data capture in the product infrastructure to enable new value through services
2. Data Analytics capabilities: Turning the data into insights through being able to turn Business Problems and opportunities into Data Solutions that leverage their company unique knowledge.
3. Trusted Advisor Mindset: Having the trust of customers and the communication skills to turn intangible data into valuable actions that drive growth.

Digital Servitization
Now more than at any other time, businesses are focused on how to use shifts in technology to reduce costs and find new value propositions. But understanding how it all fits has proven more elusive to business leaders. Those that are making most progress have broken the Digital Transformation process into more meaningful chunks. They typically have two areas of focus:

1. Installed-Base Digitalisation:
Designing the products and supporting operational infrastructures that generate data, so that it can be collected, analysed and then monetized through service-based business models. Generally, investments have been made in: 

• Technology that enhances the product and company infrastructure to enable Digital Support, such as remote data collection, diagnostics or predictive maintenance.

• Capabilities and technologies in the organisation that enables Data Analytics, such machine learning, visual analytics and business intelligence technologies. 

 

2. Back-Office Digitalisation: 
The tools we use to manage our business back office which sustain and improve margins /profits. Examples might be Service Management solutions, CRM and ERP. Generally, there are two aspects to consider in terms of system and process development:

• Technology that enhances the product and company infrastructure to enable Digital Support, such as remote data collection, diagnostics or predictive maintenance.

• Capabilities and technologies in the organisation that enables Data Analytics, such machine learning, visual analytics and business intelligence technologies. 

Only when companies have reached a level of maturity in both Back-Office Digitalisation and Installed-Base Digitalisation, are they ready to, explore new business models such outcome based or subscription based services. 

Data Analytics Capability - Business problem before Data Solution
The use of sophisticated Data Analytics technologies to gain insights into processes and product performance is slowly becoming part of management thinking. But again, progress is slow as many leaders are intimidated by the jargon and lack of understanding of the business case. We have found successful companies have followed these three steps: 

1. Articulate the business problem to solve and why (Value)
Before investing in digital technologies, the most successful companies have a clear idea of the business problem to solve and the value it can potentially bring. Often there is some experimentation/prototyping that may occur to build knowledge of the business problem and confirm value. They look wider than their own business processes or customers processes, the hand-offs between the different stakeholders in their value chain. Often, they will use ecosystem analysis, the value iceberg principal or points-of-selling approaches to identify value opportunities.

2. Define the Data Problem
The next challenge is how to turn the business problem into a business data hypothesis. This would describe an expected or speculated relationship that we hope to determine through the analysis of data. For example, the hypothesis for a predictive maintenance solution might be: ‘We can identify the failure patterns for hydraulic system as well as general machine performance using pressure, oil contamination, temperature and humidity data from the PLC, such that we can predict failures and recommend corrective actions.

Why is this important? Data Scientists cannot tell you patterns that interest you without knowing the area of interest! Hence converting the business problem into a hypothesis is a key part of the process and applying the scientific method which is question led and iterative. But the hypothesis does not have to be correct.

It is very likely that it will change as more knowledge is gained about the data being analysed or definition of the business problem evolves. One must expect a certain amount of iteration from business problem to data problem as our knowledge expands, and this in turn helps deliver optimal business value. It is critical to be very clear about the business problem and the data required to understand it.

3. Pilot before Scale Up
Now that the data problem is defined, managers can understand where they may have organisational and infrastructure gaps for their project, and from this be able to identify the first steps of their roadmap to a data solution. It is important that these early steps include a pilot of the solution. The goal is to quickly understand if our solution is likely to be successful, and the actions to be taken to scale up across the organization.

"Over the last three years there has been a huge emphasis on the need to invest in technology to stay ahead..."

Often in business we take it for granted that we have all the capabilities in house. However, in today’s world, where the use of technology is rapidly evolving, it is very easy to become ‘out of date’ from both a business mindset as well as technology capability.
To help leaders understand the strengths and weaknesses, Si2 have worked with The Data Analysis Bureau to develop a short 10 minute maturity self-assessment which will you help you identify your strengths and weaknesses as you move from Business Problem to Data Solution.

There are just 10 questions and you will get personalised feedback as to your situation and what you can do. Use this link to access the assessment.

Trusted Advisor Mindset
The biggest enabler of the ‘digital’ ideas we have discussed is not so much the technology but the mindset of your people. The Trusted Advisor mindset is more than just being able to talk to the customer, solve problems and sell ideas. It is a whole attitude where we focus on solutions, continuously moving customers towards their goals whether they be internal or external.

This is the type of mindset that has leapt onto the potential offered by digitisation, long before it entered the language of today’s business. Trusted Advisors have clarity on their role and an understanding of how to talk to customers so that they achieve a WIN, WIN, WIN:

• A Win for the customer so that every conversation they have moves them closer to their goal
• A Win for the company to develop customer loyalty and profitability
• A Win for themselves so they feel great about their job

What makes a Trusted Advisor different? At the very minimum they are good customer problem solvers. What starts to differentiate them from others is their ability to have meaningful conversations with customers that always seem to move towards solutions. They are able to provide options together with the benefits for various decision the customer might make.

They normally have a high level of personal maturity in that they do not try to tell customers what to THINK. Instead they influence them by what they SAY and DO, and because they consistently deliver, customers trust their advice. As the notion of a Trusted Advisor is widely used across sales & service, the job context is extremely important.

For example, in field service and technical support the Trusted Advisor role is more about providing options than closing deals. Whereas in sales it is more about how we build rapport and credibility within a consultative selling process.

Clearly understanding the context in which the Trusted Advisor mindset is being developed is vitally important to successful adoption. Service leaders who want to improve how their teams communicate with customers, might consider having the following conversations with their own people:

• Clarify what you mean by a Trusted Advisor and the role they play in your organisation. In particular the customer needs and what makes them successful, as well as your companies business goals. This is where distinguishing the difference between selling and advising will be absolutely critical to your success;

• Develop a Mindset where every conversation we have with customers moves them a step closer to their goal. It may not be the complete solution, but it is a step in the right direction no matter how bad and uncomfortable the situation is. This very basic philosophy is key to training your people to deal with conflict, as well encourage them to have dynamic and collaborative relationships through solution orientated language;

• Provide Tools and methods that allow us to actively listen, to talk more effectively, to manage conflict and resolve difficult customer situations. These tools are critical to helping us to prepare ourselves to be a Trusted Advisor in what can be challenging and stressful situations;

• Practice in real-life scenarios with your team to see how they react under stress. We are constantly amazed at how confident many service people are about talking to customers in a training environment, yet it all falls apart in a customer situation.

• Refresh: Developing how your team interacts with customers is not a one-off event and needs to be constantly mentored and coached.

Digital People Increasingly we anticipate that Service organisations will take a more balanced approach to Digital. Yes, they will invest in the technology, but they will do so with a clearer idea of the value they are trying to capture. They will understand that the key to new business models will be to have automated their back-office processes as well as how to capture and action data from the product infrastructure. They will increasingly focus on developing a solution orientated innovative culture which is the key to leveraging the opportunities offered by new technologies and paradigms of thinking.

Nick Frank is Managing Partner at Si2 Partners. If you would like to talk more about any of the topics discussed in this article you can contact him at nick.frank@si2partners.com.

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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Kris Oldland, Editor-in-Chief, Field Service News talks to Coen Jeukens, Chief Service Officer, D-Essence who was the Chair at this year's Field Service Forum hosted by Copperberg about the key themes of Agility and Disruption in Field Service

 

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Jeff Bird, Customer Experience and Analytics Consultant, Capgemini, outlines what he thinks the future holds for the field service industry.

The customer centric business models of today are geared up to meet the ever increasing needs of customer service from buying to after sales care. It has never been more important for businesses to wake up to digital disruption and have an edge on their competitors by being innovative.

Retailers have recognised that it isn’t just about offering a digital presence either; the traditional way of buying physically in the store is as strong as ever. Companies on the high street are realising that it is the connected blend of services being offered to consumers through mobility which is becoming the differentiator.

Once those giant leaps of transformation have been made it then remains a question of how to evolve further, providing the after sales service they desire. This is where a proactive customer service comes in, anticipating a problem before it has started and offering them a service before they come to you – it’s all about showing them how much you want their business and loyalty.

Field service and customer care, which helps to maintain the customer relationship, is providing a service to a business/consumer that predicts what you want and when you need it from its existing services. Over the years the role of self-service has had a positive effect on the way we communicate with organisations, now with 24/7 as opposed to business opening hours, the business/consumer has the power to take control and be kept updated on their status when they want it.

A brave new world in field service

The service model has now shifted from a supply (vendor) and demand (customer) to a new world in service management.

Traditionally in a business, if something breaks down, let’s say a vending machine (yes, the thought of employees not being able to grab a daily fix of chocolate on a break is important, you know). This would involve calling the supplier to report the problem or that stock needed to be replenished, but this has all changed.

New advances in Machine–to–Machine (M2M) software has revolutionised field service by use of wireless technology, to send signals back to a host that would alert them if there was a fault that needed repairing or it had run out of stock. For businesses, this is ideal because it not only takes away the strain and time required to report to a vendor, but it offers the company and their staff round the clock service. If that isn’t enough, there are also touch-less vending machines that use motion recognition devices to interpret user hand signals to indicate what products they want. Thanks to wireless technology, there are even machines that allow users to purchase products by sending text messages from their mobile phone and its all part of the service.

 

From a consumer perspective, the needs of customer service have never been greater. The opinion of service after a product has been bought can strengthen preference or loyalty to a brand.

Although the link for the individual consumer in field service has yet to be fully recognised, new innovations have delivered smarter technology to improve the customer experience. We   experience this in our everyday lives from using mobile apps to record TV programmes or sending a command to a washing machine to run a chosen cycle. By using an app to program washing, users have remote control and visibility which gives them an insight into the progress of the wash. Within the same app, users can also be notified to identify minor problems that they would be able to fix without the need to call out an engineer.

New service, new opportunities...

With the new reach of technology in the field comes new opportunities for the vendor supplier or company to improve their customer service by:

Using mobile software applications - the vendor supplier can now take advantage of getting up to date information from any one of their products being used by the customer. This enables a faster response to manage fixes, scheduling in a date to visit or the anticipation that a routine appointment is due for its customer.

Onsite representatives making a difference - whilst on site the value added opportunity is for its representative to train staff there on how a problem can be dealt with and sharing knowledge of up to date work instructions as a visual. Growing this type of trusted relationship also has its benefits. A repeat business customer who is happy with the service is more likely to be engaged in an upsell of a product or repeat business.

Cutting out the paperwork - enabling the use of smart devices for field representatives while working remotely also brings with it the opportunity to renew contracts and services electronically sooner and keep the competition at arm’s length.

Better understanding of the customer needs - with new technology comes the ability to understand customers better, insights into their buying behaviour and what products suit their needs over a period of time. These are essential metrics to reap the rewards of repeat purchases.

What will the future hold?

Within a customer service model, companies will see the continuing benefits of managing their customer’s activities through connected channels. The hub of this, likely to be the contact centre will incorporate the field service as part of the profile of a customer in one omnichannel experience.

To achieve that, companies will need a knowledgeable workforce to manage it. This was recently evidenced in a Salesforce connected manufacturing service report. Executives within that survey ‘understood the need to adopt new technologies into their field service departments, as more than half (52%) say it is very important for drivers or field service agents to be able to incorporate new technologies into their service activities’.

 

Bringing a service to the customer and using new technology to empower field representatives will enhance the customer experience but the challenge will be transfer of knowledge from one generation to another. Companies should act now to train and manage this space of learning. The resource challenge of field staff will be another factor but will be countered by the use of GPS tracking service software  and the continuing increase of customer self service knowledge.

Bespoke services, such as Bouton Darcy®, are already trailblazing the next generation of instant support to customers through their after sales offering.

To serve or not to serve?

We know that companies who fail to serve their customers and are not proactive are losing loyal customers. In field service, companies now have a chance to increase loyalty through new technology and be part of a great customer care experience. Is your organisation only thinking about this or doing it right now?  Imminent action is needed to sustain businesses and deliver customer’s expectations.

 

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