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Kris Oldland, Editor-in-Chief, Field Service News talks to Deputy CEO and COO of Polygon a company with over 3,500 field service engineers, about how his organisation has evolved over the last decade, the shift towards advanced services that has come from that evolution and how a close working relationship with Enterprise Service Management solution provider IFS has empowered their ability to develop and advanced services approach to field service delivery.

 

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Resource Type: White Paper
Published by:  IFS
Title: Digital Transformation and enterprise service management - what's next?

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Want to know more? This white paper is available to Field Service News subscribers but if you are a Field Service Professional you may qualify for a complimentary industry practitioner subscription! Click here to apply for a subscription now and we’ll send you this white paper to your inbox now instantly as a welcome gift!

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Synopsis:

Digital transformation is the predominant trend impacting today’s global business. Broadly speaking, digital transformation speaks to the changes produced by the application of digital technology to society at large—just walk down a street or go into a coffee shop and look at the eyes focused on the ubiquitous smartphone.

But for business, digital transformation goes beyond the tactical application of technology—something that has been happening in enterprises for years—to the strategic incorporation of digital technology as the very basis for competition. It is transforming business models by speeding innovation and making ongoing practical gains in operational efficiencies, product design, development and delivery, and customer relationships. It’s changing the way companies think about coming to market.

In this age of digital transformation, the old methods of service simply don’t apply anymore. World-class organisations must now anticipate service needs before they manifest as problems by taking a proactive approach to service delivery. To be sure, the technologies driving the digital transformation are both ratcheting up the pressure on service while providing new opportunities. Those companies looking to what’s next as service continues to evolve will benefit greatly as the digital transformation continues.

Overview

The white paper focusses on three core elements of digital transformation in a field service context:

Impact of Digital Transformation on Field Service 

For service providers, the digital transformation will mean increasing competitive pressure in terms of time to response. At IFS, we believe there will be a rapid escalation in response time competition across the service provider industry. Response times are shortening because of customer expectations, technology capabilities, and competitive pressure .

Because of the disruptive nature of technologies such as IoT, the change will not be incremental. I

f your current response time is a week, it’s not enough to reduce it to six days. It will have to be a more dramatic reduction, and those that move first will have an advantage. Expectations are changing from days to hours or minutes, and those that are left behind will lose business.

Supporting the Digital Transformation in Service

A company pursuing digital transformation must have tools that allow executives and managers to review and orchestrate processes that align with their business strategy to ensure process execution delivers that strategy.

This means bringing data to the desktop, visually, to provide decision makers a complete understanding of which functions deliver real customer value, which are less effective, and which waste both time and resources in terms of meeting organisational goals. Ultimately, this enables businesses to accelerate the realisation of their business strategy—in this case, by moving to become a digitally transformed business—by making better decisions, faster.

 

This can happen by assessing real-time business performance in the context of how it affects key business processes and goals, giving managers real-time operational intelligence and actionable controls to solve issues before they become problems. The solution is about strategy acceleration and execution.

What's next?

A recent report on the state of digital transformation had some interesting results: 88 percent of companies surveyed said they were undergoing digital transformation efforts, but only a quarter had an understanding of what it is.

The challenge creating this gap, according to Forbes, was not investment in technology but rather the realignment of business models to reflect the transformation being sought. This underscores the point made by IDC: digital transformation is not just a technology trend, but rather a core business approach at the center of enterprise strategies across all industry segments and markets.

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Want to know more? This white paper is available to Field Service News subscribers but if you are a Field Service Professional you may qualify for a complimentary industry practitioner subscription! Click here to apply for a subscription now and we’ll send you this white paper to your inbox now instantly as a welcome gift!

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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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