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As service becomes a core differentiator amongst competing for business the ability to sell the value of service is an essential facet of modern business strategy. Bill Pollock, President of Strategies for Growth discusses the nuance of marketing the value of your service and how to get it right...

Most of the customers comprising your Field Service Organisation's (FSO) customer base probably already love your organisation, and its products, services and support! But the rest of the marketplace may not even know you exist! All things considered, if you can get the rest of your targeted market to become just as aware of your organisation as your customers are, you may find that selling to them is easier than you might think!

Any marketing expert will tell you that a service organisation's market awareness and perceptions are among its most valuable assets, but that they each require high levels of maintenance and a great deal of attention. However, unlike other important contributors to an organisation's overall economic well-being, market awareness and perceptions are almost always entirely out of its control, except for the ability to continually attempt to shape, nurture and cultivate them in the eyes of the marketplace.

Two Alternative Market Awareness and Perception Scenarios

There are basically two alternative scenarios where your organisation may operate in today's marketplace. The best way to explain them is to present two side-by-side examples for the purposes of comparison:

Example 1: An FSO with 100% Market Awareness, and a 10% Market Share

In this first example, the organisation has near total awareness in the marketplace (i.e., virtually 100% name/brand awareness or recognition), with an approximate 10% market penetration rate, or share. In other words, in the marketplace in which it presently serves, virtually all of the potential customers know who the company is, but only 10% choose – for one reason or another – to become a customer. The net result is that of the 100% or so of the marketplace that is aware of the business, only 10% have been “converted” to customers. This is not a bad “conversion” rate, but there is nowhere else to go! The market potential for the FSO is already saturated! Basically, everyone is already aware of the company, but 90% of the universe has decided not to go with it.

Example 2: An FSO with 25% Market Awareness, and a 10% Market Share

A second example reflects an organisation with only one-quarter (25%) of the market awareness manifested in Example 1. However, the organisation has been able to successfully “convert” 40% of those who are aware of its offerings into customers – virtually four times the “conversion” rate of the organisation in Example 1. What’s even better is that – all things being equal – once the remaining three-quarters of the market is made aware of the company's products, services and support (i.e., through ongoing marketing and promotion, telesales, etc.), it will also be likely to gain up to a 40% market share before its market potential becomes "saturated".

Of the two alternative examples, Example 1 is clearly less attractive in that although nearly everyone knows who you are, your market penetration – at roughly 10% – remains fairly low. In this case, the only way to gain increased market share is to “re-educate” your non-customers as to who you really are with respect to your overall image and value proposition. The problem is, however, that they may already have formed negative perceptions of your organisation, and once formed, a negative image becomes very difficult to change.

Can you honestly say that a majority of your targeted marketplace has a clear, accurate and complete awareness of who you are and what you have to offer?Example 2 is a much better situation since the organisation is experiencing a much higher customer “conversion” rate (i.e., 40%, compared to only 10%). In this case, the best way to increase overall market share is to also make the organisation's name known to the “other” three-quarters of the marketplace through targeted marketing and promotion. Again, all things being equal, there will be a strong likelihood that the same ratio of customer conversion (i.e., 40%) will also apply to this "new" market base – thus leading to a potential quadrupling of the historical market share (i.e., from 10% to 40%).

In which of these two alternative scenarios is your organisation presently operating? If it is the first of the examples, then you will need to embark fairly quickly on an intensive market image reengineering, re-education and enhancement effort. If it is the second, then the primary focus should be on increasing overall market awareness – and this is typically much easier than trying to "re-educate" a market base that has already made up its mind!

The questions to ask yourself are: “Can you honestly say that a majority of your targeted marketplace has a clear, accurate and complete awareness of who you are and what you have to offer?” and “Is it possible that once an expanded market base learns about you, that they may be just as likely to become customers as your already "aware" market base?” These are key questions that should require honest answers!

Merely tracking trends in your organisation’s market awareness and perceptions over time does not, in and of itself, provide you with the information you will need to improve your overall market image and share. However, without doing so, you will not be able to effectively identify where you strengthen your ongoing marketing and promotional campaigns, or where you can most successfully identify and cultivate new business development opportunities.

The results of a targeted Market Awareness and Perception study, converted into a practical tactical action plan, can provide the organisation’s management with all of the tools it requires to work immediately toward increasing existing levels of market awareness; identifying areas of awareness and image requiring further strengthening; improving its perceived market position within its targeted marketplace; and lead to the cultivation and development of new business opportunities.

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Despite huge leaps forward in technology coming at us left right and centre, the companies that will get the most from a process of digitalisation are those that keep fundamental, traditional values of putting the customer first at the core of their ethos writes Nick Frank, Managing Partner, Si2 Partners.

Those companies that are successful in implementing a digital-led growth strategy don’t bother with the jargon of the moment!

The leaders in this field start with the basics – a deep understanding of their customer’s problems and then work backwards to offer solutions that create value or reduce risk. As part of the journey, they look hard at their own DNA and take action to fill their capability shortfalls. They identify the actual data they need and then automate the data collection/analytics process to deliver scalable solutions.

Businesses starting this shift to service led growth would do well to note that successful companies do not focus on the rhetoric, but rather have an intense obsession with how to make their customers more successful. The lesson to be learned is using the latest jargon does not put you ahead of the game. Believe this and you might not realise that you are leaving your business ‘naked’ to competitive actions, just like the emperor in the children’s story.

In the last year, I have heard this same story time and time again. At the recent After Market conference in Hamburg, we heard speakers from SKF, Outotec, Caterpillar and Serco tools all starting with the customer problem, defining the customer pain map in terms of real money.

Talk to experts in machine learning or knowledge management and one hear’s exactly the same story. Start with the business problem or the KPI and then work back to the data solution. For some, this means adding services such as analytics or remote access to products to create customer value. Others go further and no longer sell a product but an outcome such as leasing a tractor unit of a truck by the mile.

In all the success stories there is a common theme. Each company is able to articulate in terms of money, why their customers should buy their solutions.

They almost all do this following what I call the Value Iceberg principal.

The cost of the product or service you provide can be clearly seen above the waterline.

However, from the customers perspective, there are many other costs within their business below the ‘waterline’. Some are easy to define such as labour, material throughput and energy. Others are much harder such as overheads or obsolescence. And then there is RISK and UNCERTAINTY that are extremely intangible and frightening when quantified, but which have a strong emotional impact on companies buying decisions.

The most profitable manufacturing companies understand the iceberg very well. By adding services to their products and creating integrated solutions, there exists a huge opportunity to capture more value that is hidden deep within the customers’ business processes. Take the truck example. The tractor unit represents maybe only 8% of the annual running costs. Below the waterline 50% of the operating costs is the fuel used, 25% the driver and profit accounts for perhaps 2-3%.

Over 20 years ago, MAN truck’s UK distributor identified this value and added maintenance services to their portfolio that were designed to reduce fuel consumption by 10% and so double the profitability of a tractor unit over the year.

Using telematics technology in the cab, they were able to manage the running costs so well, they could shift their business model to effectively lease trucks by the mile. The resulting value argument was so compelling, that over a 20-year period their business grew from £50M to 550M. The other OEM’s are now following!

For leaders of change, this deep, almost obsessive understanding of customer value, gives them the confidence to know in what businesses and technologies to invest. It allows them to understand whether customers can afford more outcome-based services and how far their business should move along the Product to Service continuum.

This value-based phenomenon is also very real when we start to look at the UK macroeconomic viewpoint. When we redefine manufacturing as a product plus associated services, a 2016 study by Cranfield University estimated this to make up 16.8% of the UK Gross Value Added(GVA) versus the traditional definition of manufacturing at 10% GVA

Perhaps this realization that our view of manufacturing is fundamentally changing, is the reason why many people focus on the digital or IR4 technologies, forgetting that these are only enablers of change. In most part, it is through services that the technologies add new value and not the other way around. But sadly many companies have yet to grasp this notion. The reality is that unless they do, many players will be left wondering why digitization and IR4 have never quite delivered on the promise!

If you would like to know more about your Value Iceberg to drive your investment priorities, then you can contact Nick at nick.frank@si2partners.com

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Jan Van Veen, Managing Director, moreMomentum, continues his exclusive series for Field Service News exploring the ‘4 Winning Habits of Long-Lasting Achievers in Service’ and looks at the importance of the third winning habit: Decision-making.

Common mistake: Dismissing employees to take ownership

During the last decades, if not centuries, it became a habit to have all important decisions in companies made at top management levels. The assumption traditionally is that this is where the skills, expertise and overview are to make the right decisions. The aim was to increase control, predictability and stability. This used to work fine in most sectors as they were fairly predictable and stable.

However, a lot has changed. Lifecycles of products, services and markets are shorter, changes are quicker, new trends and the future are less predictable, and the complexity of running a business has increased dramatically.

In more industries, companies are suffering from lack of adaptability and agility and falling behind the competition.

Here are a few symptoms we see from the traditional top-down management habits:

• Someone in the lower ranks who sees a threat or opportunity and wants to act on it first needs to discuss this with higher rank management to get their approval and buy-in/decision. There is a challenge that many initiatives face for the attention and favourable decisions from top management. These politics can be frustrating for employees.
• The time of decision-making by higher management is becoming scarce in the critical path for most initiatives. Necessary decisions are being delayed or being made without the attention required.
• The quality of decision-making suffers from inadequate information. Observations and information about threats and opportunities do not flow through the organisation quickly and accurately enough.[/unordered_list]

The solution: Unlock the huge decision-making power throughout the organisation

Leading companies have tremendous power, speed and responsiveness due to the following effective habits on decision-making:

• Top-down and bottom-up strategies and roadmaps
• Effective and efficient decision-making
• Full transparency

1.     Top-down and bottom-up strategies and roadmaps

Maintain an overall strategy and roadmap

The overall strategy and roadmap defines the changes required in different phases to achieve the envisioned future. It clarifies the focus and ballpark figures on key metrics towards the envisioned future. This provides a clear picture of the direction required for all entities of the business to shape their own role, contribution and strategy.

Typically, the leading companies have competence centres for various topics which provide best practices, frameworks, benchmarks and advice to the entities in order to develop and execute their strategies.

Each entity has its own strategy and roadmap

Based on the overall strategy and roadmap, each division, subsidiary and department maintains and executes its own specific strategy and roadmap. They own their plan and are fully accountable for the progress and results.

Larger organisations have a cascade of several levels of sub-strategies, which can contain dozens or many more sub-strategies.

Focus on “new”

Within most successful companies, the strategy and roadmap is about moving towards the future. It’s about doing new things and doing things differently in order to achieve new performance levels and future success. An excel-sheet with numbers, for example, does not achieve this purpose on its own.

2.     Effective and efficient decision making

Many business leaders fear that decentralized decision-making leads to chaos and that control mechanisms are needed to prevent this. Most companies still use traditional “plan & control” mechanisms which require complex, expensive and time-consuming coordination systems.

The following practices ensure that decentralized decision-making is powerful and secures performance;

Structure of decision making units

Every team fits in an overall structure of roles and responsibilities with clear objectives. Each team develops, maintains and follows their own strategy which contributes to the overall strategy and roadmap.

This provides clarity to everyone who decides on what, and how, decisions relate to each other.

Decision-making protocol

Every team follows a decision-making protocol which provides guiding principles and rules on;

• How autonomous the team is for the different domains that make decisions
• How to align with other stakeholders
• How to handle objections from stakeholders, depending on the impact this might have for other stakeholders and/or the organisation as a whole
• When decisions have to be handed over to other decision making units[/unordered_list]

Some decisions hardly have an impact on other teams and can therefore be made autonomously.

Other decisions have a minor impact on the work of other teams. These other teams are informed about the decision, how this will impact them and how they are expected to adjust. The other teams provide feedback and suggestions, however it remains up to the deciding team how they incorporate the feedback and suggestions.

Some decisions could have a major impact on other teams or the organisation as a whole. For these decisions, there is a protocol in which other stakeholders can raise objections that need to be processed adequately. In some cases the decision has to be handed over to another team who has the responsibility of the bigger picture.

3.     Full transparency on performance and financials trigger crucial initiatives

In many organisations, the flow of information is limited because of lack of information systems, defensive behaviour, limited willingness to openly share and too little interest in the overall picture. As a result, people miss opportunities and make wrong decisions. This reduces collaboration and initiatives throughout the organisation and increases resistance.

Constructive and well informed dialogue, strategy development and decision-making require that everyone has the same, and adequate, information about results, failures, progress, opportunities, threats, trends and practices.

Leading companies are transparent about the following:

• Financial figures of the entire business, as well as the different entities
• Progress of projects and initiatives
• Challenges or issues they are facing, including failures
• Customer feedback
• Decisions
• Practices or processes[/unordered_list]

Benefits

The benefit of encouraging decision-making throughout the entire organisation is that, on all levels in the organisation, teams and employees have engagement and ownership. They aim higher, pursue more opportunities and achieve more. Decision-making is faster, more responsive, has higher quality and is executed quicker.

The result is that the business is more adaptable to changes and therefore performs better today and will also perform better tomorrow and further in the future.

The Essence

If we think that it’s about control, stability and predictability, then we’ve missed the point! It is about thriving in a changing and unpredictable world, full of opportunities that we need to discover. It’s about passionately exploring, developing, learning and discovering what works, and what doesn’t work.

‘Magic’ happens when you bring together business innovation and employee development and empowerment.

How well has your business adopted the 4 Winning Habits?
Discover your momentum for innovation and change with the online Momentum Scorecard find out more @ http://fs-ne.ws/mpKJ30ibWsb

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Alastair Clifford-Jones, CEO of Leadent looks at how the focus of field service is shifting towards driving strategy rather than being a recipient of it...

The holy grail for field service managers has been to reduce costs whilst maintaining customer service levels; effectively meeting SLAs at the lowest possible cost. This is still important, but the focus is changing. Field service is moving into a space of key importance, driving strategy rather than being a recipient of it.

All markets are now impacted by this change. Looking at the consumer market there is so much information for consumers; independent websites that not only compare products but also services, and these naturally impact buying decisions.

Research has shown that many customers won’t switch until they have had a bad service experience.It’s now easy in the UK, with the deregulations of the Utilities market, for consumers to switch suppliers. Research has shown that many customers won’t switch until they have had a bad service experience. On the other hand, customers will switch if the price differential is greater than 20%.

The cost of bad service really impacts an organisation’s profits. In a recent Harvard Business Review report; a 5% increase in customer retention results in a 25%-95% increase in profits. This becomes more important to the service organisation as products become less differentiated on functionality.

In light of new technology, and the change in consumer behaviour we at Leadent have developed a maturity model which I introduced in an earlier article for Field Service News. This model (see diagram below) not only measures where organisations are positioned currently, but what they should aim for by demonstrating the key characteristics an organisation needs.

Whilst it’s an organisational model, technology and processes still need to be implemented, and cultural change cannot be underestimated. So let's explore each of the three stages...

Chaotic Survival

This is the embryonic phase, often referred to as JFDI.

Everything is reactionary, heroes in the business are the people that get things done. Someone that fixes a water leak at three in the morning gets the company award. All the processes are desperate, and much of the knowledge about how to do things are in people’s heads.

The level of ‘Chaotic Survival’ can often be measured by the noise in the dispatch office and the number of calls made to the field and customers.

Initially, the workforce is seen as a cost, and any case for change is usually based on a cost reduction program by streamlining processes and the introduction of scheduling, albeit a manual tool.

Whilst many companies have moved beyond this stage, it is surprising how many organisations have not. Moving out of this phase is probably the most challenging in terms of people. Field teams need to be managed and dispatchers need to allow technology to make decisions. The world is littered with organisations that have failed to develop, those who may have implemented a technology solution but not the new processes, organisation and skills required to make this step.

Supply Led

This phase starts building the groundwork for excellence.

The technology both in scheduling and mobility starts to connect the organisation together. Silos, which were in the previous phase are dismantled and the organisation becomes more collaborative. From a business perspective, this is when customer service and field operations often become part of the same entity.

Rather than responding to customer needs in a reactive fashion, the company can start to become more proactive. Planned maintenance, if applicable, gets built into the schedule. Customer service levels can be monitored and informed decisions made in terms of minimising costs but maximising the customer service levels.

The field force, hitherto considered as a cost now has more flexibility and starts to drive a competitive advantage. Whilst we see these organisations becoming more collaborative internally they are still not working with customers and suppliers in a truly collaborative manner, and this is a huge missed opportunity.

Demand Led

The holy grail. This is the phase where technology and the right organisation can really disrupt the industry and organisations can leapfrog their competitors. Field service starts to drive the agenda, drive the strategy. The organisation no longer is a recipient of customer demand and fulfils these in an optimum manner. Processes are no longer just contained within the confines of the enterprise but are built to include customers and suppliers.

This is the new ‘battleground’ for field service and technology has made it possible. By putting the customer first, they have control. They can book appointments through multiple channels and based on their preferred choice. They have full visibility of the processes, and in many cases, can actually solve the problem themselves.

The suppliers are able to understand how their products perform in the field and feed this back to the manufacturing processes.

This is the new ‘battleground’ for field service and technology has made it possible.

IoT is a reality and no longer a pipe dream of visionary consultants, and it enables organisations to truly predict failures, determine preventative maintenance schedules and offer a level of service which exceeds customer expectations at a substantially lower cost.

This does, however, require a very different way of thinking and a true cultural shift. To be in this phase you need to have an organisation which thinks differently, embraces technology and one that really understands the customer.

Summary

In summary, the new world is exciting.

It’s even making field service seem ‘sexy’, but most of all digital service (an often misused term) is truly disrupting the industry. It is technology driven, but the companies that will be able to exploit this will think differently. They will think about the end to end processes from manufacturing and the whole customer journey; from making the purchase decision to disposal.

This needs an organisation to not only break down internal barriers but also external ones.

Given that each phase of maturity requires changes in culture, it would be very hard from an organisation to move from being ‘adhoc’ to ‘predict and engage’ in an instant as each phase is a building block for the next. However new entrants to the market can start on the right-hand side, and this is where organisations which don’t develop will lose out.

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GE Digital's acquisition of leading field service management solution provider Servicemax just over a year ago sent shockwaves across the industry for multiple reasons.

Firstly, in an industry that has been going through a spate of acquisitions over the last two years, the amount was quite simply eye-watering and just blew everything out of the water. Secondly, this was an acquisition that came right out of left field. Many analysts may have predicted that ServiceMax would eventually be acquired having been the industries biggest success story, but few would have suggested that an industrial force such as GE may have been the suitor that would become their new home. Kris Oldland, Editor-in-Chief, Field Service News, spoke exclusively to the senior players at both ServiceMax and GE Digital to find out how things are bedding in...

When the ServiceMax from GE Digital train rolled into Berlin towards the end of last year for the European leg of their series of Maximize conferences, there was an exciting mix of vivacious confidence between the ServiceMax team and keen curiosity and anticipation between the delegates - who were in the main ServiceMax customers.

Of course, this was to be expected - as it is at such events that ServiceMax have traditionally announced their latest developments and outlined how they had refined their roadmap. In past iterations of the conference, we've seen ServiceMax announce a number of industry firsts including the announcement in 2016 of Field Service Connect - which essentially established a blueprint for the role field service management systems will play in our sector adopting IoT that is being mirrored by a number of their peers.

And that's not to mention the little matter of GE Digital's acquisition of ServiceMax for an incredible $900Bn which was announced just days after 2016's Maximize Europe event in Amsterdam.

With just over a year having passed it was a perfect time to see how well embedded ServiceMax had become within the GE Digital machine, and just how much such significant investment had changed their vision for the future of both their organisation and of field service delivery itself.Indeed, with just over a year having passed it was a perfect time to see how well embedded ServiceMax had become within the GE Digital machine, and just how much such significant investment had changed their vision for the future of both their organisation and of field service delivery itself.

Having spent a lot of time with Yarnold and his senior team over the last few years, one thing that has always come to the fore was that there was an inherent understanding of what excellent service looked like, and the ServiceMax vision was always about trying to develop the tools to make meeting standards of service excellence that much easier.

I recall speaking to Yarnold in 2016 about the ethos of the company, and he explained then how they felt that most of the technology in the Field Service Management sector was  geared towards taking cost out. What they realised very early on into their journey to becoming a leader within the industry was that there was a critical emerging trend - companies who were building products were experiencing much faster growth in the services side of the business than the product side.

We focussed on helping companies to grow their service business as opposed to squeezing their technicians for more productivity - which is still where most of the technology in our space is focussed"So we focussed on helping companies to grow their service business as opposed to squeezing their technicians for more productivity - which is still where most of the technology in our space is focussed" Yarnold had stated back then.

Of course, this approach has become widely embraced by most of ServiceMax's peers as solution providers realise that most companies now have at least one foot planted firmly in a service-centric world and as concepts such as servitization and outcome-based services go mainstream.

However, while there is no denying the prescience of Yarnold and his team's approach, until last year they were always just an observer of trends within the field service sector, only experiencing them indirectly via how they impacted their client base. But now as part of GE, an organisation that has something upward of 40,000 service engineers in various different divisions and across multiple sectors globally, they now have a direct line into a wealth of field service directors that are all on the same team.

I was curious as to what if any impact this would have on ServiceMax regarding how they position their worldview on what great field service looks like. In his opening address early that day Yarnold had touched upon shared learnings - so was it a case of their previous assertions being validated? Or was there an element of identifying essential details that could only be seen when one is embedded that little bit closer to the actual coalface?

"It is a bit of both" responds Yarnold. "We are part of GE Digital which has the Predix platform and then these application areas APM and ServiceMax, and we are separate from the rest of the GE business which are the industrial business units such as Oil and Gas, Power Generation and Healthcare and so on. Each of those business has their own field service operation, and each of those businesses is rolling out ServiceMax. So we're not part of the organisation, but we have the home team there to draw on."

To bring this message to life Yarnold recounts how before the acquisition Sharma, who at the time was the CIO of GE's Oil and Gas business had been a somewhat challenging customer, but once they were on the same side of the table the value that ServiceMax brought to the table was revealed to actually be hugely valued. "I do wish he'd maybe told me a bit sooner'' Yarnold said playfully which brought a warm laugh from Sharma - and in this brief exchange, the camaraderie and trust between the two were immediately brought to the fore, something usually found within relationships built on a mutual respect.

It's been a good balance so far, and we're just starting to tap into that knowledge of those industries and the vertical specific complexities of those industries. It keeps things fresh and challenging, but that's what we want. We want that challenge"So yes there was a lot of affirmation" Yarnold commented returning to the initial question. "Then where I think the learnings are coming in. As we start to work with these folks and we start to understand what their customers, the service, and maintenance organisations are all about - we need to ask how do we continue to evolve and build our product so that they fit those organisations. Utilities, Airlines, Railroads, Oil Companies - these have not necessarily been our direct customers to date and we're learning a lot about that. We're also learning a lot about metrics and measuring business. It's been a good balance so far, and we're just starting to tap into that knowledge of those industries and the vertical specific complexities of those industries. It keeps things fresh and challenging, but that's what we want. We want that challenge."

So would it be fair to assume that given this additional stream of insight there maybe a change to the roadmap that ServiceMax has outlined for themselves? Kasai picks up this point. "I think you outlined it well when you positioned it as an expansion" he replied when we tackle this topic.

"Both being part of the wider family of GE but also the massive investment is a much needed, as we really need to expand our portfolio into new markets and new capabilities. We'd always made a conscious effort not to go into many of these industries for a variety of reasons, but largely from a focus point of view. But now we have I believe, a solid competitive edge from a channel point of view with great customer relationships. We have an understanding of the domain within those industries, and it would have been tough just to walk in and grow that knowledge. Thirdly, we have the capital to go ahead and invest in the development of the products to actually develop those capabilities for these industries. It is a combination of these three things which essentially makes a brand new company - there is so much potential and that what we're all really excited about, where do we go next?"

It is interesting the Kasai mentions how the new environment in which they find themselves in is in many ways akin to being an entirely new company. It brings back recollections of another previous conversation with Yarnold the day the acquisition was announced. "It is not the start of a new chapter; it is the start of a whole new book" he had commented, which is a strong analogy, as this latest incarnation of ServiceMax is indeed a distinct creature than that which has come before. However, likely any great novel within a series, the fundamental aspects of what made it a best-seller in the first place must remain in place. To extend the metaphor to its very limits, there must be a familiarity and continuity in place if it is going to build on the successes of previous in the broader in the ongoing saga.

In other words, ServiceMax as part of GE Digital must build upon the strong foundations that are already in place. Yet, for such a substantial investment, they simply have to evolve as both Kasai and Yarnold suggested. However, it seems that this is something that is very much already starting to happen as the ServiceMax team becomes plugged into the broader world of GE.

Such cohesion and deep level insight will not only drive the functionality of ServiceMax forward hugely but by doing so will also raise the bar for the industry as a whole. As Sharma explains" Something we have done recently is to have seven business swarm ServiceMax from which we've then built a core centre of excellence capability - it is a very focused team, they have both deep domain expertise and have also been ServiceMax users for a very long time. From this, we have developed accelerators to help improve deliverability, but it has also become a great feedback loop to Rei and the product team."

It is this type of integration that many of the analysts within the industry (including myself), hoped to see emerge when the acquisition was announced. As such cohesion and deep level insight will not only drive the functionality of ServiceMax forward hugely but by doing so will also raise the bar for the industry as a whole.

It was undoubtedly one of the most interesting aspects of the acquisition that I discussed at the time in that there is vast potential for the further development of important solutions when a major player such as ServiceMax is embedded within an organisation that has such a fine-grained level of knowledge of delivering service, rather than being swallowed up by just another major software house that many would have expected.

Yet for the full value of this to be played out there has to be a true ebb and flow of dialogue between ServiceMax and the wider organisation - something which Sharma indicates clearly exists. "We attack things together, working with the platform team, ServiceMax and ourselves, on an integrated asset model of the future. We are talking about working within large-scale operations and exploring how do you augment and drive participation? It is a great way to valid test or experiment with a capability, and we give instant feedback."

We have the fortunate situation where we have a very large-scale service organisation as a captive audience, and we have an organisation that's capable of delivering these great capabilities to these organisations. "When you develop new products you have to be very iterative, you have to have a small set of customers to be constantly testing against so you that you eventually build a scalable product for the masses. If you look at these new capabilities, we are looking at it very much through that lens, and we have the fortunate situation where we have a very large-scale service organisation as a captive audience, and we have an organisation that's capable of delivering these great capabilities to these organisations."

Of course, the most visible return on GE's investment so far, certainly from a product perspective, would for most people in the industry be the close integration between ServiceMax's Connected Field Service suite and another of GE Digital's offerings, Asset Performance Management (APM). As we've covered previously in Field Service News, the combination of these two tools pushes us with far more certainty than ever before into the world of IoT based field service. So is this a clear indication of the direction that both GE and ServiceMax see as the future of field service delivery?

"I think what the move to predictive really does is that it puts everything on your terms," comments Yarnold. "You're planning ahead of time; you can predict who is going to go where with a high probability of success. This will, of course, increase efficiency but it is also a huge value add to the customer - you're in a position to now delight them, because the right people are showing up, they know the history, they know what is required and so on. I just think it changes the model entirely."

"Outages are needed, machinery gets worn out" adds Sharma, "the question is how can you replace these in a planned way because when it's unplanned, that's where really bad stuff happens. The notion that is important to me is about focusing on getting to almost zero-unplanned downtime. That is where I think the industry is going to head."

As Yarnold had expressed to me previously, it seems clear that there are kindred spirits and a shared DNA somewhere between the two organisations, and most certainly a shared vision for the future of field service. In terms of their influence on the wider market both ServiceMax and GE have played a role in getting us to where we are today. How far they can continue to push the field service sector forwards as one cohesive unit remains to be seen, but the early indications would suggest that they will remain at the vanguard of innovation within service delivery for the foreseeable future. As each of Kasai, Yarnold, and Sharma commented at various points across our discussion - it's all hugely exciting.

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As Jim Baston continues the serialisation of his excellent service orientated book Beyond Great Service our protagonist Charlie begins outlining the solution to the sales and service equation to his team of service engineers...

If you're new to this series then you can catch up on the story so far by clicking here

Last time, Charlie introduced the strategy to the service team. This time he presents the details.

Great, then let’s examine the actual strategy in more detail.” Charlie powers up the projector again and moves to the next slide. The slide says:

Charlie reads from the screen and then advances to the next slide.

“Let’s talk about what we need to do to deliver an ‘exceptional experience that is valued by our customers and differentiates us from our competitors’,” suggests Charlie.

“The first bullet simply means that we have to do our jobs well; like responding quickly to a customer’s needs, fixing the problem right the first time, showing up promptly, doing PMs as scheduled, cleaning up after our work, etc. All the things that people actually pay us to do.”

“The second bullet refers to the interpersonal experience the customer has over and above the technical work that we do. It is the positive attitude, the welcome smile, the way we interface with people in the workplace, and all the tiny but important interactions we have with our customers or their customers/ employees/ tenants/patients/etc. during the course of our work.

The last bullet is a catch-all to remind ourselves of the importance of continual follow-up, and how such a simple act can help reassure customers they have made the right decision to work with us over any of our competitors.“Perhaps the critical bullet here is moments of truth. Each time we have an occasion to interact with the customer: a visit to the site, an email, a follow-up phone call, a casual meeting in a coffee shop, it’s an opportunity to reinforce in the customer’s mind all the positive reasons why they do business with us, through what we say and write and how we act. It’s the moment we have to help the customers say to themselves ‘That’s why I do business with Novus’.”

“The third bullet is the topic of our discussion today. It’s going beyond doing our jobs pleasantly and professionally and in a responsive and attentive manner. It includes our efforts to proactively look for ways that the customer can make improvements to their operations, and then take the time to discuss these recommendations with the customer.”

“The last bullet is a catch-all to remind ourselves of the importance of continual follow-up, and how such a simple act can help reassure customers they have made the right decision to work with us over any of our competitors."

“So, what do you guys think? Can we add real value for our customers while differentiating ourselves from our competitors in this way?”

Angus stands up. Charlie is surprised and more than a little concerned. It looks to Charlie as if Angus is going to walk out of the room. If Charlie can’t get Angus on board, then the whole initiative is lost, or at least, greatly compromised.

“Charlie, in all the time I have worked for this company, this is the first time that management has talked about business development by putting the customer first. Usually, the question is: ‘What other services can we sell to our customers?’ i.e. what can our customers do for us? What you’re asking, that is if I hear you correctly, is: ‘What can we do for our customers?’ The results might be the same—more sales—but the motivation is quite different. I like it!”

Charlie is thrilled. Getting Angus on side is a big step forward. A couple of other people offer opinions, and they’re along the same lines as Angus’. Angus remains standing and Charlie can feel a big “but” coming . . .

“But . . . ,” complies Angus. “Saying the right words is a lot different than doing

the right things. How are we going to make this work?”

“Yet another good question, Angus.” Angus smiles and takes a bow as the room breaks out in applause.

As Angus finally sits down, Charlie says, “We have a lot of work to do. Here is a summary of what we need to do from my perspective. Perhaps you guys might think of some additional things.” Charlie discusses the bullets on the next two slides:

Charlie goes through the steps in detail and answers questions as they arise.

He points out that since this initiative is driving the overall customer experience, then everyone who has contact with the customer must participate, not just the technicians.

Since this initiative is driving the overall customer experience, then everyone who has contact with the customer must participate, not just the technicians.Although the techs play a large role in this, they must be supported by the entire organisation.

Everyone who has contact with the customer; from technician to the accounts receivable person, all contribute to the overall experience and therefore must be in sync. That is why point number four references ‘all customer-facing personnel’.

After answering a couple of more questions, Charlie sums up by saying,

“Thanks everyone for your input today. I am really excited about what we are doing and I sense that you are too. Ken and I will get to work on the next steps. In the meantime, if any further thoughts come to you on this issue, please let Ken or me know.”

“Also, please be proactive in discussing with the customer those things you feel would be in their best interests to implement and work with us to ensure that they are properly followed up until we can bullet-proof the opportunity management system.”

With that, Charlie hands the floor over to Ken to discuss this week’s safety item.

Thinking about your business:

Is your business development strategy clearly tied to your overall plan to provide each customer with an exceptional customer experience?

Does everyone know what they need to do to deliver on your strategy?

Are support functions aligned to facilitate the efforts of the field team?

Next time Charlie seeks feedback from one of his ex-customers.

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Marne Martin, CEO of ServicePower explains why Artificial Intelligence is going to be a fundamental part of the future of field service and why not all AI is on an equal footing...

In business, we are all now fully aware of the importance of collecting data. However, we are also painfully aware of just how easy it is to get overloaded by the sheer volumes of data we can collect.

An often quoted example that puts the sheer amount of data being generated around us into some sort of context is that a Boeing 787 will generate around 40TB per flight. If you were to play 40TBs of mp3s back to back it would take you 78 years to listen to every file. Yep, those data lakes are deep and quite frankly it’s no wonder some companies are beginning to drown in them.

And this is where Artificial Intelligence (AI) comes into the question - and why it is set to play such an important role within the field service sector.

Ours is a sector in which excellence is being built on data.Ours is a sector in which excellence is being built on data. We are embracing IoT with both arms because it has the power to bring costs down for the service provider whilst increasing service standards for the customer. However, for us to fully see the promise IoT offers we need to turn to AI to help us make sense of all that data.

However, not all AI is equal.

It is often overlooked in conversations but there are very distinct different types of AI. You can have Algorithms that only do one thing. For example, in a law firm, they may have an AI algorithm that sorts through documentation for testimony in trails. Things like this are what are generally viewed as purpose-built AI algorithms, that are all about establishing simple efficiencies. Basically, an AI which is implemented by people and organisations who are searching across large data sets for tightly determined results.

Whilst it is by no means a simple task to develop and deploy such an algorithm when it comes to looking at AI in field service we are talking about a much more complex beast entirely.

For a start let’s just consider the various different types of service and touch points within the service cycle that AI can touch.

To begin with there are three obvious different areas of a field service business:

• Call centre activities
• Back office activities
• Field service activities

Then there are the various different types of information that needs to be factored in as well. For example, on any given service call we would be looking at a minimum for information on:

• The asset
• The customer
• Any service history
• Component level information
• Any complexities to service
• Warranty details

All of these elements only serve to create more complexities in the data - so AI designed to work its way through such levels of complexity is by default going to be a more sophisticated piece of programming.

However, the reason why AI is so important in field service is that we want a product that is flexible and configurable to how our field service businesses evolve and how we want to deliver service. The issue is if you are trying to cross-section a lot of data without AI algorithms that are configurable you are going to be wasting way too much time trying to build software that is one dimensional.

For example, you might build something that says if I get this preventative maintenance alert I am always going to do this. That might be OK for today but it might not fit with your business in a couple of years time.

For the requirements of field service organisations the power of a truly good AI algorithm is all about how robust is its ability to configure different processes.Then you’d have to sit back down with your IT group and your developers and kick off another two-year project on coding some other stuff. By then you’re way behind your competitors - who were able to just adjust some of the parameters on their AI algorithm.

This is why I firmly believe that for the requirements of field service organisations the power of a truly good AI algorithm is all about how robust is its ability to configure different processes.

The volume of the data that is coming out now and the direction that most businesses want to move in mean that we are now well and truly living in a Big Data world and we need to get used to it.

So we need AI to process the sheer amount of data but also we specifically need configurable AI services that will enable us to have the type of service experience that works for our brands and for our customers.

This is why we have been so focused on the development of AI at ServicePower and we were so pleased to be awarded a US patent for the AI algorithms that we’ve incorporated into our latest Customer Experience service solution - which you can see a demonstration of in our recent webinar available @ http://fs-ne.ws/XYbX30gQDeB

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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By 2020, there will be more than seven connected devices for every person alive. Service providers must anticipate this new reality, the speed at which it’s emerging, and its impact on business models explains Joe Kenny, Vice President Global Customer Transformation & Success for ServiceMax, a GE Digital company.

The global economy is in the middle of the most disruptive period in all of human history. Companies that have been fuel for the global economic engine that powered the late 20th century are quickly disappearing from the global stage.

According to the Olin School of Business, 40% of today’s Fortune 500 companies will be gone in the next 10 years. Much of this business transformation is due to the accelerated advancement of technology. We are, in effect, making better and cheaper things that enable us to make better and cheaper things. Organisations that do not recognise this reality, and adapt to it, are going to face incredible challenges, much faster than ever before.

While many people are amazed at the success of Uber, few consider the consequences to Uber’s competitors.

While many people are amazed at the success of Uber, few consider the consequences to Uber’s competitorsIn New York City, a taxi medallion cost $1.3m in 2014 and two years later they were selling for $250k (Business Insider – 12 October 2016). That same article noted that the total share of all taxi rides for medallion owners in New York fell from 84% in April 2014, to 65% in 2015; A 20% market share decline in 12 months. Those that invested, over generations and decades, in N.Y.C. taxi medallions, will eventually see those medallions lose all of their value.

Ray Kurzwiel, futurist and author of the book, “The Singularity is Coming”, states that based on our current rate of change that, “from a historic perspective, the 21st Century will experience 20,000 years of technology advancement in 100 years”. What is driving this “Age of Acceleration”? The information and communications revolutions of the late 20th century. So, what does all of this have to do with how we service our corporate equipment and assets? Better, cheaper, and faster technology allows for a fundamental paradigm shift in how service providers approach customers and their markets.

Leveraging the technical revolution allows for machine to machine communication, remote asset monitoring, preventive maintenance planning, and predictive analytics. This is not something that is coming, it is something that is already here.Leveraging the technical revolution allows for machine to machine communication, remote asset monitoring, preventive maintenance planning, and predictive analytics. This is not something that is coming, it is something that is already here.

Major markets that have embraced these technology advancements include aviation, transportation, and power generation. Aviation Week reports that an average twin-engine plane can produce over 850 terabytes of data over 12 hours of flight. That data informs on everything from temperature, vibration, oil pressure, basically every aspect of that asset’s performance. It informs service providers of the exact status of that asset over time, when it will need maintenance, and exactly what maintenance it will need.

That level of information will shortly be available on almost every asset in service. Currently, there are approximately 28 billion connected devices on the planet. In the next three years, that number is expected to almost double to more than 50 billion.

That is more than seven connected devices for every person alive in 2020. Service providers need to anticipate this new reality, and more importantly, the speed at which this new reality is emerging. Positioning a service organisation to leverage these capabilities, access these technologies, and drive efficiency, effectiveness, and technologically advanced service will be critical to their survival in the market. It’s one of the main factors driving the exponential rise of field service.

Utilising technology to drive predictive maintenance, guaranteed uptime, defined service windows, and the move to defined service outcomes will be the price of admission to providing service and maintenance.Utilising technology to drive predictive maintenance, guaranteed uptime, defined service windows, and the move to defined service outcomes will be the price of admission to providing service and maintenance.

By way of example, GE already has 800,000 Digital Twins in operation that provide a digital mirror on the status and performance of equipment - covering assets from jet engines to wind turbines - allowing engineers to predict when they need servicing - helping field service engineers make sure that they perform the right service, right first time. Soon there will be more than a million Digital Twins in operation. If you are not positioning and preparing for this reality now, you may already be too late.

While there is always talk of the high cost of doing nothing, in the past there was a period of time for reflection, evaluation, and a window of opportunity to changes one’s mind. That will not be the case in the future. A missed opportunity will be gone before you know it.

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