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Our latest research project, run in partnership with ServiceMax from GE Digital has take a deep dive into how the role of the field service engineer is evolving. Across the next few months we will be publishing a series of articles both in print and online exploring the findings of this research.

There is also a detailed white paper outlining the wider findings of this report which is available to fieldservicenews.com subscribers...

Not a subscriber yet? Click here to apply for a complimentary industry practitioner email and get this resource sent to you instantly

(Please note that by applying for your subscription via this link you accept the terms and conditions here and a plain english version is available from our main subscriptions page here) 

Here in the first article of this series we look at the question of the ageing workforce and the entry of millennials into the field service workforce...

Much has been written about an ageing workforce crisis but how much of the worry is based on hyperbole? And what of the Millennial generation entering the workforce - is our industry ready to embrace them?

Our industry is rapidly evolving. Technology is continuously pushing the boundaries of field service efficiency whilst simultaneously customer expectations are becoming ever more demanding.

Companies like Uber and Amazon have disrupted the very concepts of what good service looks like, shifting the goal posts and creating a race across almost every industry vertical for companies to embrace service excellence.Companies like Uber and Amazon have disrupted the very concepts of what good service looks like, shifting the goal posts and creating a race across almost every industry vertical for companies to embrace service excellence.

At the same time digital transformation is the other major trend sweeping across our sector – one direct side effect of which is that increasingly the Field Service Engineer (FSE) is often the only face to face human interaction between a company and their customers.

So what does this mean for the FSE of tomorrow?

How is their role evolving? What are the skills that will be vital to their role and how do these differ from those that we have previously sought in our FSEs?

To try to find the answers to these questions Field Service News has undertaken a new research project in partnership with ServiceMax by GE Digital.

Across the last few months we’ve reached out to our readers across the globe to gain their insight in order to build a picture of what the FSE of 2022 (incredibly only five years away!) will look like and what role does the growing  importance of technology in field service delivery play in shaping the way we approach acquiring, training, and developing talent within the field service sector?

Across the next few months we will be publishing a series of articles based on the findings of this research and in this first article in the series we ask is the ageing workforce crisis actually really happening or is it all hyperbole? And what about the Millennial workforce entering the field service sector - are we ready to embrace and empower them?

About the research:

The research has been conduct via an online survey across the last two months and our respondents have come from all over the globe including; the UK, Germany, Netherlands, France, USA, Canada, Brazil and beyond.

There was also an equally wide split of industries represented with respondents coming from numerous sectors including; Oil and Gas, Manufacturing, Utilities, Telcos, Print/Copy, Med Tech and many others.

Finally, there was also a balanced representation of companies of all sizes with some companies having less than 10 field service engineers right through to companies with more than 800 engineers.

In total there were 126 respondents which is a large enough sample to provide a reasonable snap-shot of the thinking and the trends amongst field service management professionals.

So what were the findings? Let’s take a look.

The threat of an ageing workforce:

One of the biggest drivers for the rapid evolution of the role of the field service engineer is the fact that the core demographic of those working in field service roles is going through seismic change as we see an ageing Baby Boomer workforce reach retirement age being replaced by a new generation of workers, the Millennials.

Perhaps never before has there been such a significant difference between the generation leaving the workforce and those that are just beginning their working lives. From the way knowledge is gained and shared through to the key motivational drivers, ‘Boomers and Millennials are often chalk and cheese. One of the key challenges for field service companies of all shapes and sizes is how they adjust to this shift in thinking within their workforce and for many time is not on their side as they endeavour to make this adjustment.

There has been much talk of an ageing workforce crisis as the existing Boomer workforce reaches retirement age - perhaps magnified amongst field service organisations by the simple fact that field work can often be relatively physically demanding compared to more sedentary office based roles.

With this in mind our opening question in the survey was focussed on assessing just how real this ageing workforce crisis is amongst field service organisations. We asked our respondents ‘For your organisation how big a threat to your field service delivery do you think this issue will be across the next 5 years?’

The responses revealed that whilst perhaps there may be some hyperbole around the urgency of the issue - it still remains very much a concern for a huge percentage of companies.The responses revealed that whilst perhaps there may be some hyperbole around the urgency of the issue - it still remains very much a concern for a huge percentage of companies.

Whilst only 8% of organisations stated that for them an ageing workforce represented a severe threat i.e. that it is a major issue they are facing that could put their field service operations at risk, 40% of companies taking part in the research stated that the threat was significant for them and that unless addressed quickly they are likely to face major disruption to their field service delivery within the next five years.

In addition to this a further 34% of the respondents stated that they believed the challenge of an ageing FSE population was moderate that they acknowledged it as possible issue that they need to be aware of, although they didn’t anticipate it having a major impact on field service operations.

At the other end of the spectrum just under a fifth of respondents (18%) stated that the impact for them would be limited and that whilst there may be some workforce attrition due to FSEs reaching retirement age, it is unlikely to have any significant impact on their field service operations.

So, it would indeed appear that in the main the issue of an ageing workforce is at the very least a consideration for more than four out of five field service companies.

Changes in training methodologies:

This puts many field service organisations in a challenging position.

The need to recruit younger talent for FSE roles is clearly pressing, but given the aforementioned differences between ‘Boomers and Millennials are the existing on-boarding and training methods suited to this incoming generation?

Our next question was therefore focussed on understanding if field service companies did in fact feel the need to change their training methodologies and whether they were actively doing so. We asked our respondents; ‘Have you adapted your training and development strategies to reflect this?’

Only 10% of companies had stated that they had already redeveloped their training strategies to be more geared to the incoming Millennial workforce. Here the research revealed that whilst there was a clear understanding that changes to the traditional means of training FSEs does indeed need updating, it seems that there is something of a general inertia amongst field service companies to currently tackle such change.

In fact, only 10% of companies had stated that they had already redeveloped their training strategies to be more geared to the incoming Millennial workforce. However, just over half (52%) of companies taking part in the research are currently in the process addressing the issue in their organisation.

Further to this just over a quarter (26%) stated that they had yet to start making changes to their FSE training to reflect the shift from ‘Boomers to Millennials but accept that they need to do so and is something they are currently considering.

Meanwhile, 12% of companies do not believe they need to make any changes to their FSE training at all.

Want to know more? There is also a detailed white paper outlining the wider findings of this report which is available to fieldservicenews.com subscribers...

Not a subscriber yet? Click here to apply for a complimentary industry practitioner email and get this resource sent to you instantly

(Please note that by applying for your subscription via this link you accept the terms and conditions here and a plain english version is available from our main subscriptions page here) 

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Bill Pollock, President, Strategies for GrowthSM tackles one of the biggest questions smart Field Service Directors are asking themselves today - how to make money from IoT based field service delivery...

The ability to monetise the IoT in field services is another variation on a theme of what has dogged the field services industry for decades! Every time there are advances in technology, the more progressive – and aggressive – Field Services Organisations (FSOs) adopt the technology to streamline their processes, reduce their internal costs, and improve their service delivery capabilities.

However, customers, for the most part, see the adoption of this technology as being

[ordered_list style="decimal"]

1. Strictly for the benefit(i.e., cost-benefit) of the services organisation itself, and not them and
2. means that should reduce overall costs for both the services organisation and its customers (i.e., themselves)[/ordered_list]

With subscription-based pricing, however, cost should no longer be as critical an issue to the prospects for moving forward with the desired FSM solution – however, do your CFO and Purchasing teams understand that? Or are they still entrenched in the traditional perpetual license mindset?

The mistake that many services organisations make is trying to sell the same services to customers, at reduced costs to themselves, but increased costs to their customers. Customers will typically see this apparent disparity and question their services providers as to why they should have to pay more for something that costs their vendors less!

What basically needs to happen is for the services organisations to move away from traditional Service Level Agreement (SLA) pricing, to an outcome-based pricing model, such as “power by the hour”, “airplanes in the air” or “x levels of output”, rather than “y hours of service coverage”. Remember the “bullion” pricing model (i.e., Platinum, Gold, Silver, Bronze)? It bit the dust (in most cases) years ago.

 

So, too, will traditional Service Level Agreements (SLAs) as they are replaced by outcome-based services agreements.

The best current examples of this are, as noted, are selling “uptime as a service”, rather than merely “throwing hours of support” at customers – a rifle shot, rather than a scatter-gun approach to selling services. Although many services organisations say they offer total Service Lifecycle Management (SLM) support, most still only offer Field Service Management (FSM) solutions in terms of field service and support, preventive maintenance, and standard parts and inventory management.

However, the IoT, in some cases for the first time, now empowers FSOs to provide “true” Lifecycle Management for their services customers – essentially “cradle to grave” support for all of their systems and devices, throughout all of their day-to-day usage and applications.

How does the IoT do this?

Basically, by automating the entire services management process, end-to-end, from data collection, through device monitoring, problem identification and resolution, routine and ad hoc maintenance services, predictive and pre-emptive maintenance, parts/inventory management – and even “end-of-life” product support! SLM is more than FSM – and the IoT can support all of the organisation’s SLM services processes.

The IoT is more likely to change the way in which services organisations deliver their services, first; and the way they package and price them, second.

By that, I mean that, first, the IoT will allow services organisations to perform more maintenance and repair service remotely, rather than on-site – and the growing use of predictive diagnostics will continue to reduce the need for on-site services (in some cases, at all) over time.

As a result, many services customers may not even know that their systems or equipment have been serviced, as everything that was needed was either performed remotely – or did not need to be performed at all (i.e., through routine monitoring and minor calibrations or maintenance “tweaks”, etc.).

Through the use of a customer portal, customers can typically gain full visibility of exactly what types of maintenance have been performed, on which systems, at what times, and with what results.

However, those customers not electing to utilise their customer portals (or if their services provider does not offer that capability) will have virtually no visibility as to the extent of the maintenance that has been performed.

This ultimately becomes problematic for some services organisations that must then report what they have done for the customer – and try to convince them that by doing so, there was added value provided.

 

Packaging this “new” way of providing services through an IoT-powered FSM, or SLM, involves an entirely new way of delivering services to customers. For example, instead of providing a certain number of hours of support, within a designated time window, and providing a “guaranteed” uptime percent (i.e., or you don’t have to pay your services contract fee that month), some organisations are now selling uptime – period.

Instead of throwing service contract hours at an aviation customer, they now provide “airplanes in the air” to this segment. Similarly, instead of selling a standard SLA to a wind farm customer, they are selling “power by the hour".

Instead of selling standard SLAs for extermination services, they’re selling a “rodent-free” environment. And so on.

However, this ”new” way of packaging services will be difficult for some services organisations to deliver – and for many customers to acclimate to – or price! It will take time, and it will not be an easy conversion for some. But, it is already the way of the present, in many cases – let alone the future.

 

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Charlie's continued journey towards the perfect balance between service and sales continues as we explore the next section of our exclusive serialisation of the excellent industry focussed book Beyond Great Service.

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

 

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Last time Charlie put the preliminary plan together to implement the strategy. First stop, discuss it with the technicians and get them on board. Here we find Charlie as he presents the concept to the technicians.

It’s Charlie’s turn again and he turns on the projector. As it is warming up he gives a brief introduction. “Last week we talked about the idea of getting you guys to be more proactive in promoting our services to our customers, and many of you provided me with your opinions. I think you made it pretty clear that you didn’t see your role as selling and, when you do bring opportunities forward, we don’t have the systems in place to consistently support you.” If Charlie expected a room full of nods, he was disappointed. No one moved or showed any change in expression.

Charlie continued, “I have to tell you that your feedback put me back on my heels a bit. I was a little disappointed frankly, because I felt that you were in the best position to point out to our customers what we can do for them. Fortunately, Ken was able to re-walk me through the meeting and your comments, and help me understand what you were saying. And am I glad he did. I would like you to know that based on our meeting last week, I have come full circle. I don’t want you to sell our services to our customers. That was a mistake!”

Now there was movement in the room. Charlie noticed the techs looking at each other and the shuffling and murmurs. Angus speaks up. “Let me get this right, Charlie. Are you saying that you don’t want us to talk to our customers about our products and services?”

[quote float="left"]If you took your car in for an oil change and the mechanic noticed that your brakes needed replacement, would you not expect him to advise you of the fact and recommend they be changed?

“Good question, Angus. No, I am not saying that you shouldn’t talk to our customers about our products and services. In fact, you should, so long as you feel it is in the customer’s interest. What I am saying is that I don’t want you to act as salespeople for the company.”

 

“It makes sense to me, but what is the difference between what you have outlined here and selling?”

“Another good question, Angus. There is a difference and, although it is very subtle, it is critically important. If you took your car in for an oil change and the mechanic noticed that your brakes needed replacement, would you not expect him to advise you of the fact and recommend they be changed?” 

“Absolutely!” 

“Would you consider it selling?” 

“No, not really.”

“Why not?”

“Because it is an important part of the service he provides. If he did not tell me, I don’t think he would be doing his job. In fact, I think he has an obligation to tell me. It’s a safety issue.”

“Okay. How about this? Let’s say what he observes is not a ‘safety issue’, but instead simply an action you can take that will save you money. Perhaps your particular model of car could be modified to improve your gas mileage by at least 10%. And the cost of the modification could be paid for through savings at the pump in just 9 months. Let’s say that he points this out and recommends that you do the modification. Let’s also assume that if he didn’t tell you about the modification, you would be none the wiser, and your car or your safety would not be at all compromised. Would your answer change? Would his recommendation be selling?”

[quote float="right"]The service we provide is using our knowledge and expertise to make recommendations to help the customer achieve their goals. It’s like offering them our heads as well as our hands

“That’s a harder one, Charlie. I guess strictly speaking it is selling in a way, but I don’t honestly think it is,” responds Angus. “So long as what he is telling me was not a load of bull to pry me away from my wallet, I’d say it was an essential part of the service to let me know about the modification. I could always say no.”

 

“So would you call that selling?” asked Charlie.

“In a way it is and in a way it isn’t. Like selling, he is talking to me about the modification and trying to convince me to take his advice, but he is doing it with the best of intentions. If I had to choose, it is more like a service and an important one at that.”

“Thanks Angus. That’s what I am talking about. We provide a service to the customer any time we use our know-how to help them be better. What I am suggesting should not be mistaken as a ‘service-of-the-month club’. The service we provide is using our knowledge and expertise to make recommendations to help the customer achieve their goals. It’s like offering them our heads as well as our hands. Does that make sense?”

Thinking about your business:

• Have you clearly communicated why proactive recommendations by your technicians are an integral part of the service they provide?
• Do your actions support your words[/unordered_list]

Next time we will see how Charlie presents the strategy to his team.

 

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The most successful logistics managers (and sleigh based delivery drivers) were likely those who could turn to technology to cope with the busiest (and most wonderful) time of the year writes Sergio Barata, General Manager EMEA, Telogis

During the recent holiday season whilst people up and down the country were purchasing piles of food, beverages and presents for their friends and families, spare a thought for those who were able to help make this period as the song goes the most wonderful time of the year.

For fleet managers, this represents one of the most challenging periods on the calendar.

Each year, we hear horror stories of traffic jams and huge queues of HGVs and LCVs snaking for miles outside of distribution centres. We hear about angry customers waiting for their parcels and how it has ruined the holiday. With so many elements to juggle, how can fleet operators keep on top of everything?

Most importantly, how can they ensure their customers get all their present in time?

With research showing that more than half of fleet executives still use manual systems for everyday fleet management tasks, it’s no surprise that many fleets are struggling to cope with the increased holiday workload.

Technology is like Santa’s little helper for fleet and logistics managers, as it plays a vital role in helping to balance distribution centre schedules, driver timings and route traffic and ultimately keep everyone happy. For fleet operators who want to stay ahead of the competition, there’s no time to lose to adopt the latest tech.

Avoiding queues at customers or distribution centres

Long lines of vans and lorries parked outside depots and distribution centres can lead to angry locals – or even a visit from the police – and cause delays for anxious customers waiting for their packages. For fleet managers, it is vital to first look at their Service Level Agreements (SLAs) to establish what is expected of them, and then plan accordingly with the distribution centres in advance to map out the best timings for goods collection.

With this information, fleets can use a tech platform such as Mobile Resource Management (MRM) to plot out the details to spend less time idling in an endless queue. This allows for smoother and less stressful journeys, as well as happier customers.

 

Avoiding traffic jams with smarter route planning Even without the additional holiday traffic clogging up the roads, a study
earlier this year found that congestion in the UK’s major cities has created a 20 per cent decline in average vehicle speeds, resulting in a whopping 324.3 billion miles of delays altogether – and this is costing our economy around £9bn.

As a result, optimising routes to avoid traffic and achieve marginal gains is more important than ever. MRM provides managers with live analytics that allows them to plan out the best routes beforehand and establish which
driver is best placed to arrive at the desired destination the soonest, as well as being able to manage time slot deliveries. The technology can then track the vehicle’s location once it’s out on the road, and even re-route the driver at a moment’s notice if road conditions suddenly change.

With in the moment visibility over the status and location of each customer’s delivery, this not only means that drivers can take the most efficient routes, potentially reducing idling and fuel consumption, but also that managers are able to respond quickly and knowledgeably to customer questions if unexpected eventualities arise. This can ensure that customer satisfaction will
remain high even if unavoidable delays do occur.

Assisting in planning more effective schedules

Driver schedules can also be a real headache during the holiday season. Fleet and logistics managers constantly battle to make sure hours are allocated as efficiently as possible, and at the same time send the best-placed drivers to various different locations.

If not done properly, managers risk over-burdening some drivers, resulting in them clocking up hour after hour of overtime, while other drivers may remain under-utilised. Not only does unplanned overtime eat into margins, but drivers will become tired and overworked on top of all the stress of the busy holiday period.

With the DVSA suggesting it will clamp down on driver fatigue by issuing fines or infringement notices retrospectively, it has never been more important to get scheduling right. Tech platforms can monitor and analyse driver performance, analysing when drivers start their shifts, how many stops they have made, and what time they have completed their deliveries, helping to know drivers are where they should be at all times.

With this information at their fingertips, companies can easily make sure both their customers and their employees are kept happy. This saves a lot of stress for fleet managers who can be assured that everything is all under control.

 

As everyone was enjoying the holidays, the last thing anyone wanted was to be spending the next couple of weeks anxiously wondering where their deliveries are, and certainly no company wants to be responsible for dampening the festive cheer.

Fleet managers therefore must ensure that they are on top of their logistics as simply relying on outdated technology will no longer suffice.

They need something that is mobile and is able to scale as the business requires. Those with the right technology supporting them can not only increase their chances of getting meeting customers’ heightened expectations, they can manage costs, increase revenue and have a happy and prosperous holiday period.

 

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Leadent CEO, Alastair Clifford-Jones tackles the tricky issue of ageing technology...

Many organisations that have implemented field service management solutions now face a dilemma. Recent advances in technology platforms, software and hardware, have caused these organisations, that had previously enjoyed a competitive advantage, to risk being left behind. And it’s not just the advancement of technology that is driving this, the focus for many field service organisations has changed due to consumers’ ever-increasing expectations, and the deregulation of some industries.

Given the pressure on organisations to provide a better customer experience, many assume the solution is to replace or upgrade ageing technology; especially considering that the replacement could be a Cloud or SaaS-based solution that would shift the costs into an OPEX bucket. Whilst this might be seen as a silver bullet, the truth is more complicated.

When organisations first considered field service management systems they were trying move away from the Chaotic Survival state (as per the maturity model shown below.) Business cases were predicted on an improvement in operational efficiency by ensuring the right job was given to the right operative, with the right skills/tools/parts to meet customer service levels at an optimal cost.

 

To become a Supply Led business required a limited change in technology, and more of an organisational change as it is much more about breaking down silos within a business.

However, transforming into a Demand Led organisation requires significant investment, and a completely different way of thinking. This is where organisations need to be truly digitally enabled with multi-channel customer touch-points.

So, what’s the right direction for organisations?

It depends. There are several aspects to be considered.

The first is not just what technology you have, but how well it’s been implemented into the business; are processes understood and adhered to? Does the business model match both the objectives, and process model?

Often organisations believe technology is at the root of their problems – if they could just have faster software or more flexible configuration life would be so much simpler. In reality it’s often the way technology has been implemented and this isn’t just about customisation or configuration, it’s about embedding process and mindset change into the business. Even in today’s world, there are far too many technology-driven implementations that are not owned or controlled by the business.

The second is deciding where the business needs to be. In the diagram above, it is clear the ‘best’ position is on the right-hand side, but this is primarily driven by consumers. If your customers don’t need you to be this type of business, there is no point trying to position yourself there. But don’t kid yourself, this would make you the exception, not the norm.

Your business’s starting point, and where you need it to be will give you an indication of the gap that needs to be closed to deliver competitive advantage. This then begins to formulate a basis for the decision to upgrade or replace technology. But, as ever, there are a number of ways to close this gap, with many requiring some technology, but how do you make the right decision?

The options are:

• Drive more value from a current deployment
• Implement point solutions to add functionality
• Upgrade an existing solution
• Replace the current system

Getting more Value from a Current Deployment

Many implementations have failed to deliver the anticipated value. It’s not that businesses are over optimistic when the business case is developed, but more that they don’t take the opportunity to truly transform. The field service management solution is seen as an operational tool and implemented in a silo.

This silo thinking has resulted in the lack of an integrated view of the end-to-end customer journey. In reality, this is not because the business failed in the implementation, but more that efficiency was the focus at the time.

 

Getting more from a current deployment is all about the end-to-end customer journey. Often greater value can be achieved from just having an integrated view, which means looking at processes and how the organisation matches this view.

In my experience, there is always more value that can be generated from a current deployment. But the big question is, is it ever enough to meet current and future requirements?

Implementing Point Solutions

If the scheduling and dispatch solution is working well, and an organisation is just trying to improve the customer experience, there is no reason why the existing solution cannot be enhanced by implementing greater functionality via integration with other software such as online booking or customer communications.

This way a customer can get the ‘digital experience’ with minimal disruption to operations. Given integration capabilities and the proliferation of APIs, it is much easier in today’s world to integrate a point solution with current platforms. The main gripe for customers is the lack of information from the organisation. If you keep your customers informed via appropriate channels - a web or mobile app, or even a lowly text message, it can dramatically enhance customer experience.

In addition to improving the customer experience, it alsomakes operational sense. The business case for delivering better customer information can often be satisfied by the reduction in calls to call centres alone.

Upgrade an Existing System

Upgrades come in many forms. Vendors are working hard to shift customers from on-premise solutions to their new cloud variants. While the existing cloud vendors are innovating and adding functionality to stay out in front. Often the decision to upgrade is with the supplier in that support will usually be withdrawn for non-upgraded systems, for example, where the cloud option becomes the only option.

Where the organisation has an option to upgrade to get enhanced technological capabilities, it is very important to understand the impact it will have on the people and processes. In my experience, upgrades often fail because the processes have not be realigned, or the teams have not been properly informed or trained.

Organisations that have really benefited from enhanced functionality have conducted a full impact analysis on the processes and realigned their businesses appropriately to make best use of new capabilities.

Replacing a Current System

To many organisations, replacing a system fills them with dread as the initial implementation was a particularly expensive and painful experience but, in reality, much of the hard work has already been done. Much of that pain was in moving from a manual system to auto-scheduling and mobile dispatch. This was a change management exercise, and isn’t a reason not to replace. In fact, if it was done well, it’d be shame not to further capitalise on that investment.

Additionally, moving to a cloud or SaaS based system will not require the capital outlay which was required in the past and, should an organisation choose to move to the cloud, the new IT landscape and architecture needs to be considered, particularly in terms of integration and security.

 

Of course, there are benefits of replacing a current system beyond those of better functionality, for instance, some new systems offer much greater business flexibility. For example, the way different providers treat capacity can offer greater benefits; where many assign an engineer at the time of appointment, some now look at the overall capacity and perform the assignment on the day. For the majority of businesses and use cases, this increases efficiency.

If we are looking at moving organisations to the right on the maturity model it’s essential to have an integrated approach to the end-to-end customer experience, which may be constrained by that organisation’s field service management solution.

Don’t Get Left Behind!

As we’ve seen, moving towards a truly Demand Led model for field service can be achieved via a number of different paths. Where your organisation sits within the maturity model and how much focus is placed on the customer journey will dictate the path you need to take.

But in all cases, it is imperative to make those decisions with a critical eye on your own maturity and the end-to-end customer experience in mind. Failure to do so risks leaving the business trailing in the wake of those who do.

 

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Resource Type: White Paper
Published by:  Coresystems
Title: Transforming Field Service into a Profit Centre

 

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Synopsis:

Manufacturers in various industries are increasingly under pressure to make their customer service units profitable. In order to deliver great service, businesses need to focus on understanding what customers want. This can be achieved by investing in new tools that improve efficiency and quality. To keep customers coming back and deter competition, manufacturers need to develop business models and  customised services that are aligned to individual customer’s business goals.

For the customer, faster service delivery and less unplanned downtime mean a higher yield from capital investments, which then justifies high-value services.

Field service has traditionally been a drain on cash. However, with field service automation software, there is an opportunity for the first time to save money and increase profits. It’s not uncommon for  manufacturers to achieve efficiency savings of up to 30% while still increasing customer loyalty and growing brand value.

Field service not only transforms finances, but also the whole customer relationship. This white paper offers guidance as to how to make that transformation in your business effectively.

Overview:

The key topics discussed in this white paper include:

Why Does Field Service Need to Become a Profit Centre?

The world is changing fast: economically, socially, and politically. Businesses have to adapt to new competitive landscapes, including challenges caused by cheap suppliers from abroad or disruptions by startups that turn whole industries upside down. Customers are becoming accustomed to higher levels of personalised service, often assisted by technology that facilitates their lives.

These global trends present challenges, but also great opportunities for businesses to tap into.

By focusing on their customers and disrupting their own business models, businesses can create new revenue streams and distinguish themselves from the competition. If it is run as a profit centre, field service management can play an important part in this transformation.

How Field Service Can Become a Profit Centre

In this section we present five practical steps for turning field service into a profit centre. These steps are all about putting the customer first and empowering staff. You will learn how to move from minimal efforts and reactive repairs to focus on proactive, productised services, and relationship building.

The following points are covered in this section:

 

• Operational efficiencies
• Field service ambassadors sell more products and services
• New innovative business models
• Customisation and individualisation

Customer Focus:

Today, manufacturers have new means to impact their customer’s success. New processes and tools are available for the first time allowing manufacturers to interact with customers in new ways. These tools organise resources and processes and feed field service staff vital information and instructions. Engineers completing a service job will now be able to offer meaningful advice based on real-time data combined with their experience and collaboration. Customers will see the benefits of field service management software straight away.

They will not only appreciate the improved efficiency and quality of the service, but also the difference the service has made to their productivity. This can go as far as the equipment manufacturer becoming a business partner invited to advise on capital investment to meet production targets.

Operational Efficiencies:

By definition, less costs means more profit. By achieving more with the resources available, field service teams can reduce costs and improve cash flow by increasing efficiencies in information management, service delivery, and planning.

This can start by optimising some resources, such as:

 

• Planning service calls with a routing system, allowing more visits per day.
• Enabling fast access to historical data from digital archives, which reduces planning time.
• Reducing the cost of sale by planning pre-defined templates, software automation, and online resources to significantly reduce the time it takes to provide a quote to the customer.

Employees are more focused on efficiency when provided with the tools to empower them to increase this efficiency. Mobile data solutions mean engineers onsite can complete services faster because they have all the information they need at their fingertips.

Field Ambassadors Sell More Products and Services:

Field service engineers are in a perfect position to establish a valuable relationship with customers that facilitates up selling of services and equipment, at a very low cost of sale. They have access to the customer’s organisation where they can offer insight, advice, and guidance based on technical knowledge and years of experience. As ambassadors of your company field service technicians can have significant influence, but they must be supported in this role with the right tools and training.

New Innovative Business Models:

Services can be developed, marketed and sold like products. Adding in new processes and technology can also make them modular and easy to purchase, for instance from an online catalog. Innovative ideas can then help create services that adapt to customers’ own businesses. In fact, customers might find that they can create new products as an addition to your services – the ultimate form of brand loyalty.

Customisation and Individualisation of Services:

The world is becoming more customer-focused and individualised. Older manufacturing companies are traditional, but a new generation of staff is experiencing a fresh, digitally driven customer service world at home, and increasingly expects a similar experience at work.

Forward-looking brands now put much more emphasis on the customer’s individual requirements, and seek ways to offer more customised services that support business targets and staff KPIs. Brand loyalty and keeping ahead of competitors are key goals.

 

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When compared to traditional combustion engine vehicles, Electric Vehicles (EVs) can go a long way to reducing the overall costs for any fleet. Mark McKenna, National Sales Manager at Bluedrop Services Motor Fleet Insurance Brokers, suggests that once considering the whole life costs of an EV, investing in such a fleet makes sense.

However, there is always the initial hurdle of the upfront cost to a business. If you have the capital to hand you can make the numbers work, but for most companies it is hard to justify the initial outlay.

Perceptions of EVs running out of charge

One of the other issues around the adoption of EVs is the perceived idea that the vehicles won’t have enough stored power to last for a full day of business driving requirements. Many businesses also perceive that they require more mileage out of the vehicle than they would use in a day.

With the range of use on Electric Vehicles constantly increasing, unfortunately the anxiety around not having enough charge is not seeming to shift. The fact is that mileage range of an EV often fits nicely into the journeys actually being travelled by a fleet, but the mentality surrounding this issue is not changing.

Over time charging time will decrease

Soon however, charging will be so quick that this perception will no longer be a problem. It is all about changing mindsets and educating as well as allowing businesses to test the use of EVs so they can offset their fears. Those medium sized fleets that on the majority conduct shorter journeys would find EVs hugely beneficial, experiencing significant savings.

Additional savings surrounding EVs

Taxes, grants and congestion charges also offer a good sound argument for investing in EVs. The Government have introduced several incentives, making both electric and plug-in vehicles more attractive to both consumers and fleets.

These include low or zero road tax and the exemption from the London Congestion Charge, as well as the suggestion of a national scrappage scheme. Other countries, such as Norway are also offering strong subsidies for EVs, no VAT, free parking and allowing drivers to utilise bus lanes.

London has also recently introduced the Air Quality Business Fund to help companies adopt EVs. This is where businesses can apply for a share of £1 million to help deploy electric cars and charging points to reduce pollution in the capital. The fund itself aims to create five business low emission neighbourhoods. The winners of the fund will be able to use £200,000 to encourage inhabitant to walk, cycle or use public transport, as well as installing EV charging points.

Forward thinking firms as a result are giving careful consideration to the opportunities offered by EVs and are starting to weigh up the pros and cons of their investment. The savings in terms of tax breaks and grants, in addition to fuel cost savings are making a compelling business case.

Electrical charging infrastructure set to grow

The electrical charging infrastructure has long been something of concern in consideration to adopting EVs, however the Queen’s speech which followed the State Opening of Parliament set out the priorities of Government to include improving the national charging and hydrogen refuelling infrastructure.

The legislation will allow the government to require the installation of charge points for electric vehicles at motorway services and petrol stations. Such legislation is essential for making charging faster, cheaper and easier for businesses, helping to accelerate the adoption of EVs and discourage negative concerns.

But will electricity supply cause future issues?

It has also been considered that the rising uptake of Electric Vehicles itself may even start to form one of the challenges against them.

When you consider the fact that more and more requirements on the grid for electricity may cause significant shortages of supply, one solution could be the installation of off-grid power solutions such as PV or wind turbines to deal with the increasing demand on the energy infrastructure.

As the demand for Electric Vehicles continues to grow the impact on energy supplies and the transport infrastructure to meet future needs will be tested.

Whilst there are many challenges surrounding the uptake of EVs the opportunities continue to outweigh them with significant savings to business as well as going a long way towards meeting air quality requirements.

 

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Outmoded, inflexible and server-based service management software can make it difficult for companies to grow. However, thanks to the fully automated, integrated and optimised cloud-based workflows facilitated by Tesseract, SCS Technologies Ltd has found scaling up a piece of cake.

SCS is a leading UK-based provider of technological solutions to hospitality, retail, utilities and telecommunications companies, along with local authorities and social housing organisations. Its solutions include TV systems from Samsung, Philips and LG, Wi-Fi, satellite services, TV distribution systems, digital signage, and security systems such as CCTV and access control. High-profile clients include BT, Next and Vodafone. It also provides and maintains the TV systems for every Travelodge in the UK, which amounts to approximately 40,000 rooms in over 540 hotels.

SCS has been using Tesseract’s field service management software for the past 18 years. At first it was used for call handling only, but has since grown into a cradle-to-grave system covering everything from contracts to scheduling to logistics and stock management.

Clearing space for a new meeting room

Tesseract has allowed SCS to go completely paperless. Job sheets no longer exist. Engineers use their smartphones to access job, site and contract information, input service reports, and get electronic signatures from customers to close down jobs. Parts are requested and tracked through the system, and invoices are sent automatically from the database to the customer, rather than being printed out and posted via Royal Mail. This saves time as well as paper. The days of looking after everything with six whiteboards on the office walls are a fading memory.

“Not only have we been able to drastically reduce paper, printing and postage costs,” says Mark Kenyon, Managing Director for SCS, “but we’ve also saved massive amounts of space. One of the rooms in our office used to be wall to wall with paperwork and filing cabinets. Now we use it as a meeting room.”

Scaling up with SaaS

For many years, SCS used an on-premise version of Tesseract’s software that the company purchased outright and hosted on its own server. A few years ago, SCS upgraded to Tesseract’s Service Centre 5.1 (SC5.1). This is a cloud-based version, hosted in-house by Tesseract and licensed on a subscription basis — better known as software as a service or SaaS.

SCS moved to SaaS for a number of reasons. First was the heavy IT burden that comes with on-premise software. Maintenance, fixes and updates aren’t instant. You either have to handle them yourself, or call your provider to assist you. It meant that SCS’s system didn’t move forwards at the same pace as Tesseract, because time and money sometimes inhibited the company from integrating the latest improvements.

With SaaS, all maintenance, fixes and updates are done in-house by Tesseract and distributed instantaneously to all users. It means that SCS is always up to date. And because all data is backed up centrally too, this saves SCS from having to back up its server in order to keep its data secure.

 

There’s also less risk with SaaS. Using on-premise software meant that if SCS’s server was damaged somehow, e.g. by fire, then the company wouldn’t be able to operate. Using Tesseract’s SaaS means that if something were to happen now, SCS’s teams could still access the system and work from home.

These benefits combined have allowed SCS to grow much faster than on-premise software allows. Mark Kenyon explains, “Tesseract has been key to our ability to expand our teams and acquire other companies. We purchased a local company in 2015, absorbed another in 2016, and took on staff from a company that had gone into liquidation later that same year — all made simpler and easier by the flexibility and scalability of Tesseract’s SaaS. Things are definitely better in the cloud.”

More visibility, more accuracy

SCS enjoys far greater visibility with Tesseract. The elimination of paper and centralisation of all its field service data means that everybody can see what’s happened or happening on a job. Service reports, invoices, purchase orders, parts requests and stock movements are all on the system for everyone to access in real time. This makes reporting and responding to customer queries faster, easier and more accurate, and eradicates any data gaps caused by the loss of paperwork.

It’s improved the accuracy of SCS’s invoices, too. Carol Newall, HR and Finance Manager for SCS, says, “In the past, the odd extra 10 minutes might not have been billed, and certain small replacement parts were sometimes missed. Now that the system automatically calculates timings and tracks every part, every opportunity for revenue is captured. Thanks to Tesseract, nothing gets missed.”

A roadmap for the future

SCS hasn’t managed to eliminate all manual processes from its service operation just yet. Quotes are still done manually, and there’s currently no way of checking which quote was accepted, apart from going back into emails and comparing figures. This makes it difficult for SCS to track its margins. As a result, Tesseract’s Quote Centre and Prospect Centre are part of SCS’s roadmap for the future.

Another module SCS will soon seek to implement is Tesseract’s Repair Centre. At first, SCS didn’t think it was needed. But since repairs are managed manually, the lack of visibility is fast becoming an area for improvement in SCS’s otherwise very efficient service chain. SCS is keen to implement Repair Centre so that everyone in the company can track the movements of faulty or damaged parts without having to trawl through the minutiae of a spreadsheet.

 

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Michael Blumberg, President Blumberg Advisory Group gives us some insight into his recent conversations at Field Service Fall in Florida last month, where Augmented Reality was once again one of the hot topics of the conference...

I recently attended WBR’s Field Service Fall 2017 conference in Amelia Island, Florida where there was a lot of buzz among participants about Augmented Reality and Virtual Telepresence. Many industry experts, observers, and practitioners believe that these technologies will have a dramatic impact on field service delivery in terms of shortening resolution times, improving first time fix rate, and reducing travel costs.

In my discussions with conference attendees, I concluded that Field service leaders face several challenges when it comes to making investments in modern technologies like Augmented Reality (AR) and Virtual Reality (VR). One obvious challenge lies in determining whether the investment is currently a priority.

To answer this question, they need to have a clear understanding about what problems they are trying to solve and what results they are trying to achieve through it.

The best way to answer these questions is to develop a use-case justification based on the Key Performance Indicators (KPIs) that are improved through the deployment of these technologies.

The second biggest challenge has to with the confusion that exists among field service leaders with regard to alternative and/or competing platforms, for example, AR versus VR. . By definition, VR offers a digital recreation of a real life (or fantasy world) setting, while AR delivers virtual elements as an overlay to the real world. There is also Mixed Reality (MR) where we see a merging of real and virtual worlds to produce a new environment and visual image where physical and digital objects co-exist and interact in real time.

These platforms involve different levels of investment, time, and complexity to implement. AR is typically the least expensive and fastest platform to implement.

Many AR solutions that are available on the market today can be developed, implemented and rolled out rapidly. In contrast, VR and MR platforms often require extensive programming, development, and integration before they can be rolled out to the field.

 

On the other hand, VR and MR provide a more feature-rich environment and visual experience than AR. For example, AR/MR can overlay 3-D digital twins of a sub-assembly and generate animated repair procedures as well as virtual dashboards of machine performance.

A significant investment is required to implement this type of platform and these investments often require input from various internal stakeholders including engineering, sales, marketing, manufacturing, and finance. For some OEMs or other service providers it may be cost-prohibitive to retro-fit their existing installed base with this type of technology.

A common misconception is that wearable glasses must be incorporated into an AR or VR solution. These devices may not be practical or ergonomically suited for the task at hand. However, this is just one component of the platform so all hardware and software needs must be considered with each solution. Other viewing devices, such as a smart phone or tablet, can be used to generate a remote, collaborative experience.

Many field service leaders are taking a wait-and-see attitude to implementing AR/VR/MR in hopes that costs will decrease and better versions will be available in the future. So why not wait? Field service leaders must remember that time-to-market is everything. FSOs that wait too long to take advantage of this technology may lose their competitive advantage and market share.

Once field service leaders decide on a course of action here is how to get started: The optimal approach, one that will guarantee early success, is to select a mature AR solution that can be rolled out with minimum upfront programming, software development, and systems integration.

FSOs are also advised not be overly concerned with developing an exhaustive list of feature functionality that can be included in their AR solution.

This is because AR features are continuously evolving, and too much planning into an unknown future will slow down the evaluation and selection process. Most AR solutions are available through an On-Demand model, which means new enhancements will be available as part of the subscription.

 

Lastly, FSOs are urged to demo and pilot, yes, pilot products from multiple vendors. Unlike enterprise software or mobility applications, an FSO can run multiple pilot projects with limited upfront investment in time or capital.

When it comes to selecting an AR vendor, remember that AR is a part of a broader digital transformation impacting the company.

Choose an AR partner who will work with existing IT platforms and overall strategy and can provide guidance in how to best integrate their solution. FSOs are advised to consider the following criteria:

• Sensitivity to customer’s needs – In other words, select a vendor that understands that AR is still a relatively new technology and that education and some amount of “hand-holding” is required to ensure a successful pilot and/or implementation.
• Flexibility – Vendors create win/win situations by providing their customers with flexibility. The two most critical areas where flexibility wins are business-model and software requirements. Flexible vendors offer alternative pricing methods and flexible software-feature options.
• Knowledge of best practices – This refers more specifically to best practices around change management and adoption and usage.
• Ability to integrate AR platform with ERP solutions – This will enable FSOs to store and retrieve remote sessions with dispatch work orders.
• Products that can operate in a low-bandwidth communication environment – This will facilitate the ability of FSOs to use AR in remote geographic areas.

Selecting an AR solution based on these criteria will help ensure successful results.

 

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