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Manuel Grenacher, CEO, Coresystems explains the Crowd Service concept...

There has been a rapid increase in technological advancements designed to enhance our quality of life and a consistent trend towards gadgets that save us time. From checking in for flights on our smartphones to having our food home-delivered, we have become accustomed to getting things and accomplishing things as quickly as possible.

Where we stand now 

Recent surveys conducted across a broad spectrum of people located in numerous countries determined that 60% of consumers defined a bad customer experience as one that involves waiting a long time for service after booking an appointment. Customers want reliable and fast service, and they want it in real-time. They are looking for convenience:

Time is Precious: Every moment spent waiting for a technician is one spent away from other important activities. Consumers do not want their time taken for granted. They expect service in real-time.

Keep It Simple: Complex booking systems that involve multiple steps or unnecessary time investment (e.g. being on hold with call centres) are a big turn off.

Freedom to choose: Customers do not want to have to fit their lives to the suppliers’ schedules.

They want the flexibility to decide which service appointment best accommodates their day.

Room for Improvement

The problem: many of the gadgets produced for our consumers, though intended to buy them a few precious moments a day, are in fact costing them even more time. Minutes lost on hold with customer representatives. Hours spent waiting for technicians to arrive. Days lost because machines have broken down and can not be repaired immediately.

According to studies, “61% of all field service suppliers cited ‘customer satisfaction’ as their top measure for success”. However, they simultaneously ranked ‘response time’ (3%) and ‘customer complaints’ (5%) as substantially less significant priorities.

When taking into account what customers really value – real-time service and their time – the current supplier ranking of priorities needs to be adjusted to reflect what would actually keep customers satisfied. Emphasis needs to be placed on optimising field service and reducing the amount of time it takes to meet service demands.

The Surmountable Roadblock

Though it is easy to isolate the best way to improve customer satisfaction, many field service suppliers still face a serious obstacle when it comes to addressing this need. Real-time service requires access to an extensive, widespread and qualified workforce. Access that many suppliers do not have.

A lack of trained and readily available personnel has always led to longer wait times and unsatisfied customers. However, the dawn of IoT is making the problem more pronounced. More and more devices are interconnected. Predictive technology is making it possible to accurately foresee technical malfunctions and breakdowns before they occur. There is a greater demand for service than ever. And yet the number of technicians that most service providers has on hand has remained the same.

The reason for this is mainly the cost factor. Hiring full-time technicians is expensive. Particularly when they are needed for short-term projects. In addition, hiring full-time service employees does not guarantee that they will be where they are most in demand. Having a full-time team member in a remote corner of the globe is not a viable business model.

However, having access to a skilled worker who could provide these same services in remote areas is. What is the solution?

The Solution Is Crowd Services

This is where the Uber-like on demand model prevails. The company created a business model that utilises untapped resources to meet an unfilled demand Receptiveness to this concept of the shared economy has given rise to the crowd service model. And it is being applied to field service management.

The creation of a crowd – a group of competent and certified technicians, partners or freelancers available upon request – to accommodate the growing need for real-time service is a game changer in field service management. Companies have all the benefits of skilled labor, at a fraction of the price. It saves companies enormous overhead costs and end customers the most valuable commodity: time.

Revolutionise the Way You Do Service Before It’s Too Late!

Coresystems, with its ample experience in platform implementation and extensive knowledge of all legal aspects, is pressing this revolution forwards by providing the software that makes crowd service implementation possible.

We are on the cusp of a significant shift. If one supplier does not start adapting to real-time demands, consumers will find a supplier that does.

Now is the time to adopt the measures necessary to keep pace with IoT and the direction it is taking us. Make your service model about real-time convenience served up quick and hassle free.

When customers feel that you value their time, they will value your products. Only crowd service can deliver in real-time. Empower your ecosystem today

 

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David Troll, SVP, Sales & Customer Operations, Glympse puts forward one potential innovative solution of the perennial field service challenge of getting parts and engineers aligned at the same time...

“You can’t deliver a part to a service van.”

This is something we hear often in the field service industry. The reality is, you can.

A recent Aberdeen Group report found the top reason for a failed service visit is parts unavailability1. This is a critical factor in achieving first-time fix (FTF), which is a top driver of customer satisfaction. Without the right parts at the right time, field service businesses face not only increased costs (truck re-rolls) but also lower NPS/CSAT. Yet many factors affecting parts availability are beyond the control of field operations, making the FTF elusive. Assuming the dispatched technician has the skills and expertise to solve the problem, there are still numerous issues that can arise. The initial diagnosis may have been incorrect, only to be discovered on site; the historical record doesn’t match the actual parts used in previous repairs; or fixing the first problem reveals additional issues, requiring new parts.

Some cutting edge technologies like 3D printing (in the field service van) and drone delivery are being explored as possible solutions. They hold promise in the future, but neither is a realistic option today.

Nor will they ever fully address complex, heavy or sensitive parts.

However, current technologies like location services and the Internet of Moving Things (IoMT), including connected vehicles, provide a readily available solution to enable better spare parts delivery, in pursuit of happier, stickier customer engagements.

With three simple steps, you can turn any field service van into a mobile, on-demand parts depot.

Step 1: Source the Right Part

A technician’s options for sourcing a needed part are limited. He can drive to a nearby warehouse, find a co-worker with a spare, or buy it at a local supply store. All of this is time-consuming and inefficient, which can frustrate the customer and worse, jeopardize SLAs – resulting in penalties.

Without a readily available part, the technician may have to wait around (inefficient) or defer to a follow up appointment (bad service experience). SPL providers have the networks and logistics expertise to handle some of this with just-in-time courier delivery, but they still need to connect with the technician.

By logging all inventory (assets, parts, consumables) and making it discoverable based on its location or affiliation with a vehicle, you can gain visibility into all parts options. By integrating your parts management system with your fleet management or field service system, you can achieve maximum efficiency.

Step 2: Apply Location Services to Vans, Parts and People

Regardless of where you source the spare part - a warehouse, a co-worker’s van or an SPL courier -  coordinating streamlined delivery to the job site is crucial.

Leverage a robust location platform to show stakeholders an accurate ETA and location for a spare part handoff. Choose a partner with the flexibility to build sophisticated live map views that enable a real-time holistic vision of people, vehicles and relevant parts in a connected ecosystem.

Finally, determine which scenario(s) you’ll empower your teams to execute:

• A field manager or teammate secures a part from a warehouse and delivers it to the technician
• A technician on the road with the missing equipment drops it off to his nearby teammate
• A colleague or 3rd party courier is dispatched
• The technician locates the part at a warehouse, depot or supply store and travels there himself for a quick pickup

At Glympse, we help customers around the world like Charter (formerly Time Warner Cable), Comcast and others provide the ETA of their field service technicians and deliveries via live map and proactive alerts. We are working with others to provide that same location services platform to inform technicians about exactly when their co-worker or courier will arrive with a spare part and help the delivery person find the technician quickly.

Step 3: Enable the Connected Vehicle for Unattended Delivery

Speed and efficiency are critical for a FTF.

Technicians can’t afford to stop working to wait for a delivery or go into a warehouse/store to pick something up. Instead, make the trunk of your technicians’ vehicles the warehouse or delivery depot.

With location technology and today’s smart-car capabilities, it’s simple. Integrate your connected vehicle with location services to automatically unlock a trunk (using a secure, one-time code and a geofence trigger) once the delivery or pickup person is in proximity of the vehicle.

The part is delivered and ready for the technician when he needs it - right in his own van.

Alternatively, a technician could leverage his connected vehicle to alert a warehouse manager of his ETA and verify his identity for a fast, curbside pickup with zero waiting.

This is just the beginning.

Emerging technologies and location-enabled ecosystems are set to change the way we operate, making field service execution more efficient and effective, driving unmatched customer satisfaction.

For now, we’re well on our way to making sure availability of parts is never a barrier to satisfying customers.

 

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Dan Dillon, Vice President of Marketing, Mobile Reach explores the key criteria for industry benchmark Gartner when it comes to field service and mobile applications...

In the 2016 Magic Quadrant for Field Service Management, Gartner identifies four key drivers of mobile app adoption for field service organisations:

• Improved technician utilisation
• Improved customer satisfaction
• Increased dispatcher efficiency
• Increased service profitability

Mobile apps that enable these performance improvements are among the most important requirements a field service organisation can have when choosing a mobility solution. But not all mobile field workforce enablement tools are the same, so how does one know what to select?

A new white paper published by Mobile Reach includes a set of critical capabilities for enabling field technicians with mobile apps to help ensure your implementation drives exceptional results.

Best-in-class mobile solutions are designed for the unique tasks your field service technicians fulfill, and the apps function effectively under the constraints of your specific environment. There are several critical capabilities for strategic mobility in field service management. At a more granular level, strategic mobile apps:

• Are flexible to mould to your organisation’s field processes. To accomplish this, a mobile platform with a rapid application development tool is a necessity. This gives the field service organisation the ability to easily configure the apps to match field workflows.
• Connect directly into the enterprise service platform, ERP and/or CRM system. Many solutions use separate staging databases or plugins that require additional administration and support costs. Selecting a mobile platform that connects directly into your service platform or ERP system prevents the need for additional development resources and reduces potential points of failure.
• Need to operate offline. Offline capability gives field techs the ability to do their jobs even in remote locations with spotty or no network connectivity. Techs can continue to work and capture data regarding work time, asset status, or any other condition. Once the tech receives an approved network connection, data is synched with the back-end service platform or ERP system.
• Must support various modes of data capture and necessary peripheral devices — Bluetooth barcode scanners, RFID-enabled devices and signature capture pads to name a few.
• Operate on all mobile operating systems that your organisation currently supports or is expected to support in the foreseeable future — iOS, Android, and Windows Mobile.
• Support all peripheral devices that your organisation currently supports or is expected to support — smartphones, tablets, ruggedized barcode scanners, and Bluetooth-enabled devices like handheld barcodes scanners for inventory management.

There are a range of use cases that leading field service organisations solve for with strategic mobile apps that go well beyond standard work order management.

Field service managers can use GPS coordinates to track field techs and view technicians on a map for dispatch efficiency. Mobile apps can also be used to route field techs to a job site with a map and turn-by-turn directions.

 

Once at the job site, field technicians and engineers can receive push notifications and alerts from the service team informing them of new needs, tasks or other relevant information. To help mitigate the complexity of work, field techs should be able to use apps to collaborate with other field techs and the service team in real time.

In terms of work orders, field techs need to be able to record time on a job, and track when individual tasks and jobs are completed. Perhaps most importantly, technicians need to have the ability to create and manage change requests out in the field. The “Field Service 2016: The Technician’s Perspective” report showed that just 22 percent of technicians have the ability to capture customer requests via mobile apps, while 77 percent of technicians say that solving customer problems is the aspect of their work they enjoy most.

Field service organisations aiming to improve upon technician utilisation, customer satisfaction, dispatcher efficiency and service profitability should consider these critical capabilities for mobile apps. Those that do not are likely to miss out on a significant opportunity to increase their competitive advantage in the marketplace.

A full analysis of how strategic mobility for field service management drives long-term business value is available in this free white paper, “Mobile Field Workforce Enablement Drives Business Value.”

 

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Starting out as a specific day to the Field Service USA program in 2011, the medical device attendees were so hungry for a more focused agenda that Field Service Medical ran as a separate event come 2012 and is now the premiere event for service executives in the med-tec space. Jonathan Massoud, Divisional Director WBR talks us through the latest industry trends and gives us a look at what to expect at this year's event...

 

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Thinking of going but still not got your tickets? Field Service News readers are entitled to a 25% discount to this event. Visit: fs-ne.ws/6Gfp308FA2N and use the code FSM17FSNEWS

 

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Every OEM that we surveyed in the lead up to the creation of 2017’s agenda mentioned regulatory guidelines and compliance as a concern. Right now, compliance becomes more critical as the FDA’s current focus is on third party providers and their relationship with OEMs.

Strict guidelines are a necessity. In a life or death setting, there is no time for faulty equipment.

There is a reason why OEMs are concerned, however.

These very regulations can impede innovation.

For example, apps built within a CRM that are not “quality certified” get shut down. Due to the sheer number of spare parts, regulatory bodies are forced to cherry pick what, when, and where they’re going to enforce.

Unless you are a big hospital or facility, JCAHO cannot enforce everything 100% of the time, creating an inconsistency in who is being carefully watched over.

Still, medical device equipment, spare parts, and how the technician fixes the machine have to comply with a multitude of rules. And as long as there is consistency and a quick turnaround process for approval, the OEM can appreciate this.

[quote]Despite how much compliance crackdowns may hinder ingenuity, money is continually poured into R&D for new products since the industry is fueled by the moralistic end-goal of improving quality of life.

Despite how much compliance crackdowns may hinder ingenuity, money is continually poured into R&D for new products since the industry is fueled by the moralistic end-goal of improving quality of life.

 

According to MDDI in a telling article entitled American Medtech Market to Grow 6.4% Annually Through 2017, “By 2016 the medical device market is projected to reach $134 billion.”

As this industry grows in revenue, there is a bigger focus on after-market service quality to create a brand differentiator, as they are selling to an increasingly shrinking customer.

Service needs a PR makeover. Customers are demanding more than just having a tech come over to fix a machine when it breaks. In fact, they want to see diagnostics tools being used so that the machine doesn’t break in the first place – or at the very least have a tech fix the problem remotely.

While it was once considered just a cost, service has a new role in revenue production, with some companies already having their service and sales departments integrated.

Due to this focus on cross-functional integration, OEM executives have finally come to realise that after-market service is a critical component to the customer’s experience.

This leads us to Field Service Medical 2017:

Day 1: Be Proactive Rather than Reactive:

• Create a business case for IoT to implement the right technologies for your organisation
• Be prepared for the shift and strategise how each department will be responsible for the technology before it is implemented
• Understand how end-users evaluate your product to drive operational decisions for delivery

Key sessions:

• ‘Can You Hear Me Now?’ Get Customer Metrics Through Your Call Centers – Tom Buckley, Director, Global Technical Service, Boston Scientific
• Workshop: Take a (Strategic) Leap Towards Connected Devices – Dan Barnett, Director, Customer Service, Abbott Laboratories

Day 2: Reinvigorate Your Culture

• Utilise service as a brand differentiator rather than a cost-reduction and implement this into your training and philosophy
• Navigate a complex regulatory environment by knowing what is in the pipeline and gaining clarity on gray areas surrounding third parties
• Identify the relevant metrics for measuring service success to actually tell a customer experience story with your data

Key sessions:

• Panel: What’s Unique about Your Service Solutions? – Amos Schneller, VP, Global Service and Technical Support, Medivators; Steve Nava, Director, Field Service Americas, Luminex; Ed Klosterman, Director, U.S. Field Service Operations, bioMérieux
• We’re Engaged: Training a Field Service Team Despite Long Distance – Steve Nava,Director, Field Service Americas, Luminex[/unordered_list]

Day 3: Achieve Cross-Functional Integration

• Overcome the bias about siloed roles and implement service into your R&D, marketing, and sales team right from the start
• Integrate service and sales to create a dual-sided profit center, selling service as a product
• Collaborate better with your marketing and IT team to get the service message across more effectively

Key sessions:

• Service is a Product – How to Sell it That Way! – Jeff Yates, National Service and Repair Manager, U.S., Richard Wolf Medical Instrument
• Panel: Shift from Customer Service to Customer – Karl Geffken, Senior Director, Marketing - Global Services, Medtronic; Catherine Read, Director, Customer Engagement, Carl Zeiss

 

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Thinking of going but still not got your tickets? Field Service News readers are entitled to a 25% discount to this event. Visit: fs-ne.ws/6Gfp308FA2N and use the code FSM17FSNEWS

 

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The Internet of Things has been positioned as the key technology that will lead to a true evolution of field service delivery. Bill Pollock, President of Strategies for GrowthSM looks at the challenges revealed in his latest benchmarking research and explains how IoT will help field service organisations meet these...

The Convergence of the IoT and Field Service Management (FSM)

The Internet of Things (IoT) is not a new concept.

To a growing number of services managers, the two are inseparable as they have been integrally linked together for as long as they have been heading their organisation’s services operations.

This is especially true in an environment where an influx of millennials are rapidly replacing baby boomers in virtually all aspects of the services sector; where the “marriage” between Field Service Management (FSM) and the IoT is generally seen as a “given” with respect to providing the organisation with the ability to satisfy the total needs, requirements and expectations of their respective customers.

As such, this “marriage” is somewhat analogous to the Reese’s Peanut Butter Cup, or taking “tried and true” favourites like chocolate and peanut butter, integrating the two together, and coming up with something “new” that the marketplace simply cannot live without. The big difference, however, is that the IoT is much more than just a tasty morsel - it is transforming the very core of field service management.

However, the IoT, in and of itself, cannot transform a poorly run Field Service Organisation (FSO) into an efficient operation; nor can it turn an unprofitable one into a cash cow.

 

However, it can clearly help to re-position an already well-run organisation for accelerated growth, heightened market position, improved effectiveness, improved customer satisfaction and increased profitability. For a growing number of FSOs, the greatest determinants of their commercial viability – and profitability – are the efficiency, functionality and effectiveness of their IoT-based Field Service Management (FSM) solution.

There’s FSM, and Then There’s the IoT-powered FSM

For most field service organisations (i.e., Gartner estimates roughly 75%) FSM solutions are no longer “new” to the services industry – they are a fact of life. What is still news, however, is how easy they now are to implement, as Cloud technology has essentially normalized the playing field so that FSOs of all types and sizes, and serving any geography, can benefit from its implementation.

The results of Strategies For GrowthSM‘s (SFGSM) 2016/17 Field Service Management Benchmark Survey report that the top opportunities, or benefits, cited by FSOs with respect to acquiring and integrating new technology (i.e., the IoT, among others) are:

• 44% Ability to run a more efficient field service operation by eliminating silos
• 39% Improve customer satisfaction
• 35% Ability to provide customers with an end-to-end engagement relationship
• 30% Establish a competitive advantage
• 26% Improve field technician utilisation and productivity
• 25% Reduce Total Cost of Operations (TCO)

The survey data also suggest that the opportunities and benefits significantly outweigh the challenges for a clear majority of FSOs – but, they still exist.

However, the IoT helps to make it all possible by allowing the new technology – in most cases – to easily integrate with existing FSM systems.

This is particularly true for FSOs whose FSM solutions are already built on a Customer Relationship Management (CRM) platform, where the addition of field service management functionality may be as easy as simply adding a module to the existing system. This is an important factor – and it should be – for FSOs as they make their decision to acquire a specific FSM solution.

The SFGSM survey research also reveals that, for a near majority of FSOs, this decision is “impacted mostly” by:

• 50% Prefer a solution that interfaces with CRM
• 47% Prefer to work with a single provider of Field Service functionality
• 47% Prefer a solution that is intuitive and easy to train on
• 45% Integrating new technologies into existing FSM solution platform

Another 35% also prefer to invest in a solution that fosters collaboration between Sales and Service as a top decision-making factor.

What the Future Holds for the Convergence of the IoT and Field Service Management

The “future” of field service is already here!

Today’s IoT-powered FSM solutions already provide FSOs with the ability to monitor equipment remotely, and transmit data into the business’ database in real-time.

 

The greatest manifestations of this pervasive technology may be best described in the providing FSOs with the capabilities to:

1. Collect whatever data that are needed to improve a process, or improve a product, based on its measured, monitored and tracked usage
2. Switch to a lower-cost predictive model vs. the more traditional – and more expensive – preventative maintenance model
3. Determine which services to offer to customers that the organisation cannot offer today (e.g., a next-level guarantee against downtime, which can be turned into a premium service, etc.)
4. Sell, cross-sell and upsell new services, packaged as competitive differentiators
5. Create a more effective KPI program that can measure, monitor and track both the still-relevant traditional KPIs, as well as the “new” KPIs that are being created through the use of the IoT

The IoT technology is readily available; the market demand is here; and the positive impact on the bottom line of an FSM solution, powered by the IoT, is quite compelling. Just like the Reese’s Peanut Butter Cup, the market does not really care how the chocolate and the peanut butter are engineered into the final product; they just know that it tastes good, and the two ingredients work exceptionally well together – just like the Internet of Things and Field Service Management.

 

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Jan Van Veen, explores the concept of momentum within a field service organisation and outlines the Momentum Framework - a series of best-practices and tools that can allow you to ensure your organisation flourishes in today’s increasingly competitive markets...

Manufacturing companies have a huge potential with their services. But many struggle to gain the Momentum to make it happen.

The problem is not their vision or business strategy.  It’s all about their ability to execute and change.

After all, service innovation is a serious business innovation.

The winners in our rapidly changing world have adopted modern management perspectives and practices and thus increased Momentum to change. The common management perspectives and practices fail today, as they create resistance against change.

The problem

Most manufacturing companies focus on incrementally improving performance of existing operations.

They follow tight “planning & control” management practices which trigger defensive behaviour and resistance against change. The typically suffer from:

• Ongoing performance issues, without adequate, timely and sustainable interventions
• Failing execution of strategies and change programmes
• No significant innovation beyond incremental improvements of current products and practices
• No preparations for (potentially) disruptive change

Without a rapid pace of continuous change, companies will struggle to develop a strong service business and will not thrive in our rapidly changing world.

What is Momentum?

In an organisation with high Momentum for continuous change, people are passionate and eager to perform, develop, grow and make things happen.

They take action in a coherent way. They collaborate with teams across the entire organisation. People feel safe and confident to engage in ambitious objectives, to pursue the uncertain, to drive change and to collaborate. Everyone is open to new ideas, new approaches and new opportunities.

The Momentum Framework – high level overview

The winners of today and tomorrow already have adopted modern management perspectives and practices and hence increased Momentum. They have flourishing and mature service-oriented businesses and outperform their competitors.

During our research in 2015-2016, we have established the Momentum Framework, which include the Momentum Perspectives and Practices, as well as practical approaches and tools.

Momentum Perspectives

Three perspectives are key to successfully use Momentum Practices and drive Momentum.

The majority of people in the organisation need to believe in these perspectives and use these as guiding principle in all decisions, actions and communications.

People drive change: By nature, people can and want to drive change, if there are good reasons and no serious obstacles.

Resistance does not come from people themselves, but is created by the way we have been managing and leading our companies.

Capabilities drive performance: People and organisations can only deliver sustainable high performance through adequate (organisational) capabilities. Pushing performance by merely working harder and faster is considered not to be sustainable.

Future success lies beyond business as usual: In a rapidly changing world, there is no sustainable success without adaptation and adjusting the core business, business models and organisation.

 

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Momentum Practices

The best-in-class manufacturing companies use modern “sense & respond” management practices at all levels and entities.

They have abandoned traditional “plan & control” management practices.

Compelling direction: Winning manufacturers have defined ambitious goals for the entire organisation about increasing their relevance for their customers and achieving high growth figures.

They have painted a concrete picture of the unmet customer needs, the future offerings and required organisational competencies.

People can relate to this, get exited and see how they will fit in and how they can contribute to the change in a coherent and aligned manner.

Strategic dialogue: Best-in-class manufactures have a clear corporate strategy on choices, priorities and approach.

Objective and targets for sales, service, R&D - what have you - are all aligned towards the common  goal of becoming a more service oriented solution provider.

Each local entity and department takes ownership and has its own strategy and roadmap to move from their specific as-is situation, considering their specific circumstances, towards the envisioned future.

Objectives are not just numbers to hit every month or quarter. They articulate ambitions, direction and focus. Any issues in progress or results are confidently and transparently shared and discussed.

This leads to timely and adequate collaborative interventions. People feel safe and confident to try, to respond, to take ownership and do their best to make things happen even though the outcome is uncertain.

Continuous learning: Innovative and responsive manufacturers regularly explore (potential) trends, new threats and opportunities. New ideas are regarded as the way towards sustainable success.

New ideas are never cut off because it would be different than usual or would not fit in the (current) core-business.

Momentum Road Map

The leading companies followed a road map for building momentum, from mobilising, through increasing to sustaining Momentum.

Most of them started mobilising momentum by creating awareness and a shared concern. Leaders stood up and led the way and spread the mind-set of “just-do-it!”.

Soon they further built solid perspectives and practices into habits and ultimately embedded this in the culture and DNA of the organisation.

Once in the DNA, Momentum will survive even a change in leadership.

 

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How much Momentum do you have in your organisation?

Get Your Free Professional Momentum Score Card @ www.van-veen.nl

The Momentum Score Card benchmarks your organisation’s Momentum to continuously change for sustainable success. It helps you identify your strengths and how to improve Momentum to:

Have better interventions for (ongoing) performance issues

• Have easier and quicker execution of strategies and change-programmes
• Have better value innovation for future success

The Momentum Score Card is based on our research in 2015-2016 into “Momentum for Sustainable Success” and the Momentum Management Framework which we developed during this research.

 

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The key to digital transformation for field service organisations lies in people and not technology writes Nick Frank of Si2 Partners...

“The rate of increase of industrial devices being connected to the internet is up 25% per year, but customers don’t really appreciate how the capabilities and benefits of the IoT are relevant to their business’

So says Dave Hammond, Product Manager at MAC Solutions. And he should know, as he sells and manages the market leading eWON router, which enables industrial equipment to be accessed securely and remotely, across the Internet. For business leaders, his ‘grass routes’ observations are far more insightful into the challenges of monetising data, then the many articles routinely churned out on the subject.

It highlights the importance of mind-set above all else, which is all about getting back to management basics, a point that many commentators have lost sight of. What becomes clear from talking to people like Dave is that servitization, industrie 4.0 and Digital economy have little perceived relevance to SME businesses at the moment. Their focus is on better meeting the needs of their customers but mainly reducing costs. Many are enabling their equipment for remote connectivity with a business case solely based on savings and cost reduction.

 

They can easily imagine and so justify the investment based on a reduction in costly service visits through remote diagnosis, especially during the warranty period, where they bear 100% of the cost. With the number of devices being put on-line booming, everything sounds pretty good with the market. But Dave and his colleagues at MAC are concerned at the lack of ‘market understanding’ from the UK SME’s they talk to.

In their ‘Connectivity Roadmap’ most customers are stuck at level 2 - ‘Get Connected’, which is all about cost! They struggle to justify moving to the next phase of delivering proactive service revenues and ultimately transforming their business.

 

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So what are the underlying causes of this stagnation and an inability to step up to the challenge?

Part of the reason lies in the lack of maturity of the tool sets being developed by IoT providers such as GE, Microsoft and PTC. In the last 3 years, huge investments have brought these tools into the realms of reality, but they are still relatively cumbersome to integrate into the business processes.

Despite what you might read, it is only larger businesses that have the resources to invest in developing their own bespoke infrastructure; and even then, most of the tangible gains remain in the area of cost reduction.

For many in the industry, another challenge is around culture. Most quarters of industry have struggled to really imagine what the technology can do for their business. They have become trapped in product-centric thinking, rather than deeply analysing where the value is delivered within their customer and industry value chains.

The good news is that the business case to ‘Get Connected’ is so inequitably clear, that at least many engineers have been encouraged to pilot the technology and learn for themselves what it can do.

A second challenge is the conservative nature of many industrial businesses in adapting to fundamental change. Together these represent a significant mind-set issue.

The message for many businesses is that to maximise their return on technology investment, they would do well to challenge their current culture to become more outward orientated and service focused.

 

This means not only better understanding customers’ needs and their immediate problem.
But moving deeper into how to harness their inherent know-how and technology to help their customers make money. By moving emphasis away from technology towards outcomes and operational excellence, many businesses will be able to deliver more value and hence profitability.

The problem is that this is a ‘back-to-basics’ approach, based on common sense and, as we all know, common sense is one of the hardest elements of business upon which to act. Leaders can start by encouraging an ‘outside-in’ approach, taking a long hard look at the value they add to their customers and how they influence the industry value chain.

Then together with the experiences they gain in understanding the power of these digital technologies, they will develop the insight and confidence to turn data into profits.

So, if you sense your initiatives in developing these new capabilities are slowing down or not meeting your expectations, perhaps there are three basic challenges for you to review...

1. Do you have the right level of insight to use your know how to make your customer more profitable?
2. Do you know how to use information to make your operations more cost effective?
3. Are your people encouraged to explore new ideas and have an environment and process in which innovative ideas can be turned into reality?

 

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Nick can be contacted on nick.frank@Si2partners.com Si2 ON-Demand is a unique advisory and support service that enables top performing leaders to solve problems and get things done, quickly, easily and cost effectively.

 

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The rise of the connected fleet has been discussed as an emerging technology with huge potential to change field service operations for some time now. However, we are now reaching the point where the discussion must move from theoretical to practical - so just what will the impact of the connected fleet be for field service organisations?

As more and more fleets become connected with on-board equipment straight from the OEM, is there still a need for companies operating a mobile workforce to work with traditional telematics providers?

Field Service News spoke to sector experts to understand how the fleet management industry is evolving and what the impact this rapid period of technological change will mean for field service organisations.

So just what exactly does the rise of connected vehicles mean for the fleet management sector?

“Ultimately, the rise of connected vehicles means both telematics suppliers and customers will benefit from a higher quality of vehicle information and reduced operational overheads,” explains Sergio Barata, General Manager, Telogis EMEA.

“It should be viewed as an opportunity for telematics providers to refocus their solutions so they leverage the new possibilities these technologies will bring. For different providers this may mean different things, but at Telogis our focus has been to develop a single connected platform that expands the value of our proposition beyond the vehicle and focuses on improving the operational processes within the enterprise, such as integrated route planning and mobility tools,” he adds.

However, John Gorbutt, Regional Sales Leader, Greenroad highlights that alongside the new opportunities that these latest technologies present, new challenges are also emerging.

“The incredibly accelerated growth of the connected fleet vehicle presents challenges, as well as opportunities,” he begins.

 

“First, for all fleet operators, both dispatched and un-dispatched, the driver’s function will be drastically different sooner than anyone imagines.

The driver will be at the focus and responsible for their own productivity and safety while behind the wheel. Essentially, as new, non-telematics based solutions enter the market the driver is now more connected than ever.”

“They will not only use their mobile device as the centre of their work day, they will have access to their own driver behaviour data along with various contextual information to make them as productive and safe behind the wheel as possible. These new systems are now coming onto the market at a fraction of the cost of traditional telematics systems but still provide all the same and better functionality.”

Meanwhile Stephen Watson, Microlise Director of Product believes that there is now an onus on fleet management solution providers to harness the technologies and drive the solutions forward for the industry as a whole.

“Any significant change in an industry is always a threat to the existing suppliers in that market, however where there are threats there are of course opportunities!” He comments.

“Provided organisations acknowledge the changes that are starting to happen, the changing requirements of the operators and use the expertise gained within the industry to their advantage, there is no reason to fear the rise of connected vehicles.

More it is an opportunity to embrace the evolution and provide greater value in an exciting area that touches us all.”

So what enhancements can field service organisations expect to see in the not too distant future in terms of their fleet management tools?

Barata believes that fully connected fleets will bring “new levels of data quality and accuracy not seen today, as the connectivity revolution continues apace.”

“We’ve already seen with partnerships, such as ours with Ford, that increased connectivity helps drive new business outcomes, based on data delivered through a holistic, connected vehicle approach,” he asserts.

“Through the integration of more data points –  such as seat belt usage data for example – we can help improve the safety of fleets, and we’re already seeing an increase in the use of preventive maintenance on engines to reduce downtime, thanks to Diesel Particulate Filter (DPF) diagnostics data.”

However, when questioned on what fleet management will look like as fleets become fully connected across the next five years Watson thinks that we may be getting slightly ahead of ourselves “5 years seems ambitious!” He begins.

“I think we are still a way off fully connected fleet operations. There are a number of EU and UK government innovation schemes designed to support organisations in the enormous R&D costs that come with the technology, however there are still significant legal and regulatory hurdles to be overcome before fully connected vehicles becomes mainstream.”

Yet, Gorbutt insists that the telematics sector as a whole is well overdue when it comes to ultimately delivering the return on investment it has always promised.

“I don’t think it’s a surprise to anyone that the promise of track and trace telematics didn’t provide the long term value most fleet operators expected,” he asserts.

“When weighed against the cost of the system, the ROI is minimal at best. So over the year’s telematics providers have raced to provide more and more features to supplement the high cost of live tracking. This has resulted is millions of customers paying outrageous sums for a system grounded in technology from 2001 or earlier.

“With new systems coming on board every day that are based on cheaper, high quality networks and mobile devices, any fleet operator can get an entire fleet up and running on a mobile based system that includes everything from live tracking to driver behaviour at a fraction of the cost.”

However, whilst the promise of improved fleet management tools at a reduced cost is one that will appeal to all field service organisations, it is also worth considering how this will change the role of the fleet manager.

“With this new mobile technology, security will be key,” Gorbutt explains.

 

“Hence there will be an evolution in the role of the new fleet manager, who will become more of a chief mobile officer in charge of everything from mobile deployment of solutions or cyber/mobile security and will encompass the productivity and usage of everything included in the new smart mobility ecosystem.”

Indeed, as we begin to discuss fleet management solutions that are mobile centric the lines between field service systems and fleet management systems are becoming increasingly blurred. Is there still a need for field service organisations to invest in both sets of tools?

“I guess this depends on the definition of field service management software,” Watson comments.

“It’s fair to say that concepts of engineer location, performance, planning and resource management are all now widely available, however there are a number of functions of field service management that would not currently feature in a standard fleet management software solution.”

“From an investment perspective then maybe M&A activity will see customers able to purchase a suite of products from a single supplier and these products will be more broadly integrated. But with the high levels of API integration available from suppliers like ourselves, companies have the opportunity to get best of breed solutions and services from the organisations most able to support their current and ongoing needs.”

Gorbutt echoes this sentiment commenting that he doesn’t “think there will be a decisive divide between the two technologies.”

“There are a few companies that will continue to try and cater to both fleet based companies and field service companies but field service based organisations are so specialised and their needs are so diverse that I don’t think they can get everything they need from one provider.”

 

He is also in agreement with Watson’s thinking when it comes to the belief that continued integration will be a highly important part of the wider ecosystem of field service technologies as technologies continue to evolve.

“What will be most important is the ability for these different systems to “talk” to each other.” He comments.

“For instance, the fleet management system must be able to send live tracking data to the field service customer location and routing system and all must work seamlessly with the driver safety application that ensure the driver is arriving safely. Connectivity is the new world and any service provider that doesn’t have all their systems sending and receiving data from one another will be obsolete in a matter of 5 years.”

However, Barata holds a different view, believing that as these lines blur it is those organisations that utilise a platform-based approach that will see the greatest benefits.

“The need for enterprises to adopt these solutions will continue to increase rapidly in the coming years, and soon they will become ubiquitous, leaving those who choose not to adopt them behind,” he explains.

“The good news for them is there are already suppliers like ourselves out there who can provide a platform which meets the needs of both their fleet and service operations. The previous challenges they faced in integrating data produced by separate technical, operational and strategic systems – often provided by different suppliers - can be avoided by partnering with suppliers that can deliver a single solution.”

The exact role of fleet management for field service organisations in the near future maybe uncertain, but we can be certain that is set to change.

 

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Michael Blumebrg, President, Blumberg Advisory Group explains why the on-demand economy has become a very attractive value proposition for both FSOs and their customers...

I recently marked a significant milestone in my career. This year marks 32 years since I began work as a management consultant in the Field Service Industry.

I was a newly minted MBA when I started and wondered how I could possibly help clients solve their field service challenges. One of my mentors at the time told me that the key to my success was to just keep at it.

Eventually, I’d have enough experience to solve any challenge presented to me; even those that people were dealing with for the first time. Not just because I’ve seen these issues before but because I would be able to anticipate them.

Looking back, I find these words of wisdom to have been spot on. The Field Service Industry has changed so much since I began working in it.

Much of what we anticipated would happen has happened.

Oldsmobile, a now defunct car manufacturer, had a popular commercial jingle on television in the United States when I began my career…” this is not your father’s Oldsmobile… this is the new generation of Olds”. I feel the same way about Field Service. We have entered a new generation of field service.

 

The field service industry has changed so much such much since I started working in it. Interestingly, much of what the experts at that time predicted would happen with respect to field service has happened.

Back in the good old days, I used to sit around the lunch table with my colleagues and discuss how technology would change the service delivery model and how service would become a utility just like electricity, water, or gas.

It would always be available when you needed it, you would consume it frequently, and pay for what you use. In other words, we were describing the basic elements of the on-demand economy. We just didn’t know it at the time.

What exactly is the On-Demand Economy?

Tech Insider Magazine defines it as the economic activity created by technology companies that fulfil consumer demand via the immediate provisioning f goods and services. Uber, eBay, Lyft, and Airbnb are classic examples of the On-demand economy in practice.

Field Service is also rapidly becoming an On-Demand economy business. Over the last twenty years there have been several industry trends and developments that have made this possible.

Here are a few examples of how Field Service Organisations (FSOs) are leveraging technology to become On-Demand economy businesses:

• Dynamic Scheduling provides real-time information on technician availability which permits FSOs to immediately commit to their customers when a Field Engineer (FE) will arrive on site.
• GPS Technology provides real-time visibility of FE location which enables immediate updates as to when the FE will arrive on site
• Freelancer Management Systems provide FSOs with the ability to source, train, and dispatch freelance technicians. As result, FSOs can scale their workforce on-demand.
• Advanced Technology such as IoT, Augmented Reality, and Artificial Intelligence provides the technical platform for delivering on-demand diagnostics to FEs and end-customers reducing resolution time and improving first time fix.
• 3D Printing Technology enables FSOs to produce parts on-demand. Thus, they can reduce their investment in spare parts inventory, improve fill rate, and lower their logistics and transportation costs.
• Servitization Business Models where manufacturers charge for usage of their product on a subscription basis, such as Rolls Royce’s “power by the all”; the ultimate example of an on-demand economy business. Customers pay for what they consume, when they consume it.
• On-demand consulting platforms like Si2Partners provide a collaborative platform for Field Service Leaders to access subject matter experts to validate thinking, solve problems, challenge assumptions, and formulate new approaches as needed.
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The On-Demand Economy is no longer a concept of the future as far as the Field Service Industry is concerned. It represents a very attractive value proposition for both FSOs and their customers.

There are numerous case studies and data points available that demonstrate how the advancements identified above have helped FSOs improve the efficiency, agility, and economics of service. It will only be a matter of time before Manufacturers and FSOs develop and market on-demand value propositions to business customers in the same way that Uber or Airbnb have done with consumers.

Given current trends, FSOs will need to give serious consideration as to whether they should develop on-demand, “uber-like” service offerings for their customers. It is likely that customers will expect these offerings just as they have come to expect other types of services that have become standard within our industry.

 

There will obviously be leaders, followers, and those left behind when it comes to On-Demand. The question is where will you company reside on this spectrum. Will your company be first to market or will you wait to see what happens? The choice isn’t easy.

Ultimately the answer comes down to whether your company and your customers are ready for On-Demand.

If my experience offers any wisdom, then it’s that entry into any new service or market requires a good bit of market research, analysis, planning, and execution.

On-demand consulting platforms like Si2 Partners can certainly be a critical resource to field service leaders as they formulate their own on-demand service strategies.

 

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