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Field Service News has recently undertaken an exclusive research project, sponsored by TomTom Telematics to explore the standards of field service companies.

In the first part of this feature which is available here we looked at the types of technology that are being deployed amongst field service companies today and explored whether the gap is widening between the have's and the have not's in the industry.

In the second part of this series, which is available here we looked at how companies are communicating with their employees in the field and why this is such a key component of getting it right when it comes to delivering service excellence.

Now having established a baseline for the types of technology being used within the industry lets take some time to explore the standards being set by Field Service organisations before we try to identify if there is a clear and tangible link between those using technology and the levels of standards being delivered...

There is also an accompanying report to this series which you can access by clicking this link…

So what about the field service standards?

Earlier on in this series we touched on the most common complaints our respondents received from their customers, citing that of those companies using paper based dispatch notes the most common complaint by a long way (40%) was the availability of time slots.

In an interview with Field Service News, Giles Margerison, Director of TomTom telematics highlighted the need for more flexible time slots commenting

“We as consumers have adjusted our requirements to the service industry, it used to be that we would expect to have a service delivery within a day, now really we expect a one or two hour appointment window. That represents a huge challenge for the industry”

 

The findings of our research would also appear to back this up also as time slots was the joint second largest complaint for companies with 23% of the full respondent group citing this as the most common complaint. Interestingly this figure comes down to just 11% when we look at the largest companies.

This would indicate that the largest companies have the resources in places to accommodate more efficient systems, which allow for tighter time slots

Getting the basics wrong?

However, the most commonly cited reason for customer complaints was actually communication which was the most common complaint for 28% of companies. Given that there are a proliferation of means for companies to communicate with their customers this really is an area that should and could be significantly improved yet seems to be being neglected. In a piece of research undertaken by Field Service News earlier this year we looked at the types of communication field service companies were using. This research revealed that whilst the 82% offered a call centre, and 62% offered email communication less than a third of companies (32%) offered online service and just 6% offered access via an app.

This is completely at odds with where the industry needs to be. As Margerison alludes to – our expectations as consumers have changed. We live in an age where we are used to having instant access to information we need on demand. Whilst call centres and email certainly have their place, they are both slow processes when compared to web-based self-service options or online chat portals.

 

When we consider that we all work in service industries, whether it be manufacturing or medical devices, whether we visit opticians or oilrigs our core goal should always be delivering good service, and doing it efficiently.  Quite simply poor communication between ourselves and our customers should not be tolerated and this should be a key area of concern for many. The good news is of course those companies that look to investigate this within their own organisations and remedy issues around communications will very quickly be able to take a step ahead of their competitors.

In line with poor communication is poor response times, which was joint second most common complaint cited by 23% of companies. Again this is an issue that sits well with the notion that we as consumers are becoming less patient with service providers.

Cost is less of a concern than bad service

What is of particular interest is that the least common complaint is the time charged and invoiced which was a major issue for just 13% of companies. This would seem to suggest that most customers are happy to pay a fair price in exchange for good service, but the expected standard for service is coming under increasing pressure as customers rightly demand the same type of service that they get from the field service they deal with as they do from other organisations they deal with in their daily lives like Amazon for example.

As we start to look further down into the research we can see even further evidence of simple mistakes being made on an alarmingly regular basis.

For example almost half (42%) of all companies stated that they have mobile workers turn up at the wrong address whilst 5% stated this happens on a weekly occurrence. In a world where Sat Nav’s and routing software are widely used this is almost beyond comprehension.

 

Perhaps even more incredibly is that when we asked our respondents if they had ever experienced two mobile workers turning up at the same job again almost half of companies (43%) stated this had happened.

This is also apparent amongst companies of all sizes, even amongst those at enterprise level almost a third (28%) admitted to two workers turning up at the same time and a similar amount (33%) suffered mobile workers turning up at the wrong address on a monthly basis.

However, if we look at those using technology to improve their service standards we fortunately see improvements so all is not lost! The amount of companies that have a monthly address issue falls to just 13% with thankfully no weekly mishaps! Also the total of companies that never have this issue rises to 46%, which is 18% higher than the general average.

So it is clear that there is a distinct advantage for those using the technology available to them.

If you want to know more about this research then you can access the full report by clicking this link.

In the final part of this exclusive series we will take a look at the KPIs we are setting, how these match up with the service we are delivering in reality and explore one possible scenario for improving our standards within the future...

This series is sponsored by: 

In the penultimate part of his series Service Management specialist Nick Frank takes a look for that secret magic formula that creates winning companies in field service.... 

It sounds too obvious, but companies who ‘plan’ for success, are more likely to get results from their service transformation programmes. So found Dr Wolfgang Ulaga, Professor at the IMD Business School when researching how companies transform their service business profitably.  He identified that companies who release their service potential have done so not only because they were well positioned to deliver value, but because they had an explicit and supported plan. (an interesting guy and would well recommend reading his Harvard Business Review Article on service transformation)

But why do we need a professor to tell us this!  Most well run companies have a planning cycle that lays out the financial numbers and the high level strategies to achieve their objectives. It always surprises me how many leaders of transformation believe that this is enough. It’s not!

Yes, experience says that the plan has to be clear and ‘light’ enough to inspire the team and colleagues. Yet it has to be backed by the detailed analysis which gives it credibility not only to business leaders, but also your agents of change themselves. This means the plan has to be explicit. It has to describe the detail of how strategies are achieved and most importantly it must be written down!

So managers wanting successfully drive transformation programmes should prioritise their resources, whether that be their own time or a programme manager into developing the plan. The more the stakeholders are involved, the more credible and supported it will be. The more senior management support managers have, the more likely that the resources required will be committed. But what are we talking about:

 

• Put in place strong project management resources with a governance structure and steering team that has the muscle to move many of the obstacles you might face
• Clearly define the objectives for the projects that will get you to your goal.  Each should have a kind of charter that defines the project in detail and most importantly who is responsible for what. The charter should show the expected outcomes and the impact on the business
•  Clearly define the objectives for the projects that will get you to your goal.  Each should have a kind of charter that defines the project in detail and most importantly who is responsible for what. The charter should show the expected outcomes and the impact on the business
• Plan out the investments you require and the potential timing. More and more we see companies looking to rationalise their business systems and will cost time as well as money. This is especially true in the implementation phase. So the motto is ‘Be Prepared’.
• Ensure your plan clearly identifies early wins to demonstrate success to your management and help them keep faith with the vision
• Make sure that your communication strategy is built into your plan. Often great ideas fail because the troops are not sure what is expected of them.

The last remaining piece of the puzzle is that your plan needs to be back by the decision makers of your business. It’s not just a question of a polite yes in the annual business plan review. It needs real commitment such as being part of your governance structure or taking a very active and vocal interest. If you don’t see this, be very aware!

The list could go on and on, but these are the main factors. If you are faced with planning change then at Noventum you can see what a Transformation Road map looks like, or experience developing your own by attending a Service Leadership Course .

 

Field Service News has recently undertaken an exclusive research project, sponsored by TomTom Telematics to explore the standards of field service companies.

In the first part of this feature which is available here we looked at the types of technology that are being deployed amongst field service companies today and explored whether the gap is widening between the have's and the have not's in the industry. Here in the second part of this series we look at how companies are communicating with their employees in the field and why this is such a key component of getting it right when it comes to delivering service excellence...

There is also an accompanying report to this series which you can access by clicking this link…

 

Talking to the field:

In the first part of this series we looked at three options that are important for gathering information from the field and reacting to it. The flipside of a modern field service management solution is how we communicate information back into the field. This is perhaps the most important element of an overall solution to get correct as if done well it can not only improve your companies efficiency, increase your service standards but also make your field workers lives easier. We asked our respondents “How do you inform your drivers of jobs and work schedules?” Giving the options of “Phone”, “Text”, “Paper dispatch note” “Via in Cab navigation” and “via App”.

Paper dispatch

As a starting point lets look at paper dispatch notes. Of the options given this is probably the most arduous means of delivering a work schedule for many reasons. Firstly it is dependent on your field workers arriving at a central depot or office to collect their orders for the day. A waste of time and fuel for everyone involved, and from the field workers point of view an additional hassle at the beginning of the day when they could be starting their first job. Secondly, paper based work schedules are out of date from the moment they are printed. Such a system has no option for the quick reactive response that you desire when an emergency call comes in that must become your clear priority. Fortunately only 6% of companies are still operating in this manner.

The majority (68%) of these companies still using paper based dispatch are as one would imagine in the smallest bracket of companies, although examples of companies still using such a system are to be found right up to the 151 – 300 field engineers bracket. Given that their work schedule is largely static, and it is therefore hard for these companies to react to either emergency call outs or delays either on job or non transit, it is of very little surprise that we see that the most common complaint these companies receive from their customers is missing time slots which 40% of companies cite.

Text:

The most common way of companies to notify their workers of their job schedules is by Text. This is sensible as SMS is a relatively cheap, instant means of communicating and 41% of companies use this method. It could well be that this method will ultimately be replaced by “Via App” so communication becomes part of the wider ecosystem of the companies mobile workforce management program. This is of course ideal as it allows for both additional layers of information to be included, for example the details of the last call out, even photos etc., as well as easy navigation through to other systems. Currently however only 17% of companies are using this option.

It’s good to talk…

However, there are a huge amount of companies (34%) that are still using the phone to communicate work schedules. This does have it’s positives in that it can be flexible and you can update the work schedule on the fly according to how the day is progressing however, there are a number of distinct drawbacks. Firstly there is the issue of wasting resource. Talking on the phone takes time.

Not necessarily a lot of time, but still far longer than sending messages automatically from a field service management solution. And if you add up the amount of time that takes across your whole workforce, even if it is just 10 field workers that is a lot of time being used that needn’t be. Then there is also the issue of driver safety. Yes there are a number of solutions available to allow for hands free communication, however studies from road safety charity BRAKE! Show that even hands free calls can be dangerous claiming an incredible 98% of motorists were unable to divide their time without it affecting their driving ability.

In cab nav

It is interesting to see how few companies are using in cab navigation systems to communicate with their field workers. Only 2% of those surveyed are actually using this method. One reason for this may well be the proliferation of smart phones and or tablets now being used as primary mobile devices for field workers. Indeed there is an evolving movement towards being able to use one device per vehicle such as TomTom Telematics own PRO series of ruggedised tablets, which through the use of open API architecture can provide full access to w whole range of field service and fleet management tools.

As devices like this become more prevalent then having both a standalone in cab navigation devices and another device to run your field service software on simply becomes unnecessary.

If you want to know more about this research then you can access the full report by clicking this link.

In the part three of this exclusive series we will start to explore how the technology being deployed amongst field service organisations is impacting the levels of service they are capable of delivering...

This series is sponsored by: 

 

 

Pete Sharpe, Managing Consultant, Leadent Solutions looks at how the role of IT Management is beginning to evolve into something far more sophisticated than turning it off and on again... 

I recently read that 60% of IT projects fail to deliver on time and on budget. It’s not hard to see why - in the last decade new technologies have changed the way a business works considerably. Information technology has reached every last corner of industry moving at break-neck speed.

IT projects are no longer confined to implementing one system in one area of the business and with larger IT projects becoming far more complex with tightly integrated solutions, IT Project Managers need to move beyond the comfort of the IT department to interact with others such as Operations, Finance and Shared Services, which means that they will have to lead the organisational change required to meet their project goals.

 

IT Project Managers used to be safe in the knowledge that they were called upon for their technical skills alone, it wasn’t imperative that they think strategically or have to communicate complex plans to anyone outside of their immediate project team and sponsor.

Today however, IT Project Managers are not only required to deliver complex projects on time and on budget, they are also expected to address the impact on the business, align technology strategy to the business objectives and consider the approach to change required to ensure the project is a success. In short, to succeed IT Project Managers must think like business professionals not just technical ones.

A new set of skills

In order for IT Project Managers to succeed in their new roles it is essential that they build their Communication, Leadership and Business Change skills.

In every project there is a demand from the relevant business areas for subject matter experts to advise and facilitate the business impact and change management. Whilst this is critical to all project deliveries, the impact on the day-to-day business operation is often underestimated and not planned as well as it could be.

By enabling and empowering IT Project Managers to manage and influence relationships across the business, whilst simultaneously championing the new technology they are implementing, businesses can avoid the sudden pull on key resources.

 

These core skills will allow Project Managers to look at the broader context of the project across the organisation and understand the impact that this will have on people and culture, and importantly allow them to create joint IT and business plans to pre-empt the resource requirement.

IT Project Managers need to be equipped to deal with the human side of IT projects, ensuring that change is embraced, adopted and utilised and in turn this will allow them to be more aware of the impact upon people, process and technology across the organisation.

Business Transformation is no longer an event, it is a method for continuous improvement. By embracing the change in concept and through robust succession planning the IT Project Managers of tomorrow can help businesses to avoid the associated cost spike of a business-wide transformation programme, provide accurate capital investment plans that align to the business strategy and manage the change as though it were business as usual.

A unified approach

The most effective projects will take a unified approach, implementing change on both technical and people fronts. By enabling IT Project Managers to look at both the technical and human side of projects, the efforts become focussed toward a singular objective. The flow of information is integrated so that at the front-end employees are receiving timely information and appropriate messages whilst at the back-end, the project team is receiving effective feedback on usage and adoption.

This allows a fluid and dynamic approach, a blend of the traditional ‘Agile’ and ‘Waterfall’ without the rigidity and restrictions but inclusive of the appropriate methodology required to ensure that the right steps can be taken at the right time in the project lifecycle, engaging employees and allowing them to embrace the changes being made.

IT Project Managers need to be held accountable for the success of the project as a whole – not just hitting the go-live date. After all, the success of an IT project should be measureable through results and outcomes – not just time and budget, but by tangible, realised business benefits, a reduction in ‘run-the-business’ costs and how the solution has been embraced, adopted and utilised by the organisation.

 

IT Project Management and Business Change are complementary disciplines with a common objective. If IT Project Managers of the future are enabled to deliver a unified approach then far more IT projects will be successful.

As part of an exclusive series on twenty first century service management sponsored by Advanced Field Service, Field Service News Editor Kris Oldland takes a look at how to decide when it becomes unprofitable to take on a deal…

There is also an exceptional eBook that accompanies this series which you can access by clicking here

It is the perennial internal struggle that so many field service companies face. In the race to grow your service business are you at risk at accepting business that ultimately will impact your bottom line in a negative fashion?

We have all been faced with that one bit of business that could have potentially have a wider tangible benefit for our business (such as raising our profile in front of a new sector) yet the profit margin is so tight that it makes taking that business a worthless exercise when reviewed in the cold black and white figures of a profit and loss sheet. Taking a different approach to the same challenge, can the sheer effort to maintain business viability – and keep your engineers working out in the field – become an easy temptation despite the fact that it may ultimately lead to the overall failure of a business?

All too often we witness some field service businesses being tempted to take on clients with narrow profit margins, which is a very dangerous path to tread to say the least.

To build a truly sustainable business, you need to be able to focus on the jobs, contracts and clients that are most profitable, rather than trying to be all things to all clients.

So for those responsible for enduring their field service operation remains profitable it’s absolutely critical to take the time to occasionally step back and analyse your client base. Understand each of your clients (and prospective clients) and try to identify those that fit within the two following categories…

Clients who are already profitable:

• How can you quantify for them the work that you do, so that it is recognised and suitably remunerated?
• How can you keep these clients ‘locked in’ by delivering service beyond the agreed service level agreement (SLA) but without draining your resources and revenues?

Clients who could become more profitable:

• How could you better manage the time you spend on their projects?
• Can you identify where you are providing more than you agreed within the contract and budget?
• Do you have an evidence base that will support you in negotiating with clients to pay more or expect less?

Clients who are unlikely to ever become sustainably profitable:

• How could you readdress the balance and bring these clients back within acceptable parameters?
• If the evidence shows these clients are always going to be an excessive drain on resources, do you need to make the difficult decision to agree to go your separate ways in order to free up your engineers’ valuable time for more profitable jobs?

If you can gain a better understanding of each and every client’s worth to the business, you’ll be well placed to decide where to invest your resources for optimum return, both in retaining clients and also in pursuing new business. There may be that one occasional client that it could be argued will bring greater business value to your organisation even if they fall in to the latter camp. However, even these clients must be fully understood.

The potential benefits of working with such a client can and must be translated into a quantifiable figure, and that figure should be reviewed over time to see if the initial predictions are being validated. For example if you take on one client who is a leader within their field, the theory of Social Proof should lead to some others within that field joining you also. How much is that additional business worth? More importantly does it counter balance the loss leader? If the answer is no then quite bluntly you should be walking away from it all.

Making tough decisions

Admittedly, turning work away is never easy to do, but it can also free up your expensive resources to focus on where they can bring best return. This is where it becomes absolutely essential to have transparency between divisions and to train your sales force, who are almost certainly focussed solely on revenue, to begin focussing on profit instead. It is madness to incentivise an individual on revenue from a product sale if ultimately your organisation is going to lose on service revenue in the long term.

Unfortunately the sales of product and service remain isolated in so many organisations, and even today I here anecdotally of huge service contracts being bundled in for free as ‘added value’. This is a slow train to disaster and companies still employing such a quick buck style of sales are destined for failure. Such an approach should be consigned to the 80’s where quick turn over was king.

Successful businesses in the new millennium understand the long term value proposition of service, indeed the bleeding edge companies moving towards a servitization model are showing us a path that truly benefits both client and vendor. Service is the long stay foundation on which profitable businesses are now being built upon. And whilst moving to such a model requires a radical rethink of core business strategies, modern technology plays an incredibly important part in enabling this shift.

At the most basic level your service management solution needs to give you the advantage of arming you with the evidence and information you need.

As mentioned previously, there may be good reasons to bid for contracts which you know from the start will generate very little profit: a project may have particular prestige attached to it or it may extend your portfolio by taking your practice into a new market/territory.

However, before bidding for such work, you’ll want to quantify the risks and have measures in place to contain any losses so that they don’t overwhelm your business and become a bottomless pit. If you can draw on a solid foundation of knowledge of costs and time for previous similar contracts, you will have a better understanding of the commitment you are making and the potential risks.

With contracts of this nature, it is more important than ever to keep to the requirements set out in the SLA. Set clear expectations at the start, apply strong change control, and have a process to handle requests from the client for additional work.

This feature is part of a series exploring Service Management in the twenty first century and is accompanied by the excellent eBook The Service Management Handbook 2014 which is published by Advanced Field Service.

To Download your copy of this incredible resource click here and complete the brief form.

This feature is sponsored by:

Want to know more about Advanced Field Service? Check out their page in the Field Service News Directory by clicking this link.

 

 

Welcome to the latest edition of the Field Service News podcast. This time we are pleased to bring you an exclusive guest podcast created by Paul Adams of specialist service management software providers Solarvista.

Paul takes a look at how the Cloud, Mobile and Enterprise Systems can be brought together in a modern Service Management system and takes time to look at various aspects of each of these elements whilst avoiding jargon and taking some complex discussions and explaining them in simple easy to understand ways. An excellent overview for the those working in service management that are trying to get their head around some of the core technologies that are driving service management forward into the twenty first century.
To download the full podcast just click here and complete the brief registration form!
PLease note that this is a joint promotion between Field Service News and Solarvista Ltd. By downloading the podcast you agree to our terms and conditions laid out in the privacy policy here

Want to know more about Solarvista? Check out their page in the Field Service News Directory here

Field Service News has recently undertaken an exclusive research project, sponsored by TomTom Telematics to explore the standards of field service companies.

Are they improving or are they falling? Is it that standards as a whole are now under greater scrutiny than ever before as we all become more and more expectant on getting results as soon as we expect them now that we inhabit an age of instant information thanks to the Internet?

Across the next four weeks we will be publishing a series of features that looks at the findings of this research…  what about those companies that are pulling ahead of the competition and not only delivering to their customers’ expectations but exceeding them and delighting them? What tools are they using to do so? What about those falling behind the pack – what are they getting so wrong?

There is also an accompanying report to this series which you can access by clicking this link…

 

About the research:

The research was conducted over a 2-month period in which we contacted members of the field service news online subscription as well as using the reach of Field Service News throughout the social media channels. We had a wide number of respondents from companies of differing size from those with less than 10 mobile workers through to those with over 2,500. Our respondents also came from a diverse collection of industries including Manufacturing, Retail, Healthcare, Transport and Local Government amongst many others.

The types of technology being used:

To establish whether field service standards are falling, improving or just staying static, an important starting point is to explore how significantly some of the technology, which is designed to make life easier for field engineers, is actually being applied. Would we see a dramatic difference in standards between those who are using the latest field service technologies and those that are not? To give us some understanding of the type of technologies that were used we asked our respondents to let us know if they were using  ‘real-time telematics when creating work schedules’, ‘dynamic scheduling and planning’, ‘intelligent scheduling around emergency call outs’. On top of this we also asked how they inform drivers of their jobs and work schedules and whether they offered job-tracking functionality to their customers. So first up lets take a look at who’s using what in field service industries…

Real-time telematics data:

In fact it was a completely even 50:50 split of companies who are and are not using telematics data. We do see bigger trends shift [quote float="left"]Of those companies with 500 or more field engineers 84% of companies using telematics data.

When we look just at those companies in the extremes of both brackets however we certainly see a trend emerging.  Of those companies with 500 or more field engineers 84% of companies using telematics data. This is in stark contrast to those companies that had 50 field workers or less. Here the number of companies using telematics data in real time is just 17%.  

 

Dynamic Scheduling:

At first glance it seems a similar situation with dynamic scheduling also. Of the group as a whole 56% of companies were using some dynamic scheduling. Again looking at the outliers, amongst those companies with 50 engineers or less this figure dips dramatically to just under a quarter of companies (24%). Similarly again as we focus on the larger companies this figure once more leaps to an incredible 89%. Again it seems that those companies with larger workforces are taking more advantage of the tools that are available.

Intelligent Scheduling around emergency call outs:

Given the trends above it would be a safe bet to assume that we would see similar trends in this area also with the largest organisations  predominantly using such tools whilst the smaller companies are either able to cope without out or as yet to see the benefits of the approach. Again starting with the group as a whole we see a very marginal majority of companies using intelligent scheduling around emergency call outs with 54% of companies surveyed using them. Amongst the smallest organisations this comes down to just 17% of companies actually using intelligent scheduling. However, unlike the previous two options (dynamic scheduling and use of real-time data) we see slightly less of a significant leap in those using it. In fact 63% of companies with a large mobile workforce are using intelligent scheduling. Still a considerable majority but not as exaggerated as in the previous two examples.

 

The haves and the have nots:

Before we move forward lets take a moment to stop and consider the reasons for the wide gap between the large and small in terms of the technology they are using. One possible argument that could support the statistics are that perhaps smaller companies may not need such sophisticated methods to maintain the standards they deliver. This is of course will be proven one way or the other later in this report as we look at the varying levels of standards that are apparent amongst companies of all sizes.

This certainly could hold true when we look at both dynamic and intelligent scheduling. As we have looked at before in a number of features there are many levels of scheduling systems available with dynamic and intelligent systems being both the most complicated and the most costly. However, for a small organisation sometimes these types of systems can be impractical as the effort in establishing the correct rules and data logic in place to get the desired results can sometimes be counter productive for a small organisation where a simpler ‘assisted scheduling’ solution would be more suited to their needs.

This logic in some part could also explain the reason why fewer larger companies are using intelligent scheduling, as it is perhaps the most sophisticated form of scheduling engine available currently, so perhaps even prohibitive for larger organisations who are able to operate with just a dynamic system in place?

However, where this theory does fall down is in the discrepancy when we look at the use of real time data.

 

Whilst there are certainly existing arguments about which types of scheduling systems suit companies of varying sizes there can be no doubt that the ability to track driver and field engineer data in real time can only be a positive for a company regardless of size, both in terms of their own internal efficiency as well as the level of service they can deliver? Again as we continue this series we will uncover the truth to this supposition, as with the number of companies offering telematics solutions, the availability of such solutions is high while the costs are reasonably low.

If the evidence supports the theory that such tools will help improve service delivery then it will be hard to see an argument for smaller companies not taking this step at the least.

If you want to know more about this research then you can access the full report by clicking this link.

In the part two of this exclusive series we will look at how field service companies are communicating from the office to the field, what the best in class companies are using and what impact this can have on productivity…

This series is sponsored by: 

The importance of wearables is on the rise but this brings with it new security and privacy risks writes DA Systems David Upton...

A report recently issued by PWC suggested that wearables adoption will mirror the phenomenal rise of tablets in the enterprise. Apparently a fifth of American adults already own a wearable tech device and additional sales could top 130 million units in 2018*. Enterprise vendors are watching these predictions carefully and starting to anticipate their arrival into the workplace with dedicated platforms, such as Salesforce1.

Although many applications being developed are for medical workers and white-collar users, it is not difficult to see why wearables also offer great potential for the same-day delivery industries. They provide a significant opportunity for achieving service improvements through more seamless interaction with customers. Added to this, proof of delivery is more secure and evidence to refute claims of lost or damaged consignments can be captured automatically, potentially without the customer even realising it.  Customer service benefits aside, wearables also support hands-free working, which means productivity and efficiency levels can be further improved on existing rates achieved from using ‘traditional’ mobile devices.

But while the benefits of enterprise wearables are well documented, privacy and security remain the chief apprehensions among consumers. In PWC’s survey, 82 percent of respondents said they feared "wearable technology would invade their privacy" and 86 percent said they thought wearables would make them more vulnerable to security breaches. Privacy and security are serious threats that IT departments need to control carefully if wearables are to make the impact analysts are predicting in the enterprise space.

Below are five key threats to be aware of when considering how wearables might impact a sameday delivery business:

Security:

Top of the list of risks is security, which is as much an issue for the service provider as it is for the end customer. This is because devices like Google Glass are able to record and transmit images of anything in the wearer’s field of vision. Implementing and enforcing a robust security and privacy policy will be essential for an organisation to protect itself adequately from threats and avoid the prospect of litigation. This should be relatively straightforward to implement for most forward thinking organisations and an extension of their existing social media and BYOD policies.

Data theft:

A big part of the attractiveness of wearable devices comes from the ability to process and exchange data in real-time. Herein lies the security risk, because if they are stolen or intercepted, personal data could be compromised. The US National Security Agency highlighted this potential problem at a recent conference. Using enterprise-grade encryption to both protect data from eavesdropping and verify the identity of any connected device would be good first steps to prevent wireless attacks. Features like an automatic wipe will also help and reduce the attractiveness of stolen devices.

One of the other issues with wearables is that it is relatively straightforward for someone to ‘password surf’, seeing a PIN or password on screen and then use the information to hack into the device once it is stolen. It’s not a new problem but one that needs to be overcome if companies want to protect their workers’ digital identities and not risk security breaches due to stolen customer information. Biometric passwords could provide the answer to protecting a user’s identity, by ensuring a device is rendered useless if stolen.

Wearable device management:

Mobile device management is already an essential part of managing the technology used by a mobile workforce and the same will be true of wearables. These will add an additional layer of complexity to what is already a very complicated aspect of IT security management. Already many MDM software vendors are re-naming their applications Enterprise Mobility Management to signify their ability to cope with the greater complexity. Clear policies need to be established and enforced to define expectations around what employees can and can't do using wearable devices, balancing the need for flexibility with confidentiality and privacy requirements.

The viability of BYOD

Including wearables into a BYOD policy adds a whole new dimension to the level of device management required

extending a BYOD policy to include these devices is actually commercially viable.  From experience, managing the complexity created by having a multitude of different devices in use within an organisation will be a serious future challenge and one the IT department needs to prepare for to manage the potential resourcing implications and inevitable disruption created. Including wearables into a BYOD policy adds a whole new dimension to the level of device management required and presents a huge step change away from having a standard, company issue wearable in circulation and involves developing an understanding of, for example, support requirements for each device, plus an awareness of the individual operating platforms.

 

Employee privacy

Since wearables are able to continuously monitor employee behaviours and track their activity levels and whereabouts at all times, this creates an obvious employee privacy issue. Clearly, there are pros and cons to this issue. On the one hand, being able to monitor productivity levels is useful for KPI management and not too far removed from what companies are already using - for example; tracking on mobiles to monitor delivery drop speeds of individual drivers. Employees are accustomed to this practice and the data is only ever used internally.

More contentious is the ability to collect data, which other organisations can use. For instance, health insurance providers trying to understand how healthy an employee’s behaviour is when setting the cost of monthly premiums. In the case of the sameday delivery market, monitoring at this level could be regarded as an invasion of privacy as it’s not relevant in the context of the industry.

The best way forward:

Given current adoption rates, wearables will inevitably make a big impact on the way delivery companies work. Experts are already giving their arrival a new moniker and coining the issue ‘BYOD 2.0’. Even more so than with the original BYOD, it will be essential to have clear usage policies in place and an excellent understanding of responsibilities and expectations at both the employee and customer level.

Provided this is in place and appropriate restrictions relating to security, privacy and the types of devices that can be supported are implemented, there is no reason why delivery service providers cannot benefit from the improved productivity and efficiency that wearables can bring into a business. Our advice is to proceed with caution.

President and CEO of the Blumberg Group, Michael Blumberg, takes a detailed look at the tablet repair market... 

Adoption of tablet computers among consumer and enterprise customers is growing at an incredible rate across the globe. Though the concept of tablet computing was introduced unsuccessfully in the early 2000s with the Microsoft Tablet Computer, the launch of the original iPad in 2010 ushered in the boom era in which we’re currently living. Computer industry giants and young upstarts alike design and sell tablets in an ever-increasing variety of shapes and sizes, with features ranging from basic touchscreen functionality to complex integrated networks of sensors and input/output options, and at a wide variety of prices.

As the rate of tablet adoption and usage climbs, so too does the need for testing, screening and repair of these devices. Current implementations of in- and out warranty service models suffer from myriad reverse logistics inefficiencies that result in increased costs associated with processing returns and getting back into the market. The issues involved range from front-line customer support challenges, to costly testing, screening processes to the geographic distribution of quality repair facilities.

In a new market research study of OEMs, Retailers and Wireless Carriers in the tablet repair market; respondents highlighted key factors in selecting a tablet repair vendor. In this feature we discuss how the booming tablet market makes choosing a 3rd Party Reverse Logistics vendor critical to increasing associated forward and reverse logistics velocities and cost efficiencies, which ultimately affect the bottom line.

We emphasise the market and benefit of “optimised” screening and cleaning for retailers and wireless carriers (with generous customer returns policies), as well as the manner by which functional testing can augment the speed and quality of the return, repair, and/or replacement, of tablets. Additionally, we describe the characteristics of the ideal tablet 3rd Party Service Provider (3PSP) and the business benefits with this approach. Finally, we take a look at the multi-tablet testing system, global facilities and IT infrastructure of one particular vendor, CTDI, illustrates some of these concepts. New Developments in Tablet Computer Repair

The tablet computer market

The Tablet Computer market is young, already large, and very much still growing. Even in North America, which leads the world in early adoption of tablets, the market is far from saturated. Tablet computer shipments in North America will have nearly doubled between 2012 and 2014, to almost 120 million units shipped this year. North American Tablet Installed Base is on a similar trajectory, doubling from 104 million in ’12 to a projected 220 million this year. Continued rapid growth is projected over the next several years, as well, with the installed base projected to double again to more than 320 million units in 2017.

We can trace this exponential growth to a number of trends in the consumer and enterprise spaces, including the continued evolution of both technology and usage habits away from desktop machines and towards mobile devices. As tablets become cheaper, better and faster, users are replacing ageing PCs with sleek new slates. This trend is now commonly referred to as the dawning of the “Post-PC era.” New Developments in Tablet Computer Repair

As this so-called Post-PC era evolves, manufacturers are experimenting with varied tablet computer sizes, feature sets and price points. Major software vendors focus more on developing tablet-specific platforms and applications, as well resulting in the development and deployment of Tablet Computers in vertical market applications like Point of Sale, Supply Chain, and Healthcare. With more hardware and software applications to fit more and more use cases, tablet adoption has moved from leading edge early adopters to mainstream consumers. And the early adopters are upgrading to newer models. Refresh cycles for both hardware and software are being established and, as such, the distribution between new vs replacement tablet shipments is a key data point to understanding the overall market. New Developments in Tablet Computer Repair

Current support models

Organisations involved in the tablet support market are first and foremost affected by the high return rate currently associated with retail sales. Generous return policies often allow buyers 15-30 days to return a tablet even after opening the box and using the device. As such, buyers’ remorse has become a significant cause of return. Often times tablets returned due to buyers’ remorse exhibit little or no defects - however small - but become liabilities due to insufficient reverse logistics supply chains. This is because these units still need to be processed so that the seller (i.e., retailer, carrier, OEM) recovers maximum value.

Another problem with the current tablet support market is a lack of front-end screening and diagnostics to resolve end-users technical issues and challenges with the devices. Sufficient telephone-based or remote screening of tablet problems would greatly reduce the number of units returned through the reverse logistics supply chain, often as easily as walking the end-user through some simple knowledge-acquisition to “fix” their device problems. Similarly, not enough troubleshooting occurs post-return, before the units are shipped back to the manufacturers or their authorised repair providers. Roughly, consumers return 5% to 10% of all new tablets sold in North America, with retailers usually sending those units directly back to the manufacturers without screening or diagnosing the units themselves.

Of these returns, some 30 to 40% are classified No Fault Found (NFF), and another 40% are Cosmetic Repair. The remaining 20% or so suffer from cracked screen and broken board issues that require more costly repairs. However, the repair yield on defective units is typically in the range of 50% to 60%.

For some OEMs, this cost is too great, and results in selling the defective components for scrap value. In other words, more than three-quarters of returned tablets are either fully functional or in need of only minor, topical fixes before being repackaged and placed back in finished goods inventory. But almost all of these units are immediately sent back to a 3PSP where they are screened, tested, cleaned, refurbished, repackaged and then resold. Even when it comes to devices covered under warranty, consumers send their defective devices through the same reverse logistics supply chain in exchange for a new, replacement device. These activities, especially those related to testing & screening, have inherent challenges. For the most part, they are largely an inefficient, in terms of both cost and time as they are often extremely labor intensive and may not take advantage of advanced technology for automating the process.

Furthermore, the time spent transporting tablets to and from centralised return and facilities adds to the overall inefficiencies when processing returned units.

The optimal solutions is to move towards a regionalised reverse logistics model with several facilities located strategically throughout a region (e.g., North America, Europe, etc.) for screen, clean, and repair. This offers the shortest time between out-of-service tablets and those either returned and in use again; remarketed as is; utilised for maintenance replacement; sold as a refurbished unit or for reclamation, etc. Very few vendors operate multiple facilities across the world, let alone high volume regions like North America. As such, the screening and repair process suffers from reverse logistics inefficiencies based largely on too many devices having to travel too far for problems that could be solved locally.

New Developments in Tablet Computer Repair

Volume of tablet returns is expected to rise over the next several years. In turn, the volume of devices needing test, screen, and repair activities will also increase. For 2013, tablet returns in North America were estimated between 7.6-14.3 million units. By 2015 the volume of returns could rise as high as 20 million units. Those numbers will continue to increase in the near-term following 2015. New Developments in Tablet Computer Repair

Alternative solutions pros & cons

Clearly the tablet repair market operates inefficiently. As things stand now, everyone loses: retailers, manufacturers, service providers and consumers alike. A variety of alternative solutions to the current methodology offer benefits, but these are not without their downsides as well.

Improved front-end diagnostics is the first line of defence that could aid efficiencies. Diagnosing the problem with a tablet before its returned by the consumer - and subsequently returned to the manufacturer by the retailer - would significantly reduce the number of devices needlessly returned, tested, and repaired. The problem here lies with both retailers’ and consumers’ attitudes towards adding a layer of remote support. Many retailers currently offer a “No Questions Asked” return period of 15-30 days on tablet computers. Consumers like this policy because it gives them the chance to try a new device in their real life workflow with the safety net of getting their money back should buyers’ remorse set in. Retailers, of course, are reluctant to do anything that might drive their customers away to a competitor.

This undoubtedly includes revoking existing policies. Moreover, adding a layer of remote diagnostic support will introduce an additional cost to retailers’ tablet sales operations. Even when it comes to in-warranty repairs, manufacturers are more likely to issue an advanced exchange unit then attempt to diagnose the problem remotely. The defective unit is then sent back through the reverse logistics supply chain and added to the costs and liability associated with warranty support.

As suggested earlier, a second way to improve reverse logistics efficiencies is to move the return & repair facilities closer to the customer/retailer through a regional service model. Many 3PSPs currently offer only one, centralised US-based repair facilities. This practice directly contributes to inefficiencies in the reverse logistics supply chain - i.e. Increase time and fuel costs associated with shipping tablets great distances for testing and screening work, and then possibly on to other facilities for refurbishment and liquidation. Performing critical reverse logistic functions in strategically located facilities throughout the United States would cut transit time, resulting in increased velocity associated with turning distressed inventory from a liability into an asset. Of course, the downside associated with this solution is cost. Opening additional facilities on American soil, if ones do not exist already, is costly, both on its own and as compared to running offshore operations.

More effective device testing and screening prior to repair is a potentially viable alternative solution. Various methods of testing exist and, again, each carries with it pros and cons: New Developments in Tablet Computer Repair

MANUAL TESTING:

Inexpensive and fast to implement but subject to human error and costly in the long run.

DIAGNOSTICS TESTING:

Automated but reliant on device/API/OS-specific software wrappers. New tests may need to be created with new releases of a device, an API or OS.

BOARD LEVEL TESTING:

Testing the devices in developer or engineering boot mode. This process can be automated. The problem is that it does not address the problems with the device from an end-user perspective and, as such, real-world functionality problems may be missed.

OPEN UNIT TESTING:

The device’s screen and cover need to be removed in order to test the board on a bed of nails. This breaks the integrity of the tablet’s seal and adds time to the process, resulting in increased cost.

EMBEDDED DIAGNOSTIC TEST:

This type of testing can query the hardware, but not stress its functionality.

AUTOMATED TEST EQUIPMENT (ATE) OR “BED OF NAILS” TESTING:

This type of testing, leveraging the investments the OEM or their contract manufacturers make in end-of-line manufacturing testing, is costly, difficult to duplicate and locate regionally, and may require considerable labor in terms of the finished product and the multiple stages of testing implemented. It is also generally slower, due to it being an end-of-line test, and geared for manufacturing facilities, not repair facilities. Furthermore, Bed of Nails tests the connectivity between components as opposed to their functionality.

As evidenced, current test methods for tablets possess significant shortcomings, though testing on the whole unit does offer efficiency improvement over the “just send it back” handling of returned tablets. New Developments in Tablet Computer Repair

LIQUIDATION IS ANOTHER OPTION.

Liquidating returned tablets for their asset recovery value may seem like the most expedient approach for extracting value out of returned devices. However, it is a money-losing proposition in the long run given the high rate of NFF and cosmetic repairs, combined with the increasing volumes in the industry. Furthermore, it does not address issues associated with defective or failed components. As such, the manufacturer and its 3PSPs loose valuable intelligence that can be utilized to improve the design and/or engineering of tablet devices. Though tablet liquidators persist, this approach in the current market will have limited benefits as volumes increase and consumers hold onto their devices for an extended length of time. New Developments in Tablet Computer Repair.

Optimised test & screening solution

An optimised screening system can maximise efficiencies while avoiding many of the shortcomings exhibited by the aforementioned testing methods. Screening systems able to test 10 or more tablets at a time can offer increase speed and reduce costs associated with testing. Consistency of process and results will also rise thanks to the use of automated and semi-automated testing systems. Thus, “Screen and Clean” promotes the cost effective recovery of good units with minor cosmetic refurbishment to be processed for resale. Additionally, they can be used as maintenance replacements, or for the dispositioning of products into other markets at the best return for the retailer.

Leading-edge screening technology includes application diagnostics and embedded diagnostics that can be loaded onto devices. Tests can be run on devices in user mode as opposed to “developer” or “engineering” mode to ensure that everything works as it should from the end-user’s perspective. Functional testing of device circuits may take the form of “parametric” testing, which leads to an even greater level of reliability and quality of results.

 

A regionalised approach to testing, screening, and cleaning the units can also speed up the reverse logistics flow. Performing these functions in strategically located facilities in high volume areas within miles of major metropolitan areas will improve efficiencies as described in Section 4 above. Authorising these facilities to handle key activities like repair, refurbishment, and liquidation will reduce costs for retailers while improving asset recovery values and the speed at which tablets are returned back into consumers’ hands. This increased efficiency has the added value of making retailers’ extended warranty plans more economically viable. Furthermore, the regional model described here will also fulfil OEM's requirement to minimise costs and deliver superior customer services as measured by repair turn-around time. New Developments in Tablet Computer Repair

Vendor Selection Criteria

We surveyed a cross-section of OEMs, Retailers and Wireless Carriers regarding their needs and attitudes towards the tablet repair market. The majority of respondents surveyed indicated that their customers are required to mail in defective units to an Authorised 3rd Party Service Provider (3PSP). Many of these 3SPSs are managed by OEMs and/or their subsidiaries, speaking to the OEM lock on the still-nascent tablet repair industry.

Survey respondents spoke to a number of criteria important in choosing and sticking with a vendor. The most important factors in choosing a vendor, ranked in order of priority, are:

• QUALITY OF REPAIRS
• COMMITMENT TO QUALITY METRICS
• ABILITY TO MEET TURNAROUND TIME (TAT)
• REQUIREMENTS (2-5 DAYS)
• WILLING TO INVEST IN TRAINING
• QUALITY & THOROUGHNESS OF REPORTS
• QUALITY OF IT INFRASTRUCTURE

Clearly repair quality is paramount in vendor selection. Qualified vendors must be able to meet OEM specifications and otherwise offer consistently high quality test and repair services. Long-standing, standardised processes across a vendor’s network demonstrate commitment to quality metrics.

With turnaround time being ranked second in priority, demonstrated high-velocity forward and reverse logistics is also a key criterion in choosing a vendor. Vendors who operate multiple facilities in high-volume regions and those who offer innovative time-saving services, such as in-field warranty services, excel at meeting and surpassing TAT requirements at scale. New Developments in Tablet Computer Repair 13

Also indicated are the quality of reports and IT infrastructure. Tablets have become highly complex pieces of equipment, and a vendor’s diagnostic system must be able to test many components, sensors and functions (e.g. Microphone and speaker, Cellular and WiFi connectivity, Accelerometer / Gyroscope / Magnetometer, and so on). The vendor must also offer a thorough and reliable methodology for reporting results in both high-level “Pass/Fail” and granular detail. New Developments in Tablet Computer Repair

Vendor spotlight – CTDI

One vendor whom we’ve worked with, and regard as a highly capable and qualified service provider, is CTDI. This company excels in all areas of tablet diagnosis and repair, including the specific factors identified as critical by our survey respondents. CTDI brings 39 years of technical expertise, innovation in service models, and global testing and repair capabilities to the market. They have the ability to test more than 75,000 unique model types and offer the most comprehensive repair service portfolio in the world.

CTDI’s NightHawk Test System, an advanced multi-unit tablet tester is a prime example of the company’s commitment to technological innovation in a rapidly evolving sector. NightHawk can test 10 tablets simultaneously, leveraging innovations like front-loading tablet trays that greatly increase test capacity and daily productivity. With NightHawk, CTDI has the flexibility to keep pace with the latest tablet models, operating systems and APIs while also leveraging extreme efficiencies that keep reverse logistics velocities high. NightHawk performs fully functional testing of tablets utilising CTDI designed and developed Apps tailored to access and utilise the Tablet API’s.

The purpose of these applications is to simulate the end-users tablet experience and will test the following tablet functionality:

• Connectivity
• Multimedia
• Battery
• Touchscreen, Buttons, LEDs
• Sensors
• System Information

CTDI’s ability to offer fast, high quality screening and diagnosis of multiple brands and models of tablet devices couples with their OEM authorized repair and excess asset management services to provide a comprehensive portfolio of service offerings. CTDI employs over 350 engineers to develop testing for a variety of OEM technologies, ensuring ongoing innovation to keep pace with this fast-moving market.

CTDI has a network of 69 facilities operating in 15 countries, with 48 facilities in the US alone. This mature, global network allows CTDI to offer high velocity reverse logistics by cutting down on transit time to and from their facilities. The quality of CTDI’s infrastructure is outstanding, and efficiencies are further increased by way of CTDI’s innovative, scalable Web-based testing technology. The company’s proprietary Warehouse Management System (WMS) and eBusiness tools also allow customers to enter and track orders online 24/7. In summary, CTDIs’ state of the art technology, world class processes, and global presence allow for high speed, high quality in region repairs which supports customers’ demands New Developments in Tablet Computer Repair for immediate or very short interval repair or replacement as well as meets the OEMs’ requirements to minimise costs. New Developments in Tablet Computer Repair

Summary:

The rapid growth of the tablet computer industry has created a demand for a highly efficient approach to diagnosing and repairing returned units. Our research findings show that a majority of tablet computer suppliers (e.g., OEMs, Retailers, and Carriers) waste time and money due to multiple issues in the current flow of reverse logistics. Specifically, too many devices are needlessly returned to the manufacturers’ 3PSP where time and effort is spent on testing the devices instead of screening via phone or at the retailer, and too many devices have to travel too far a distance for quality diagnosis and repair.

Market research surveys confirm that the tablet market will continue to expand by virtually all measures, including units shipped and install base. A byproduct of this growth will be the continued, increased need for in- and out of warranty repair. Our survey of decision makers across the OEM, Retail and Wireless Carrier segment confirmed the need for quality screen and repair service vendors, and also identified the key criteria involved in selecting and renewing relationships with vendors. Factors ranking high on the list of criteria included quality of repairs, ability to meet turnaround time, willingness to invest in R&D and training, and quality of reports and IT infrastructure. The primary methods discussed to alleviate such inefficiencies are: improved front-end diagnostics, moving the return & repair facilities closer to the customer/retailer through a regional service model, and, perhaps most importantly, optimised test and screening that forgoes the costs and slow speeds associated with standard testing.

As analysed in the vendor spotlight, CTDI is one vendor who meets all of these criteria with their automated multi-unit test systems and deep roster of highly trained technicians and innovative engineering talent. CTDI is also uniquely positioned to leverage their global network of repair facilities, technical competencies, and logistics support services to increase reverse logistics velocities, add value, and drive costs down. Given the huge potential for cost savings, risk protection, and revenue gains, companies should seriously consider building a business case and ROI justification for investment in solution such as the one offered by CTDI. New Developments in Tablet Computer Repair