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‘Congratulations! You grew your service business by 25% last year…but how much money did you make?!’

This is the dilemma we often hear when talking to disappointed and frustrated managers.

In our experience this is especially true for organisations undergoing rapid change or growth through acquisition. Their Service Delivery Processes have not been built on a solid foundation and they experience large variations in how services are delivered from the excellent to the appalling.

Increasingly there are many new service management and mobile solutions on the market that bring transparency to the operations. Although they are a critical ‘enabler’, they do not address the root cause of the problem. We know that for a company to successfully industrialise its back office and deliver a consistent customer experience, it is key to have a clear vision of the:-

 

• End to End business processes
• Service management practices
• People competencies
• Performance management systems
• IT requirements

 

These building blocks are not only the basis for ensuring the existing service delivery model can be profitable, they will also de-risk the introduction of new service offerings.

Take one of the company’s that has featured in this blog series, Bobst SA.

Stephan Maerz, Head of the Service Business Unit faced a classic post acquisition situation. Bobst were working with seven different brands globally, all functioning under different management models; services weren’t aligned, standards and pricing were disparate. If the answer to growth lay in their services, they needed a global plan.

In March 2012, the Bobst executive team decided to create a single One Bobst brand. In July 2012, they started to define and execute a global service transformation programme. The brand-driven strategy they developed required a globally consistent customer experience, and that meant standardisation.  But unifying operations however, wasn’t so simple. The solution? Create a Book of Service Standards, a global undertaking requiring agreement from every regional and functional head. Modes of working were so variable, the project could have taken years. But by working with a 3^rd party with access to proven models and best practice, it took only three months to agree on one model.

A lot of people said it couldn’t be done and that a global service strategy would not work on a local level. Bobst demonstrated that by using a component based service factory model, it is is possible to take a fragmented operation and build a common documented vision of how the business should operate. In this way Bobst has built the basis for a sustainable and profitable service business. The next challenge is to build a completely new IT architecture to make the book of standards an operational reality.

If you would like to know more about this case study or the Component Based Service Factory, use this link to go to the Noventum website at www.noventum.eu.

Or you can meet us in person in May at the Servitisation Conference at Aston Business School or the Service Management Expo at the the London ExCeL where we will be sharing more experiences on how to achieve business growth through services.

Nick Frank is a service specialist with Noventum Service Management

Having completed our survey on SaaS and Field Service which was run in association with Tesseract we are pleased to announce the winners of the prize draw were....

Danny Dart, Field Service Manager, JME Ltd

Paul Ramsbottom, Service Design Manager, Virgin Media Business

Richard Wilson, Operational Strategy Manager, Xerox

Congratulations to each of you, we will be contacting you shortly to arrange sending you your £50 Amazon Voucher!

If you haven't had a chance to see the findings of this research as yet then don't forget to download the white paper "SaaS and Field Service" To do so simply click this link.

If you would like to help us with our next survey which is exploring Software and Field Service in 2014 and be in with a chance of winning a £150 Amazon voucher then click here!

 

 

The field service industry continues to evolve at pace. New technologies are constantly emerging which have the potential to change the industry as we know it.

At the same time we are seeing a huge cultural shift with many seeking to realign their service division from cost centre to profit centre. To help us keep up with these changes Field Service News has put together a panel of five field service industry experts and asked them each to share their insight on the industry today. The third member of our panel is Mark Forrest, of Trimble Field Service Solutions

 

What is the biggest driver for change in field service today?

Many companies managing a large field service workforce operate in industries which require highly skilled individuals, whose work is variable and complex in terms of location and task. Add in a high degree of compliance-focused work and that means that field service work has become increasingly mission-critical in terms of timing, skills and consequence. With increased customer expectation it is important that companies ensure that their field service is not derailed by unpredictable dynamics of the working day.

An increasing number of organisations are beginning to realise that it isn’t where the vehicle is that’s important, it’s where the engineer or field service worker is and what they are doing that is of paramount concern, as ultimately they are the ones providing the service to the customer. The support of solutions to help manage work efficiently and effectively has therefore become integral in helping to meet customer demands and achieve service delivery excellence.

 

Which technology has had the biggest impact on the field service industry in the last 5 years?

Organisations with field service technicians have previously struggled to effectively schedule their work and track their progress to continually meet service commitments. Indeed, one in ten organisations still collect data from the field via paperwork. However, work management technologies have emerged to transform the productivity of mobile workforces through intelligent scheduling tools and performance management analytics.

Organisations can measure, manage and improve their operations through optimising resources, offering real-time visibility and monitoring and giving warning of tasks at risk or showing the impact of work allocation decisions.

Data obtained from such technologies can be analysed through performance management analytics to allow interrogation of the information to provide an understanding of the performance, trends and the barriers in line with business targets. The analysis drills down to different variables around individuals, teams, regions, job type etc. and can be provided to different stakeholders within the organisation depending on their business need for day-to-day management or longer term business planning.

 

What is the most important consideration when moving from cost centre to profit centre? 

Field service has evolved from what was once an operational necessity to a strategic significance, as the technician may now be the only contact a customer has with the company and therefore exposure to the company’s service delivery and brand. With a proven link between customer satisfaction, retention and profitability, how the technician interacts with the customer can be significant in the customer experience.

The most common customer complaint is when a technician does not resolve the issue first time. Making sure you get the right people with the right skills with the right assets to the right place within a set time is therefore essential. Work management technologies can help by incorporating technician knowledge, parts availability, and capacity into scheduling processes to ensure that the technician arriving on site is the person who can resolve the issue first time.

In addition, employing mobile workers who have the ability to upsell or cross-sell products and solutions whilst with customers can also make a difference to service delivery as a cost or profit centre.

 

Who is Mark Forrest? 

Mark Forrest is general manager of Trimble Field Service Management, a position he has held since January 2012. In this role, Mark is responsible for providing worldwide mobility-based productivity solutions to the communications, field services and trades markets.

Prior to joining the Field Service Management division, Mark served as general manager and Chief Operating Officer for Caterpillar Trimble Control Technologies (CTCT), a joint venture between Trimble Navigation and Caterpillar. Mark also has served as the general manager and worldwide sales director for the Heavy and Highway Division. A native of Australia, Forrest holds an undergraduate diploma in Engineering Surveying and a Masters in Business Administration from the University of Colorado.

To read this full panel debate and much more download a free digital copy of our quarterly magazine. Click here to register.

 

Welcome to the third edition of our Field Service News podcast. This month we are joined by Strategies for Growth's President and Principal Consulting Analyst Bill Pollock. 

In this exclusive interview Bill talks extensively about his most recent research project which he undertook across the last six months of 2013 and drills down to explore those companies that are operating at a best-in-class level and what separates them from the rest of the pack.

This podcast is also accompanied by a fantastic white paper written exclusively for Field Service News by Bill and you can download both of these excellent resources for free by simply clicking the link below and filling out a brief registration form.

 

Click here to get the full podcast and accompanying white paper for free now!

 

Field Service News was proud to publish the inaugural edition of our quarterly magazine earlier this month, which is available for free to UK field service professionals. If you missed out on this first issue or you are based outside of the UK then you can download a digital copy here.

We are fortunate enough to be joined by some of the field service community’s brightest and best and have a wide range of guest contributors from differing areas of the industry, all coming together in one place, to keep you fully up to date of all the latest key trends, technologies and practices emerging in the industry today.

Although we haven’t just gone and brought together a great bunch of writers and let them get on with it - that would be a bit of a cheat wouldn’t it?

No, the team here at Field Service News have been earning their keep as well and amongst all the other the great insight and analysis you will also find a five page special report looking at the appetite for the Cloud in the field service industry. This report comes off the back of a two month long research project we conducted in partnership with Tesseract systems.

I won’t put any spoilers in at this early stage but suffice to say that not all the findings were what you might have expected them to be, so it is certainly worth a read.

Then there is our exclusive interview with Telogis’ Top Man in the UK, Sergio Barata. He has been given the somewhat unenviable task of replicating Telogis’ exceptional growth in the US (Deloitte Fast Track 500 6 years running?!) here in the UK.

No mean feat, however, Telogis did announce an investment of £90M not too long ago to help grow their British business so it’s clear they mean business and Sergio whilst being an amiable and approaching guy, is also very switched on, very knowledgeable about the industry and also has an excellent grasp of what he needs to achieve and exactly what steps he needs to take to do so.

Yet another feature you cannot miss is our panel debate - ‘All change please.’ With the industry seemingly in constant flux as wave upon wave of ground-breaking technology appears (each with the potential to change the industry as we know it entirely) we thought we would try to make sense of things by bringing five of the smartest folks we know and putting the same three questions to each of them. With a diverse range of backgrounds and specialisms they make a formidable panel (I certainly wouldn’t want to bump into them on a dark night!) and provide some fantastic answers across the four pages.

And then there is more! But you are going to have to download the issue to find out for yourself!

So Click here to download your copy now!

 

 

Customer service is widely recognised as being the number one business priority with a proven link between customer satisfaction, retention and profitability. Indeed, Aberdeen Group recently reported that organisations that reached a 90 per cent plus customer satisfaction rate achieved an annual 6.1 per cent in service growth, 3.7 per cent growth in overall revenue and an 89 per cent level of customer retention.[1] With approximately 78 per cent of UK GDP derived from the services sector[2], customer service is becoming increasingly recognised as a strategic issue and, according to the Institute of Customer Service, if organisations do not include it in the boardroom then some of those businesses won’t be around in the longer term.

The growing importance of customer service

Tom Gorman, president of opXL, LLC and a field service expert believes that the goal of field service excellence is to respond quickly to customer needs, whatever they may be and it takes four criteria to meet this goal: Be on time; allow enough time to do the job; have the right skills; and bring the right equipment.

The most common customer complaint is when a technician does not resolve the issue first time. This may be due to not having the right part or tools, not having the right skills or not enough time to complete the job[3]. Considering 25 per cent of service calls require a follow-up visit, the result of not achieving a first-time fix can be detrimental. Indeed, Aberdeen Group report that companies not meeting a 50 per cent first-time fix rate and requiring a return visit reported revenues dropping by nearly 3 per cent.

As a result, more and more organisations are beginning to realise the value of ‘intelligent scheduling’ - incorporating technician knowledge, parts availability, and capacity into their scheduling processes to ensure that the technician arriving on site is actually the person who can resolve the customer’s issue first time. Businesses can address the challenge of making better in-day decisions by utilising a work management self-learning tool. To avoid large data set-up exercises of skill sets and work areas, a self-learning tool supports the assignment of work orders to the field technicians by remembering who has the right skills and their usual work areas. The user also has the ability to enquire what has been learnt by the system and correct it. Aberdeen’s research found that the Best-in-Class (the top 20 per cent) performers had mean success ratios of 92 per cent for meeting response or project completion deadlines and 88 per cent for first-time fixes.

What matters most to customers?

According to Jo Causon from the Institute of Customer Service, there are five key areas which matter most to customers:

• Well trained and professional staff members who are genuinely empowered to do their jobs.... are the people that interact with customers professional and empathetic with emotional intelligence and business acumen?
• How easy is the organisation to do business with... does the business make it easy for me to interact with them across all channels?
• Product and service quality...Does the product or service do what is expected?
• Problem resolution.... how are any issues resolved? This is not just about the outcome but also includes the way the process is managed.
• And timeliness...care needs to be taken when managing customer expectations about the timescale in which products or services can be delivered. It is absolutely critical to match and manage customer expectations.[/unordered_list]

The strategic importance of the field service worker

The role of the field service operative has changed dramatically over recent years; shifting from one of operational necessity to strategic significance. Why this change? Because with the rise in use of automated booking systems, for example, and with the growing trend of machine to machine (M2M) capability allowing applications to provide preventative and predictive analytics, the field technician’s visit to the customer may be the first and only exposure a customer has to the company’s brand and service delivery.

Jo Causon, chief executive of the Institute of Customer Service:

“The biggest change we have seen in customer service, is the move from a transactional economy to the relationship economy where value lies in one-to-one interactions and service leaders prevail in the marketplace. A ‘personalised service for many’ and a dialogue approach, as opposed to the traditional monologue, is now desired. This power shift has come about, partly due to technology and the rise of social media, but also because you and I, as customers, want to be much more engaged in the customer experience.”

“Looking ahead, demand for staff who have desirable attitudes and attributes for customer service will increase. In particular, there will be a stronger focus on the importance of emotional intelligence as an enabler to deal with the wide variety of changing customer service relationships and interactions.[4]”

Social media given power to the consumer

How do you build relationships with so many, while personalising the interaction? This dialogue approach is a major management issue but one which can, in part, be addressed through the use of social media.

Social media channels have given power to the consumer like never before. We now take to Twitter and Facebook to communicate with organisations about our customer experience, with many of us expecting rapid responses to our queries and complaints. It is therefore vital that organisations not only have a social media presence but have clear messaging via social channels and teams empowered to conduct social media interactions with customers in a rapid and flexible way.

Who owns the customer experience?

According to the Institute of Customer Service, having somebody on the board who has overall responsibility for the customer experience is essential and that somebody needs to be the CEO. The customer service strategy is integral to the business strategy, and the board needs to lead on this.

For further understanding on the changing landscape of customer service get a copy of Trimble FSM's latest Insight report Transforming Service Delivery which delivers more exclusive analysis and insight from Trimble's latest research plus a number of great insights from industry leaders and examples from real-life businesses.

Click here get your free copy of this excellent 40 page insight report

Promotion of this ebook is a joint venture between Trimble FSM and Field Service News. By downloading you consent to the terms of the privacy policy here

In theory field service would seem to be an industry that could benefit greatly from the cloud. The ability to give remote access to systems for mobile workers is obviously advantageous to an industry that by its very definition has a high percentage of its workforce on the move.

But has the field service industry leapt into the cloud feet first, or is there still some reluctance until the technology proves itself robust enough to be trusted with service management systems?

Across the last few months Field Service News in partnership with Tesseract have undertaken a research project, which aims to take a measure of the appetite for Cloud based software and the Software as a Service distribution model within the field service industry.

Read our executive summary below or download the full white paper for free by registering on this link 

 

On Premise versus Cloud in field service today:

The first major insight from the research is that despite Cloud and SaaS becoming more widely understood as a concept, as far as the headline numbers are concerned currently those companies that have placed there field service management systems in the Cloud remain in the minority. In fact currently 77% of companies are still using an On-Premise solution with just 23% having actually moved their field service software to a Cloud based platform.

At first glance this may seem somewhat of a surprise. We have been hearing things about the Cloud, good and bad, for quite a while now. Salesforce.Com the Grandaddy of the Cloud who pretty much single handily made a mockery of computing giants such as Oracle and SAP’s dismissive stance towards SaaS as a passing fad, are now a ripe old 15 years old. The cloud’s been around for long enough to take route by now hasn’t it? One argument could be that actually fifteen years isn’t that long, especially when we take into consideration that it took a few extra years for the first browser based service management solution to appear (Tesseract’s Service Centre 4.2 in 2001) and also as all service management software previously had been purchased on a pricey CAPEX model then the life cycles of these systems were understandably relatively long.

The shift to a new, emerging technology will likely be weighted towards a slower start in such an environment. Actually we can find further evidence of this when we look at exactly how long those companies who are currently using an On-Premise system have been using that system for. The vast majority (60%) have been using their current system fro at least three years so this would certainly seem to correlate with this theory. In fact just 18% of On Premise solutions are recent implementations (within one year). A slightly larger amount 22% of systems are between a year and three years old.

However, it is when we look at the next question we asked of those respondents using an On Premise system “Are you likely to consider a SaaS/Cloud solution when you next update your service management system” that we start to see some genuine evidence that the shift to the Cloud is starting to speed up. Of those companies currently using an On-Premise solution just over half 53% have stated that they are considering a move to a Cloud based solution in the future. With 47% stating that they will not consider the Cloud for their next iteration of field service management solution.

If this figure remains true and there is a conversion from those ‘considering’ the Cloud to those adopting the Cloud then within a period of perhaps three to five years, by when most companies will have moved onto next generation platforms, it is highly likely that we will see an almost 180º switch in the ratio of On Premise to Cloud systems being in place with SaaS becoming the dominant model for software distribution within the field service industry. Whilst the shift may be slow initially, it would seem that when it does happen it could be quite dramatic.

 

The benefits of Cloud in field service

So what exactly are the benefits of Cloud based service management software to merit such a dramatic shift? We asked those respondents that were already on a Cloud based system what were the reasons they chose to choose Cloud over an On-Premise solution, asking them to indicate if any of the following reasons were important to them. The benefits we listed were: more affordable pricing model, scalable solution, disaster recovery, easy remote access, speed of going live, less reliant on IT department.

The results were interesting in that perhaps they did not conform to what are often seen to be the key USPs of Cloud based solutions. Of these options easy remote access was the most popular reason cited with 61% of respondents indicating this was an important factor to them. The second most popular benefit was the fact that Cloud solutions are scalable with 54% of those surveyed ticking this option. Often the most heralded benefit of the SaaS distribution model is that it makes expensive solutions more affordable.

However, this was only the joint fourth most popular option tied with another benefit that we regularly see being championed i.e. the speed of going live. With just over a quarter of respondents (28%) indicating that these were important factors to them. When we look just at companies with the smallest category of mobile workforce (under 50 field engineers) we do see an increase to 35% of companies that cite affordability as an important reason for choosing SaaS, yet again it remains only the fourth most popular choice. The conclusion to be drawn from this is that whilst the fact that a SaaS model does of course offer a more affordable payment model, it appears that it is the other benefits that enable improved efficiency in the mobile workforce that mostly attracted these early adopters.

But what about the actual benefits that are being seen by those using a SaaS service management system? Beyond the hyperbole and marketing speak what are the benefits that genuine field service companies are experiencing in the real world?

So as to not to colour the results in anyway around this critical question we opted to leave the response to the question ‘What has been the biggest benefit to your company since moving to the cloud” as a open text response. This has given us a truer understanding of what the key benefits to Cloud based field service software were.

The most prominent benefit that stood out was the general performance of the systems themselves alongside the ease of updates. A quarter of all responses (25%) were grouped around the fact that by having a system that was easy to upgrade respondents found they were essentially getting a regularly improved and refined piece of software so performance levels remained above those that they had experienced previously. The other most significant benefit was in fact the cost which also was listed by 25% of the respondents. So whilst cost may not have been as high as anticipated as a reason to initially opt for a SaaS model, it would appear that once the decision had been made, the more manageable payment methods of SaaS did indeed shine out as a key benefit of the model. This would be particularly relevant for those companies whose service division operates its on P&L of course.

Speed was also a regularly used term word amongst the responses. In the main the reference was to the speed and ease of set up however the speed of information flow between field engineers and head office was also raised as a key benefit. Speed alongside the term ‘ease of use’ was both common terms that appeared in 13% of all responses. Other benefits that are worthy of mention are increased mobility, scalability and flexibility including being able to put multiple countries onto the same operating system easily and the easy accumulation of data via remote access in one source.

However, certainly the greatest acid test of how successful the Cloud has been in terms of delivering field service software to those that have taken this path is whether or not they would recommend a similar move to others. In this instance it would certainly appear that the implementation of Cloud for those field service companies that have made the move has been an overwhelming success with 90% of companies that are currently using a Cloud based field service management solutions stating they would recommend doing so. Such a majority is certainly a powerful statement to the positive impact of the Cloud for those field service companies that have been early adopters and embraced the technology.

 

Yet some many remain unconvinced

So it is evident that those who are working with a Cloud based solution seem to be satisfied having made the change and it also seems that many of those still using an On-Premise solution are actively considering a move to the cloud when the opportunity to upgrade there service management software next arises. Yet there is still a sizeable amount of companies (circa 30%) that are not considering the Cloud at all.

Why exactly is this and what fears do they have? We asked those respondents that indicated they would not be considering a Cloud based solution to identify the key reasons they did not feel comfortable with the cloud. Perhaps somewhat unsurprisingly the leading reason cited was Security. Front-page news stories about the lack of security in the Cloud continue to cast doubt it seems as 47% of companies that are not considering the Cloud still cite security as a key fear. Concerns around connectivity and issues integrating issues with existing legacy systems were also both common objectives with 34% and 37% of companies respectively indicating that these issues gave them cause for concern around a move towards the Cloud. What is interesting is when we compare these issues with those that are currently operating a Cloud based service management solution these fears do not necessarily match up to the reality. In fact when looking at the issues that those who are using the Cloud have actually encountered we actually see the reverse of the above.

The most common issue with the Cloud has proven to be connectivity issues, which 60% of companies using a Cloud based system have experienced problems with. The second most common issue is then integration with existing systems, which 40% of companies have faced. Security in fact ranks the lowest of the issues cited by companies using a Cloud system with only a quarter of companies having had any issues in this area whatsoever. Looking further at those companies that are not considering a Cloud solution, it is interesting to note that whilst the large majority (72%) have not implemented Cloud systems in any area of their business, a still sizeable 29% of companies did have at least one element of their business requirements based in the Cloud.

This initially seems odd as with a clear benefit of Cloud being ‘easy remote access’ it would seem a perfect bedfellow for the field service systems and therefore one might assume, one of the first systems to be moved into the Cloud. However, when we look at the reason given for why respondents felt Service Management software in particular should still be held On Premise the majority of respondents (70%) identify integration with existing systems as the main reason why they believe they need to keep their systems out of the Cloud. Essentially as service management systems are so core to company’s operational efficiencies, for some it simply isn’t worth the risk of moving to a system that cannot be easily integrated into wider business systems.

For those more conservative companies that would prefer to see a technology fully established and road tested before committing to it, connectivity issues between the Cloud and existing systems to still remain so it could be prudent to hold back for the near future, until these issues are fully resolved. However, of course the longer a company waits to take advantage of the benefits of a new technology, the greater risk they are in terms of falling behind the rest of the market in terms of efficiency and translating this into better service standards.

 

Conclusion - SaaS will eventually become the norm in field service

Whilst at the current time Cloud computing has yet to take a firm hold amongst the majority of field service companies, with most companies still using an On-Premise system, it would certainly seem that there is a definite shift towards the Cloud and the SaaS model and that shift is starting to gain momentum. If those companies that are currently considering a move to SaaS do actually make the transition, then within the next few years we could see a complete reversal in the ratio of companies operating On Premise systems versus those operating on Cloud based solutions, with Cloud becoming the dominant platform.

The benefits of Cloud are numerous and well suited to field service, with the ease of remote access being the key factor for companies either considering moving to the Cloud or those that have made the move already. Wider benefits such as the more affordable pricing structure of SaaS, the speed of implementation and less reliance on IT departments also of course are attractive factors to field service companies also. The biggest issue that has slowed the adoption of the Cloud in field service to date is the perception that security is a major issue for Cloud systems.

However, in reality this has not proved to be the case for those field service companies that are actually operating in the Cloud. Yet these doubts still remain and perhaps it is a matter of the technology having to continue to prove itself secure over a longer period of time for these to abate fully. At the same time the biggest issues felt by those using the Cloud are possibly likely to be resolved by surrounding technologies in the near future. Connectivity, which is the largest problem facing companies with a Cloud system for example will ultimately ebb away as serious issue as mobile internet standards continue to increase.

Within the UK for example all of the major providers are required to meet 90% 3G coverage of the UK as part of their contracts with UK Government by this summer. Currently the only provider to have fallen short of this target is Vodafone who offer 3G coverage to 88.5% of the UK. Of course with 4G now being rolled out this situation will only continue to improve.

When we consider that there is a building appetite for the Cloud in Field Service Industry, the key fear around the Cloud (security) is proving in reality a far less common issue than the perception would have us believe and that the most common issue being faced by those currently using the Cloud is potentially going to diminish naturally as internet coverage becomes ever more widespread it would seem that the Cloud is set to become an established platform for field service technology, and even ultimately become the most commonplace method.

 

Want to know more? Download the complete white paper based on this research for free by clicking this link

 

This research was undertaken in partnership with Tesseract. Find out more about Tesseract in the Field Service News Directory here

 

 

 

The field service industry continues to evolve at pace. New technologies are constantly emerging which have the potential to change the industry as we know it.

At the same time we are seeing a huge cultural shift with many seeking to realign their service division from cost centre to profit centre. To help us keep up with these changes Field Service News has put together a panel of five field service industry experts and asked them each to share their insight on the industry today. Second in the firing line is Paul White, CEO mplsystems

 

What is the biggest driver for change in field service today?

It’s all about customer expectations, today’s smart phone empowered customers expect immediate service when they want it - or they’ll switch. Delivering field service is no longer just about dispatching resources. Instead the focus is on delivering end-to-end customer service targets and reacting to changes in real time. However the reality for most organisations is still a proliferation of disconnected systems and processes that make it impossible to monitor and deliver true end-to-end service. Systems integration simply won’t fix this for most organisations, it will just result in inevitable manual data fill and mistakes – and an inability to deliver the reactivity and service that customers demand.

 

Which technology has had the biggest impact on the field service industry in the last 5 years?

The ability to deploy affordable field service apps on standard mobile consumer smart phones and tablets rather than expensive dedicated devices has had the biggest impact, enabling an entirely new generation of connected field service solutions. You can now equip field staff to support customer engagement activities, track on-site attendance and feed back into HR, monitor time in the field for improved financial management, as well as provide specialist telematics services - all via flexible smart phone apps. However, these will still require integration to avoid the kind of piecemeal approach that inevitably leads to efficiencies, with vital customer data getting stuck in individual departments.

 

What is the most important consideration when moving from cost centres to profit centres?

Turning field service from a cost centre into a profit centre demands an end-to-end approach that’s reactive to customer requests and strengthens loyalty by driving out errors. This then empowers those people who spend most time with your customers – your field service staff – to identify and action the right cross sell and upsell opportunities with your loyal customers. An engineer fixing the lighting, for example, may notice that an air conditioning system also needs work – so it’s important that they have the sales mechanisms in place to immediately recommend and action repairs.

 

Who is Paul White? 

Paul White joined mplsystems as Chief Executive Officer in May 2005. Paul has spent the last 20 years working in and around the Field Service and Contact Centre industry and is one of the industry pioneers in the creation of affordable service management and CRM and Customer Service contact centre solutions. Prior to joining mplsystems Paul was the founding CEO of BT Contact Central, which, over 4 years, grew into a global business across UK, Europe and Asia Pacific. Whilst at BT, Paul was responsible for designing some of the largest CRM and Customer Service solutions in Europe and had major roles in systems architecture, product management and sales.

 

To read this full panel debate and much more download a free digital copy of our quarterly magazine. Click here to register.

 

 

 

 

Nick Frank, Consultant with Novetnum Service Management continues his exclusive series looking at building revenue from services...

Selling services, how difficult can it be? Talk to a product sales person: ‘Piece of Cake, but…’.     Talk to the Services Sales specialist about their product colleagues; ’They don’t understand…. all they care about is the big deal’

In truth it’s not black and white, which is why it’s not so easy. Product Sales people can be very successful at selling services, if they are packaged as a product. For example I have seen great results for well defined service maintenance contracts, sold up front with the product. But I have also experienced complete frustration with some product sales people, as they struggle to sell managed services to more senior decision makers.  Generally this because they do not fully understand the strategic growth issues the boardroom faces and focus on service features.

To find the best path for your business requires an in depth knowledge of your customer’s buying processes, your own service propositions and your people. Get the answer right and it’s possible to create tremendous momentum, where you can start to see growth rates of between 20-40% per year in your services business.

Easy words, but what about the reality. Lets look at the experiences of a world leader in packaging equipment, Bobst SA based in Switzerland. The Head of the Service Business Unit, Stephan März saw the opportunity to transform the Services into a sustainable engine for long term growth. Two years in and Parts & Service is starting to push past 6% annual growth. This growth has been led by a focus on services where contract penetration has doubled. Although he is mid- journey, some of the lessons Stephan has learned about energising service sales are a good guide for anyone making this transition:

 

1. Technology leadership is not enough anymore: Spend time with the product sales force repeating this message. ‘Good Services are key to selling more Machines’. They will get it in the end, especially when you look at their incentives!
2. Focus, Focus, Focus: Creating a separate service team gave service an identity and motivation. Bobst had gone as far as creating a separate Business Unit, which allowed Stephan to demonstrate who was making the money…and it was not the products! Dedicated marketing, sales and supply chain allowed him to develop and implement very effective service proposition quickly. A focus on sales people skills; who were hunters or farmers. And often a successful approach for complex equipment manufacturers, leveraging  the customer perception of Regional Service Managers as trusted advisor’s, and using their skills to drive Service Sales.
3. Communicate, Communicate, Communicate: It’s a major cultural change, but change does not happen overnight. Even though Stephan had 100% commitment from the CEO and the Executive team, he still had to work through the silos issues, dealing with jealousy, finger pointing, remuneration, profit & cost allocation and yes, car policy. Bobst worked very hard on team work with their product Sales colleagues, making sure roles and responsibilities were clear; and its beginning to work!
4. Patience, Patience, Patience: Business is impatient for results, but service sales is in fact part of a long term transformation programme, where the business model, processes and people all need to be challenged. It takes time commitment and management skill to achieve the desired relationship and results.

If you are interested in how to sell service more effectively, why not look to attend Noventum’s next Service Sales Course or look at our article on ‘How to boost Service Sales at this link