In the latest Field Service Podcast, Chris Raddats, Senior Lecturer in Marketing and Operations at the University of Liverpool discusses the managerial implications of Customer Experience Management in a B2B environment.
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Aug 16, 2019 • Features • The Field Service Podcast • b2b • Customer Satisfaction and Expectations
In the latest Field Service Podcast, Chris Raddats, Senior Lecturer in Marketing and Operations at the University of Liverpool discusses the managerial implications of Customer Experience Management in a B2B environment.
For firms operating in the B2B sphere Customer Experience Management (CEM) can be a key differentiator in a complex and competitive marketplace. Chris Raddats from Liverpool University outlines some of the key dimensions in CEM that Managers need to understand to stand out from the crowd.
In this podcast, Chris also refers to another project he and a colleague currently are working on around branding in a B2B context. He is keen to speak to product and manufacturing companies who are servitizing to contribute to the study. If you are interested in getting involved then drop Chris an email at C.Raddats@liverpool.ac.uk or connect with him at LinkedIn here.
Aug 14, 2019 • Features • Management • Ageing Workforce Crisis • workforce management • FIeld nation • field service • Blended Workforce • FieldNation
There are three key considerations that field service organisations must take into account when building a modern workforce, including the changing demographics from Baby Boomer to Millennial, the impact of technology on field service operations,...
There are three key considerations that field service organisations must take into account when building a modern workforce, including the changing demographics from Baby Boomer to Millennial, the impact of technology on field service operations, and the growth of the ‘gig’ economy. In the first article in this series, run in partnership with FieldNation, we looked at why the field service landscape is changing, now in part two we discuss how you should approach building a modern field service workforce...
Aug 14, 2019 • Features • Management • service strategies • Columbus UK • Customer Satisfaction and Expectations
Chris Mean, COO at Columbus UK, says a fully integrated field service programme drives customer satisfaction. Here, he outlines what you need to know and what you need to do to to stay on top of your service delivery.
Chris Mean, COO at Columbus UK, says a fully integrated field service programme drives customer satisfaction. Here, he outlines what you need to know and what you need to do to to stay on top of your service delivery.
Gartner research suggests that by 2020 70% of organisations will cite customer satisfaction derived from integrating field service as a primary business benefit. But how, and even more importantly, where can field service be integrated into a company’s operations in order to reap these customer rewards? This article outlines the key elements that enable companies to increase their service revenue while keeping associated costs at a minimum, and explains how field service can be seamlessly put in place to add value to business operations.
The path to field service success starts with understanding the key aspects that contribute to both boosting service revenue and controlling service costs. These elements need to be implemented well and are an essential first step for any organisation considering how to integrate field service into existing business operations and systems.
Provide relevant warranty information
If a business has a largely manual warranty claim process, this is likely to result in ‘warranty leakage’ – where a warranty service is unintentionally provided beyond the remit of a business’ warranty program. This is typically due to limited visibility of accurate warranty data – from the perspective of management in terms of where warranty costs are likely to occur, and from a field service engineer’s point of view regarding what is covered by warranty. The implementation of technology and business insights in the form of auto-entitlement warranty checks are important, as employees benefit immediately from relevant warranty information whenever required.
Offer service flexibility
Considering how a business typically segments existing customer markets, the service offered to each segment and how customers consume products is key to identifying new target markets. It is essential to remember that a customer’s business expectations are built on their personal experiences as a consumer, particularly in today’s connected, always-on world. Flexible service offerings will ultimately enable businesses to enter new market segments.
Capitalise on sale opportunities
Perhaps the most obvious way to increase service revenue is to take advantage of positive interactions with customers. Each time a customer service agent or field service engineer has a strong conversation with a customer represents a potential opportunity to up-sell – but agents and engineers must have the necessary tools to identify these opportunities. Whether it’s selling additional products during a service visit or selling an extension or improved warranty package, it is essential that employees know what products are available and recommended, have stock readily available if it is a physical item and can process transactions at point of sale.
Fully integrate mobile devices
The quicker each field service engineer can close and approve a customer work-order, the more a business can speed up cash flow. Engineers must therefore be equipped with mobile devices that enable immediate customer approval and closure or work-orders, but more significantly these devices must be fully integrated into the existing accounts receivable system to automatically generate customer invoices. With better integration of commerce platforms this allows for payments to be taken instantly.
Better manage inventory
Having business insights into overall part consumption, by job or product, can reduce inventory levels. The key for businesses to effectively manage their inventory is to ensure that they have the right parts on hand or have visibility of nearby stock on another van to improve ‘first time fix’ rates. This also helps determine which parts are fast moving or failing and allows a business to centrally stock the right levels.
Optimise service schedules
Optimising scheduling and on-the-fly routing are another necessity for a business that employs a high number of field service engineers and as a result handles shorter service calls. When routes are optimised this has great benefits in terms of headcount and fuel costs. Implementing on-the-fly scheduling engines allows businesses to react to real-world situations such as cancellations, urgent appointments, delays and traffic to ensure a high level of efficiency and customer satisfaction is maintained.
Where exactly in a value stream can field service help?
For businesses to achieve the true customer benefits that come with connected field service they need to know exactly where it can be integrated to add value to business operations. There are four main areas where its influence is most effective:
1. Repair
If a machine is broken, a service technician makes a field visit to resolve the issue. The repair may be covered by warranty or incur charges because of the time and parts consumed, but this is where field service is advantageous and cost-effective – problems are fixed at the first time of asking, in real-time. A business that can provide a service that is timely, when the customer requires it, is key to gain a competitive advantage.
2. Maintenance
Moving beyond customer expectations of timely maintenance and repairs, businesses can now shift towards offering maintenance on a predictive basis. Using smart IoT devices, machines can automatically inform both the business and customer that a malfunction is likely to occur and that maintenance is required. This is an especially valuable aspect of field service because breakdowns and operational downtime are reduced.
3. Installation and commissioning
This applies to products that need to be installed by a service technician. Once a product has been installed, the technician will run several tests to ensure the machine or device is fully operational –the commissioning process. For businesses operating in the B2C world, flexibility at this stage is especially important because customer expectations have changed – they expect to be able to purchase a product and schedule its installation at a convenient time for them in one, unified transaction.
4. Business consultation
A field service visit can also include a critical analysis of a business and its customer demands – it isn’t always a hands-on appointment with a machine or device. It is important that a business is connected in a feedback loop with its customers to better understand their requirements and further enhance future business operations – particularly because customer satisfaction is now considered the most important aspect of field service ahead of price and quality.
Flawless field service: A strategic enabler for customer satisfaction
To achieve an end-to-end, unified customer experience, an effective field service solution spanning repair, maintenance and installation and commissioning should be implemented.
During all stages of the field service customer journey, businesses need to make sure their field service engineers are empowered and able to identify and execute sales opportunities, as well as having the ability to capture customer feedback.
This is how businesses can consistently benefit from the revenue potential that comes with integrated field service, while ensuring customers are satisfied because they are getting the experience they have come to expect.
Gartner research suggests that by 2020 70% of organisations will cite customer satisfaction derived from integrating field service as a primary business benefit. But how, and even more importantly, where can field service be integrated into a company’s operations in order to reap these customer rewards? This article outlines the key elements that enable companies to increase their service revenue while keeping associated costs at a minimum, and explains how field service can be seamlessly put in place to add value to business operations.
The path to field service success starts with understanding the key aspects that contribute to both boosting service revenue and controlling service costs. These elements need to be implemented well and are an essential first step for any organisation considering how to integrate field service into existing business operations and systems.
Provide relevant warranty information
If a business has a largely manual warranty claim process, this is likely to result in ‘warranty leakage’ – where a warranty service is unintentionally provided beyond the remit of a business’ warranty program. This is typically due to limited visibility of accurate warranty data – from the perspective of management in terms of where warranty costs are likely to occur, and from a field service engineer’s point of view regarding what is covered by warranty. The implementation of technology and business insights in the form of auto-entitlement warranty checks are important, as employees benefit immediately from relevant warranty information whenever required.
Offer service flexibility
Considering how a business typically segments existing customer markets, the service offered to each segment and how customers consume products is key to identifying new target markets. It is essential to remember that a customer’s business expectations are built on their personal experiences as a consumer, particularly in today’s connected, always-on world. Flexible service offerings will ultimately enable businesses to enter new market segments.
Capitalise on sale opportunities
Perhaps the most obvious way to increase service revenue is to take advantage of positive interactions with customers. Each time a customer service agent or field service engineer has a strong conversation with a customer represents a potential opportunity to up-sell – but agents and engineers must have the necessary tools to identify these opportunities. Whether it’s selling additional products during a service visit or selling an extension or improved warranty package, it is essential that employees know what products are available and recommended, have stock readily available if it is a physical item and can process transactions at point of sale.
Fully integrate mobile devices
The quicker each field service engineer can close and approve a customer work-order, the more a business can speed up cash flow. Engineers must therefore be equipped with mobile devices that enable immediate customer approval and closure or work-orders, but more significantly these devices must be fully integrated into the existing accounts receivable system to automatically generate customer invoices. With better integration of commerce platforms this allows for payments to be taken instantly.
Better manage inventory
Having business insights into overall part consumption, by job or product, can reduce inventory levels. The key for businesses to effectively manage their inventory is to ensure that they have the right parts on hand or have visibility of nearby stock on another van to improve ‘first time fix’ rates. This also helps determine which parts are fast moving or failing and allows a business to centrally stock the right levels.
Optimise service schedules
Optimising scheduling and on-the-fly routing are another necessity for a business that employs a high number of field service engineers and as a result handles shorter service calls. When routes are optimised this has great benefits in terms of headcount and fuel costs. Implementing on-the-fly scheduling engines allows businesses to react to real-world situations such as cancellations, urgent appointments, delays and traffic to ensure a high level of efficiency and customer satisfaction is maintained.
Where exactly in a value stream can field service help?
For businesses to achieve the true customer benefits that come with connected field service they need to know exactly where it can be integrated to add value to business operations. There are four main areas where its influence is most effective:
1. Repair
If a machine is broken, a service technician makes a field visit to resolve the issue. The repair may be covered by warranty or incur charges because of the time and parts consumed, but this is where field service is advantageous and cost-effective – problems are fixed at the first time of asking, in real-time. A business that can provide a service that is timely, when the customer requires it, is key to gain a competitive advantage.
2. Maintenance
Moving beyond customer expectations of timely maintenance and repairs, businesses can now shift towards offering maintenance on a predictive basis. Using smart IoT devices, machines can automatically inform both the business and customer that a malfunction is likely to occur and that maintenance is required. This is an especially valuable aspect of field service because breakdowns and operational downtime are reduced.
3. Installation and commissioning
This applies to products that need to be installed by a service technician. Once a product has been installed, the technician will run several tests to ensure the machine or device is fully operational –the commissioning process. For businesses operating in the B2C world, flexibility at this stage is especially important because customer expectations have changed – they expect to be able to purchase a product and schedule its installation at a convenient time for them in one, unified transaction.
4. Business consultation
A field service visit can also include a critical analysis of a business and its customer demands – it isn’t always a hands-on appointment with a machine or device. It is important that a business is connected in a feedback loop with its customers to better understand their requirements and further enhance future business operations – particularly because customer satisfaction is now considered the most important aspect of field service ahead of price and quality.
Flawless field service: A strategic enabler for customer satisfaction
To achieve an end-to-end, unified customer experience, an effective field service solution spanning repair, maintenance and installation and commissioning should be implemented.
During all stages of the field service customer journey, businesses need to make sure their field service engineers are empowered and able to identify and execute sales opportunities, as well as having the ability to capture customer feedback.
This is how businesses can consistently benefit from the revenue potential that comes with integrated field service, while ensuring customers are satisfied because they are getting the experience they have come to expect.
Chris Mean is COO at Columbus UK.
Aug 13, 2019 • Features • Management • Ageing Workforce Crisis • workforce management • field service • Industry 4.0 • localz • Customer Satisfaction and Expectations
Field Service in the early decades of the twenty-first century has become an increasingly tricky beast to tame. Customer expectations are hurtling forward at breakneck speed to what some companies view as almost impossible standards to reach. The...
Field Service in the early decades of the twenty-first century has become an increasingly tricky beast to tame. Customer expectations are hurtling forward at breakneck speed to what some companies view as almost impossible standards to reach. The customer of today is not only better informed than ever before, but via the widespread amplification of social media, more powerful also.
In this series, run in partnership with Localz, we look at precisely what these new challenges of modern field service are and how your organisation can adapt and thrive in this brave new world...
Aug 12, 2019 • Features • Advanced Services Group • aston business school • future of field service • Platforms • Servitization • eco-systems
New research from the Advanced Services Group at Aston Business School suggests that a focus on product as a platform and a clear understanding of the operational network can positively influence servitization efforts. Dr Kawaljeet Kapoor explains…
New research from the Advanced Services Group at Aston Business School suggests that a focus on product as a platform and a clear understanding of the operational network can positively influence servitization efforts. Dr Kawaljeet Kapoor explains…
Servitization is widely recognised in the manufacturing sector today for its potential to bring about sustainable business growth and realise benefit from society’s appetite for services. Servitization is generally understood as the process by which a manufacturing company transforms its business model and capabilities to compete through a combination of products and services, rather than just products alone. For manufacturers, achieving their servitization goals means going beyond their product-driven internal capabilities.
It requires them to move away from the traditional linear supply chain models, in favour of collaborative working with external partners, which can evolve into a network with multiple, interacting actors.In this setting, which we would call an ecosystem, platforms enable increased interactions and transactions between the multiple actors and partners, which were not necessarily a part of the initial supply chains.
There is a plethora of companies that successfully utilise platform strategies. Intel and Windows, for example, bring together third party companies and developers to create innovation platforms.
Others, such as Airbnb and Amazon, allow producers, consumers and organisations to find each other and enable a multitude of transactions with each other. Clearly, businesses across a range of industries are investing in platforms. However, examples from the manufacturing sector are far and few between.
An exploratory research project by The Advanced Services Group at Aston Business School, is looking to change that. The project focuses on understanding the servitization process in a manufacturing setting and investigates the influence platforms have on a manufacturer’s journey to servitization.
What do we mean by platform and ecosystem?
Simply put, a platform can be a product, service, or technology owned by a company that external innovators use as a foundation to develop new products, services or technologies. These newly developed offerings always complement a platform owner’s original offerings, which is why we call such offerings, the complements. By the same logic, we call the companies or people who develop such complements, the complementors.
For instance, on a Fire TV platform, Amazon is the platform owner, and the app developers are the complementors, who use the Fire TV stick as a foundation to develop a multitude of apps for the end-users. A platform, its complements and all network actors put together, is what we call a platform ecosystem. In a platform-based ecosystem, you can typically expect to see a platform owner, the complementors, and the end users as its key actors.
"Modularity makes enabling varied functionalities very simple. In a manufacturing setting, product offerings can be modularized and broken down into services associated with product spares, preventive maintenance, fleet management, and so on..."
These platforms can have varying architectural types. They can be of internal – closed nature, such as Makita’s cordless power tool platform, where all tools can only be powered by a battery developed in-house. They can be across a supply chain – partially open, examples of which can be found across all assembly industries. Both of these types aim at increasing offering variety without complicating internal structures.
They can also be external – open for all external innovators in an industry-level ecosystem setting. An example of this is IBM’s collaboration with Intel and Microsoft in the 1980s, which led to the development of the IBM PC, an open platform used by complementors to develop compatible software, such as Word and others.Irrespective of the types, these architectures are increasingly modular in nature, which means that platforms increase flexibility and reusability.
Complicated production processes are broken into smaller parts or modules that deliver an intended technological function in the overall system, and by doing so, enhance the core functionality of a platform. For example, Google Chrome is a search engine, and its extensions are ‘modules’ developed to offer extended functionalities like a calendar, dictionary or storage drive. In other words, when modules connect to a platform, they add new functionalities to include extended utilities and features.
Therefore, modularity makes enabling varied functionalities very simple. In a manufacturing setting, product offerings can be modularized and broken down into services associated with product spares, preventive maintenance, fleet management, and so on. In essence, manufacturing firms can configure multiple offerings using different combinations of the same modules.
Why the ecosystem view is important
The concept of platforms has been a topic of discussion for more than two decades. Both research and practice have shared fundamental insights on platform dynamics and how they work. But the focus on platforms alone is not enough – the ecosystem in which the platform operates is just as important. Understanding the ecosystem, identifying the different actors and understanding your own role will ultimately determine the platform’s success.
Taking a full view of the ecosystem will account for all actors involved and help manufacturers understand which actors can add the most value to the platform and deliver the service-led offerings intended in the first place - beyond.
Platforms in servitizing companies
The word platform is often associated with all things digital, such as a software component or an application. In fact, platforms are more than just a piece of software, particularly in a servitization-based setting. It would not be too far fetched to suggest that if a manufacturer is acting as a platform leader, then their platform will essentially be their ‘product’.
As they have ownership of the product, it is their decision if and how much of the product and/or its specifications can be shared with complementors to produce novel offerings. Let’s take Trucknology, MAN’s fleet management solution, as an example here. Looking for solutions to better manage fuel costs and truck uptime - their customers’ main pain points - commercial truck manufacturer MAN partnered with telematics company Microlise.
"Technology is only one of the many components that go into building an ecosystem, and there are social and architectural aspects that are key and deserve due recognition..."
Together, Microlise and MAN produced a rating system across a range of driver characteristics, such as harsh braking and harsh cornering. The result was the Microlise Tracking Unit (MTU3), which was installed in MAN trucks to feed back driver and vehicle performance data. Customers can now view driver reports, which help to better manage drivers and inform driver training. Drivers can also access the reports to assess their own performance and improve their skills based on accurate data.In this example, MAN represents the platform owner and Microlise represents the complementor, i.e. the external innovator.
The Microlise Tracking Unit is the complement, and because it can only be of value once installed onto the MAN truck, the truck as MAN’s original product offering has become the platform. Successful examples like MAN are evidence that in manufacturing, collaborating with an extended network of actors can derive benefits of maximum value from investments, as well as lasting relationships with the customer even after product sales.
Research on Platforms and Ecosystems
Yet, not many manufacturers have adopted this approach in their servitization strategies. Whilst the terms platform ecosystems, platform thinking, and platform approach are increasingly used in business and manufacturing, they are often used to describe technology alone. Our research suggests, however, that technology is only one of the many components that go into building an ecosystem, and there are social and architectural aspects that are key and deserve due recognition.
The aim of this research project is to explain how platform ecosystems influence manufacturers developing servitization-based offerings. The project is based on interviews with manufacturing companies on their way towards servitization. A key outcome of this research will be a guide to help servitizing firms position themselves across the different roles (platform leader, complementors, etc.), map dominant players and potential partners, in order to use their network dynamics strategically to pursue collaborative innovation.
Dr Kawaljeet Kapoor is a Research Fellow at The Advanced Services Group at Aston Business School.
Aug 08, 2019 • Features • Management • Jann Van Veen • moreMomentum
Regular contributor to this magazine, moreMomentum’s Founder and Director Jan Van Veen continues to urge firms to move out of their comfort zone in order to achieve real innovative change. Mark Glover picks some key points from Jan’s recent...
Regular contributor to this magazine, moreMomentum’s Founder and Director Jan Van Veen continues to urge firms to move out of their comfort zone in order to achieve real innovative change. Mark Glover picks some key points from Jan’s recent appearance as a guest on The Field Service Podcast.
The benefits of servitization and digitalisation continues to fill content in podcasts, conferences and academic papers. Indeed, much of Field Service News’ pages is dedicated to these two phenonium and how the service industry should embrace both.
However, it takes a certain amount of courage for firms to break free from their traditional business-model, which might well have served them perfectly well over the years, in order to undertake a strategy which demands a long-period away from the comfort zone.
I hosted the Field Service Podcast where Jan Van Veen, Director and Co-Founder of Consulting and Training company moreMomentum was a guest. Jan continues to work closely with manufacturers, encouraging business innovation and change in their make-up and I began the podcast by suggesting to Jan that some manufacturers are reluctant to make changes in their set-up; reluctant to innovate. “I think it’s more about making sure that everybody is happy,” he responds. “That everybody has the same sense of direction of what needs to happen, and then also to make it happen. I think this is the biggest challenge.”
The comfort zone here is ‘business as usual’. Firms, Jan believes, can see the advantages of servitization and digitalization as a release from the pressure of performance but they are struggling to make the process happen, or the rate of change is too slow.
“In general, what we see is that change is not growing rapidly enough in business,” Jan says. “There is more and more of doing the same, of doing business as usual which does incrementally improve business offerings, products and services etc., which is all good but that doesn’t take them to the future; that doesn’t help them reap the benefits of digitalization and servitization.
Jan identifies the comfort zone as something that manufacturers have been doing – albeit successfully – for many years: improving reliability and preventing disruption through a focus on asset uptime and product-related services. It’s a rut that could potentially leave firms lagging behind competitors, competition that could even come from their own customers as they become more digital savvy.
“I think that’s the main concern here,” Jan warns. “Digitalization is becoming more and more ingrained into everything a business does. We are seeing clients of manufacturers becoming more digital in their operations and therefore start to think about other solutions that can improve their own operations. The questions become about the role of the manufacturer in all this.”
It’s an interesting point and one that challenges the traditional notion role of a manufacturer.
Should they stick to the traditional product-related services offering or attempt to get closer to the business processes of their clients and pursue a more operational-oriented approach achieved through committed servitization and digitalization adoption? Jan, of course, encourages the latter, but admits the difficulties it poses, particularly when it comes to altering a rigid business-model, which involves risk and requires cultural buy-in.
“There’s a bigger bet involved,” he says. “We have to seriously re-invest in new capabilities, digital capabilities, new competencies, new operations and processes. It becomes about political decision making. Reframing and changing the business logic is something which any kind of business finds very difficult.”
Reframing and changing business logic, as Jan says, can be extremely challenging. Firms are reluctant to alter a process that may not be flourishing but is working. Tinkering with a framework does indeed carry risk where the fallout could be extremely damaging. However, most firms are aware there needs to be some type of change and innovation in order to improve processes, services and products. There is a range of innovation, ranging from short term improvements to disruptive radical change and it’s the most forwardthinking companies that embrace this entire spectrum that ultimately succeed.
"Firms are reluctant to alter a process that may not be flourishing but is working..."
“They play the game on each type of innovation at the same time and are therefore working on performance for today, tomorrow and the day after,” Jan explains. “It means that every type of innovation and change has different challenges and pitfall and therefore requires different strategies and techniques. If we are not aware of that we will find ourselves applying the wrong approaches, which may work for one type of innovation, but not another. We then fail.”
The key in the process is business logic. But what exactly is it? How can we define it? Let’s strip back one of the basics of enterprise. Every industry or business has a prevailing set of thinking patterns or knowledge about their customer’s needs: yearly performance; information about competitors; world trends which we then, as a business, make appropriate strategic decisions from. It essentially defines how businesses act, decide, change and learn.
The benefits of servitization and digitalisation continues to fill content in podcasts, conferences and academic papers. Indeed, much of Field Service News’ pages is dedicated to these two phenonium and how the service industry should embrace both.
However, it takes a certain amount of courage for firms to break free from their traditional business-model, which might well have served them perfectly well over the years, in order to undertake a strategy which demands a long-period away from the comfort zone.
I hosted the Field Service Podcast where Jan Van Veen, Director and Co-Founder of Consulting and Training company moreMomentum was a guest. Jan continues to work closely with manufacturers, encouraging business innovation and change in their make-up and I began the podcast by suggesting to Jan that some manufacturers are reluctant to make changes in their set-up; reluctant to innovate. “I think it’s more about making sure that everybody is happy,” he responds. “That everybody has the same sense of direction of what needs to happen, and then also to make it happen. I think this is the biggest challenge.”
The comfort zone here is ‘business as usual’. Firms, Jan believes, can see the advantages of servitization and digitalization as a release from the pressure of performance but they are struggling to make the process happen, or the rate of change is too slow.
“In general, what we see is that change is not growing rapidly enough in business,” Jan says. “There is more and more of doing the same, of doing business as usual which does incrementally improve business offerings, products and services etc., which is all good but that doesn’t take them to the future; that doesn’t help them reap the benefits of digitalization and servitization.
Jan identifies the comfort zone as something that manufacturers have been doing – albeit successfully – for many years: improving reliability and preventing disruption through a focus on asset uptime and product-related services. It’s a rut that could potentially leave firms lagging behind competitors, competition that could even come from their own customers as they become more digital savvy.
“I think that’s the main concern here,” Jan warns. “Digitalization is becoming more and more ingrained into everything a business does. We are seeing clients of manufacturers becoming more digital in their operations and therefore start to think about other solutions that can improve their own operations. The questions become about the role of the manufacturer in all this.”
It’s an interesting point and one that challenges the traditional notion role of a manufacturer.
Should they stick to the traditional product-related services offering or attempt to get closer to the business processes of their clients and pursue a more operational-oriented approach achieved through committed servitization and digitalization adoption? Jan, of course, encourages the latter, but admits the difficulties it poses, particularly when it comes to altering a rigid business-model, which involves risk and requires cultural buy-in.
“There’s a bigger bet involved,” he says. “We have to seriously re-invest in new capabilities, digital capabilities, new competencies, new operations and processes. It becomes about political decision making. Reframing and changing the business logic is something which any kind of business finds very difficult.”
Reframing and changing business logic, as Jan says, can be extremely challenging. Firms are reluctant to alter a process that may not be flourishing but is working. Tinkering with a framework does indeed carry risk where the fallout could be extremely damaging. However, most firms are aware there needs to be some type of change and innovation in order to improve processes, services and products. There is a range of innovation, ranging from short term improvements to disruptive radical change and it’s the most forwardthinking companies that embrace this entire spectrum that ultimately succeed.
"Firms are reluctant to alter a process that may not be flourishing but is working..."
“They play the game on each type of innovation at the same time and are therefore working on performance for today, tomorrow and the day after,” Jan explains. “It means that every type of innovation and change has different challenges and pitfall and therefore requires different strategies and techniques. If we are not aware of that we will find ourselves applying the wrong approaches, which may work for one type of innovation, but not another. We then fail.”
The key in the process is business logic. But what exactly is it? How can we define it? Let’s strip back one of the basics of enterprise. Every industry or business has a prevailing set of thinking patterns or knowledge about their customer’s needs: yearly performance; information about competitors; world trends which we then, as a business, make appropriate strategic decisions from. It essentially defines how businesses act, decide, change and learn.
With this in mind and in order to helps businesses observe their own rationale for change, Jan has developed a Hybrid Innovation Matrix. Relatively small, incremental changes, shown in the bottom left of the matrix represent what most businesses are doing. These take place during the day which includes customer feedback, marketing and R&D. “I don’t think this is the real challenge here,” Jan tells me. “Most of the companies have that right. It becomes more challenging when we move up the left column to the bigger changes within the current business logic, such as applying new predictive technology in our maintenance and services. This includes political decision making and serious change management if you want to launch that new technology.”
Yet, it’s the red side of the matrix – the new business logic - splintered by disruption, that is the most challenging but most rewarding. The bottom right is where firms, by thinking about their current business model can start to extend and develop new knowledge and potentially reconfigure their business model. “Here, we are challenged by re-thinking, reframing, and, ultimately,” he says, “developing new models,” Jan said.
More generally, in the top right, darker red quadrant is where new solutions and markets are being created. Usually through a cluster of companies focusing on one area, for example, digital becoming more common in healthcare or the emergence of renewable energy. Here, Jan predicts the incubation of further ideas and disruptions. “We will see different kinds of developments going on and we still don’t know which one is going to emerge or be dominant, but one thing is for sure, in the next five to ten years, something serious will happen and change here.”
But how can companies use the tool to establish their own potential for change, or more specifically, make sure they’re avoiding ‘business as usual’? The key is ensuring any large-scale changes (top left of the matrix) such as a new software system, does not come at the cost of new business innovation that is incubating in the right-hand side of the matrix. “If that happens,” Jan says, “then you will see that every initiative in the right column will be sacrificed for something which has a shorter-term result in the left column, and then you’re really stuck in business as usual.”
Jan is passionate about change management and innovation and it was obvious during the podcast how much of a difference this matrix and other tools can make to a manufacturer’s outlook. He’s the first to admit that it’s not an easy process but is adamant about the advantages it can bring, an attitude affirmed when I ask what inspires him to do what he does. “I believe that it’s all about empowering and enabling everybody in an organisation to be eager and passionate about performing, learning, developing and growing; as a person and therefore as a business.
“It is all about people making it happen, and I’m a firm believer that people do drive change and want to change, as long as there’s a good reason and not too many obstacles. Therefore, we have to give them good reasons and avoid all the obstacles, and then,” he says, “great things can happen.”
More generally, in the top right, darker red quadrant is where new solutions and markets are being created. Usually through a cluster of companies focusing on one area, for example, digital becoming more common in healthcare or the emergence of renewable energy. Here, Jan predicts the incubation of further ideas and disruptions. “We will see different kinds of developments going on and we still don’t know which one is going to emerge or be dominant, but one thing is for sure, in the next five to ten years, something serious will happen and change here.”
But how can companies use the tool to establish their own potential for change, or more specifically, make sure they’re avoiding ‘business as usual’? The key is ensuring any large-scale changes (top left of the matrix) such as a new software system, does not come at the cost of new business innovation that is incubating in the right-hand side of the matrix. “If that happens,” Jan says, “then you will see that every initiative in the right column will be sacrificed for something which has a shorter-term result in the left column, and then you’re really stuck in business as usual.”
Jan is passionate about change management and innovation and it was obvious during the podcast how much of a difference this matrix and other tools can make to a manufacturer’s outlook. He’s the first to admit that it’s not an easy process but is adamant about the advantages it can bring, an attitude affirmed when I ask what inspires him to do what he does. “I believe that it’s all about empowering and enabling everybody in an organisation to be eager and passionate about performing, learning, developing and growing; as a person and therefore as a business.
“It is all about people making it happen, and I’m a firm believer that people do drive change and want to change, as long as there’s a good reason and not too many obstacles. Therefore, we have to give them good reasons and avoid all the obstacles, and then,” he says, “great things can happen.”
Aug 07, 2019 • Features • Augmented Reality • Future of FIeld Service • Workforce • IFS • skills • The Big Discussion • OverIT • Librestream
In the Big Discussion we bring together a panel of industry experts and focus on one key topic within the field service sector. In the final part of our forum on Augmented Reality, contributors including Stephen Jeffs-Watts, Senior Advisor Service...
In the Big Discussion we bring together a panel of industry experts and focus on one key topic within the field service sector.
In the final part of our forum on Augmented Reality, contributors including Stephen Jeffs-Watts, Senior Advisor Service Management, IFS, Francesco Benvenuto Product Marketing Manager, SPACE1 by OverIT and John Bishop, President, Librestream offer their advice on what service professionals should ask an AR vendor when considering an AR solution.
What is the one key question you would advise a field service director to ask an Augmented Reality vendor when potentially seeking a solution to implement within their business?
JOHN BISHOP, PRESIDENT, LIBRESTREAM
There will be many questions the field service director will be asked by colleagues, customers, or supply chain partners. Addressing the questions upfront is very important and the AR vendors should all be able to answer them. For example, you need the answer to questions like ‘how do you handle privacy issues’? Or, more basic than that, ‘when I move beyond the pilot phase, will IT let me deploy?’
We felt it was important to identify the common challenges we’ve experienced with customers during deployment. We worked with customers and analysts to develop the Remote Expert Industry Guide.
Our longevity in the AR space has made it clear that sharing video or capturing data digitally can be a touchy subject, especially when end customers are involved. Field service directors and their colleagues need reassurance that the vendor they choose can provide the solution.
FRANCESCO BENVENUTO, PRODUCT MARKETING MANAGER, SPACE1 BY OVERIT
I would like them to ask: “Do you provide an AR App or an Augmented Reality product?”
An Augmented Reality product, such as SPACE1, is a no-code authoring platform, which allows non-technical users to create intuitive and visual work instructions, making them virtually available to any technician. Furthermore, it enables collaboration for training and maintenance purposes.
Any company, looking into AR, should consider only products offering crossplatform support for handhelds, desktop and AR wearables where both realtime remote assistance and access to pre-built AR work instructions can be
served simultaneously, in one single application.
Moreover, decision-makers should select only solutions providing secure data handling in compliance with IT requirements and online/offline capabilities which make the information technicians need available, regardless of any potential connection issue.
Last but not least, features to capture images, annotations and screenshots, add documentation and record live support sessions under the expert guidance (both verbal and supported by visual annotations) are particularly useful in view of future use and sharing.
STEPHEN JEFFS-WATTS, PRODUCT MANAGER, SERVICE MANAGEMENT, IFS
“What areas of my service delivery organisation will be affected by deploying AR technology and how do I manage change effectively to ensure successful adoption of your product?”
You can read the first instalment of this Big Discussion here, the second here and the third part here.
In the final part of our forum on Augmented Reality, contributors including Stephen Jeffs-Watts, Senior Advisor Service Management, IFS, Francesco Benvenuto Product Marketing Manager, SPACE1 by OverIT and John Bishop, President, Librestream offer their advice on what service professionals should ask an AR vendor when considering an AR solution.
What is the one key question you would advise a field service director to ask an Augmented Reality vendor when potentially seeking a solution to implement within their business?
JOHN BISHOP, PRESIDENT, LIBRESTREAM
There will be many questions the field service director will be asked by colleagues, customers, or supply chain partners. Addressing the questions upfront is very important and the AR vendors should all be able to answer them. For example, you need the answer to questions like ‘how do you handle privacy issues’? Or, more basic than that, ‘when I move beyond the pilot phase, will IT let me deploy?’
We felt it was important to identify the common challenges we’ve experienced with customers during deployment. We worked with customers and analysts to develop the Remote Expert Industry Guide.
Our longevity in the AR space has made it clear that sharing video or capturing data digitally can be a touchy subject, especially when end customers are involved. Field service directors and their colleagues need reassurance that the vendor they choose can provide the solution.
FRANCESCO BENVENUTO, PRODUCT MARKETING MANAGER, SPACE1 BY OVERIT
I would like them to ask: “Do you provide an AR App or an Augmented Reality product?”
An Augmented Reality product, such as SPACE1, is a no-code authoring platform, which allows non-technical users to create intuitive and visual work instructions, making them virtually available to any technician. Furthermore, it enables collaboration for training and maintenance purposes.
Any company, looking into AR, should consider only products offering crossplatform support for handhelds, desktop and AR wearables where both realtime remote assistance and access to pre-built AR work instructions can be
served simultaneously, in one single application.
Moreover, decision-makers should select only solutions providing secure data handling in compliance with IT requirements and online/offline capabilities which make the information technicians need available, regardless of any potential connection issue.
Last but not least, features to capture images, annotations and screenshots, add documentation and record live support sessions under the expert guidance (both verbal and supported by visual annotations) are particularly useful in view of future use and sharing.
STEPHEN JEFFS-WATTS, PRODUCT MANAGER, SERVICE MANAGEMENT, IFS
“What areas of my service delivery organisation will be affected by deploying AR technology and how do I manage change effectively to ensure successful adoption of your product?”
You can read the first instalment of this Big Discussion here, the second here and the third part here.
Aug 06, 2019 • Features • Nick Frank • Si2 partners • Trusted Advisor
The Trusted Advisor mindset is not only a core to service technicians, it is also fundamental to those that sell services and integrated solutions. Nick Frank explains why...
The Trusted Advisor mindset is not only a core to service technicians, it is also fundamental to those that sell services and integrated solutions. Nick Frank explains why...
Many people perceive that the Trusted Advisor is a mindset for companies to leverage technician relationships to deliver “more” value to customers. Typically, the types of behaviours these service leaders want to encourage are:
• Listening to customers about their challenges and desires • Working together with their customer to co-develop new solutions and ways of working;
• Creating trust by DOING what they SAY, and SAYING what they DO • A solution focused approach which moves customers nearer to their goal(s) at every interaction:
What many do not appreciate is that it is also an essential mindset for sales people of product-service solutions to be more effective in the selling processes.
Research by RAIN group studied 700 business-to-business purchases made across industries by buyers who represented a total of $3.1 billion in annual purchasing power. They identified a number of factors that separated the winners from those in second place. The most important was the salesperson’s ability to bring new ideas and perspectives to the table.
What was really interesting is that if we look at the top 10 factors they listed, nine are covered by the Trusted Advisor mindset. And it is really a mindset and not skills we are talking about. How we THINK influences very much what we SAY and what we DO. The right mindset helps us make a habit of doing and saying the things that build this special thing we call trust.
As René Brown, a well know researcher in the area of trust observes, “Trust is built in many moments”. This probably explains why in the last 10 years we have seen technology companies re-organising and re-inventing their sales teams as customer successes organisations.
At a recent Service Community meeting at Oracle, we heard how Software-as-a-Service business models have transformed their market such that customers can switch products more easily. No longer is selling a product so critical to their business, but more important is retaining customer loyalty, so that every month they renew their service contracts.
Oracle’s focus has moved away from closing product deals, to Customer Success Managers ensuring their products and services are delivering more value for their customers. In the Industrial and B2C sector, we now see the same philosophy being introduced. For example Husky Injection Molding Systems will be talking about how they have transformed their service team into a Customer Success Organisation at the next Service Community Event being held at Atlas Copco on the 16th October 2019.
"How we THINK influences very much what we SAY and what we DO..."
In businesses such as medical and high-end research instrumentation or complex capital equipment, the very high level of technical and application expertise is a key differentiator that makes these companies leaders. These are the companies that have
already embedded the Trusted Advisor Mindset into their Service Technicians so that they can talk to customers and add more value. Increasingly we see these same companies taking the same concepts and embedding them into their own sales processes whether that be Miller Heiman, Solution Selling or more home grown methodologies.
They do this because they recognise that a sales process in itself does not develop trust with the customer. They see that these well qualified technical sales people find it challenging to have engaging conversations with their customers such that they are able to collaborate to develop valuable solutions. They want these specialists to develop the customer communication skills that move the customer effortlessly towards making decisions and closing deals.
These companies put in place programmes that develop a Trusted Advisor mindset, the language and the tools that complement the company’s sales process in order to make them more successful. Essentially this is improving on their active listening and using solution focused language that fosters collaboration and working on personal authenticity that drives the THINK, SAY, DO cycle.
These programmes are not a one-off event but require sales leaders to act as role models and mentors. The companies that understand this process, often develop sales guides that provide useful tips and tangible examples of how to sell value. Regular refresh and practice is required and the whole process might take a period of one to two years. Embedding the Trusted Advisor mindset into your business is a change journey which will bring value in terms of sales and margin.
If you are interested in enhancing you service sales team with the Trusted Advisor mindset, then contact Nick at nick.frank@si2partners.com.
Nick Frank is Managing Partner at Si2 Partners.
Many people perceive that the Trusted Advisor is a mindset for companies to leverage technician relationships to deliver “more” value to customers. Typically, the types of behaviours these service leaders want to encourage are:
• Listening to customers about their challenges and desires • Working together with their customer to co-develop new solutions and ways of working;
• Creating trust by DOING what they SAY, and SAYING what they DO • A solution focused approach which moves customers nearer to their goal(s) at every interaction:
What many do not appreciate is that it is also an essential mindset for sales people of product-service solutions to be more effective in the selling processes.
Research by RAIN group studied 700 business-to-business purchases made across industries by buyers who represented a total of $3.1 billion in annual purchasing power. They identified a number of factors that separated the winners from those in second place. The most important was the salesperson’s ability to bring new ideas and perspectives to the table.
What was really interesting is that if we look at the top 10 factors they listed, nine are covered by the Trusted Advisor mindset. And it is really a mindset and not skills we are talking about. How we THINK influences very much what we SAY and what we DO. The right mindset helps us make a habit of doing and saying the things that build this special thing we call trust.
As René Brown, a well know researcher in the area of trust observes, “Trust is built in many moments”. This probably explains why in the last 10 years we have seen technology companies re-organising and re-inventing their sales teams as customer successes organisations.
At a recent Service Community meeting at Oracle, we heard how Software-as-a-Service business models have transformed their market such that customers can switch products more easily. No longer is selling a product so critical to their business, but more important is retaining customer loyalty, so that every month they renew their service contracts.
Oracle’s focus has moved away from closing product deals, to Customer Success Managers ensuring their products and services are delivering more value for their customers. In the Industrial and B2C sector, we now see the same philosophy being introduced. For example Husky Injection Molding Systems will be talking about how they have transformed their service team into a Customer Success Organisation at the next Service Community Event being held at Atlas Copco on the 16th October 2019.
"How we THINK influences very much what we SAY and what we DO..."
In businesses such as medical and high-end research instrumentation or complex capital equipment, the very high level of technical and application expertise is a key differentiator that makes these companies leaders. These are the companies that have
already embedded the Trusted Advisor Mindset into their Service Technicians so that they can talk to customers and add more value. Increasingly we see these same companies taking the same concepts and embedding them into their own sales processes whether that be Miller Heiman, Solution Selling or more home grown methodologies.
They do this because they recognise that a sales process in itself does not develop trust with the customer. They see that these well qualified technical sales people find it challenging to have engaging conversations with their customers such that they are able to collaborate to develop valuable solutions. They want these specialists to develop the customer communication skills that move the customer effortlessly towards making decisions and closing deals.
These companies put in place programmes that develop a Trusted Advisor mindset, the language and the tools that complement the company’s sales process in order to make them more successful. Essentially this is improving on their active listening and using solution focused language that fosters collaboration and working on personal authenticity that drives the THINK, SAY, DO cycle.
These programmes are not a one-off event but require sales leaders to act as role models and mentors. The companies that understand this process, often develop sales guides that provide useful tips and tangible examples of how to sell value. Regular refresh and practice is required and the whole process might take a period of one to two years. Embedding the Trusted Advisor mindset into your business is a change journey which will bring value in terms of sales and margin.
If you are interested in enhancing you service sales team with the Trusted Advisor mindset, then contact Nick at nick.frank@si2partners.com.
Nick Frank is Managing Partner at Si2 Partners.
Aug 05, 2019 • Features • Software & Apps • future of field service • Digital Transformation • IFS
At the Field Service USA conference in Palm Springs, California this year, digital transformation continued to dominate discussions. Marne Martin of IFS and our own Kris Oldland were both on the speaking roster so they caught up over a coffee to...
At the Field Service USA conference in Palm Springs, California this year, digital transformation continued to dominate discussions. Marne Martin of IFS and our own Kris Oldland were both on the speaking roster so they caught up over a coffee to compare notes…
As someone who attends many field service conferences across the globe, there are some speakers within our industry whom I know will give a presentation that always gives me a spark of an idea for a new article or feature and as such, I always make a beeline for their sessions when my schedule allows.
One such speaker is Marne Martin, President of Service Management for IFS and CEO of Work Wave. Martin has an uncanny knack of talking about subjects that are right on the pulse of the audience. She always manages to address the concerns and present solutions that resonate with the room, but is also able to bring a light sense of levity and fun to her sessions as well – and she usually has at least one brilliantly memorable line that gets stuck in your mind for a long time.
This time around it was the fantastic throw away one liner: “You don’t want to bring a Volkswagen to a Formula 1 race.”
It was a pithy reminder that the stakes in field service have been raised in recent times. The competition is greater than ever as industry after industry adapts to the disruptive influences of innovative companies like Uber, Deliveroo and AirBnB who are not just revolutionising their sectors but those far beyond their remits by raising expectations of what seamless customer experience looks like in the age of the app.
Martin’s discussion weaved through both the digital transformation and also the cultural transformation that many field service organisations are going through, with the majority of those yet to do so now seeing such change looming on their horizons also. She touched on crucial issues being widely felt, such as talent shortages and how service organisations can get value from the technology that the pressure of increasing customer demand insists they implement.
However, the critical point she touched on was the importance of understanding and clearly defining service strategy. It is a point that I have made both in recent presentations of my own as well as in these pages. Without a properly defined service strategy, without knowing ‘who’ your organisation ‘wants’ to be, any such programs that seek to implement digital transformation will be at best ill formed and at worst an expensive failure that could really set a service organisation back.
I’ve expressed the opinion that digital transformation, has to be an ongoing process, not a one-off project. A journey, not a destination. As such, a clearly defined service strategy needs to be in place if you want to stay on the right path.
So when I sat down with Marne to grab a quick coffee away from the melee of what was a jam-packed conference, with hundreds of delegates and vendors buzzing around – this was the first area I wanted to touch base on and swap notes about.
“Think about how you empower the field, the mobile workflow enhancements, how you enable the technician to cross-sell, upsell, to close out tickets, all of these items that drive higher customer satisfaction. These are all fundamental to what makes service matter.
They all drive profitability for the service organisation, growth in revenue and customer satisfaction,” she mused as I outlined my thinking to her. “It is just that today we have more tools with which we’re able to achieve this and that allows us to achieve it at a faster more efficient pace - which is, of course, what customers want. I think it all fits together in a way that we, as a sector, are able to bring these fundamentals into the new digital era.
“It only becomes a problem when companies begin thinking about digitalisation as something disconnected from these fundamentals.” This line of thought echoes my thinking on the topic as well. However, there is an additional layer of complexity to the discussion that I have also been considering of late.
Perhaps the biggest of all shifts in the field service sector over the last decade has been the move firstly from cost centre to profit centre and now what many see as a natural extension of that into a world of servitization. In one sense, it feels as though the field service sector has never witnessed such a significant paradigm shift as we are seeing today as companies move away from the traditional break-fix approach to one of outcome-based services.
"Digital transformation, has to be an ongoing process, not a one-off project..."
In that sense, we’re going through a complete revolution across the sector. However, I’m also of a firm belief (and have spoken to many service directors around the world who agree) that the essential thing in terms of delivering service excellence is not to lose sight of the core tenets of what good service looks and feels like, and at the heart of that remains some long-established foundational positions around ensuring an ‘Outside-In’ perspective on the service business.
Making sure you understand the customer and how they want to interact with your organisation, and then making sure processes are designed around that understanding is not a particularly radical position, but rather a well established best-practice.
The result is a dichotomy in service strategy between embracing the new while holding on to the historical precedents that underpin service excellence. It is not an impossible equation to balance, but it is one that should be considered deeply when approaching the current mega-trend of digital transformation.
This balance between yesterday’s, today’s and tomorrow’s worlds was another area that Martin touched upon in her presentation where she used the phrase ‘Challenge the Present, Lead the Future’ and it was something I wanted to dig deeper into when we spoke. “By challenge the present I mean that field service organisations need to assess where their basics are weak, flawed or broken, and to assess how these can be improved to drive a future in which they are not,” she explained.
“If you look at all the key technology trends that are out there, we’re bringing every single one into service. Of course, some are coming faster than others as you would expect, but they all have applicability in service. However, on the other hand, the building blocks of what great service is, whom you deliver service to, and what you deliver service with remain the same.
“It’s the interplay of the fundamentals of service, the brand, the asset, the technician, and so on and how we drive the efficiencies and delivery of these forwards, with these new technology trends, into a new paradigm.
“To get to servitization or outcome based service, you still need to understand maintenance and break-fix and up times and asset performance. It’s not as if our understanding of all these core things goes away; it just has to be heightened and put together into an outcomes-based proposition. But rather than just deciding what is going to be our approach to reducing technician travel time or what is going to be our overtime strategy, companies are now looking at everything holistically to be able to asses the outcome they are delivering to the customer, how they are pricing that outcome and what is the margin on that outcome.”
Again I agree with Martin’s take on things here. The phrase that comes to mind is evolution, not revolution. I feel this is an apt mantra for many service organisations to adopt in these times of rapid technological and societal change. While talk of impending industry revolution may grab headlines, the truth is effective change is always iterative – and that very much holds true for field service organisations today.
Whether your organisation is on a journey to digitalisation or to servitization, remember it remains a journey, not a destination. Please drive carefully.
As someone who attends many field service conferences across the globe, there are some speakers within our industry whom I know will give a presentation that always gives me a spark of an idea for a new article or feature and as such, I always make a beeline for their sessions when my schedule allows.
One such speaker is Marne Martin, President of Service Management for IFS and CEO of Work Wave. Martin has an uncanny knack of talking about subjects that are right on the pulse of the audience. She always manages to address the concerns and present solutions that resonate with the room, but is also able to bring a light sense of levity and fun to her sessions as well – and she usually has at least one brilliantly memorable line that gets stuck in your mind for a long time.
This time around it was the fantastic throw away one liner: “You don’t want to bring a Volkswagen to a Formula 1 race.”
It was a pithy reminder that the stakes in field service have been raised in recent times. The competition is greater than ever as industry after industry adapts to the disruptive influences of innovative companies like Uber, Deliveroo and AirBnB who are not just revolutionising their sectors but those far beyond their remits by raising expectations of what seamless customer experience looks like in the age of the app.
Martin’s discussion weaved through both the digital transformation and also the cultural transformation that many field service organisations are going through, with the majority of those yet to do so now seeing such change looming on their horizons also. She touched on crucial issues being widely felt, such as talent shortages and how service organisations can get value from the technology that the pressure of increasing customer demand insists they implement.
However, the critical point she touched on was the importance of understanding and clearly defining service strategy. It is a point that I have made both in recent presentations of my own as well as in these pages. Without a properly defined service strategy, without knowing ‘who’ your organisation ‘wants’ to be, any such programs that seek to implement digital transformation will be at best ill formed and at worst an expensive failure that could really set a service organisation back.
I’ve expressed the opinion that digital transformation, has to be an ongoing process, not a one-off project. A journey, not a destination. As such, a clearly defined service strategy needs to be in place if you want to stay on the right path.
So when I sat down with Marne to grab a quick coffee away from the melee of what was a jam-packed conference, with hundreds of delegates and vendors buzzing around – this was the first area I wanted to touch base on and swap notes about.
“Think about how you empower the field, the mobile workflow enhancements, how you enable the technician to cross-sell, upsell, to close out tickets, all of these items that drive higher customer satisfaction. These are all fundamental to what makes service matter.
They all drive profitability for the service organisation, growth in revenue and customer satisfaction,” she mused as I outlined my thinking to her. “It is just that today we have more tools with which we’re able to achieve this and that allows us to achieve it at a faster more efficient pace - which is, of course, what customers want. I think it all fits together in a way that we, as a sector, are able to bring these fundamentals into the new digital era.
“It only becomes a problem when companies begin thinking about digitalisation as something disconnected from these fundamentals.” This line of thought echoes my thinking on the topic as well. However, there is an additional layer of complexity to the discussion that I have also been considering of late.
Perhaps the biggest of all shifts in the field service sector over the last decade has been the move firstly from cost centre to profit centre and now what many see as a natural extension of that into a world of servitization. In one sense, it feels as though the field service sector has never witnessed such a significant paradigm shift as we are seeing today as companies move away from the traditional break-fix approach to one of outcome-based services.
"Digital transformation, has to be an ongoing process, not a one-off project..."
In that sense, we’re going through a complete revolution across the sector. However, I’m also of a firm belief (and have spoken to many service directors around the world who agree) that the essential thing in terms of delivering service excellence is not to lose sight of the core tenets of what good service looks and feels like, and at the heart of that remains some long-established foundational positions around ensuring an ‘Outside-In’ perspective on the service business.
Making sure you understand the customer and how they want to interact with your organisation, and then making sure processes are designed around that understanding is not a particularly radical position, but rather a well established best-practice.
The result is a dichotomy in service strategy between embracing the new while holding on to the historical precedents that underpin service excellence. It is not an impossible equation to balance, but it is one that should be considered deeply when approaching the current mega-trend of digital transformation.
This balance between yesterday’s, today’s and tomorrow’s worlds was another area that Martin touched upon in her presentation where she used the phrase ‘Challenge the Present, Lead the Future’ and it was something I wanted to dig deeper into when we spoke. “By challenge the present I mean that field service organisations need to assess where their basics are weak, flawed or broken, and to assess how these can be improved to drive a future in which they are not,” she explained.
“If you look at all the key technology trends that are out there, we’re bringing every single one into service. Of course, some are coming faster than others as you would expect, but they all have applicability in service. However, on the other hand, the building blocks of what great service is, whom you deliver service to, and what you deliver service with remain the same.
“It’s the interplay of the fundamentals of service, the brand, the asset, the technician, and so on and how we drive the efficiencies and delivery of these forwards, with these new technology trends, into a new paradigm.
“To get to servitization or outcome based service, you still need to understand maintenance and break-fix and up times and asset performance. It’s not as if our understanding of all these core things goes away; it just has to be heightened and put together into an outcomes-based proposition. But rather than just deciding what is going to be our approach to reducing technician travel time or what is going to be our overtime strategy, companies are now looking at everything holistically to be able to asses the outcome they are delivering to the customer, how they are pricing that outcome and what is the margin on that outcome.”
Again I agree with Martin’s take on things here. The phrase that comes to mind is evolution, not revolution. I feel this is an apt mantra for many service organisations to adopt in these times of rapid technological and societal change. While talk of impending industry revolution may grab headlines, the truth is effective change is always iterative – and that very much holds true for field service organisations today.
Whether your organisation is on a journey to digitalisation or to servitization, remember it remains a journey, not a destination. Please drive carefully.
Field Service News is published by 1927 Media Ltd, an independent publisher whose sole focus is on the field service sector. As such our entire resources are focused on helping drive the field service sector forwards and aiming to best serve our industry through honest, incisive and innovative media coverage of the global field service sector.
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