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Jan Van Veen continues his latest exclusive Field Service News series on how companies can monetise their services with IoT as he turns his attention to something many companies struggle with - better articulating their value proposition...

Central question: How to monetise Services & IoT

Many manufacturers experience pressure on growth, revenue and margins.

Their products and services are being commoditised. Competition from lower-cost alternatives are arising. On the other hand, there are huge opportunities with new technologies, value propositions and business models.

One of the important trends is that value proposition and offerings become more data-driven and more service oriented. However, many manufacturers are product-driven businesses which do not fully appreciate the value service has for their customers and own business.

So, one of the central questions is: How to Monetise Services and IoT in order to Grow in a Disruptive World?

The capability to monetising service and IoT is mission-critical for sustainable performance and existence of manufacturing:

In a series of articles, we cover 3 critical steps which make the difference between success and failure in monetising services and IoT:

1. Solve bigger customer problems, which is all about creating significantly more value for customers.
2. Articulate the value
3. Build internal momentum for monetisation

Common mistakes

Too often we see that (new) services, solutions or features are promoted without connecting the dots to their bigger problems.

For example, a client of mine – a major equipment manufacturer – experienced the power of explicitly connecting the dots. They were launching the first version of a portal to serve DIY clients which had their own maintenance departments.

They initially presented the benefit of the portal with many online manuals (version 1 of the portal) as a way to save time every time a maintenance engineer of their client would need to find the right manual. It appeared to be tough to sell paid subscriptions for this portal.

Only when the manufacturer articulated their view of the key problems of their clients’ maintenance departments and how the portal would solve these problems, did the clients get really interested.

The dominant problems of the maintenance departments were not finding manuals, but the daily pressure to increase availability and uptime at shrinking budgets and that, that their engineers had slow learning curves due to low volume of certain problem-solving work.

"A portal which would evolve into a broad toolset for best practices, troubleshooting and maintenance management was considered a crucial asset..."

A portal which would evolve into a broad toolset for best practices, troubleshooting and maintenance management was considered a crucial asset.

Furthermore, we often see manufacturers thinking and talking about features and activities, instead of customer value. Clients only pay for the value they perceive, not for what you do.

A striking example were field service engineers of another client, who would spend a full day in pairs to install equipment which was already delivered a  couple of days before. A few days after installation, another colleague would visit the client for training and commissioning.

The two engineers would unpack all components and assemble the components, connect it to a couple of other devices from different brands which involved many integration issues, connect their equipment to the computer network – which involved loads of security and networking issues which the engineers had to solve with IT departments – which by nature tend to be reluctant.

And here is how they briefed their client when they started the job: “We are here to unbox the components, put the bits and pieces together and make sure everything is there, so the trainer is ready to go……”

Their client did not even know what kind of complex integration problems the engineers were solving. Actually, their client even wondered why his supplier did not have more mature and efficient processes to get the job done. And by no means are the engineers to blame for this.

Some practical solutions

You can easily start improving on these common mistakes:

Build a compelling story of your view of your customers' challenges, opportunities and problems, which is validated by (a segment of) your customers. Relate this as much as possible to strategic or crucial priorities of your clients.

• Include a view on how your clients could best pursue these opportunities and solve these problems. Don’t make this a big thing, just start with a first strawman version and let it grow in time.
• Link the characteristics and benefits of your solutions and services to the view of your customers.
• If possible, quantify the benefits in terms of the strategic or critical priorities.
• Ensure that your value story is well articulated in your messaging to (the specific segments of) your clients and is consistent across all touch points. This may involve some staff training..

The Benefit

Manufacturers which are better in articulating their value see that both customer-facing personnel and their clients better see the value, better appreciate the value and therefore also find it more logical pay for this value.

Hence, these manufacturers generate more new revenue streams with higher margins and differentiate more from their competition.

Give monetisation of services and IoT an Impulse

If you want to accelerate the monetisation of your (new) services and IoT, join our upcoming Impulse Sessions on “How to Monetise Service and IoT”. These are full day interactive meetings with like-minded peers, during which we will exchange experience, insights and challenges.

Book your seat @ https://moremomentum.eu/impulse-sessions/ 

Essence

Delivering value to customers does not automatically also capture the value – that is, monetise the value delivered. If the delivered value is not clearly articulated for clients (and staff), both will take it for granted or maybe even not recognise it.

Jan Van Veen, is Founder of MoreMomentum

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In this, the latest edition of the Field Service Podcast, Kris Oldland, Field Service News, Editor-in-Chief, is joined by Kevin Starr of ABB oil and Gas as they talk about the huge impact of automation within field service delivery.

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The United Kingdom’s army of tradespeople who monitor, maintain and fix the billions of pounds of equipment that keeps offices, factories and shops open have become the new frontline in the advance of the Internet of Things (IoT).

As the internet and smartphones become primary necessities over paper and landlines, trade services must embrace the next phase of business evolution in order to remain relevant in the market and to appear dependable, effective and cutting-edge for the modern customer.

Though not a brand new concept, IoT has become the herald of this new chapter, facilitating unique connections with the latest job management and service technology and forever changing the way the industry operates.

The Internet of Things (IoT)

IoT has been defined as the concept of connecting any electronic device to the internet and to other connected devices. It works an application or service that uses information collected from sensors – or the “things” – and then analyses the data from the sensor to perform a specific function.

Through IoT, a giant online network is created which allows previously unrelated technology to speak to each other and combine forces to create new functions that generate new levels of convenience for the user. Many tech experts have used smart TVs or fitness watches that generate a tailored exercise plan as examples of IoT.

Why should trade services care?

According to Curtis Thomson, simPRO Director at one of the world’s leading job management software companies, IoT projects have now moved well beyond the initial trials and high-end proof of concepts and are being actively rolled out by leading service companies and manufacturers across the UK.

For these companies, however, it’s not about programming driverless cars or automatic toasters and coffee machines for the break room. Trade service companies are eager to get in on the IoT action because when their systems are all connected and talking to each other, they have the potential to improve their service delivery, considerably cut costs, and deliver an improved customer experience.

“Think about the IoT in terms of field service applications,” Thomson said.

“Say, for example, you have an accelerometer fitted to the cooling tower on top of a building that could take vibration readings, log them to your database, and alert you when the vibrations fall out of a range.

“Or, you have sensors in the fire detection or sprinkler systems all constantly monitoring and reporting back the current state of the equipment they are tasked to keep an eye on.

"When an event occurs that falls outside of a tolerable range for that piece of equipment, a notification is raised, a job is created to investigate, or an alert is sent to your customer..."

Then, when an event occurs that falls outside of a tolerable range for that piece of equipment, a notification is raised, a job is created to investigate, or an alert is sent to your customer.

“How could this impact your SLAs, or your costs, for that matter? What will your customers think about this – your ability to log, report and respond to potential defects before they even can tell something is wrong, and in between maintenance cycles?”

Thomson’s insight into the future of the trade service industry is why companies like simPRO are determined to add IoT to their repertoire. In 2018, simPRO customers across the UK have been able to access the company’s new IoT solution, which rolled out in June to more than 100,000 users across the globe to countries like Australia, New Zealand, the United States.

simPRO IoT takes hardware, software and data from businesses in the trade and field service industries and integrates them into one platform, allowing previously separate programmes and machines to talk to each other and provide automated solutions ordinarily requiring extensive manual effort.

simPRO’s IoT solution also includes machine learning, proactive action triggering and automation of field service activities, which significantly reduces the complexity of administrative tasks like selection, installation, integration and management, and can trigger field service activities for businesses in near real time.

The company has already begun working with airport lounge operator Swissport and facilities (building plant and equipment) management group Thermacell to keep guests at Luton Airport in the UK warm in winter and cool in summer.

IoT represents significant opportunity in the trade services market, with the number of connected IoT devices worldwide expected to jump 12 percent on average annually, from nearly 31 billion in 2018 to 125 billion in 2030, according to analysis from IHS Markit (Nasdaq: INFO). In the UK, statista reported that in 2018 the share of adults owned at least one connected device was 83 percent.

The ability for machines and data to connect and interact with one another goes far beyond allowing the human race to live like the Jetsons. The trade service industry’s IoT-laden future signals effectiveness, efficiency, profitability and all-around satisfaction for everyone involved.

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Manuel Grenacher discusses why Automation is set to play a crucial part in the two key pillars of field service success, operational effectiveness and customer satisfaction...

As part of the fourth industrial revolution, manufacturing factories are undergoing digital transformations, and not just on the factory floor but also business-wide – specifically regarding automation.

Research firm Gartner defines intelligent automation services as “a variety of strategies, skills, tools, and techniques that service providers are using to remove the need for labour, and increase the predictability and reliability of services while reducing the cost of delivery,” and Gartner predicts that automation will reshape managed workplace services over the next few years, providing a higher customer experience at a deflated cost.

"More than 50% of job responsibilities of today’s global labour force can be automated by adapting contemporary technologies..."

Less than 5% of occupations are likely to be affected by full automation, thus curbing job dismissals – which are often cited as the main risk of the automation trend. Instead, industry experts are discussing the “partial automation potential” concept and estimate that more than 50% of job responsibilities of today’s global labour force can be automated by adapting contemporary technologies, amounting to over $15 trillion in wages.

In the field service management (FSM) industry, to keep up with customer demands, field service organisations are refining, expediting and automating service processes, using automated dispatch and scheduling software to adjust and balance resources and manage the growing number of jobs, technicians and customers.

Dispatchers work closely together with the system, leading the more face-front work and leaving the technical, tedious work to the automation-enabled software – and this results in the following benefits and outcomes.

Finding the Perfect Fit

With the help of automated dispatch and scheduling, service providers can review historical customer information at-a-glance and send out the best-fit technician with the proper skill set and tools, resulting in the quickest match and an excellent experience for all partners involved.

Having a technician on-the-job without the proper equipment and expertise can damage the relationship between the customer and technician, and can lead to many inconveniences when chasing down the potential solution. Field service organizations can deploy the automated system for both short-term projects, as well as long-cycle projects, which requires a complex calculation and organization of specific resources over an extended period.

"Automated dispatch and scheduling projects enable the best possible utilisation of all available resources, resulting in simplifying the dispatching process..."

Automated dispatch and scheduling projects enable the best possible utilisation of all available resources, resulting in simplifying the dispatching process, increasing first-time fix rate, and elevating efficiency and productivity (which translates directly into a sizable return on investments).

By providing relevant details to technicians in the field, while they are in the middle of scheduling future appointments and managing various projects, field service organisations will notice smoother and swifter operations.

Flexible Mobility and Real-time Results

Customer satisfaction extends far beyond the purchase of machines and devices, as the increasing shift towards a mobile-enabled, connected world has conditioned end-users to expect delivery of products and services in realtime.

People do not have time to wait around for a technician set to arrive sometime within an 8-hour time-frame; with the help of up-to-date, automated status reports via mobile devices (including phones, tablets and more), customers are supported as conveniently as possible.

An automated system also benefits the technicians, as they can receive real-time information on their schedules, directly to their mobile device. If a colleague is unable to perform a project or task, the automated software dispatches the adequate person to the assignment and eliminates the tasks of heading to the back office to get assignments or manually checking the best route to appointments.

Before automation, administrative staff were dependent on a labour-intensive process and inefficient combination of spreadsheets and geographic expertise of schedulers to get engineers where and when they needed to go.

Automated dispatching and scheduling gets the right people to the right place, on time, and with the parts they need – and enables organizations to transmit critical information much faster and more efficiently than before.

This leads to improved field service operations on a local, national and international scale, which results in the ultimate goal: an enriched customer experience.

Manuel Grenacher is CEO, Coresystems

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In addition to the smooth transition toward an outcome-based business model, the organisation-wide and bottom line benefits of automating asset and service data collection and utilisation are vast. The benefits are perhaps no clearer than when it comes to achieving minimal unplanned downtime, where over nine in ten (94%) respondents report that the automated collection and utilisation of asset service data will be absolutely fundamental or an important factor in actually achieving this asset specific benefit. A similar proportion (91%) report the same for improved first-time fix rates.

Plugging the Holes – Revenue Leakage

Further to this, 82% believe that automating asset and service data processes will be pivotal when it comes to lower leakages, and contract leakage is something that is causing a great deal of damage to organisations currently.

On average, respondents’ organisations are undertaking 187,470 work orders per year, but an estimated 8.34% (17,542 work orders1 ) of these work orders are left unaccounted for by engineers according to those respondents who know how many are carried out on a yearly basis. This can lead to huge financial deficits and wasted resources and is clearly a problem that organisations should be taking notice of if they want to remain financially viable.

The issue of contract leakage is proving particularly problematic for organisations in the oil and gas, and telecoms sectors – on average, respondents from the oil and gas sector report that their organisation carries out 228,261 work orders on a yearly basis, and those in the telecoms sector are undertaking 213,424 work orders. The level of contract leakage in organisations from these two sectors is staggering. The respondents from the telecoms sector who know the number of work orders being carried out per year, report an average leakage of 9.64% (26,321 work orders), and this is only slightly lower at 9.41% (23,093 work orders) according to those from oil and gas. It seems unthinkable that organisations are unaware of such a gaping hole in their business, and it raises the question of what else could they be missing?

The process of automating asset and service data practices will not only benefit those involved in keeping track of work orders but can have wider reaching benefits as well, exemplified by the 84% of respondents who agree that the successful utilisation of asset data can positively impact all areas of the business. The specific departments that are expected to benefit include, but are not limited to, sales (38%) and marketing (37%) who will be able to better leverage customer usage behaviour, finance (33%) who will be able to provide more accurate billing, and even corporate social responsibility (27%) who will be able to monitor the environmental impacts of assets more effectively.

Bottom Line Benefits: Double-Digit Revenue Growth

While these organisation-wide benefits are impossible to ignore, the truly jaw-dropping potential of automating the collection, aggregation and analysis of asset and service data comes from the bottom line benefits. On average, respondents estimate that this process and using it to drive new marketing, sales and financing models can increase their organisation’s revenue by 14.15% over the next 12 months. In addition, it is thought that operational costs could be reduced by as much as 12.03%, on average.

[quote float="left"]An increase in revenue and decrease in operational costs can only lead to one thing – increasing profit margins.[/quote]An increase in revenue and decrease in operational costs can only lead to one thing – increasing profit margins.

The figures around revenue and operational costs show slight variation by region, with those in the US and MENAT particularly confident about the revenue increases that their organisations will witness – average increases of 15.67% and 15.43% are forecast respectively. Furthermore, those from the MENAT region are almost equally as bullish about the prospects of reducing their operational costs, predicting an average reduction of 14.21%. This is likely to be at least in part down to organisations in the MENAT region starting with a clean slate – the region is currently booming with new business and they are less likely than their counterparts in Europe or the US to have existing legacy technologies in place which would slow down any transition towards the automation of processes. This, in turn, means that they can begin to witness the financial benefits almost immediately – exciting times for the MENAT region providing that any transition is rigorously planned and diligently implemented.

Predicted financial benefits over the next 12 months

Another key way of making money is to improve cash flow and automating the collection and utilisation of asset and service data can also assist in this domain – over eight in ten (83%) respondents believe that the automatic collection, aggregation and analysis of asset service data could have a positive impact on their organisation’s cash flow over the next 12 months.

But what about return on investment?

Ultimately organisations are going to have to spend a fairly significant amount of money on the automation of asset and service data processes which might put some businesses off, but if the reward outweighs the risk then this is surely going to be a worthwhile expenditure.

Strong RoI

When taking into account all of the benefits that their organisation could experience, respondents believe that for every $1 they invest in ensuring that they can automatically collect, aggregate and analyse asset service data they would expect a return of $4.44, on average. Respondents from organisations in the US are even more convinced about the possible returns that they could experience, believing that this figure could soar as high as $5.29. The potential returns dwarf the initial outlay and it is hard to imagine a stronger case for investing in this process in order to guarantee a better future for organisations.

These financial benefits all culminate in enhanced competitiveness within the industry, and 87% of respondents agree that the automatic collection and utilisation of asset service data will have a positive impact on their organisation’s ability to remain competitive in their sector.

This is crucial because the more that organisations across the globe begin to realise the value that this process can bring the more that asset and service data will be used, explaining why the vast majority (86%) of respondents agree that the more asset service data is used, the more value it brings to the organisation.

A success loop will inevitably be created, opening the door for those who are brave enough to take those initial steps to get a jump on the competition and put themselves out there as leaders in their industry.

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Kris Oldland, Editor-in-Chief, Field Service News is joined by Michael Smythe and Alice Walton from eBecs as they discuss how their clients are using their site assessment survey tool to collect key data from the field when their field service engineers are on site...

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Across the last few weeks, we've run a mini-series of excerpts of from the latest white paper from IFS we take a look at how communication is changing and technology is evolving.

In the first feature in the series, we looked at how when it comes to communications, Customers Want It Their Way . In the second instalment, we explored how Complexity Is a Distraction to Delivering your Target Customer Experience.

Now in the third and final excerpt in this series we discuss "How to Reverse the ‘It’s Getting More Complex and Expensive’ Trap" that so many field service companies can fall into...

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So far we have explored two points of view: the customer and the advisor. The customer’s adoption of technologies that enables an always connected, real-time responsive lifestyle has set an incredibly high bar for organisations to match. In particular, smartphones simplify the business of getting things done. An obsessive design focus on ‘one-click access has set expectations for simple, immediate engagement.

"Choice in communication channels is often offered in a fragmented way. Tactical procurement of ‘the next channel’ means they operate without the ability to orchestrate conversational continuity across channels and devices..."

However, organisations are yet to match this sophistication. Choice in communication channels is often offered in a fragmented way. Tactical procurement of ‘the next channel’ means they operate without the ability to orchestrate conversational continuity across channels and devices.

A similar fragmentation has also occurred with enterprise CRM deployments. These have an enduring reputation for being hard to deliver. Scaled down ambitions then tend to target a more pragmatic focus on the individual needs of functional teams. This makes personalised service a much more complex task for advisors who are still expected to be knowledgeable about any event across a customer’s lifecycle.

Organising customer data by functional priorities has meant CRM is failing to keep pace with expectations for informed, low effort customer service engagement. Operationally it is just too hard for advisors to locate and assess the context of a customer’s situation on the fly. Both customer and organisation suffer in terms of poor customer experience and ROI.

Instead, this is how customer data should be used.

At the point of initial customer contact, a rich mix of relevant data is used for automated decision making. The aim is to direct customers to their ‘best’ resource. In an omni-channel context, this could be live assistance, self-service or proactive service. The triggers for selecting the ‘best’ resource will depend on the demands of each customer journey and how each customer reacts during that journey.

As a rule of thumb:

• Repeatable customer needs at definable points of a journey can be anticipated and therefore offered as a proactive service.
• Whenever things typically become complex, emotional or require some form of relationship nurture, live assistance is best.
• Anything else is a candidate for 24x7, instant self-service.

As far as live assistance is concerned, the ‘best’ advisor experience is that data and workflow is proactively pushed to them at the right points during each customer journey. The function of an effective unified desktop is to make the complex look simple. As a result, advisors are less distracted and can remain in full rapport with each customer and their needs.

This simplification demands a single screen of information that will adapt as the conversation flows. What previously required toggling across multiple screens is now condensed into a single overview - with duplicated and inconsistent data entry a thing of the past.

Some of this design intent is achieved through visual layout: for instance just one inbox for all voice and text enquiries, one view of interaction and transaction history etc. All of which makes for the kind of intuitive user experience that advisors already expect from their mobile technologies.

However, there is also some clever stuff that happens before any customer information is brought to the advisor’s attention. In the design quest of presenting only the most simple and relevant view, an advanced unified desktop will combine many data sources into a single stream.

As previously mentioned, holistic customer insight is seldom held in one system of record or offered by a functional view. And hard-won experience tells us that the ‘rip and replace’ strategy of turning many legacy systems into a single consolidated version seldom works out as planned.

"Modern ‘digital glue’ such as data aggregation models and APIs can ‘mashup’ multiple data sources and present the advisor with everything they need..."

Instead, there are less risky ways of achieving the same goal. Modern ‘digital glue’ such as data aggregation models and APIs can ‘mashup’ multiple data sources and present the advisor with everything they need.

Sometimes an even greater focus is needed around how customer information is organised and displayed. What about those instances when first-time resolution does not happen within a single session? Maybe the process that supports a customer journey inevitably takes time, such as making an application or a claim or trying to recover lost property. Maybe the customer or organisation has to find more information or do something else to reach a decision. All of which takes more time.

This is where case management comes into its own. It draws boundaries around this type of customer situation and attributes the relevant data, interactions, transactions and workflow for easy ongoing reference. This is especially important when there are multiple points of customer contact, which are progressed by different employees, who need to easily reference previous steps in the customer journey without expecting customers to provide the narrative.

This form of grouping is enabled by one of the defining functions of an omni-channel framework. So-called ‘universal queuing’ will organise all voice, text and workflow items into a single management system instead of treating them as separate queues. As a result, integrated views of activities over time are automatically generated and presented to the advisor, saving time and effort for all concerned. This ability is however untypical in a CRM centric approach.

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Adopting IoT as part of the greater service and business environment involves keeping up with industry changes as they take place. 

We recently looked at some research from Astea and WBR that looked at why companies were adopting IoT based approaches to service delivery. Now in the second excerpt from that same report, we look at the new challenges such new next-generation tools might bring to the table...

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Now, the majority of field service companies are developing methods to make IoT-related services more efficient. Growth patterns suggest that they are being well received by customers as they use connected data to created advanced solutions.

Today, 75% of companies are using connected data and IoT to create advanced services; among them, 83% believe connected data and IoT lead to more profitable business decisions. Business decision makers who responded to the survey have identified several emerging applications of connected data where they are planning changes or are already seeing business results — security, product sustainability, new product technologies, and fleet management, among others.

Advanced Services in Practice

The research surfaced a wide-ranging and varied number of comments from service directors who participated which included:

“We are using connected data and IoT on an extensive level, with client dealings and remote problem solving with our advanced Affiliates Suite service to support client demands more efficiently. Under this service, we monitor data, alert clients about threats, and [provide] critical observation. With real-time data, threats can be diffused with faster diagnostics.”

“Recently, we have integrated IoT in order for vital health information to be passed on directly to those maintaining [the equipment]. With this innovation, the availability of details in timely manner is ensured, thus speeding treatment and dispensing medication. This solution will be subject to technological advancements from time to time with upgraded systems.”

“Once we derive information such as purchase patterns, market trends, [and] competitor stats, [connected data and IoT] is used to develop substantial products that are able to withstand and supply changing mechanisms. Advanced solutions using connected data and the latest upgrades benefit customers and organisation alike.”

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Asset and service data will be a crucial element of making this transition to a more outcome-based business model. However, at present, surveyed organisations are not accessing the full potential of this data due to their inconsistent use of digital tools and technology. While 98% of respondents report that their organisation uses automated digital tools and technology to aid the collection and utilisation of asset service data, only around half or fewer state that these tools are used in the collection (51%), aggregation (43%) or analysis (52%) stages of the process.

This intermittent use of automated technologies is not only opening the door for inefficiencies but is also directly leading to difficulties with data collection and utilisation. Around four in ten respondents report that when it comes to the management of access to asset service data in real time (40%), aggregating asset service data in a structured way (39%), analysing asset service data (41%), and sharing asset service data analysis with the rest of the business (42%), their organisation either needs huge improvements in these areas, a complete overhaul or that they simply do not do this at all yet.

The difficulties regarding asset and service data are exasperated further by the 59% of respondents who agree that their organisation is held back from the successful analysis of data because the quality of it is usually poor.

Struggles are rife throughout the entire process, right from who is collecting it and how they do this, down to how it is being analysed and shared across the business. How can these organisations possibly expect to make any informed, strategic decisions using the data that is readily available to them if the process is so disjointed, outdated and underdeveloped digitally?

Lack of Data Confidence

And these struggles have led to a distinct lack of confidence among surveyed decision makers and their colleagues, with only 50% of respondents reporting that they or other service leaders in their organisation completely trust the asset service data that they have access to. But this will need to change because asset and service data is becoming an ever more integral part of organisations, and this is summed up by the 85% of respondents who agree that service asset data should be central to strategic decision making.

The requirement to boost trust levels is especially pertinent in those organisations where the C-suite is already using asset service data today (39%) or have plans to in the future (34%) because they will need to be able to trust in the data in order to make well-informed decisions for the business.

The use of asset and service data by the C-suite will also serve to set an example for leaders across other departments that this is the best way forward for the organisation.

Glaring Skills Gap

However, it is not just these deep-lying trust issues that are a concern for organisations, which is clear from the fact that only 22% of respondents are willing to admit that the IT and field service functions in their organisation work together completely effectively to achieve the goal of better data utilisation.

This lack of collaboration is compounded by a glaring skills gap whereby over three quarters (77%) of surveyed decision makers concede that the pace of data intelligence digitally collected by their organisation’s assets is outpacing the skills of those responsible for actually utilising the data.

Further to this, more than four in ten respondents report that the skills of engineers (45%) and the skills of management (44%) are a cause for concern when it comes to using data produced by advanced technologies (such as a digital twin) meaningfully. This should set alarm bells ringing for organisations because they are struggling with skills among both their employees on the ground and those higher up the organisation as well. It seems that even with the implementation of the appropriate technology for the collection and utilisation of asset and service data, there will still be work to be done in order to extract as much value as possible – this will likely need to be in the form of a rigorous training program.

An Appetite for Automation

A lack of collaboration between teams, an ever-increasing skills gap and an inconsistent use of the appropriate technology, leading to trust issues could become a recipe for disaster in these organisations if not addressed quickly.

The need for automated digital tools has rarely been clearer, and respondents recognise this. Only 7% believe that automating the process of collecting and utilising asset service data is not at all required because all data manually entered by service engineers is structured and entirely usable. Whereas over four in ten (43%) report that the automation of this process in their organisation is required to a huge extent, or that it is completely required because manually entered data never/rarely provides value.

Organisations will need to utilise automated digital tools more consistently if they are to progress, but they will also need to upskill their workforce and address any collaboration issues internally. These three areas are crucial if asset and service data is to be utilised to its full potential and this will ultimately underpin the successful transition to an outcome-based business model.

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