Field Service News Editor-in-Chief, Kris Oldland discusses the fact that the choices field service companies are facing today wider ranging and more critical to success than ever before and gives us an overview of what to expect in Field Service...
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Oct 17, 2017 • Features • Leader • Magazine (digital editions) • MArne MArtin • Nick Frank • Outcome Based Solutions • resources • Bill Pollock • Felix Keiderling • Jim Baston • Servitization
Field Service News Editor-in-Chief, Kris Oldland discusses the fact that the choices field service companies are facing today wider ranging and more critical to success than ever before and gives us an overview of what to expect in Field Service News issue 19
There are of course always big choices to be made in business, but it seems field service companies are facing more big choices than ever in today’s market...
Which of course is not necessarily a bad thing at all. Choices mean options and options are a good thing. They allow us to follow a path that feels right for us.
Of course, options also let us change direction when we’ve headed in the wrong way for a while - although they do tend to come along less often if we spend too long heading up a blind ally.
Perhaps the most important option we can take (and one that is always available to us) is to listen to those around us. I’m a firm believer in the fact that we can learn something from everyone we interact with, but of course if you are facing time pressures (who isn’t these days) then I’d suggest starting with those who are experts in their fields.
Fortunately, we’ve an issue that’s jam packed with expert advice so all you need to do is keep on reading.
We’ve got what for my mind is our best yet panel in this issue’s Big Discussion, which is focussed on the relationship between Service and Sales. As always we’ve brought together three industry experts on the topic and put four questions to each of them.
Our panel consists of Nick Frank, Michael Blumberg and Jim Baston so there is a wealth of deep knowledge and experience waiting for you in that feature which begins on page 16.
Elsewhere we’ve two features that look specifically at how to choose the right field service management (FSM) solution for your business. When we consider just how big an impact the selection of a FSM solution can have on your business - how it can drive efficiency, reduce costs, create revenue...
“Perhaps the most pressing choice for many field service companies is whether to move away from the traditional break-fix SLA driven model that has served them well for so long...”
Frankly, it really is absolutely vital that this is a choice you get right first time around.
So for anyone considering an upgrade from a creaking old legacy system or looking to implement a system from scratch for the first time then I suggest checking out Bill Pollock’s article “Choosing the most effective FSM provider” and also Marne Martin’s article “Customer Experience is essential to every member in the field service ecosystem” which both offer insight into what makes a good FSM partner for a service organisation, whilst coming at the topic from slightly different perspectives.
Yet as important as selecting a FSM solution is, perhaps the most pressing choice for many field service companies is whether to move away from the traditional break-fix SLA driven model that has served them well for so long and to embrace the more modern and increasingly popular outcome-based service models.
We’ve discussed outcome-based services many times in these pages before and cards on the table, personally I’m a big proponent of the servitization movement. I think it absolutely makes sense. But that’s just my opinion and ultimately, it’s not a choice I need to make - unlike many of you.
So for those of you readers, of whom there are many I’m sure, whose organisations are considering this very question - then I absolutely recommend listening to those who have been there and done it. As whilst the benefits can be many , so too are the risks - it is not an easy path to tread.
One company that has been on that journey is ABB and you can read my interview with Felix Keiderling on the topic on page 44 and also check out my interview with GE’s Scott Berg on page 29 where we also discuss outcome based services in depth.
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Oct 05, 2017 • Features • Management • ABB • aston university • Felix Keiderling • Servitization
Kris Oldland talks to Felix Keiderling, General Manager responsible for Global Service Business Development and Product Management of ABB Turbocharging shortly after his presentation at the Spring Servitization Conference in Lucerne, to find out...
Kris Oldland talks to Felix Keiderling, General Manager responsible for Global Service Business Development and Product Management of ABB Turbocharging shortly after his presentation at the Spring Servitization Conference in Lucerne, to find out more about how ABB are approaching the introduction of an outcome based service offering for the merchant marine sector as well as for power plants.
KO: Having just given a fantastic presentation a little earlier this morning one of the things you highlighted was that you have an install base of 200,000 assets and you know exactly what is going on with each and every one of those assets.
How do you achieve that?
FK: Well, we do not have a real-time information about all turbochargers.
But basically, knowledge about the installed based is at the core of our business considering the long life cycles over which vessels and power plants are operated. In order to do this we have an intelligent product and service database for specific application data covering from cradle to grave the whole process. I.e. from day one how we manufacture with what materials, through to where it is installed, on which engines and then keeping track of the lifecycle of the asset - how we’ve serviced it, if there are any upgrades and also technical information such as the estimated running hours and scheduled maintenance.
All this information creates value in particular for our long-term customers as we can be available where and when the customer needs us, with the right parts and the right people, very effectively.
KO: The business model that you described today generated a significant chunk of the revenue from service, has that always been the case, i.e. has service always been a key element within your business model?
FK: Yes it has. From Day 1 on, if you look at the harsh operational environments these engines are operating in, of course our turbo chargers also face these environments - so wear and tear is always occurring and we have always had to do regular maintenance because of that.
Due to this, from the beginning service has been an important part of our business approach and our success.
KO: And has it also always been a driver for you strategically? Or was there a customer pull as well?
FK: In one sense, it was a clear strategic decision especially when we looked at how manufacturing was moving to Asia and the big growth in logistics that was coming along with that. The merchant marine sector that we support is also driving this demand for regular maintenance for turbochargers as well.
Whilst it was a strategic decision in that we saw this market developing and positioned ourselves accordingly, there was also the move to implement our service solution globally which was in part a reaction to the changing demands of the sector.
KO: When you were speaking earlier on today you alluded to such change and that the shift in market forces had allowed to put yourselves in the position where you can begin to explore the potential of an outcome based solutions model - what exactly does that look like for your division in ABB and what is that appeals to you in such a model?
FK:We see certain things happening in the market- one is that uptake of service agreements is picking up in pure numbers, customers are increasingly willing to outsource their service needs to service providers, and in particular to the OEM.
We see that there is an interest in customers engaging in much longer term service agreements because they see the leverage of reducing their total cost of ownership the over asset lifecycle and also outsourcing the risk.
Then thirdly, there is the customisation possibility that you have within the scope of these lifecycle agreements - customers are willing to engage if you can truly support their operations and are willing to adjust to their needs.
KO: Finally, one other area that was brought up in your presentation, was digital transformation, which is one of the buzz-terms of 2017 it seems, but what does digital transformation mean for ABB both company wide and in your division?
FK: From top down, ABB has recently announced ABB Ability as the platform where we plan to connect all Internet of Things related services, products and people into this one common platform to ultimately enable our customers to know more, do more, do better, together with us. Then talking about our own specific unit, we are of course part of that process and we are looking into blending our excellence in global service execution, with digital customer solutions to support customers’ operations to be most reliable and efficient.
These solutions are in the development and are yet to come to the market
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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