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The key to digital transformation for field service organisations lies in people and not technology writes Nick Frank of Si2 Partners...

“The rate of increase of industrial devices being connected to the internet is up 25% per year, but customers don’t really appreciate how the capabilities and benefits of the IoT are relevant to their business’

So says Dave Hammond, Product Manager at MAC Solutions. And he should know, as he sells and manages the market leading eWON router, which enables industrial equipment to be accessed securely and remotely, across the Internet. For business leaders, his ‘grass routes’ observations are far more insightful into the challenges of monetising data, then the many articles routinely churned out on the subject.

It highlights the importance of mind-set above all else, which is all about getting back to management basics, a point that many commentators have lost sight of. What becomes clear from talking to people like Dave is that servitization, industrie 4.0 and Digital economy have little perceived relevance to SME businesses at the moment. Their focus is on better meeting the needs of their customers but mainly reducing costs. Many are enabling their equipment for remote connectivity with a business case solely based on savings and cost reduction.

 

They can easily imagine and so justify the investment based on a reduction in costly service visits through remote diagnosis, especially during the warranty period, where they bear 100% of the cost. With the number of devices being put on-line booming, everything sounds pretty good with the market. But Dave and his colleagues at MAC are concerned at the lack of ‘market understanding’ from the UK SME’s they talk to.

In their ‘Connectivity Roadmap’ most customers are stuck at level 2 - ‘Get Connected’, which is all about cost! They struggle to justify moving to the next phase of delivering proactive service revenues and ultimately transforming their business.

 

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So what are the underlying causes of this stagnation and an inability to step up to the challenge?

Part of the reason lies in the lack of maturity of the tool sets being developed by IoT providers such as GE, Microsoft and PTC. In the last 3 years, huge investments have brought these tools into the realms of reality, but they are still relatively cumbersome to integrate into the business processes.

Despite what you might read, it is only larger businesses that have the resources to invest in developing their own bespoke infrastructure; and even then, most of the tangible gains remain in the area of cost reduction.

For many in the industry, another challenge is around culture. Most quarters of industry have struggled to really imagine what the technology can do for their business. They have become trapped in product-centric thinking, rather than deeply analysing where the value is delivered within their customer and industry value chains.

The good news is that the business case to ‘Get Connected’ is so inequitably clear, that at least many engineers have been encouraged to pilot the technology and learn for themselves what it can do.

A second challenge is the conservative nature of many industrial businesses in adapting to fundamental change. Together these represent a significant mind-set issue.

The message for many businesses is that to maximise their return on technology investment, they would do well to challenge their current culture to become more outward orientated and service focused.

 

This means not only better understanding customers’ needs and their immediate problem.
But moving deeper into how to harness their inherent know-how and technology to help their customers make money. By moving emphasis away from technology towards outcomes and operational excellence, many businesses will be able to deliver more value and hence profitability.

The problem is that this is a ‘back-to-basics’ approach, based on common sense and, as we all know, common sense is one of the hardest elements of business upon which to act. Leaders can start by encouraging an ‘outside-in’ approach, taking a long hard look at the value they add to their customers and how they influence the industry value chain.

Then together with the experiences they gain in understanding the power of these digital technologies, they will develop the insight and confidence to turn data into profits.

So, if you sense your initiatives in developing these new capabilities are slowing down or not meeting your expectations, perhaps there are three basic challenges for you to review...

1. Do you have the right level of insight to use your know how to make your customer more profitable?
2. Do you know how to use information to make your operations more cost effective?
3. Are your people encouraged to explore new ideas and have an environment and process in which innovative ideas can be turned into reality?

 

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Nick can be contacted on nick.frank@Si2partners.com Si2 ON-Demand is a unique advisory and support service that enables top performing leaders to solve problems and get things done, quickly, easily and cost effectively.

 

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Geerings, one of the South East of England's leading providers of MPS and print management services, is upgrading its service management capability with the installation of 2serv. 

Developed by Purpose Software, this market-leading software solution will provide the Geerings management team with faster access to real-time information to enable data-driven decision-making and streamline billing processes.

According to Jon Killengray, Service Manager at Geerings:  “We selected 2serv after an extensive review of available solutions as we wanted to work with a company that really understands the needs of resellers in this market sector and is able to deliver the highest level of service and support.  Purpose Software also offered us the ability to install the software on a subscription basis allowing us to pay for the system as we use it without major up-front capital expenditure.”

The new service management system will enable Geerings to achieve considerable time-savings across the business. In particular, it will streamline and enhance the billing process by tightly integrating with Sage200.  This will provide a single point of access and eliminate the need for manual batch transfers, making invoices immediately available in Sage after being created in 2serv.

 

Further savings will be achieved by enhancing the toner management process including the automatic checking that consumables have achieved the correct usage.  2serv also provides rapid access to informative management reports that can be run at a press of a button without impacting on overall system performance.  These reports present up-to-the-minute data in formats that are easier to interpret for better decision-making.

“Purpose Software is providing us with a service management system that will deliver lightning speed performance no matter what we throw at it, unlike the previous system which often struggled during the generation of complex reports,” continued Jon Killengray.  “The 2serv system is fully future-proofed providing us with access to all enhancements, as they are released as part of the subscription programme, ensuring that it will continue to meet the evolving needs of the business.”

Geerings is also installing 2roam, a mobile application that empowers engineers equipped with tablets, smartphones and other mobile devices to access and update 2serv from any location.  It will increase the productivity of the company’s field service team by enabling them to make more efficient use of their time.

 

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Paul Whitelam, VP Product Marketing, ClickSoftware answers questions put to him by the audience of a Field Service News webinar on Cloud computing and it's role in field service management.

Questions include:

• How do you feel about transferring data between third party specialists and how moving to the Cloud may facilitate that?
• You mentioned briefly in the webinar the additional computation powers of the Cloud - would you be able to explain exactly how that works in details (but please use layman's terms)
• Is there any particular type of organisation moving to the Cloud?
• Security aside - is there any other reason why a company would not want to move to the Cloud? [/unordered_list]

The full webinar itself explored data from over three years worth of research into the topic of Cloud computing as a platform for field service management systems, with Whitelam and Kris Oldland, Editor-in-Chief, Field Service News discussing the key findings of the data and exploring the trends it reveals.

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To download a copy of the full webinar please click here

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The rise of the connected fleet has been discussed as an emerging technology with huge potential to change field service operations for some time now. However, we are now reaching the point where the discussion must move from theoretical to practical - so just what will the impact of the connected fleet be for field service organisations?

As more and more fleets become connected with on-board equipment straight from the OEM, is there still a need for companies operating a mobile workforce to work with traditional telematics providers?

Field Service News spoke to sector experts to understand how the fleet management industry is evolving and what the impact this rapid period of technological change will mean for field service organisations.

So just what exactly does the rise of connected vehicles mean for the fleet management sector?

“Ultimately, the rise of connected vehicles means both telematics suppliers and customers will benefit from a higher quality of vehicle information and reduced operational overheads,” explains Sergio Barata, General Manager, Telogis EMEA.

“It should be viewed as an opportunity for telematics providers to refocus their solutions so they leverage the new possibilities these technologies will bring. For different providers this may mean different things, but at Telogis our focus has been to develop a single connected platform that expands the value of our proposition beyond the vehicle and focuses on improving the operational processes within the enterprise, such as integrated route planning and mobility tools,” he adds.

However, John Gorbutt, Regional Sales Leader, Greenroad highlights that alongside the new opportunities that these latest technologies present, new challenges are also emerging.

“The incredibly accelerated growth of the connected fleet vehicle presents challenges, as well as opportunities,” he begins.

 

“First, for all fleet operators, both dispatched and un-dispatched, the driver’s function will be drastically different sooner than anyone imagines.

The driver will be at the focus and responsible for their own productivity and safety while behind the wheel. Essentially, as new, non-telematics based solutions enter the market the driver is now more connected than ever.”

“They will not only use their mobile device as the centre of their work day, they will have access to their own driver behaviour data along with various contextual information to make them as productive and safe behind the wheel as possible. These new systems are now coming onto the market at a fraction of the cost of traditional telematics systems but still provide all the same and better functionality.”

Meanwhile Stephen Watson, Microlise Director of Product believes that there is now an onus on fleet management solution providers to harness the technologies and drive the solutions forward for the industry as a whole.

“Any significant change in an industry is always a threat to the existing suppliers in that market, however where there are threats there are of course opportunities!” He comments.

“Provided organisations acknowledge the changes that are starting to happen, the changing requirements of the operators and use the expertise gained within the industry to their advantage, there is no reason to fear the rise of connected vehicles.

More it is an opportunity to embrace the evolution and provide greater value in an exciting area that touches us all.”

So what enhancements can field service organisations expect to see in the not too distant future in terms of their fleet management tools?

Barata believes that fully connected fleets will bring “new levels of data quality and accuracy not seen today, as the connectivity revolution continues apace.”

“We’ve already seen with partnerships, such as ours with Ford, that increased connectivity helps drive new business outcomes, based on data delivered through a holistic, connected vehicle approach,” he asserts.

“Through the integration of more data points –  such as seat belt usage data for example – we can help improve the safety of fleets, and we’re already seeing an increase in the use of preventive maintenance on engines to reduce downtime, thanks to Diesel Particulate Filter (DPF) diagnostics data.”

However, when questioned on what fleet management will look like as fleets become fully connected across the next five years Watson thinks that we may be getting slightly ahead of ourselves “5 years seems ambitious!” He begins.

“I think we are still a way off fully connected fleet operations. There are a number of EU and UK government innovation schemes designed to support organisations in the enormous R&D costs that come with the technology, however there are still significant legal and regulatory hurdles to be overcome before fully connected vehicles becomes mainstream.”

Yet, Gorbutt insists that the telematics sector as a whole is well overdue when it comes to ultimately delivering the return on investment it has always promised.

“I don’t think it’s a surprise to anyone that the promise of track and trace telematics didn’t provide the long term value most fleet operators expected,” he asserts.

“When weighed against the cost of the system, the ROI is minimal at best. So over the year’s telematics providers have raced to provide more and more features to supplement the high cost of live tracking. This has resulted is millions of customers paying outrageous sums for a system grounded in technology from 2001 or earlier.

“With new systems coming on board every day that are based on cheaper, high quality networks and mobile devices, any fleet operator can get an entire fleet up and running on a mobile based system that includes everything from live tracking to driver behaviour at a fraction of the cost.”

However, whilst the promise of improved fleet management tools at a reduced cost is one that will appeal to all field service organisations, it is also worth considering how this will change the role of the fleet manager.

“With this new mobile technology, security will be key,” Gorbutt explains.

 

“Hence there will be an evolution in the role of the new fleet manager, who will become more of a chief mobile officer in charge of everything from mobile deployment of solutions or cyber/mobile security and will encompass the productivity and usage of everything included in the new smart mobility ecosystem.”

Indeed, as we begin to discuss fleet management solutions that are mobile centric the lines between field service systems and fleet management systems are becoming increasingly blurred. Is there still a need for field service organisations to invest in both sets of tools?

“I guess this depends on the definition of field service management software,” Watson comments.

“It’s fair to say that concepts of engineer location, performance, planning and resource management are all now widely available, however there are a number of functions of field service management that would not currently feature in a standard fleet management software solution.”

“From an investment perspective then maybe M&A activity will see customers able to purchase a suite of products from a single supplier and these products will be more broadly integrated. But with the high levels of API integration available from suppliers like ourselves, companies have the opportunity to get best of breed solutions and services from the organisations most able to support their current and ongoing needs.”

Gorbutt echoes this sentiment commenting that he doesn’t “think there will be a decisive divide between the two technologies.”

“There are a few companies that will continue to try and cater to both fleet based companies and field service companies but field service based organisations are so specialised and their needs are so diverse that I don’t think they can get everything they need from one provider.”

 

He is also in agreement with Watson’s thinking when it comes to the belief that continued integration will be a highly important part of the wider ecosystem of field service technologies as technologies continue to evolve.

“What will be most important is the ability for these different systems to “talk” to each other.” He comments.

“For instance, the fleet management system must be able to send live tracking data to the field service customer location and routing system and all must work seamlessly with the driver safety application that ensure the driver is arriving safely. Connectivity is the new world and any service provider that doesn’t have all their systems sending and receiving data from one another will be obsolete in a matter of 5 years.”

However, Barata holds a different view, believing that as these lines blur it is those organisations that utilise a platform-based approach that will see the greatest benefits.

“The need for enterprises to adopt these solutions will continue to increase rapidly in the coming years, and soon they will become ubiquitous, leaving those who choose not to adopt them behind,” he explains.

“The good news for them is there are already suppliers like ourselves out there who can provide a platform which meets the needs of both their fleet and service operations. The previous challenges they faced in integrating data produced by separate technical, operational and strategic systems – often provided by different suppliers - can be avoided by partnering with suppliers that can deliver a single solution.”

The exact role of fleet management for field service organisations in the near future maybe uncertain, but we can be certain that is set to change.

 

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Michael Blumebrg, President, Blumberg Advisory Group explains why the on-demand economy has become a very attractive value proposition for both FSOs and their customers...

I recently marked a significant milestone in my career. This year marks 32 years since I began work as a management consultant in the Field Service Industry.

I was a newly minted MBA when I started and wondered how I could possibly help clients solve their field service challenges. One of my mentors at the time told me that the key to my success was to just keep at it.

Eventually, I’d have enough experience to solve any challenge presented to me; even those that people were dealing with for the first time. Not just because I’ve seen these issues before but because I would be able to anticipate them.

Looking back, I find these words of wisdom to have been spot on. The Field Service Industry has changed so much since I began working in it.

Much of what we anticipated would happen has happened.

Oldsmobile, a now defunct car manufacturer, had a popular commercial jingle on television in the United States when I began my career…” this is not your father’s Oldsmobile… this is the new generation of Olds”. I feel the same way about Field Service. We have entered a new generation of field service.

 

The field service industry has changed so much such much since I started working in it. Interestingly, much of what the experts at that time predicted would happen with respect to field service has happened.

Back in the good old days, I used to sit around the lunch table with my colleagues and discuss how technology would change the service delivery model and how service would become a utility just like electricity, water, or gas.

It would always be available when you needed it, you would consume it frequently, and pay for what you use. In other words, we were describing the basic elements of the on-demand economy. We just didn’t know it at the time.

What exactly is the On-Demand Economy?

Tech Insider Magazine defines it as the economic activity created by technology companies that fulfil consumer demand via the immediate provisioning f goods and services. Uber, eBay, Lyft, and Airbnb are classic examples of the On-demand economy in practice.

Field Service is also rapidly becoming an On-Demand economy business. Over the last twenty years there have been several industry trends and developments that have made this possible.

Here are a few examples of how Field Service Organisations (FSOs) are leveraging technology to become On-Demand economy businesses:

• Dynamic Scheduling provides real-time information on technician availability which permits FSOs to immediately commit to their customers when a Field Engineer (FE) will arrive on site.
• GPS Technology provides real-time visibility of FE location which enables immediate updates as to when the FE will arrive on site
• Freelancer Management Systems provide FSOs with the ability to source, train, and dispatch freelance technicians. As result, FSOs can scale their workforce on-demand.
• Advanced Technology such as IoT, Augmented Reality, and Artificial Intelligence provides the technical platform for delivering on-demand diagnostics to FEs and end-customers reducing resolution time and improving first time fix.
• 3D Printing Technology enables FSOs to produce parts on-demand. Thus, they can reduce their investment in spare parts inventory, improve fill rate, and lower their logistics and transportation costs.
• Servitization Business Models where manufacturers charge for usage of their product on a subscription basis, such as Rolls Royce’s “power by the all”; the ultimate example of an on-demand economy business. Customers pay for what they consume, when they consume it.
• On-demand consulting platforms like Si2Partners provide a collaborative platform for Field Service Leaders to access subject matter experts to validate thinking, solve problems, challenge assumptions, and formulate new approaches as needed.
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The On-Demand Economy is no longer a concept of the future as far as the Field Service Industry is concerned. It represents a very attractive value proposition for both FSOs and their customers.

There are numerous case studies and data points available that demonstrate how the advancements identified above have helped FSOs improve the efficiency, agility, and economics of service. It will only be a matter of time before Manufacturers and FSOs develop and market on-demand value propositions to business customers in the same way that Uber or Airbnb have done with consumers.

Given current trends, FSOs will need to give serious consideration as to whether they should develop on-demand, “uber-like” service offerings for their customers. It is likely that customers will expect these offerings just as they have come to expect other types of services that have become standard within our industry.

 

There will obviously be leaders, followers, and those left behind when it comes to On-Demand. The question is where will you company reside on this spectrum. Will your company be first to market or will you wait to see what happens? The choice isn’t easy.

Ultimately the answer comes down to whether your company and your customers are ready for On-Demand.

If my experience offers any wisdom, then it’s that entry into any new service or market requires a good bit of market research, analysis, planning, and execution.

On-demand consulting platforms like Si2 Partners can certainly be a critical resource to field service leaders as they formulate their own on-demand service strategies.

 

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Social enterprise organisation First Ark has saved £210,000 by collaborating with Fleet Operations on a series of fleet initiatives, aimed at increasing value for money. These savings contribute to the commitment First Ark makes as a social enterprise to re-invest back into the local community.

First Ark’s partnership with Fleet Operations has helped to eliminate vehicle ‘spot hiring’ and has led to significant lease and insurance cost efficiencies across the company’s facilities management and refurbishment services division, Vivark.

[quote float="left"]Operational efficiency is paramount for First Ark as we strive to maximise our investment in local community initiatives

“Operational efficiency is paramount for First Ark as we strive to maximise our investment in local community initiatives,” said Angela Coffey, First Ark Value for Money and Procurement Manager.

 

“With Fleet Operations, we have exceeded expectations in terms of our fleet performance and have seen significant gains related to value for money.”

Following a reduction in the size and profile of Vivark’s fleet, from 176 to 132 vehicles, an internal widespread communications campaign was delivered to promote the new value for money initiatives and address vehicle ‘spot hiring’.

“The success of this campaign, which included one-to-one briefings with contract managers, was remarkable with efficient vehicle utilisation realised within just three months,” added Coffey.

“Our mobile Vivark staff now have access to a dedicated ‘helpdesk’ number for Fleet Operations, who now communicate regularly with them. Considerable time and financial and savings have been realised as a result.”

In addition, Vivark’s fleet risk policies have been reviewed by the fleet specialist and risk assessments have been carried out to ensure the organisation remains compliant with the latest health and safety regulations. A ‘permit to drive’ scheme, involving regular licence checks, has been rolled out across all grey fleet drivers while driver risk profiling, using telematics data, is set to deliver further improvements in road safety standards.

 

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Leading digital retailer Argos is implementing a new transport management solution from Microlise.

The tool gives their transport teams live visibility of vehicles and expected estimated times of arrival so they can take action to maximise their on-time performance, as well as proactively keeping customers informed of any delays to their deliveries.

In addition, contact centre representatives will gain access to precision live delivery information letting them accurately respond to queries from customers.

Argos, whose parent company Home Retail Group PLC was bought by Sainsbury’s in September 2017, is currently installing telematics hardware across the entire two-man UK home delivery fleet.

[quote float="left"] “We are constantly looking to new and innovative tools to help us improve our customer experience -Laurence Garnett, Head of Home Delivery at Argos

“Delivering a positive customer experience is an absolute priority for us and customers tell us that being on-time or informing them of any change is really important,” said Laurence Garnett, Head of Home Delivery at Argos.

 

“We are constantly looking to new and innovative tools to help us improve our customer experience. Microlise will be a very powerful solution to help us further improve our high standards for on-time delivery as well as keep customers up to date with the very latest delivery information.”

Fleet Performance enables driving performance to be monitored through an A to G rating system. Via an app on their smartphone drivers can monitor their performance against benchmarks on a whole range of criteria including idling, acceleration, braking, cornering, cruise control usage and speed.

This information enables driver trainers to target training where it will be most effective and will help Argos to be more fuel efficient.

“Argos is a brand that has thrived on the high street since 1973, not least by always staying ahead of competitors and delivering excellent service. It’s great to be working with the company as it implements incremental improvements to continue to perform at the vanguard of retailers in terms of cost control and customer experience,” added Nadeem Raza, Chief Executive Officer, Microlise.

 

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Stephen Wilson, CMO, eBecs provides some key advice on making sure you select the right software provide to meet your needs when making the important decision to invest in Field Service Management software...

Choosing the right field service software is an important decision, as it has real, long-term effects on your business’ profitability and customer retention. So taking the initial time invest to understand your options and how they will improve efficiency, information, and communication sets you up for long-term success. You’re investing time and money into a product and so, in turn it should also save you time and money. There are questions you should ask and key issues you want to investigate as you compare vendors.

Development Costs

Oftentimes vendors will have a base product that provides your business with the basic tools to automate and store information. It’s the additional add-ons and customisation that starts to increase the initial set-up fee or monthly subscription fee. These costs are not always apparent when simply looking at a list of features.

It’s important to understand what features will incur additional costs, and whether or not you need them. While certain features may appear to increase productivity, reduce frustrations, etc. you need to know if the ROI is going to justify the cost.

Implementation Time

How soon can the system be up and running? If you’re working with a vendor who is building your application from the ground up, while being white-labelled and built to fit exactly your needs, development time can be up to a year. Meaning your ROI is a long way out and you may find that your business needs will change during that time.

A system built using a plug-and-play model tends to have shorter implementation time, and allows for those initial building blocks to be built upon, adding customised features as needed.

Mobile Applications

When building enterprise grade mobile applications there are some very key differences between the coding of a web application and a mobile application. What works on a desktop, doesn’t necessary translate to a mobile device. Performance, security, and features can all be affected.

Ask vendors what they use to build mobile apps;, if they say HTML5 they’re not going to be the right solution for you. Native apps provide a stronger, more dependable solution, especially for field service techs who are consistently on the road and rely on the app to manage client calls.

Third-Party Integrations

The ability to integrate with third-party applications is key. There is no solution that does absolutely everything a business needs. From a customer facing website, to a CRM, to payment processing. There are applications that will need to be integrated with your field service solution. Find out how the vendor handles third-party integrations. Are there limitations on what can be integrated?

Security

Consider all the different employees in your business. Do they have different access to different information? Does the vendor’s solution handle multiple roles and access permissions? You may need this on both a group and individual level and so the system needs to be flexible. Make sure you know what types of permission levels you need and what is possible.

Automated Routing

A key feature of many field service software solutions is the ability to automatically generate routes for techs, scheduling their service calls in the most efficient manner (to save time wasted between calls and the distance a technician has to drive). Automation can have big benefits, freeing up employees to do other tasks, but you want to ensure that the automation is creating the most efficient solution, and that it’s easy for a human to step in and make adjustments to the schedule board when necessary.

Also, take a look at the scalability of the solution. As your business grows and you add more technicians or additional jobs into the system you want to ensure that it runs as quickly as it did before. The ability for the system to update in seconds as opposed to minutes is important in ensuring that techs have the most up-to-date information.

Start making strategic lists

Before speaking to vendors, build a checklist of features: the needs and nice to haves.

Create a long list of vendors to ensure you are properly evaluating all your options. Then address your needs first so that you can eliminate any vendor that isn’t going to be able to provide you with a solution that will make your business run smoother and more efficiently.

The nice to haves can help you compare overall cost of working with one particular vendor over the other. When you’ve narrowed you’re your long list to 3-5 potential vendors, then use your checklist to compare each individual feature/benefit.

Your field service management vendor is going to be a long term investment, so you want a partner that will grow with you and provide you with the best possible solution for your needs.

If you would you like to learn how the right vendor and field service solution can help you grow your business, by better managing your customer’s changing expectations and still deliver high customer satisfaction, sign up for the January 31 live webinar here

Having undertaken a detailed research project together assessing the use of IoT in field service and also the relationship between IOT and the growing trend of servitization, Field Service News and Gartner field service management magic quadrant leader ServiceMax delivered a webinar exploring the research findings.

You can find links to download the full webinar and the related white paper below but here as a taster is a brief section of the Q&A held at the end of the webinar featuring Patrice Eberline, VP Global Customer Transformation and Kris Oldland Editor-in-Chief, Field Service News

 

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Click here to access the research report

 

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Click here to access the webinar

 

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