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The hyperbole around 3D printing has died down but can it be a viable tool in field service? Aberdeen Group's Aly Pinder takes a closer look

The interaction between the end customer and the field service team is changing quite rapidly.  In the not so distant past of just a few years ago, a technician was solely expected to show up on time. And that on time promise was somewhere between 8 hours and beyond.

This is no longer the environment we all live in. Customers demand answers fast, service even faster, and resolution on their schedules. The service organisation can no longer be reactive, it must have the resources, skills, and visibility to deliver when called upon. And the best service teams can be there before a problem is even detected.

This is all leading to the need for improvement in an often forgotten aspect of field service – spare parts. As noted in previous Aberdeen research, the #1 reason for a secondary truck roll is the technician doesn’t have the right part to resolve the issue.

This seemingly minor hiccup can cause any number of debilitating consequences from delayed resolution, bloated supply chains, hoarding of parts by technicians, and unsatisfied customers.

 

If this isn’t keeping you up night, be sure that your management team is beginning to recognise the enormity of this problem and will be calling you soon to wake you up.

The answer to this problem may be in the form of 3D printing technology. Now, I know this may seem like the chatter of sci-fi movies. But even right now there are some very interesting use cases of 3D printing in our B2B world. And as seen in Aberdeen’s See the Future of Field Service in 3D report, this future is not far off even for the field.

Granted only about 11% of top performers have this technology in place (as compared to even less for peers at 4%), the interest in this technology is growing quite rapidly.

The business case is simple, the cost of technicians hoarding parts to make sure they have what they need is too high and service organisations can’t afford to disappoint customers with a second truck roll because a technician didn’t happen to overstock his/ her truck with that needed part.

For business that have the following profile, 3D printing might be the way to go in the near future:[unordered_list style="bullet"]

• Mission critical field service environment – What is the cost of not fixing the problem for the customer? If downtime can result in millions of dollars lost, it is important to ensure you have the parts needed to solve the problem when the technician is scheduled and sent out.
• Parts are a revenue stream – Some companies have found that spare parts, if priced accurately, can be a lucrative revenue opportunity for the business. If this is the case, it is imperative that the organisation keep technicians from hoarding parts as this is no longer solely a cost issue.
• The cost of inventory is out of hand – Is it worth it for your business to carry parts to fix issues that may not come up that often?  Or maybe, revisions in equipment and parts happen frequently and it isn’t cost effective to carry parts which will be obsolete in just a couple of reporting quarters. 3D printing capabilities for the field team can help organisations cut down the cost of stocking low running parts and ensure the service organization can maintain its profitability goals.Place your list items here

3D printing as of today isn’t the right answer for everyone, as noted by the currently low adoption rates. But when it does make sense from a cost of deployment perspective, I think it can be a game changer in regard to the ability for the field team to always know they will have the right part to solve a customer need on the first time.

 

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 UK manufacturing is re-inventing itself with services as a core element of companies' growth strategies.  In an industry-led initiative, business leaders are seeking input from a wide variety of of companies to help develop a National Strategy for Manufacturing Services.  UK businesses can add their voice to the discussions via a series of free workshops.  Nick Frank, Frank and Partners, explains the strategy and how to get involved.

It is now widely accepted that technology and manufacturing impacts our economy far more than the 10% GDP often quoted. There is another 10% to be found in manufacturing services and probably a lot more, when you look at the full supply chain of support required to keep industry working. With digitalisation starting to enable dramatic changes in business models, products sales are slowly being replaced by services; ‘Power by the Hour’ being the well-known example with jet engines.

But manufacturing and product related services are also facing a chronic skills shortage, which will stifle future growth. If the UK is to prosper, then it must re-think its definition of manufacturing, the skills required and the value it brings. Critical is inspiring a new generation of our best young people to choose a career in industry because they see it as ‘sexy’, fulfilling and lucrative.

These are some of the reasons why leading UK companies such as Rolls-Royce, Bombardier Transportation, Siemens, BAE Systems and Babcock International are pushing for a National Strategy for Manufacturing Services. They are not alone, having teamed up with Ministry for Business Innovation and Skills, industry trade bodies as well as well as thought leaders from Cranfield, Aston and Cambridge universities. The fact that this initiative is led by industry is critical. Industry sees that with the mainstreaming of IoT technologies and the coming of a new millennial generation, which is more technology savvy and attuned to collaboration and networking, a new way to compete needs to be found.

As Dave Benbow, Head of Engineering for Services at Rolls-Royce and co-chair of the initiative passionately puts it;
“Collaborative development of capability in through-life engineering services will be key to future success in a world where technical innovation is demanded in both products and services.”

The truth is that we have to re-invent manufacturing in order to compete in the global market. Recently an excellent article in the Economist, ’How does Deutschland do digital?’ highlighted how Trumpf, a leading global supplier of machine tools, is building a new business vision based on ‘software and data’. The global market for what some call ‘through-life engineering services’ and others would describe as ‘making things work better for longer, delivering lifetime value from products, assets and infrastructure’, is worth over £1 trillion and the UK is estimated to only have maybe 5% of this share. It is clear that this sector will be key to manufacturing productivity and high value jobs in the circular economy of the future.

 

A recent study by Cranfield University revealed that in this market segment, the salaries are generally 55% higher than the UK industrial average! It is clear that with a bit of imagination, Manufacturing has the potential to be very attractive to young people with an incredibly diverse range of evolving well paid careers.

However it is also clear that if the UK wants to do more than just compete, it must be far more ambitious at a National level. As a nation we need to:

• Develop skills and behaviors that encourage the multi-functional and collaborative needs of the future work force
• Innovate better tools and techniques for data integration and analysis
• Create formal standards that enables knowledge transfer across industries and through the supply chain
• Revolutionize the supply chain to adapt to the circular economy

In short we need a National Strategy for the UK, where thinking and language on the specific actions the UK needs to succeed are aligned across the nation. Solutions to this challenge have become possible as the key stakeholders combine behind one initiative to develop manufacturing services as a driver for growth.

Now in a series of workshops led by the EPRSC Centre for Innovative Manufacturing at Cranfield, a series of free workshops are being held across the country to gain your input. We want businesses from the wide variety of industries that make up the UK’s industrial fabric, to talk and describe their needs. You will have a chance to mix with leaders in Services and learn about the business models developed by some of the leaders of UK’s industry. We need your feedback to develop a strategy that is truly representative of UK industry.

If you would like more information on this initiative you can contact Nick Frank,  a member of the steering group, at nick.frank@frank-partners.com or you can sign-up directly on the Through-life Engineering Services website.

 

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In this final part of our series exploring the findings of our research into field service and the potential impact of IoT we look at the key reasons driving adoption of IoT forwards….

If you missed out on the earlier features in this series you can find them at part one, part two and part three respectively

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Actual implementations

In fact we can look further within our data to help us better identify when we will see field service companies embracing IoT on a widespread level by looking at how many companies have indeed already implemented an IoT strategy and how many are currently planning to do so.

Indeed over two thirds (67%) of companies are at the very least ‘actively planning an IoT strategy’, with 15% of companies actually ‘having an IoT based system in place’ and 14% currently in ‘the process of implementing an IoT strategy or solution.’

 

This would indicate that whilst those who stated that they felt IoT was already becoming widespread may be slightly optimistic, in reality we are perhaps three to five years away from IoT becoming a truly common place tool within field service management with only just under a third of companies (32%) not currently planning to use an IoT strategy or solution as part of their field service operations.

Main reasons for adopting IoT

So what are the key drivers for what is seemingly a large appetite amongst field service companies to adopt and develop their own IoT strategies?

In fact there were three key reasons that were cited by our respondents that stood out in our findings. The largest of these was to ‘Improve customer loyalty by improving the service levels we deliver to our customers’ which 68% of our respondents identified as being a major reason for adopting an IoT strategy.

This was closely followed by ‘increasing the efficiency of a field service division’ and ‘reducing costs by moving to a more preventative service model’ which were cited by 62% and 59% respectively. Indeed these three options could be identified as the holy trinity of drivers for investment in field service technology and are quite rightly identified as key drivers regardless of the technology.

 

However, the next group of responses which again were all identified by similar amounts of respondents are perhaps much more   specific to IoT. These were ‘increasing market share by delivering proactive service before the competition’ (43%),’IoT enabling companies to change our business strategy to a servitized, outcome based solutions model’ (42%) and ‘Increasing profits by moving to a more service oriented business model.’

With a high proportion of our respondents backing each of these statements we are also seeing perhaps further evidence of the growing movement towards servitization which is of course often heavily reliant on remote monitoring that comes via the Internet of Things.

Barriers to adoption

Of course we must also explore the barriers to adopting IoT as well and here it seems clear that there are again three major concerns for field service companies looking to develop an IoT strategy.

The first is the perennial fear of twenty first century technology, security. Much like the Cloud there is a worry about being so heavily reliant on the internet especially as it becomes fully ingrained within business critical tools and 46% of respondents stated this was a major barrier to implementing an IoT strategy.

 

Tied heavily to this of course is connectivity.

Whilst for some companies fears around the security of connected devices is a worry, for many others, especially those operating in rural areas actually connecting devices to the Internet in the first place is also a significant challenge and this was flagged up by 56% of respondents.

Finally there is of course the question of the customer. Again security worries remain and 55% of companies believe that their ‘customers would be reluctant to have their devices connected sharing data.’

Conclusion

However, as mobile broadband continues to improve at a rapid pace, connectivity issues will surely subside and whilst the perception of the IoT being a security threat remains, online security is also continuously improving with the likes of Amazon Web Services and recent PTC acquisition Axeda continuing to reinforce online security.

So given that these major fears are likely to fade with time and that there is already a significant groundswell of approval for the use of IoT in field service it seems that it is now perhaps a matter of time before we stop talking about IoT as the future of field service and start seeing it as an integral element within field service operations.

Indeed, the big question for most field service companies is no longer if you will move to IoT but when and what will happen to those who get left behind?

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The latest headline findings from our exclusive research sponsored by ClickSoftware looking at the appetite for the Cloud as a platform for field service management solutions put together in one handy infographic....

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As we continue our series discussing our recent research into IoT and Field Service sponsored by ServiceMax and PTC we look at why there is such a strong undercurrent in favour of IoT…

Missed the earlier parts of this series? Find part one here and part two here

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Belief in the power of IoT

Given then the fact that the majority of our respondents believe that IoT will be the most important technology to impact the way field service companies operate within the next five years, just how critical do companies feel that IoT will be?

Again our respondents showed a significantly positive approach to the importance of IoT when we asked them “What are your thoughts of the Internet of Things and how it can be implemented in Field Service?”

Over half (55%) of our respondents stated they thought “IoT will become a fundamental part of field service operations in the future” whilst a further 21% went further stating that “IoT is critical to any field service organisation’s strategy”.

 

The same amount of respondents (21%) stated that they felt that whilst ‘IoT is an interesting technology and I can see potential applications for it I don’t think it is ready yet.”

This means that 97% of respondents felt that they could at the very least see the potential of the Internet of Things in a field service environment compared to just 3% who stated ‘I don’t see it playing a part in our field service operations’.

Such figures indicate a truly overwhelming belief that IoT is indeed set to lie at the heart of field service as our industry continues to evolve.

Does size matter?

Of course one of the biggest challenges any emerging technology faces in terms of gaining traction and widespread adoption is whether it is accessible for companies of all sizes.

Often it is the case that when a significant new technology arrives it is cost prohibitive for those smaller companies (and often even mid-sized companies as well) to adopt. In field service this has often been negated by the fact that as well as delivering the opportunity to deliver better service for customers, very often technology in field service management can yield significant cost savings as well.

It has long been a key argument for the implementation of dynamic scheduling, tablets and smart phones and telematics for example that x implementation will have paid for itself within y months.

Of course similar arguments can be put forward for the introduction of IoT but for companies that would be looking to retrofit their assets in the field, such an implementation could have a potentially large initial outlay. So has this impacted on whether field service companies believe that IoT is a technology that could work for companies of all sizes?

We asked our respondents “do you think that IoT is more suited to larger companies or accessible to companies of all sizes?” And it seems that on the whole such challenges are not considered sizeable enough to be prohibitive for smaller companies with almost three quarters of respondents stating they ‘don’t think size matters when implementing IoT’.

 

What is particularly interesting is that when we drill down further into the data to look at responses from those representing companies with 50 engineers or less, this figure remains high at almost two thirds (65%) and in fact the number of respondents from this group who state IoT is ‘more suited to larger companies’ remains almost the same as the group as a whole (15% of respondents when looking just at smaller companies vs. 16% of the group as a whole) with a larger percentage of respondents stating they ‘don’t know’.

So it would appear that even amongst those companies with smaller field service teams, the majority believe that IoT could be suited to their business, again further reinforcing the belief that IoT will be part of the field service landscape across companies of all sizes.

When will IoT be common place?

So it seems that there is a general agreement amongst field service companies that the Internet of Things will become a staple part of field service operations. However, where opinions remain somewhat divided is when we will start to see this happen on a pervasive scale.

 

We asked our respondents “when do you think IoT will become common place within field service operations?” And the results were both varied and relatively evenly spread.

The most popular response was that in fact ‘it is already beginning to happen’ which just under a third (30%) of respondents stated. However, the second most common answer was within the next five years which just under a quarter of respondents (24%) stated. “Within the next three years” and “within the next two years” were the next highest answers with 19% and 18% opting for these responses respectively, whilst 5% felt it would happen within the next twelve months.

Of course varying factors such as industry verticals, company sizes and more will impact when we actually see a widespread adoption of IoT so perhaps such differing opinions may be expected here but what is clear is that again the majority do expect to see IoT become common place in field service. In fact just 3% of our respondents stated they ‘don’t think it will happen at all’.

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In the first part of this series exploring our research into IoT in Field Service sponsored by ServiceMax and PTC we explored the growing number of companies moving away from the traditional break-fix approach towards a preventative approach.

However, our findings indicated that whilst this attitude is widespread, achieving a move away from break fix models is harder to achieve than simply updating policies.In fact responses to our research would certainly strengthen the case for Internet of Things being rapidly accepted and adopted amongst field service companies who can see the benefits of proactive maintenance but are unable to deliver it.

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The tech being used today

So as we begin to form a picture of our respondent companies we can see that on the main they have moved towards a proactive

approach that IoT could quite certainly improve and on the whole they are either regularly investing in technology to improve their field service operations or are open to doing so.

I mentioned in the beginning of this report that technologies such as Big Data, Enterprise Mobility and Cloud Computing have evolved together at a similar time to become highly complimentary and the core of what many modern field service management solutions are today.

 

Our next question was included to see what types of technology our industry has already adopted and once again, as has been seen in previous Field Service News research projects there seems to be two clear and distinct groups within field service - the Haves and Have-Nots.

For while over half of all companies (51%) are now utilising Field Service Management Software, with nearly a third (31%) utilising Dynamic Scheduling tools, and just over a fifth (21%) using telematics to manage their field engineers, still almost two fifths (37%) are using paper based systems.

However, the one clear area where companies have made investments in is within mobile computing devices with over two thirds (67%) of companies already utilising some form of mobile computing device for their engineers whether it is a PDA, Smart Phone, Tablet or Laptop.

 

So returning to a perspective of whether as a whole field service companies are ready to turn to a new technology such as the Internet of Things, then it would seem that for many the bedrock of technology required to allow them to truly capitalise on such an implementation is in place.

However there is still a large section of the industry that could be viewed as technologically immature, so whilst the implementation of IoT isn’t necessarily dependant on other technologies, one would imagine that the likelihood of a company investing in an IoT strategy without having already implemented a field service management solution is probably relatively slim.

Yet as the technology continues to evolve, as partnerships such as that of ServiceMax and PTC working together continue to evolve and as disparate platforms become ever more integrated then we will certainly start to see field service management platforms that are built to incorporate IoT become more prevalent, which may give those companies that are currently viewed as laggards a potential quantum leap forward in the way they are utilising technology to deliver service.

Sensor based monitoring

Of course perhaps the most important question when assessing whether field service companies are ready for undertaking an IoT strategy is whether or not they believe they have a product line and install base that opens themselves to sensor based monitoring.

The majority of respondents which was just over two fifths (42%) believe that they do have a product line which would be suitable for sensor based monitoring. This would suggest that there is indeed already a large potential market for IoT amongst field service companies.

However it is also interesting to note that of those companies that didn’t feel they had products that opened themselves up to sensor based monitoring, there were more companies who were not sure if their install base was suitable (26%) as opposed to those who simply stated their product line didn’t open itself up to sensor based monitoring (23%).

[quote float ="left"]The majority of respondents which was just over two fifths (42%) believe that they do have a product line which would be suitable for sensor based monitoring

This opens up an interesting question as to whether there is still a requirement for further education of what is required for Internet of Things to be successfully implemented. How much is possible via retrofitting for example or is IoT wholly reliant on new product development?

 

Such questions certainly provide opportunities for vendors and consultants to help educate those companies who are uncertain about whether the Internet of Things could be of value to them. However, if we bring together the results of the above questions, the opportunity for IoT to become an integral part in the way many field service companies operate is certainly apparent.

So having established that there are a sizeable number of field service companies that could potentially be suited to implementing an IoT strategy, the next big question is of course what is the general perception of IoT amongst these companies – do they see the potential match themselves or will IoT fail to live up to the significant hype surrounding it today?

To help us understand how big the appetite for IoT was amongst field service companies we asked our respondents “which of the following technologies do you think will have the biggest impact on field service operations within the next five years?”Giving them the options of ‘IoT’, ‘Big Data’, ‘Smart Glasses’, ‘Augmented Reality’, ‘Connected Vehicles’ or ‘Other’.

Here there was a clear winner and it was indeed IoT which 45% of our respondents stated would have the biggest impact. In fact this was more than double the second most popular option which was Big Data (19%) closely followed by Connected Vehicles (cited by 15%). Interestingly Augmented Reality, which like IoT could also have a significant impact on field service beyond simply improving efficiencies was only cited by 10% of our respondents as being the technology most likely to have the largest impact on field service, perhaps due to the relative immaturity of the technology on display to date.

It was also interesting to see that despite some very interesting potential applications being produced that again could lead to huge potential savings for field service companies, that smart glasses registered with only 3% of our respondents. A large factor here being the perceived failure of Google Glass perhaps?

 

Interestingly of those respondents that added additional comments within the ‘other’ section there were a number of respondents who admitted that they remain unsure as to what technology will have the most impact with one respondent commenting “I’m not convinced that the industry yet knows what the next big thing will be. Our industry is still coming to terms with the improvements in smart phones and understanding the tangible benefits that can be gleaned from modern apps and lowering data costs.”

This adds some interesting further insight into the fact that whilst for some field service and technology are becoming increasingly entwined, for many companies in the market there is still a cautious approach to allowing technology to redefine the way we do business.

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Field Service News Editor-in-Chief Kris Oldland looks looks at why the Internet of Things will soon evolve into the Industrial Internet and why it will have a huge impact on the way we face field service operations in the very near future... 

 

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It was only fairly recently that I first came across the phrase Industrial Internet...

If I’m a hundred percent honest I didn’t really know what it meant and had to have it explained to me. For those who like me hadn’t stumbled across this phrase before it’s basically a new name for the Internet of Things.

Or more specifically the application of IoT in a business driven environment, as opposed to the consumer world of smart home that IoT has now become synonymous with. Given that whilst utilising the same technology the discussions around IoT enabled Smart Homes is going to be very different to those around the application of IoT in industry then I guess it makes sense.

It’s probably also a sign that IoT is growing up. The first examples of IoT I came across were all predominantly novelty stuff. I remember being at a technology and marketing conference a few years ago and a company had a machine called Bubblinho on their stand. Basically it was the worlds first IoT based Bubble Blowing Machine.

I distinctly recall thinking at the time how it was all very clever if a little bit pointless.

Around the same time I remember reading about a man who created a device that could allow him to feed his dog a dog biscuit by tweeting. Again very clever, but if your going to be away from home so much that you need the Internet of Things to feed your poor pooch then your not exactly the world’s best Dog Owner are you?

Yet those who know me, or indeed read my column will know that I am a huge proponent of IoT when it comes to its application in field service. I genuinely think that it will be a game changer. Not only that but I think that IoT (along with Augmented Reality) will be the technology that truly reshapes the way field service companies operate forever.

In the not too distant future companies will look back at pre IoT workflows in wonderment at just how we got along. Much like we look back today and try to remember what we did before mobile phones became prevalent.

So for me if changing the name of IoT to Industrial Internet is a sign that IoT is starting to mature then so be it.

And the fact is that it definitely has matured, and is taking seed within the field service industry.

Without giving too much away the evidence is clear in our research report (page 29) this issue, which just so happens to be assessing the appetite for IoT in field service.

The implementation of IoT is no longer just theory. It is happening and it is happening now. The shift from exciting emerging technology to a standard technology everybody is focussing on has been swift and no where was this more evidence than at the recent Field Service Fall event held in Atlanta, Georgia.

 

Throughout the three days of the conference there were vast numbers of presentations, round-tables and just general chat in the breakout sessions all centred on the capability of IoT to change the way we operate our field service divisions.

Yet according to Jonathan Massoud, Divisional Director & Market Analyst, with conference organisers WBR, this time last year folks were still just about getting their heads around the concept. (Read more here)

This year, it seems it is full steam ahead for a large number of companies, and those who aren’t currently implementing a IoT solution are on the whole starting to build their own IoT plans.

Of course one of the most exciting partnerships in this area at the moment is that of ServiceMax and PTC and between them I’m quietly confident that they can produce some fantastic IoT enabled FSM solutions.

In fact reference to IoT is peppered through this issue although not necessarily by design. Regular contributors Nick Frank of Frank Partners and Sumair Dutta of The Service Council both focus on IoT in their expert views this issue. It seems that everywhere we turn in our industry the Internet of Things is at the forefront of peoples minds.

The Age of The Industrial Internet is most definitely upon us and as with any change we must either embrace it or be left behind by those that do.

 

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In this the first part of a new series Kris Oldland, Field Service News Editor-in-Chief explores our exclusive research into IoT and Field Service undertaken by Field Service News and sponsored by ServiceMax and PTC...

 

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We are seemingly blessed to be living in a time of such incredible advancement. Technological trends such as Big Data, Enterprise Mobility and Cloud Computing have all pushed businesses forward and often we see these three coming together in the latest field service management systems, where data is easily collected, interpreted and distributed across a business eco-system.

Such systems give engineers instant access to knowledge bases, managers continuous overviews of the performance of their teams and most importantly of all, customers an ever improving customer experience. However whilst the opportunity for improving business processes these technologies present is clear, when it comes to potential for real, genuine industrial revolution, there is another emergent technology that promises to be king and that is the Internet of Things.

Whilst the massive hype that surrounded Big Data meant that the early projects we are seeing today are perhaps a slight anti-climax, (BI on steroids - which is undeniably useful in business but just not quite the life changing scenarios that were being bandied about back in 2013) with IoT almost the opposite is true.

There seems to be less confusion around IoT, which given it’s much more tangible nature makes sense, but have we grasped the magnitude of how big an impact it could truly have on field service industries? To try and understand a little more about the general attitude to and application of IoT amongst field service companies, Field Service News has partnered with ServiceMax and PTC on this research project looking to ascertain just how ready we are in field service for IoT.

About the research

The research was conducted across a period of 6 weeks during August and September this year. Over 100 field service professionals contributed to the research with respondents from both the operational side of business (field service directors/managers etc) as well as senior IT representatives (CIO/CTO etc.) participating alongside business leaders (MD,CEO etc.)

We had a variety of company sizes ranging from those with less than 10 field workers through to those with over 800 field workers, with a fairly even split across these groups so there was fair representation of opinions from companies of differing sizes.

Also whilst there was a slight UK bias in respondents, there were also respondents from India, Ireland, The Netherlands, Italy, Spain, Germany and the USA so there was a mix of nationalities amongst the respondents as well. Before we began looking at the appetite for IoT amongst our respondents we first wanted to see if companies were actually well placed to benefit from adopting an IoT strategy.

 

To do this we needed to assess where the companies in our group were in terms of their approach to technology in general as well as how they approached their own service delivery.

Of course with the introduction of any new technology there will always be laggards and there will always be bleeding edge adopters and if there was a bias amongst our respondent group either way this should be taken into account when exploring other responses and trends identified within the research. Therefore the first question we asked our respondents was “How regularly does your company invest in new technology initiatives to improve field service operations and performance” and we gave our respondents the choices of every year, every two years, every three years, every five years or other.

It would seem our group was on average representing a slightly forward looking set of companies with 35% stating they would invest in new technology an annual basis. Meanwhile 13% stated they did so every two years, 17% every three years and 16% five years. A number of respondents also commented that their company’s investment in technology was slightly less strategic and on more of an ad-hoc basis although members of this group also stated ‘recently the investment in new technology is being increased’

Predictive or reactive?

The next question we asked in this initial section was whether our respondents were working for a company that is either adopting a pro-active or reactive model in terms of their field service planning.

Again this will be a good indicator of how ready field service companies are to adopt IoT as one of the significant factors in why IoT is predicted to be such have such a major impact, particularly in field service, is that it can be the key for companies moving away from the traditional break-fix delivery of service to a more efficient preventative maintenance approach to delivering field service.

 

Indeed it seems that the majority of field service companies do see the benefits of moving towards delivering service in a proactive rather than reactive manner, in theory at least. Whilst the same amount of companies (6%) stated they were either “Fully pro-active with a mix of predictive and preventive maintenance, enabled by remote monitoring and M2M diagnostics” or “We are mostly pro-active using both predictive and preventive maintenance strategies but still have a small percentage of reactive calls.” The largest group of respondents by a long way (44%) stated they “operate a proactive strategy where possible but are still mostly reactive.”

Meanwhile almost a third of companies (31%) state that their “service is half proactive and half reactive” whilst only a small fraction of companies (4%) were operating on a wholly reactive strategy. This would suggest that the perceived wisdom that field service companies should be moving away from the traditional break-fix reactive approach to a more proactive approach, which is better for service providers and their customers alike, is being adopted by the industry at large.

It also indicates that whilst this attitude is widespread, achieving a move away from break-fix models is harder to achieve than simply updating policies. In fact responses to this question would certainly strengthen the case for Internet of Things being rapidly accepted and adopted amongst field service companies who can see the benefits of proactive maintenance but are unable to deliver it.  

 

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In the first part of this feature we looked at the ever growing importance of technology in field service and asked if Big Data or Enterprise Mobility will prove to be the key technology that drives field service forward. Now in part two Kris Oldland, Editor-in-Chief puts forward the case for Cloud computing and the Internet of Things... 

There is no doubt that Big Data will have a huge impact on field service like it will on almost every vertical. However, then there is the Cloud, a technology almost that a whilst again gradually becoming pervasive within the world of industry, is almost perfectly suited for the often unique demands faced by field service organisations.

Certainly the rapid rise of field service software provider ServiceMax is clear evidence of the industry’s need for and appetite for cloud based field service management systems. The ServiceMax story is one of dramatic and rapid success.

In an industry where the combination of huge amounts of coding to develop a product robust enough to be deemed suitable for ‘mission critical’ operational control sits against relatively low costs per user (in comparison to other IT led products) it is almost impossible for new vendors to penetrate the space. Yet ServiceMax have not only done so but have rapidly established themselves as a leading player within the market within a space of even years.

Indeed ServiceMax’s phenomenal growth is in part tied to their strong relationship with Cloud pioneer Salesforce.

In an interview with Field Service News, ServiceMax COO, Scot Berg commented “If you think of what it would have taken for us to launch a data centre and secure it, to build all the platform capabilities and redundancy, also that some of our first 12 customers were in the Middle East and Europe and there we were with two founders selling everything themselves out of northern California… how could that be right?”

“All because of the global reach and the global acceptance level of the Salesforce.com platform. So yes it was very important early on.”

However, whilst their relationship with Salesforce.Com undoubtedly opened doors for the California company, the truth is the appetite for Cloud as a platform for field service management systems was clearly there and not being fully exploited.

[quote float="left"]As with mobile computing there is a strong argument to be made for the Cloud being the technology to have had the biggest impact on field service in recent times.

 Our own recent research into the Cloud highlights this also with 86% of field service companies either being on, or considering a move to the Cloud for their next iteration of their field service management software.

 

So again as with mobile computing there is a strong argument to be made for the Cloud being the technology to have had the biggest impact on field service in recent times.

However, perhaps the most sensible viewpoint would be that it is the emergence of all three of these technologies at the same time that is the true driving factor behind the development of new field service management solutions that are driving ever greater efficiencies and productivity levels amongst field service companies. Indeed the most sophisticated current field service management systems all boast inclusion and utilisation of Big Data, Enterprise Mobility and Cloud computing.

Yet there is one other technology that has the potential to surpass the impact of all three of the above combined.

For while Big Data, Cloud and Enterprise Mobility have allowed field service companies to optimise their work-flows, it is the Internet of Things, that has the potential to completely realign those workflows, changing the dynamics of field service forever.

The often cited holy grail for field service companies is ‘the first time fix’ and as more and more devices in industry become connected (Gartner predicts 25BN connected devices by 2020) the impact of IoT on Field Service will be truly massive.

Why? Well, connected devices allow field service companies to move away from the costly traditional break-fix model of the past and into a far more efficient preventative maintenance model.

 

Yet unlike, preventative maintenance plans of ‘dumb’ or non-connected devices, which require often unnecessary scheduled checks by a field service engineer, preventative maintenance of connected devices will mean that not only will engineers only be sent out to provide maintenance when a fault is detected but they will, in the main be sent out to that particular job with an understanding of what the fault is, and with the tools or parts they need to complete the job.

With data being provided by the device itself to indicate that a fault is developing, the engineer can not only arrive armed in advance with the knowledge of what that fault is, but also will in many cases be able to rectify the fault before it escalates to a point where the device reaches critical malfunction that stops it from carrying out it’s function.

So not only will field service companies be able to direct their engineers to the most critical jobs, not only will the engineers spend less time resolving each job (with first time fix rates soaring) but also crucially companies will be able to deliver far greater up time to their customers.

This in turn can lead companies to adopting an outcome based solutions approach, whereby they are no longer selling a product and then the maintenance of that product, but selling a solution. There are of course numerous examples of companies adopting this business model, perhaps the most famous of all being Rolls Royce’s Power by The Hour contact whereby they no longer charge a flat fee for a jumbo jet engine, but instead charge for every hour one of their customers’ planes is in flight.

This is of course a seismic shift in business thinking and one that puts field service at the very heart of businesses operations if it is to be successfully deployed. Yet through the advent of IoT it is becoming a more and more plausible and attractive route - one of the key arguments for moving to what is referred to as a Servitization business model is greater profits.

 

So whilst the big three of Cloud, Enterprise Mobility and Big Data have helped field service reach new heights of efficiency in the form of modern field service management solutions, IoT truly has the potential to redefine the way our businesses operate on a fundamental level, and it’s impact will not only improve field service operations, but also place that at the centre of this new industry paradigm.

 

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