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The Internet of Things has certainly gained momentum recently but what does it mean to the Field Service Industry? Kris Oldland, Editor of Field Service News looks at how it could impact the industry and at a first generation of IoT field service software from Core Systems

Internet of things 101

According to the Gartner Hype Cycle for 2013, the Internet of Things was sat just below Big Data, nearing the peak of inflated expectations that emerging technologies inevitably go through. Indeed just as Big Data seemed to be the key item on the agenda in corporate offices around the world this time last year, so the Internet of Things is doing the rounds currently. So what exactly is it and what exactly does it mean to the Field Service industry at large.

Well the term Internet of Things (IoT) was first coined some 15 years ago having been proposed by British technology pioneer Kevin Ashton and largely does what it says on the tin. In a famous article for RFID Journal Ashcroft outlined the concept explaining:

“If we had computers that knew everything there was to know about things—using data they gathered without any help from us—we would be able to track and count everything, and greatly reduce waste, loss and cost.”

The idea itself is fairly simple. If we give the ordinary items that surround us the ability to essentially communicate with the world without the need for human input, the world would run just that much smoother.

With RFID (Radio Frequency Identification) essentially the ability has existed for a while for such data transfer although other tracking technologies such as NFC (near field communications) digital watermarking, low powered Bluetooth, QR codes and their humbler, older cousin the barcode can also provide the same solution.

In reality there have been two key developments that have propelled the IoT into existence.

Firstly with the latest Internet protocol IPv6 there is now room for the Internet of Things to exist. Whilst it sounds crazy, the previous protocol IPv4 just isn’t big enough and we are running out of Internet. Given that an estimated 26 to 30 Billion devise will be connecting wirelessly to the IoT within the next six years, we need somewhere these devices can call their digital home, the newer larger protocol of Ipv6 is just that and has evolved a  somewhat symbiotic relationship with the IoT.

Secondly there is the rise in smart devices such as mobile phones. These can take the role of translator between ‘dumb’ devices and the internet. Whilst the hyperbole surrounding the IoT may seem futuristic, with domestic appliances being given intelligent capabilities, the reality is that the days of ‘smart fridges’ that keep in touch with your supermarket of choice to make sure you never run out of milk being in every home are still a little way off.

However, a simple QR code placed on the front of your current ‘dumb’ fridge could give it a digital life of it’s own via your smart phone. Access to user manuals, serial numbers, replacement parts and communicating with local service engineers are suddenly possible and an early stage in the IoT amongst the general populous is very quickly becoming reality.

Internet of Things and Field Service

It is along just these lines that Swiss company Core Systems have evolved their product to date.

Whilst offering many of the features you would expect from most modern Field Service software solutions, including some neat dashboards, plenty of employee data, inventory management etc, they have also included IoT functionality.

By including a QR code or other tagging device on their products, ‘Core Systems ‘ clients are able to to offer their customers a first generation IoT interface via the cloud based CoreSuite, CoreSystems’ field service platform. End users are thus able to use their smart phone as a bridge between the ‘dumb device’ and the service company.

This allows customers of the service company to use their phone to schedule a service visit, providing an additional channel of communication alongside more similar methods such as phone, email and webchat. Also the same interface provides the opportunity for increased customer maintenance by putting machine specific information in the hands of the customer, resulting in fewer service calls for basic issue resolution.

Similarly it is not just the customer who benefits from this bank of machine specific knowledge. Should an engineer be required to attend a site, he to is able to gain access to information relating to the faulty machine including its maintenance history, in a quick, efficient and simple manner.

In the not so distant future…

Admittedly beyond the IoT element CoreSuite doesn’t break the mould of many of the other cloud based field service management software systems that are available, this first iteration of IoT based field service management system undeniably offers companies the ability to add the wow factor to their approach to service.

However, it is perhaps the next few generations of this technology that will be truly intriguing to the field service industry. As manufacturers turn to developing smart devices from jumbo jet engines through to white goods, machine to machine diagnosis and preventative maintenance will become the accepted norm and so IoT based field service management systems will in turn become more in demand.

If this proves to be the case then Core Systems are well positioned to become a major player in the field service software industry and have made an early start down an exciting and promising path.

Want to know more? Visit this years Service Management Expo where Field Service News Editor Kris Oldland will be interviewing Core Systems CEO Phillip Emmenegger on the rise of IoT and its applications in Field Service, as part of the programme for the Field Service Solutions Theatre, hosted by Field Service News.

 

 

The field service industry continues to evolve at pace. New technologies are constantly emerging which have the potential to change the industry as we know it.

At the same time we are seeing a huge cultural shift with many seeking to realign their service division from cost centre to profit centre. To help us keep up with these changes Field Service News has put together a panel of five field service industry experts and asked them each to share their insight on the industry today. The third member of our panel is Mark Forrest, of Trimble Field Service Solutions

 

What is the biggest driver for change in field service today?

Many companies managing a large field service workforce operate in industries which require highly skilled individuals, whose work is variable and complex in terms of location and task. Add in a high degree of compliance-focused work and that means that field service work has become increasingly mission-critical in terms of timing, skills and consequence. With increased customer expectation it is important that companies ensure that their field service is not derailed by unpredictable dynamics of the working day.

An increasing number of organisations are beginning to realise that it isn’t where the vehicle is that’s important, it’s where the engineer or field service worker is and what they are doing that is of paramount concern, as ultimately they are the ones providing the service to the customer. The support of solutions to help manage work efficiently and effectively has therefore become integral in helping to meet customer demands and achieve service delivery excellence.

 

Which technology has had the biggest impact on the field service industry in the last 5 years?

Organisations with field service technicians have previously struggled to effectively schedule their work and track their progress to continually meet service commitments. Indeed, one in ten organisations still collect data from the field via paperwork. However, work management technologies have emerged to transform the productivity of mobile workforces through intelligent scheduling tools and performance management analytics.

Organisations can measure, manage and improve their operations through optimising resources, offering real-time visibility and monitoring and giving warning of tasks at risk or showing the impact of work allocation decisions.

Data obtained from such technologies can be analysed through performance management analytics to allow interrogation of the information to provide an understanding of the performance, trends and the barriers in line with business targets. The analysis drills down to different variables around individuals, teams, regions, job type etc. and can be provided to different stakeholders within the organisation depending on their business need for day-to-day management or longer term business planning.

 

What is the most important consideration when moving from cost centre to profit centre? 

Field service has evolved from what was once an operational necessity to a strategic significance, as the technician may now be the only contact a customer has with the company and therefore exposure to the company’s service delivery and brand. With a proven link between customer satisfaction, retention and profitability, how the technician interacts with the customer can be significant in the customer experience.

The most common customer complaint is when a technician does not resolve the issue first time. Making sure you get the right people with the right skills with the right assets to the right place within a set time is therefore essential. Work management technologies can help by incorporating technician knowledge, parts availability, and capacity into scheduling processes to ensure that the technician arriving on site is the person who can resolve the issue first time.

In addition, employing mobile workers who have the ability to upsell or cross-sell products and solutions whilst with customers can also make a difference to service delivery as a cost or profit centre.

 

Who is Mark Forrest? 

Mark Forrest is general manager of Trimble Field Service Management, a position he has held since January 2012. In this role, Mark is responsible for providing worldwide mobility-based productivity solutions to the communications, field services and trades markets.

Prior to joining the Field Service Management division, Mark served as general manager and Chief Operating Officer for Caterpillar Trimble Control Technologies (CTCT), a joint venture between Trimble Navigation and Caterpillar. Mark also has served as the general manager and worldwide sales director for the Heavy and Highway Division. A native of Australia, Forrest holds an undergraduate diploma in Engineering Surveying and a Masters in Business Administration from the University of Colorado.

To read this full panel debate and much more download a free digital copy of our quarterly magazine. Click here to register.

 

Welcome to the third edition of our Field Service News podcast. This month we are joined by Strategies for Growth's President and Principal Consulting Analyst Bill Pollock. 

In this exclusive interview Bill talks extensively about his most recent research project which he undertook across the last six months of 2013 and drills down to explore those companies that are operating at a best-in-class level and what separates them from the rest of the pack.

This podcast is also accompanied by a fantastic white paper written exclusively for Field Service News by Bill and you can download both of these excellent resources for free by simply clicking the link below and filling out a brief registration form.

 

Click here to get the full podcast and accompanying white paper for free now!

 

In theory field service would seem to be an industry that could benefit greatly from the cloud. The ability to give remote access to systems for mobile workers is obviously advantageous to an industry that by its very definition has a high percentage of its workforce on the move.

But has the field service industry leapt into the cloud feet first, or is there still some reluctance until the technology proves itself robust enough to be trusted with service management systems?

Across the last few months Field Service News in partnership with Tesseract have undertaken a research project, which aims to take a measure of the appetite for Cloud based software and the Software as a Service distribution model within the field service industry.

Read our executive summary below or download the full white paper for free by registering on this link 

 

On Premise versus Cloud in field service today:

The first major insight from the research is that despite Cloud and SaaS becoming more widely understood as a concept, as far as the headline numbers are concerned currently those companies that have placed there field service management systems in the Cloud remain in the minority. In fact currently 77% of companies are still using an On-Premise solution with just 23% having actually moved their field service software to a Cloud based platform.

At first glance this may seem somewhat of a surprise. We have been hearing things about the Cloud, good and bad, for quite a while now. Salesforce.Com the Grandaddy of the Cloud who pretty much single handily made a mockery of computing giants such as Oracle and SAP’s dismissive stance towards SaaS as a passing fad, are now a ripe old 15 years old. The cloud’s been around for long enough to take route by now hasn’t it? One argument could be that actually fifteen years isn’t that long, especially when we take into consideration that it took a few extra years for the first browser based service management solution to appear (Tesseract’s Service Centre 4.2 in 2001) and also as all service management software previously had been purchased on a pricey CAPEX model then the life cycles of these systems were understandably relatively long.

The shift to a new, emerging technology will likely be weighted towards a slower start in such an environment. Actually we can find further evidence of this when we look at exactly how long those companies who are currently using an On-Premise system have been using that system for. The vast majority (60%) have been using their current system fro at least three years so this would certainly seem to correlate with this theory. In fact just 18% of On Premise solutions are recent implementations (within one year). A slightly larger amount 22% of systems are between a year and three years old.

However, it is when we look at the next question we asked of those respondents using an On Premise system “Are you likely to consider a SaaS/Cloud solution when you next update your service management system” that we start to see some genuine evidence that the shift to the Cloud is starting to speed up. Of those companies currently using an On-Premise solution just over half 53% have stated that they are considering a move to a Cloud based solution in the future. With 47% stating that they will not consider the Cloud for their next iteration of field service management solution.

If this figure remains true and there is a conversion from those ‘considering’ the Cloud to those adopting the Cloud then within a period of perhaps three to five years, by when most companies will have moved onto next generation platforms, it is highly likely that we will see an almost 180º switch in the ratio of On Premise to Cloud systems being in place with SaaS becoming the dominant model for software distribution within the field service industry. Whilst the shift may be slow initially, it would seem that when it does happen it could be quite dramatic.

 

The benefits of Cloud in field service

So what exactly are the benefits of Cloud based service management software to merit such a dramatic shift? We asked those respondents that were already on a Cloud based system what were the reasons they chose to choose Cloud over an On-Premise solution, asking them to indicate if any of the following reasons were important to them. The benefits we listed were: more affordable pricing model, scalable solution, disaster recovery, easy remote access, speed of going live, less reliant on IT department.

The results were interesting in that perhaps they did not conform to what are often seen to be the key USPs of Cloud based solutions. Of these options easy remote access was the most popular reason cited with 61% of respondents indicating this was an important factor to them. The second most popular benefit was the fact that Cloud solutions are scalable with 54% of those surveyed ticking this option. Often the most heralded benefit of the SaaS distribution model is that it makes expensive solutions more affordable.

However, this was only the joint fourth most popular option tied with another benefit that we regularly see being championed i.e. the speed of going live. With just over a quarter of respondents (28%) indicating that these were important factors to them. When we look just at companies with the smallest category of mobile workforce (under 50 field engineers) we do see an increase to 35% of companies that cite affordability as an important reason for choosing SaaS, yet again it remains only the fourth most popular choice. The conclusion to be drawn from this is that whilst the fact that a SaaS model does of course offer a more affordable payment model, it appears that it is the other benefits that enable improved efficiency in the mobile workforce that mostly attracted these early adopters.

But what about the actual benefits that are being seen by those using a SaaS service management system? Beyond the hyperbole and marketing speak what are the benefits that genuine field service companies are experiencing in the real world?

So as to not to colour the results in anyway around this critical question we opted to leave the response to the question ‘What has been the biggest benefit to your company since moving to the cloud” as a open text response. This has given us a truer understanding of what the key benefits to Cloud based field service software were.

The most prominent benefit that stood out was the general performance of the systems themselves alongside the ease of updates. A quarter of all responses (25%) were grouped around the fact that by having a system that was easy to upgrade respondents found they were essentially getting a regularly improved and refined piece of software so performance levels remained above those that they had experienced previously. The other most significant benefit was in fact the cost which also was listed by 25% of the respondents. So whilst cost may not have been as high as anticipated as a reason to initially opt for a SaaS model, it would appear that once the decision had been made, the more manageable payment methods of SaaS did indeed shine out as a key benefit of the model. This would be particularly relevant for those companies whose service division operates its on P&L of course.

Speed was also a regularly used term word amongst the responses. In the main the reference was to the speed and ease of set up however the speed of information flow between field engineers and head office was also raised as a key benefit. Speed alongside the term ‘ease of use’ was both common terms that appeared in 13% of all responses. Other benefits that are worthy of mention are increased mobility, scalability and flexibility including being able to put multiple countries onto the same operating system easily and the easy accumulation of data via remote access in one source.

However, certainly the greatest acid test of how successful the Cloud has been in terms of delivering field service software to those that have taken this path is whether or not they would recommend a similar move to others. In this instance it would certainly appear that the implementation of Cloud for those field service companies that have made the move has been an overwhelming success with 90% of companies that are currently using a Cloud based field service management solutions stating they would recommend doing so. Such a majority is certainly a powerful statement to the positive impact of the Cloud for those field service companies that have been early adopters and embraced the technology.

 

Yet some many remain unconvinced

So it is evident that those who are working with a Cloud based solution seem to be satisfied having made the change and it also seems that many of those still using an On-Premise solution are actively considering a move to the cloud when the opportunity to upgrade there service management software next arises. Yet there is still a sizeable amount of companies (circa 30%) that are not considering the Cloud at all.

Why exactly is this and what fears do they have? We asked those respondents that indicated they would not be considering a Cloud based solution to identify the key reasons they did not feel comfortable with the cloud. Perhaps somewhat unsurprisingly the leading reason cited was Security. Front-page news stories about the lack of security in the Cloud continue to cast doubt it seems as 47% of companies that are not considering the Cloud still cite security as a key fear. Concerns around connectivity and issues integrating issues with existing legacy systems were also both common objectives with 34% and 37% of companies respectively indicating that these issues gave them cause for concern around a move towards the Cloud. What is interesting is when we compare these issues with those that are currently operating a Cloud based service management solution these fears do not necessarily match up to the reality. In fact when looking at the issues that those who are using the Cloud have actually encountered we actually see the reverse of the above.

The most common issue with the Cloud has proven to be connectivity issues, which 60% of companies using a Cloud based system have experienced problems with. The second most common issue is then integration with existing systems, which 40% of companies have faced. Security in fact ranks the lowest of the issues cited by companies using a Cloud system with only a quarter of companies having had any issues in this area whatsoever. Looking further at those companies that are not considering a Cloud solution, it is interesting to note that whilst the large majority (72%) have not implemented Cloud systems in any area of their business, a still sizeable 29% of companies did have at least one element of their business requirements based in the Cloud.

This initially seems odd as with a clear benefit of Cloud being ‘easy remote access’ it would seem a perfect bedfellow for the field service systems and therefore one might assume, one of the first systems to be moved into the Cloud. However, when we look at the reason given for why respondents felt Service Management software in particular should still be held On Premise the majority of respondents (70%) identify integration with existing systems as the main reason why they believe they need to keep their systems out of the Cloud. Essentially as service management systems are so core to company’s operational efficiencies, for some it simply isn’t worth the risk of moving to a system that cannot be easily integrated into wider business systems.

For those more conservative companies that would prefer to see a technology fully established and road tested before committing to it, connectivity issues between the Cloud and existing systems to still remain so it could be prudent to hold back for the near future, until these issues are fully resolved. However, of course the longer a company waits to take advantage of the benefits of a new technology, the greater risk they are in terms of falling behind the rest of the market in terms of efficiency and translating this into better service standards.

 

Conclusion - SaaS will eventually become the norm in field service

Whilst at the current time Cloud computing has yet to take a firm hold amongst the majority of field service companies, with most companies still using an On-Premise system, it would certainly seem that there is a definite shift towards the Cloud and the SaaS model and that shift is starting to gain momentum. If those companies that are currently considering a move to SaaS do actually make the transition, then within the next few years we could see a complete reversal in the ratio of companies operating On Premise systems versus those operating on Cloud based solutions, with Cloud becoming the dominant platform.

The benefits of Cloud are numerous and well suited to field service, with the ease of remote access being the key factor for companies either considering moving to the Cloud or those that have made the move already. Wider benefits such as the more affordable pricing structure of SaaS, the speed of implementation and less reliance on IT departments also of course are attractive factors to field service companies also. The biggest issue that has slowed the adoption of the Cloud in field service to date is the perception that security is a major issue for Cloud systems.

However, in reality this has not proved to be the case for those field service companies that are actually operating in the Cloud. Yet these doubts still remain and perhaps it is a matter of the technology having to continue to prove itself secure over a longer period of time for these to abate fully. At the same time the biggest issues felt by those using the Cloud are possibly likely to be resolved by surrounding technologies in the near future. Connectivity, which is the largest problem facing companies with a Cloud system for example will ultimately ebb away as serious issue as mobile internet standards continue to increase.

Within the UK for example all of the major providers are required to meet 90% 3G coverage of the UK as part of their contracts with UK Government by this summer. Currently the only provider to have fallen short of this target is Vodafone who offer 3G coverage to 88.5% of the UK. Of course with 4G now being rolled out this situation will only continue to improve.

When we consider that there is a building appetite for the Cloud in Field Service Industry, the key fear around the Cloud (security) is proving in reality a far less common issue than the perception would have us believe and that the most common issue being faced by those currently using the Cloud is potentially going to diminish naturally as internet coverage becomes ever more widespread it would seem that the Cloud is set to become an established platform for field service technology, and even ultimately become the most commonplace method.

 

Want to know more? Download the complete white paper based on this research for free by clicking this link

 

This research was undertaken in partnership with Tesseract. Find out more about Tesseract in the Field Service News Directory here

 

 

 

The field service industry continues to evolve at pace. New technologies are constantly emerging which have the potential to change the industry as we know it.

At the same time we are seeing a huge cultural shift with many seeking to realign their service division from cost centre to profit centre. To help us keep up with these changes Field Service News has put together a panel of five field service industry experts and asked them each to share their insight on the industry today. Second in the firing line is Paul White, CEO mplsystems

 

What is the biggest driver for change in field service today?

It’s all about customer expectations, today’s smart phone empowered customers expect immediate service when they want it - or they’ll switch. Delivering field service is no longer just about dispatching resources. Instead the focus is on delivering end-to-end customer service targets and reacting to changes in real time. However the reality for most organisations is still a proliferation of disconnected systems and processes that make it impossible to monitor and deliver true end-to-end service. Systems integration simply won’t fix this for most organisations, it will just result in inevitable manual data fill and mistakes – and an inability to deliver the reactivity and service that customers demand.

 

Which technology has had the biggest impact on the field service industry in the last 5 years?

The ability to deploy affordable field service apps on standard mobile consumer smart phones and tablets rather than expensive dedicated devices has had the biggest impact, enabling an entirely new generation of connected field service solutions. You can now equip field staff to support customer engagement activities, track on-site attendance and feed back into HR, monitor time in the field for improved financial management, as well as provide specialist telematics services - all via flexible smart phone apps. However, these will still require integration to avoid the kind of piecemeal approach that inevitably leads to efficiencies, with vital customer data getting stuck in individual departments.

 

What is the most important consideration when moving from cost centres to profit centres?

Turning field service from a cost centre into a profit centre demands an end-to-end approach that’s reactive to customer requests and strengthens loyalty by driving out errors. This then empowers those people who spend most time with your customers – your field service staff – to identify and action the right cross sell and upsell opportunities with your loyal customers. An engineer fixing the lighting, for example, may notice that an air conditioning system also needs work – so it’s important that they have the sales mechanisms in place to immediately recommend and action repairs.

 

Who is Paul White? 

Paul White joined mplsystems as Chief Executive Officer in May 2005. Paul has spent the last 20 years working in and around the Field Service and Contact Centre industry and is one of the industry pioneers in the creation of affordable service management and CRM and Customer Service contact centre solutions. Prior to joining mplsystems Paul was the founding CEO of BT Contact Central, which, over 4 years, grew into a global business across UK, Europe and Asia Pacific. Whilst at BT, Paul was responsible for designing some of the largest CRM and Customer Service solutions in Europe and had major roles in systems architecture, product management and sales.

 

To read this full panel debate and much more download a free digital copy of our quarterly magazine. Click here to register.

 

 

 

 

The field service industry continues to evolve at pace. New technologies are constantly emerging which have the potential to change the industry as we know it.

At the same time we are seeing a huge cultural shift with many seeking to realign their service division from cost centre to profit centre. To help us keep up with these changes Field Service News has put together a panel of five field service industry experts and asked them each to share their insight on the industry today. First up is Ian Mapp, Director with Wyser Stewart...

What is the biggest driver for change in field service today?

Field service has always coped with constrained resources – in terms of manpower and investment in spare parts inventory - and the recent harsh economic times have been very tough for many, both OEMs and independent maintainers. Those now poised to grow have continued to invest through the downturn, particularly in skills development, and that will now enable them to out-compete others.

With no money to waste themselves, customers are more demanding in the standards they expect and less tolerant of poor performance. This has accelerated a trend already entrenched for a number of years. Plus, bad news travels further and faster than ever via social media. Equivalent stories about exceptionally good service (they do exist!) do not travel as far or as fast. Service organisations will have to learn to live in this unbalanced environment, obsess about quality and focus on protecting and communicating hard-won reputations. It as a discriminator when customers choose suppliers.

Which technology has had the biggest impact on the field service industry in the last 5 years?

In my opinion, it is all about the mobility revolution. Specifically, the intersection of two trends. The higher adoption of mobile devices by service organisations, and the explosive growth of smartphone usage amongst customers – 72% of the UK population according to a 2013 Deloitte survey, up 14% in just 10 months. The result of near ubiquitous use means more enthusiastic acceptance by technicians and engineers of a mobile device as an integral part of their everyday work. Maybe “grudging acceptance” is still more prevalent than “enthusiastic acceptance” in some organisations and industries!

Once upon a time, and not that long ago, mobile devices – typically ruggedised – were seen as the sign of a tech-savvy, forward-thinking service provider. Today, that has been turned on its head and organisations that do not deploy mobiles – more commonly consumer-grade or BYOD – are seen as laggards.

What is the most important consideration when moving from cost centre to profit centre? 

That’s simple. Independent maintainers are, by definition, driven by profitable service provision. For OEMs, the profits on after-sales services are frequently higher than products sales, and servitization has become an obvious strategy to maintain financial performance. For some it is a matter of survival and so it is a “no brainer”. The question becomes ‘how-to’ and not ‘whether-to’. Particularly as more product categories become commoditised, and manufacturers are unable to compete simply on product quality.

This is not the same as engineers being transformed into salespeople, as is often imagined. Many OEMs do not properly credit their service departments with revenue for their work. A notional accounting transfer is made, one that does not reflect the true commercial value. This gives a misleading impression of the service operation’s financial viability. Resolving this anomaly - to give an accurate baseline – and training service managers in financial disciplines are critical transformational steps.

Who is Ian Mapp...

Ian is a veteran of customer service - both in the provision of software applications and consultancy, and in actual service delivery. He has worked with companies large and small, both in the UK and internationally over 25 years. Presently, he is providing specialised customer service and customer experience consulting services to “people-powered” organisations through his company Wyser Stewart.

 

 

 

 

 

Strategies for Growth's President, and member of the Field Service News advisory panel, Bill Pollock takes a look at how he believes the industry will fare in the coming year...

All things point to 2014 as being the year when “Back to the Basics” and “Back to the Future” are finally due to collide. The collision will not be spontaneous – nor will it be particularly disruptive. In fact, it is likely to be extremely synergistic! Moreover, our research strongly suggests that these two otherwise divergent paths will begin to work together in a more harmonious manner to propel the global services community to even greater heights with respect to both revenue growth and profitability.

Granted, similar statements are made around this time each year (some, even, by myself); however, 2014 will be a markedly different year in that there has already been a steady uptick in new technology investment evidenced over the past 12 - 18 months (i.e., supporting the “future”), coupled with a renewed appreciation that customer needs and expectations must once again be placed at the top of the list of market strategies and actions that can empower services organisations to attain higher levels of service performance, customer satisfaction and profitability (i.e., the “basics”).

Let me explain how these two paths are most likely to collide …

“Back to the Basics”

Immediately following the “great” global economic meltdown of several years ago, most services organisations almost immediately went into cost-cutting mode in an attempt to reign in expenses (both capital and operating). While some employed an orchestrated approach to cost-cutting, others may have gone somewhat overboard or, even worse, may have ended up not having cut enough waste or inefficiencies in a timely enough manner. Nonetheless, over several years, most of the leading (i.e., “best practices”) services organisations were finally able to rollback costs to a point where they were able to not only survive, but thrive in a downturned global economy.

However, as it became increasingly evident that costs could not be cut any lower (i.e., nothing more to cut!), many organisations found themselves struggling to maintain – let alone bolster – their respective bottom lines. Once again, the leading organizations recognised that the bottom line was actually an equation, influenced directly by both costs and revenues (among numerous other factors). Therefore, if they could not decrease the cost side of the equation any longer, the best way to improve the bottom line would be to drive higher levels of service revenues. Thus began a brief era (i.e., two to three years or so) that transitioned the focus from cost-cutting to revenue generation.

Fast forward to 2014, and we are now seeing a global services community that has much of its costs under control, has taken proactive and interactive steps to drive increased levels of service revenues, and has allowed itself (gratefully) to re-focus its resources on the needs and expectations of the customer – a return to a more classic approach to services strategies and actions.

“Back to the Future”

However, it seems that each year, new technologies, applications, tools and “toys” are forecasted to “change the way in which we live” – or, for the services community, “the way in which we will be able to manage our operations.” Some prime examples have included such diverse technologies and tools as Personal Digital Assistants (PDAs) and tablets, RFIDs and scanners, M2M and remote monitoring, the Segway – and the list goes on and on. Then we all take a collective deep breath, wait a few years, and – sometimes, before we even are fully aware, they quietly become integral components of both our lives and our businesses. (Well, maybe not so much with respect to the Segway!)

Fortunately (albeit mainly for those organizations that have already prepared themselves for dealing with the “basics”), the “future” is about to collide with them – but in a good way. For example, earlier this year, it was reported that a fighter jet used by the United Kingdom’s Royal Air Force (RAF) flew with 3-D printed metal components for the first time. The air intake support struts, protective guards for take-off shafts and cockpit radio covers inside the Tornado jet were all made by 3-D metal printing, said defense manufacturer BAE Systems.

In October 2013, U.S. defense contractor Lockheed Martin said it was experimenting with 3-D printing of titanium parts for use in space flight; and NASA has plans to put a 3-D printer on the International Space Station later this year. Although 3-D printers can cost several hundred dollars or more, the question remains, how much can your organization save by 3-D printing some of its more common, fairly basic, parts?

M2M technology; big data; real-time telematics; and new mobile devices, applications and tools are being introduced to the global services landscape on a seemingly weekly basis, and – oh, yes, before you know it, many of 2013’s, 2012’s or (plug in the year) “new” technologies that may have mysteriously fallen off of our radar screens, may actually find their ways into our services organisations’ regular operating routines, thereby supporting the transition of this year’ “future” to next year’s “basics.

Enjoy the transition – and don’t forget to “mind the collision!”

 

 

Do you ever stop and think that the technologies that are now commonplace in the field service industry seem to be lifted straight from the pages of Star Trek creator Gene Roddenberry’s notebooks?

Certainly modern smart phones are on a par with the communicator devices found on the Enterprise, and now we are seeing the replicator come to life in the guise of additive (or 3D) printing. But what exactly is 3D printing, how does it work and what can it mean to field service?

3D printing 101:

As with most technologies, the background of 3D printing actually dates back much farther than it would appear at first glance. The first origins of the technology stretch back over 40 years to the late 70’s although the first working 3D printer is credited to Chuck Hall of 3D systems back in 1984. However, it wasn’t until the turn of the century that we began to see the technology finally become a commercial reality and since then there has been large growth in the sale of 3D printers as their price has become more and more accessible. In fact the 2012 figures put the market at $2.2 billion worldwide, an increase of 29% year on year.

The process itself involves making a three dimensional solid object, which can be virtually any shape from a digital model created using computer aided design (CAD) software.  In simplistic terms this is achieved by laying successive layers of material on top of each other. Essentially this is where 3D printing differs from all other forms of manufacturing, in that traditional methods start with a block and then subtract material until it is the right shape, in 3D printing you start with nothing and then add layers (hence the alternative name of additive printing) of material to build your product.

Within the last few years we have seen the techniques used in 3D printing (of which there are now many variations)  leap forward and products as diverse as clothing, turbine parts and even chocolates can now be created via a 3D printer.

3D Printing in the mainstream:

With the 3D printing industry now on set to explode into a fully-fledged mainstream industry we are seeing a number of companies now entering the market with home based 3D printers, most of which tend to look like a high end coffee machine and are available from anything for £500 to £3,000. In fact the market place is already becoming crowded with specialist makers such as MakerBot, Ultimaker and Cubify all competing with a variety of models, and surely it is only time before we start seeing bigger brands like Motorola or Sony enter the market place as well.

At the other end of the scale, there are companies like Makerbot parent Stratasys, a 3D printing company formed way back in 1989,  that offer 3D production facilities able to create specialist parts that capable of being both durable and intricate enough to be used in industries such as Automotive, Commercial Manufacturing and Aerospace.

Another big benefits of the additive process is that unlike traditional manufacturing of parts where the production run of a small number of a specific part is often simply uneconomical, the cost of manufacturing each individual part remains constant  regardless of the size of production run. This means that one off manufacturing of a part is now a completely feasible concept financially.

Also with any technology or as the market grows, so does competition, which in turn drives performance. Perhaps the most significant and dramatic improvement we have seen as a result of growing competition in this space is the speed in which the actual printing process is now completed. I remember seeing 3D printing for the first time just a couple of years back and whilst the end result was undoubtedly impressive it was still a relatively slow process. Today we are seeing print speeds of under 15 minutes for smaller to medium sized pieces.

So what does this mean to field service?

Well for a start lets take the two sides of the industry discussed... In home 3D printing,  we have seen a drive for smaller, more mobile printers and in industrial 3D printing we are seeing materials such as metals and high performance thermo plastics being used to create parts durable enough to have genuine commercial applications. Surely it is just a matter of time before we see these two elements converge to give us portable manufacturing capabilities?

In the not to distant future could we see field service engineers arrive on site identify which parts of a product need replacing and simply head into the back of the van, upload the specifications and print the part they need? With no need to wait for the parts to be firstly ordered and secondly delivered, we would be seeing first time fix rates soar.

How about we combine this technology with another emerging technology namely machine to machine (M2M) diagnostics.  Rolls Royce jumbo jet engines for example are already self monitoring, where the engine itself has it’s own built in computer system that relays information to their field staff.

It does not require a huge leap of  imagination to take this a step further... As soon as the engine’s computer reports a minor fault in one of it’s components it transmits this information to a local field team waiting at it’s next scheduled landing destination. The required part is then printed automatically on site thus allowing the field service engineer to quickly fix the issue with the freshly printed required replacement part ready to hand. An interesting concept isn't it?

Whilst the technology is still perhaps a few years away from being perfected to these levels of sophistication, it would seem that 3D printing could genuinely live up to it’s reputation of being the second industrial revolution and it’s impact on field service could indeed be quite spectacular.

 

 

In the part one of this two-part feature we looked at the launch of Amazon Prime Air and whether Amazon’s announcement heralded a revolutionary new delivery method which could change field service as we know it, or if it was little more than a PR stunt to put the ecommerce giant in the public eye ahead of a key revenue-generating period and whether (or not) the public was ready for fleets of drones delivering their goods?

Now in the second part of the series we review how the business world has reacted to the launch, the regulatory challenges that stand in Amazon’s way and one reason why it might just work after all….

The business world poured scorn…

Whilst public opinion remained divided, in the corporate world Amazon’s competitors both current and potentially those from the future if they step into the realms of delivery and logistics.

When asked if Amazon could emerge as a competitor, FedEx CEO Fred Smith commented:

“Quite frankly I don’t think I’ve seen more mythology in the press about anything than I have about the e-commerce space over the last year or so…”

He further clarified FedEx’s position by adding:

“Now that’s not to belittle UAS [unmanned aerial systems] technology because we’ve got a lot of studies underway in that area ourselves,” he said. “…but at the end of the day [most products will be delivered through] the intercity transportation networks of FedEx and UPS and to a lesser degree the Postal Service, which is designed around delivering very lightweight items.”

John Donahoe, CEO of Ebay was equally dismissive of Amazon’s plans. Not pulling his punches he commented that Ebay were “Not really focusing on long-term fantasies, we're focusing on things that will change consumers' experience today," 

Meanwhile in a fantastic parody of the Amazon announcement British book retailer Waterstones, announced they were launching a new service using specially trained Owls to deliver online purchases within 30 minutes.

A question of regulations...

In fact whilst it does seem that open season has been declared on Amazon and mischievous sniggering can be heard in corporate boardrooms around the globe, the simple fact is that the technology to make this happen is very much a reality and should Amazon be able to overcome the regulatory obstacles then they may well find themselves not only laughing last but also lughing loudest.

So what exactly is the current state of affairs in terms of the regulation Unmanned Ariel Systems (UAS) to give the drones their official moniker?

Well last year the US Congress passed a law that required the FAA to publish their final regulations that would allow certain applications of commercial UAS by September 30^th 2015 – which is the likely the source of Amazon’s own claim that Prime Air could be launched as soon as then.

Having recently published its first annual “road map” in which it laid out the necessary steps it will be taking to move forward with plans for draft legislation within the next year, the agency has already approved certain UAS for use by energy firms off the Alaska coast, as instructed by Congress.

However, both types of UAS that the FAA certified had already been approved for military use, something the Amazon drones don’t have behind them. Whilst law enforcement agencies and other public organisations have also received permission from the FAA to fly UAS in US airspace for surveillance and other purposes, corporate uses are a long way from being cleared. One un-named source at the FAA is even quoted as saying:

“We can’t even handle the simpler cases… this is taking ridiculously long. We’re hurting a lot of industries.”

In fact as the Washington Post highlighted:

"The fact that Amazon had to leave the country to make the video underscores how slowly U.S. officials have embraced the policy challenge."

In the UK the Civil Aviation Authority (CAA) are responsible for the authorization of UAS. In response to the Amazon announcement a CAA spokesman commented

“There are rules in place to make sure unmanned aircraft are operated safely and don’t pose any risk of harm to the public. A key element of this is the operator must have the aircraft within visual sight at all times during the flight. So there are a number of safety issues Amazon would need to address before this type of operation could go ahead.”

Yet it could still work…

However, there is one potential application of delivery drones which has been overlooked by the Amazon spin machine but could actually prove to be a much more viable solution in terms of both the logistics of operation and also meeting existing regulations, which was outlined by Ralph Rio, A Research Director with the ARC group in an article on Forbes Magazine.

“Instead of replacing, think about augmenting.  Jeff [Bezo] said that 80% of the packages are light enough for a drone to carry.  That means 20% of packages will need a delivery truck and person to carry the package to the destination…”

“…Consider a truck with sides that roll-up to reveal shelves with drones.  The truck stops at a home and, while the delivery person gets and delivers a package, multiple drones emerge and deliver packages within a few hundred feet, and return.  If a drone has a problem, the delivery person is there to help.  Also, the drones could be limited to a lower altitude that avoids FAA issues. “

“With the delivery augmentation approach, each stop releases a swarm of drones.  One stop delivers five packages rather than one.  This would be a huge productivity improvement for a dense, same day delivery route – like in suburbia.”

“ Of course, this approach to package delivery requires creation of complex algorithms for issues like when to use, route optimisation, sequencing, error correction, failure response, and more.  Amazon has the PhD math scientists to solve these problems.  The major impediment may be the business agreement between Amazon and the package delivery service providers.  But, this may solved with the next iteration of its agreement with the post office.”

“The technology is known, and could be deployed.  We will be watching for you to see how the application of this technology unfolds.”

This would certainly seem to provide a more practical application of the drones for deliveries, rather than Amazon’s initial more simplistic version drones leaving direct from the factory. Of course drones have been applied in other field service environments such as this example here as well. So whether the announcement was a perfect PR exercise or not, perhaps the idea of seeing delivery drones is the next few years is not as far fetched as it might seem…