Technology use in service is about attaining business needs, says Rohit Agarwal. In a world impacted by Corona Virus ensuring your tech fulfils its business case will become more prominent.
While technology is the walls, ceilings and decorations of the cathedral; the foundations that the cathedral stands on are the strategy, the people and the processes of the organisation. These three decide the entire stability of the cathedral and how well it can withstand the external forces. In this article, let’s take a dive at why understanding business needs and creating the right strategy around it is the first important milestone in any technology implementation.

How the Pandemic Drove Digital Transformation in Field Service

Covid-19 hit us hard, and by us I refer to humanity, a disruption of our daily life, economies, governmental policies and the rate of medical research. What has been one common theme of being able to the contain this deadly virus if one asks? ‘Technology’ would be one prompt answer that comes to our minds. Technology has helped us detect the virus, learn how it spreads and has allowed everyone globally to communicate about it. Technological progress and prowess seem to the definite answer to our biggest threats and challenges, but then, if I may ask, why is the country with the most technological prowess hit the hardest? The strategy to use the technology to attain defined goals or mitigate disasters is what separates a successful technology implementation from an arrow shot in the dark.

Let’s take the simplest example of Video Calling. The technology allows a grandmother and her grandchild to communicate in two distant continents seamlessly but there are thousands of video calling platforms such as messenger, WhatsApp and Skype to name a few. The reason these names come to our mind over the rest is simply because the way the technology has been implemented keeping the business needs of creating a simple intuitive platform that make it simple enough for an 8-year-old to an 80-year-old to use. The value of a Video Calling platform increases with the number of users or in technical terms ‘the installed base’. Whatsapp’s strategy has been to provide the platform free of charge to users to lure them to the platform and get them hooked on. The dozen employees of Whatsapp worked relentlessly on improving the simple platform to build users rather than trying to complicate the technology leading to an evaluation in billions when it was sold to Facebook.

 

"The failure for new technologies isn’t innovation in product or services, rather it is a missing business model in a space where customer needs are uncertain..."

 

If we narrow down to the modern corporate scenario, over the last five years we have seen technology evolve faster than our minds can keep up with it. IoT, Augmented and Virtual Reality, AI has been some of the biggest differentiators for corporations. The difference between one trying to use these technologies versus one that has been able to reap benefits out of it has been understanding the business needs, prioritising it and creating a formidable strategy around it without being blinded by all the great things that the technology could achieve. According to an article on Forbes, the failure for new technologies isn’t innovation in product or services, rather it is a missing business model in a space where customer needs are uncertain.

Let’s take Augmented Reality (AR) and see how a company could use it to improve their value proposition or just try to force the technology into practise. Acme(fictitious) is a small company in existence over the past 5 years and has been providing field service as a contractor with specialisation in packaging machines. Acme’s current business strategy is to expand its service base but cannot afford to hire very experienced technicians and the CTO believes in talent farming. Acme does a technology review to identify what kind of digital tools it can implement to upgrade its customer’s experience. The technology research shows that Augmented Reality could be used as a digital tool that would help new technicians get expert advice from the office. Instead of jumping straight into purchasing expensive AR glasses and software, the CEO, a big fan of the lean start-up methodology starts looking into building a strategy to slowly implement the technology in short loops involving the technicians and have the possibility to persevere if things go well or pivot if things go haywire. 

The CTO does an audit of the knowledge management of the company to see if relevant materials are available in easily accessible form for the back-office expert and the on-field technicians to use and it appears enough to run trials. Acme promotes its most experienced technician who is about to retire to a back-office expert role to guide the other technicians on the field. They use simple video calling with their smart phones and a tripod to keep the technicians’ hands free. Based on input from the usage, the knowledge repository is enhanced, and the feedback is taken from the technicians.

 

"The strategy, process and people are the bridge that connects the use of new technology to the upgrade in customer experience."

 

After the first 3 months, the depositories of knowledge are updated sufficiently, and the processes are set in place to allow for optimal use of the back-office experts time. After analysing the results from this time, the CTO and the CEO decide to hire 3 new technicians and assigns them to the back-office expert to oversee and guide. In parallel Acme partners up with an Augmented Services Solutions company to try the usage of Augmented glasses to run experiments on how the efficiency of the system can be further improved.

Acme manages to expand its service base, not waste money on technology without proof of value and attains its business goal. The key to Acme’s success is not the mere use of technology, but the focus on understanding business needs, creating a strategy towards these and incorporating technology along the way to attain these goals. The strategy, process and people are the bridge that connects the use of new technology to the upgrade in customer experience. In the digitalisation phase today, the ability to apply incremental changes, have a strategy that is flexible and possibility to get quick feedback has become the major differentiator for businesses. To be able to jump the chasm between new technology implementation and upgrading customer experience, organisations must build a solid bridge of strategy, processes and people.

 

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Further Reading: 

• Read more about Digital Transformation @ www.fieldservicenews.com/digital_transformation
• Read more about the impact of Covid-19 on Field Service @ www.fieldservicenews.com/en-gb/covid-19
• Read more articles by Rohit @ www.fieldservicenews.com/blog/author/rohit-agarwal
• Connect with Rohit on LinkedIn @ www.linkedin.com/in/rohitag1/

Field Service News' Editor-in-Chief, Kris Oldland says change is coming, and we should embrace it...

 

It seems that the current Zeitgeist amongst our collective of excellent columnists here at Field Service News, which is usually a pretty good indicator  of the general mood of the industry at large is one of seismic change.

It seems that in one way or another the vast majority of our commentators have zoned in on change in one form or another.

The technology is perhaps the easier bit to get our heads around. We all have a vague understanding of how AI, IoT and AR can work together to improve our service delivery.

We do need to understand how we handle the data that new technology reveals though as Aly Pinder states in his article around convergence of man and machine  “To turn emerging technologies such as the IoT into the promise being trumpeted, organizations must transform the way they manage this data.” And in terms of the strategy, how many of us can say we have such a firm grasp around the nuanced challenges of embracing servitization?

Yet, the future of field service will inevitably be one of servitized business models and outcome based service offerings - so we had better get our ducks in a row sooner rather than later in this regard. Although it is easier said than done, as Bill Pollock comments in his article, we are essentially going to have to write a whole new book when it comes to understanding what the next iteration of field service efficiency looks like, with a whole new set of metrics and while we are at it, whole new ways of monitoring them.

Bill is of course, an old friend of mine as I have often referred to in this column, and he is without doubt the go-to guy when it comes to analysis into benchmarking KPIs in use by field service organisations - so I hope to catch up with him on an episode of the Field Service Podcast to discuss our own research into this topic and get his ‘Analysts Take’ on our findings.

Speaking of which if you haven’t yet taken a look at our new dedicated online home for Field Service News Research, then you can find it here where you’ll be able to check out all of our latest research reports and also join our list of respondents - each of whom get rewarded handsomely (well they get a Starbucks voucher) for taking part in our ongoing research programs.

Talking of change, I’d also like to just take a moment to wish Zack Bergreen a very, very well deserved, long and happy retirement as he steps down from his role as CEO of Astea after 40 years.

Zack has been a pioneer within the service management industry and is as well respected as he is well liked, so I am sure I am not alone in wishing him all the very best as he steps down.

One thing is for sure, Zack will have seen some incredible change in the 40 years he has been at the helm of Astea. There wasn’t even an internet back then, just things. And remote work really was remote.

But I’d put a hefty wager that the change we are embracing now is more radical and game changing than ever before. As Pollock says, “What we have gotten used to is all about to change.”

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Check out the latest issue of Field Service News with all of the features referenced above by clicking the link below now! 

Field Service News' Editor-in-Chief, Kris Oldland, offers opinion on what 2020 could bring for the service sector...

Maybe it’s just the bluster of a new year, magnified but a whole shiny new decade, and not just any decade, 2020 an iconic turning point for an ageing Xennial like me old enough to remember the exciting future that Doc Brown showed us back in the 80’s, yet young enough to harbour the distinctly millenial disappointment that actually the early part of the twenty first century was pretty much the same as the end of its predecessor - just with more anxiety a far, far worse movies.

But I can’t help but feel a tinge of anticipation and excitement as we cross into 2020. Sure, I might have been massively let down by ‘hover boards’ but wont stop my enthusiasm for celebrating the future with the vim and vigour of someone raised on a diet of sci-fi movies that are almost all now set in the past.

But stepping away from childhood flights of fancy and back into my grown up job I actually think there is a huge amount of potentially very rapid development that is going to take the FIeld Sector by storm in the next twelve to eighteen months. And this, dear reader is why this issue is entitled “it’s all coming together” comes from.  Let me take a moment to explain further. 

"It feels much less like a crisis now and more of an objective to be undertaken..."

To begin I think it is become increasingly clear that we are moving away from an age where technology existed in silos. The concept of the technology stack is not a particularly new one, but it has finally begun to really take root in our broader consciousness in terms of how we view the tools we need to improve on our field service efficiencies.

As Amit Jain comments in this issues Big Discussion which is on Artificial Intelligence: “Ultimately, I think the days of viewing technologies in isolation are rapidly becoming a relic of the past. In today’s modern systems and solutions, you should expect to see a wide range of technologies all sitting alongside each other working in harmony towards an improved outcome.”

This echoes my own thinking I couldn’t have put it better myself. In another area of pressing concern again I feel we are coming together to overcome challenges - this time namely the ageing workforce crisis.

We are now quite some way into to dealing with this and many of us have gone through the process of replacing the retiring ‘boomers with incoming millennials to the point where the look and feel of the field workforce has begun to change and as the blended workforce gains traction that evolution will continue.

But it feels much less like a crisis now and more of an objective to be undertaken.

It’s an important objective make no mistake, but nothing we can’t handle.

FieldAware’s Marc Tatarsky explains why transparency and integration are key to successful field service delivery in today’s environment...

Aligning capacity planning with dynamic work order scheduling is the key to planning for tomorrow not just getting through today unscathed argues Click’s Paul Whitelam. Kris Oldland reports...

There has been much talk in field service circles, but particularly in the manufacturing space, with regards to the importance of moving away from the traditional break-fix approach to field service delivery. In the past, the relationship between the service provider and customer has always been one whose nature has been primarily transactional.

An asset breaks, the customer calls to request a repair, and the service provider delivers that service within a previously agreed SLAs or at a designated cost if the asset lies out of warranty. There is nothing inherently wrong with this approach, it has been around in one way or another since service delivery itself, with the odd refinement here or there.

So why, all of a sudden, does it seem that field service companies of all stripes and sizes are prepared to walk away from the ‘old ways’ to embrace the new? The truth is what we’ve done in the past has been good enough, it doesn’t mean it is the best we can be. Moreover, as technology drives both customer expectations and service provider capabilities forwards simultaneously, the need for better’ has in many senses been thrust upon us from all angles.

It is of little surprise then that we are seeing field service companies begin to adopt a new approach which positions them more firmly within a business ecosystem built of partnerships between service providers and customers. Talk of servitization and outcome-based service delivery has moved from niche concept to mainstream discussion in a relatively short time, and an understanding of advanced services has, well, advanced.

However, this shift in thinking is also being seen in the way some field service management (FSM) solution providers are approaching how they design their offerings. More and more we see talk revert to technology stacks which harness best of breed solutions versus the platform. For a long time, it seemed that the platform was going to be the future of the FSM.

“If you take the high-level strategic view, you can be a platform, or you can be a specialist in field service management..."

However, as integration becomes almost effortless in the age of the API, we see once again a shift in the direction of best-of-breed solutions. Take, for example, ClickSoftware, a company who have for a long time been regarded as a leading specialist amongst scheduling providers, who remain a best-in-class specialist, having previously appearing to flirt with the idea of a platform approach, for a short time at least.

“If you take the high-level strategic view, you can be a platform, or you can be a specialist in field service management,” explains Paul Whitelam, Senior Vice President, Global Marketing, when I caught up with him earlier this year at the Field Service USA conference in Palm Springs, California.

“There are some arguments about where are the boundaries on field service management because that boundary’s changing a little bit. It’s certainly true that if you listen to service managers, they’ll say that an integral part of field service management is work holder management. Technically it’s not, it is an integral part of work order management.

“However, it’s perfectly acceptable for an organisation to have a best of breed work order management or a work order management system within their CRM and then also have field service management as an adjunct.

“As a best-of-breed field service management player, we can differentiate on how strategic we are, and we can expand our addressable market vertically and horizontally - vertically both in terms of industries and then geographically.

“When I say we differentiate on the strategic nature of field service management, what I mean by that is that a lot of the implementations you’ll see around, are centred on the day of service. For example ‘I’ve got a task, I need to allocate it to someone, and I can put various degrees of automation around it.’ Our approach incorporates this, but also questions what you did six months ago or a year ago.

"Capacity planning has become a perennial challenge..."

“What moves did you make to make sure that you’ve got the right skills, you’ve got people who have trained appropriately with the appropriate parts in the proper geographies who speak the right languages to be able to support your broader business strategies?” he adds.

This approach is certainly in keeping with the current zeitgeist becoming prevalent within our sector as touched on above, where field service is taking a much more central role within the long-term planning of many organisations.

“We’re looking at a field service management organisation that is about more than just delivering transactionally on the day of service. It’s more about making sure that, that team is set up for success and they’ve got the right skills, they’re the correct size.” Whitelam explains. 

It is interesting to hear Whitelam talk about the longer-term strategic planning of field service organisations both on the industry vertical and geographical focus. Click has undoubtedly made some significant gains in specific industry sectors such as telcos and more recently, the insurance sector. However, when it comes to increasing geographical coverage, this is often at the core of the challenge for expanding field service operations for companies in all industries.

Capacity planning has become a perennial challenge, but it has been revolutionised since the advent of cloud computing which enabled dynamic scheduling engines like Click to leverage the higher computational power of the Cloud to make modelling of potential capacity requirements into new regions a far more straightforward task than it previously once was.

“Capacity planning is a big area where we’ve invested in the product side of things,” comments Whitelam. “The advantages for linking capacity planning to work order scheduling is that if you’ve got your day of service review on how you’re doing, having that hooked in real-time with capacity management is becoming essential. It makes an excellent argument for having a tightly coupled planning and execution engine.” 

With strategy in field service evolving, it is undoubtedly prudent to consider how you can leverage the tools you have, or what tools you might need to invest in, to support you, not just with the ongoing day of service operations, but in your strategic growth in the mid and long-term future.

Manufacturers will more than double Multicloud use in the next two years, a new report predicts.

Nutanix has announced the findings of its Enterprise Cloud Index results report for the manufacturing sector, measuring manufacturing companies’ plans for adopting private, public and hybrid clouds.
The report revealed that the manufacturing industry’s hybrid cloud usage and plans outpace the global average across industries. The deployment of hybrid clouds in manufacturing and production companies has currently reached 19% penetration, slightly ahead of the global average. Moreover, manufacturers plan to more than double their hybrid cloud deployments to 45% penetration in two years; outpacing the global average by 4 percent.

 

The manufacturing industry is at an “innovation impasse,” ¹ meaning manufacturers have a desire to innovate and drive transformation, but legacy IT systems have the potential to constrain their ability to do so. The opportunity for manufacturers to embrace digitization efforts including “Industry 4.0” initiatives can break the impasse, but executives must focus on new opportunities to create value and not only prioritize traditional business operations. Manufacturing organizations face the constant challenge of trade-offs: they are under pressure to meet current productivity and operational goals in an increasingly global and highly competitive marketplace, but they also need to invest in future growth.

 

This challenge has created a demand for new technology solutions that can help balance the trade-off between current and future goals. IT leaders in manufacturing must avoid the beaten path of finding short-term fixes for increasing revenue; instead, they should look to long-term solutions that enable automation, enhanced use of data and improvements in customer experience. The Enterprise Cloud Index findings indicate that manufacturing leaders are aggressively adopting new technology to embrace modernization instead of getting left behind with legacy systems. The distributed cloud model offers a solution that delivers speed, flexibility, and localization, allowing manufacturers to improve efficiency without compromising quality.

 

While 91% of survey respondents reported hybrid cloud as the ideal IT model, today’s global average hybrid cloud penetration level is at 18.5% — the disparity due in part to challenges of transitioning to the hybrid cloud model. Manufacturing industries reported barriers to adopting hybrid cloud that mirrored global roadblocks, including limitations in application mobility, data security/compliance, performance, management and a shortage of IT talent. Compared to other industries, manufacturers reported greater IT talent deficits in AI/ML, hybrid cloud, blockchain, and edge computing/IoT.

 

Other key findings of the report include:

• 43% of manufacturers surveyed are currently using a traditional data center as their primary IT infrastructure, slightly outpacing the global average of 41%;
• However, manufacturers currently use a single public cloud service more often than any other industry. 20% of manufacturing companies reported using a single cloud service, compared to the global average of 12% — a testament to the fact that manufacturers are starting to turn to the cloud as a solution, given that they deal with legacy IT systems and cannot handle workloads on-prem;
• Manufacturers are also advancing the movement to private cloud: 56% of manufacturers surveyed said that they run enterprise applications in a private cloud, outpacing the global average by 7%;
• Manufacturers are struggling to control cloud spend. One motivation for deploying hybrid clouds is enterprises’ need to gain control over their IT spend. Organizations that use public cloud spend 26% of their annual IT budget on public cloud, with this percentage predicted to increase to 35% in two years’ time. Most notable, however, is that more than a third (36%) of organizations using public clouds said their spending has exceeded their budgets;
• Manufacturers chose security and compliance slightly more often than companies in other industries as the top factor in deciding where to run workloads: while 31% of respondents across all industries and geographies named security and compliance as the number one decision criterion, 34% of manufacturing organizations chose security and compliance as the top factor.

The bullish outlook for hybrid cloud adoption globally and across industries is reflective of an IT landscape growing increasingly automated and flexible enough that enterprises have the choice to buy, build, or rent their IT infrastructure resources based on fast transforming application requirements.

“Manufacturers are investing in modernizing their IT stack, and adopting industry 4.0 solutions to keep up with ever-changing business demands in areas like production and supply chain management,” said Chris Kozup, SVP of Global Marketing at Nutanix. “A hybrid cloud infrastructure gives manufacturers a fresh approach to modernizing legacy applications and services, enabling manufacturing IT leaders to focus on their long-term investments in big data, IoT, and next-generation enterprise applications. While the manufacturing industry is still facing obstacles in transitioning to multi-cloud use, this study shows us that manufacturing organizations are ready to accelerate growth and take the lead in IT innovation in the future.”

 

To create this report, Nutanix commissioned Vanson Bourne to survey more than 2,300 IT decision makers, including 337 worldwide manufacturing and production organizations, about where they are running their business applications today, where they plan to run them in the future, what their cloud challenges are and how their cloud initiatives stack up against other IT projects and priorities. The survey included respondents from multiple industries, business sizes and geographies in the Americas; Europe, the Middle East, Africa (EMEA); and Asia-Pacific and Japan (APJ) regions.

¹ IDC FutureScape: Worldwide Operations Technology 2018 Predictions, doc #US42126317, October 2017