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A year into his tenure heading-up ServiceMax Scott Berg is in a positive mood. Field Service News’ Deputy Editor Mark Glover went to meet the CEO to discuss life after GE’s acquisition, Brexit and why IoT still has more to offer...

Note: This interview was held prior to the announcement of Silver Lake's acquisition of a majority stake within ServiceMax which sees GE to continue as a minority investor. Find out more about the acquisition here 

Ahead of my interview with Scott I go online to read a handful of the firm’s customer case-studies. I browse with the intention of spotting a pattern, a pool of similar companies that can give me handle on the ServiceMax success story. Of course, the firm have always operated in diverse sectors: aviation; food production and pharmaceuticals to name a few.

As I delve further the specialism of the companies narrow into impressive and exciting-sounding niches: centrifugal pumps manufacturers; architectural coating companies; bio-analytical measurement system providers all extolling the values of ServiceMax’s solutions. With this in mind, I start by asking Scott how he keeps a handle on this array of industries, a forest of complex verticals. “You’re talking about large workforces that have scheduling needs at a real primitive level who have a real despatch and scheduling element,” Scott tells me in a meeting room at GE’s London offices.

“I think that unifies all those vertical industries for us. At the bottom of that, for the most part, there is either a complex piece of equipment and it’s really that machine or that piece of equipment that we that’s at the centre of what we do. “We tend to provide solutions for those with complex asset types of services which could be a wind turbine or a power plant, a centrifuge, or a brain-surgery machine in a hospital. When you look at it that way, there’s a lot of similarity across them.”

It will be a year this January since Scott took up the post as CEO of ServiceMax coinciding with GE’s acquisition of the firm. Despite being part of a multi-national conglomerate, a company who this ranked 18 in this Fortune 500, has the technician-focused ethos remained “This is a company that cares quite a bit about assets and equipment and machinery and engineers,” Scott says.

“I think there’s something close to 25,000 employed service engineers. There’s a real love and affinity which has been good and benefitted us.” Since the acquisition, ServiceMax have gained traction beyond Europe in countries where previously it had been difficult to get a footprint. Of course, investment has helped but Scott suggests GE’s global respect has also been a factor. “In the past 12 months we’ve had a number of customers in the Middle East fuelled by the positive brand and reputation of GE in that part of the world.”

"This is a company that cares quite a bit about assets and equipment and machinery and engineers..."

Europe though remains a strong area for the outfit with clients spanning the continent. On the day I meet Scott, Britain is reacting to Theresa May’s draft Brexit proposal, and my mobile buzzed and bleeped with news notifications as I made the train journey down.

The process of Britain’s extraction from the European Union has been fraught and complex with political commentators and business leaders offering various doomsday scenarios if negotiations falter. I ask Scott what effect, if any, Brexit could have on its European footprint? “I don’t want to get political and be on one side or the other and I can’t say I fully understand it,” he says wisely, “but there’s a demand out there for global operation in the world’s largest corporations and people are going to have to get through trade barriers and deal with the consumer on a worldwide basis regardless.”

We’re both happy to swerve further discussion on Brexit so I steer back to where it all began for Scott, in pharmaceuticals at Eli Lilly and Dendrite in the early 90s where he held Business Director and Senior Director roles respectively. A role at Connect offered a peak into the field service sector dealing with territory management systems, introducing large volumes of laptops into white-collar knowledge workers. “I had an early glimpse of the mobile workforce and what that was going to look like,” he recalls. At the time, California was the focal point of US software development. Fuelled by a growing interest in technology, Scott, originally from New Jersey headed to “chase the dream”. Fast forwarding then to 2009 and Scott is interviewing at ServiceMax.

As he plotted his experience, he was able to align his previous roles to the field service sector. “Even as I was about to join the company,” he says with a smile, “I was remembering all the things – even from pharmaceuticals – about remote working and parts ordering. We would deploy thousands of laptops to a sales team and none of those laptops had the means to service them, repair them, return then, ship them and prep them. Back in those days we had to run a full-on field sales operation because how else would 2,000 reps get what they needed.

“I had no idea how pertinent that would end up being first-hand experience of aftermarket or a parts operation where frankly where we trying to deliver a software solution.”

We work out that “back then” was 35 years ago and we both wince slightly at the speed of time passing. “My daughter calls me old,” Scott, 50, jokes. Still, the last four decades have seen a revolution in technology and software advances; the advent of the internet underpinning most applications. I ask Scott, given his experience, if he thinks the world wide web was a watershed moment, or perhaps something else? “I think the big change that I’ve seen for has been mobile,” he offers.

"The internet is not as ‘everywhere’ as people believe. It’s blocked in hospitals and airports. It’s enhanced by smart-mobile devices that have these rich capabilities but we also have to deal with the reality that they will sometimes lose connectivity..."

“Of course, this would be nowhere without the internet but going from luggable, yet heavy and fragile laptops to really smart affordable mobile devices; I think that’s a big deal.” And what about the internet? “ It’s been a bit of a double-edged sword,” he says. The internet is not as ‘everywhere’ as people believe. It’s blocked in hospitals and airports. It’s enhanced by smart-mobile devices that have these rich capabilities but we also have to deal with the reality that they will sometimes lose connectivity.

“We acknowledge the mobile workforce and the internet connectivity and getting data to people; we acknowledge the mobile devices and how important they’ll be but the only way to really do this properly is to think about that device and software operating in a connected and dis-connected way,” he pauses. “It’s a balance of the two. Relying on connectivity, the Internet of Things (IoT) goes beyond laptops, smartphones and tablets. Monitoring our heating and air-conditioning and even dimming our lights, its potential impact across heavy industry is huge."

In a previous interview with Field Service News’ Scott said that IoT had been an “unfulfilled promise”. Does he stick by the statement? “I think what needs to happen now, and this is where the real value will come from IoT,” he says recalling the earlier Interview.

“I think what needs to happen now, and where the real value will come from IoT, is when input from a machine can be fed into more predictive models using Artificial Intelligence (AI) and Machine Learning. Only then we will get truly predictive services, and only then will you get a learning model rather than an alert system.” He elaborates further: “Part of the early benefits for our customer base have been error logs and early warning systems. Now, what we offer for field service management and asset performance management can be through IoT and the predictive side; and then measure whether or not that had the impact that was wanted.”

"I think the version of autonomy that applies to complex services is a smarter machine that asks for help before it needs it..."

So, not only pre-empting but learning from pre-empting? “Exactly,” he affirms.

“We talk a lot about the closed-loop mentality; where you’re predictive about the maintenance instruction, then you capture the service that was actually executed then feed that back and now the model gets smarter over time.”

Despite the speed in which technology is progressing Scott believes the technical role of the engineer will remain.

He’s wise and experienced enough however, to know it is changing.

The asset, assisted by IoT and Machine Learning, will come to complement the technician. He references the term autonomous, suggesting – perhaps correctly – that people only associate it with self-driving cars. “I think the version of autonomy that applies to complex services is a smarter machine that asks for help before it needs it, a smarter machine that provides realtime data to advise the technician,” he says.

While IoT is certainly changing the field service marketplace, the hype around the technology is bringing a side-effect, a bi-product that requires effort for an end-user to control: data, reams of data. Scott is sympathetic towards clients who find themselves drowning in error-codes.

He tells me about a client he met the previous day - a provider of cancer surgery equipment.

“Every morning,” he says shaking his head, “the technician woke to an email reporting 2,000 potential error codes. And it’s all on this technician to decide what’s meaningful and what’s not. Sure, it’s a good IoT application that’s come up with 2,000 codes, but which one actually matters?”

The issue of data-overload affirms Scott’s earlier point, that IoT needs to be reined in by a strong predictive model that can filter the relevant information.

“That’s where things are really advancing now,” Scott affirms.

“To go from IoT spewing data at people, to layering a predictive model on that to advise and lead a technician’s actions, delivered through a smart mobile device that can present the relevant information.”

All of this ultimately adds up to efficiency, a key factor for those organisations whose business models are asset-heavy; the wind turbine or nuclear reactor for example. The effect of down-time across an assembly line, for even a short period can have serious financial consequences.

“They can’t afford for it to be down,” Scott explains, “and you can’t just call anyone to come and fix it. This isn’t a Google or a Yelp search to get someone with credentials to climb 300ft and fix a wind turbine.”

"The effect of down-time across an assembly line, for even a short period can have serious financial consequences..."

With good timing, a week before our meeting, a GE press release lands in my in-box announcing the launch of PreDix ServiceMax Asset Service Management software aimed squarely at these heavy-asset sectors. I’m drawn to the safety and compliance element of the software where the solution creates documentation for workers to check the correct Personal Protective Equipment is fitted.

“Even a simple checklist at the start of each technician’s day that asks if you are equipped with the right boots, or hard-hat or eye wear; just the reminder can contribute to a reduction in safety incidents,” Scott says.

Importantly, signed employee safety and maintenance documentation creates evidence of compliance. Scott outlines the process: “It [the documentation) shows that every technician, that morning acknowledged that safety procedure and that instruction, the documentation can prove it occurred. Along with the maintenance documents, it shows that everything that needed to get done was done.”

Checklist management has been a focus at ServiceMax. 

The firm have produced capabilities around form-data capture, the uploading and capture of photograph as well as video; all feeding into the battle against inefficiency. To make this point Scott cites describes wind-turbine maintenance, which to take place, a technician must climb 300ft, a journey that can take several hours.

“Imagine the tremendous inefficiency if you weren’t perfectly ready with everything you needed when you got up there. “You don’t want to get all the way and not have the right bulb,” he says, only half-smiling. You have to be perfectly ready to execute because you’re about to spend four hours getting to a destination.”

I wrap up the interview by asking Scott what inspires him to do what he does?

He lists the variety of industries that they serve, clearly enjoying the different experiences this brings.

However, he finishes – unsurprisingly, as is the ServiceMax ethos – by bringing it back to the engineer.

“I think the field-service technician is an underserved, individual skill,” he says. So, perhaps serving, literally, millions of technicians is part of what drives me.”

Scott Berg is CEO of ServiceMax

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ServiceMax, a GE Digital company, has recently commissioned independent market research specialist Vanson Bourne to explore the trends in asset connectivity. Here we look at some of their findings...

Asset and service data will be a crucial element of making the transition to a more outcome-based business model - something that is high on the agenda for many companies currently.

However, at present, surveyed organisations are not accessing the full potential of this data due to their inconsistent use of digital tools and technology. While 98% of respondents report that their organisation uses automated digital tools and technology to aid the collection and utilisation of asset service data, only around half or fewer state that these tools are used in the collection (51%), aggregation (43%) or analysis (52%) stages of the process.

"This intermittent use of automated technologies is not only opening the door for inefficiencies but is also directly leading to difficulties with data collection and utilisation..."

This intermittent use of automated technologies is not only opening the door for inefficiencies but is also directly leading to difficulties with data collection and utilisation.

Around four in ten respondents report that when it comes to the management of access to asset service data in real time (40%), aggregating asset service data in a structured way (39%), analysing asset service data (41%), and sharing asset service data analysis with the rest of the business (42%), their organisation either needs huge improvements in these areas, a complete overhaul or that they simply do not do this at all yet.

The difficulties regarding asset and service data are exasperated further by the 59% of respondents who agree that their organisation is held back from the successful analysis of data because the quality of it is usually poor.

Struggles are rife throughout the entire process, right from who is collecting it and how they do this, down to how it is being analysed and shared across the business.

How can these organisations possibly expect to make any informed, strategic decisions using the data that is readily available to them if the process is so disjointed, outdated and underdeveloped digitally?

Lack of Data Confidence

And these struggles have led to a distinct lack of confidence among surveyed decision makers and their colleagues, with only 50% of respondents reporting that they or other service leaders in their organisation completely trust the asset service data that they have access to.

But this will need to change because asset and service data is becoming an ever more integral part of organisations, and this is summed up by the 85% of respondents who agree that service asset data should be central to strategic decision making.

The requirement to boost trust levels is especially pertinent in those organisations where the C-suite is already using asset service data today (39%) or have plans to in the future (34%) because they will need to be able to trust in the data in order to make well-informed decisions for the business.

The use of asset and service data by the C-suite will also serve to set an example for leaders across other departments that this is the best way forward for the organisation.

Glaring Skills Gap

However, it is not just these deep-lying trust issues that are a concern for organisations, which is clear from the fact that only 22% of respondents are willing to admit that the IT and field service functions in their organisation work together completely effectively to achieve the goal of better data utilisation.

This lack of collaboration is compounded by a glaring skills gap whereby over three quarters (77%) of surveyed decision makers concede that the pace of data intelligence digitally collected by their organisation’s assets is outpacing the skills of those responsible for actually utilising the data.

Further to this, more than four in ten respondents report that the skills of engineers (45%) and the skills of management (44%) are a cause for concern when it comes to using data produced by advanced technologies (such as a digital twin) meaningfully. This should set alarm bells ringing for organisations because they are struggling with skills among both their employees on the ground and those higher up the organisation as well. It seems that even with the implementation of the appropriate technology for the collection and utilisation of asset and service data, there will still be work to be done in order to extract as much value as possible – this will likely need to be in the form of a rigorous training program.

An Appetite for Automation

A lack of collaboration between teams, an ever-increasing skills gap and an inconsistent use of the appropriate technology, leading to trust issues could become a recipe for disaster in these organisations if not addressed quickly.

"Over four in ten (43%) report that the automation of this process in their organisation is required to a huge extent, or that it is completely required because manually entered data never/rarely provides value..."

The need for automated digital tools has rarely been clearer, and respondents recognise this. Only 7% believe that automating the process of collecting and utilising asset service data is not at all required because all data manually entered by service engineers is structured and entirely usable.

Whereas over four in ten (43%) report that the automation of this process in their organisation is required to a huge extent, or that it is completely required because manually entered data never/rarely provides value.

Organisations will need to utilise automated digital tools more consistently if they are to progress, but they will also need to upskill their workforce and address any collaboration issues internally.

These three areas are crucial if asset and service data is to be utilised to its full potential and this will ultimately underpin the successful transition to an outcome-based business model.

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In the age of the industrial internet of things (IIoT), the speed of data analysis is key to effective operation. Edge computing accelerates this process, allowing for industrial data analysis to be performed at the point of collection. 

Here, George Walker, managing director of industrial control and automation provider Novotek UK and Ireland, explains the core benefits of edge computing.

Edge computing is the term for when process data is collected, processed and analysed in a local device, as opposed to being transmitted to a centralised system. Supported by local cloud networks and IIoT platforms like GE Digital’s Predix, systems that support edge computing are proving increasingly popular as a means of streamlining the effectiveness of IIoT networks.

For plant and utility managers, this presents a range of opportunities to not only improve the efficiency of operations but to also overcome some of the limitations of centralised IIoT networks. In fact, there are the three main ways that edge computing drives value in businesses.

Greater operational efficiency

Traditional analysis is undergone by transferring data externally, which can delay decision-making as errors take longer to be found. With edge computing capable systems, large parts of the analysis can be carried out by the devices collecting the data.

The benefits of this are two-fold. For one, this can allow plant managers to access partial deep analysis in real time without waiting on lengthy analysis to be carried out externally. This means action can be taken earlier, streamlining the decision-making process.

The second benefit is that the IIoT platform, such as GE digitals Predix, can automatically respond to operational data. The system will be able to automatically adjust processes in real-time. In effect, this would allow for a self-correcting system that is able to maximise uptime and reduce the need for manual maintenance.

Overcoming network latency and bottlenecks

Traditionally, data analysis is carried out by having smart sensors send all their data to a remote location where it is analysed and processed. This is data intensive and can create problems if a network is not robust enough.

Channelling large amounts can cause network latency, which interrupts working within the plant as there will be a delay with transferring messages that run through the same network.

This is particularly problematic for applications where a system needs to act rapidly to a problem, such as in an industrial oven control system in a food production plant, where even a temporary dip in the temperature can result in a batch being unsuitable for market.

In addition to this, the sheer volume of raw data that can be generated in an industrial or utility plant is also likely to cause data bottlenecks in the wider network.

By using edge computing systems and a machine-learning IIoT platform, systems can respond to changes in real-time to prevent problems, while also having edge computers in place to compress the data and reduce network impact.

Lower operating costs

Due to the amount of information being produced, the cost of data storage is becoming a growing concern for companies. Edge computing and its ability to process data without transmitting it, lightens the load put on the network.

Processed data is also less substantial than raw data as calculations can be made that allow the raw data to be compressed, thus reducing file sizes. As such, industrial companies are able to make more economical use of their cloud servers. By minimising storage requirements and the number of storage upgrades required, edge computing can allow for a lower overall operating cost.

It’s clear that there are many benefits to edge computing, both from a financial and operational perspective. Whether a business is still considering adopting IIoT technology or is already making use of such systems, edge computing marks a step forward for businesses looking to streamline processes for efficiency and effectiveness.

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In addition to the smooth transition toward an outcome-based business model, the organisation-wide and bottom line benefits of automating asset and service data collection and utilisation are vast. The benefits are perhaps no clearer than when it comes to achieving minimal unplanned downtime, where over nine in ten (94%) respondents report that the automated collection and utilisation of asset service data will be absolutely fundamental or an important factor in actually achieving this asset specific benefit. A similar proportion (91%) report the same for improved first-time fix rates.

Plugging the Holes – Revenue Leakage

Further to this, 82% believe that automating asset and service data processes will be pivotal when it comes to lower leakages, and contract leakage is something that is causing a great deal of damage to organisations currently.

On average, respondents’ organisations are undertaking 187,470 work orders per year, but an estimated 8.34% (17,542 work orders1 ) of these work orders are left unaccounted for by engineers according to those respondents who know how many are carried out on a yearly basis. This can lead to huge financial deficits and wasted resources and is clearly a problem that organisations should be taking notice of if they want to remain financially viable.

The issue of contract leakage is proving particularly problematic for organisations in the oil and gas, and telecoms sectors – on average, respondents from the oil and gas sector report that their organisation carries out 228,261 work orders on a yearly basis, and those in the telecoms sector are undertaking 213,424 work orders. The level of contract leakage in organisations from these two sectors is staggering. The respondents from the telecoms sector who know the number of work orders being carried out per year, report an average leakage of 9.64% (26,321 work orders), and this is only slightly lower at 9.41% (23,093 work orders) according to those from oil and gas. It seems unthinkable that organisations are unaware of such a gaping hole in their business, and it raises the question of what else could they be missing?

The process of automating asset and service data practices will not only benefit those involved in keeping track of work orders but can have wider reaching benefits as well, exemplified by the 84% of respondents who agree that the successful utilisation of asset data can positively impact all areas of the business. The specific departments that are expected to benefit include, but are not limited to, sales (38%) and marketing (37%) who will be able to better leverage customer usage behaviour, finance (33%) who will be able to provide more accurate billing, and even corporate social responsibility (27%) who will be able to monitor the environmental impacts of assets more effectively.

Bottom Line Benefits: Double-Digit Revenue Growth

While these organisation-wide benefits are impossible to ignore, the truly jaw-dropping potential of automating the collection, aggregation and analysis of asset and service data comes from the bottom line benefits. On average, respondents estimate that this process and using it to drive new marketing, sales and financing models can increase their organisation’s revenue by 14.15% over the next 12 months. In addition, it is thought that operational costs could be reduced by as much as 12.03%, on average.

[quote float="left"]An increase in revenue and decrease in operational costs can only lead to one thing – increasing profit margins.[/quote]An increase in revenue and decrease in operational costs can only lead to one thing – increasing profit margins.

The figures around revenue and operational costs show slight variation by region, with those in the US and MENAT particularly confident about the revenue increases that their organisations will witness – average increases of 15.67% and 15.43% are forecast respectively. Furthermore, those from the MENAT region are almost equally as bullish about the prospects of reducing their operational costs, predicting an average reduction of 14.21%. This is likely to be at least in part down to organisations in the MENAT region starting with a clean slate – the region is currently booming with new business and they are less likely than their counterparts in Europe or the US to have existing legacy technologies in place which would slow down any transition towards the automation of processes. This, in turn, means that they can begin to witness the financial benefits almost immediately – exciting times for the MENAT region providing that any transition is rigorously planned and diligently implemented.

Predicted financial benefits over the next 12 months

Another key way of making money is to improve cash flow and automating the collection and utilisation of asset and service data can also assist in this domain – over eight in ten (83%) respondents believe that the automatic collection, aggregation and analysis of asset service data could have a positive impact on their organisation’s cash flow over the next 12 months.

But what about return on investment?

Ultimately organisations are going to have to spend a fairly significant amount of money on the automation of asset and service data processes which might put some businesses off, but if the reward outweighs the risk then this is surely going to be a worthwhile expenditure.

Strong RoI

When taking into account all of the benefits that their organisation could experience, respondents believe that for every $1 they invest in ensuring that they can automatically collect, aggregate and analyse asset service data they would expect a return of $4.44, on average. Respondents from organisations in the US are even more convinced about the possible returns that they could experience, believing that this figure could soar as high as $5.29. The potential returns dwarf the initial outlay and it is hard to imagine a stronger case for investing in this process in order to guarantee a better future for organisations.

These financial benefits all culminate in enhanced competitiveness within the industry, and 87% of respondents agree that the automatic collection and utilisation of asset service data will have a positive impact on their organisation’s ability to remain competitive in their sector.

This is crucial because the more that organisations across the globe begin to realise the value that this process can bring the more that asset and service data will be used, explaining why the vast majority (86%) of respondents agree that the more asset service data is used, the more value it brings to the organisation.

A success loop will inevitably be created, opening the door for those who are brave enough to take those initial steps to get a jump on the competition and put themselves out there as leaders in their industry.

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ServiceMax from GE Digital, a leading provider of field service software, today announced a major new release of Predix ServiceMax Field Service Management (FSM), a next-generation field service offering that brings new ways of working to all professionals in service delivery. Recognized as one of the most comprehensive and visionary FSM solutions, the newest ServiceMax offering gives service technicians greater autonomy, empowers dispatchers with more robust decision-making tools, and helps companies better plan and execute complex service projects.

“By delivering innovative field service solutions, our customers are able to achieve higher service efficiency and a better experience for their customers – while remaining competitive in an increasingly crowded market,” said Scott Berg, CEO, ServiceMax from GE Digital. “Responding to evolving customer needs and executing on our long-standing commitment to service innovation and thought leadership, we are excited to introduce our next-generation field service solution.”

Leading the market in customer response, ServiceMax FSM 18.3 addresses three key pillars in next-generation field service work, including technician autonomy, dispatcher empowerment and complex work execution.

Granting Technicians Greater Autonomy

Traditionally, technicians receive guidance from a central dispatch in a linear and prescriptive manner. As the face to customers, field service engineers need the flexibility to make decisions that best serve customer needs. Giving technicians and contractors the ability to make autonomous decisions on a mobile device without depending on the central dispatch supports more confident and effective execution of work – ultimately helping them be more responsive to customer needs.

ServiceMax FSM 18.3 is the company’s fourth-generation mobile application and the culmination of its history and experience in empowering and enabling service technicians. Today’s service operations rely increasingly on combinations of third-party and on-staff service teams, requiring a higher grade of usability, easy adoption and a variety of mobile devices. This new release represents a consumer-style field service mobile app running on the device of their choice.

Empowering the Dispatcher

Additionally, service organizations have evolved the role of service dispatchers. Most do not plan to replace their dispatchers with automated scheduling algorithms – but they do want to free them from the mundane task of day-to-day scheduling to focus on complex, strategic decision making. To support this, ServiceMax FSM 18.3 gives dispatchers tools to be more effective – with software serving up recommendations at every step.

Where dispatchers previously relied on their experience and intuition about how to deploy technicians, this FSM offering delivers a new user experience for the dispatchers and planners called Service Board. Featuring an intuitive UI and significant added functionality over the existing Dispatch Console, the Service Board adds new features that support more efficient planning, scheduling and dispatching. This solution gives dispatchers the flexibility to deal with escalations or problems, focusing on more sophisticated work where human decision making is required.

Addressing Complex Work

Not all types of service jobs are the same; they range from short duration and low complexity, such as cable TV installations in the consumer world, too much more complex and sophisticated service calls, as in the manufacturing and energy space. Major projects – overhauls, equipment decommissioning, installations and upgrades – can be highly complex. Additionally, industries such as power and utilities, aviation, and oil and gas must follow strict regulatory requirements. As service organizations look to expand their service offerings, they must be able to effectively manage service jobs that span multiple days, require multiple technicians, and even work done in multiple shifts. ServiceMax FSM 18.3 offers a new way of solving these challenges.

The new FSM solution helps service organizations scale this complex work, giving companies the ability to define standard or complex shift plans. This includes jobs with multiple technician skill sets, management of multiple resources, and situations when technicians must work on a job for days rather than hours. Additionally, FSM 18.3 can incorporate data from predictive maintenance software, such as GE Digital’s Predix Asset Performance Management, giving companies greater understanding of an equipment condition for highly complex assets.

“It is no longer working to just focus on ‘what’s wrong’ when delivering service in the field. Smart service organizations are working to focus on what RIGHT looks like for the customer, delivering reliable uptime rather than just fast response and resolution times” says Vele Galovski, VP of Field Services Research for the Technology Services Industry Association (TSIA). “To accomplish that, you need to really empower your employees with the right tools that help them get their jobs done. ServiceMax’s new capabilities capitalize on this trend, and it is great to see ServiceMax, now as part of GE, continue to focus on features that matter for our field service members.”

Availability

The new capabilities introduced in ServiceMax FSM 18.3 are currently available in beta. During this beta period, ServiceMax is working closely with select customers to refine use cases and the product experience, after which the features will become generally available in the first quarter of 2019. For more details about ServiceMax FSM 18.3, click here.

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Asset and service data will be a crucial element of making this transition to a more outcome-based business model. However, at present, surveyed organisations are not accessing the full potential of this data due to their inconsistent use of digital tools and technology. While 98% of respondents report that their organisation uses automated digital tools and technology to aid the collection and utilisation of asset service data, only around half or fewer state that these tools are used in the collection (51%), aggregation (43%) or analysis (52%) stages of the process.

This intermittent use of automated technologies is not only opening the door for inefficiencies but is also directly leading to difficulties with data collection and utilisation. Around four in ten respondents report that when it comes to the management of access to asset service data in real time (40%), aggregating asset service data in a structured way (39%), analysing asset service data (41%), and sharing asset service data analysis with the rest of the business (42%), their organisation either needs huge improvements in these areas, a complete overhaul or that they simply do not do this at all yet.

The difficulties regarding asset and service data are exasperated further by the 59% of respondents who agree that their organisation is held back from the successful analysis of data because the quality of it is usually poor.

Struggles are rife throughout the entire process, right from who is collecting it and how they do this, down to how it is being analysed and shared across the business. How can these organisations possibly expect to make any informed, strategic decisions using the data that is readily available to them if the process is so disjointed, outdated and underdeveloped digitally?

Lack of Data Confidence

And these struggles have led to a distinct lack of confidence among surveyed decision makers and their colleagues, with only 50% of respondents reporting that they or other service leaders in their organisation completely trust the asset service data that they have access to. But this will need to change because asset and service data is becoming an ever more integral part of organisations, and this is summed up by the 85% of respondents who agree that service asset data should be central to strategic decision making.

The requirement to boost trust levels is especially pertinent in those organisations where the C-suite is already using asset service data today (39%) or have plans to in the future (34%) because they will need to be able to trust in the data in order to make well-informed decisions for the business.

The use of asset and service data by the C-suite will also serve to set an example for leaders across other departments that this is the best way forward for the organisation.

Glaring Skills Gap

However, it is not just these deep-lying trust issues that are a concern for organisations, which is clear from the fact that only 22% of respondents are willing to admit that the IT and field service functions in their organisation work together completely effectively to achieve the goal of better data utilisation.

This lack of collaboration is compounded by a glaring skills gap whereby over three quarters (77%) of surveyed decision makers concede that the pace of data intelligence digitally collected by their organisation’s assets is outpacing the skills of those responsible for actually utilising the data.

Further to this, more than four in ten respondents report that the skills of engineers (45%) and the skills of management (44%) are a cause for concern when it comes to using data produced by advanced technologies (such as a digital twin) meaningfully. This should set alarm bells ringing for organisations because they are struggling with skills among both their employees on the ground and those higher up the organisation as well. It seems that even with the implementation of the appropriate technology for the collection and utilisation of asset and service data, there will still be work to be done in order to extract as much value as possible – this will likely need to be in the form of a rigorous training program.

An Appetite for Automation

A lack of collaboration between teams, an ever-increasing skills gap and an inconsistent use of the appropriate technology, leading to trust issues could become a recipe for disaster in these organisations if not addressed quickly.

The need for automated digital tools has rarely been clearer, and respondents recognise this. Only 7% believe that automating the process of collecting and utilising asset service data is not at all required because all data manually entered by service engineers is structured and entirely usable. Whereas over four in ten (43%) report that the automation of this process in their organisation is required to a huge extent, or that it is completely required because manually entered data never/rarely provides value.

Organisations will need to utilise automated digital tools more consistently if they are to progress, but they will also need to upskill their workforce and address any collaboration issues internally. These three areas are crucial if asset and service data is to be utilised to its full potential and this will ultimately underpin the successful transition to an outcome-based business model.

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The idea of outcome-based business models has not completely taken off as yet, and this is reflected by what respondents’ report is happening in their organisations.

On average, respondents estimate that 19% of their organisation’s business model is outcome-based, compared to 38% of the model that would be classified as product-based and 26% that is service-based.

However, there is potential for an outcome-based approach to be a big hit and it is unlikely to be too long before large multi-national corporations realise that product and service-based models are not as relevant as they once were.

It seems as though this realisation has already started to some extent; of respondents whose organisation does not currently operate a 100% outcome-based business model, more than nine in ten (95%) report that they are currently working towards moving some or all of their products and/or services in this direction or are planning to in the future.

Surveyed organisations from the oil and gas sector appear as though they are looking to get a head start on their competition with 64% of them reporting that their organisation is already working towards implementing a more outcome-based business model.

In recent times, organisations have found themselves in a race to the bottom, constantly undercutting their competitors on price, but often at the expense of product or service quality, simultaneously cutting their own profit margins.

This is not sustainable as a business model, not only due to reducing profits but also reducing customer satisfaction levels. Outcome-based business models provide an opportunity to differentiate from the competition and raise standards across all industries.

Enhanced Performance and More Competitive

The shift towards this type of business model is therefore somewhat unsurprising, and surveyed decision makers display overwhelmingly positive attitudes towards this approach.

The vast majority (89%) believe that the move to more outcome-based business models will enhance the way their industry operates, and only slightly fewer (82%) agree that this model will make their company more competitive than ever before.

Not only do organisations from the oil and gas sector appear to be making an early leap towards outcome-based business models, but surveyed IT and field service decision makers from organisations in this sector are almost completely convinced on the possible impacts of such a change.

More than nine in ten (94%) respondents from the oil and gas sector believe that this switch will enhance the way that their industry operates, including 71% who believe it will lead to significant enhancements.

Decision makers in oil and gas seem to be tired of the shortcomings of product and service-based business models and are ready to embrace the positive changes that outcome-based models will inevitably have.

Everything has a shelf-life, and it is evident that old school approaches to business have run their course – it is time for a change, and oil and gas are hoping to lead the way.

In business, those who can be first to the punch will often be very successful, but with a transition such as this, organisations must ensure that their plan is rigorous and well thought out.

Implementing a fully functional outcome-based model will not necessarily be a straightforward process and could be fraught with difficulties along the way, but it is certainly a step worth taking to improve customer satisfaction levels, the bottom line and the way industries operate as a whole.

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Places for the upcoming Service Community event which is being hosted by GE Power, are now becoming very limited...

The event will be hosted at Ge's state-of-the-art facility at Stafford on the 16th October from 11.00 to 16.00.

As one of the most sophisticated Buyers of Advanced services, Keith Rushton from the MOD will give unprecedented insight in how performance related services are purchased, and why the MOD has been so influential in developing the new BSI standard for Services. We have one of the best presentations on Selling Service Value  I have seen from Leon Sijbers of GE Power and Ross Townsend from Ishida will be sharing their Service Transformation story. Phil Newton from BT will share his experience of rolling out an Augmented Reality Solution to one of the largest Field Service Organisations in the UK. And finally, Mark Homer from GE Digital will share some research on the importance of Service Data in industrial businesses.

The Service Community creates discussions and insights that are far deeper than most conferences, due to the informal and intimate nature of our events.  This is because we are a community in the true sense of the word, run by volunteers, with no sponsors, no exchange of money, no legal entity no hidden agenda's, just real people talking about real things motivated by a desire to learn.

Please feel free to forward this information to colleagues who you think would be interested.  We look forward to seeing you in October and remember to register by sending an email to info@service-community.uk . We will then contact you to confirm registration and will send out the joining instructions nearer to the event.

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Data is one of the key driving forces underpinning the modern day economy, but asset and service data specifically, is absolutely crucial.

Organisations collect, aggregate and analyse plenty of it, but the way in which they do this can either be the catalyst for soaring above competitors, or the iceberg that sinks the ship.

Equally, outcome-based business models, which could be considered the next generation of the modern economy, might be a “make or break” moment in the lifespan of many global organisations. An outcome-based business model is focused on the outcome for the customer rather than a specific product. Customers receive extensive maintenance and support services after they have purchased the product, helping to nurture their relationship with the supplier.

In addition, customers only pay per outcome.

For example, the ability to only pay for a jet engine while it is in the skies, or an MRI scanner that is fully functioning and actually able to carry out a scan on a patient. Essentially, this type of model ensures that the customer always has the right outcome, enabling them to grow their own business while fostering a healthy client-supplier relationship.

Whether organisations can make an effective transition to this relatively new form of business model will likely be intrinsically linked to their ability to successfully collect and use data derived from their assets and will ultimately decide whether or not they stay afloat.

Are Outcome Based Services a key topic for you?!  There is a white paper on this topic available to fieldservicenews.com subscribers. Click the button below to get fully up to date now! 

Summary of Key Findings:

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