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Manuel Grenacher, CEO, Coresystems, reflects back on some of the big predictions he made earlier this year and reflects on the progress made in interweaving the Internet of Things, Artificial Intelligence and Augmented Reality into the fabric of field service delivery across the last 12 months...

 

The days are getting shorter and colder, which means the holidays are approaching and 2019 is just around the corner (believe it or not!). So now is the perfect time to take a look back at 2018 and take stock of the advancements the field service industry made this year.

Back in March, we highlighted three trends we predicted would have major impacts on the field service sector in 2018. We noted that while 2017 introduced innovative new technology-based trends with the likes of artificial intelligence (AI) and augmented reality (AR), 2018 would bring real-world applications that put those buzzwords into practice.

So let’s review the progress of each of those three trends this year – after all, predictions don’t mean much if you don’t evaluate how accurate they were, right…?

 

The IoT Drives Proactive Device Maintenance, Service and Repair

Since the Internet of Things (IoT) became an integral part of almost every business’ technology mix midway through this decade, field service innovators have been finding ways to use the increased connectivity of the IoT to gain a competitive advantage. We predicted that in 2018, further innovation would allow field service technicians to utilize the IoT and automation in today’s devices – with the goal of providing service in real-time to meet (and exceed) customer expectations.

As is often the case in the field service industry, supply chain and manufacturing organizations were at the front of the line when it came to utilizing IoT-enabled and supported field service. Toward the end of this interview between SupplyChainBrain and various supply chain executives, the benefits of the predictive maintenance that the IoT enables become clear. Regarding sensor-equipped motors in warehouses, automation solutions provider Knapp noted:

“A motor might transmit information about vibration or heat, for example. It could indicate it needs potential maintenance services, and that's important because that would be predictive maintenance as opposed to breakdown maintenance, which is much more costly and can severely impact service levels.”

We’re seeing this focus on IoT-enabled predictive maintenance across the board with our manufacturing customers, so we can confirm that it definitely became a major focus in 2018 – and will continue to do so in 2019.

 

Artificial Intelligence Simplifies and Automates Service Appointments

Although artificial intelligence (AI) is in danger of becoming a somewhat empty buzzword in many industries, it’s here to stay – indeed, Gartner forecasts that 85 percent of customer interactions will be managed by AI by the year 2020.

The field service industry is applying AI in very meaningful ways as we speak, and it’s the concept of predictive maintenance that is driving the adoption of AI. For example, a recent study of original equipment manufacturers (OEMs) in the supply chain sector found that most OEMs are gathering data from sensor-equipped products in the field—a key requirement for predictive maintenance. In addition, more than half of OEMs plan to make AI and machine learning a major investment, while 90 percent intend to invest in predictive analytics within the next 12 months.

Beyond predictive maintenance (but related to it), AI can streamline the field service technician dispatching process – which crucially means customers can get their equipment serviced faster. Influential software authority Capterra highlighted how design consultancy Philosophie, using AI, developed a field service program that handed 90-95 percent of the technician dispatching duties to an AI system – which enabled the field service team to dedicate its human talent to the more difficult field service jobs.

AI most definitely made its stamp on the field service industry in 2018, and the innovation is expected to continue next year and beyond.

 

Augmented Reality Provides Unprecedented Visibility into Worksites

Back in March, we noted that the increased connectivity that the IoT brings will continue to propel the application of augmented reality (AR) in the field service sector. In 2018, we saw AR applied by companies aiming to improve their first-time fix rate on service calls, as well as other vital field service functions.

ZDNet detailed several highly-recognizable brands using AR for service calls, including BP's U.S. Lower 48 onshore oil and natural gas business, which has been equipping field service technicians with AR platforms to assist with repairs, and Caterpillar, which recently tested an AR solution for the technicians who service a line of its onsite portable generators. Caterpillar provides field personnel with an internally-developed iPad app that interfaces with IoT sensors on the generator to provide real-time diagnostics and repair protocols.

While AR is in its infancy relative to the IoT and AI, we’ve seen our own customers' leverage AR to make better use of their field service resources – including servicing their customers’ equipment remotely through AR glasses. We’re very likely to see the usage of AR expand in the field service industry in 2019.

It certainly appears that the trends we highlighted earlier this year continued to gain significant traction in the field service industry in 2018, and we fully expect IoT, AI and AR technologies to continue to drive a wide range of innovative projects and initiatives in 2019. And once the calendar turns to 2019, look out for our predictions on the developments to look forward to next year!

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Customer needs require scalable, flexible cybersecurity solutions finds Frost & Sullivan...

High penetration of Industrial Internet of Things (IIoT) technology in critical infrastructure and the manufacturing sector has resulted in a growing number of potential cyber-attack surfaces.

According to a recent analysis from Frost & Sullivan, cyber-attacks within the energy and utilities industries alone cost an average of $13.2 million per year. These rising incidences of cyber-attacks, coupled with evolving compliance regulations by governments, and increased awareness among mature and less mature markets have accelerated the adoption of cybersecurity approaches. However, there is still a high level of ambiguity in addressing industrial cybersecurity, with existing cybersecurity services struggling to provide comprehensive visibility across both IT and OT networks.

[quote float="left"]The industrial cybersecurity services market is at the high growth stage of its lifecycle, with rising awareness among end users, increased industrial control systems (ICS)-based attacks, and the rising need for cybersecurity skills[/quote]"The industrial cybersecurity services market is at the high growth stage of its lifecycle, with rising awareness among end users, increased industrial control systems (ICS)-based attacks, and the rising need for cybersecurity skills,” said Riti Newa, Industrials Research Analyst. “Many end users have labor-intensive security practices and lack strong cybersecurity policies. Service providers can help automate cybersecurity services and provide a more holistic approach by offering joint solutions that provide a consolidated view of the IT and OT environment.”

Frost & Sullivan’s recent analysis, Global Industrial Cybersecurity Services Market, Forecast to 2022, explores market adoption rates, requirements, and trends across the market. It also covers emerging service models and their usages, as well as monetization strategies for those models.

For further information on this analysis, please visit: http://frost.ly/2yn

Companies that are eager to grow within the industrial cybersecurity market can find opportunities through:

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• Providing integrated platforms that can deploy a range of services to enhance the security posture of end users while incorporating the best security practices.
• Using automated management services and advanced analytics to develop a comprehensive service portfolio that can be adapted for all types of end users.
• Offering flexible pricing models, such as Cybersecurity-as-a-Service (CSaaS), and lifetime services to increase accessibility across industries at a lower cost.

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"Despite the growing frequency of cyber-attacks, industries still have very low cyber resilience, struggling to ensure cybersecurity in the OT environment," said Newa. "With complexity and sophistication of the attacks, service providers will need to focus on advanced services that can address the threat landscape and automate cybersecurity."

Global Industrial Cybersecurity Services Market, Forecast to 2022 is the latest addition to Frost & Sullivan’s Industrials research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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In this third excerpt from an exclusive fieldservicenews.com presentation Kris Oldland, Editor-in-Chief, Field Service News is joined by John Hunt, Managing Director, EMEA, Astea to discuss the key findings of a research project Astea undertook with WBR.

 

Here, they turn their attention to the findings that were uncovered as the research focussed in on the adoption of IIoT amongst manufacturers as the two discuss just how widespread the adoption of connected field service is in today's business eco-system.

 

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According to Statista, there will be 30 billion Internet of Things (IoT) devices active by 2024. To tap into this trend, plant managers can choose between two main methods of connecting new devices to the IoT — wired or wireless.

 

Here Maria Torrisi, business development manager of industrial automation specialist JMartans Automation, suggests three questions to ask before choosing between wired and wireless technology.

Wired automation is more mature than wireless technology and offers a fast and reliable option. Wireless technology is a newer entrant to the field, boasting reduced automation costs and smaller space requirements.

A good understanding of your technology and how to connect it is essential during any automation project. To choose the best form of connectivity for your application there are three primary questions to address.

 

How much space do I have?

A wired system can require a large amount of cabling to connect components and devices, which can be bulky and expensive. One of the main advantages of wireless

systems is that they can be installed in almost any location, even those where space is limited. To discuss which option is best suited to your facility you can arrange for a specialist, like JMartans, to review your plant and recommend the best type of industrial automation equipment for you.

 

How much am I automating?

If you are connecting a small number of devices to the IoT then wired technology is a good fit for your purposes, as the technology is fast and reliable. However, — adding additional cabling or rerouting the existing cabling of a wired system can be incredibly challenging. Wireless systems, therefore, offer a more scalable option for businesses that are planning on expanding their level of connectivity in the future.

 

Where’s the value?

Wireless technology can offer a cost-effective option for businesses connecting a large number of devices. While the upfront costs can be high, the flexibility offered to grow businesses can lead to better value in the long term. However, if your company aims to automate a single part reliably and securely then wired automation can make good business sense due to its fidelity. Remember that the larger the wired network, the more expensive it is to install, maintain and manage.

As the IoT continues to grow towards the 30 billion devices forecast by Statista, businesses are faced with decisions about how best to connect their equipment. While wired technology offers a trustworthy option, businesses looking to scale up their connectivity in the long term may find wireless technology is more suited to them.

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Berg Insight presents a unique database covering the 350 largest cellular IoT deployments identified as part of the company’s world-class IoT market research activities since 2004.

The extensive list includes various types of projects and product categories deployed across all types of vertical markets including aftermarket automotive, fleet management & MRM, healthcare, OEM automotive, retail applications, smart homes and buildings, utilities, wearables & consumer electronics as well as industrial M2M and other. The database includes project size and geographical distribution by the end of 2017 as well as a 5-year forecast for each individual project.

“The projects included in the top-350 list together account for approximately 214 million active cellular IoT subscriptions”, said Rickard Andersson, Principal Analyst, Berg Insight. He adds that this corresponds to as much as 33.0 percent of the total number of cellular IoT connections worldwide at the end of 2017.

The 350 projects on the list are in the coming years forecasted to grow to 521 million units by 2022, corresponding to an overall compound annual growth rate (CAGR) of 19.5 percent. “More than 40 deployments on the list have surpassed 1 million subscriptions and the top-10 projects alone account for over 80 million units”, continued Mr. Andersson. Fleet management & MRM is the largest vertical in terms of the number of projects that made the top list, followed by retail applications, aftermarket automotive and OEM automotive as well as smart homes and buildings.

When comparing the number of active subscriptions represented by each vertical for the entries in the top-350 list, OEM automotive is instead the largest vertical, accounting for 46 million units, ahead of utilities at about 34 million units and fleet management & MRM representing 31 million units.

Download report brochure: The 350 Largest Cellular IoT Projects Worldwide

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Adopting IoT as part of the greater service and business environment involves keeping up with industry changes as they take place. That means incorporating better measures when needs arise in any business area and keeping cost-effective solutions in mind for the future progress of the company as a whole...

Already, 76% of companies are using IoT data analytics to establish product and/or process quality imperatives. Their decision makers can analyze IoT data to improve solution recommendations, feedback on installations, demonstrations, specific services, and others.

IoT also serves as a signifier for opportunities to improve more processes, such as identifying popular products and managing inventory.

Respondents to a recent research project undertaken by WBR and commisioned by Astea believe data should be usable in decision making at a variety of business levels. In every case, a majority of companies have either adopted IoT for specific business functions or plan to do so in the next 24 months. But companies prioritize customer-facing initiatives—service, products, and satisfaction—over internal functions such as business projections and aligning service data with financials.

 

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Customer Satisfaction & Loyalty:

73% of companies have incorporated IoT (42%) or plan to do so within 24 months (31%) for the purpose of customer satisfaction and loyalty. More companies have incorporated IoT for this purpose than for any other measured in the study.

With connected data, companies are able to understand and fulfil customer demands better thanks to improved communication. In this way, minor technological improvements can be made without delay or other consequences.

 

Service Processes & Optimization

Respondents agree that connected data and IoT have helped streamline processes across departments. By leveraging IoT data, they can measure efforts for overall growth through set channels, be they internal or service-driven.

Now, 41% of companies have incorporated IoT for process optimization, a close second to customer satisfaction and loyalty. Thirty-six percent have already incorporated IoT with service processes; more companies plan to do so within 24 months (37%) than with any other business function measured.

 

Product Uptime

Companies’ attention to customer experiences carries over to product support, where one respondent cites “notable improvements” to uptime in both industrial and consumer-driven channels. One healthcare executive says IoT helps them sustain products “during times of higher demands, especially due to the fact that these are used during medical procedures.”

More than one-third of companies have incorporated IoT for product uptime (34%); more than one-quarter of companies have plans to incorporate IoT with product uptime (30%) within 24 months.

 

Business Projections & Decisions

IoT data can be applied to various business requirements and provide essential statistics to support managerial functions. Derivations from reliable signals allow for better judgements when making business projections and decisions.

Over one-third of companies have incorporated IoT for business projections and decisions (35%); more than one-quarter of companies have plans to incorporate IoT with business projections and decisions (27%) within 24 months.

 

Predictive Maintenance

Respondents’ ambitions for better response to maintenance needs extends to real-time automated reporting, a better understanding of their products’ “general maintenance structure,” and even signals for customers to be proactive—to seek out maintenance themselves.

Several respondents cite their use of predictive reporting for scheduling, sustainability, and research methods, among others. Only 32% of companies have leveraged IoT for predictive maintenance; however, 29% plan to do so within 24 months.

 

Aligning Service Data with Financials

Fewer companies have incorporated IoT to align service data with financials (26%) than any other business function in the study. But the data suggests this is a growth area. More companies (61%) are either planning to incorporate IoT in this way within 24 months or are interested in incorporating IoT in this way than with any other business function.

Despite the prioritization of functions that drive customer success, it is in business projections, business decisions, and aligning service data with financials that companies take an increasing interest in incorporating IoT.

At least one-quarter of companies have already incorporated IoT for each of these purposes. Have you?

 

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In this, the latest edition of the Field Service Podcast, Kris Oldland, Field Service News, Editor-in-Chief, is joined by Marne Martin, CEO of WorkWave and president of Service Management for IFS about her new role with IFS as well as discussing whether the time has come to finally recognised Field Service Management systems as a standalone category such as CRM or ERP [hr]

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For those on the outside, it may seem that OnPoint Warranty Solutions are a new entrant into our sector.

However, take a peek behind the curtain and you will find a senior exec team with an abundance of experience in the both service and technology. Heading up that team is CEO Chris Smith, a seasoned contract, service and Customer Experience (CX) executive, who has racked up over 32 years industry expertise with the likes of Samsung, AIG, GE and FSM solution provider ServicePower.

In fact, CVs that name check both ServicePower and GE are a common thread amongst 3 of the 4 members of the newly formed exec board driving OnPoint’s business strategy as both CTO Michael Baumer and CMO and COO Jenniffer Breitenstein are ServicePower and GE alumni as well.

What these shared backgrounds indicate is a collection of senior leaders within this young company that have a comprehensive and intimate understanding of what are foundational pillars within the field service sector – namely Customer Experience and how technology can be leveraged to improve service operations.

One final name to add into this impressive group is that of founder and president of OnPoint, Robert Christian.

 

"In fact, they provide solutions for Manufacturers, retailers, original device manufacturers, Service Providers and Consumers alike..."

 

However, Christian brings a different skill set to the team than that of his colleagues. With a background as a Property Casualty Underwriter and database marketing, he has been working in the warranty industry since 1994 and was also instrumental in the creation of Encompass Supply Chain Solutions.

Of course, as founder, it is Christian’s background that is the cornerstone and key influence on where OnPoint positions themselves in the market. However, the service-centric experience of Smith, Breitenstein and Baumer has allowed them to carve out a strong sense of unique identity and solution set.

In fact, they provide solutions for Manufacturers, retailers, original device manufacturers, Service Providers and Consumers alike with their suite of offerings that include customer service solutions ranging from underwriting to extended warranty and service contract programs, service fulfilment and technology, as well as logistics.

In their own words, OnPoint’s solutions have been architected to connect brands to their consumers, relying on “solid underwriting relationships, Omnichannel consumer technology, a robust, AI-driven service administration platform and an expertly managed network of service and part providers”, to deliver great customer service experiences.

“They are designed to mitigate risk and drive revenue for client brands and underwriters while delivering the best customer service experiences on new and existing products.”

Indeed, it is a broad array of solutions that appear to be leveraging the latest consumer-focused technologies and that are designed to take a fresh and dynamic approach to service delivery.

As Christian comments: “As we evaluated what was needed to help brands meet consumers expectations, we recognized that flipping the service paradigm is critical.”

“OnPoint is focused on the end-consumer first. Offering solidly backed warranties and service contracts, variable coverage options that maximize product lifetime values, real-time connectivity on any device, and great service delivered by vetted, technology-enabled service providers drive brand loyalty.”

“When OnPoint cares for the end-consumer, our customers can focus on creating, marketing and selling their brand, which consumers will come back to again and again,” he added.

Indeed, given the rapid emergence of smart home technologies with connected assets within consumer homes now becoming more and more prevalent, there is certainly a lot of potential for those companies who can ‘flip the paradigm’ to flourish as we enter a brave new world of IoT expectations.

 

"Within just a month of announcing their launch back in July 2018, OnPoint was able to announce their first major contract with a major white goods provider to provide field service for their latest line of refrigerator goods..."

 

As a matter of fact, OnPoint considers this a key growth opportunity for the business. Using technology to gather a complete inventory of connected and non-connected devices in consumer homes enables OnPoint to offer game-changing, subscription-based contract and service offers. Consumer not only gain the ability to intelligently cover products which they own with solid service coverage, but they can also change coverage on a month to month basis. In a world where mobile devices are upgraded every 12 months and appliance products no longer can be expected to last 10 years, consumers are empowered to cover what’s important to their household, today and tomorrow with OnPoint.

“The warranty and service business has experienced an evolution in just the last 3 years”, explains Smith.

“Emerging technologies like IoT and 24x7 connectivity through smart devices have transformed the way consumers buy, the way they communicate, and the way they evangelize or demonize a product, a service, or an experience.”

“OnPoint aspires to tap into the vast experience and talent of our team and our selected partners to seamlessly connect manufacturers, retailers and service providers to their consumers, providing great service, transparency and value to both our clients and their customers,” he asserts.

Indeed, within just a month of announcing their launch back in July 2018, OnPoint was able to announce their first major contract with a major white goods provider to provide field service for their latest line of refrigerator goods.

This announcement was then swiftly followed by further announcements of tech partnerships with Mize – another name in field service that has begun to gain impressive traction within the last couple of years in our sector and is a partnership, which can only bode well for the future development and growth of OnPoint.

Whilst it is of course early days for the start-up they have both the wealth of experience, understanding of the industry and an innovative approach that could see them offering services that will be in much demand amongst field service organisations, particularly in consumer industries, as our industry continues to adapt to the widespread impact of IoT in our daily lives.

Find out more @ www.onpointwarranty.com or help@onpointwarranty.com

 

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Mark Brewer looks at how and why the two big technologies that are set to alter our industry forever are likely to converge...

To most people, the idea of a Digital Twin is largely just that - an idea. The concept may make sense, but they can’t be sure they’ve actually seen it demonstrated in the real world. Or at least not in any useful everyday purpose... yet.

It’s different for those working in Field Service.

Digital Twin is on everyone’s lips, an exciting buzzword that’s changing the shape of the sector and opening the door to new possibilities.

Forward-thinking Field Service organisations are already factoring it into their planning and monitoring activities and may even be deploying it where they can.

Why is Digital Twin such a hot ticket in our world?

 

Raising the game

The focus of Field Service centres on improving the reliability of an organisation’s assets. By enabling them to operate efficiently for longer, with less maintenance, you enjoy a greater return on investment while also spending less on upkeep and parts.

Clearly, the ability to accurately predict potential problems in those assets before they happen is a big help in achieving the above. Even more so, if steps can then be taken to not only rectify these issues but also provide a better experience for customers.

 

"A study by The Service Council found that four in ten incomplete service visits to fix equipment would benefit from the use of live video or AR..."

 

AR combined with the Internet of Things (IoT) does all this... which explains why the Field Service sector is so excited about it. The result is known as the Digital Twin – creating a bridge between the physical and the digital.

A study by The Service Council found that four in ten incomplete service visits to fix equipment would benefit from the use of live video or AR

Better connectivity, together with more accessible relevant tools were considered to improve the speed and quality of issue resolution - meaning that less pressure is put on company resources on-site.

 

A remote revolution

Thinking about practical examples, it’s not too difficult to see what a difference a Digital Twin would make, almost immediately.

Imagine you’re maintaining an elevator that’s installed in one of your customer’s offices.

Thanks to AR, your engineers can view a digital representation of that elevator, on their screen in your offices or on the road on their iPad, nowhere near the physical location of the asset. They can monitor operations virtually, from the comfort of their desk and without having to visit the elevator.

The 3D model on their screen is generated using engineering data with the output of the various sensors installed on the physical equipment augmented onto this. Some show power consumption, to see how efficiently things are running. Others might show spikes in voltage or the level of vibration and wear generated by the hoist as it runs up and down the building floors, whilst also indicating the number of trips completed and speed.

 

"On-screen augmentations and animated sequences give those involved an accurate visual indicator of any parts required, and how they may be assembled or disassembled..."

 

In short, it gives your engineer a comprehensive insight into the status and performance of the equipment.

When an issue does arise or a part needs replacing or upgrading, instead of having to drop everything and go directly to the site, they may instead be able to talk to a trained individual who may be based on-site, and direct them through the repair/replace process. Using a connected device such as an iPad or laptop, the on-site employee can share live footage and follow the remote engineer’s lead to perform the required maintenance.

On-screen augmentations and animated sequences give those involved an accurate visual indicator of any parts required, and how they may be assembled or disassembled. What’s more, the engineer can tag other team members who may either have useful knowledge to contribute or might just want to learn how to perform the task for next time around.

 

Sharing knowledge

Given that service parts and equipment are becoming increasingly complex and expensive, this process offers a great alternative for Field Service providers to continue providing excellent service while improving uptime and consequently saving customers time and money.

Moreover, it promotes the idea of ‘democratised knowledge’ - the sharing and passing on of vital skills and expertise from experienced engineers to workers that are onboarding. This way, as the seasoned workforce ages, their insights are therefore not lost but live on in even more tech-savvy younger employees. Which is a huge benefit when it comes to training and upskilling.

As said, the benefits of the Digital Twin in Field Service could be game-changing which is why so many of us in the industry are talking about it. Looking beyond predictive maintenance, the Digital Twin also opens up the opportunity to provide value-add recommendations to your customer in the use and operation of your equipment, as well as giving valuable insights to your own R&D organisation for future engineering changes.

What could the Digital Twin mean to you, your organisation and the service levels you are able to deliver to your customers? 

 

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Mark Brewer, is Global Industry Director, Service Management, IFS 

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