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Service management software specialist ServiceMax has launched  Connected Field Service,  a complete Internet of Things (IoT) solution for the field service industry. Connected Field Service (CFS) is said to be the first product to seamlessly integrate IoT machine data with a field service delivery system, providing service professionals and technicians with real-time proactive information about field assets, delivered via the cloud to their mobile devices.

As manufacturers and service providers continue to emphasize the need for proactivity in field service, the solution will be the essential framework for delivering more intelligent and agile service, transforming how technicians operate in the field while improving the quality of service they’re able to provide.

Connected Field Service leverages the PTC ThingWorx IoT platform, enables smart machines to initiate service requests, introduces new tools for remote service, and displays real-time machine data to service professionals and, when combined with additional PTC Service Lifecycle Management solutions, provides technicians with connected diagnostics and contextual repair procedures via mobile devices.

As part of the offering, ServiceMax is also announcing the availability of ProductIQ, a new feature in the ServiceMax Mobile suite for iPad and Laptops.  This provides users with a simple and clear mobile window into smart device details and records in-field activities. By transforming service delivery with real-time machine data and intelligent service tools, manufacturers can better guarantee asset performance and uptime, allowing them to sell services, and not products, in-line with the outcome-based model.

“We wanted to leverage the power of IoT to strengthen our platform for delivering flawless field service to our customers,” said Dave Yarnold, CEO of ServiceMax, “Connected Field Service lets you know immediately when something has failed or is about to fail, and automatically dispatches the necessary technician with the right knowledge and the right parts to repair the machine and eliminate unplanned downtime. The real-time window gives our customers the opportunity to drive higher customer satisfaction, opens up new opportunities for outcome-based service offerings, and ultimately drives profitable service.”

“Together, PTC and ServiceMax are enabling manufacturers and service organizations to create new value for their customers through enhanced service offerings and the sale of outcomes,” said Jim Heppelmann, President and CEO of PTC. “Connected Field Service leverages our complementary technology offerings and a shared vision for the transformation of service made possible by the Internet of Things, bringing an array of new capabilities to technicians in the field and powering increased efficiency and profitability at multiple stages of the service lifecycle.”

Connected Field Service recognizes that the trajectory of the field service industry needs to match that of the manufacturing industry. As manufacturers are more inclined to sell outcomes not products, the technicians delivering these outcomes need to move from a reactive servicing to a proactive and predictive model. The CFS solution offers service professionals and technicians predictive insights into the products they are servicing, underscoring ServiceMax’s ongoing commitment to deliver the most advanced capabilities to its customers.

“In our line of work, asset uptime is crucial. The ability to create real time reports straight from the machine and deliver to our technicians is very powerful,” said Daniel Kingham, Program Director at medical equipment company Elekta. “This feature alone will differentiate us from our competitors, delivering proactive and highly productive service to our customers around the globe. Ultimately, Connected Field Service allows us to transform our business and create loyal customers.”

"With so much new technology available in IoT point solutions, one of the main challenges our members are seeing is how to make sense of it all and put it to use," said John Ragsdale, VP of Technology Research, Technology Services Industry Association (TSIA). "The Connected Field Service solution from ServiceMax and PTC is the first solution we have seen that addresses this problem head-on. They have delivered the first pre-integrated suite that can provide a seamless view of real-time machine data, right in the context of where it is needed most -- the delivery of service in the field."

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What are the trends that will have the most impact on field service in 2016? John Cameron, general manager, Trimble Field Service Management,  reveals his top six.

Field service organisations have reached an unprecedented transformative stage, as an array of advanced tools continue to storm the market helping businesses to transform the way that their field service organisation operates.

Last year saw the expansion of the Internet of Things and the widespread introduction of advanced analytics tools to tackle Big Data. These trends will continue into 2016 along with the need for greater integration. Furthermore, with technology development moving so quickly and companies continually having to modernise their solutions to keep up with the competition, 2016 will see an increase in businesses entrusting one provider to deliver all the functionality and modularity they require to manage their work, workers and assets out in the field.

1. The Internet of Everything - The IoT has been on service businesses’ radar for a while, so the trend isn’t exactly new heading into 2016, but as more businesses invest in connected technology, we’ll see it become an established industry best practice. Gartner predicts that by 2020, 26-billion devices other than smartphones, tablets and computers to be connected via the Internet of Things. For field service organisations, connecting equipment with technicians’ mobile devices and the back office in real time is a necessity. Information captured in the field provides diagnostics and performance metrics that mitigate certain issues as well as tracks patterns and trends for long-range planning. The goal is to ensure an intelligent and preventive—not reactive—approach.
2. Predictive Maintenance Will Fuel Field Service Automation - With the predictive power of connected devices, the field service industry will not only take a more predictive/ proactive approach to service, they’ll begin to automate the field service process. For example, sensors in a piece of equipment could automatically trigger a service call when it needs something repaired or it’s due for regular maintenance. Connected devices take the idea of proactive service work — the service business has enough insight to let the customer know when a machine needs a repair before it fails — and automates the process.
3. Making sense of data for improved intelligence - With the majority of field service organisations deploying a vast range of different technologies out in the field, from GPS and vehicle tracking systems to fleet and work management solutions, many are challenged by the vast amount of data they’re collecting back. The ability to analyse and act on this data will continue to trend in the evolution of field services technology. [quote float="left"]Advanced analytics capabilities will allow organisations to execute on information generated from the field to become more efficient and productive.

    

   Advanced analytics capabilities will allow organisations to execute on information generated from the field to become more efficient and productive. Deploying workforce management solutions with sophisticated analytics tools will enable managers to improve operations with real-time visibility into their operations. Data gathered from smarter mobile apps and equipment sensors will provide insights on performance, tasks, service quality, and new products that will enable field service managers to not only keep up with the competition but to step ahead. Analytics will be embedded and pervasive. After all, the value of analytics is in the answers, not the data.
4. Greater Integration - As back office, telematics and workforce management solutions become more integrated with mobile devices, the opportunities to increase efficiency and productivity are growing exponentially. Field service managers can make real-time decisions remotely by accessing vehicle tracking, scheduling and routing on their mobile devices. This allows organisations to mitigate reckless driving incidents, control wear and tear on their fleet and decrease maintenance costs, all from a handheld. Mobile apps will continue to provide critical information such as daily tasks, customer histories, billing, and the locations of nearby teammates on demand for field service technicians. This access to real-time information empowers the technician to make strategic decisions, recruit help from teammates, and complete jobs on-time the first time, resulting in lower operational costs and higher customer satisfaction.
5. The Power of Mobility - The right mobile architecture can solve many of the tactical challenges field service organisations face today: latent customer needs, increased competition, unmitigated churn and worker productivity. To be successful with any mobility deployment, organisations must choose the best field service solution and adopt the implementation best suited for their operation. Gartner has made the following predictions for the state of mobile in field service by 2016:
   • 2/3rds  of the mobile workforce will own a smartphone
   • 40 per cent of the workforce will be mobile
   • Field service organisations will purchase 53 million tablets in 2016
   • Approximately 56 per cent of smartphones purchased by businesses in North America and Europe will be Android devices
   • As more and more organisations use mobile to automate the service process and eliminate duplicate data entry, those who stick with paper methods will get further and further behind
6. One solution, one provider - With technology development moving so quickly and companies continually having to modernise their solutions to keep up with the competition, 2016 will see an increase in businesses entrusting one provider to deliver all the functionality and modularity they require to manage their work, workers and assets. To achieve that, they need robust and flexible end-to-end platforms backed by a reliable provider.

 

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Global energy management firm Schneider Electric is rolling out ServiceMax's service management solution to 6,000 engineers across the globe as part of its One Schneider customer support strategy in which IoT will also play a key role. Marc Ambasna- Jones caught up with both companies at MaxLive Europe.

As Manish Gupta, senior vice president of Schneider Electric took the stage in the Salon Opera in the 19th Century Le Grand Paris hotel, few of the 270 attendees at MaxLive Europe would have been aware that the company at which Gupta plies his trade is in fact older than the building in which they were sitting.

Le Grand Paris and its much celebrated Café de la Paix were opened in the 1860s and played host to local literary heavyweights Emile Zola, Victor Hugo and Maupassant. Thirty years earlier, and about 317km south in Le
Creusot, two brothers named Adolphe and Eugene Schneider acquired the local mines, forges and foundries. It was the start of what is today a $25bn business.

It is of course a very different business. Schneider Electric now defines itself as a specialist in energy management and automation.  Its client list spans the globe and covers a wide range of industries including utilities, manufacturing and distribution. This has led to rapid growth in its service teams which now numbers 20,000 tech support engineers. Understandably it has built up a complex service structure to manage its resources but not without a degree of pain.

According to Gupta, growth and acquisitions have led to the company having “lots of disparate systems from multiple vendors, including Excel spreadsheets.” Schneider Electric has, to be fair, been a very acquisitive company. It has bought and integrated 17 businesses in the last five years, including a £5 billion purchase of UK engineering firm Invensys earlier this year. This acquisition trail brings its own challenges and has been a contributor to the company’s service management conundrum.

“We had different solutions across different business units as well as different countries,” says Gupta. “As part of our global program for One Schneider,  our objective is to enable consistent and accessible visibility into our customers globally. This led us to purchasing Salesforce for CRM, and then we wanted to extend that single view of the customer to our field service. ServiceMax enables an end-to-end connected experience for our customers, techs and management and was on the Force.com platform.”

 

This fits with Gupta’s and Schneider Electric’s vision for the evolving role of the service engineer. “The installed base is key,” adds Gupta, “because we want to track how customers are using our products. We want to improve products and improve the experience.”

As well as the obvious potential for upselling, Gupta sees this ability to create a two-way conversation with customers an increasingly essential skill for service engineers. The premise is that retaining and upselling existing customers is easier than finding new customers.

Schneider Electric is currently in the process of rolling out ServiceMax for 6,000 of its service engineers and plans to review its contract when rollout is complete in 2017. Although still in mid-adoption, Gupta has identified a couple of pain points.

“Governance and training have probably been our biggest challenges,” he says. "It’s not unusual. Any large software deployment will have its sticking points and getting users up to speed quickly on new software tools is not easy. It’s time consuming and never moves as quickly as you want it to."

So what are the initial thoughts on dealing with ServiceMax?

“I like that fact that it aligns with our corporate strategy on standardisation, and the partnership we have with ServiceMax allows us to contribute to their roadmap. And ServiceMax’s functionality enables us to be more dynamic and support the business.”

What could be better?

“I’d like to see more systems integrators doing training as that will drive competitive pricing in PS resources. That will come in time as ServiceMax expands.”

It’s a fair point. It’s easy to forget that ServiceMax is still relatively new in software terms and new companies generally have a lot of energy and a willingness to go the extra mile to help customers. When Gupta was on the stage with ServiceMax CEO Dave Yarnold, it was clear from the outset that there was more to this arrangement than just a bit of back scratching.

 

So what does Schneider Electric get out of it beyond the original remit for buying software to manage its service teams? “The strength of partnership we have with them is enabling greater innovation in what we are doing with our service organisation. As a company, they think strategically about the software, which empowers us to do more strategic things with our service delivery.”

The industrial internet of things

One of the more strategic things is increased automation. Schneider Electric has been a massive advocate of the Internet of Things within its various customer industries, claiming that IoT is a driver for increased efficiency as well as increased sustainability.

Its own industrial IoT whitepaper talks about a “wrap and re-use approach” rather than a “rip and replace approach”, the idea being that this will enable greater business control through accurate machine intelligence.
This measured approach, it says, “will drive the evolution towards a smart manufacturing enterprise that is more efficient, safer, and sustainable.”

Gupta believes that IoT is a “fundamental strategy” that will significantly “change our service organisation.” In what way? “Technology is not the issue,” he says. “We can already do things quickly and efficiently. The biggest impact for us is the value we are able to give to the customer. This is where the biggest opportunity with IoT is for us – mitigating downtime, maintaining uptime and assets becoming predictive. IoT must become an operational strategy and not just be a vision. We are focused on scaling the innovation to an industrial level, not just pockets of visionaries doing isolated projects.”

As if to drive home the point, Schneider Electric also rolled out its VP of information process organisation, R&D and Innovation Efficiency. Twila Osborn, as well as having a long job title, is a mathematician. She worked on the space shuttle programme in the 1980s, using her problem solving skills on the well-publicised issues surrounding the shuttle’s heat-resistant tiles.

 

Today she works out of Boston in the US, designing processes across Schneider Electric’s data and technology platforms to ensure a lifecycle of data across the organisation. She has just finished with a proof of concept, she says, reaffirming that “R&D is relevant.”

Ground control

Her proof of concept is essentially about using automation to create a standard data flow across the organisation, “designing serviceability and scalability into the marketing attributes we need in the products from the very beginning,” she says.

“We can now look at the products and get metrics so we can develop competitive models now, looking at how we compare with rivals and plan accordingly. We can close the loop with our service team, so the engineer in the field can capture the data and look for upsell opportunities. It’s about service engineers getting the right product and parts while on site or maybe even like the Tesla, refresh the software without interrupting the user?”

She talks about value creation, not a standard phrase for a mathematician, and applies to the idea that the service technician has this increasingly important role in helping the company define its future.  “They are going to be critical in the chain,” she adds. “The speed of reaction will be huge and can alleviate customer problems quickly through the data telling you what is wrong – intelligence is becoming critical.”

So does she see service engineers selling or just good sources of raw ideas for R&D? “The automation will enable us to close the loop again with the service engineer who can see gaps in the market or problems and feed them back instantly to the product design people, so products will change based on real experiences in the field. So yes, the role of the service engineer will keep changing.” And selling?

 

ServiceMax’s Dave Hart, VP of global customer transformation steps in here. “It’s a fine line between serving and selling,” he says. “You don’t really want them to sell because they break the trusted adviser status. Empowering field service engineers to make more informed decisions thought, that’s different. A lot of companies don’t have direct sales forces anymore, so in many respects filed service is the touchpoint with the customer but not really a salesperson.”

Hart adds that if you speak to most field service leaders they will probably tell you that one of their biggest issues is data. They know it’s in there, they just can’t get it out the system in any meaningful way. “It’s usually in a bunch of disparate systems that don’t talk to each other,” he says.

And that is the problem Schneider Electric is trying to solve. It has a plan to coordinate the whole organisation; not a small task but if Osborn’s proof of concept flies you get the feeling it will be on that road relatively quickly.  She understands that you need meaningful data to glue a modern business together. It’s finding ways to make this data easily accessible and that makes Schneider, not for the first time, one to watch.

 

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The Internet of Things is enabling ABB Robotics to transforms its customer service offering, explains Magnus Sävenäs, VP Customer Service, Head of Global Field Service & Training at ABB Robotics.

The ABB Robotics division comprises of robot applications and automation systems across numerous industry sectors, including automotive, foundry, packing, metal and plastics manufacturing.

Over 250,000 robots have been sold worldwide. The majority (35%) are used in machine tending and materials handling, 35% in welding, 8% in painting and 22% in other processes.

The Robotics division has sales and service operations in 53 countries in more than 100 locations and employs 5,500 people.

The company’s motto is “easy to buy, easy to service”, but with such a diverse spread of industries and with customers ranging from large organisations with large “fleets” of robots to small SMEs, providing excellent customer service is challenging to say the least - each customer requires a specific service model, explains Sävenäs.

The robots are often employed in mission-critical operations such as manufacturing, so uptime is critical. No production plants are identical and neither are their service requirements. So service agreements are fully flexible, where customers can make their own choices from a variety of available services.

The company recognised it needed to change from being a cost-based reactive division into a value-based proactive one and that the Internet of Things would be a key enabler.

 

The service operation is now a data-driven business, with five key components: installed products database, service organisation, remote service, customer access to information, and knowledge management.

Product database

Each robot has a “birth certificate” and “medical journal” of all equipment during the entire lifecycle up to “disposal / replacement”. it includes a physical map of all equipment by product group, customer account and location, keeping track of warranty status repairs and changes, updated on-line at every service visit.

Service Management

Maintenance services from ABB Robotics includes preventive maintenance, remote condition monitoring, life cycle assessment, inspection and diagnostics.

In operations where equipment failure impacts severely on operations, Total Time To Fix performance is a critical KPI. For the Robotics service with its global customer base, this was particularly challenging and depended on several elements: initial diagnosis, parts identification, travel time and repair time.

The new service strategy has transformed that Total Time To Fix performance, and there are several key elements:

 

Remote Service

1. Troubleshooting
   Wireless connectivity tools allow ABB to provide a virtual dedicated troubleshooting expert within 5 minutes – an expert on-demand, remote support assistance in the event of a specific problem or failure. The service technician is transformed from a repair guy in the van to a process consultant/technician who can guide the customer remotely through any fault issues.That increases productivity for ABB Robotics and deliveries enhanced support to the customer because uptime is increased.
2. Condition monitoring
   Remote Service is also used to monitor the health of robots 24/7 to increase robot uptime and productivity while reducing the cost of ownership. The robot system is continuously monitored and an automatic alert is generated when the robot condition changes or a problem arises.Regular system health checks and reports are provided utilising secure emote connections. During scheduled sessions, data is downloaded and measured against established performance benchmarks. Based on the findings, maintenance recommendations can be provided.Conditioned-based, predictive and remote monitoring has improved Mean Time Before Failure and reduced Mean Time to Repair statistics.
3. Maintenance scheduling
   Remote Service can generate a maintenance schedule on the basis of actual usage to help reduce maintenance costs.Up to 50% of unplanned stops can be prevented, while robot systems can be brought back into production remotely, avoiding valuable production losses.

Knowledge management

ABB Robotics was previously heavily reliant on the experience, knowledge and skills of its technicians. The company’s Smart Service Information (SSI) platform means no individual is now expected to carry all the information.

Technicians can quickly search all documentation, and there are 3D animated maintenance procedures called ABB Siminstructions. The Smart Device for Service (S4S) is a “Two Pair Of Eyes” solution for problem resolution

Self-serving customers

Customers have a single point of access for all service information and contacts via the “my ABB” self-service portal. It’s an easy-to-use, service deliver eBusiness channel.

Customers can view a physical map of their equipment, their equipment status, service needs, parts and so on. They can view status and health of myRobot fleet; interrogate the system with queries such as “Show me equipment close to running out of warranty”,  “Show me equipment in the later part of the life cycle (due for upgrade) and ”Show me event log of robots”.

Internet of Things, Services and People – IoTSP

There’s lots of discussion in service management about the Internet of Things and Big Data. ABB has been developing a broader strategy which it calls the Internet of Things, Services and People – IoTSP.

Interconnecting things, services and people via the Internet improves data analysis, boosts productivity, enhances reliability, saves energy and costs, generates new revenue opportunities through innovative business models

 

For over a decade ABB has been working to develop and enhance process control systems, communications solutions, sensors and software for the IoTSP. These technologies enable our customers in industries, utilities and infrastructure to analyse their data more intelligently, optimize their operations, boost their productivity, and their flexibility.

ABB is advancing the IoTSP by helping customers develop their existing technologies, while keeping sight of our enduring commitment to safety, reliability, cyber security and data privacy.

The Internet is enabling a revolution in industry is connecting intelligent machines and the collective data generated from a growing number of electronic sensors. We are ‘seeing, hearing, and feeling’ our industrial processes like never before and this empowers the decisions we make to optimise performance.

This revolution allows us to operate machines more safely, with greater efficiency, and with lower environmental impact, not just individually, but as complete systems, working in harmony to enhance power and productivity for a better world.

 

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According to a new research report from analyst firm Berg Insight, the global number of cellular M2M subscribers increased by 23 percent during 2015 to reach 265.2 million and is set to hit one billion by 2022.

One of the main trends highlighted by The Global M2M/IoT Communications Market report is the rapid transformation of the wireless M2M/IoT networking technology landscape. 2G networks are gradually taken out of service to be replaced by more efficient 4G technology. At the same time, new enhancements are being added to the LTE standard to better accommodate typical M2M use-cases with large numbers of devices and very low data requirements. In addition, the leading players in the mobile industry have reached a highly significant agreement to define a new global standard for low power wireless communication based on mobile network infrastructure. The new NB-IoT standard was accepted by the 3GPP in December 2015 and will be included in the 3GPP Release 13, due for publication in January 2016.

Berg Insight believes that the initiative will become successful in establishing a global standard for lightweight IoT communication on public networks in the next 3–5 years.

East Asia was the largest regional market with 90.4 million M2M subscribers, followed by Western Europe and North America with 59.0 million and 52.5 million respectively. Over the next five years, the installed base of cellular M2M devices is projected to grow at a compound annual growth rate (CAGR) of 22.9 percent. “Our current view is that the 1 billion milestone for cellular M2M subscribers will be reached in 2022”, says Tobias Ryberg, Senior Analyst Berg Insight and author of the report.

As the cellular M2M market continues to grow, it is starting to generate substantial revenues for leading telecom operator groups. Verizon and Vodafone reported quarterly M2M/IoT revenues in the range of € 150–200 million each in the first half of 2015 and could be on track to reach € 1 billion on an annual basis within a few years’ time. Both groups have substantial telematics businesses, originally established through acquisitions. Besides traditional connectivity and professional services, they generate a considerable share of their sales from automotive products, driver assistance services and connected automotive applications.

 

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Marne Martin CEO of ServicePower explores how new challenges in field service are resulting in a delicate balance between digital innovation and industry pressures.

The field service industry is teetering on the edge of a precipice.

On one side are emerging technologies like mobile workforce management software, route optimisation, wearables, enterprise mobility software, operational analytics, IoT/M2M connected devices, and social collaboration. On the other is the shifting environment, including the changing workforce, the emergence of the millennials, legislative challenges and increasing competitive pressures.

Where the Age of Enlightenment that occurred from the 1600 to 1700’s was about cultural and intellectual change in Western Europe, based on new ideas around reasoning, analysis, and individualism, the ‘Age of Digital Enlightenment’ is very different.

It has created a digital effect on field service which requires that each organisation utilises technology, analysis and information together to enable new, better ways of delivering service, while meeting its business goals.

Emerging technologies, digital technologies, in particular can be transformational to field service. However, field service organisations must balance new technologies to meet compliance and productivity goals, and ultimately achieve the highest levels of customer satisfaction and profit for the business.

Field Service Challenges

Field service organisations are continually challenged, by not only increasing competition, declining margin and changing customer expectations, but also a myriad of other issues, including:

• Evolving business strategy - Business strategy must be continuously adapted to address changes in the competitive environment, changes in customer’s communication preferences and changes in labor supply.
•   Legislation - Legislative changes absolutely impact how field service organisations operate. Legislation must be identified and business process designed or changed to accommodate them.
•   Emerging technologies - Social, mobile, analytics, cloud, wearables, and IoT/M2M are transformational and absolutely should be evaluated for impact to the business.
• Emerging millennial workforce - The workforce is aging. The millennials are increasing backfilling the ranks. They grew up with mobile and social technology. They are motivated differently than their more experienced peers.
• Competitive pressure - The competitive environment changes every day, with new entrants and early technology adopters, like Uber.

Impact on the sector

Field service doesn’t stand still. Established organisations continue to be threatened by new market players.

Meanwhile, the field service industry is reinventing itself, eliminating manual processes and schedules which are costly and inefficient. Field service recognises now the value of field based resources. People are our greatest opportunity and highest costs. We must fight for talent, especially as the labour pool shifts towards millennials.

There is confusion over which technologies to implement, in terms of legislation and productivity. In Europe, for instance, traveling to work is now considered part of reimbursable hours for employees. What workforce management software is best capable of handling accounting for this legislative change, and the new schedule complexity, while improving productivity and efficiency at the same time?

 

These challenges, these impacts on the industry, are the biggest threats to field service; they are also our biggest opportunity.

Navigating the Future of Field Service

All challenges that face field service organisations today can be addressed with emerging technology that transforms operations.

• Real time optimisation improves productivity and efficiency, while also reducing costs.
• Mobilised on-site processes improve first time fix rates and the customer experience.
• Operational and business analytics improve oversight and operational performance.
• IoT/M2M connected devices facilitate the evolution from reactive repair based models to proactive, less costly and more customer friendly models.
•  Social collaboration leverages the comfort of millennials workers to improve first time fix rates and reduce field based overhead.

Bridging the Divide

Bridging that precipice, between the digital effect and the industry challenges, requires quick and decisive action.

• Act strategically – Look at what technology delivers the greatest return on investment and prioritise your investment where it matters most.
• Recognise that field service (people, process, IT, parts, etc.) usually crosses multiple aspects of the organisation.
•  Be sure to gain alignment and recognise that every function has a vested interest in success.
• Don’t forget to build a business case and agree the metrics for success.
• Employ creative thinking to challenge the status quo and rethink how that strategy can be delivered.
•  Work with technology vendors that understand innovation and what’s possible.

Field Service is a critical part of most businesses today. Field based resources are often the only touch point with your customer post sale.

Take advantage of new technologies to build a platform for success which improves visibility and increases flexibility across the service value chain. Adapt faster and more efficiently to external change and new company strategies.

Productivity drives profits in your business!  Your competitors, and even businesses you don’t know about yet, are heading that way so Cross that bridge now before it is too late.

 IoT will change field service from reactive to proactive: one of three key take-aways from the Servicemax's inaugural MaxLive Europe event in Paris. Marc Ambasna-Jones reports.

Customer events are always a mixed bag given the nature of the crowd. You can never please everyone but they are also a good indicator of how well a company is actually doing beyond its sheen of marketing.

Pacing the specially erected stage in the Salon Opera ballroom at Le Grand Paris hotel, ServiceMax CEO Dave Yarnold told the 270 people gathered about his dream.  When he first came to Europe to pursue a few leads in the early days of the company, he hoped that one day ServiceMax would host an event just like this in a grand setting and full of customers.

Dream achieved, the company now has another goal, to turn the service software industry into a billion dollar global market with ServiceMax at its head. Ambitious? Yes of course. Achievable?

Perhaps. The numbers came thick and fast – the third largest Salesforce.com ISV, 150 new customers in the last 12 months, 300 per cent year on year growth, 90 plus parent consultants and so on. In its own words, ServiceMax is “evolving from a reactive, to a proactive, to a predictive business.”

In a nutshell, this sums up the demands of the rapidly changing service profession.  New technologies are forcing change again but this time at unprecedented levels.

 

This event was about showcasing that change. It was an attempt to lay out a plan, to identify the future and reinforce the idea that the changes will be for the better.

We took three things from the event:

The Internet of Things is more than just a buzzword

Kevin Ashton is often credited with being the father of  the term "Internet of Things"  term after writing it on a presentation in 1999 while working at Procter and Gamble.  He had this idea that the company should put RFID tags onto its products to improve product tracking and create real time stock management.

However, Ashton does not claim to be the ‘father of IoT’. Rather, the term ‘IoT’, he says, was created by someone on Twitter, who had shortened the internet of things into an easily manageable hashtag.

His views on the future clearly captured the imagination and raised a few eyebrows too. His suggesting that by the next century more than half the world will be vegetarian prompted muttering in the audience but he wasn’t here to talk about food...

What did he think of IoT and its impact on the service industry?

“Well the irony in the service sector is that the best service person is the one you never need to see,” says Ashton.
“Fewer resources wasted on needless service and less downtime for someone using a piece of equipment because service can be done pro- actively,” he adds, suggesting that this is what ServiceMax is enabling by adopting an IoT approach to service.

Ashton predicts that in the age of IoT, software as a service will shift to ‘service as software’, with service becoming increasingly interrelated with software in new ways. According to Ashton, this phenomenon will generate both predictive and self-diagnosing service.

 

So what does ServiceMax CEO Dave Yarnold think?

“Field service is now the first industry to benefit from the disruption of IoT,” he says confidently, “transforming from under-funded afterthought to under pinning new business models, revenue creation, and influencing product design.”

New global research from Field Service News, commissioned by ServiceMax and IoT partner PTC, found that forty-five per cent of field service management professionals believe the IoT will likely have the biggest impact on field service by 2020 -- more than big data, smart glasses, augmented reality or any other technology.

More than half of field service professionals surveyed say they are already implementing or planning to implement an IoT-based strategy, and seventy-four per cent do not think the size of a company matters when implementing IoT field service strategies in their organisations.

The service model is being flipped on its head

“Moving forward, we will begin to see service outcomes designed into products at the R&D level, as well as the ability for equipment and devices to become capable of recommending companion products to customers for cross sell and upsell opportunities,” says Yarnold.

One of the customer examples Yarnold was most excited about was the one from Timo Okkonen of inspection, testing, certification consultancy services firm Inspecta.

Okkonen spoke brightly about “influencing everything for our kids.” The company’s vision, he says “is to save the planet through improved maintenance and service.”

It’s this idea that excites Yarnold because this customer is using his software to not just manage service engineers but actually helping to re-shape the company’s entire approach to business.

It’s a view shared by Jerome Piche, global customer service VP at medial diagnostics company bioMerieux in France. “How can we be more efficient to increase the first time fix?” He asked. “We are organised in silos but this is a way in which we can break the silos and have a more end-to-end view.”

Piche was referring to the idea that the mobilisation of the software and the ability to manage and analyse service data more efficiently is changing the game.

ServiceMax describes this as a transformation, where service is now starting to influence decision making and opening up new opportunities for businesses to increase efficiencies.

In fact the company believes in it so much it wrote an e-book called Diamonds in the Rough: Unleashing the Power of Field Service Transformation. Not your average bedtime tome but certainly something to get those transformational juices flowing.

People and skills are changing fast

According to the Bureau of Labor Statistics in the US, there will be 800,000 additional service workers in the US by 2022.

It seems that despite technology, the service industry is growing and we will need more techs than ever before.
But is this right? Is the industry really going to support a huge growth in personnel at a time when automation technology is starting to have such an impact on service efficiency?

If anything the role of the service professional is going to change more rapidly. The pressures to change will only increase with technology advancements.

 

“How do we stop the technicians talking in ‘techlish’ and ensure service permeates through a business? How do we make it sexy to them because I think it’s the sexiest business in the world,” says  ServiceMax CTO Hari Subramanian.

John Cooper, head of service for Sony Professional Solutions Europe supported the idea that attitudes towards service professionals have changed and professionals themselves need to evolve to meet the new demands and expectations of customers.

“We were seen as a necessary evil in the service department,” says Cooper.

“We just took care of things. There was a lack of visibility but now with ServiceMax we can have visibility and prove we add value.” It is this justification of the role that fits with the general theme of the event – transformation through technology and using the data to increase an understanding of customer service requirements while reducing waste So should service people evolve into a sales role also? Should they really upsell the customer?

There was a certain degree of egg shell treading but the consensus is that service techs do have to evolve and embrace the idea of soft selling.

While Dave Hart, ServiceMax’s VP of global customer transformation urges caution for, quite rightly, concerns around undermining the service tech’s credibility and trusted status, he does concede that perhaps there needs to be a change, an evolution in roles as field sales team numbers dwindle across industries.

“In this new economy service is the difference,” said the introductory video, highlighting the change that is coming.
Technology and in particular IoT and data analytics are impacting all industries and you have hundreds if not thousands of businesses jumping on the train to try and capitalise, to forge niches, conquer markets.

ServiceMax is no different although in Field Service they have a head start on some of their peers. The industry, though, is surely in for a rollercoaster ride.

 

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

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

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

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

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

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

 

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

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

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

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

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

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

 

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

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

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Want to know more? Click here to download the full research report

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Actual implementations

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

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

 

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

Main reasons for adopting IoT

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

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

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

 

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

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

Barriers to adoption

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

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

 

Tied heavily to this of course is connectivity.

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

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

Conclusion

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

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

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

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Want to know more? Click here to download the full research report

 

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