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Michael Blumberg outlines why good Service Lifecycle Management infrastructure is the key to generating exceptional aftermarket revenue...

Mize have published a new whitepaper called, Service Knowledge Management - The Key to Improving First Time Fix.

Providing your customers with a great Service Experience is a function of your field service technician’s ability to quickly fix problems right the first time.  

Unfortunately, technical know-how is getting harder and harder to come by.  

While this information may exist in your company, the knowledge assets may be difficult for technicians to find or access it in a timely manner. 

Mize have developed an optimal solution that helps FSOs overcome this challenge which results in:

• Higher Technician Productivity, 
• Reduced Support Costs 
• Improved First Time Fix rate. 
• Enhanced Customer Experience 

To learn more, download the new whitepaper from Mize here.

While the most common reason for not replacing an existing field service management system is cost, efficiencies gained from a technology-based system often negate that argument. Further, companies using dynamic scheduling can gain a 20% - 25% improvement in operating efficiency, field service productivity, and utilization. Other reasons to consider a change are opportunities for growth, more accurate and reliable data, flexible and scalable scheduling, and positive impact on KPIs.

With a seemingly infinite choice of features, identifying a workforce and scheduling management platform that is cost-effective and offers what you need without unnecessary add-ons that don’t add value can be a challenge. Most systems offer a customizable range of features and benefits appropriate to your industry, size, and business objectives.

A benchmark survey by Blumberg Advisory Group indicates that advanced tools like Dynamic Scheduling software allows companies to perform more efficiently and effectively by optimizing scheduling and associated functions. Companies that use these tools also are more likely to have an SLA compliance rate of 90% or higher. Field service workers scheduled through an automated process are also more likely to complete five or more calls per day, at a utilization rate of 85% or higher.

"It is virtually impossible to remain competitive in the environment using manual scheduling.."

In addition, companies that utilize advanced tools are more likely to be able to manage and schedule a higher volume of service events. For example, half (49%) of the companies surveyed that use advanced receive at least 500 service request calls per day, and about half of those companies (26%) receive 1,000 service calls per day.

They are also more likely to have a higher ratio of FSEs to schedulers than companies who do not use w technology. In summary, Dynamic scheduling software offers clear advantages to field service organizations regardless of the industry, services, revenues, or number of field service workers.

Automated technologies provide enhanced functions beyond the capabilities of the most adept schedulers and other manual approaches. Being able to get the best qualified FSE to the customer site at the right time, relies not only on identifying a knowledgeable technician and the necessary parts but ensuring they get to the customer site within the timeframe promised. Using a scheduling software system can make this happen while simultaneously adjusting the calls, routes, and ETA’s of other field service workers to maintain responsiveness and avoid jeopardizing schedules.

The business intelligence collected and stored in these systems allows FSOsto make better decisions about what inventory and tools to carry, equipment to be repaired or replaced, routes that should be developed or changed, and other factors that influence the bottom line.






More and more field services organizations recognize this need and adopting dynamic scheduling platforms, leaving businesses that do not provide these increasingly expected and desired services struggling to compete.

You can download the whitepaper, Creating an Uber-like Service Experience: Benchmarks and Best Practices in Field Service Scheduling, here.

Life is full of fine lines. Genius and madness are two sides of the same coin it is often said and the balance between science and art is one full of intricate nuance. Similarly the relationship between increasing service revenue and healthy profit margin relies a a special type of alchemy, as Michael Blumberg explains...

Companies who are extremely effective at growing their service revenue while maintaining healthy profit margins typically have a very good understanding of the size and forecast of the markets they serve.

Their perspective is not defined solely terms of an order of magnitude, for example stating “their market is approximately $500M -$750M, but articulating the size of their market down to the exact monetary value (e.g., £, €, $, etc.) of revenue and decimal point of the growth.

Knowing the exact size and forecast of service markets is critical for making optimal decisions with respect to investment and resource allocation. For example, it might be important to have this information on hand prior to building a marketing strategy, establishing a division, or developing a service offering for it. If the data validates that a market segment is large and growing rapidly then a more aggressive investment maybe warranted. Rely solely on an order of magnitude or general assumptions can lead to miscalculated decision that results in a significant loss or failure for the company.

"While obtaining a granular level of data on the size and growth rate of a market segment can help service executives make better decisions and ensure better results, it is surprising the many do not attempt to obtain this level of insight..."

While obtaining a granular level of data on the size and growth rate of a market segment can help service executives make better decisions and ensure better results, it is surprising the many do not attempt to obtain this level of insight.

Instead, service executives often rely on gut instinct or settle on an order of magnitude, given some related indicator. For example, we often hear service executives claim that it is enough for them to simply know that service market for a product is large because sales of the product have been high .

The problem with this type of market analysis is that it assumes that 100% of people who have bought a product will also purchase the service.

The truth is that very few, if any, companies have a captive market or experience 100% attachment and renewal rates. Even Best in Class companies experience averages attachment rates of 76% and 90% renewal rates.

Unfortunately, relying on KPIs does not take into account broader, strategic and objective factors such as the installed base size, competitive threats, economic factors technology trends, or other market trends, More importantly, it does not provide any hard data related to revenue which also necessary for developing objective ROI and/or make versus buy analysis.

While surveys and secondary research also have merit when it comes to market sizing and forecast, they too have their shortcomings. Surveys and secondary research can of course provide insight into size and growth of a market as well as answer questions with respect to who buys, what do they buy, and factors influencing supply and demand.

However, they do not measure the actual size and growth of the Total Available Market (TAM) for the service under consideration at any level of precision. A shortcoming of secondary research is that it may not specific enough or tailored in its the perspective. The research methodology behind the forecast may also not be very sound or defensible.

"We have found econometric market models to be very effective method for conducting this type of service market analysis..."

Ultimately, a good TAM analysis is one that takes into account the size and growth rate of the customer base or installed base as well as the serviceable value of that base along with its anticipated growth rate. We have found econometric market models to be very effective method for conducting this type of service market analysis.

A good econometric model considers several data points related to the number buying organisations, types of buying organizations, purchase trigger events, equipment penetration rates (i.e., shipments), population density, replacement rates, and revenue allocation by service category and/or equipment category. These factors help determine the size and value of the serviceable customer or installed base while surveys and secondary research provides data points (e.g., price points, average spend, etc.) necessary for determining current and forecasted revenues and/or expenditures for a given service.

Building an econometric model to determine the size and forecast of the TAM may seem like a lot of work. However, the efforts are worth it and can prevent a company from making serious mistakes and/or miscalculations about their market opportunity. Several years ago, a client of mine gave a presentation at an industry conference where his competitors were present.

The presentation showed that his service business was growing twice as fast as the market. Although he had commissioned us to build a TAM model, he chose to compare his company’s revenue growth to market size data from an industry analyst’s report (i.e., secondary research). After the presentation, I asked him why he didn’t present our data. “We based our investment and resource allocation decisions on your model not the secondary research. We want to keep this fact a secret from our competitors as long as we can” was his reply. Had his company relied only on secondary data they would have had different results. His answer provided that his investment in building the market model was worth it.

To learn more about using econometric modelling to determine the Total Available Market for your company’s services check out Blumberg Advisory Group’s Revenue Maximization practice at https:// blumberg-advisor.com/revenue-maximization/

In fact, it is those smaller organisations that may likely see the biggest benefits.

Michael Blumberg is President of the Blumberg Advisory Group and founder of Field Service Insights

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Michael Blumberg reveals some of the key findings of the latest research into field service Scheduling and Dispatch to come out of Blumberg Associates...

A critical success factor in managing a Field Service Organization (FSO) is the ability to effectively schedule and dispatch field service engineers (FSEs).

It is about making sure that technicians arrive at the customers’ site at the right time with the proper tools, knowledge, and resources to resolve the problem during their initial visit.

First Time Fix is the name of the game in field service. FSOs run the risk of incurring additional costs and damaging their customer satisfaction any time their First Time Fix target is in jeopardy.

There’s a lot at stake for FSOs when it comes to effectively scheduling and dispatching FSEs. There are significant challenges for FSOs, particularly if many service visits are required each day, dispatching is made from a large pool of FSEs, and the FSO is financially penalized by the customer when response time commitments or Service Level Agreement (SLAs) are not met.

"First Time Fix is the name of the game in field service. FSOs run the risk of incurring additional costs and damaging their customer satisfaction any time their First Time Fix target is in jeopardy..."

 

Over the last 10-20 years, FSOs have turned to advanced tools and technology to automate the scheduling and dispatch process to improve this activity.

These tools range from appointment setting applications to dynamic scheduling software based on artificial intelligence and operations research algorithms.

To understand how these tools are deployed in the field as well their impact on service performance, Blumberg Advisory Group and Field Service Insights in conjunction with Timing Software conducted a benchmark study among 150 FSOs. In this article, we will examine the impact of automated appointment booking applications and dynamic scheduling functionality on performance.

Most FSOs had limited flexibility in their appointment booking process.

• 59% offered their customers the first available time slot while the remaining 40% provided their customer with alternative options
• Approximately half (49%) set appointments 5 days out or longer. This reflects that they have limited ability to handle emergency and/ or expedited requests.
• Less than one-third (30%) were capable of booking appointments 1 to 2 days in advance. However, nearly two-thirds (65.7%) utilized automation to help identify or locate available appointment times.
• Almost three-quarters relied on the automation supplied by their CRM/ERP software vendor.
• Less than 9% utilized a separate, best of breed scheduling solution for appointment booking, while the remaining depended on a customized system developed in-house.

FSOs who utilize automated appointment booking offer a better customer experience than those who do not.

There is a higher level of customer engagement because it provides the customer with options and a feeling of control when service is provided.

Companies that utilize this functionality are four times as likely to handle a 500 or more service requests per day and experience a higher FSE to Dispatcher ratio that those who do not.

The second step from booking an appointment is the actual scheduling of FSEs.

• One half assigned FSEs to customer sites based on their skill set, availability, and proximity.
• Remaining 50% either determined the schedule for their FSEs by dispatching the same FSE to the same site every time or assigned the same FSE to the same site having the FSE determine their own schedule.

Two-thirds of survey respondents utilized an automated process/system.

Approximately half (51%) used software that contains some type of algorithm which optimizes scheduling based on specific criteria (e.g., cost, travel time, etc.) or pre-defined factors. Less than one-third (31%) have a scheduling system on a rules-based engine. The remaining 17% have an AI based system that improves their scheduling process based on dynamic variables.

"FSEs who use automated scheduling software are 47% more likely to complete 5 or more service visits per day..."

The use of automated scheduling software has several benefits to FSOs. Our survey results indicate companies who utilize this type of software are 45% more likely to handle 100 or more service requests per day.

They are also 39% more likely to experience an SLA compliance rate of 90% or higher. In addition, they are twice as likely to have FSE rates of 85% or higher.

Furthermore, FSEs who use automated scheduling software are 47% more likely to complete 5 or more service visits per day.

Our findings suggest that appointment setting functionality plays a critical role in improving customer experience, increasing service productivity, and operating an efficient dispatch centre.

Automated scheduling software provides measurable improvements with respect to FSE productivity and efficiency. In the last year, 99% of FSOs surveyed incurred a financial penalty or were required to provide a customer rebate for missing SLA/response time targets. Almost half (45%) missed these targets more than 24 times last year.

The use of advanced tools and technology like automated booking and scheduling software will have a significant improvement in reducing or eliminating the frequency of these occurrences.

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Field Service Insights is a subscription-based, membership website headed up by long-time fieldservicenews.com associate columnist Michael Blumberg. Fieldservicenews.com has arranged an exclusive free trial period to this exciting new members community for field service professionals.

Michael Blumberg himself tells us more...

At Field Service Insights, every month, we bring you thought-provoking content designed to help you thrive in core areas of your business.

With over twenty-five years’ experience in the field service industry, we are continuously researching and evaluating industry trends, benchmarks, and state of the art. We are skilled at helping field service leaders anticipate the future, overcome obstacles to growth, and implement lasting change.

Field Service Insights was created based on the thought that providing overall service or having exceptional customer satisfaction is not easy. We know that field service leaders must continually deliver exceptional service, demonstrate value, and contribute to their company’s bottom line.

"Let’s face it, Field Service Organizations can’t invest in new tools or strategies simply because of their competitors. Analysis and due diligence are required when making these types of decisions..."

We understand the many challenges field service leaders face. We are aware that they don’t have access to unlimited capital resources. Every decision must lead to measurable results. Positive impact is key from day one.

Let’s face it, Field Service Organizations can’t invest in new tools or strategies simply because of their competitors. Analysis and due diligence are required when making these types of decisions.

Our mission at Field Service Insights is to provide field service leaders with insights and perspectives that can transform their business and provide added value for their customers. We want to help them shorten the learning curve and accelerate their transformation process.

By joining Field Service Insights, you will gain access to the latest strategies, tools, and perspectives on Field Service Management to help you increase service revenue, boost profits, and customer satisfaction.

For a limited time, we are offering Field Service News viewers a FREE 3-Month Individual Subscription of Field Service Insights.

Click here to take advantage of this offer

You don’t want to miss the valuable insights and perspectives from Field Service Insights! Join us TODAY!

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Scheduling software has long been a foundational technology for field service companies allowing them to meet customer demands. Michael Blumberg lifts the lid on all of the key aspects of this crucial tool...

If you have spent any time in Field Service, you probably understand the importance of managing service delivery functions against key performance indicators (KPIs). Among the most critical KPIs in the Field Service Leaders track are First Time Fix (FTF), Service Level Agreement (SLA) Compliance or Onsite Response Time (ORT), and Mean Time to Repair (MTTR). These KPIs measure the effectiveness of a Field Service Organization (FSOs) in delivering quality service in a timely manner.

The inability to meet KPI targets may result in exponential costs, customer attrition and loss of revenue; whereas the ability to exceed customer expectations can result in customer appreciation followed by an increase in profit margins and sales. To effectively schedule/dispatch the right technician to arrive on time with the right parts and skillset plays a significant role in meeting these outcomes. This is definitely not a small feat for your typical FSO.

"Scheduling and dispatching Field Service Engineers (FSE) poses a challenge for most FSOs, particularly those with more than 5 FSEs. The reason behind this is there are many variables and factors involved..."

Scheduling and dispatching Field Service Engineers (FSE) poses a challenge for most FSOs, particularly those with more than 5 FSEs. The reason behind this is there are many variables and factors involved.

An FSO with only one or two FSEs and a few customers may not perceive scheduling to be a major challenge. The volume of service requests may be relatively low while the options of who, when and where to send them may be rather limited. Scheduling becomes more of a challenge as the volume of service requests (i.e., customers) and the number of FSEs increases.

Adding to this complexity are the business objectives and/or constraints an FSO must optimize to meet its scheduling requirements.

With additional constraints or objectives, the more difficult it becomes to produce a solid schedule. For example, if the objective is to only meet a response time commitment to the customer, then the decision is easy - assign the FSE who can arrive in a timely manner at the customer’s site.

If FTF, MTTR, and/or SLA Compliance targets are also part of the equation, it becomes even more difficult to produce that solid schedule. Adding a profit margin objective, high call volumes, multiple geographies, and a sizable pool of FSEs, the decision becomes even more overwhelming.

"The reason why scheduling is so excruciating of a task is that there are numerous factors that an FSO would need to create and evaluate to determine the optimal assignment for each FSE..."

The reason why scheduling is so excruciating of a task is that there are numerous factors that an FSO would need to create and evaluate to determine the optimal assignment for each FSE.

This is a time-consuming activity that requires an extensive amount of computational power to achieve. Many companies have suffered from a loss of time and resources in dealing with confusion and potential human error. The solution is Dynamic Scheduling Software.

Dynamic Scheduling Software provides FSOs with the feature-rich functionality that streamlines, automates, and optimizes scheduling decisions.

This technology ensures the FSO sends the assigned technician to the right job having the proper skill set and arriving on time. These applications typically leverage a scheduling engine that optimizes FSE job assignment. Scheduling engines vary in their complexity ranging from those based on business rules to Linear Programming (i.e. goodness of fit) techniques, Operations Research Algorithms (e.g., Quantum Annealing, Genetic Algorithms, etc.), or Artificial Intelligence (AI)/Self-Learning applications.

The complexity of the scheduling problem, number and types of resources involved, duration of tasks, and objectives to be optimized play a role in determining which scheduling engine is most functional.

Critical factors to consider may include whether the scheduling engine can handle:

1. multi-day projects or short duration field service visits,
2. people and assets (e.g., tools, parts, trucks, equipment) or solely people,
3. the number and types of KPIs that are part of the objective, and
4. route planning requirements.

In evaluating Dynamic Scheduling Software, FSOs are also advised to consider the following criteria:

• Cloud versus On-Premise Deployment Options
• Speed and Ease of Implementation
• Integration with Back-office Systems
• Availability of Real-time Visibility by the Customer
• FSO Requirements for Best of Breed or Integrated Enterprise Solution
• Total Cost of Ownership
• Return on Investment
• Vendor Industry Knowledge and Experience

There are over a dozen software vendors who offer some form of dynamic scheduling functionality for field service.

Obviously, no two Dynamic Scheduling applications are alike. Each one has their points of differentiation. The best solution is a function of the level of importance the FSO places on each criterion and how each vendor meets these criteria.

Regardless of which vendor is selected, the benefits of Dynamic Scheduling are clear.

In fact, industry benchmarks show that companies who implement these types of solutions can achieve a 20% to 25% improvement in operating efficiency, field service productivity, and utilization. The impact on bottom line profitability and customer satisfaction is substantial. To enable FSOs to provide customers with an Uber-like experience and significant profitability, FSOs should consider deploying Dynamic Scheduling Software as part of their service delivery infrastructure.

Michael Blumberg, is President of the Blumberg Advisory Group 

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