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By 2020, there will be more than seven connected devices for every person alive. Service providers must anticipate this new reality, the speed at which it’s emerging, and its impact on business models explains Joe Kenny, Vice President Global Customer Transformation & Success for ServiceMax, a GE Digital company.

The global economy is in the middle of the most disruptive period in all of human history. Companies that have been fuel for the global economic engine that powered the late 20th century are quickly disappearing from the global stage.

According to the Olin School of Business, 40% of today’s Fortune 500 companies will be gone in the next 10 years. Much of this business transformation is due to the accelerated advancement of technology. We are, in effect, making better and cheaper things that enable us to make better and cheaper things. Organisations that do not recognise this reality, and adapt to it, are going to face incredible challenges, much faster than ever before.

While many people are amazed at the success of Uber, few consider the consequences to Uber’s competitors.

While many people are amazed at the success of Uber, few consider the consequences to Uber’s competitorsIn New York City, a taxi medallion cost $1.3m in 2014 and two years later they were selling for $250k (Business Insider – 12 October 2016). That same article noted that the total share of all taxi rides for medallion owners in New York fell from 84% in April 2014, to 65% in 2015; A 20% market share decline in 12 months. Those that invested, over generations and decades, in N.Y.C. taxi medallions, will eventually see those medallions lose all of their value.

Ray Kurzwiel, futurist and author of the book, “The Singularity is Coming”, states that based on our current rate of change that, “from a historic perspective, the 21st Century will experience 20,000 years of technology advancement in 100 years”. What is driving this “Age of Acceleration”? The information and communications revolutions of the late 20th century. So, what does all of this have to do with how we service our corporate equipment and assets? Better, cheaper, and faster technology allows for a fundamental paradigm shift in how service providers approach customers and their markets.

Leveraging the technical revolution allows for machine to machine communication, remote asset monitoring, preventive maintenance planning, and predictive analytics. This is not something that is coming, it is something that is already here.Leveraging the technical revolution allows for machine to machine communication, remote asset monitoring, preventive maintenance planning, and predictive analytics. This is not something that is coming, it is something that is already here.

Major markets that have embraced these technology advancements include aviation, transportation, and power generation. Aviation Week reports that an average twin-engine plane can produce over 850 terabytes of data over 12 hours of flight. That data informs on everything from temperature, vibration, oil pressure, basically every aspect of that asset’s performance. It informs service providers of the exact status of that asset over time, when it will need maintenance, and exactly what maintenance it will need.

That level of information will shortly be available on almost every asset in service. Currently, there are approximately 28 billion connected devices on the planet. In the next three years, that number is expected to almost double to more than 50 billion.

That is more than seven connected devices for every person alive in 2020. Service providers need to anticipate this new reality, and more importantly, the speed at which this new reality is emerging. Positioning a service organisation to leverage these capabilities, access these technologies, and drive efficiency, effectiveness, and technologically advanced service will be critical to their survival in the market. It’s one of the main factors driving the exponential rise of field service.

Utilising technology to drive predictive maintenance, guaranteed uptime, defined service windows, and the move to defined service outcomes will be the price of admission to providing service and maintenance.Utilising technology to drive predictive maintenance, guaranteed uptime, defined service windows, and the move to defined service outcomes will be the price of admission to providing service and maintenance.

By way of example, GE already has 800,000 Digital Twins in operation that provide a digital mirror on the status and performance of equipment - covering assets from jet engines to wind turbines - allowing engineers to predict when they need servicing - helping field service engineers make sure that they perform the right service, right first time. Soon there will be more than a million Digital Twins in operation. If you are not positioning and preparing for this reality now, you may already be too late.

While there is always talk of the high cost of doing nothing, in the past there was a period of time for reflection, evaluation, and a window of opportunity to changes one’s mind. That will not be the case in the future. A missed opportunity will be gone before you know it.

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For our latest research project, which we ran in partnership with ServiceMax from GE Digital our focus was to see what the field service engineer of the near future will look like. We are now into feature three of our online coverage of the findings of this research where we look at some of the conclusions drawn from the first part of our analysis and highlight some of the key statistics the research revealed.

To recap in the first part of this series we looked at the research aims, the threat of the ageing workforce and the changes in training methodologies that are emerging. In part two we explored if and if and how field service companies are utilising their experienced field service engineers to train the incoming generation.

Now let's dive in to part three...

 

There is also a detailed white paper outlining the wider findings of this report which is available to fieldservicenews.com subscribers...

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Companies are aware of the challenges but are they reacting quick enough?

It is clear from our findings that the role of the FSE is undoubtedly changing.

Field service companies are today seeking much more rounded individuals, who are as proficient as dealing with face to face interactions with the customer as they are dealing with technical maintenance issues.

It is also clear that whilst it may have been exaggerated in some quarters the challenges of replacing an ageing workforce is very much a real threat to a large number of field service organisations. However, the fact remains that these challenges may also essentially be set resolve each other.

There have been numerous explorations and studies into the traits of the Millennial generation and one of the key observations that is often raised is that Millennials are on the whole a more confident generation than those that preceded them, who also value variety within their working lives - perfectly suited to a role that balances both technical and customer service elements perhaps?

Connected Assets, Machine Learning, AR and of course a solid FSM system can all empower field service engineers to be the brand ambassadors field service companies today are seeking.What is clear though is that the link between the two will be provided by technology. As discussed above, technologies such as Augmented Reality can go a huge way to bridging the gap between the experienced engineers that are in the latter part of their careers and those who are just entering the workforce. It is, therefore, a bit of a surprise that so few companies are actively embracing such tools as yet.

Perhaps, here is the real issue and the underlying challenge.

Technology really does provide an answer to most of all of the challenges discussed in this series so far. Connected Assets, Machine Learning, AR and of course a solid FSM system can all empower field service engineers to be the brand ambassadors field service companies today are seeking.

They also provide a platform for easing the transition from ‘a ‘Boomer workforce to a Millennial one by creating far more economically efficient means of extending the older FSEs productive career span, bringing them out of the field and allowing them to offer guidance remotely.

However, it seems that for many perhaps there is a lack of urgency.

There is a sense that for many companies it is a case of ‘yes - we see the challenge and we’re aware of it but aren’t actioning it just yet...’ One suspects that perhaps because the issue of an ageing workforce isn’t quite critical enough as yet and the fact that solutions do exist and are in-fact becoming fairly well established already, the danger doesn’t seem as particularly real as it should for many.

However, whilst the systems and technologies are certainly available to overcome these challenges, implementation and realignment of processes will take time and unless companies act soon, the ageing workforce crisis and rapid evolution of the FSE in a millennial guise may just catch them unawares and then the risk may just still live up to the hyperbole after all.

Some of the key statistics from the findings:

• 48% of field service companies believe the threat an ageing workforce poses to their field service operations is either significant or severe
• 18% of field service companies believe their exposure to an ageing workforce will be limited
• Only 10% of field service companies have redeveloped their training methodologies to be more attuned to Millennials entering the workplace
• 78% of field service companies are in the process of or are planning to overhaul their training processes
• 20% of companies actively use their senior engineers in a remote expert capacity to guide younger Field Service Engineers in the field
• 98% of companies are prioritising softer, inter-personal skills as key attributes more now than they have done in the past when hiring new field service engineers[/unordered_list]

Want to know more? There is also a detailed white paper outlining the wider findings of this report which is available to fieldservicenews.com subscribers...

Not a subscriber yet? Click here to apply for a complimentary industry practitioner email and get this resource sent to you instantly

(Please note that by applying for your subscription via this link you accept the terms and conditions here and a plain English version is available from our main subscriptions page here) 

 

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This is page two of this feature. If you arrived here first then click here to go to the beginning of the feature.

There is also a corresponding white paper on this subject, which you can access by clicking this link and completing the brief registration form.  

Process

The next area of consideration is process. What is the level of process change? Once again we look to the above points to be able to begin to what we will need to change in terms of processes in our business, how these changes will impact our business and ultimately how we can best manage these changes.

As with structure the key to managing change in processes is to be able to see the full picture and understand how each interaction within your company may be affected. [quote float="left"]As you assess the impact of your change management program it is essential to look across each and every process that is undertaken to understand if it is subject to change

 

Whether it is between office and field based staff, differing divisions within your company (service operations and sales for example) or even between your company and other third party organisations (either client or provider) you need to understand how your change management program will impact these interactions.

What changes will need to be made to your internal processes in order to accommodate these alterations? As you assess the impact of your change management program it is essential to look across each and every process that is undertaken to understand if it is subject to change and if so what those changes will be.  Then as with structure it is imperative that these changes are identified with all stakeholders informed and where required, new lines of responsibility clearly demarcated.

Tools

Finally we come to the point where perhaps many of us may have thought we should start –the actual tools that we will be bringing in, indeed those very tools that are the driving force of the whole change management project itself. Depending on where you are in the process of selecting your new system you may well have already chosen your new solution/configuration etc.

However, if you are still in the early stages perhaps you should consider bringing in representatives from various divisions of the workforce including managers, as well as field and office based operatives, as part of the selection process.

Not only will they give you great insight into how the tool will be implemented, but also they will form a core of your change agent network – a topic we will look at in further detail later in this series.

Yet if the decision has already been made in terms of selecting the tools you will be using then this may not be an option. You can however certainly turn to your technology provider to ask for their guidance at this point – they should be prepared to be share with you their experience of previous implementations and any good technology provider should be offering their full assistance throughout the implementation process and can be an invaluable partner as you tackle your change management program.

 

It is important to explore each of the above areas, assessing how they will be impacted by your change management program and planning how to best manage each of the steps of change. It is also important to remember that Change Management is not a one hit procedure and you should be continuously reviewing the impact of change on each of the above areas as you continue through to full adoption and beyond.

In the next feature in this series we will look at the importance of engaging both the head and the heart as you go through the Change Management Process.

In the meantime we recommend you download a copy of the white paper “5 principals of change management in field service click here and complete the brief registration form.

The case for implementing a modern field service solution is well documented, the benefits clear and tangible. However the road to a successful implementation is fraught with challenges. Over the next few weeks we will be exploring this topic across a number of features which are sponsored by ServiceMax

There is also a corresponding white paper on this subject which you can access by clicking this link and completing the brief registration form

There is no hiding from the reality that the implementation of a modern service management solution involves a major change within business, including shifts in both processes and culture, driven by the technology. Change is hard, and without proper understanding of your goals and the challenges you face, successfully managing it can be at best a complicated and drawn out process, at worst an abject failure.

In fact according to Change Management guru John Kotter, 70% of change management efforts fail and this is largely due to a lack of preparation, a lack of understanding of best practices or more often than not a combination of both.

However, at the heart of every successful change management exercise there is one maxim that holds absolutely true. Change Management is always about people.

Despite often being mistakenly pigeon holed amongst Project Management, which is more focussed on business protocol and processes, the key to good Change Management is understanding and confront the emotional and personal impact change can have on your workforce both on the individual as well as the company at large.

It is widely quoted that on average two thirds of employees are resistant to using a new system. So before we even begin to plan for change we must consider some of the fundamental reasons why our workforce would be so anti-change, if we are to succeed.

For a start we must remember our workforce is made up a human beings, whilst this may seem like an obvious even condescending point to make, it is all to easy, especially in larger organisations to dehumanise the workforce, replacing names and personalities with numbers and statistics.

 

When focussing on the human aspect we can begin to understand the resistance we will face. It is our natural tendency to maximise reward and to minimise threat.

Sociology teaches us that there are five domains of social experience; status, certainty, autonomy, relatedness and fairness and when these are threatened we naturally resist change.

Inevitably an extensive change management exercise is going to impact on all five of these domains amongst your workforce so our goal cannot be to completely eliminate resistance, this would be an unrealistic and impossible task. Instead the intention should be to reduce the gap between introducing the change and full adoption of the change, thereby minimising the level of resistance faced and the duration that resistance lasts.

 

Research from McKenzie suggests organisations that utilise good change management best practices are likely to achieve 100% better business results through high employee adoption rates.

When it comes to implementing a new system across the workforce the stakes are absolutely huge, success can see significant improvements in productivity, efficiency and of course in the bottom line.

Failure can see value leakage resulting in a far longer time to see R.o.I (if at all) whilst simultaneously causing severe disruptions to the business as a whole. Put very simply there is an incredibly strong business case for making sure you get Change Management right.

Fortunately there are a number of differing resources that can be turned to, to help guide those who are undertaking such an operation. Some of which include:

Prosci

Prosci, whose name comes from a combination of professional and science, is one of the leading Change Management organisations in the world and their methods are cited as being used by more than three quarters of the Fortune 100.

Founded in 1994 they offer both benchmarking research and change management products.

 

The tools implemented in Prosci’s methodology are based on research into best practice of over 3400 international organisations.

The Prosci methodology has become one of the most widely used approaches to managing the people side of change in business and government. At the heart of their methodology is the ADKAR model which first appeared in 1999 as an outcome-oriented approach to facilitate individual change.

The model has taken hold as a simple and effective Change Management method, which has become one of the most widely used models of its kind in the world.

Kotter International

Headed up by a New York Times best-selling author, business entrepreneur and Harvard Professor, Dr. John P. Kotter, Kotter International is another of the world’s leading Change Management firms.

Their 8-step change management process is based upon thirty years worth of work by Kotter and aims to offer a holistic approach to Change Management and incorporates eight overlapping steps.

The first three are all about creating a climate for change. The next on engaging and enabling the organisation and the last implementing and sustaining change.

It has been noted that successful change occurs when there is commitment, a sense of urgency or momentum, stakeholder engagement, openness, clear vision, good and clear communication, strong leadership, and a well executed plan and Kotter’s 8 Step plan utilises each of these.

Lewin’s Un-Freeze, Change, Refreeze model

Developed by physicist and social scientist Kurt Lewin in the 1950’s this model became a fundamental building block for organisational change management, The name of the model refers to the three stage process of change. The concept uses the analogy of a block of ice and transforming its shape from a block to a cone. First you must make the ice amenable to change (unfreezing it), then the ice must be moulded to the shape you desire (change). Finally you must solidify the the new shape (refreeze)

Therefore the first step in any successful change process must be to understand the reason for change. In Lewin’s own words "Motivation for change must be generated before change can occur. One must be helped to re-examine many cherished assumptions about oneself and one's relations to others."

Across the next few weeks we will be exploring the stages of change management in more detail looking at 5 specific stages as defined and implemented by Tycho’s Sharon Moura when they recently implemented ServiceMax’s field service management platform.

To download a copy of the white paper “5 principals of change management in field service click here and complete the brief registration form.

 
This series is sponsored by: