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

Plugging the Holes – Revenue Leakage

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

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

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

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

Bottom Line Benefits: Double-Digit Revenue Growth

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

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

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

Predicted financial benefits over the next 12 months

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

But what about return on investment?

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

Strong RoI

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

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

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

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

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

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

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

Granting Technicians Greater Autonomy

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

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

Empowering the Dispatcher

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

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

Addressing Complex Work

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

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

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

Availability

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

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

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

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

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

Lack of Data Confidence

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

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

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

Glaring Skills Gap

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

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

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

An Appetite for Automation

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

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

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

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

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

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

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

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

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

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

Enhanced Performance and More Competitive

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

In addition, customers only pay per outcome.

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

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

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Kris Oldland, Editor-in-Chief, Field Service News talks to Scott Berg, CEO at ServiceMax about why IoT has so far failed to hit the heights it really is capable of and what we more should be expecting from connected assets in the near future...

When I sit down with Berg, he has just given a highly well-received presentation at Field Service USA, perhaps the biggest event in the global field service calendar. He managed to hit the two big topics that dominated conversation over the four days of the conference, namely preventative maintenance and IoT.

However, whilst many of his peers have spent the time still talking about why these are essential topics for field service companies today, Berg is already looking towards tomorrow.

“There is a big move towards predictive service, which a lot of us have talked about wanting to do. I think IoT has arrived on the scene and that might be what finally enables it. One of the things I’ve seen as we’ve come deeper into GE and seen what some of the other assets are around us from a technology standpoint is that the asset performance management concept is really unique,” he opens.

“As a field service guy I didn’t even know that this stuff was out there- I didn’t know that it was possible. That, of course, makes sense as it was used in process manufacturing, chemicals, oil and gas so it just wouldn’t occur to bring that over to field service, but this linking of the predictive analytics fed by IoT allows us to create a closed-loop process.”

“Frankly, now that I know these APM guys better within the GE company, it was one of the first epiphanies we had last year where we said you send that work to me, I’ll send you this back, arm the technician with the predictives that say ‘here’s why your here today.’”

“Another theme is also that this whole IoT thing is making me scratch my head a little bit and I’ve been talking to more and more people lately about this.,” Berg admits.

For me as a technology salesperson by trade it really gets good when someone can see real obvious value articulated, experience it and it becomes a bit of a no-brainer, I don’t think IoT has reached tha“$2.9Trillion dollars is going to get spent on IoT by 2020. Now this is not to say that many companies including a number of our customers haven’t experienced value, but it it’s still not quite fulfilling the full potential that it had - so what is the problem? For me as a technology salesperson by trade it really gets good when someone can see real obvious value articulated, experience it and it becomes a bit of a no-brainer, I don’t think IoT has reached that.”

It is a question I have raised myself in these pages. So what does Berg think is holding everyone back from seeing the true potential of IoT?

“I think it’s a combination of things,” he replies, considering the question. “Firstly, people are still drowning in data - and I do think that is still a problem. We see it even in GE businesses, there is so much more data by our own creation that it just gets harder and harder, and so now you’ve got things like Edge computing as opposed to sensors feeding data to Clouds, which is way to slow and far away, so that’s one thing that is changing rapidly.”

“And yes, there are people who have got the benefit but so far I see it as just a one and done benefit. We’ve had good examples of our customers, where they’ve identified a failure pattern, in one case a company were able to identify that they were fixing something too early, they could’ve gotten two more weeks out of it, so that leads to a modification of a service protocol or procedure, but it is still a one-off benefit.”

“It’s big don’t get me wrong. But it doesn’t do anything for you next year and it didn’t uncover the next problem. In fact, it may be even pushing a problem further downstream and so then another one surfaces.”

“That’s what is so exciting about the whole conversation around AI and Machine Learning - in that it offers continuous learning. The ability to model risk and put that into a plan - maybe that is the final way to bring IoT to its full potential in terms of service management and to create a pretty cool closed-loop process really.”

“I don’t mean to push IoT to a back seat, don’t get me wrong, there are so many side benefits that are game changing but it is a bit like you’ve planted something and then your like when is it going to come out of the ground, when am I going to see a flower and then to continue that analogy when that fruit first comes out, you don’t want to pick it and then that’s if you want it to be a constant crop."

It is interesting to hear Berg’s view that there is so much more to come how we implement IoT in a field service context. Particularly given ServiceMax’s role as an earlier pioneer within the space. When he speaks on the topic he invokes a clear belief in the scientific method - i.e. that each hypothesis is subject to continuous testing and re-evaluation.

“We were early partners and integrators with things like PTC and the ThingWorx products, launched connected field service and we’ve had some customers who have seen some real benefit - but why didn’t it sustain, why didn’t it evolve, why didn’t it grow - why wasn’t it everywhere?” He asks.

“I think it is because people were just a bit stalled looking for that extra piece of the puzzle,’ he continues answering his own questions.

One of the reasons we didn’t call Connected Field Service our IoT API is because the notion of connecting field service was not only getting the device to give up its data but also in the mobile device then arming the technician with why are you here“In fact, one of the reasons we didn’t call Connected Field Service our IoT API is because the notion of connecting field service was not only getting the device to give up its data but also in the mobile device then arming the technician with why are you here.”

“What was the reading that led to this? But let’s take that further, let’s get an understanding of what the is device doing right now so they know what it was doing yesterday when they were summoned, but also me what it's doing now, how has that changed.”

“I think that’s that notion of equipment centricity. The cool thing about GE is that it is the world’s largest field service company and it is also at it’s core a completely asset-centric group of engineers, the machine is everything they worship the machines - there are pictures of machines all over our office.”

When I last spoke to Berg, ServiceMax had only recently become part of the GE family, but even then he spoke of an early affinity between the companies and of a kindred spirit at each companies core. Fast forward some 18 months and it is clear that the relationship is proving to be even more symbiotic with benefits flowing both ways.

“I was in a meeting recently where one of the innovations another team was pushing in APM was maximising the performance and predicting the health of a set of assets. By that I mean not just one isolated machine but for example think of a wind-farm, maybe there are a thousand of assets within that fleet. We were trying to establish how we can comprehend the collective health of those assets and how they work together.”

This is just another example of how Berg, ServiceMax and now the wider team within GE are not satisfied with pushing the envelope today but are dedicated to understanding how they can continue to stay at the vanguard of innovation for many, many years to come.

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Scott Berg, CEO at ServiceMax, from GE Digital explains why for those organisations getting the results that matter, the Industrial Internet of Things alone isn’t enough to transform their service offering...

Complex machines power the world’s largest industries, from offshore rigs to networks of medical devices, to massive wind turbines.

Over the last decade, we’ve seen everything from treadmills to coffee makers digitized in pursuit of smarter, better and faster machines to get better results. Industrial companies are adopting digital strategies and require a distinct understanding of connected machinery to do so successfully. It’s no surprise that these machines require thoughtful, technical and predictive maintenance.

Companies now more than ever are in the business of keeping machines running to ensure that the absolute most value is derived from each piece of equipmentCompanies now more than ever are in the business of keeping machines running to ensure that the absolute most value is derived from each piece of equipment. Our customers report, on average, a 19% increase in productivity since implementing Predix ServiceMax. That basically means that we can add an extra day to the technician’s week without working overtime.

ServiceMax from GE Digital is helping the world’s largest companies on their digital journey, starting with service delivery. What is fundamental to our understanding of Field Service Management (FSM) is the scale at which we provide service. We are meeting our customers at a global, enterprise level. As the industry adopts the Industrial Internet of Things (IIoT) we think about service in a big way and help companies on their digital journey.

We are 100% invested in making sure our customers are getting absolutely all the value they can from the equipment they have and how it’s being used.

Why IIoT won’t be enough to transform service

IIoT-enabled devices and data insights alone are not enough to paint a clear picture of service in the future. Talk of IIoT is everywhere, from budgets to yearly planning, to newspaper headlines. At the end of the day, data informs a procedural change within only one part of a machine at one point in time. Decisions are made on a limited set of inputs, whether that be wear and tear of a specific part, or work order history.

You might say that using IIoT alone is tunnel vision.

Meaningful service is going beyond IIoT, and Asset Performance Management (APM) is the catalyst: it opens up data to more contextual inputs from the broader ecosystem. APM harnesses the behaviour of the machine and goes beyond a simple exercise in efficiency.

It’s important to understand the key is not solely APM, FSM or IIoT. Rather, it’s all three working together to create a holistic solution.It’s important to understand the key is not solely APM, FSM or IIoT. Rather, it’s all three working together to create a holistic solution.

APM monitors the behaviour of the machine, and the FSM platform brings it all together to inform how, when, and why we choose to service or replace a machine. It monitors machine health directly after a repair, and cycles that information into future repairs, to close the loop of service.

The powerful combination of APM and FSM provides a complete view of a product and establishes lifecycle management strategies. The result is a service product management solution that has up-leveled a traditional connected device strategy, incorporating a business’s bottom line. This has saved our customers millions of dollars.

Digital industry brings dynamic results 

Field service in the industrial era is more than a one-time project. Done well, it is an industrialists guide to a digital future, providing vital insights and outcomes for customers. The new era of field service will be marked by connectivity and share a fundamental goal of zero downtime for critical equipment.

There will be industrial behemoths and then there will be digital industrial behemoths.

Field service is evolving into a system that doesn’t forgetField service is evolving into a system that doesn’t forget: an APM-integrated platform incorporates past data to make decisions about parts, technicians, and compliance in the present. And then the magic happens: the system integrates several data factors based on the outcomes of similar work orders and controls for a business perspective: how much time and money can we afford to spend here? That data is translated to actionable insights for technicians on the ground, meaning they are not working towards a static goal of ‘machine repair.’ Instead, technicians are working towards a dynamic outcome: machine uptime.

We are reaching a point where FSM is simultaneously smarter than us yet utterly useless without the most vital component of service: humans. Technicians close the loop between data and predictions by recording the actions they take.

They have the training, the expertise, and the context for each work order with a FSM platform at their fingertips. And the result is that not only is complex machinery functioning smoothly, but FSM is providing the savvy digital industrialist an avenue to a more prosperous day on the job tomorrow.

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Having been widely touted as a technology that wouldn’t just improve service delivery but would completely revolutionise the way we even approach field service operations the Internet of Things has rapidly become an ever-present discussion topic amongst field service companies - but has the IoT revolution finally happened or is it still just the realm of those at the leading edge of adoption?

We ask three experts to give us their opinions on IoT in field service...

What are the core benefits of IoT for field service organizations?

Mark Homer, Vice President Global Customer Transformation at ServiceMax from GE Digital: One of the biggest challenges in field service is having advanced warning, visibility and insight into the equipment assets configuration, operational health and state, verification of location – before turning up onsite.

IoT is extremely beneficial in this regard.

It can tell you all of the above, as well as its environment, its connected to an echo system its configuration – including factory settings and as installed, localized configurations, additions, configuration changes, software and firmware settings or modifications as it’s currently operating and maintained).

IoT can also provide you with the current maintenance build, MBOM history of what parts have been changed, swap-outs, inspections, prior faults, diagnostics and lubrication, wear and tear process flow counters etc.

Using connected field service, IoT enables field service organizations to see visibility to all these and many other operational aspects of the installed asset/equipment prior to an engineering visit.Using connected field service, IoT enables field service organizations to see visibility to all these and many other operational aspects of the installed asset/equipment prior to an engineering visit.

The ability to see an asset’s health, performance, usage, RCM data, and access to a unique digital twin of this physical asset are all now possible in the field.

This empowers predictive, condition-based maintenance, as well as saving time and money, increasing first-time fix rates and customer contract renewals, and decreasing costs, overheads and streamlining supply chain issues for service call outs.

Gary Brooks, CMO Syncron: With the Internet of Things (IoT) becoming more mainstream – the market is expected to reach $267B by 2020 – companies across industries and verticals are starting to prepare for the impact this game-changing technology will have on their business.

Leading manufacturers like Caterpillar are investing heavily in connected machines to allow equipment to pass information from one to another, ultimately pro-actively repairing equipment before it fails.

This shift in thinking from a reactive, break-fix service model to one focused on maximizing product uptime is a fundamental change to how manufacturers handle service today, and IoT is at the core. Major benefits of incorporating IoT data into field service include:

• Quicker resolutions. IoT data can provide more diagnostic information, so a technician can arrive to a job site and immediately know the steps necessary to make a repair. IoT can identify what part needs to be replaced, and trigger action to either pre-emptively replace the part before it fails, or take immediate action if downtime does occur. Using IoT data effectively ensures that technicians are equipped with the correct parts, and can make a repair on their first visit.
• Happy customers. Customers are happy when their equipment is up and running, and any unnecessary downtime leads to dissatisfaction and frustration. Service parts availability is the linchpin to any successful service organization, and IoT data can help service organizations better manage their service parts inventories to ensure downtime is rare or completely eliminated.
• Increased revenue. When technicians are stocked with the appropriate parts and are able to repair issues on the first time, quickly and correctly, not only are customers content, but technicians are able to make more visits to more customers each day – ultimately resulting in more business and ROI for the manufacturer.

Mark Brewer, Global Industry Director for Service Management, IFS: The Internet of Things (IoT) and so-called “digital twin” technologies are poised to have a huge impact on the service sector; reducing costs, maximizing data analytics, and extending the lifespan of products.

IoT allows field service organizations to become proactive and predictive by identifying equipment issues and mitigating the problem before it cascades into dreaded unplanned failureIoT allows field service organizations to become proactive and predictive by identifying equipment issues and mitigating the problem before it cascades into dreaded unplanned failure that impacts business performance and safety.

When embedded into the right field service management software, service organizations can analyze and visualize real-time operational data from connected machines and devices and automatically turn the information into immediate and predictive actions. This, in turn, delivers service level improvements and drives better business intelligence and flexibility.

Another core benefit of IoT for not only service organizations, but any asset-intensive company wanting to optimize their service offering is the ability of predictive maintenance. The Predictive Maintenance report forecasts a compound annual growth rate (CAGR) for predictive maintenance of 39 percent over the time frame of 2016–2022, with annual technology spending reaching £7.96 billion by 2022.

Has IoT become prevalent amongst field service organizations as yet, or are those now utilizing IoT within field service delivery still leading edge? 

Mark Homer: It’s a hot topic. We see that most CSO are aware of IoT, and many prospects and customers are activating in IoT as well as the Industrial Internet of Things (IIoT), participating in one or two pilot or POC projects.

As an industry many service technicians have been collecting data from machines for years, typically through interface cables (e.g. RS232, Bluetooth collection of binary OT data, or early telematics).

Many Technicians are also used to reading meters and process counters, sampling lubrications and collecting photographic and thermography imaging as part of their work order completing debrief process.

IoT makes this process real time.

Gary Brooks: While many manufacturers are collecting data from sensor-equipped products in the field, few are actually using it to improve their service operations.

As the cost of sensor-equipped parts decreases and more data becomes readily available, it will become more important than ever to invest in human capital and technology that support a service model focused on maximizing product uptime.

Companies that do this in the next 12 to 24 months will be equipped to succeed.

Mark Brewer: Whilst IoT solutions are not yet prevalent in the majority of field service organizations, those utilizing IoT solutions and rolling them out at scale will be the winners over the next few years. Sensors are increasing in sophistication and are transmitting increasing amounts of data. With IoT sensors, the asset or machine becomes “smart” and is placed at the centre, sending data back to the service centre and enabling diagnostics to determine issues that may arise in a day, week or months’ time.

It’s this predictability that will enable field service organizations to deliver next-level customer satisfaction.

However, any IoT driven business requires data acquisition (communications and networking), analytics and business software to work in unison.

The problem is that very few companies have all the skills in-house to do this on their own. As such, savvy field service organizations will look to seek out IoT experts and form partnerships with them to take their business to the next level.

What steps are needed to introduce IoT processes into a field service delivery workflow?

Mark Homer: I am a great fan of using IoT education kits that are widely available and brilliant for educating technicians through practical and fun training labs - for example, the GE Predix IOT kit which you can find @ http://fs-ne.ws/1CJ730iXfcT

Mark Brewer: Firstly, companies need to be careful of integrating IoT for IoT’s sake.

By 2020, more than seven billion business devices are expected to be connected, but smart tech does not always add value. Misuse can lead to security vulnerabilities, with the network chain becoming more exposed to cyber threats. Organizations, therefore, need to first consider the business case for IoT.

A lot of IoT solutions mostly focus on a single element of IoT; for example, connecting the devices, or big data analytics - rather than providing a complete end-to-end IoT solution.Once this is understood, companies must start small - ideally by trialling a proof of concept. Before globally rolling out IoT solutions as part of their business, organizations need to check that the equipment, gateways and sensors work; that they are capturing the right data, and that they have all of the correct business applications in place to make sense of that data.

Next up is choosing a best-in-breed software application that can be easily integrated from inception with enterprise resource planning (ERP) software, or whichever management software the business has implemented. It’s important that the solution is completely mappable to the back end, closing the loop from device to business application.

A lot of IoT solutions mostly focus on a single element of IoT; for example, connecting the devices, or big data analytics - rather than providing a complete end-to-end IoT solution.

Field Service organizations need solutions that make the critical connection between analytics and transactional applications, which turn analysis into action and then into value.

Is adoption of IoT essential for a field service company to remain competitive?

Mark Homer: Yes, obtaining more accurate data from your connected assets will provide deeper understanding and insight into how your customers use and operate the equipment and assets you provide and thus enable you to derive a clearer understanding as to the value of that provision to your customer and their end customer or the upstream or downstream supply chain.

By understanding the asset performance, availability, and its RCM (condition and status), the asset true through life cost (cost of the asset throughout its whole life and its ultimate replacement) the servicing costs of inspection, maintenance, breakdown in the event of unplanned downtime is all critical as it allows for future innovation to improve future profit, performance and efficiency of the assets and the workforce maintaining it.

Connected products are also able to provide R&D with amazing data to give deep visibility into how a customer truly uses the equipment you provide.

This, in turn, is assisting the product development lifecycle in designing easier to use and maintain products.

Gary Brooks: As more products are equipped with smart sensors and complete autonomy becomes a reality, it will be more important than ever to shift from a reactive, break-fix service model to one focused on maximizing product uptime, or preemptively repairing equipment before it ever fails.

The best way to achieve this is to leverage IoT data to ensure parts are pre-emptively replaced before they fail.

Manufacturers must reinvent their service organizations, adopting sophisticated solutions and new business processes to optimize service parts inventory levels and prices while maximizing product uptime, which not only leads to improvements in revenue, gross profits and operational efficiency but also the overall customer experience.

Mark Brewer: By 2020, around 25 percent of asset-intensive companies will adopt IoT and digital twins to optimize service.

Whilst this doesn’t seem tremendously high, with the general shift towards servitization and the demand from consumers to have an all-encompassing customer service experience, more and more organizations in industries like manufacturing and construction, and logistics companies, in general, will be utilizing IoT technologies to expand their service offerings.

IoT technologies have the potential to enable companies across all industries to measure aspects in a detail and quality that has never been possible before; empowering businesses with assets’ performance indicators.

Leveraging IoT solutions can help organizations measure essential key metrics, such as availability, reliability, maintainability, supportability, cost of ownership and end-result, allowing them to operate more like service industries.This enables companies to find the most profitable models - turning service into opportunity.

Leveraging IoT solutions can help organizations measure essential key metrics, such as availability, reliability, maintainability, supportability, cost of ownership and end-result, allowing them to operate more like service industries.

For example, previously, the manufacturer’s knowledge of a product stopped once it left the factory. But now, via the feedback made possible through IoT, manufacturers can start to learn the usage, behavior and performance of these products in the real world, and can even make engineering changes to improve them over time.

Another example is construction machine manufacturer Caterpillar. The company has been able to fit its equipment with smart sensors to measure tire pressure, temperature, oil levels, and so on. It is a win-win for customer and service organization alike; minimizing equipment downtime and enhancing product development and improving service efficiency.

The approach is said to have saved Caterpillar millions of dollars already.

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