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Kris Oldland, Editor-in-Chief, Field Service News and Kieran Notter, Director, Global Customer Transformation, ServiceMax from GE Digital explore the findings of an exclusive independent research conducted by Field Service News and sponsored by ServiceMax from GE Digital.

In this, the third and final excerpt from the full one-hour long webcast, Oldland and Notter discuss how field service organisations can and are turning to the latest technologies including Augmented Reality, Artificial Intelligence and the Internet of Things to ensure they keep attrition rates for their field service engineers low

Want to know more? The full webcast PLUS an exclusive report based on the findings of this research is available for Field Service News subscribers.

If you are a field service practitioner you may qualify for a complimentary 'industry practitioner' subscription. Click here to apply now!

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Kris Oldland, Editor-in-Chief, Field Service News and Kieran Notter, Director, Global Customer Transformation, ServiceMax from GE Digital explore the findings of an exclusive independent research conducted by Field Service News and sponsored by ServiceMAx from GE Digital.

In this second excerpt from the full one-hour long webcast, Oldland and Notter discuss both what the must-have skills of the field service engineer are likely to be in the not too distant future taking into account the impact of industry mega-trends such as servitization, digitalisation and an incoming army of millennials.

Want to know more? The full webcast PLUS an exclusive report based on the findings of this research is available for Field Service News subscribers.

If you are a field service practitioner you may qualify for a complimentary 'industry practitioner' subscription. Click here to apply now!

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Kris Oldland, Editor-in-Chief, Field Service News and Kieran Notter, Director, Global Customer Transformation, ServiceMax from GE Digital explore the findings of an exclusive independent research conducted by Field Service News and sponsored by ServiceMax from GE Digital.

In this excerpt from the full one-hour long webcast, Oldland and Notter discuss both the challenges and opportunities of an ageing workforce within the field service sector and assess whether there is any substance to fears that we are facing an ageing workforce crisis.

 

Want to know more? The full webcast PLUS an exclusive report based on the findings of this research is available for Field Service News subscribers.

If you are a field service practitioner you may qualify for a complimentary 'industry practitioner' subscription. Click here to apply now!

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As we enter into another year it seems like the speed at which our industry seems to be hurtling forward is showing little signs of slowing down.

 

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If anything it seems to be getting faster.

Across the last year, we saw the Internet of Things shift full throttle from being a concept adopted only by those on the leading edge to something that was very rapidly becoming mainstream within the field service sector. It seems that the technology is finally all beginning to fall into place and the dual rise in prominence of outcome-based services and preventative maintenance means that IoT is at the forefront of most service organisations as we move into 2018.

One of the earliest and major proponents and enablers of IoT within field service was, of course, ServiceMax and when we saw the first fruits of the union between them and GE earlier this year with integration between the ServiceMax solution and GE Digital's Asset Management Performance solution we perhaps saw one of the last major missing parts of the puzzle of how IoT can be embedded within a field service workflow slot right into place.

Indeed, the acquisition of ServiceMax by GE whilst coming perhaps out of leftfield initially appears to be making more and more sense and so far at least it seems that as opposed a technology being lost to the wider market when swallowed up by a behemoth of an organisation such as GE, ServiceMax are set to become an even more prominent player as part of the GE DIgital stable as they push out into hitherto uncharted markets with a message of service excellence for all. The vibe was certainly all positive at the European leg of Maximize towards the end of the year and you can find my exclusive interview with Dave Yarnold, Rei Kasai and Anup Sharma.

At the other end of the evolutionary spectrum, but with just as much potential impact on the field service sector is New York-based startup Nanowear. Wearables have never really hit the heights that they should have so far in the field service sector, but Nanowear's smart cloth has huge potential to be utilised in smart clothing that could reduce the risk for lone workers. These folks are just at the start of their journey but are certainly one to watch and you can read why I think so on.

However, whilst technology is undoubtedly playing a more and more dominant role in our industry, there are certain maxim's that hold true and once again we see the importance of adopting an outside-in viewpoint when it comes to establishing a high level of customer satisfaction being re-iterated by a number of our columnists in this issue.

Both Nick Frank and Jan Van Veen to authors whose opinion and contribution to our humble little magazine I value very highly, raise the importance of understanding the customers wants needs and desires in their articles on this topic here and here respectively.

Interestingly, it is also a key theme in my interview with Matt Boretti, Strategic Director, Teleflex who is just six months into his role establishing a new Customer Experience group of his organisation.

Meanwhile, Alastair Clifford-Jones really brings home the increasing importance of field service when he points out how the focus of field service is shifting towards driving strategy rather than being a recipient of it and Michael Blumberg delivers his usual excellent deep level insight into this issue's lead article exploring how field service companies can deal with digitalisation, uberization and servitization which you can find on page 26.

The field service sector as a whole is moving into 2018 with a swagger, service delivery is more important than ever before and ours is an industry that is now reaping the rewards for embracing emerging technologies.

Long may it continue!

 

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GE Digital's acquisition of leading field service management solution provider Servicemax just over a year ago sent shockwaves across the industry for multiple reasons.

Firstly, in an industry that has been going through a spate of acquisitions over the last two years, the amount was quite simply eye-watering and just blew everything out of the water. Secondly, this was an acquisition that came right out of left field. Many analysts may have predicted that ServiceMax would eventually be acquired having been the industries biggest success story, but few would have suggested that an industrial force such as GE may have been the suitor that would become their new home. Kris Oldland, Editor-in-Chief, Field Service News, spoke exclusively to the senior players at both ServiceMax and GE Digital to find out how things are bedding in...

When the ServiceMax from GE Digital train rolled into Berlin towards the end of last year for the European leg of their series of Maximize conferences, there was an exciting mix of vivacious confidence between the ServiceMax team and keen curiosity and anticipation between the delegates - who were in the main ServiceMax customers.

Of course, this was to be expected - as it is at such events that ServiceMax have traditionally announced their latest developments and outlined how they had refined their roadmap. In past iterations of the conference, we've seen ServiceMax announce a number of industry firsts including the announcement in 2016 of Field Service Connect - which essentially established a blueprint for the role field service management systems will play in our sector adopting IoT that is being mirrored by a number of their peers.

And that's not to mention the little matter of GE Digital's acquisition of ServiceMax for an incredible $900Bn which was announced just days after 2016's Maximize Europe event in Amsterdam.

With just over a year having passed it was a perfect time to see how well embedded ServiceMax had become within the GE Digital machine, and just how much such significant investment had changed their vision for the future of both their organisation and of field service delivery itself.Indeed, with just over a year having passed it was a perfect time to see how well embedded ServiceMax had become within the GE Digital machine, and just how much such significant investment had changed their vision for the future of both their organisation and of field service delivery itself.

Having spent a lot of time with Yarnold and his senior team over the last few years, one thing that has always come to the fore was that there was an inherent understanding of what excellent service looked like, and the ServiceMax vision was always about trying to develop the tools to make meeting standards of service excellence that much easier.

I recall speaking to Yarnold in 2016 about the ethos of the company, and he explained then how they felt that most of the technology in the Field Service Management sector was  geared towards taking cost out. What they realised very early on into their journey to becoming a leader within the industry was that there was a critical emerging trend - companies who were building products were experiencing much faster growth in the services side of the business than the product side.

We focussed on helping companies to grow their service business as opposed to squeezing their technicians for more productivity - which is still where most of the technology in our space is focussed"So we focussed on helping companies to grow their service business as opposed to squeezing their technicians for more productivity - which is still where most of the technology in our space is focussed" Yarnold had stated back then.

Of course, this approach has become widely embraced by most of ServiceMax's peers as solution providers realise that most companies now have at least one foot planted firmly in a service-centric world and as concepts such as servitization and outcome-based services go mainstream.

However, while there is no denying the prescience of Yarnold and his team's approach, until last year they were always just an observer of trends within the field service sector, only experiencing them indirectly via how they impacted their client base. But now as part of GE, an organisation that has something upward of 40,000 service engineers in various different divisions and across multiple sectors globally, they now have a direct line into a wealth of field service directors that are all on the same team.

I was curious as to what if any impact this would have on ServiceMax regarding how they position their worldview on what great field service looks like. In his opening address early that day Yarnold had touched upon shared learnings - so was it a case of their previous assertions being validated? Or was there an element of identifying essential details that could only be seen when one is embedded that little bit closer to the actual coalface?

"It is a bit of both" responds Yarnold. "We are part of GE Digital which has the Predix platform and then these application areas APM and ServiceMax, and we are separate from the rest of the GE business which are the industrial business units such as Oil and Gas, Power Generation and Healthcare and so on. Each of those business has their own field service operation, and each of those businesses is rolling out ServiceMax. So we're not part of the organisation, but we have the home team there to draw on."

To bring this message to life Yarnold recounts how before the acquisition Sharma, who at the time was the CIO of GE's Oil and Gas business had been a somewhat challenging customer, but once they were on the same side of the table the value that ServiceMax brought to the table was revealed to actually be hugely valued. "I do wish he'd maybe told me a bit sooner'' Yarnold said playfully which brought a warm laugh from Sharma - and in this brief exchange, the camaraderie and trust between the two were immediately brought to the fore, something usually found within relationships built on a mutual respect.

It's been a good balance so far, and we're just starting to tap into that knowledge of those industries and the vertical specific complexities of those industries. It keeps things fresh and challenging, but that's what we want. We want that challenge"So yes there was a lot of affirmation" Yarnold commented returning to the initial question. "Then where I think the learnings are coming in. As we start to work with these folks and we start to understand what their customers, the service, and maintenance organisations are all about - we need to ask how do we continue to evolve and build our product so that they fit those organisations. Utilities, Airlines, Railroads, Oil Companies - these have not necessarily been our direct customers to date and we're learning a lot about that. We're also learning a lot about metrics and measuring business. It's been a good balance so far, and we're just starting to tap into that knowledge of those industries and the vertical specific complexities of those industries. It keeps things fresh and challenging, but that's what we want. We want that challenge."

So would it be fair to assume that given this additional stream of insight there maybe a change to the roadmap that ServiceMax has outlined for themselves? Kasai picks up this point. "I think you outlined it well when you positioned it as an expansion" he replied when we tackle this topic.

"Both being part of the wider family of GE but also the massive investment is a much needed, as we really need to expand our portfolio into new markets and new capabilities. We'd always made a conscious effort not to go into many of these industries for a variety of reasons, but largely from a focus point of view. But now we have I believe, a solid competitive edge from a channel point of view with great customer relationships. We have an understanding of the domain within those industries, and it would have been tough just to walk in and grow that knowledge. Thirdly, we have the capital to go ahead and invest in the development of the products to actually develop those capabilities for these industries. It is a combination of these three things which essentially makes a brand new company - there is so much potential and that what we're all really excited about, where do we go next?"

It is interesting the Kasai mentions how the new environment in which they find themselves in is in many ways akin to being an entirely new company. It brings back recollections of another previous conversation with Yarnold the day the acquisition was announced. "It is not the start of a new chapter; it is the start of a whole new book" he had commented, which is a strong analogy, as this latest incarnation of ServiceMax is indeed a distinct creature than that which has come before. However, likely any great novel within a series, the fundamental aspects of what made it a best-seller in the first place must remain in place. To extend the metaphor to its very limits, there must be a familiarity and continuity in place if it is going to build on the successes of previous in the broader in the ongoing saga.

In other words, ServiceMax as part of GE Digital must build upon the strong foundations that are already in place. Yet, for such a substantial investment, they simply have to evolve as both Kasai and Yarnold suggested. However, it seems that this is something that is very much already starting to happen as the ServiceMax team becomes plugged into the broader world of GE.

Such cohesion and deep level insight will not only drive the functionality of ServiceMax forward hugely but by doing so will also raise the bar for the industry as a whole. As Sharma explains" Something we have done recently is to have seven business swarm ServiceMax from which we've then built a core centre of excellence capability - it is a very focused team, they have both deep domain expertise and have also been ServiceMax users for a very long time. From this, we have developed accelerators to help improve deliverability, but it has also become a great feedback loop to Rei and the product team."

It is this type of integration that many of the analysts within the industry (including myself), hoped to see emerge when the acquisition was announced. As such cohesion and deep level insight will not only drive the functionality of ServiceMax forward hugely but by doing so will also raise the bar for the industry as a whole.

It was undoubtedly one of the most interesting aspects of the acquisition that I discussed at the time in that there is vast potential for the further development of important solutions when a major player such as ServiceMax is embedded within an organisation that has such a fine-grained level of knowledge of delivering service, rather than being swallowed up by just another major software house that many would have expected.

Yet for the full value of this to be played out there has to be a true ebb and flow of dialogue between ServiceMax and the wider organisation - something which Sharma indicates clearly exists. "We attack things together, working with the platform team, ServiceMax and ourselves, on an integrated asset model of the future. We are talking about working within large-scale operations and exploring how do you augment and drive participation? It is a great way to valid test or experiment with a capability, and we give instant feedback."

We have the fortunate situation where we have a very large-scale service organisation as a captive audience, and we have an organisation that's capable of delivering these great capabilities to these organisations. "When you develop new products you have to be very iterative, you have to have a small set of customers to be constantly testing against so you that you eventually build a scalable product for the masses. If you look at these new capabilities, we are looking at it very much through that lens, and we have the fortunate situation where we have a very large-scale service organisation as a captive audience, and we have an organisation that's capable of delivering these great capabilities to these organisations."

Of course, the most visible return on GE's investment so far, certainly from a product perspective, would for most people in the industry be the close integration between ServiceMax's Connected Field Service suite and another of GE Digital's offerings, Asset Performance Management (APM). As we've covered previously in Field Service News, the combination of these two tools pushes us with far more certainty than ever before into the world of IoT based field service. So is this a clear indication of the direction that both GE and ServiceMax see as the future of field service delivery?

"I think what the move to predictive really does is that it puts everything on your terms," comments Yarnold. "You're planning ahead of time; you can predict who is going to go where with a high probability of success. This will, of course, increase efficiency but it is also a huge value add to the customer - you're in a position to now delight them, because the right people are showing up, they know the history, they know what is required and so on. I just think it changes the model entirely."

"Outages are needed, machinery gets worn out" adds Sharma, "the question is how can you replace these in a planned way because when it's unplanned, that's where really bad stuff happens. The notion that is important to me is about focusing on getting to almost zero-unplanned downtime. That is where I think the industry is going to head."

As Yarnold had expressed to me previously, it seems clear that there are kindred spirits and a shared DNA somewhere between the two organisations, and most certainly a shared vision for the future of field service. In terms of their influence on the wider market both ServiceMax and GE have played a role in getting us to where we are today. How far they can continue to push the field service sector forwards as one cohesive unit remains to be seen, but the early indications would suggest that they will remain at the vanguard of innovation within service delivery for the foreseeable future. As each of Kasai, Yarnold, and Sharma commented at various points across our discussion - it's all hugely exciting.

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Across the last five weeks, we've been presenting you with the findings from our most recent 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 and across the first three features of our analysis, our focus was on the changing face of the field service engineer as we see an ageing Baby Boomer workforce reaching retirement age being replaced by a new wave 'millennial'  field service workers.

In the first feature, we looked at 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 and in part three we asked if field service companies were reacting quickly enough to these challenges.

In part four we changed tack slightly and looked at how technology is playing a role in attracting new field service talent and in the final part of this series we look at how field service companies are utilising technology within their training methodologies and bring together some conclusions from the research project as a whole

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) 

Technology as a training tool:

In the previous feature, we discovered that technology appears to play an increasingly important role in attracting new field service engineers to an organisation, and our research revealed that it also plays an important role in their development and training as well.

Indeed, just under three-quarters of companies in our response group stated that they use smartphone or tablet apps as part of their training, over two thirds (69%) utilise knowledge bases and over half utilise video conferencing.

The use of video conferencing is of particular interest as 57% of companies also stated that they have programs in place for older technicians to support newer recruits and video conferencing is a highly convenient means of facilitating this.

The use of video conferencing is of particular interest as 57% of companies also stated that they have programs in place for older technicians to support newer recruits and video conferencing is a highly convenient means of facilitating this.However, it is interesting to note that only 9% of companies are currently using Augmented Reality (AR) tools as part of their training programs.

This raises the question of why companies are yet to make what on the surface seems to be a natural transition from video to AR. Given that the processes for offering remote support via video conferencing are essentially the same as for AR it would seem that many field service companies are already well positioned to take advantage of these tools.

Competition amongst AR providers is increasing which will likely drive down prices, whilst case studies and use cases are becoming more apparent - meaning the increased efficiency that AR offers over video conferencing will become more widely acknowledged.

Therefore, it would seem a likely assertion that we may soon see wider adoption of AR amongst field service organisations.

What is abundantly clear, however, is that technology is playing a crucial role in the training and development of field service engineers. In fact, only 7% of field service companies stated that they didn’t use any of the various technologies we listed in the survey as training tools.

The reason for such widespread use of technology in field service organisations training programs was also made apparent within the research. 87% of companies stated that technology was at least partially responsible for reducing the length of time necessary it takes to train a new field service engineer.

Just 10% of companies commented that for them the delivery platform of their training wasn’t an important factor.Of that 87%, well over a third of companies (37%) went on to state that incorporating the latest technology into field service engineer training can reduce the amount of time taken to onboard new field service engineers significantly, whilst just 10% of companies commented that for them the delivery platform of their training wasn’t an important factor.

Of course, with technology being ever more integrated with field service delivery it perhaps makes sense to be embracing technology throughout the onboarding process and beyond.

The good news here for field service companies recruiting new millennial talent is that in general, our respondents experienced that they found that Millennials are able to familiarise themselves with mobility tools etc far quicker than the existing Baby Boomer workforce.

In fact, over half 53% of our respondents commented that they believed this to be the case whilst just 4% disagreed and stated that their older field service engineers see the benefits of technology and adapt just as well as the younger engineers now entering the workplace.

One final point on the insights gained from this section of the research is that whilst the use of new technologies such as AR may be an important element in attracting talent and also in reducing training times, it is also can play a role in keeping that talent and reducing attrition rates.

In fact, over three-quarters of the respondents (80%) stated that for them harnessing the latest technology is a factor in keeping attrition rates low.

The Key Stats:

• 67% of field service companies believe that the technology they employ can have a positive effect on attracting talent
• 69% of field service companies use digital knowledge bases as part of their Field Service Engineer development
• 57% of field service companies use their more experienced Field Service Engineers to support younger members of the team
• 87% of field service companies stated that their technology was at least partially responsible for reducing the time it takes to train a new Field Service Engineer
• 53% of respondents felt that the incoming generation of workers would be abe to adapt to mobile tools quicker than their existing Field Service Engineers
• 80% of field service companies believe that the use of emerging technologies such as Augmented Reality will help them reduce attrition rates

The Conclusions:

Firstly, it is absolutely clear that the threat of an ageing workforce is real – yes it may not be of a critical pressing nature just yet for many organisations but the research would certainly indicate that for those companies who fail to address it, it could become so in the not too distant future.

Secondly, the difference between the incoming generation of millennial workers and the exiting baby boomers should not be underestimated.

Fortunately, it seems that the industry at large is aware of the challenge which is a good starting point - although the fact that 84% of companies who have identified the issue have yet to take any action on it is a worrying one.

The answer to both challenges is actually a fairly obvious one.

By using more experienced engineers edging closer to retirement to support those new engineers working in the field it is possible to stop tribal knowledge walking out of the door, whilst also providing training via a platform that is both attractive and familiar to a millennial.

Again, whilst this seems to be a reasonably well-accepted wisdom, those who are practising what they preach remain in the minority with just 17% actually having such a solution in place.

This really needs to change.

Our research has also revealed just how high the expectations are for field service engineers. Technical skills are viewed as-as important as ever, yet modern field service engineers are also expected to have great people skills and be expert problem solvers.Our research has also revealed just how high the expectations are for field service engineers. Technical skills are viewed as-as important as ever, yet modern field service engineers are also expected to have great people skills and be expert problem solvers.

Perhaps counter-intuitively, the rise of knowledge banks has meant that when an engineer is sent out on a call he is not only expected to achieve a first-time fix but often he is trying to establish a fix that wasn’t easily resolved through an initial triage at the contact centre stage. With this in mind surely we should be doing everything possible to empower those in the field – and giving them access to the knowledge and experience of our seasoned engineers should be a fundamental part of that.

Technology has already become an integral part of both field service management and field service delivery.

Our research also confirms that it plays a highly important role in both the recruitment, training and development of Field Service Engineers.

It also absolutely offers the solution to two of the biggest challenges our sector currently face and we should absolutely be embracing tools like AR to overcome these challenges. The transition from a Boomer to the Millennial workforce is bringing with it an evolution of the field service engineer.

Such a significant shift will, of course, have problems and the technology available can certainly smooth out some of the bumps in the road Such a significant shift will, of course, have problems and the technology available can certainly smooth out some of the bumps in the road - as to will establishing new or redesigned processes.

Ensuring your organisation comes out of this transition phase (which all companies will have to go through at some point in the next few years) without major impact to your business will require an investment of time, resources and money in your field service engineers.

With this in mind, it is perhaps even more important than ever before, that field service organisations are able to retain those engineers they have invested so heavily in. It is, therefore, no surprise that the majority of field service companies understand the importance of clearly defined career progression paths.

In summary, across the various key factors of this research, we have identified that in the main the challenges and solutions field service companies are facing are understood by the majority. However, it is those companies who act on these challenges today that will be best positioned to take advantage of the sector-wide disruption we are set to face, whilst those who too long may well find themselves in a precarious position sooner than they think.

The question is which of these will your company be?

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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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. In the first three features of our analysis, our focus was on the changing face of the field service engineer as we see an ageing Baby Boomer workforce reaching retirement age being replaced by a new wave 'millennial'  field service workers

In the first feature, we looked at 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 and in part three we asked if field service companies were reacting quickly enough to these challenges.

Now as we change tack, we explore the role technology has to play in attracting and developing new field service engineers

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) 

The field service sector is changing rapidly.

Not only are technologies constantly emerging that continue to enable field service organisations to push the boundaries of service excellence, but as we saw in our last article in this research series, the shift from an ageing workforce of Baby Boomers reaching retirement age and the Millennial generation coming in to replace them heralds an unprecedented change in culture within field service companies across each sector and in every corner of the globe.

However, one thing is certain this change is happening, it is happening on a large scale and the pace of the change is increasing day by day, week by week and year by year.

Almost half (48%) of the companies we surveyed admitted that the threat an ageing workforce poses to their business is either significant or severe. Those companies who are slow to react may find themselves with a potential crisis on their hands in the not too distant future - in fact almost half (48%) of the companies we surveyed admitted that the threat an ageing workforce poses to their business is either significant or severe.

In a previous part of this research analysis, we reported that not only did most companies acknowledge the potential threat to their service operations but also that they had identified that they would need to change their recruitment and training policies to make them a more attractive proposition to Millennials.

Yet at the same time, the majority of companies had so far failed to make any real changes in how they approached these dual challenges.

Now in this second half of our analysis, we explore the potential benefits of harnessing technology as a tool to attract, retain and develop talent from the Google Native generation.

Does technology attract talent?

One of the key findings of the research that we revealed in our first article in this series was that the role of the field service engineer is evolving into one which has multiple skill requirements.

Taking this into account, attracting the best talent to an organisation is of course highly important process for any field service company – but what role does technology play in making a service organisation an attractive option for the brightest and best recruits?

We asked our respondents if they felt that those companies who are harnessing technology such as mobility tools and Field Service Management systems to empower their field service engineers are likely to be more attractive to potential new recruits.

Here we saw a real even split of opinions. We gave our respondents three options to this question which were:

• Yes – we find that our adoption of FSM technology is a key factor in recruiting future FSEs
• Yes – but currently our adoption of FSM technology is limited and this could have a negative impact on our recruitment drives.
• No – we find that there are other more important factors such as salary levels and holidays etc.

In fact, the responses were almost perfectly split across the three options.

34% of respondents stated that they felt that adoption of technology was likely to make them more attractive but they felt they current solutions were limited, whilst 33% answered with both of the other options.

The consensus then is that technology does certainly have a role to play in attracting new talent to a field service organisation, even if a sizable section of companies feel their own levels of technology are not currently sufficient to fully take advantage of this fact.

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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What will the impact of servitization and the move to preventative maintenance that it entails have on parts and inventory management? Erik Kjellstrom, Pre-Sales Manager, Syncron tackled this question at the Aftermarket Conference in Hamburg last October. Kris Oldland followed up with him after the event to find out more more...

As Erik Kjellstrom, Pre-Sales Manager, Syncron, stepped down from the stage having just given a presentation at this year’s Aftermarket Conference, I was looking forward to the opportunity to catch up with him for a number of reasons.

His organisation has been something of an anomaly in our sector of recent years. A pioneering lone voice that often were seemingly single-handedly trying to bring a dedicated solution to what was often the unloved piece of the field service puzzle – parts management.

Whether, it be pricing, inventory management or stock ordering, Syncron have successfully over the last few years been one of few brands to be associated with taking this part of the aftermarket conversation seriously. We’ve seen Syncron a lot at various conferences over the last 24 months and almost each time they’ve been armed with case studies and hard data that revealed just how much (and how easily) their solution has improved their clients P&L both in terms of top line revenue and bottom line profit.

However, this time around there was a twist to their approach. Having recently brought a new in module into their offering that is focused on predictive maintenance and based on IoT, were they shifting their focus - or was this development just a natural evolution that reflected the changing dynamics of the industry?

The central thrust of Kjellstrom’s presentation was that essentially there are a number of interesting trends appearing in the aftermarket industry – covering a lot of the ground that regular readers of Field Service News will be familiar with.

We are seeing futuristic concepts such as Drones, 3D Printing, Augmented Reality and Autonomous Vehicles all of which have all been on the horizon offering the promise of industry revolution for a while but are now really starting to come into the mainstream conversationTo begin with, coming from the technology perspective we are seeing futuristic concepts such as Drones, 3D Printing, Augmented Reality and Autonomous Vehicles all of which have all been on the horizon offering the promise of industry revolution for a while but are now really starting to come into the mainstream conversation. Alongside this with have already seen wide adoption of Mobile, Cloud and increasingly the Internet of Things amongst manufacturers and service providers.

However, the changes we are seeing in our sector are not just driven by technology alone.

Sweeping demographic change within the workforce, accelerated by the ageing workforce crisis being faced by companies across the globe and being exacerbated by the unprecedented differences between the incoming Millennial generation and the outgoing Baby Boomers, is of course another factor driving industry evolution forwards.

Finally, add into this mix our shift to a much more service and outcome orientated society as a whole - arguably itself the result of the generational shift alongside the technical advances referenced above and we are seeing companies turn their entire business models on their head.

Servitization has gone from fringe concept to buzzword across the last eighteen months or so as talk of ever decreasing SLAs and increasing First-Time-Fix rates has morphed into discussions around guarantees of uptime and the financial impact of unplanned downtime.

As such our industry is in a fascinating and exciting state of flux at the moment and it was this rapid development and the various drivers behind it that were at the heart of the Kjellstrom presentation in Hamburg.

Of course, such dynamic changes within the sector need to be reflected within the solutions provided and it is the shift towards preventative maintenance (itself a major stepping stone on the way to servitization) that Syncron have focused their latest efforts on.

“We have been working very much to support more reactive service models in the past in terms of inventory management and pricing but what we are now doing, both from a product stand point but also from a service offering standpoint, is we are working towards an uptime supporting module.” Kjellstrom explained when we caught up.

In brief, Syncron are integrating a new module into their current service network optimisation capabilities.

These capabilities in the past had all been centred on the parts management area of the Aftermarket sector – pricing, inventory management, and ordering. However, their new module is a predictive maintenance module they call Uptime (makes sense), which Kjellstrom explains is intended to ‘blend together the aspect of inventory management and pricing etc with an understanding of the actual assets that use these parts.

It seems a natural alignment to bring the asset and the parts management together in the preventative management worldIt seems a natural alignment to bring the asset and the parts management together in the preventative management world. Indeed, much of reasoning behind this development from Syncron echoes a similar line of conversation that ServiceMax put forward when they announced their integration with GE Digital’s technology Asset Performance Management (APM).

Essentially both Syncron and ServiceMax are approaching the same central maxim - just from two different angles. In a world of IoT and sensor-led preventative maintenance the asset is King and everything else should fall in line around and work back from that one premise.

However, where one does feel that viewpoints will change between the two organisations is in how the ecosystem is built. Through their recent acquisition list including Servicemax, it is clear that GE Digital have their eyes set on building a comprehensive and all encompassing new platform for age of the Industrial Internet.

For Syncron however, the focus for the time being at least, appears to be in line with their best-of-breed heritage.

“I think that a product such as ours and a Field Service Management (FSM) system are complimentary products.” Kjellstrom explains.

“We have many instances where we will see a FSM system or a maintenance system that runs in compliment to the more Aftermarket focussed, parts oriented solutions such as ours. Perhaps what makes Syncron a little bit unique is the way we work and how we blend together the aspects of network optimisation and parts optimisation which is often natively something that belongs in a FSM tool.”

With so many technologies evolving at once a clear case could be made for establishing a comprehensive technology ecosystem across a service orientated business and Syncron is set to be an important part of that ecosystem.

Yet, in a world that seems to be in constant Beta, not all developments are equal and Kjellstrom believes it is important to understand how different technologies can impact the way we work when building out your own tech strategy.

Certain technologies will bring refinement whilst others offer revolution.

“We definitely see more potential impact from some types of the technologies than others,” he comments.

“What we are really interested in are the questions like will 3D printing totally replace a need for service part inventory management – and the answer is no it will not, it may enhance it but it will not replace it.”

Does the development of autonomous vehicles mean that we will begin to see car sharing across a team of engineers“How about autonomous vehicles? Does the development of autonomous vehicles mean that we will begin to see car sharing across a team of engineers” he asks rhetorically before outlining that such technology could lead to servitizing the fleet at which point automotive manufacturers concerns about spare parts really begin to truly change and evolve into an entirely new set of thinking and processes.

“These are the types of questions that we are interested in, in terms of the emerging technology.” He explains.

“What we are seeing is that some of these new technologies are really pushing towards a more uptime related world, whereas some technologies are more likely to become tools for us to simply improve existing processes.”

However, whilst he believes the shift to Servitization and outcome based solutions will continue to grow, Kjellstrom also insists that the traditional break-fix market and the aspects of pricing, parts management and inventory which that function drives forward, will never fully disappear.

“I am sure that the shift in focuses to uptime guarantees are growing rapidly and eventually break-fix is going to become less significant but there is always going to be the type of customers where uptime critical assets are not relevant.”

Indeed, whilst we wait for the weighting between the old and the new to do a 180 flip, one thing is clear, for the short-term at least we need to be able to accommodate both – which means looking to the future today – something Kjellstrom and his colleagues have embraced which is clearly evident by their introduction of the new Uptime module.

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Our latest research project, run in partnership with ServiceMax from GE Digital has take a deep dive into how the role of the field service engineer is evolving. Across the next few months we will be publishing a series of articles both in print and online exploring the findings of this research.

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.

Now in part two we explore if and if and how field service companies are utilising their experienced field service engineers to train the incoming generation.

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) 

Utilising experienced FSEs to train the next generation:

Of course, an optimal solution that keeps older FSEs in the work place longer and ensures their knowledge is transferred to those FSEs entering the workforce, is to implement training programs whereby the more experienced techs are directly involved in the training process.

Traditionally, the potential for such undertakings was limited somewhat by the very nature of a field service role. Some senior technicians could take on trainer roles perhaps, providing classroom style learning, but such positions are by default limited. Also, much of a young FSEs true training begins once they’ve left the classroom and are actively in the field. Again, some companies run highly successful programs, pairing up newer engineers with more experienced counterparts to deliver on-job training - doing so can be costly and an inefficient use of FSE resources - doubling up engineers on each job.

Over half (54%) of respondents stated that such an undertaking was certainly something that they are exploring but that they currently don’t have the technology/processes in place.However, emerging technologies - in particular Augmented Reality have shown huge potential to widen the possibilities of using older FSEs in a training and support role. This has dual benefit of both extending the FSEs potential career within the field service organisation whilst putting valuable insight, knowledge and experience in to the hands of less experienced engineers as and when they need it.

But are field service companies harnessing both the power of technology and the experience of their older engineers in such a manner?

We asked our respondents: “A number of companies are now using remote assistance technologies (e.g. Augmented Reality) to keep their older and experienced FSEs in the work place for longer, both as a means of training new recruits and also as a way of ensuring that the knowledge and experience of older engineers is not just walking out of the door. Does this apply to your organisation?’

The responses again somewhat reflect the findings of the previous question around training methodologies, in that whilst the majority of companies agree with the notion of using their older, more experienced FSEs as part of training and support programs and that technology was key to that process, most were still (at best) just beginning down that path.

In fact, over half (54%) of respondents stated that such an undertaking was certainly something that they are exploring but that they currently don’t have the technology/processes in place.

However, perhaps surprisingly just under a quarter of companies (24%) stated that they did not envisage implementing any such plans. This is a surprisingly large number given those companies who do not involve their older engineers in the training process risk seeing years of amassed ‘tribal knowledge’ simply walking out of the door in the not too distant future.

Looking forward it may well be that it is these companies, i.e those who have gotten the head-start over their competitors in such programs, will reap the benefits of doing so and it may well be at the expense of those who don’t.

However, with currently just 20% of companies actively using senior engineers in a remote expert capacity - it seems there could still be room at the top table, for a while at least.

Soft skills taking precedence?

Another major driving factor which is often seen to be impacting how we view the core skills of the field service engineer is the widely reported increase in customer expectations and demands - largely driven by disruptive companies such as Uber and Amazon raising the bar in terms of visibility and immediacy.

Today’s customers are empowered by technology, and easier access to information than ever before makes them more insightful and more expectant. They also have a louder voice than ever before thanks to social media, whilst the ongoing digitisation of all industries makes finding competing service providers a quick and easy process for dissatisfied customers.

And of course the majority (if not all) of this can now be done without the need to actually meet another human being in person. But what does this mean for the FSE?

Well given that in many instances the FSE may be the only face-to-face touch point your customers have with your customers, the old image of a FSE being a recluse, lurking in dark corners, happier tucked away fixing machines than speaking to those pesky customers who just get in the way - has thankfully made way for a new breed of confident, customer-friendly FSEs.

An incredible 98% of respondents stated that people skills were now a higher priority for them than they had been beforeToday’s FSE is armed with all the knowledge they need to hand courtesy of a modern FSM system. They’re confident speaking with customers at all levels of seniority and are true brand ambassadors and are as comfortable selling as they are fixing.

But, is this actually a true reflection of how field service companies are beginning to view their FSEs? Have soft skills become more important than technical skills? There is an argument that it is simpler to train technical skills and that good inter-personal skills are that much harder to teach - but does this hold any truth and are field service companies moving towards placing greater emphasis on soft-skills in their recruitment today? We asked our respondents ‘Is the need for softer, interpersonal skills – becoming a higher priority than before when recruiting new FSEs?

From the results it would appear that this is indeed a major trend amongst field service organisations. An incredible 98% of respondents stated that people skills were now a higher priority for them than they had been before with 46% of companies going as far as stating that people skills are at the top of their list when recruiting new FSEs.

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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