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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.

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) 

Here in the first article of this series we look at the question of the ageing workforce and the entry of millennials into the field service workforce...

Much has been written about an ageing workforce crisis but how much of the worry is based on hyperbole? And what of the Millennial generation entering the workforce - is our industry ready to embrace them?

Our industry is rapidly evolving. Technology is continuously pushing the boundaries of field service efficiency whilst simultaneously customer expectations are becoming ever more demanding.

Companies like Uber and Amazon have disrupted the very concepts of what good service looks like, shifting the goal posts and creating a race across almost every industry vertical for companies to embrace service excellence.Companies like Uber and Amazon have disrupted the very concepts of what good service looks like, shifting the goal posts and creating a race across almost every industry vertical for companies to embrace service excellence.

At the same time digital transformation is the other major trend sweeping across our sector – one direct side effect of which is that increasingly the Field Service Engineer (FSE) is often the only face to face human interaction between a company and their customers.

So what does this mean for the FSE of tomorrow?

How is their role evolving? What are the skills that will be vital to their role and how do these differ from those that we have previously sought in our FSEs?

To try to find the answers to these questions Field Service News has undertaken a new research project in partnership with ServiceMax by GE Digital.

Across the last few months we’ve reached out to our readers across the globe to gain their insight in order to build a picture of what the FSE of 2022 (incredibly only five years away!) will look like and what role does the growing  importance of technology in field service delivery play in shaping the way we approach acquiring, training, and developing talent within the field service sector?

Across the next few months we will be publishing a series of articles based on the findings of this research and in this first article in the series we ask is the ageing workforce crisis actually really happening or is it all hyperbole? And what about the Millennial workforce entering the field service sector - are we ready to embrace and empower them?

About the research:

The research has been conduct via an online survey across the last two months and our respondents have come from all over the globe including; the UK, Germany, Netherlands, France, USA, Canada, Brazil and beyond.

There was also an equally wide split of industries represented with respondents coming from numerous sectors including; Oil and Gas, Manufacturing, Utilities, Telcos, Print/Copy, Med Tech and many others.

Finally, there was also a balanced representation of companies of all sizes with some companies having less than 10 field service engineers right through to companies with more than 800 engineers.

In total there were 126 respondents which is a large enough sample to provide a reasonable snap-shot of the thinking and the trends amongst field service management professionals.

So what were the findings? Let’s take a look.

The threat of an ageing workforce:

One of the biggest drivers for the rapid evolution of the role of the field service engineer is the fact that the core demographic of those working in field service roles is going through seismic change as we see an ageing Baby Boomer workforce reach retirement age being replaced by a new generation of workers, the Millennials.

Perhaps never before has there been such a significant difference between the generation leaving the workforce and those that are just beginning their working lives. From the way knowledge is gained and shared through to the key motivational drivers, ‘Boomers and Millennials are often chalk and cheese. One of the key challenges for field service companies of all shapes and sizes is how they adjust to this shift in thinking within their workforce and for many time is not on their side as they endeavour to make this adjustment.

There has been much talk of an ageing workforce crisis as the existing Boomer workforce reaches retirement age - perhaps magnified amongst field service organisations by the simple fact that field work can often be relatively physically demanding compared to more sedentary office based roles.

With this in mind our opening question in the survey was focussed on assessing just how real this ageing workforce crisis is amongst field service organisations. We asked our respondents ‘For your organisation how big a threat to your field service delivery do you think this issue will be across the next 5 years?’

The responses revealed that whilst perhaps there may be some hyperbole around the urgency of the issue - it still remains very much a concern for a huge percentage of companies.The responses revealed that whilst perhaps there may be some hyperbole around the urgency of the issue - it still remains very much a concern for a huge percentage of companies.

Whilst only 8% of organisations stated that for them an ageing workforce represented a severe threat i.e. that it is a major issue they are facing that could put their field service operations at risk, 40% of companies taking part in the research stated that the threat was significant for them and that unless addressed quickly they are likely to face major disruption to their field service delivery within the next five years.

In addition to this a further 34% of the respondents stated that they believed the challenge of an ageing FSE population was moderate that they acknowledged it as possible issue that they need to be aware of, although they didn’t anticipate it having a major impact on field service operations.

At the other end of the spectrum just under a fifth of respondents (18%) stated that the impact for them would be limited and that whilst there may be some workforce attrition due to FSEs reaching retirement age, it is unlikely to have any significant impact on their field service operations.

So, it would indeed appear that in the main the issue of an ageing workforce is at the very least a consideration for more than four out of five field service companies.

Changes in training methodologies:

This puts many field service organisations in a challenging position.

The need to recruit younger talent for FSE roles is clearly pressing, but given the aforementioned differences between ‘Boomers and Millennials are the existing on-boarding and training methods suited to this incoming generation?

Our next question was therefore focussed on understanding if field service companies did in fact feel the need to change their training methodologies and whether they were actively doing so. We asked our respondents; ‘Have you adapted your training and development strategies to reflect this?’

Only 10% of companies had stated that they had already redeveloped their training strategies to be more geared to the incoming Millennial workforce. Here the research revealed that whilst there was a clear understanding that changes to the traditional means of training FSEs does indeed need updating, it seems that there is something of a general inertia amongst field service companies to currently tackle such change.

In fact, only 10% of companies had stated that they had already redeveloped their training strategies to be more geared to the incoming Millennial workforce. However, just over half (52%) of companies taking part in the research are currently in the process addressing the issue in their organisation.

Further to this just over a quarter (26%) stated that they had yet to start making changes to their FSE training to reflect the shift from ‘Boomers to Millennials but accept that they need to do so and is something they are currently considering.

Meanwhile, 12% of companies do not believe they need to make any changes to their FSE training at all.

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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Digital Twins have a big role to play in field service management and will be essential for creating business intelligence writes Mark Homer at ServiceMax, a GE Digital Company

We often hear the phrase, ‘you cannot account for human error’ but that seems illogical in today’s connected world. We have the technology to not just account for human error but to eradicate it.

The Internet of Things with the proliferation of affordable and reliable sensors is changing the way in which we can view, manage, service and support technology, processes and any physical object. By mirroring a process, product or service into a virtual world, we can create environments in which machines can automatically analyse performance, warn of impending issues, identify existing or potential errors and even suggest part upgrades or changes to procedures to make them more efficient.

This is the digital twin idea. As a concept, it’s been around for a while (NASA used it on early space missions) but the emergence of IoT has made it a commercial reality. Digital twin eliminates guesswork from determining the best course of action to service critical physical assets, from engines to power turbines.

 

Easy access to this combination of deep knowledge and intelligence about your assets paves the road to wider optimisation and business transformation.

Digital twin technology spans across all industries where the value is in assets and more generally complex systems. Its ability to deliver early warnings, predictions, and optimisation is fairly universal. In time, I think we’ll see the concept of a digital twin to be applied to human beings as well, playing a significant role in healthcare.

However just mirroring is not enough. If the aim is to achieve zero downtime or at the very least, overall insight into on-going product and process performance, the digital twin has to be analysed and that analysis has to feed other functions.

What the digital twin produces, when bundling data with intelligence, is a view of each asset’s history and its potential future performance.

This continuum of information leads to early warnings, predictions, ideas for optimisation, and most importantly a plan of action to keep assets in service longer will, sending commands to machines in response to those forecasts.

In other words, if you close the loop, with data and predictions, you can act directly on the asset itself. That’s where Asset Performance Management and Field Service Management are changing the way service operations run.

 

By combining APM with FSM tools, the digital twin idea is transformed into an intelligent agent. Businesses have, for the first time, a complete suite of intelligence at their fingertips, to understand potential equipment issues, and pre-empt them or act upon them quickly and efficiently with the correct tools and parts, should machinery need fixing.

This means field service is managed more efficiently, reducing costs and ensuring minimum downtime as engineers attend jobs with a full understanding of the problem, the right parts to hand and a complete knowledge of how to fix it.

This is the shift from an often blind and reactive approach to fixing broken products and services to a predictive model that should eliminate waste, reduce costs, downtime and importantly human error.

The digital twin idea has additional benefits too, as it can use historical data and current data to provide a complete picture of a particular asset, its past performance, what it should be achieving now and its likely end of life date, when it would be predicted to be less efficient.

 

This sort of knowledge is gold dust for product designers and manufacturers as it can feed back accurately, which parts work well and where machines would need improving or upgrading.

Combined with the knowledge of field service professionals this makes for a powerful tool for upselling products and services to customers. Any new ideas or enhancements can be fully supported with data analysis and perhaps even simulations to illustrate how new parts and functions would improve performance.

It offers justification and also accountability and should cut through irrelevant or unsuitable product or service ideas.

It’s transforming service at the edge by bringing together all the facets that make businesses and machines tick - and goes a long way to creating a world of zero unplanned downtime.

 

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Noventum has released its FSM Solutions Reality Check report, a comprehensive overview of the leading Field Service Management (FSM) solutions to help organisations select the solutions best suited to their requirements.

According to research and evaluations conducted by Noventum, Field Service Management solutions provided by ServiceMax, Microsoft and IFS are best positioned to provide maximum business benefits to service businesses while the potential risks and TCO are the lowest.

Noventum evaluated vendors and their products by assessing their functional and non-functional capabilities against the industry leading Service Capability & Performance (SCP) Standards to determine whether the solutions can support the key businesses capabilities service businesses need to be successful.

Service organisations that are planning to select a new FSM solution can benefit from the knowledge and data collected to select the best FSM solution for their specific needs and for their specific situation. By using Noventum’s evaluation framework based on SCP this can be done in a much shorter timeframe and with a better and completer set of service requirements and evaluation criteria than is typically the case, ensuring that the selected solution can support all service processes in scope.

 

Through our extensive customer engagements, via product demos and customer references visits, Noventum validated the capabilities of service management solutions to ensure that they meet client’s needs in real world situations.

Visit Noventum’s website to request a copy of the report (http://noventum.eu/whitepaper/fsm-solutions-reality-check).

Join Noventum at Field Service Europe on 6-8 December 2017, with over 55 heads of service speakers.

You can register today http://fs-ne.ws/nCix30gid3o for Field Service, including the including the Service Industry Standards Day with a 20% discount (Service providers only) when you indicate the registration FSEU17FSN

 

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This week GE unveiled expansions to its suite of edge-to-cloud technologies and industrial applications, designed to help its customers build a complete asset strategy.

These additions to the GE Digital portfolio complement the key software applications that drive industrial productivity and extend these benefits through Predix, the application development platform for the Industrial Internet.

To help industrial companies get the most out of their industrial assets and drive better business outcomes, GE Digital today introduced: Predix Edge technologies to accelerate computing at the edge; the Predix platform combined with Microsoft Azure, the cloud for enterprises; new Operations Performance Management software to bridge productivity from assets to operations; enhanced Field Service Management solutions to improve the customer experience; and new platform tools to simplify industrial app development.

“Industrials that unlock data to master asset productivity will be positioned to lead,” said Bill Ruh, Chief Digital Officer of GE and CEO of GE Digital. “To power digital transformation, industrial organizations must understand every stage of the asset lifecycle. The company that designs, builds, operates, maintains and services industrial assets is best equipped to help others with their Industrial IoT journeys. And only GE offers the combination of industrial apps, underpinned by an industrial platform, to ultimately drive customer outcomes.”

 

Edge-to-Cloud Intelligence on Any Industrial Asset, Anywhere

By 2022, Gartner predicts that 75 percent of enterprise data will be created and processed outside the data center or cloud. The ability to compute and manage this information both at the edge and in the cloud are essential for industrial companies to truly optimise their operations.

To help customers accelerate their edge strategies and make any asset an intelligent asset, GE Digital is expanding its Predix Edge capabilities to help run analytics as close to the source of data as possible. Predix Edge gives customers with limited connectivity, latency limitations, regulatory or other constraints a way to deploy applications closer to the originating data – or at the edge.

Enhancements include:

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• Predix Edge Manager allows customers to support large fleets of edge devices – up to 200,000 connected devices from a single console.
•  Predix Machine enables microservice-based applications to run at the edge on customers’ virtualized data center infrastructure or on server-class hardware from GE or its partners. This also supports Predix Edge Manager, which was previously available only as a cloud service.
• Predix complex event processing (CEP) allows for faster and more efficient analytics and other event processing at extreme low latency, available at the edge in Q1 2018.[/unordered_list]

These edge solutions can help companies move from intelligent asset management to automation to insights-led machine learning across a distributed system. One example is EdgeLINC, a comprehensive edge-to-cloud solution from GE Transportation integrated with Predix Edge Manager, Predix Machine and Asset Performance Management applications. EdgeLINC enables efficient device management, configuration and streaming analytics even when machines, such as rail assets, are constantly moving in and out of communication.

Predix Platform on Microsoft Azure

GE Digital and Microsoft are bringing together the advanced industrial platform services of Predix with the flexible, enterprise-proven services of Microsoft Azure. Available in North America starting Q4 2017 and expanding globally in 2018, this partnership extends the accessibility of Predix to Microsoft’s global cloud footprint, including data sovereignty, hybrid capabilities and advanced developer and data services, enabling customers around the world to capture intelligence from their industrial assets.

The partnership helps businesses better connect their information technology (IT) systems with their operational technology (OT) by bringing a company’s systems – and data – together in a shared environment. While IT and OT have traditionally existed in silos, Microsoft and GE are bridging this gap and giving industrial customers a way to more easily improve performance, increase operational efficiency and accelerate the shift from automation to intelligence.

 

Advanced Applications to Make the Industrial Internet More Actionable

Understanding how an asset operates and its maintenance needs is critical to mitigating risk and improving productivity. Alongside its Asset Performance Management (APM) software, the core application deriving value from industrial assets, GE Digital introduced a complementary application that improves the operational performance of assets – like pumps, valves and heat exchangers – and drives a comprehensive asset management strategy.

This new Operations Performance Management (OPM) solution helps industrials increase revenue and margins, optimise the throughput of industrial processes and make their sites more profitable. OPM uses real-time and historical data – along with advanced analytics – to help customers make better operational decisions. The solution provides an early warning if industrial processes deviate from plan, arms operators with the information and time to troubleshoot operational issues and helps them take preventative actions to meet business goals.

GE Digital’s OPM software initially targets the mining industry and will expand to additional industries early next year.

The OPM solution has already helped customers achieve significant improvements to revenue and profit including:

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• A platinum operator increased overall throughput by 10 percent, consistently reaching maximum design capacity and increasing recovery by 1.5 percent.
• A large mining company achieved a 5.5 percent increase in throughput while consuming 2 percent less power
• A gold producer realised a 1.5 percent increase in recovery while reducing equipment-related costs through improved process efficiency.
  [/unordered_list]

Enhanced Field Service Management Solutions

With service technicians looking to embrace technology to improve their productivity and deliver a better experience for customers, ServiceMax from GE Digital, the leading field service management (FSM) solution, announced several enhancements to its FSM suite – enabling even greater efficiencies and bringing advanced analytics to service operations.

Artificial intelligence-enabled predictive service times now integrate the Apache Spark AI engine to improve service time estimates. Additionally, a new application integration solution enables service providers to launch and share FSM data with third-party mobile applications installed on the same device. New capabilities in schedule optimisation allow for dependent job scheduling between work orders for multiple visits aimed at improving first-time fix rates. As part of GE Digital’s FSM portfolio, these new features allow operators to minimise downtime, optimise costs, reduce risk and improve productivity for your services team.

Advanced App and Digital Twin Solutions

GE Digital also introduced Predix Studio to help companies build and scale their own industrial applications and extend its Asset Performance Management (APM) suite, Available in Q1 2018, Predix Studio simplifies the development process by giving customers the ability to extend applications and empower industrial subject matters experts – or citizen developers – to build apps in a low-code, high-productivity environment. A vital demographic, citizen developers comprise controls and reliability engineers, OT operators and line of business users with domain expertise but little or no coding experience. Using a mix of AI and machine learning, Predix Studio automates the heavy lifting of creating Industrial IoT apps – opening app development to an entirely new kind of developer. 

To help customers capitalise on new growth opportunities, GE created the Digital Twin Analytics Workbench, a solution that applies a library of algorithms and templates to make it faster and easier for companies to build their own digital twins on Predix. GE’s experience in managing industrial assets has generated hundreds of millions of hours of machine data and a deep understanding of how machines perform in various conditions. Modelling that physical data into digital twin models allows GE to deliver applications that better predict and improve the performance of physical machines.

 

The Analytics Workbench, currently a technology preview from GE Power, can be used to augment existing digital twins with new data streams. For example, power producers using drones to inspect wind turbine blades, pipelines or fuel reserves can integrate visual inspection data into the digital twins they already use to manage generation assets and grid infrastructure. The Analytics Workbench also helps users implement machine learning capabilities that allow those models to improve themselves over time.

Unveiled as part of GE’s Minds + Machines conference, these solutions from GE Digital are designed to help customers successfully advance their digital industrial transformation journeys while realizing real and immediate benefits to their bottom lines.

 

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A new study from Vanson Bourne, sponsored by ServiceMax, from GE Digital, the leading provider of field service management solutions, has found that 75% of IT decision makers believe that machines will receive better, preventative healthcare than human beings by 2020.

Leaders surveyed believe advancements in machines having the ability to predict failure, take preventative measures or self-healing actions are widely viewed as beneficial to a company’s bottom line.

For example:

• 46% of respondents say machines requesting help themselves will help their company better manage their equipment assets.
• 39% of respondents say predictive maintenance would help better manage asset equipment.
• 44% of respondents say digital twin with predictive maintenance and artificial intelligence would help prevent major failures.
• 69% of IT leaders surveyed say they would like their own personal digital twin to help themselves and medical professionals regulate their health in non-invasive ways by taking early action and preventative measures.[/unordered_list]

The new study, “After The Fall: Cost, Causes and Consequences of Unplanned Downtime,”  surveyed 450 field service and IT decision makers in the UK, US, France and Germany across the manufacturing, medical, oil and gas, energy and utilities, telecoms, distribution, logistics and transport sectors, among others.

According to Gartner, by 2020, 10% of emergency field service work will be both triggered and scheduled by artificial intelligence. The new study highlights the impact of new technology like artificial intelligence, analytics, and use of a digital twin on how we monitor industrial machines to predict when a piece of equipment will fail and what preventative service maintenance is required.

“In the same way that organisations want zero unplanned downtime with their equipment assets to avoid expensive loss of production or service, we want to mitigate our own human ‘outages’,” said Mark Homer, Vice President Global Customer Transformation for ServiceMax, from GE Digital. “This holistic view of how something is operating – whether it’s a person, an equipment plant or an individual component in a machine – has historically been disjointed and only visible when something goes wrong.

 

Today, organisations are now acutely aware of the value of a real-time view on the health and performance of their critical assets, as well as predictive analytics on when preventative maintenance or intervention is required, and access to time series data, service history and optimisation demands. The research found that more than half of companies are planning to invest in a digital twin in the next three years.

The value of these digital insights in an industrial context is starting to generate interest in preventative maintenance in a human context.”

A copy of the Vanson Bourne Whitepaper and Executive Summary, can be downloaded here

 

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Disruption has become a phrase so widely used it is in danger of becoming hackneyed, but in terms of asset maintenance, the IoT is bringing true, genuine disruption writes Servicemax’s Dave Hart...

If you had to pick a moniker for this decade, then “disruption” is a pretty good one. It’s now so pervasive that it’s almost become a cliché of itself.

Everywhere you look, from banking to music to taxis and hotels, traditional business models and markets are being disrupted. All driven by technology being applied in innovative new ways. Now it seems it’s the turn of capital equipment assets and the machines themselves to be disrupted – or at least the way we manage, use and maintain them.

Industrial downtime is no joke. Unplanned downtime in just about every industry has a significant impact. The Aberdeen Group last year reported that the cost of downtime across industries went up to $260,000 per hour on average between 2014 and 2016. That’s a huge jump with a considerable hit on any business.

Time typically isn’t kind to equipment and machines.

As assets get older, parts need maintaining or replacing and more can go wrong. And when it does go wrong, service technicians are typically sent out on site with very little insight other than something isn’t working. On top of that, most companies don’t know how best to optimise uptime availability in different conditions, such as managing volatility, meeting peak demand or managing performance in extreme conditions. It’s an area of business that’s historically been very inefficient, and had very little intelligence or investment applied to it.

 

As a tech-enabled society, we are better than that. And it was only a matter of time before the wave of technology innovation and disruption made its way to changing how we optimise equipment and capital assets, and predict their maintenance and service requirements. By harvesting and applying intelligence that previously would have been impossible to obtain, companies are seeing a major step change this area.

And it’s more than just a ‘nice to have’ scenario. For most industries, margins are too thin and competition is too fierce to simply guesstimate how much capacity a piece of equipment can cope with, and it seems positively archaic to run a reactive break/fix service mentality in today’s connected age.

The reality is that the Industrial Internet offers an opportunity to intelligently manage resources and manage performance. Machines with sensors feeding back performance data provide a raw pipe of potential intelligence that needs to be woven into the business. With the right tools, organisations can use this data to develop strategies that alleviate risk.

Asset-intensive companies always strive to reduce operating risk while improving efficiency, at the same as coping with regulatory demands and workforce development.

These are key challenges that are difficult to achieve without an intelligent asset performance management (APM) approach. The more forward thinking companies also have field service management (FSM) strategies in place in an effort to streamline and automate their service departments. They are wise investments as both APM and FSM each deliver significant value in their own right.

But here’s the real disruptor: By combing these two disciplines, businesses have, for the first time, a complete suite of intelligence at their fingertips to understand potential equipment issues, and pre-empt them or act upon them quickly and efficiently with the correct tools and parts, should machinery need fixing for example.

No second guessing, no wasted investigative journeys and much lower risk of downtime.

Now take this one step further and think of a digital twin that mirrors of all your physical assets globally, giving you a dashboard that reports back to you on the status, health and performance of how each piece of equipment in each location is working. One that proactively alerts you, through intelligent APM, when action is required, and automatically takes preventative measures, through FSM, when an issue arises. Suddenly downtime looks much less of a threat.

That’s because predictive analytics and work management through APM enable businesses to plan, schedule, execute and feedback on problems and solutions. Which equipment is failing or about to fail and why? What parts are needed to fix the problem, where and by whom? And FSM then automatically triggers scheduling, ordering and dispatch of a service technician if required, to ensure everything is up and running and downtime is minimised.

 

It’s interesting that service businesses represent around seventy per cent of the world’s economy, yet to date, only about a third of the world’s large service businesses use just FSM solutions. They are missing a trick.

A combined APM and FSM approach optimises the equipment strategy for a company, analyses the risk and cost of how often equipment should be inspected, saving money, increasing productivity and reducing risk of downtime.

So what does all this mean in real terms? By proactively optimising and managing equipment assets, business can expect, on average, a 10 percent inventory cost reduction, 40 percent reduction in reactive maintenance, 25 percent gain in employee productivity and a 25 percent reduction in total cost of ownership.

Likewise, field service management can generate an average 13 percent boost in revenues and an 11 percent increase in customer satisfaction.

Why wouldn’t you want to join the dots on metrics like those? Throw in the potential savings from reduced transport and failure rates, less downtime, plus the sustainability benefits, and you have a recipe for future growth.

Now that is compelling, not to mention disruptive.

 

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It has now been ten months since GE Digital acquired field service management solution provider for a cool $915 Million. Even against a backdrop of constant M&A activity within our industry, it was a deal that made the wider world sit up and pay attention to the field service sector. But how have ServiceMax slotted in two the GE Digital fold and how big a part will they play in GE’s vision of how best to serve the industrial markets of the future?

Kris Oldland, spoke exclusively to Scott Berg, COO, ServiceMax just before he participated in their first major outing as a GE Digital company at the Minds and Machines conference...

With the Minds and Machines 2017 event just days away it was an opportune time to reconnect with Scott Berg, COO of ServiceMax.

The last time I spoke with a member of the senior executive team at the Californian based Field Service Management Solution provider was when I spoke with their CEO Dave Yarnold, literally a few hours ahead of the announcement that ServiceMax was being acquired for a figure just shy of a Billion dollars by General Electric (GE) and would become part of their expanding GE Digital portfolio.

And whilst field service management is undoubtedly a hot ticket for investment at the moment, with the list of acquisitions within the market being a veritable who’s who of FSM vendors including ClickSoftware, ServicePower and IFS amongst others, nothing has come even close to matching the size of deal between GE and ServiceMax.

But then no one in the field service sector has really come close to matching ServiceMax in terms of their success story across the last decade either - growing from a three man start-up in a rented office in San Francisco to an industry leader worth close to a Billion Dollars within ten years takes some doing, yet when I spoke with Yarnold back in November last year, it wasn’t achievement I heard in his tone, but yet further ambition.

 

He talked excitedly about the reasons why he had decided GE could be a suitable home for ServiceMax, outlining hugely ambitious plans to work with GE to build out a working IT platform for entirety of the industrial sector, something that connected people, assets and workflows together to drive business forwards in the twenty first century.

Indeed, it is often hard to not get caught up in Yarnold’s enthusiasm, and sometimes the trick is to separate the passion from the plans, the hyperbole from the reality - although in fairness he and the ServiceMax team do tend to have a habit of meeting the ambitious plans he puts forward.

But has that ability to rise to the challenge been hampered or enhanced whilst being taken under the wing at GE?

Just ahead of the Minds and Machines conference is a great time to sit back and assess that question, whilst Scott Berg, is perhaps the perfect barometer.

Like Yarnold, Berg has been on the ServiceMax journey from Day 1, and whilst he undoubtedly shares much of Yarnold’s passion not just for their product but for the service industry at large as well, with Berg one also gets the feeling that, that passion is tempered just a tad by a keen analytical mind, that is acutely aware of not only the size of the opportunity but also the size of the challenge, and as Chief Operating Officer, it is his job to overcome that challenge.

 

As such he is a perfect foil for Yarnold, the two compliment each other well, (in fact that is trait that seems to be apparent throughout the whole ServiceMax family, there is a shared ‘something’ in the DNA and it seem that at all levels the team members feed well off each other) so who better to discuss how the integration with GE has progressed and whether the roadmap for Servicemax as part of GE remains on a similar course, to that which Yarnold described?

“This is really the first opportunity for us to be a GE Digital company and showcase some announcements of what we are planning,” explains Berg when we catch up to discuss what we can expect to come out of the event.

“I think this is the first time that we’ve made a public announcement where people can start to see some of the synergies across the GE Digital portfolio and the big news for us is the integration between the ServiceMax Field Service Management (FSM) Solution and Asset Performance Management (APM) within the GE portfolio. It’s big news and I think it’s a first proof point around GE’s thinking around the Industrial Internet and what role services and assets will play within that world.”

Indeed, when ServiceMax launched their Connected Field Service offering in the beginning of last year the vision was very much to bring the install base to the forefront of an FSM system, rather than just being focussed on the mobile workforce - which had traditionally been the primary focus of industry tools to date. Connected Field Service of course leveraged IoT, and from my limited understanding of AMP this was a solution that could build on that?

“Yes, it is a really interesting evolution on the concept,” Berg says helping fill in the gaps of my own understanding.

 

“If you think about our field service strategy it was about getting data from the machine and the asset. Basically, letting the machine become the sensor rather than the customer being the sensor when something goes wrong.”

“That is still very much part of the on-going strategy, what APM adds to the process is a significant amount of additional intelligence around preventative maintenance.”

“The concept has always been about avoiding unplanned downtime and in terms of providing preventative maintenance there is a rapid evolution going on where we are moving quickly from interval based maintenance i.e. perform this maintenance every 6 months or a year, to condition based maintenance - which is perform maintenance every 1,000 cycles of a machine. But now with APM combined with IoT we basically have data from the machine itself, embedded into a sophisticated analytics engine in APM, combined with the finance and the strategy to optimally operate an asset and to do so in the most profitable manner.”

“So what APM adds, fed by this IoT data, is basically recommendations and intelligence of when maintenance should most optimally be performed. For example right now, or next week or next month. It can even do things like suggest the maintenance shouldn’t even happen at all. It may be that the best strategy and profit outcome on a particular asset would be to let it burn out its useful life - it might be more profitable to replace it than it is to make the repair. And if so that is what APM will suggest.”:

“It is an evolution in the concepts around maintenance. From interval, to conditioned and now to predictive analytic schedules. And when combined with the power we already had in ServiceMax, which was taking this IoT feed from the machine and suggesting when service can happen, it becomes a very powerful tool indeed.”

One thing that is of particular interest with APM is how the solution can work from fleet level through to sub-component level.

“We are definitely down at the component level now if we look at the areas such as the Power industry or Oil and Gas - vibration sensing, the speed things are rotating at, the temperature of bearings and how do those factors impact performance behaviours or how do they impact output or throughput of a machine. It could be the volume of fluid passing through something, It could be on a grander scale, the level of power production from a thermo-nuclear plant that is converting fossil fuels to electrical output,“ Berg explains as we discuss the importance of being able to see the health of various levels of both components and assets.

“But, the important factor with APM is that it can also can apply it to systems of assets as well. You could have a situation where you have multiple assets, each with sub-components and you want them all performing hopefully in unison - or at least in tandem, to produce an overall outcome so you can ‘zero’ in on where maintenance should occur to optimise the output. It could be on one asset , it could be on one sub-component of an asset.”

 

Essentially this is perhaps where APM can deliver the most value, in helping make the vast streams of data from assets connected to the IoT, truly useful.

As Berg alludes to when he comments: “I think one of the big struggles people always have with IoT is that they basically drown in the data. You’re being sent all these readings but how do you make sense of it?”

“What APM does is make sense of that data in light of maximising the uptime and the output of an asset and its components. It’s that added layer of intelligence that IoT on it’s own doesn’t have. It’s making that data useful essentially,” he adds.

Of course, one of the big benefits of FSM tools such as ServiceMax is allowing the service organisation to empower their field service technicians by putting such rich layers of customer information, ultimately being able to put the core intelligence of the organisation itself, into the hands of the field service technician.

Given that the integration between ServiceMax and APM is geared towards increasing the efficiency of preventative maintenance strategies, I was intrigued to see how much of this intelligence would be filtered down to the engineer. For example if he was on site fixing asset A would he be able to see that in fact Asset B was due to for maintenance in the next few weeks and therefore potentially undertake the second maintenance job whilst on site to save an unnecessary future truck role?

“I think that layer of insight is there on two different levels,” Berg responds when I put this point across to him.

“From a back office standpoint certainly, APM will suggest maintenance should occur on machine number one based on a threshold that’s been reached, but more importantly than that, it will also look at the fleet of the assets and see anything else that is approaching that same level of wear and tear (or that same maintenance condition) and alongside what we’ve already created within Connected Field Service - where we are pushing that machine data down to the technician, we can use our install base management capabilities to identify the fleet of assets that are at his location and highlight those near the warning condition or those that would approach it soon.”

“This data can then be fed to the technician who can make recommendations whilst on-site with the customer to say ‘well I’m here for pump number six but whilst I’m here I can see that also pumps number three and four are in a similar condition so I’ll go ahead and fix those in advance, or perhaps even explain to the customer “well, this one I’m going to leave run as it is for a bit longer because the recommendation is to push this a little bit further before we do the maintenance activity, to allow you to get maximum output.”

 

One interesting if indirect result of giving the technician this level of insight is that by being able to relay such information to the customer, he can also reestablishes the importance of the maintenance visit in the first place.

In today’s markets as we see companies moving to outcome-based services and preventative maintenance strategies in ever greater numbers, there is the new challenge of the workload of the technician perhaps going unseen by the client. In the old traditional break-fix model there was the theatre of the service engineer being the superhero, coming in to rescue the poor Ops Manager who has had to put an exasperated call in to say - “Hey! I can’t produce anything!’ Then the engineer comes in, meets his SLA and makes everything work again. Going above and beyond and generally being a hero.

In today’s world of outcome-based contracts there is a challenge to make sure you are effectively communicating the work your technicians have done for the client, to demonstrate the value your service provides them.

With the tools Berg is discussing, it seems there is the potential to almost move the engineer into something more of a consultative role. Someone who can say I’ve come to undertake the maintenance on ‘a,b,c’ but I can also advise you that ‘x,y,z’ could be also be done today and this will improve your output by ‘n’.

“I think there is a great opportunity here to improve the lifestyle of the technician themselves,” Berg comments as we bring the conversation onto this point. “Sure, there is the heroic experience of saving the day but that is also a high anxiety moment as well. When we consider the psychology of the technician, the challenging bit is to go out there by yourself, with no one to help you, then when encounter a really bad situation hopefully you’re the one that can resolve it. It can be a life with a lot of tension, which is sometimes overlooked.”

“Alongside that I also think that customer expectations are shifting as well,” he continues.

“There is the classic metaphor that people don’t want to go out and buy a drill they want to buy a hole and the concept is largely about outcomes. I think more and more customers of the machinery don’t really care so much about the details of the machine. They don’t want it to break down, they want it to produce what they bought it for, and they want to extend and maximise its life so that it produces more of what they bought it for.”

 

“So now you put a technician in the position to not only be the hero by just fixing something retrospectively, but to be the hero that proactively maximises the customers output and production from an asset they acquired? I think that is not only going above and beyond but it is catering to more of the outcome-based mentality that companies now want to consume output rather than buy a set amount of machines.”

So it seems at least on the technology side of things there is already progress being made between the two organisations coming together, although it could be argued that this is the result of the two separate existing technologies just being plugged into each other.

The real fruits of the union are likely some way off, although how far could largely depend on how quickly and easily the ServiceMax team are integrating into the wider GE group. I mentioned Yarnold’s views at the time of the acquisition about the two organisations having a shared understanding and a similar DNA in terms of the view they both held of what ‘good service looks like’ - as well as the importance of service within industry as we move further into the twenty first century.

And of course, I was keen to see if that was holding out now the ServiceMax is fully embedded within GE.

“I think it is and I think it was very prescient of Dave to be highlighting that right at the start of us coming together,” Berg replies.

“There are several things here. Firstly, we’ve always served markets that I would largely classify as OEM manufacturers or industrial companies and certainly these are the companies and sectors that GE is already working amongst. As a direct result of that we are already seeing great energy and sales momentum by our alignment with GE business units around Oil and Gas, Energy, Power - as these were the industries we would have sold to anyway.”

[quote]I think with GE being largely a company and culture built around engineers, we have both shared an asset centric perspective on service.

“Secondly, I think with GE being largely a company and culture built around engineers, we have both shared an asset centric perspective on service. For us, it was always about a system of assets in the field that customers wanted outputs and outcomes from - we were never about being your typical field service, scheduling only solution. For us it was an awareness of the people, the schedule and the asset. And certainly GE‘s culture is grounded in engineering, machinery and assets - so we are on the same page.”

 

“The third thing that I think is interesting is that GE was one of our largest customers and if you look at GE as a company, I like to call it the largest field service company in the world. There are tens of thousands of technicians, and the vast majority of revenue at GE is derived from service contracts - so there is definitely a kindred spirit and a kind of alignment with GE because of these vertical focussed, asset centric mentalities. Plus then there is a shared passion for service which is such a big contributor to the GE business.”

Of course one would think that as one of their biggest clients, having the GE team on hand to add weight to their cause could also add some heavy kudos and gravitas at times that they need to call in the big guns.

In particular GE have been early adopters in the move towards outcome based models in a number of verticals. Is that helping the ServiceMax team when they go into conversations with prospective customers?

Of course, the move to outcome-based services is heavily tied to the use of the cutting-edge technology that ServiceMax provide, so it is in their vested interest to be avid promoters of such shifts in thinking.

But the reality is a move to outcome-based contracts can be a hard sell for service businesses to their own clients, whilst many still may need some convincing that a shift away from recurring spare parts revenue within the break-fix model is indeed the future of the Aftermarket sector.

However, having the back story of now being part of GE, who have already taken that path and who are able to say we believe this is the future because we’ve already gone out and done it in our own business, that must surely be a powerful tool when it comes to talking to those companies who are more reticent to make such a switch?

“This is actually one of the core themes at Minds and Machines,” Berg replies.

“The concept our chairman will be talking about is how our digital transformation at GE from an industrial company to a digital industrial company is really focussed on three different markets.”

“Firstly there is GE for GE, which is how we help ourselves go through this digital transformation towards outcome-centric models. Secondly, we have GE for Customers and this is looking at the business units which GE serves and the companies they sell to, and we want to help and advise them - sharing what we’ve learnt from our own experiences with them.”

“The final one is called GE for the World. What has been interesting with this and what has truly surprised me is the amount of times we’ve been speaking to companies who are traditionally staunch GE competitors, but they are curious about what we are doing.”

“The whole idea behind this is to share the experience GE has had broadly around digital transformation of industrial businesses.”

 

Given this experience and the broad touch-points Berg has access to I was curious to find out what his take on the shift to servitization was. Is it becoming as prevalent as it seems from behind my admittedly sometimes magnified field service lens? Indeed, are there many companies still in need of persuading that outcome-centric models are the best way forward, or has acceptance of the need to move towards servitized business models become widespread?

“It is interesting because I’ve yet to see much real push back on the concept,” Berg comments. “It is a as if everyone has come to accept that an outcome based model, i.e. a Service as a Product model - is the essential thing to do.

I think that value GE plays in those conversations is more geared towards telling these companies what is the first step to take on a journey like that. Sharing what our experiences have been, how we’ve done it and what our accomplishments have been.”

“It’s really interesting that in practical selling situations to potential customers one of the most impactful people we can bring into a scenario like that is someone like a CIO form one of the GE business who has made these investments, made it happen and can show you the results. I think the door is open but I think people are perhaps a bit confused as to how and where to start and that’s what GE can help them. We can outline how to start their journey and how best to stay on the right path.”

As we come to the end of our time together, a few things have become apparent throughout our conversation.

The first is that the technology seems to be a natural fit and combining ServiceMax with APM is a natural evolution, that is set to yield impressive results for those that are in place to put the two together.

The second is that Yarnold’s earlier prediction about their being a shared vision across the two organisations seems to be bang on target. As Berg explains their future plans to me there is a real sense not just of unity between the two organisations but also of continuity in terms of the original ServiceMax core beliefs that were so fundamental to their success.

However, one other thing that was apparent was the number of times Berg used the word industrial. This of course makes sense when we factor GE into the conversational mix - but one of the things that ServiceMax developed a strong reputation for pre GE, was for that every Sony, GE or Scheider they worked with - there were also the companies like Service2 - i.e. small local companies with less than twenty engineers.

Will these SMEs still be of relevance to ServiceMax or will they be forgotten as ServiceMax under GE goes hunting for a place amongst the industries enterprise elite?

 

“I think the conversation has changed a little bit for smaller companies but in a positive way,” Berg responds. “The GE brand credibility is really helping us send a positive message to smaller companies. We continue to serve all those markets and in fact one thing you will see from us is an expansion in the market at this level.”

“We see three separate groups of customers, one is the OEM manufacturers which has been a sweet spot for our business, people that make complex machines, such as medical devices or heavy machinery.”

“One expansion will be in what we call asset operators so you could think of in that realm are the power producers. Electric and Oil and Renewables who basically don’t make anything, they buy a whole bunch of assets and then produce something. Then the third group would be one that we’ve always focussed on, namely the service providers and that’s where you get a lot of these smaller companies.”

“The really interesting thing is if you take any one of the seven or eight business units in GE and think of it as an ecosystem of something like Oil and Gas then certainly you could be talking to someone like Shell or BP doing oil exploration and production but as soon as you take a step back from the centre of that industry, that’s where those relatively smaller providers are really important. What’s really interesting is that they are also really important to the GE verticals as well because there is an ecosystem of those service providers working with a GE - or maybe competing with a GE but supplementing the value in that market. So we will continue to focus on those types of companies and actually a lot of the companies we’ve historically sold to in those spaces are aligned to the GE ecosystems anyway.”

“We really think that effective field service execution is a combination of people, assets and outcomes,” Berg offers in closing.

“I think that our integration into the digital portfolio combined with the GE business experience puts us in an incredibly unique position to not only help our clients manage their people but also to help manage their install base of assets and make this shift to this outcome-based mentality around preventative maintenance a less painful and more fruitful path to follow.”

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Our world is changing.

Field service technology is evolving at breakneck speed. The role of field service within the wider business has grown from cost centre, to profit centre and is now rapidly shifting towards being the primary revenue source as companies leave behind them traditional break-fix models and adopt outcome based service solutions. SLAs are becoming replaced with guarantees of uptime. An asset in the field can request it's own maintenance call in advance of failure. Expertise no longer needs to be flown in it can now simply be dialled in.

So what does all of this rapid change within the field service sector mean for the field service engineer of the future? What exactly will the field service engineer of 2022 look like and how will he differ from the field service engineer we are accustomed to today?

However, with an ageing workforce crisis looming large as the existing last of the baby boomer workforce reaches retirement, it is perhaps one of the most important question field service organisations must address as they look to replace their leaving 'boomer workforce with a millennial workforce that have wildly different attributes, needs and skill sets.

 

With this in mind Field Service News is working in partnership with field service management provider ServiceMax from GE Digital on a research project that is seeking to establish what field service professionals believe the requirements will be for field service engineers and technicians in the not too distant future.

Now as we reach a half way point through the research we reflect on the interim findings and at the same time to turn to any field service professionals who have yet to take part within our survey and ask you to help us build an even more complete picture of what the field service technician of 2022 will look like?

Findings so far:

1. The predicted ageing workforce crisis amongst field service organisations is very much real

When we hear talk of an 'impending crisis' it may be only natural to think that there is a healthy dose of hyperbole within the headlines. However, in this instance an ageing workforce is certainly a looming problem and unless companies address this issue now it could indeed be a crisis for some.

Indeed, 81% of field service professionals that have participated in our research so far have indicated that the for their organisation an ageing workforce will pose some threat to their service delivery across the next 5 years.

Within that 81% of respondents 13% feel that the threat their company faces is severe stating that it is a 'major issue we are facing that could put our field service operations at risk.' Meanwhile, 45% of those who stated an ageing workforce was a concern stated that the risk was significant and stating that 'unless we address the issue quickly we are likely to face major disruption to our field service delivery.'

The same amount of respondents also stated that they see it [an ageing workforce] as 'a possible issue that we need to be aware of', whilst just 17% of field service professionals that have responded to the survey so far believe that the risk to their business is limited.

2. People skills are becoming increasingly more important in field service technician recruitment

The old cliche of a field service engineer being a reclusive creature often found in dark corners more happy in the company of his tool kit than with those dreaded customers who always just seemed to get in the way of him doing his job are now very much a thing of the past.

Indeed, over the last decade we have seen the field service engineer evolve from the character mentioned above into a role which regularly includes additional elements within the job description such as brand ambassador and trusted advisor. And as we move towards an ever more digital era - where often the field service engineer may be the only face to face contact your customers may have with your organisation - especially in business to consumer industries.

 

So it is perhaps little surprise that we see that 54% of respondents to our survey stated that they 'absolutely place people skills at the top of their list when recruiting new FSEs'.

In fact, alongside those that put people skills at the top of their list of skills for new techs a further 43% stated that they 'certainly pay more attention to people skills today than they would have done a few years ago,' whilst just a nominal 3% of respondents replied that 'whilst people skills are nice to have, technical skills are the major facet they are looking for in new field service engineers."

3. There can be little better for training new field service engineers that the experience of older engineers

Indeed, it seems that this is the accepted wisdom amongst many field service organisations with 59% of our respondents confirming they have programs in place for older technicians to support younger technicians.

Further to this an additional 16% of our respondents stated that they are currently devising such a strategy whilst just under a quarter of companies stated that they didn't have anything in place to harvest the knowledge of their older technicians before they walk out of the door.

 

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How does this compare with your own experience?  If you haven't done so already please do take just a few minutes to complete our research survey.

PLUS! not only will you help us build an even clearer picture of what the key thinking is around what the field service engineer of 2022 will look like, but thanks to our partner on this project ServiceMax by GE Digital, we have a number of prizes to give away including three £50 Amazon vouchers plus a number of free tickets to Maximize Europe conference (worth $215 each!) - but you can only find the entry for the prize draw at the end of the survey so if you want to win - you better complete the survey ASAP!*

 

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Click here to go to the survey now 

 

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*Prize draw available only to field service practitioners and dependent entry is dependent on consenting to T&Cs

With Article 50 triggered and Brexit negotiations underway Spencer Earp, Senior Vice President EMEA & APAC for ServiceMax, a GE company asks just how important can field services be for UK PLC...

The last place you would expect to find a microcosm of Britain’s proposed industrial strategy is in a cereal bowl. As iconic breakfast brand Weetabix announced plans to invest £30m to expand its UK manufacturing facilities, its Chinese owner Bright Foods was considering a sale and there are plenty of suitors.

Weetabix is apparently bucking a breakfast trend, growing its market share and creating jobs but it is far from Brexit-proof. Price hikes it says are expected.

Just a week earlier UK Prime Minister Theresa May outlined her proposals for a new industrial strategy for Britain and Weetabix is exhibiting the sort of dynamism May hopes to re-create.

But while it may serve as a valuable example in developing the right conditions for growth, it may prove an exception to the rule.

While UK GDP figures put in a strong finish to a turbulent 2016, the outlook remains uncertain.

This year will be dominated by trading negotiations and a fluctuating pound and we are expected to feel the start of a pricing pinch. The UK, says Business and Energy Secretary Greg Clark at the launch of the Government’s green paper, “must close the gap between the most productive companies, industries, places and people and the rest; and ensure we are one of the most competitive places in the world to start and grow a business.”

 

Easier said than done. The focus will no doubt be on streamlining manufacturing processes, minimising costs, encouraging inward investment and using post-Brexit freedoms to use government subsidies to promote growth, such as targeted tax incentives and increased research and development grants. All good stuff but what can businesses do themselves?

How can the government proposals deliver ideas and strategies that touch all aspects of the supply chain, for example? How can a new business plan for Britain remove cost from the company and yet improve its attractiveness and productivity?

The analogies with the field service industry are startling. Field service has often suffered from under investment or derision. Businesses have regarded service as a cost to the business but this is changing.

New technology is turning everything on its head, with service increasingly seen as a critical business function. Business strategies are evolving along service lines, recognising that affordable sensors, automation and increased mobility are having a profound impact on how products are sold and of course supported. Brand reputations are rising or falling on the back of it and above all service led companies are increasingly profitable and efficient.

A recent report from Vanson Bourne revealed that 86% of execs surveyed said they expect field service to become a primary revenue driver in the next two years. Results from the Technology Services Industry Association (TSIA) Field Service benchmarking study also found that businesses “saw an improvement in renewal rates of up to seven points when field service engineers took the initiative to drive adoption versus engaging only in break/fix maintenance activities.”

In her speech to the World Economic Forum at Davos in January, Theresa May talked about facing up to change, redrawing the international image and making Britain truly internationalist.

The industrial strategy is part of this new thinking, but turning words into tangible actions will demand a cultural shift within organisations if the manufacturing sector is to be competitive and profitable.

 

It demands an automated, end-to-end field service management plan, one that empowers field service professionals in the business and recognises the value service can have to an industrial strategy.

Interestingly, GE drives more than 70 percent of its profits from the service business. It’s a strategy that works. Mobility and smart device technology are at the heart of this and something that will only accelerate rapidly with the advent of 5G networks.

In its Emerging Trends in Mobility report, the TSIA claimed that the rapid development of video conferencing, mobile knowledge management applications and wearables is rapidly creating an even greater positive impact on the service industry and business profitability.

It’s like a perfect storm and one that could and should carry UK manufacturing forward. It is this understanding of how the latest cloud-based technologies can underpin an industrial strategy that can help to drive differentiation and efficiency.

Not all manufacturers can do a Weetabix, but they can embrace ‘servitisation’. The industrialists and thinkers of Whitehall would do well to take note.

 

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