Research from ServiceMax reveals trends in shift to outcome-based services

Sep 11, 2018 • FeaturesFuture of FIeld Servicemobile workforce managementOutcome based servicesresearchResearchfield servicefield service managementGE DigitalService ManagementservicemaxServitizationVanson Bourne

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

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

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

In addition, customers only pay per outcome.

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

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

ServiceMax, a GE Digital company, has recently commissioned independent market research specialist Vanson Bourne to explore the trends around this topic and have recently published an executive summary on the findings of this research which is available to fieldservicenews.com subscribers.
 

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Summary of Key Findings:

 

  • Surveyed IT and field service decision makers would only categorise 19% of their organisation’s current business model as outcome-based, on average.
  • The vast majority (95%) of respondents, whose organisation does not currently operate a 100% outcome-based business model, state that their organisation is currently working towards moving some or all of its products and/or services towards such a model, or is planning to in the future.
  • Just under nine in ten (89%) respondents believe that a move to more outcome-based business models will
    enhance the way that their industry operates.
  • Over eight in ten (82%) agree that servitisation will make their company more competitive than ever before.
  • Only 50% of respondents report that they or other service leaders in their organisation completely trust the asset service data that they have access to.
  • A minority (22%) of respondents believe that the IT and field service functions in their organisation work together completely effectively to achieve the goal of better data utilisation.
  • Over three quarters (77%) of respondents agree that the pace of data intelligence digitally collected by their organisation’s assets is outpacing the skills of those responsible for using the data.
  • More than four in ten (43%) of those surveyed assert that the process of collecting and entering asset service data in their organisation needs to be automated to a huge extent, or that this is completely required.
  • The majority (84%) of respondents believe that the successful utilisation of asset data can positively impact all areas of the business.
  • On average, respondents believe that their organisation’s revenue will increase by 14.15% and their operational costs will decrease by 12.03% over the next 12 months as a result of automatically collecting, aggregating and analysing asset service data.
  • For every $1 invested in ensuring that they can automatically collect, aggregate and analyse asset service data, respondents anticipate that their organisation would expect a return of $4.44, on average.
  • Approaching nine in ten (86%) respondents agree that the more asset service data is used, the more value it brings to the organisation.

 


Want to know more?!  There is a white paper on this topic available to fieldservicenews.com subscribers. Click the button below to get fully up to date now! 


Sponsored by:
 Access Paper
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Data usage note: By accessing this content you consent to the contact details submitted when you registered as a subscriber to fieldservicenews.com to be shared with the listed sponsor of this premium content who may contact you for legitimate business reasons to discuss the content of this content.   

 
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