ARCHIVE FOR THE ‘data’ CATEGORY
Apr 14, 2019 • Features • Management • Data • Jan Van Veen • Monetizing Service • moreMomentum • Products as a Service • Customer Focus
Central question
Many manufacturers experience pressure on growth, revenue and margins. Their products and services are being commoditised. Competition from lower cost alternatives are arising. On the other hand, there are huge opportunities with new technologies, value propositions and business models.
One of the important trends is that value propositions and offerings become more data-driven and more service-oriented, which go hand in hand.
Besides predictive maintenance, most of the value from data is related to how clients use the equipment or products and to their operations and processes. Helping clients improve on this by nature is a service.
However, many manufacturers are product-driven businesses which do not fully appreciate the value that (advanced) services have for their customers and their own business.
So, one of the central questions is: How to Monetise Services and Data to Grow in a Disruptive World? The capability to monetising service and data is mission critical for sustainable performance and existence of manufacturers.
In a series of articles, we cover four critical steps that make the difference between success and failure in monetising services and data:
• Solve bigger customer problems;
• Articulate the value;
• Build momentum with clients to adopt;
• Build internal momentum.
Developing new data-driven solutions and services is all about extending the existing business model, which leads to different challenges than many other initiatives and programs in a business. Recognising this in advance will help understand the challenges and best strategies.
In the previous articles of this series, I have described critical success factors for monetising service and data, such as Solve Bigger Problems,Better Articulate Value and Remove Obstacles for Clients to Adopt. In the end, this all has to be done by people and teams in your organization.
Common mistakes
In this article I will describe common mistakes that many companies make, which holds them back in having fluid and energising change, and to move beyond business-as-usual in their endeavours to monetise service and data.
No North-Star
Many companies, including manufacturers, do not have a clear picture of where the industry is heading and where their business is heading. It is unclear for their employees what needs to be developed and why.
More specific, for many employees it is not clear why the new service and data-driven solutions are that valuable to clients, how it would fit in the overall core business and why it should be paid for by clients. Often, the indicated direction even suggests the opposite and may give room to the logic that value added services and datadriven solutions are (free) features to support the product sales.
Just imagine how a hypothetical mission statement “… being the world’s leading manufacturer of construction equipment and engines” would help develop and monetise advanced services and data-driven solutions.
Blinkered
People in manufacturing are often biased towards products, equipment and technology. They have a narrow view on:
• Customer problems beyond the requirements for the products and equipment;
• How other actors in the industry are developing with advanced data capabilities, which could become competition to the current position of a manufacturer;
• How new technology can be applied to develop new value propositions, solutions and operating models.
This will affect how product managers, marketing and innovation will develop new services and data-driven solutions. Too often, we see that the services and solutions do not always solve a customer problem and hardly differentiate from services and solutions competitors are offering as well.
It will also affect how their colleagues in the operations (sales and delivery) understand and engage, as there is no compelling context to understand the importance of the new services and solutions, let alone be engaged.
Top-down P&L thinking
Too often, we see that developing and launching innovations, such as new advanced services and data-driven solutions, stagnate because of the decision-making habits in an organisation. Typically, we see one or more of the following:
The strategic intent from senior leadership is unclear, hardly based on a well-developed shared concern, not giving a clear path on what services and solutions to develop, nor on what the strategic priorities and objectives are, to be successful. So, employees are not really enticed to take action and therefore no change.
The strategies and plans are more short-term which emphasise short term financial objectives, leading to two different scenarios:
Financial objectives are not articulating the need for services and data-driven solutions, nor specifying which portion of these objectives should come from services and data-driven solutions. Often, employees are actually motivated to stay away from developing and launching the new services and data-driven solutions.
Or, in case the financial objectives also assign financial objectives coming from services and data-driven solutions, there is a lack of description of qualitative objectives and strategic priorities on how to arrive at those financial goals. The result is often a lack of initiatives and progress, or lack of alignment and results.
Top-down strategies from senior leadership are so specific and instructive that these actually dismiss other employees taking ownership of the plans, and/or adjusting plans and local strategies where needed.
Paralysis by control
Top-down control mechanisms from the last few decades are a huge obstacle for fluid and energising change in an organisation and therefore hinder the initiatives like monetising services and data. More specifically, we often see the following patterns;
Internal conflict of interest in the product sales teams, because they are often incentivised on sales volume.
It does not make sense for them to sell complicated service contracts. It hardly affects their commission, consumes a lot of time and may even put their product sales deals at risk. Instead, it is more beneficial to please their clients by offering discounted services.
In case there is a separate service sales team, for the same reason, there are often internal arguments on who owns the client and what is the best plan forward with each client. In the worst case, this even leads to having different faces towards the clients, leaving them confused and with a bad customer experience.
Control mechanisms that are too strict create an unsafe environment in which employees show defensive and risk-avoiding behaviour. Instead of trying, learning and being successful in monetising new services and data-driven solutions, they instead become complacent and resistant.
Typical signs are pointing fingers to other teams to take action, declaring that the new services and solutions are not the core business, that customers don’t want to pay and referring to other companies who have tried and failed.
Some solutions
Many things come into play when increasing momentum for monetizing (new) services and data, and preventing existence of too many obstacles and resistance. In general, the more adaptive and fluid change in a business, the easier a specific innovation on service and data.
We have seen that leading manufacturers have adopted 4 winning habits which sets them apart. These winning habits define how both operation and innovation is lead. In the next paragraphs I will describe the 4 winning habits in relation to monetising services and data.
"People in manufacturing are often biased towards products, equipment and technology..."
Direction
Leading companies have a transformative vision and mission on where the business is heading, what needs to change and develop, and why this is important considering the changes in the industry. This is a quite a holistic picture in which all stakeholders and entities in the business can relate and get direction on how to develop themselves, their teams, their department and their business unit.
It provides an outside-in picture on how the business is and will be relevant to a certain industry and customers. It explicitly points out how the business will add value to clients and that this requires certain technology, (data-driven) solutions and services.
Now imagine how the following mission statement will drive the development and implementation of new services and data-driven solutions: “Our purpose is to enable healthcare providers to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery and improving patient experience, all enabled by digitalizing healthcare.”
Discovery
Here I want to focus on two phases on innovating your services and datadriven solutions: the development phase (including ideation, selection and design) and the implementation phase
For design purpose
In general, the envisioned services and data-driven solutions differ significantly from current business logic, mindset and operations in your business. Even though anyone in the organisation could raise great ideas, it is crucial that the development of the new services and solutions are done by dedicated teams with the right expertise and focus.
They need to ensure they are open-minded and unbounded by current (and old) business logic and pathways. In terms of discovery, this means they should:
Talk with other stakeholders in client organisations (rather than the ones your organisation normally speaks with) - for example, the CFO, CEO, VP, Innovation, commercial leaders, etc. Build a new expert-network outside the organisation - which is outside the current network of partners, suppliers and clients - including the academic experts and consultants in areas you usually have no relationships with and talk about topics other than current technology, products and service, and more about major trends, visions of the future industry,key challenges and strategies of different actors in your and adjacent industries.
This will not only help to obtain more ideas for future success, it will also help to change perspectives and business logic within the innovation teams and the rest of the organisation, by sharing these insights.
For implementation purpose
Once the new solutions and services have been designed and developed to a scalable offering, it probably needs to be embedded in the existing organisation. Now, the risks of resistance or complacency may come into play.
The more developed the mindsets and habits are on “digital” and change, the more fluid the implementation and change will be. This can be promoted massively by strong Discovery habits: Involving key players in the operating organisation, well in advance of the implementation, into the initiatives for launching new services and datadriven solutions - for example, by having a frequent dialogue on shared concern and discussing the alternatives to solve these concerns. This can be done by frequent conversations or including them in the extended innovation team.
Having everyone involved in discovery activities that do not require too much expertise and dedication, for example, by having colleagues; Have broader conversations in their day-to-day conversations with clients, suppliers and partners. You can provide them with topics and questions to help open the conversations
Joining events with customers where you discuss trends, visions, needs and how they see your added value. Join conferences within your own industry and even other industries and sharing new insights and learning points from the expert teams, painting a picture of what is going on in the outside world, how this may impact your business and how this will/could be addressed.
Decision making
In line with the mission, vision and direction leadership of leading manufacturers, have a clear strategic intent on:
Result objectives - for example, overall growth aspirations that new services and data-driven solutions are crucial and how much business is expected to come from these new services and solutions. Strategic objectives on which offerings and capabilities need to be developed.
Next, they have a clear (top-down) strategy which articulates crucial choices on how to achieve these objectives in a few phases. This should provide a common roadmap on which offerings to develop, how to sell them, to whom and by whom, how to organise marketing, sales and delivery, and which obstacles to overcome.
This strategy should address all stakeholders (including R&D, marketing, product-sales, service sales and service delivery) who have direct influence on implementation and success.
With this top-down strategy, still, a lot is left open on how to achieve the objectives. Local teams are empowered to develop their local roadmap and strategy, and to take full ownership of the local development, learning, capability development and execution. This will allow them to mitigate local strengths, weaknesses, opportunities, threats and market circumstances.
Dialogue
With a constructive and forward dialogue between individuals, teams and departments, issues are solved in a fundamental and sustainable manner, hence building capabilities to perform.
For monetising service and data, this means that: Ideally, services and data-driven solutions are being sold at point of sale (when equipment is sold) - maybe not the full package, but the entry level offering which will be the first step to the next level mature offerings. Commission structure of sales people needs to be designed in such a way that it promotes the right focus and behaviour.
I have seen quite a few examples where equipment sales people were quite successful in selling service contracts once the commission they would receive was tied to the sale of a service contract.
Sales people who sell advanced services and data-driven solutions need to have specific skills and background, which are not necessarily the same as skills required for selling the products and maintenance services. Most stateof-the art sales techniques such as Solution Selling, Challenger Selling or Value Selling, assume a fluid and educated dialogue on related business domains.
Often, these conversations should happen with other stakeholders at the client organisation, maybe at higher seniority levels. The different teams need to have the confidence and safe environment to learn and develop these skills and knowledge, and become fluent in these conversations and sales approaches.
Different teams in your organisation need to be “in the same boat” without conflicts of interest. We currently see more and more companies aligning targets and incentive schemes, in which common and shared objectives prevail above individual targets.
Full transparency in key performance indicators on progress and results is required, to have all stakeholders have the necessary insights to be able to take ownership and accountability and intervene when/where needed.
Benefits
The leading manufacturers, ahead of the game, have built momentum for continuous and easy change from the inside, moving beyond “business-asusual”. Their teams are passionate and eager to perform, learn and pursue opportunities. Instead of resisting new ways of thinking about customer challenges, customer value and their business, they focus on customers and pursue opportunities to increase value.
Monetising services and data has become a logical part of their overall vision and strategy. They are better in solving bigger customer problems, better at articulating the value for customers and in removing obstacles for their clients to adopt the new solutions. As a result, they better differentiate themselves – in the eyes of their customers - from their competitors. They perform better and have more resources to keep innovating their business and hence grow in our disruptive world.
Boost your monetisation If you want to accelerate the monetisation of your (new) services and datadriven solutions, I would like to recommend:
• Review your business alongside common mistakes and suggested solutions, and add the discrepancies to your strategy;
• Download the scorecard How to Monetise Services and Data here;
• Book a Discovery Call with Jan van Veen;
• Join our upcoming Impulse Sessions on How to Monetise Service and Data. These are full day interactive meetings with like-minded peers during which we will exchange experience, insights and challenges.
Essence It’s not about making money from new services and data-driven solutions; it’s about being highly relevant and valuable to clients in a sustainable manner and empowering your people to do the same.
It goes without saying that if you deliver value for money, you also get money for value.
Jan Van Veen is Managing Director at MoreMomentum.
Mar 20, 2019 • Augmented Reality • connectivity • Data • Future of FIeld Service • Workforce • Bill Pollock • Cloud services • FieldAware • IoT • skills • Strategies for GrowthSM • The Big Discussion • Marc Tatarsky • SimPRO • Waste Management
Concluding our series our experts, Bill Pollock, Strategies for Growth, Marc Tatarsky at FieldAware, and Richard Pratley from SimPRO, identify potential areas of concern for service companies to look out for in 2019.
Concluding our series our experts, Bill Pollock, Strategies for Growth, Marc Tatarsky at FieldAware, and Richard Pratley from SimPRO, identify potential areas of concern for service companies to look out for in 2019.
What is the biggest area of concern that field service companies should address in the next 12 months?
BILL POLLOCK, PRESIDENT, STRATEGIES FOR GROWTH
The biggest area of concern for field service companies in the next 12 months will be, if they’re already somewhat behind the technology curve (or with respect to the competitive landscape), what do they need to do today to ensure that they will not fall further behind? And, it’s not just a matter of technology either; many FSOs will need to alter their corporate philosophy and mentality as well.
Technology goes hand-in-hand with the personnel that use it, so attention must also be given to how the organisation goes about replacing, and/or supplementing, its existing field force with new hires or the use of outside, third-party “feet on the street” support.
The services world is evolving so quickly, that any missteps along the way can be devastating – so every step, every move counts.
There will also be no time for any intra-mural infighting – only for collaboration and inter-departmental cooperation. Equipment will keep on breaking, and end-of-lifecycles are getting increasingly shorter. As such, there will always be the need for services organisations to deliver their support! However, only those that have the technological and corporate wherewithal to continually improve the way in which they deliver their services will rise to the top of the competitive order – and stay there!
MARC TATARSKY, SVP MARKETING, FIELD AWARE
The phrase ‘doing more with less’ is common in field service and that can be in relation to numerous resources and assets.
The workforce is a key element in this equation and can preoccupy a great deal of management time. There are concerns over an aging workforce in field service, a high turnover of workers and a shrinking pool of talent as demand increases.
Technology plays a critical role in any succession and resource planning. This may be empowering the workforce with automation to streamline operations, bring in best practice and increase productivity without the need to increase numbers. Using technology differently or embracing emerging technologies to enable remote expert capabilities, so a more experienced worker assists others.
Also attracting new workers, especially millennials, for whom, the latest technology is a big part of everyday life. The technology has to be right for both worker and the organisation to get maximum benefit
RICHARD PRATLEY, MANAGING DIRECTOR UK, SIMPRO
Technology is changing at a rapid pace. The technology we use today is very different from that we used five years ago so businesses will always have the challenge of how they can ensure the systems and technology they use are still current. Taking a long term view of the business requirement is vital.
Many businesses consider an off-the-shelf solution won’t fit the unique needs of the business. But think again! Overtly customised solutions can lead to restrictions with software updates and integrations with other systems in the future - not to mention a great deal of ongoing expense and time that should be spent on running the business.
Cloud-based software providers frequently release new updates (that are included in the licence fee) to help businesses stay ahead of tech trends. By ensuring the systems you use now are fit for-purpose, you’ll be able to keep up with future technological developments.
You can read the first instalment of The Big Discussion here, the second here and the third here.
Mar 11, 2019 • Augmented Reality • connectivity • Data • Future of FIeld Service • Workforce • Bill Pollock • FieldAware • IoT • skills • Strategies for GrowthSM • The Big Discussion • Marc Tatarsky • SimPRO • Waste Management
In the third of our four-part series, our industry experts Bill Pollock, Strategies for Growth, Marc Tatarsky at FieldAware, and Richard Pratley from SimPRO, identify key areas of focus for field service managers in 2019.
In the third of our four-part series, our industry experts Bill Pollock, Strategies for Growth, Marc Tatarsky at FieldAware, and Richard Pratley from SimPRO, identify key areas of focus for field service managers in 2019.
What do you think should be the key areas of focus for field service managers across the next twelve months?
BILL POLLOCK, PRESIDENT, STRATEGIES FOR GROWTH
The next most important areas of focus for field service managers in the coming 12 months will likely be among the following three items:
(1) embracing the “new” technologies to support an expanded and enhanced capability to deliver their respective service offerings. Artificial Intelligence (AI) and Machine Learning have been around for more than 50 years, but are still relatively new to the services segment – but, it’s time to build them into your service operations!
(2) Changing the way in which you deliver – and price – your service offerings. Traditional break/fix service is essentially “dead”. Long live predictive diagnostics and predictive maintenance! Have you spoken to any chat bots lately? Well, you will!
(3) Re-engineering the way you measure performance metrics, or KPIs. MeanTime Between Failures (MTBF) and Mean-Time-to-Repair (MTTR) will not mean anything in an environment where services are being performed remotely on an ongoing basis. It will be time to replace some of the old “tried and true” KPIs with new ones that can measure systemic productivity, rather than merely individual field technician productivity. It’s time to rethink the entire service delivery process – and adjust to it!
MARC TATARSKY, SVP MARKETING, FIELD AWARE
Integration capability tops software selection criteria consistently for field service leaders. Even those who have been hesitant to integrate in the past, can now see that integration capabilities are far more advanced. Working with the right FSM software creates rapid time to value and ensures minimal risk.
Essentially the integration of FSM solutions into existing business systems of record means there is no disruption to ERP, CRM and accounting systems. Ultimately the real value is delivered through synchronized workflows, enhanced reporting and extending results beyond the current systems. Data integration yields actionable outcomes and connectivity to the wider business.
Field service has long been seen as simply a business cost, but leaders now recognise that integration can elevate their service operation, transforming it to a value-driving organisation that delivers broader business results. The evolution of field service through integration should be a focus to unlock this business value.
RICHARD PRATLEY, MANAGING DIRECTOR UK, SIMPRO
We continue to see businesses turning to software and technology to improve the efficiency of their workforce and to support customer service.
Smart connected products and IoT technology is transforming field service operations and we’ll see more adoption of this over the next twelve months. The predictive model not only reduces the cost of reactive maintenance but it addresses any issues before they become critical. For the customer, they won’t ever need to worry about needing to deal with a broken asset ever again.
We already have a number of customers running trials of our IoT technology. Not only are they winning new contracts off the back of it but it’s helping to increase the lifetime value of their existing customers.
The final part of The Big Discussion. You can read the first instalment here, and the second here.
Feb 11, 2019 • Features • Data • Future of FIeld Service • Novotek
It’s no secret that data collection is important for generating valuable insight that helps plant managers improve efficiency in industrial systems. However the importance of understanding the context of the data is less well known. George Walker...
It’s no secret that data collection is important for generating valuable insight that helps plant managers improve efficiency in industrial systems. However the importance of understanding the context of the data is less well known. George Walker from Novotek explains more.
Let’s take a hypothetical scenario. Imagine that a maintenance manager has a machine that is bending wires. These wires have to bend to a very accurate angle to properly work. However, the machine isn’t bending them properly at certain times of the day, causing the business to produce faulty goods that have to be discarded.
To fix this issue, the maintenance manager brings up the data collected by the device’s onboard software. The manager then analyses the data with a digital twinning platform. Looking at the analysis, it becomes apparent that the machine is vibrating anomalously at certain hours of the day. The manager dismantles the machine, reassembles it and even runs it in an isolated scenario, but is still unable to find the source of the problem.
"It is easy to get fixated on a single goal and to forget to take a step back for a wider view of a situation..."
In this instance, if the manager had taken a moment to take a step back and looked for context, they may have realised that the anomalous vibrations coincided with the activation period of a nearby piece of heavy machinery. There is nothing wrong with the machine in question, but its surrounding context reveals the cause of the error.
This is why context in data collection is vital.With an array of smart sensors and devices, paired with a digital twinning system like GE Digital’s Predix platform, across the whole production line, the manager could have clearly seen the correlation by viewing the data in context. Another method of achieving contextual understanding would have been by comparing the machine with other similar ones in different plants.
This shows why digital twinning is such a powerful tool. Being able to recreate an entire plant in a digital model breaks silo mentality. This allows managers to have holistic insight, which reveals issues that were previously not apparent. Whatever the issue, it is evident that context in data collection matters. Being able to analyse systems is now a reality and should be used to the full extent of its potential.
With potential to reduce waste and unnecessary expenditure, digital twins will allow stronger operations. With context being easily achievable in the modern industrial arena, it no longer needs to be a trade secret among industrial businesses. And by sharing this knowledge, more businesses can make their smart networks smarter, their operations more efficient and their production processes more productive.
George Walker is Managing Director of Novotek UK and Ireland.
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Dec 13, 2018 • Features • aviation • Data • Future of FIeld Service • future of field service • mobile workforce management • Blockchain • Cyber Security • field service • IFS • Service Management • Stephen Jeff Watts • data analysis
Blockchain and its potential has been mooted in field service circles for years. Is it time we stop thinking big and instead build smaller use-cases before we lose sight of what’s actually important, the end-user? Mark Glover, Field Service News’...
Blockchain and its potential has been mooted in field service circles for years. Is it time we stop thinking big and instead build smaller use-cases before we lose sight of what’s actually important, the end-user? Mark Glover, Field Service News’ Deputy Editor finds out more.
In 2008, a person (or a group of people) known as Satoshi Nakamoto conceptualised the first blockchain. A year later, this digitised digital ledger was a critical accessory to the group’s (or his) headline act, the now ubiquitous cryptocurrency Bitcoin.
The impact of this decentralised digital currency on financial markets and a curious, confused society has been fascinating to follow. That the persona of the inventor or the inventors remains unknown adds to the plot.
Yet, without blockchain, the currency wouldn’t function. This smart ledger, driven by a peer-to-peer network has the potential to stamp itself on industry and in particular field service. But can the sector adopt the technology in a way that will ultimately benefit the end-user?
Firstly though, and apologies to all those who have a handle on the technology, what is blockchain? Scouring the internet for a simple definition is tricky, eventually, the excellent forward-thinking mission.com offered this: “Blockchain is the technology that underpins digital currency (Bitcoin, Litecoin, Ethereum and the like). The tech allows digital information to be distributed, but not copied. That means that each individual piece of data can only have one owner.”
"The tech allows digital information to be distributed, but not copied. That means that each individual piece of data can only have one owner..."
Straightforward enough. But let’s expand it to industry. How can it fit into the aerospace sector and specifically a plane engine? Parties involved include the airline, the engine manufacturer and the service company all of whom are squirting data into that asset’s blockchain.
The jet engine is a high-end valuable piece of equipment, the blockchain systems enable a single, irrefutable history of that asset. The linking of parties (blocks) removes the requirement for inter-party consultation before extracting required information meaning critical decisions can be made quicker and more effectively. It’s also secure and visible to everyone and accurate and trust, therefore, is enhanced around the chain. The benefits are tangible. So why aren’t all companies rushing to implement it?
“Like all emerging technologies there are only going to be one or two applications that are going to come up for this kind of thing in the very early days,” says Stephen Jeffs-Watts, Senior Advisor – Service Management at IFS. Stephen is an expert in blockchain, a keen enthusiast of its benefits but warns that fields service shouldn’t get too carried away just yet, particularly as sectors are only starting to dip their toes in the murky blockchain water.
"We have to try and bear in mind that it [blockchain] is also directly proportionate to the type of kit that’s been installed...“
A lot of the use cases that are coming up at the moment,” he tells me, “are in very high-value assets and very highly regulated supply chains; in aerospace, defence, nuclear and very-high-end medical applications,” he pauses. “There aren’t too many Phillips Medicals out there.”
In field service, blockchain technology can potentially trace parts, verify assets and look-up maintenance and operations history, but according to Stephen, it needs to bed-in with modern hardware before its benefits can be felt. “We have to try and bear in mind that it [blockchain] is also directly proportionate to the type of kit that’s been installed,” he warns, “Are you really going to use blockchain to authenticate the asset history or the maintenance and servicing history for a ten-year-old piece of equipment?” Another pause, “You’re not.”
Let’s go back to the jet engine blockchain analogy; the engine itself is a high-end piece of equipment.
The airlines and engine manufacturer, themselves are high-end companies: BA, KLM, Lufthansa, Rolls Royce, GE, Northrup Grumann, for example. All are big companies keen to monetise blockchain, the only real way to do this is through data-ownership but in a high-asset blockchain, this isn’t always straightforward.
Who owns the data from a jet-engine? Is it the airlines?
The thrust from their plane goes through that engine and what about linking that to the pilot who’s flying that aircraft and jet engine through the air? That’s the airline’s data too. They also have a hand in the plane’s load: the number of passengers and baggage, fuel etc. That’s also data from the airline.
The engine itself? Rolls Royce might run it on a power-by-the-hour contract, so it’s their engine, so do they own the blockchain data? Like that other revolution IoT, blockchain becomes an issue of data ownership. What can be done to grease the chains to make the process run smoother?
“You’re going to have to get industries and supply chains to actually come together and solve the underlying data ownership issue,” Steve offers. “There is going to have to be some kind of consensus; an informal consensus through co-operation; the introduction of some kind of industry standard or ultimately an enforced consensus through legislative means,
Be it an Industry standard or a regulatory framework, large-scale blockchain implementation ultimately needs sectors to work together, to come together in agreement and as Steve explains, it also becomes an issue of trust. “Let’s say there are ten people involved in the supply chain: the operator, the Original Equipment Manufacturer (OEM), there may be a service operator; they’re all contributing data to that chain.
“But does the end operator actually have enough trust in the OEM to question if they are going to use their data and benchmark it against its competitors”, he ponders.
Issues around data-ownership, trust and unfit equipment unable to handle what is essentially a large-scale, shared google document are indicators that large-scale field-service blockchain implementation isn’t as close as we might think. Perhaps we are setting our sights too high? Maybe the use-cases should be carried out on a much smaller scale?
After all, cryptocurrency, the original thread of blockchain was designed for electronic financial transactions, not necessarily jet engines. Stephen agrees, referencing a well-known tracking device, he suggests we should keep things simple. “We could use blockchain like a glorified RFID tag that authenticates, verifies and gives you a reference point,” he says. “I can look at the blockchain and I can see who made it, when it was made, how it was transported.
“Where they may be just a couple of parameters about its last usage, you can look at that by a component-by-component type level, specifically in those cases where that kind of information is critical, or the authenticity is critical.
"There’s got to be a realistic level of ambition and some specific use-cases that prove the technology and prove the value of the technology before there comes any mainstream adoption..“
There’s got to be a realistic level of ambition and some specific use-cases that prove the technology and prove the value of the technology before there comes any mainstream adoption,” Stephen urges.
My conversation with Steve has been fascinating and his contribution to this article I’m sincerely grateful for. The insight he offered - most of which I’m unable to fit into this wordcount – was invaluable, yet despite all its potential of blockchain Stephen left me with a thought that goes beyond the blockchain hype: “So what?”
So what if an asset is pumping with blockchain data? All the customer wants is the device to start working again so they can get on with their business.
“What value does that bring to me as a customer,” argues Steve. “unless I’m in a highly regulated environment. When do you start loading up past-maintenance history? Is it good? Is it worthwhile? Probably not. So what’s the use-case that going to give killer value?
Steve continues from the end user's perspective: “Great, you’ve got blockchain. What do I get from you having blockchain? What do I get from being able to prove every last working second of this particular piece of kit? Why should I care?”
It’s an excellent point that perhaps gets lost in this fourth industrial revolution we find ourselves in. Among AI, and IoT and machine learning and blockchain should we not just focus on the customer needs and their requirements? Or will we continue to pursue the hype?
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Jun 04, 2018 • Features • Connected Field Service • Data • Data Analytics • Future of FIeld Service • mobile workforce • white papers • White Papers & eBooks • eBECS • field service • field service management • field service software • Internet of Things • IoT • Service Management
Field Service News, Editor-in-Chief Editor, Kris Oldland's latest white paper, sponsored by eBECS, explores why field service organisations should be ensuring their field service technicians are collecting data from assets whilst on service calls...
Field Service News, Editor-in-Chief Editor, Kris Oldland's latest white paper, sponsored by eBECS, explores why field service organisations should be ensuring their field service technicians are collecting data from assets whilst on service calls even if they aren't ready to implement an IoT based approach to service delivery yet as by doing so they can reap some of the benefits and more importantly build the processes for a future world in which connectivity and data will be at the heart of customer service operations...
Want to know more? The bad news is the full white paper is only available exclusively for fieldservicenews.com subscribers.
The good news is that if you are a field service practitioner then you may well qualify for a complimentary industry practitioner.
The even better news is we will send you a copy of this white paper when you apply as a welcome!
Click here to apply for your complimentary industry subscription to fieldservicenews.com and access the white paper now!
Note: Please do take the time to our T&Cs (available in plain English at fieldservicenews.com/subscribe) and note that this content is sponsored by eBECS
In today’s field service sector companies are facing an increasingly complex set of challenges and the collation and analysis of data paradoxically seem to often be found at both ends of the spectrum.
Data can be at the heart of many problems for a field service organisation as they struggle to find useful insight amongst ever-increasing banks of data locked away in differing business silos. Yet the rewards for breaking down those silos and also being able to identify where the insight is within your data can lead to better service levels than have ever been possible previously.
The vast amount of data that we have access to today can potentially give us a much more intimate understanding of our customer base than ever before, giving us the ability to understand and even predict their needs, far more accurately than we have ever been able to manage previously.
The vast amount of data that we have access to today can potentially give us a much more intimate understanding of our customer base than ever beforeHowever, the flip side of this benefit is that companies are now finding themselves drowning in data - which becomes meaningless without insight, a challenge which can be magnified further if data is locked away behind walls within an organisation.
It can be a daunting challenge to not only establish processes that allow the collection of data but also to ensure that when collected, data can move seamlessly across an organisation to fulfil its maximum potential. Yet in today’s business climate where service has become a core differentiator, there has perhaps never been a more urgent need to ensure you are harnessing every tool available to you in the most efficient manner in order to stay just one step ahead of the competition - and data certainly holds many of the keys to service excellence when it’s collected, processed and analysed correctly.
An interesting symptom of operating in a world of technological advancements, is that when we talk about data collection within a field service context the topic immediately turns to IoT - but in doing so are we overlooking one of the most important resource in a service organisation already at our disposal - the field service engineers themselves?
The importance of data collection in an increasingly connected world
The question of whether the Internet of Things will play a part in field service has been and gone. The answer was a resounding ‘yes it will.’
Research from Field Service News showed that 86% of companies were actively either developing plans to implement IoT or had already done so. Indeed, in terms of IoT and field service, the question for the overwhelming majority of companies has moved from why to how.
However, the impact of IoT in field service is set to be so revolutionary that it cannot just be viewed as a new technology to be rolled out, it is a decision which must be grounded with a firm understanding of your business strategies, your future goals and a rock solid foundation of both processes and technologies that can allow an organisation to fully reap the benefits of an IoT based service strategy.
But the revolution isn’t really an IoT revolution, it is a data revolution.
The number of connected devices globally is set to reach over 30BN by 2020 (data source: Berg Insight)Asset performance data and even component performance data can open the doors towards moving towards both a more preventative maintenance focused approach as well as empowering your service engineers to be able to find a first-time-fix on a more regular basis.
Asset performance data and even component performance data can open the doors towards moving towards both a more preventative maintenance focused approach as well as empowering your service engineersYet, for many service organisations, the sheer volume of data that a fleet of connected assets will produce will cause a series of problems and pain points in and of itself.
With companies facing unprecedented levels of data coming into their service operation not only from IoT connected assets but also various digital customer touch points whether that be via contact agents, self-service portals or even sentiment analysis of relevant social media, finding meaning and value within such a deep data lakes can be a daunting task.
In addition to this, there is the further question of retrofitting assets that a discussion on IoT necessarily brings with it.
For organisations with a large install base there are a number of considerations that must be given thought including:
- Which assets are worth retrofitting with IoT connected sensors?
- Is it worth waiting for some assets in the field to reach their natural obsolescence and then replace them with newer connected models?
- Should you prioritise retrofitting assets for those clients that are the most profitable or will having multiple levels of service contract be a hindrance to service delivery?
- What data is it important to track from retro-fitted assets? What is essential and what is merely nice to have?
- What processes will you need to develop or adjust in order to facilitate this data within the workflow of your service delivery teams?
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Nov 14, 2016 • Features • Coresystems • CSO • Data • Future of FIeld Service • manuel grenacher • chief service officers
As the role of the Chief Service Officer begins to gain more prominence the focus for driving service excellence at the executive level must be data driven writes Manuel Grenacher, CEO of coresystems...
As the role of the Chief Service Officer begins to gain more prominence the focus for driving service excellence at the executive level must be data driven writes Manuel Grenacher, CEO of coresystems...
Delivering service that meets the satisfaction of ever-demanding customers is helping usher in a new C-Level role at service and manufacturing companies.
Meet the Chief Service Officer (CSO).
It’s a role that isn’t widespread yet, but one that has begun to make inroads into leading service companies as more organizations eye revenue opportunities beyond equipment sales.
As product margins slip, CSOs are tasked with orchestrating and executing the type of service that retains and creates loyal customers. Selling a piece of equipment -- even one with a multimillion- dollar price tag -- is a one-time win. Service, however, can create revenue streams that deliver profits each year until the equipment is replaced.
It’s a model that more companies are adopting.
According to McKinsey, by 2016, nearly half of manufacturing companies expect that service will account for a third of their total revenue. But as companies move from being a commodity supplier to offering an on-going service relationship, a clear strategy is necessary.
Target Areas for CSOs
Successful service relationships require a number of teams working together within an organization.
Aberdeen Research has found that 8 out of ten Best-in-Class organizations (leading field service companies) have a VP-level or higher executive leading service.
CSOs must prioritize getting accurate insights to the right service people at the right time, so that they can solve problems for customers.
Aberdeen found that Best-in-Class organizations have four main target areas (in order of priority):
[unordered_list style="bullet"]
- Improve customer retention and loyalty
- Improve service-related profitability
- Improve quality / relevance of service data
- Improve service information capabilities (i.e. mobility, knowledge sharing)
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But what can companies do to help CSOs reach these goals? Data and its analysis are key. Specifically, here are the three data-driven actions that Best-in-Class companies do to empower their CSOs:
Real-Time Insight Drives Real-Time Performance
CSOs must come to grips with managing and orchestrating the efficient operations of a number of different departments and technicians. Best-in-Class companies empower their CSOs with the right data to help drive real-time performance, the ultimate goal of any service organization.
What data, in particular, do CSOs need to move toward real-time service delivery?
“Some industries have been transformed already by incorporating data analytics into their standard processes...”
Other tools are needed that let integrated data flow seamlessly from the field to the back office.
CSOs need real-time monitoring of asset operating conditions, performance, and usage. Finally, the tools CSOs use should enable real-time service visibility for senior management.
Give Your Field Team Tools That Deliver Valuable Service Experiences
The ultimate goal of service is to deliver value to the end customer. Service technicians need to ensure that a work order is completed, preferably during their first visit to the customer. But field visits represent an important opportunity for capturing data from equipment performance to visit details.
Our customer GE Power in Switzerland is using our Field Service Mobile APP to record granular data like temperature, upload or comment on pictures. This customer data can help inform the next visit or additional service needs.
Use Data to Continuously Improve Service
Customer expectations will only continue to grow. Since they are under pressure to perform too, customers are demanding real-time solutions to their service issues.
Customers won’t only compare your organization to competing firms, but also to their own customer experiences elsewhere. CSOs must study best practices across the entire service ecosystem and ensure that they are implementing these offerings.
Data and the analytics gathered on machines, equipment, and customers will help create the baseline. From there, CSOs should be able to evaluate and continue to improve service operations.
Some industries have been transformed already by incorporating data analytics into their standard processes.
To give an example, telecom companies can forecast traffic patterns, peak period bottlenecks, commercial versus domestic split, and thus perform real-time optimization of their voice and data networks. They can route around congestion to improve performance and the whole customer experience.
They take constant readings from their network data switches and build a big database of all their devices and customers to get a holistic view of the complete environment.
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Jul 12, 2016 • Features • Management • Aly Pinder • Data • big data • business intelligence
Aberdeen’s Aly Pinder asks are we smarter than we were in the past, or do we just have better access to data?
Aberdeen’s Aly Pinder asks are we smarter than we were in the past, or do we just have better access to data?
When was the last time you asked someone for directions, or used a phone book, or waited for the day’s forecast on the morning news?
Well, that last one is probably something you still do out of habit, but the others are things which have left our consciousness as we can just “Google it” from our smart phones. The emergence of technology and the IoT has flooded the service leader with more data than ever before. Machines talk to machines, technicians collaborate with each other via mobile devices while in the field, and customers interact with the service team in real-time owning their experience.
But with all this access to information and data comes a few challenges. How much is too much data? How can we turn this data into actionable insights? Who needs to know what and when?
These are all questions that the Best-in-Class service leader is tackling right now. As seen in Aberdeen Group’s recent State of Service Management in 2016: Empower the Data-Driven CSO (March 2016) research, one of the top goals for service leadership was improving the quality and relevance of data for the service team. This is a top 3 goal, only trailing the need to improve customer retention and drive service profitability.
Happy customers, profits, and then data quality in that order shows how the impact of data is rising on the agenda of the senior service leader today. But how do we get to a place where data is useful?
Is the answer to our data problem more technology?
Top performers recognise that ensuring the service team has actionable data is a journey and not something that can be solved with one-off investments. It takes a strategy, leadership, and resolve. Connecting the field team to insights helped these organisations resolve issues faster, deliver more value to the customer conversation, and make the field team better at their jobs!
“Top performers recognise that ensuring the service team has actionable data is a journey and not something that can be solved with one-off investments. It takes a strategy, leadership, and resolve...”
All these are great, and the Best-in-Class have some lessons for the rest of us:
Empower the service team with the data they need to make decisions, more isn’t always better.
Top performers ensure the field team has customized data views which provide only the pertinent information for technician for the specific task they are working on. Having the data necessary to solve complex issues at the time of service is integral to ensuring resolution can occur on a first visit, technicians are efficient, and the customer can be back up and running with minimal downtime.
Give the field team the mobile tools to have access to insights.
The field workforce is rapidly changing. We have been fearing the aging workforce for some time now, and it is finally here. But the Best-in-Class ensure that as technicians leave the business, their knowledge does not. They are able to capture best practices and expertise, and store these insights in an accessible location which can be tapped into via mobility in the field.
Leverage machine, customer, and technician data to identify the future of service excellence.
The IoT means different things to different people and industries. But the value isn’t just in the fact that we more devices are connected. The value of the IoT is in connecting the service chain to resolution, value creation, and collaboration. Smart machines and products open up a whole new world of possibilities as savvy organisations can take this data and better understand how to optimise assets performance, build better machines, deliver more targeted services to customers, and ensure technicians know the answer to the problem before they even get on site in front of the machine.
The proliferation of data in this era of the empowered customer can be a challenge for many organisations. Too much data leads to delayed action or inaction altogether. Top performing organisations have invested in technology and their internal processes to ensure they can turn all of the valuable data being captured every minute into actionable insights which drive value.
Top performers were able to take improved data capabilities and turn that into outperformance in key metrics such as customer retention, SLA compliance, and worker productivity.
Don’t be left behind looking at a phone book or reading a map. Tap into real-time data to make the decisions which will lead you into the future of service excellence.
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Oct 01, 2015 • Features • Management • Advanced Field Service • analytics • Data • big data • IoT
As we continue to bring you a selection of features from The Service Manager Handbook (2015 edition) published by Advanced Field Service we now turn our attention to one of the core tools for building future success, namely the implementation of...
As we continue to bring you a selection of features from The Service Manager Handbook (2015 edition) published by Advanced Field Service we now turn our attention to one of the core tools for building future success, namely the implementation of Analytics and intelligence
Download the full 40 page ebook for free by simply clicking here and completing the brief registration form
In today’s challenging business environment, there is little margin for error. Service managers need an even greater and fully in-depth understanding of their business to improve business planning, helping them make better-informed decisions, to ultimately keep ahead of the competition whilst attracting new customers and retaining their existing customers.
Instant access to management information
The benefits of replacing hand-crafted reports and spreadsheets with more interactive, integrated and intuitive tools are well documented.
As well as removing the unnecessary heavy wastage of man hours, and delaying what is often critical business decisions that can impact your opportunities to not only grow but also identify areas of weakness within your business that could potentially lead to loss of clients, easier access to your data improves control of your business with the following key insights:
- Intelligence to recognise emerging trends: Today’s business environment is faster paces nad more dynamic than ever before, whilst in the past reputations could be built on doing what you do and doing it well, today standing still can lead to dangerously dramatic decline in business, particularly from a service point. Since the economic crash in 2008 service has risen to become the key differentiator between businesses and with modern consumers (both B2B and B2C) well equipped to air any grievances in public via social media the pitfalls of failing service can be catastrophic for a business. As technology continues to push the boundaries of what is possible, it is imperative that service orientated companies embrace this to stay ahead of the competition and deliver service excellence at all times.
- The ability to identify and seize new opportunities or ward off threats: Of course embracing technology doesn’t just mean delivering better standards of service to customers. New emerging technologies such as the Internet of Things can help businesses move from a traditional break-fix reactive approach to a more efficient and cost effective preventative maintenance approach. Through remote monitoring optimum performances can delivered across the install base ultimately leading to less service calls in the long term.
- Power to understand key areas delivering profit (and loss): As the old adage goes you can only manage what you measure. Field service companies are perhaps uniquely positioned to be able to gather more information about their customers than any other industry as they have the benefit of ‘eyes and ears’ on site with your customers. The flow of this information from business unit to business unit allows for far greater insight of where new potential revenue streams may lie, as well as profit leakage may be occurring.
- Fast, informed decision-making based on accurate and live information: The rise in prevalence of dashboard analytics now make it possible for field service managers and their colleagues in other business areas such as procurement and sales to see trends based on the data collected easily and instantly, empowering them to make critical business decisions, and to get them right.
- Unprecedented insight into the most/least profitable areas of your business: In terms of data collection, processing and analysis we are truly living in a golden age. Businesses that harness the power of the data they have access to not only have superior understanding of their own businesses but also of their customers and most crucially of their customers pain points.
Your back-end service management solution should be able to do all the work of collating real-time information automatically across your jobs.
It should also make easy work of presenting it in the formats that are most useful to your management team, providing full visibility of contract profitability and equipping decision-makers with instant access to vital information on the business, including your profit forecasts.
Easy-to-understand analytics
As a matter of course, your data should be regularly analysed in a multitude of ways and in varying degrees of complexity, from viewing a daily high-level graphical KPI dashboard, down to examining detailed monthly reports.
Not surprisingly, analytical dashboards are fast becoming the service manager’s reporting tool of choice. They offer true anytime/anywhere reporting, via a browser or mobile device, in a way that makes it easy to instantly grasp the significance of the information.
If you have this dashboard facility in your service management solution, you’ll be able to drill down to the original data source to analyse all your core data including: customer status; financials; performance and productivity of engineers, with hours worked and number of visits; stock and supplier KPIs; calls by equipment, site and efficiency; costing of jobs and engineers; call response times.
Download the full 40 page ebook for free by simply clicking here and completing the brief registration form
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Sep 24, 2015 • Features • Management • Advancefd Field Service • Data • management • Service Management Handbook
As we continue to bring you extracts from The Service Manager Handbook, published by Advanced Field Service here we look at three quick tips to help you manage your service P&L whilst keeping your field workers happy and motivated…
As we continue to bring you extracts from The Service Manager Handbook, published by Advanced Field Service here we look at three quick tips to help you manage your service P&L whilst keeping your field workers happy and motivated…
Download the full 40 page ebook for free by simply clicking here and completing the brief registration form
Mine your data to plan for the future
Today’s customers are flexing their buying muscles and exerting pressure on suppliers to fulfil ever more challenging SLAs. To stand a chance of meeting rising customer expectations, while maintaining profit levels, you need full visibility over your contracts and tighter control over your SLA management.
Setting realistic budgets and timescales
Having access to historical information on the actual cost of similar projects, contracts and large installations helps to ensure that future bid costs and resource requirements are accurately assessed and a realistic price proposed.
You want to win the contract but not at a cost that could break you!
Without formal systems in place, many service organisations find it difficult and time-consuming to compile this historical information.
As a result, bids are based on gut feel and best guess, running the risk of perpetuating profit-killing mistakes. With an accurate budget in place – covering all your materials, labour and subcontractor costs – managers will be able to track actuals against estimates and use this information for future planning.
Optimising parts management - Don’t tie up your cash
If your organisation stores parts, you will be all too aware of the dangers of stockpiling when cash flow is so important. Rather than relying on best guess, automating the forecasting process to predict usage will avoid the pitfall of holding more parts than are required.
Your systems should give you the power to analyse your parts history, so you can recognise trends and fluctuations to ensure that levels fall within the desired optimum range and can anticipate demand at peak times. This will reduce the amount of cash held in unnecessary high numbers of parts, and reduce the overheads of managing your inventory, while ensuring that your engineers achieve maximum productivity by having the right parts at the right time.
Managing parts ‘on-the-move’
Your systems should also enable you to keep track of your van stock levels and usage, as well as automatically re-ordering and replenishing when nearing a minimum level.
A good service management solution can help to effectively manage your inventory of parts, enabling you to carry the right levels to meet customer demand, without restricting cash flow. Good planning will also help avoid overstocks by scheduling parts to arrive when you need them, and ensuring you are able to optimise fluctuations in demand and effectively manage
Monitoring and managing performance
KPIs are a vital tool for service organisations to effectively track, monitor and evaluate performance to achieve sustainable growth. It is vital to identify which KPIs align to your business success. Standard service management metrics include: [unordered_list style="bullet"]
- First-time fix rates
- SLA adherence
- Engineer productivity
- Job costing
- Call rates
- Net profit margin
- Stock value
- Customer satisfaction/retention
Without proactively monitoring KPIs, service businesses are vulnerable to problems that can seriously undermine both performance and profitability. For example, failure to regularly monitor sales margins could mean that a costly recurring mistake is discovered only at year-end.
Sharing achievements
All too often, key performance information is only available to managers and directors, with staff review periods that are too infrequent to proactively affect the outcome of future jobs.
Also, this information may only be available through a central source, which can lead to a feeling of ‘them and us’. Relevant information should be available to all members of the team. Simple, clear and targeted information – not complicated reports – will help them to take ownership of their utilisation, performance and deliverables.
Using systems that can provide this vital information in real-time, such as mobile or web-based reporting, allows field engineers to see if they are on track to deliver within the schedule allocated. If not, the issue can be raised at the earliest opportunity, the causes assessed and appropriate action taken.
Download the full 40 page ebook for free by simply clicking here and completing the brief registration form
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