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Global Revenue to Expand at 7.7% CAGR over 2018-2028.

The enterprise asset management systems market is expected to be valued at US$ 4,863.1 Mn in 2028, and is expected to register a CAGR of 7.7% from 2018 to 2028, a new report shows.
Improved ROI with the aid of EAM solutions, widespread penetration of IoT and gradual increase in investment on software by organisations are expected to remain the major factors driving growth of the global enterprise asset management systems market, a report shows.

Enterprise asset management software is primarily used by the enterprises across different industry verticals which are heavily dependent on the complex and expensive physical assets, such as plants, heavy equipment, and vehicles. End users of the EAM primarily include industries such as oil & gas, manufacturing, energy & utility, mining, and others. Enterprise asset management software is offered with the deployment options such as on-premise and cloud based.

Enterprise asset management systems market is categorized on the basis of component, deployment, vertical and region. On the basis of component, the market is segmented as solution and services. The services segment is further bifurcated into consulting services and professional services. The services segment is expected to register a CAGR of 7.8% during the forecast period.

On the basis of deployment, the enterprise asset management systems market is segmented into on-premise and cloud. The revenue contribution from the clouds segment is expected to expand at a CAGR of 9.0% during the forecast period.

On the basis of vertical, enterprise asset management systems market is segmented as public sector, manufacturing, oil and gas, healthcare and pharmaceutical industry, energy and utility, transportation, wholesale and distribution, food and beverages, paper and packaging, chemical and process industry (including steel industry), mining and service industry. The revenue contribution from the manufacturing segment is expected to expand at a CAGR of 9.4% during the forecast period.

Among the regions, North America is projected to exhibit relatively high growth in the global market, registering a CAGR of 9.3% over the forecast period. The revenue from the markets in North America and Western Europe are expected to represent a combined share of 45.3% of the total market revenue by the end of forecast period. Some of the top companies identified across the Enterprise Asset Management Systems value chain are IBM Corporation, SAP SE, Oracle Corporation, ABB Ltd, IFS Ltd, Infor Inc., Ultimate Software Solutions BV, Carl International SA, Mainsaver Inc., Mex Pty Ltd and others.

The promise of IoT has been vast and they hyperbole around it’s impact on field service delivery are massive – but is it actually living up to the hype and what more should we expect? Kris Oldland discusses...


The early hype and industry trends

The story of IoT’s rapid rise and how it went from the top of the hype cycle straight to a standard part of industry is now well documented. Indeed, across the last two years, I don’t think I can recall a single service executive I’ve met whose organization isn’t at least seeking to implement some layer of IoT connectivity into their field service operation - many are already far down the path.

 

On the surface, it certainly seems that IoT is living up to its billing as “the most over-hyped technology in development today” a moniker which heavyweight analysts Gartner applied to it not too long ago.

 

Back in the misty past of 2014, the official line from Gartner was that IoT was ‘five to 10 years from actual productivity.’ Back then IoT was riding the crest of the “peak of inflated expectations” within the analyst’s much loved, if slightly overly poetic, hype cycle.

 

So as we hit the closest limits of that prediction perhaps now is a good time to establish if IoT is still on track to revolutionize the world, and in particular field service, as Gartner and others - including myself, so boldly predicted.

 

Back in 2014, it was a lack of standardization in the area, as well as the changing nature of the technology itself, which Gartner identified as part of the reason why widespread adoption was further away than its promoters at the time may have thought.

 

“Standardization (data standards, wireless protocols, technologies) is still a challenge to morerapid adoption of the IoT,” wrote Gartner’s Hung LeHong.

 

“A wide number of consortiums, standards bodies, associations and government/region policies around the globe are tackling the standards issues. Ironically, with so many entities each working on their own interests, we expect the lack of standards to remain a problem over the next three to five years.”

 

Indeed, within field service this has become something over a common theme as we have seen the technology move from an embryonic to fledgling state.

 

It was interesting to note for example IFS’s approach in the area was not to develop a specific propitiatory IoT solution as some of their peers in the field service management arena, such as PTC and ServiceMax had veered towards, but instead opted to bring to market an IoT connector, that was able to plug the gap between whichever IoT protocol an organization favored and their field service platform.

 

This type of approach, of providing some form of sorting house for various data formats has since been impressively taken up by the like of Microsoft and others also - and may well point to the where the future lies for field service companies leveraging IoT in the future.

How IoT is being adopted and outlining connected field service
Before, we can assess if IoT is as yet hitting its potential as a fundamental bedrock for twenty first century field service, perhaps we should take a moment to look at some of the key areas in which it will be applied.

As with almost any technology that makes it at the corporate grade, the first thing that everyone gets excited is the financials.

For a long time the dual challenge for field service operations has been the seemingly incompatible tasks of improving CSAT levels and reducing costs. For those service directors trying to manage this impossible equilibrium, early talk of the magic bullet of IoT would have sounded like a divine panacea, with talk about how IoT could improve both profitability and customer relationships, being at first whispered in hushed tones, before being shouted loudly from the roof tops when the first few actual cases studies started to emerge.

Within these case studies there were invariably four key areas of success:

Automation
Rather than the customer having to report problems, IoT-enabled devices can automatically contact the technician directly with specific details of the issue. The technician can then arrive with knowledge and parts to immediately solve the problem.

Reduced Inspections
Devices capable of self-diagnosing issues and reporting on performance, not only reduce the need for customers to contact technicians, they also cut down on the amount of inspections required to solve an issue.

Inventory Management
IoT-enabled devices that require servicing or new parts, now automatically flag these issues to technicians for attention. Alongside this, technicians can also connect directly to the warehouse for instant, real-time inventory data to check whether the parts needed are in stock.

Redefine ‘Service’
Rather than simply fixing devices that already have maintenance issues, IoT is enabling serviceproviders to see and solve customer problems before they even occur. This is thanks to real-time performance data that can signal when parts are on the verge of needing replacement or interpret the signs of potential maintenance issues. A case could be made for how each of the first three of these developments could be considered something of a revolution within the field service sector. Machines that can self diagnose their faults, order the parts they need to remedy the problem and arrange for a human co-worker to come out and make the necessary repairs all sound like something from the future - and even better it is a nice happy Jetson-eque vision of the future, rather than the bleaker dystopian version that sells Hollywood movies. However, it is the fourth of these points, i.e. Redefining Service, where perhaps the true potential of IoT is uncovered.


The fundamental role IoT is playing in servitization.
In a world of exaggerated hyperbole, it is perhaps only natural to dismiss the talk of a fourth industrial paradigm that accompanies the discussion around Servitization as overegging the pudding somewhat.

At the risk of sounding like a bad pastiche of industry journalist though, I think that such talk is actually pretty much on the money. I do however, think there is there is a long way to go before we get there - and for me IoT is the fundamental technology that is required for a company to fully move into a servitized business strategy.

Wait! I here you cry, Rolls Royce, MAN UK, Caterpillar - they were all doing servitization before the IoT was even an apple in its developer’s eyes.

This is of course, very true, but at its essence all IoT has simply done is make the bespoke telematics of true innovative giants such as those listed above (and the other handful of pioneering poster boys of servitization) available on mass scale. Power by the Hour is all about the data, as is the IoT.

A simplification perhaps, but one that is founded in truth and whilst the move towards preventative maintenance, that is commonly mentioned in the same breath as IoT, isn’t servitization, it is a fundamental step towards the strategy - which is one that is becoming more and more prevalent in almost all vertical sectors. 
Great Expectations:
So to answer the question in the title of this article - yes, I believe that IoT is so far living up to its potential as a revolutionary game changer within our sector. That said, I don’t think it is greedy to expect even more. As ServiceMax CEO Scott Berg discussed in a recent interview with Field Service News, there is certainly more to come from IoT in terms of the way field service companies are leveraging it.  
“I think what needs to happen now, and where the real value will come from IoT, is when input from a machine can be fed into more predictive models using Artificial Intelligence (AI) and Machine Learning. Only then we will get truly predictive services, and only then will you get a learning model rather than an alert system.”
He commented. Essentially, I think Gartner got their 2014 timeframe pretty much spot on. Five years on from that prediction and we are now generally seeing fully functioning IoT systems in place quite commonly amongst field service organizations, but I think it will be at least a further five years before those systems mature to become close to their full potential.
The analogy of PCs in the workplace comes to mind. For those companies who embraced early DOS systems, they gained an important head-start on their peers who stubbornly ignored that particular wave of technological innovation. Yet, by the time Windows 95 had emerged the technology was not only pretty much universal but had become ingrained into the fabric of industry at all levels.
Expect the same of IoT in 2025.

 

 

According to a new research report from the M2M/IoT analyst firm Berg Insight, the number of devices featuring cellular or satellite connectivity deployed in oil and gas applications amounted to 1.3 million at the end of 2018.

 

Growing at a compound annual growth rate (CAGR) of 6.8 percent, this number is expected to reach 1.9 million units by 2023. Remote monitoring of tanks and industrial equipment in the midstream and downstream sectors comprise the most common applications for wireless solutions in the oil and gas industry. Berg Insight expects that shipments in the upstream sector will grow faster, although from a much smaller base, as cellular communications become an increasingly viable alternative to proprietary radio due to improved 4G LTE coverage in North America and broader support from the industry.

 
While the market has been affected by the decrease in oil prices in recent years, significant developments have taken place in regard to the industry landscape and technological advances. Major automation vendors such as Emerson, Siemens, Schneider Electric, Yokogawa, Honeywell and ABB are investing heavily in the development of software platforms to support use cases surrounding predictive analytics and digital twins. Recent developments further include Rockwell Automation’s joint venture agreement with the major oilfield service company Schlumberger to create Sensia, an integrated automation solution provider in the oil and gas industry. On the communications side, several initiatives have been launched to promote the adoption of cellular technologies in the utilities industry, primarily in the US. In early 2019, leading cellular device providers, including Sierra Wireless, Cisco, MultiTech Systems, GE and Encore Networks together with spectrum licensees and utilities formed the Utility Broadband Alliance (UBBA) to advance the development of private LTE networks for critical infrastructure industries.

Solutions for remote monitoring of assets such as wellheads, storage tanks and pipeline infrastructure are offered by major industrial automation vendors, as well as a large number of specialised providers. “Key consolidators in the market for remote monitoring solutions are the private equity held companies Quorum Software and DataOnline that have acquired six and three businesses respectively between 2015–2019”, said Fredrik Stalbrand, IoT Analyst, Berg Insight. He mentions recent deals such as Quorum’s acquisitions of the Coastal Flow Measurement family of companies and Flow-Cal in March 2019, as well as DataOnline’s purchase of Sierra Wireless’ iTank business in December 2018. Important vendors that specialise in remote SCADA and tank monitoring further include AIUT, Critical Control, eLynx Technologies, Silicon Controls, SkyBitz, WellAware, Zedi and ZTR Control Systems. “Several players continue to have inorganic growth as a key strategy, so further M&As can be expected among IIoT solution providers targeting the oil and gas industry in 2019–2020”, concluded Mr. Stalbrand.

You can read the full report here.

 

In a world of connected field service, new exciting oppportunities are being created by new technology such as Augmented Reality. Michael Murphy, VP International Operations, Librestream Technologies explains...

The Field Service industry is in the midst of digital change – investments are being made in different digital transformation technologies to help expand their service offerings to customers.

According to Forrester1, 32% of enterprises are focusing on digital transformation, and in two years, that number will increase to 49%. Augmented Reality (AR) is one key technology that organizations are deploying as part of these digital transformation initiatives.

It is difficult to define AR as capabilities rangefrom deployable now to future applications. The future capability can be considered ‘extreme AR’ - think of 3D digital models of assets that you can pull apart and manipulate. However, most organizations don’t have the content or infrastructure available for this form of AR even though this is the type of AR many refer to first.

In reality, the more deployed form of AR includes applications such as remote assistance and digital work instructions.
Within field service we are seeing this ‘deployable now’ AR gain significant traction. In working with industrial customers, we have identified three main drivers behind this growth: aging/ loss of experts, change in customer demands and service offerings, and ecosystem readiness.

These three drivers are propelling service organizations to adopt AR tools that can leverage expertise across a broad product set and customer base. Early adopters within industry have already proven results with performance improvements in first-time-fix rates, asset uptime, and overall issue resolution time. Embracing AR capabilities can be difficult if you don’t know where or how to start, and there are critical factors that can make the deployment a success or failure.

Here are the three main stages of successfully deploying AR technologies:

Get Started
The first and most crucial step is articulating the problem or need - Are you experiencing a loss of expertise within your organization? Are customers demanding stronger SLA commitments? If there is more demand on your service organization, AR technology can help meet these demands.

Once the need and goals are identified, the next challenge is choosing the AR technology and vendor that best fits your needs. Ask if they have other customers like you. Can they provide you with best practice suggestions? Starting with applications like digital work instructions and remote expertise will expedite results as they are proven already. In addition to wearables, these solutions can be used on smart devices, such as smartphones and tablets, that your workers likely already have in their pockets.

Work with your team to figure out the potential use cases for this technology and document them. Creating a library of use cases will help a lot in the deployment stage.

The last important part of the ‘get started’ stage is getting the right people involved from the start. That means IT, project champions, and the executive buy-in. Having all these groups on board will help make the deployment a success.

Make It A Success
AR technology is usually a learning curve for new users. Making this technology deployment a success is key when users adopt the new tools. You will see the most benefit from AR when deployed in scale – if one user has the technology it’s hard to see it success.

Think of the network effect. If only two users have the technology, there is only one connection that can be made, but with 100 users enabled, there are 4,950 potential connections. The next most important step to success is in creating an achievable adoption plan.

Work with your team and your AR vendor to properly introduce and train on the technology. And communicate your use cases and successes to help with the adoption.

If users understand how and why the technology is being used, the chance of them actually using the technology grows.

Think About the Future
The future of AR within service is virtually limitless, and enterprise businesses are testing a range of wearables as part of various AR applications. While wearables add hands-free capabilities, they add cost to the initial deployments. Many enterprises are deploying test groups with wearables while enabling workers to use the applications on their mobile devices to expand the value.

Capturing field intelligence data and providing expanded analytics are also major topics within AR. Applications such as remote expert and digital work instructions capture valuable information from the field including IoT data. Solutions are also moving toward working with IoT sensors to grab valuable data in real-time or to record in step-bystep workflow.

Using the data you’ve collected from the AR applications, you can add to your predictive maintenance and service analytics. The field intelligence data you capture also must be available within your existing systems such as your ERP or knowledge management system.

To achieve this integration, connectors and APIs are a ‘big thing’ in AR - and ad-hoc or silo systems are no longer acceptable. Enterprises expect a completely integrated solution. Practical AR solutions are proven to improve performance, especially in the field service industry.

With AR the main drivers of the ageing workforce, ecosystem readiness, and the change in service offerings and customer demands,
service organizations are realizing the need for innovation and digital change.

As the industrycontinues to embrace the digital space, AR will become the norm within field service.

IoT has long been touted as a transformational technology within field service management, and its impact will be felt by smaller organisations just as much as their larger peers writes Craig Chantler, Head of IoT, at simPRO...

Field Service is being transformed thanks to technological developments such as machine learning and the Internet of Things (IoT). The ability to remotely monitor equipment and transmit data back to the business in real-time has previously only been available to larger corporates with deep pockets. The reality is small to medium enterprises can also benefit from an agile operational environment and it doesn’t need to cost the earth.

Let’s take a look at the key benefits IoT brings to small to medium-sized field service operations.

Trigger automated actions
IoT connected assets are monitored for anomalies,and error messages can trigger alerts and create work orders. There doesn’t need to be any human interaction in this process which reduces the impact it can have on limited resources. If a part fails, the correct parts can be ordered and then the job can be assigned to the suitably qualified and located engineer for the job.

Increased first-time fix rate
Repeat service visits are costly, especially for smaller businesses with limited resources. IoT can help to provide more efficient and cost effective service delivery. Accurate reports on the behaviour of connected assets help to reduce unnecessary visits but when a problem arises, the right person with the correct parts can solve the problem on the first visit.

Predictive maintenance to provide better service
Moving to a predictive maintenance model, where equipment can notify us when they are operating outside of normal parameters or predict when failure is imminent, can hugely benefit businesses. By only sending an engineer to site when required can reduce costs and administration as well as improve equipment up-time and customer satisfaction.

What are the practical applications for IoT in smaller field service businesses?
When looking to implement an IoT solution, it’s important to evaluate all options. It’s not only about cost, but the full end-to-end solution. Consider whether new equipment is required or whether the technology works with existing installations. One of our customers did exactly that when they looked at how they could use IoT in their business.

The business in question is an installer and maintainer of specialist plant equipment found in the plant rooms of many prestigious commercial buildings. They were seeking a solution that could deliver live operational data on the performance of their equipment to support their ongoing maintenance and servicing activities and even help create new revenue-generating services.

Having persevered with another IoT system for close to two years and getting nowhere, they implemented simPRO IoT and had it up and running in a very short space of time. The simPRO plug and play sensors can be retrofitted to existing equipment quickly and
easily, along with the easy connection of existing sensors in place on the equipment. These sensors communicate with the gateway to the simPRO platform through thick plant room walls that other approaches were struggling with.

The sensors are used to monitor key areas of system performance such as energy usage, water levels (using pressure sensors) and water flow (via pulse meters). Thanks to real-time updates through the cloud, the provider can be instantly alerted of these metrics, along with faults on the local equipment console. This has allowed them to improve the operational performance of their equipment and add value to the customer by reducing costs, increasing asset uptime and facility performance. They are able to “sweat the asset” and get more out of the equipment long term.

Moving away from reactive and prescriptive pre-planned work, towards cost-effective proactive management of the equipment, has had a positive impact on their bottom line. Lowering the cost of operations has enabled them to use resources more efficiently
which ultimately benefits the customer.

By integrating the core simPRO solution, which combines comprehensive asset and job management, with the IoT enabled live window into asset/equipment operational performance, simPRO delivers an end-to-end solution. Small businesses can benefit from this one-stop-shop approach where all hardware and software are provided, installed, configured and supported by the one vendor.

The simPRO solution allows smaller service providers to punch above their weight, and bring innovative new services into their portfolio to bring a tangible source of differentiation. With the real-world practicalities of simPRO IoT increasing in usage by small to medium enterprises, the onus falls on the field service industry to embrace it for the wide array of benefits previously unattainable for these businesses.

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.

In The Big Discussion we bring together three industry experts and put four key questions for them to answer to give us a balanced view of the major trends impacting the field service sector. This week, the panel end our series by picking out areas of concern for the sector that could surface 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.