Regular Field Service News contributor Michael Blumberg makes his debut on the Field Service Podcast and explains why firms should be embarking on a digital transformation journey.

As a regular supplier of insight to the pages of Field Service News for many years now, the FSN editorial team though it wise to get Mize's Michael Blumberg on the podcast. Deputy Editor and host Mark Glover batted topic suggestions with Michael over email and the pair eventually decided on Digital Transformation, a journey that all service professionals should be contemplating if they haven't already.

Covering the challenges and advantages of DX, including tangible case studies of successful integration, Michael explains with clarity how you can begin your own transformation, one that can only be beneficial to your business.

It's essential listening for any service professional. Download it now!

You can connect with Michael on LinkedIn here or reach out to him on email. You can also read his most recent article on how to optimise your engineers here.

Steve Zannos, Director, Customer Care, Elextrolux and FSN20 alumni shares his thoughts on service in the latest Field Service Podcast.

Steve Zannos is a worthy addition to 2019's most influential in service list, the FSN20, our annual run-down of those making a significant impact on the sector. As Senior Director of Service at Electrolux, Steve oversees a vast pool of engineers as well as external contractors and has shifted the firm's service strategy to a modern outlook with tangible outcomes.

Steve wrote a fascinating piece on management and engineer engagement so we got him onto the podcast to discuss the article; challenges that arise when introducing new technologies; and how the the profession can encourage more young people into the sector. It's essential listening for any service professional.
You can connect with Steve on LinkedIn here and join the Customer Services Management Professionals LinkedIn group here.

Understanding the various ways in which your customers may perceive value from your services is crucial if you are to be able to effectively sell preventative maintenance based service solutions to them, writes Coen Jeukens...

Selling preventive maintenance is not what it used to be. In the old days a manufacturer could use its expert position to prescribe a maintenance scheme. Today, a combination of emerging technologies and pressure from buyers to do it cheaper/ smarter warrant a revisiting of the value proposition of preventive maintenance.

PM = Periodical Maintenance

As acronym we use PM. When talking we utter the words preventive maintenance. But what do we really mean?

• Planned Maintenance
• Periodical Maintenance
• Predictive Maintenance
• Prescriptive Maintenance

Analysing a lot of service contracts offered by OEMs we still see most of the maintenance is periodical or counter based. Just like the maintenance interval for your car; a PM each year or at 15,000 km.

All those periodical or counter based maintenance jobs are good service revenue for your service organisations But what happens when customers start challenging you? What if the customer has access to knowledge that amends or contradicts the engineering assumptions that led to the definition of your current maintenance intervals?

Buyers seek to reduce maintenance cost

In a world where people are more vocal, we see customers expecting things to work and buyers seeking to reduce maintenance cost. These expectations impact the way we sell service contracts.

Selling is more straight forward when you can see a direct relationship between the pain and the gain. Such a link is obvious for installation and break-fix activities. But it is less apparent for preventive maintenance. Try to picture buyers asking these questions:

• What does PM prevent and what is the risk that remains?
• What is the rationale of the current maintenance interval?
• Nothing happened last year. What will happen if we skip or delay a PM?
• Can you dissect the PM job in activities (show me what you do) and is it really necessary to have all those activities done by an experienced/ expensive technician as yours?
• Can we do pieces of the PM job ourselves?

You get the gist of the conversation and know where it is leading less cost for your customer at the expense of less PM revenue for your service organisation.

What complicates the selling of service, is that in most scenarios the buyer and the customer/ user are not the same person. You may convince the user of a piece of equipment to do preventive maintenance, the buyer on the other hand has a different set of objectives. Most likely the buyer will push you on a path towards commoditising and cannibalising your PM services. All in order to reduce cost.

Rediscovering value

To stay ahead of the game let’s dissect PM along the lines of value creation for the customer. High level you can split a PM into three pieces:

1. The execution of the maintenance activities
2. The reporting on those activities
3. The communication and interpretation of the results

Ask your customers to rate the value of each of those pieces. It’s probable that you will find that the business value of PM to a lesser extent is in the execution and more in the reporting and communication.

Maybe you pride yourself in your uniqueness of execution, whereas the customer might perceive it as a commodity. If also reporting and communication are on par, you may face price erosion.

If your customer needs the PM report for compliance or insurance purposes, the value of the report increases. When you consider that PM is often a play of risk and liability, you can price the value of your brand.

Example: It does make a difference to an insurer if a yearly PM/ inspection is performed by a triple A company or a middle of the road company. Communication value comes into play when your customer expects you to be a partner rather than a supplier.

• Supplier – “just send me the PM report, I’ll read and interpret it myself. When I need assistance, I’ll contact you.”
• Partner – “help me interpret the findings and consequences of the PM. How does this impact my business?”.

In the latter situation you can monetise the communication beyond the effort of having a conversation for a couple of hours. PM can thus elevate from an obligatory periodical execution to an instrument of customer satisfaction and cross- and upselling.

Repackaging the preventive maintenance offering

In order to retain and expand your PM revenue stream in a context where the buyers move to reduce their spend, do go in discovery mode and (re)define preventive maintenance.

PM is not a singular black box once defined by somebody in engineering with a product focus. Modern PM is a menu of choices (and consequences) for your buyer based on the usage profile of the product, budget and risk.

Paul Joesbury, Commercial Operations Director at Homeserve discusses the pitfalls and victories 'Uberizing' can bring to your firm.

Paul Joesbury joins the pod again this time discussing the Uberization of service and how him and his team at Homeserve are implementing it into the service offering.

Listen here to Paul's last visit to the podcast when he suggested tech will eventually supersede the human in service and to take this up with him or to discuss any of the points he raised you can connect with him on LinkedIn here.

Zack Bergreen, Astea’s outgoing CEO, has nearly 40 years in the service sector. As the firm finally confirms its merger with IFS, Mark Glover speaks to IFS’s Marne Martin to discuss the dynamics of the transition.

Marne Martin is telling me when she first met Astea’s Zack Bergreen. “I’ve known him since 2013,” she recalls “when I tried to convince him to merge with the company that I worked for at the time.”

Of course, Martin bats in IFS colours these days, but seven years on she is finally overseeing the acquisition of Bergreen’s Astea, a deal confirmed in December which saw Bergreen step aside as CEO, allowing Martin to assume the position during the period of integration, absorbing the task into her current mantle as President of IFS’s Service Management Business Unit with overall responsibility for the merger. But as is the case for any transition, both parties need to work together. How will the pair make this handover work?

“Zack and I have a good relationship,” Martin explains. “He’s not involved in the day-to-day post the transaction, but absolutely is involved in the customer transitions and has been very supportive. For example, he and I together will go to Japan in early February.”

As I write, both may well be in the Far East, smoothing relationships in a market foreign to IFS’s strategy. That Bergreen curated business in such unorthodox regions at the time is testament to the customer focus that Astea created and as Martin alludes to, this will be an important factor going forward given IFS’s larger global presence.   

“Astea has a wonderful customer base,” she explains. “Customers reach out to him and that’s been a great conduit in the early days because Zack and I can compare notes around customers. Hopefully they’re hearing the messages that we’re investing even more in them!”

Martin of course is no stranger to such business transitions. The Astea deal will be her second go-private to add to her two previous IPOs. “An even-steven,” she says, laughing.  I quote from an old press release where she is referred to as an “industry veteran”, a term that in the UK at least, evokes an individual on the cusp of retirement, but one full of experience and knowledge.

“Although I’m not as much an industry veteran as Zack,” she retorts, musing over the phone. “He actually founded Astea not long after I was born.”

Zack Bergreen, one could argue, is a genuine veteran of the service sector, bringing Astea to market in 1979, a digitally baron time when the first clunky and commercially available mobile phone would not appear for five years and Tim-Berners Lee, the man credited with the internet, was ten years away from presenting his idea.

“With Workwave, I did need to bring that company into a place where it was part of IFS and part of our strategy and really rationalise how it all fits together..."

Since then, before IFS’s acquisition, Bergreen had built the company into one of the leaders in global service management software. It’s meant, according to some analysts, the firm has been ripe for takeover for some time. “Astea has been on the list of potential acquires for as long as many of the market analysts can remember,” says Bill Pollock, “It is not a surprise that it has finally been acquired – the real surprise is that it took so long.”

Despite the delay though in Astea being acquired, Martin remains on-brief with IFS’s CEO Darren Roos, who tasked her on arrival to create and grow the Service Management Business Unit. With the integration of Astea, the successful go-to-market implementation of WorkWave, and strong organic growth of the products acquired previously by IFS, Martin is on track.

Skilfully, Martin recruited Dave Giannetto to take over the day-to-day as Workwave’s CEO, him being promoted approximately a week before the Astea deal was closed out.  Having worked alongside Giannetto for eight months leading up to his appointment, Martin felt confident handing over the reins.

“With Workwave, I did need to bring that company into a place where it was part of IFS and part of our strategy and really rationalise how it all fits together,” Martin recalls, “but it was also a talent expansion strategy, so with Darren’s support, I recruited in Dave and I was able to transition these CEO duties to him.”

However, she was quick to credit the team around her and the recruitment of those bought in for the fantastic growth IFS is experiencing in the Service Management Business Unit and with the Astea transition. This included Simon Niesler who joined in December as CRO, laying a foundation Martin says, to sustain their rate of growth – the division’s bookings growth was over 100 per cent in 2019 – and successfully absorb Astea. “It was absolutely time to bring in a CRO, and with again Darren’s support, we were able to bring in another very strong talent,” she says. “I'm thrilled, as it enables us to keep scaling and gives me the confidence we really have someone who is best in class in the role.”

Through Q1 at least, IFS will retain the knowledge of another class act in Bergreen, who has an advisory role as a sort of relay between Astea’s customer-base and its integration with IFS. Officially, he will take on the role of Senior Advisor of IFS’s Group Management and be an influential voice in the Service Management Advisory Board.

Come Q2, we will know more about the success of the transaction. Given Martin’s track record however, don’t be surprised, if there were any cynical Astea customers, our bet is that they will be more than appeased with the engagement and customer focus.

Enjoyed this article? You can read more analysis and news from Marne and the IFS team by clicking here 

Advanced services need advanced sales models to succeed, says moreMomentum's Jan van Veen.

You need to augment your field force with freelancers, but you're concerned about local regulatory compliance – Don’t be! Read this first, says Bill Pollock.

IT companies waiting an additional 23 days to be paid for completed work.

Health and safety is becoming more prominent in service. Engineers who work remotely are more susceptible to risk and firms are now recognizing the hazards they face daily. Following a Field Service News Think Tank held in London last year which had the issue of health and safety at the top of its agenda, Mark Glover – who attended the meeting – reports on some of the safety challenges that firms encounter.