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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. 

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 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 pick out trends for field service managers to look out for in 2019, including AI, data integration and connectivity.

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. 

In the second of our four-part series, our industry experts Bill Pollock, Strategies for Growth, Marc Tatarsky at FieldAware, and Richard Pratley from SimPRO, tackle the area of IoT and its role in field service.

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 look at the impact of IoT in field service and whether it will become a necessity for firms to embrace if they are to keep ahead of the service curve.

IoT has become an increasingly key discussion amongst field service companies in recent years - do you think it will soon be essential for field service companies to embrace IoT?

BILL POLLOCK, PRESIDENT, STRATEGIES FOR GROWTH
I believe it is already essential for field service companies to embrace the IoT. That ship has already sailed – and those FSOs that run their services operations on an IoT platform are already beginning to see the return on their investment.

The enormous amount – and wealth – of data that is now being generated through the use of an IoT platform is turning many of the traditional ways of thinking upside-down. For example, it has created an environment where the “old” (i.e., last year’s) way of measuring performance is becoming almost instantly outdated. For example, last year, an FSO might have been assessing its service delivery performance on the basis of asset uptime or SLA compliance, etc. However, this year, they may need to gauge their performance via an entirely “new” set of KPIs!

Measuring your performance in providing “power by the hour” or “airplanes in the air” is quite a bit different than measuring on the basis of the number of monthly site visits, PM calls and asset uptime.


MARC TATARSKY, SVP MARKETING, FIELD AWARE
Undoubtedly, IoT has the potential to revolutionise field service in terms of moving to a predictive model of service, increasing efficiency, reducing cost while improving customer service. But any move to IoT is dependent on various operational factors. These include the prevalence of assets and existing IoT sensors, the ability to add IoT sensors to new sources to collect meaningful data and the technology maturity of the organisation and the FSM platform.

These factors can be dictated by numerous elements – company size, the industry and type of clients they serve, the complexity of the work, the value of assets and equipment they supply and service, and their leadership.

It is important for organisations to establish where they need to be in their operational and technological maturity to help the business thrive. For some companies transformative technologies, like IoT, are a key element of their planning and for others they may not figure at all.

RICHARD PRATLEY, MANAGING DIRECTOR UK, SIMPRO
IoT is fast become an essential service offering that customers will ultimately demand of their service providers and it  helps meet the requirement to deliver more for less for customers particularly for those installing and maintaining high-value assets!

When connecting these ‘Things’ to the Internet, using the live operational data and machine learning to analyse performance, it opens up the possibility of variable-based services based on machine condition and utilisation, rather than prescriptive frequency based visits and reactive calls.

This proactive approach can help lower TCO and increase uptime for customers and asset owners, whilst lowering the cost of operation and providing differentiation for the Service Provider. If you want to stay relevant in a competitive evolving market, now is the time to be considering how this technology can be incorporated into your own processes and service offerings.


The third part of The Big Discussion will be published next week. You can read the first instalment here.

In the first of a four-part series, 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. With responses from Bill Pollock, Strategies for Growth, Marc Tatarsky at FieldAware, and Richard Pratley from SimPRO, we look forward to what we can expect across the next twelve months.

2018 was a year in which we saw a number of significant changes move from the fringes of discussion within our industry to becoming an established part of mainstream discussion and in some cases fundamental parts of common place strategy within the field service sector.

The Internet of Things (IoT) for example, has become a staple part of field service delivery with many organisation having already adopted some layer of IoT technology which they are utilising within service delivery and the majority of those who have yet to take their first steps into connected field service are actively planning to do so in the not too distant future.

And as is often the case with technology in field service, the emergence of IoT in our sector, much as mobile did before it, has resulted in seismic changes into the processes and work-flows that underpin how we define service excellence. For example, we have seen servitization become an increasingly popular over-arching strategy for many manufacturers as they shift towards more customer-centric, service-focussed revenue strategies.

Even amongst those organisations who have yet to commit to a fully servitized business model, there are many who are shifting towards adopting a pro-active approach to service delivery, with increasing operational efficiencies and greater customer satisfaction two of the major benefits being heralded by such developments - which are again enabled and empowered by IoT.

Yet, at the same time other technologies that should be having positive impacts on field service delivery, in particular Augmented Reality (AR), have yet to evolve as rapidly, seemingly stagnating in the early adopter phase. Perhaps, 2019 may be the year we see AR finally emerge from its embryonic potential to also becoming a fully established part of the field service sector?

Or maybe, there will be other key breakthroughs, whether they be technologies, or strategies, that will shape the future of field serviceTo get a flavour of what we may expect across the next twelve months we’ve brought together a panel of experts to get their opinions on what to expect in 2019. We begin this series, however, by taking stock from last year.

Across the last twelve months what do you think has been the biggest shift in how we approach field service delivery?

BILL POLLOCK, PRESIDENT, STRATEGIES FOR GROWTH
The last 12 months have been quite a bit more active among global Field Services Organisations (FSOs) with respect to their acquisition and implementation of new technologies. For example, after having spent a number of years more as a perennial line item on an organisation’s “wish list”, Augmented Reality (AR) has gained a much wider acceptance, and is presently in use by more than twice as many FSOs as just a year earlier. In fact, the trend lines for AR adoption are have begun to increase at an accelerating rate.

We are now also seeing the further incorporation of Artificial Intelligence (AI) and Machine Learning into existing FSM systems.
As a result, many FSOs have already begun the transformation from the traditional break/fix model to the use of predictive diagnostics and AI-powered chatbots to facilitate and expedite.

MARC TATARSKY, SVP MARKETING, FIELD AWARE
We are seeing a convergence of technology capabilities changing how field service operations are being enabled. One of the key drivers of this convergence is analytics and a data platform that is empowering organisations to take insights from various new technologies (IoT, AR eg) and existing data within other Systems of Record to provide context and the ability to make “new” business decisions.

Field service organisations, due to the complexity of the operations, have always embraced technology and were early adopters of analytics. We are seeing an evolution of analytics in field service, moving from a need to turn data into information, to meaningful business insight and then to decision-making capabilities.
Over the past twelve months we are now experiencing a shift to a more strategic approach to business intelligence. Field service leaders are applying analytics to drive value-adding initiatives into the wider business, with customising service and product innovation, for example.

RICHARD PRATLEY, MANAGING DIRECTOR UK, SIMPRO
There are a number of external pressures that are aggregating together forcing business to make a shift and change about how they are approaching field service delivery.

All businesses are looking to do more for less thanks to a skilled labour shortage, pricing pressures on services, travel and resource and compliance cost increases and customer demand for value.

During the last twelve months, we’ve seen more field service businesses looking to streamline and automate their operations to enable them to scale up their workforce without adding in more resources.

The second part of the big discussion will be published next week, when the panel answer questions on IoT.

As part of an excellent analysts paper commissioned by ServicePower, Bill Pollock has provided an in-depth look at the service requirements for the security sector, here we take a look at an excerpt from that paper...

There are now more security systems players than ever, bringing refined ways of doing business and new efficiencies to the marketplace. In addition, there has been a complete transformation of the security installer/service technician into an “everything as a service” professional, supported by service delivery models that embrace Cloud technology, interactive services, predictive diagnostics and customer self-service.

The most successful companies will ultimately differentiate themselves with unique and seemingly indispensable services and solutions that make it easier for a consumer (or business) to be smarter, safer, and more cost-effective.

For those organizations that install, monitor, and maintain commercial or residential security systems, ServicePower enables faster, smarter service, so they can deliver on today’s consumer service preferences and expectations, while also reducing operational costs and driving new and more predictable revenue streams.

The five primary factors to focus on when evaluating alternative Field Service Management (FSM) and Warranty Management (WM) solutions for the security services segment are critical to the success of the vendor/solution evaluation and selection processes.

They include:

• Customer Engagement – by offering a customized, self-service portal to enable customers to log in with their account number and report issues or order add-on security services, schedule the appointment, watch their installer/ service technician en route, and communicate with him or her, if needed; also to suggest relevant new cross-sell and/or upsell services during this key interaction opportunity.
• Smart Scheduling – the ability to pair parameters such as skills, certifications, and geography with the latest in Artificial Intelligence (AI) for real-time scheduling to ensure that the best installer/service technician is assigned, at the least cost; and provide the opportunity to re-optimize schedules and routes in real-time to accommodate intra-day changes, increase on-time arrival and completed jobs per day, and decrease travel costs.
• Mobile Tech Enablement – to ensure that the installer/service technicians arrive with everything they need to get the job done the first time, driving consistent quality service delivery, improved productivity, and increased completion rates; also to provide a value-based experience by personalizing the customer’s experience via fully configurable mobile functionality which also improves schedule compliance and first-time installation/ fix rates, and proactively offer additional value-added security solutions while onsite to increase revenue.
• Contractor Management – to facilitate better management of outsourced or supplementary third-party contractor staff to quickly expand geographic reach or support changing demand; the ability to dynamically choose a contractor based on rank scores, credentials, crowd-sourced Better Business Bureau (BBB) info, and dynamic rules configuration; and confidently being able to book an appointment based on available time-slots, coupled with the ability to view the current job status and track overall progress.
• Reporting & Analytics – the ability to use real-time Business Intelligence (BI) to measure performance metrics, fine-tune future operations, and enhance the customer experience; along with the ability to access Key Performance Indicators (KPIs), scorecards and reports in real-time, from either mobile devices or the desktop, and share them both inside and outside the organization, as warranted.

The best FSM and WM solutions will also be those that include additional functionalities, such as:

• Claims Management
• Work Order Management
• Inventory, Asset and Contract Management
• Outsourced Managed Services

The main benefits that can be realized through the implementation and use of a Field Service Management (FSM) and Warranty Management (WM) solution designed specifically for the security services segment are many, and quite compelling, as follows:

• Improve management control over service provisioning
• Reduce manual processes to create and manage field schedule routes, thereby reducing travel times
• Increase appointments, per day
• Less time spent on-site
• Enable improvements in overtime, travel, skills, and spares
• Grow revenue
• Increase customer engagement
• Serve customers more efficiently with convenient scheduling, increased first-time installation/ fix rates, and improved service levels
• Use Business Intelligence (BI) to better measure and improve service operations KPIs
• Research has shown that for a typical Fortune 1000 company, just a 10% increase in data accessibility will result in more than US$65 million additional net income, according to Forbes.com.

These benefits, albeit on a smaller scale, can also be realized by small-to-medium-sized security services organizations as well.

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We've all know it for a long time, field service management is a rocking sector. Now Bill Pollock provides us with the evidence - rock on...

 

Whenever one of your service customers hollers “Help”, you not only need to respond quickly, you also need to Get It Right the First Time – because you certainly won’t want to waste the time and expense of having one of your field technicians Truckin’ to the customer site unnecessarily – and you also won’t want to have to Do It Again later! If you’re not careful, it will all be Wasted Time!

By the way, this is why many of the leading services organisations are incorporating Augmented Reality (AR) into their Field Service Management (FSM) solutions – because Every Picture Tells a Story, don’t it? With all of this “new” technology being integrated into FSM solutions supporting the global field services community, The Times They Are a Changin’, for sure!

For a majority of users, the decision as to which type and brand of equipment to acquire is based more on the quality of service that will be provided after the purchase, rather than on the acquisition of the piece of equipment itself. Plus, it’s not only based on Money, Money, Money – it’s more often than not based on things including Promises, Honesty and A Matter of Trust!

However, once selected, after the services provider asks the user to “Take a Chance on Me”, it will need to, first, make sure that its new customer has a Peaceful Easy Feeling, and that it hasn’t spent a whole lot of Money for Nothing (or you could end up in Dire Straights)!

 

"After the services provider asks the user to “Take a Chance on Me”, it will need to, first, make sure that its new customer has a Peaceful Easy Feeling, and that it hasn’t spent a whole lot of Money for Nothing (or you could end up in Dire Straights)!"

 

Further, whether the customer’s equipment is located in Allentown or Katmandu, the services provider must be sure that there Ain’t No Mountain High Enough to keep it away from delivering the services that have been promised. If you cannot cover all of the geographic areas where your customers’ (and prospects’) equipment is located, you may end up with an unhappy customer in Massachusetts, requiring your field techs to work weekends on Tulsa Time, finding a suitable contractor in Sweet Home Alabama, being stuck in Lodi (again), authorizing a costly flight to Kokomo, Going to California yourself – or even worse – having to deal with a Panic in Detroit! One way or the other, you’ll never want to hear one of your Colorado customers tell you to “Get Out of Denver”!

Communications is also a critical component of any services relationship – and the last thing you will ever need to experience with your customers is a Communications Breakdown! Customers will want you to be their “Nights in White Satin”, consistently being able to provide them with what they want, “Any Way You Want It”, so they will always feel Glad All Over.

Customers hate it when they call their services provider and get No Reply! There’s a Fine Line between being only casually responsive and treating your customers with a full measure of Respect – and you don’t want to cross that line the wrong way, otherwise, your customer will feel like “(I Can’t Get No) Satisfaction” and end up in Misery!

If you get your communications right with your customers, you’ll find that The Winner Takes It All (i.e., your services organization); but if you Try Too Hard, you might end up just Livin’ on a Prayer, waiting for another opportunity to make it up to them – and they may simply tell you, “Not a Second Time”! It’s also important to remember that even if your customers have already asked you 65 or 66 questions, you will still need to be prepared to answer Questions 67 and 68!

So, … if you consistently deliver the expected – and desired – levels of service to your customers, and your field technicians remain Cool, Calm and Collected with respect to managing their customer relationships, then you may be in it for The Long Run! If so, then Long May You Run (that is, in circles around your competitors)!

However, for every services organization that actually “gets it”, there are probably a dozen or so more that don’t! That’s why it is so important to make sure you properly train – and arm – your field techs (i.e., with mobile tools and accompanying technology, etc.) with everything they need All Down the Line, so they can satisfy their customers consistently, and go home every day after their last call feeling Free as a Bird and ready to Rock and Roll All Nite!

 

Bill Pollock, is President of Strategies for GrowthSM

 

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Bill Pollock reveals some of the key findings of this year's Strategies for Growth^SM  benchmark survey with a specific lens on the Uk and European market...

 

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Want to know more? Bill will be presenting the results in a webinar hosted by CSDP on Wednesday, 6 December, 2017; to register visit or to download a copy of SFG℠’s companion Analysts Take report, please visit the registration Webpage at: http://bit.ly/2zt4eu0.

 

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Each year, Strategies For Growth^SM (SFG^SM) conducts a series of Benchmark Surveys administered among its global outreach community.

The results of SFG^SM’s 2017 Field Service Management (FSM) Benchmark Survey, as they pertain specifically to the UK/Europe FSM market base, identify the following as the top factors, or challenges, currently driving Field Service Organisations (FSOs) to optimise field service performance (compared to the overall global results) – basically, they have been mandated by their respective managements to “meet customer demands” and “drive increased service revenues”, as summarised below:

• 50% Customer demand for quicker response time (less than 55% Global)
• 46% Internal mandate to drive increased service revenues (more than f30% Global)
• 38% Need to improve workforce utilisation & productivity (less than f50% Global)
• 38% Need to improve service process efficiencies (less than 39% Global)
• 23% Customer demand for improved asset availability (less than f29% Global)
• 23% Customer demand for more accurate service call scheduling (same as 23% Global)[/unordered_list]

However, while some of the key UK/Europe market drivers, such as customer demand for quicker response time and focusing on customer demand and workforce utilisation may be lower than their global respondent counterparts, the recognition that there is a need to improve service process efficiencies is pretty much at par with the rest of the world.

As such, it should come as no surprise that, similar to the 2017 global survey results, UK/Europe FSOs are still planning to invest more in new technologies in support of their respective field forces than other global geographies represented in the overall survey universe.

However, in order to effectively address these key challenges – and strive to attain Best Practices status – UK/Europe respondents then cite the following as the top strategic actions they are currently taking:

• 65% Develop / improve metrics, or KPIs, used to measure field service performance (more than 48% Global)
• 38% Automate existing manual field service processes and activities (more than 36% Global)
• 35% Integrate new technologies into existing field service operations (i.e., iPads, Tablets or other devices, etc.) (more than 31% Global)

These data strongly suggest that there is a pattern of synergy among the top three cited strategic actions that builds a foundation for all of the other actions that will ultimately be taken by the organisation; that is, that nearly two-thirds of the FSOs comprising the UK/Europe services community already recognise the need to build and/or improve their KPI measurement program.

In fact, the percentage of UK/Europe FSOs currently developing/improving their respective KPIs, at 65%, remains higher than even the 62% cited by the survey’s historical Best Practices respondents (i.e., those attaining at least 90% Customer Satisfaction and 30% Services Profitability).

Based on the current SFG℠ survey data, Jerry Edinger, President, CEO and Chairman of CSDP Corporation, a leading Service Relationship Management software developer, explains, “This is why we start every one of our client engagements with consulting.

We ensure that your business processes are designed correctly before automating them. Software alone cannot improve KPIs. We design the exact Field Service Management solution based on the needs and requirements of the organisation.

We detail how a solution automates the entire service delivery and customer service processes into a fully integrated field service management system and maps it into the overall enterprise workflow. Once the consultative effort is completed, we then have a detailed roadmap of how to build the most effective solution to meet the organisation’s field service goals and objectives.”

The 2017 SFG℠ survey results identify the following as the main factors that characterise the UK/Europe FSM market:

• The top future challenges for UK/Europe FSOs with respect to the acquisition and implementation of new technologies are essentially cost-related (i.e., ROI and TCO)
• The top future opportunity/benefit anticipated by UK/Europe FSOs through the acquisition/implementation of new technologies is improved customer satisfaction, primarily through the ability to eliminate internal silos, and provide customers with an end-to-end engagement relationship
• UK/Europe Field Services Organisations (FSOs) are largely driven to meet customer demands for quicker response time, and internal mandates for driving increased service revenues
• A nearly two-thirds majority of UK/Europe FSOs are adding, expanding and/or refining the metrics, or KPIs, they use to measure service performance
• Over the next 12 months, more than two-thirds (70%) of UK/Europe FSOs will have integrated new technologies into existing field service operations, and automated existing manual fields service processes or activities (70%)UK/Europe Field Technicians are increasingly being provided with enhanced access to real-time data and information to support them in the field
• UK/Europe FSOs are providing customers with expanded Web-enabled self-help capabilities (i.e., to order parts, track the status of open calls, and create service tickets, etc.)[/unordered_list]

 

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Want to know more? Bill will be presenting the results in a webinar hosted by CSDP on Wednesday, 6 December, 2017; to register visit or to download a copy of SFG℠’s companion Analysts Take report, please visit the registration Webpage at: http://bit.ly/2zt4eu0.

 

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Within the last twelve months we have seen a sudden rush of Merger and Acquisition activities within the field service sector with many major brands including ServiceMax, ClickSoftware and most recently ServicePower all being acquired. So why has the field service sector suddenly become such a hotbed for investment and what does it mean for the innovation in our industry?

Kris Oldland, Editor-in-Chief, Field Service News reports...

I’ve referred to field service as a sector at times as a ghost sector because despite field service impacting almost everyone, and it crossing across almost all verticals outside those who work within our horizontal sector the role of field service management and certainly the tools that those in this field use are relatively unknown.

Yet, it seems that over the last few years someone, somewhere has certainly started paying attention.

Of course, the growing trend within global manufacturing circles towards embracing servitization has put service front and centre whilst various projected estimates of the value of the Global FSM market ranging from $5BN to $25BN will of course be flagged up on the radars of money men, and it certainly seems that the field service sector has come under more of a spot light than it has in its recent past.

“This is occurring for several reasons,” explains Michael Blumberg, President of the Blumberg Advisory Group, when I asked him why it seemed Field Service Management providers had recently become hot targets for prospective investment.”

“First, field service businesses tend to be less susceptible to changes in the economy. During an economic down turn, new equipment sales decline but customers still purchase field services to extend the life of their equipment. In an upturn, companies continue to require field services to support investments in new technology.”

 

“Second, field service businesses often generate a recurring revenue stream (e.g., service contracts) which is also something that is very attractive to investors and also field service providers often hold a defensible market position because of their long-term relationship with customers and unique capabilities.”

“When a company acquires a field service provider they also acquire its customer base which provides a captive market for cross-selling and up-selling additional products and services.”

“Finally and most importantly, field service is usually a basic offering and building block in delivering a subscription based, product-service model (think Servitization) to customers.”

With so many key reasons why field service solution providers are an attractive proposition isn’t the recent run of acquisitions somewhat overdue?

Bill Pollock, President of Strategies for GrowthSM, certainly thinks so.

“It should have happened years ago!” He proclaims when I put this question to him.

“However, the acquiring organisations seemed to have other priorities in mind with respect to broadening and strengthening their existing offerings, and tailoring them to a more narrowing-defined market space.”

“For example, CRM vendors tended to focus more on expanding the functionality of their respective CRM platforms, while ERP vendors tended to do the same with theirs. Remember, there were days, way back when – when a Field Service Management (FSM) solution provided only the functionality required to run a services operation – but not a services business (i.e., no accounts payable/billable or accounting functionality; no reverse logistics; no human resources; etc.). In those days past, a services business would also need to acquire ancillary software packages (e.g., anyone remember Peachtree Software?) in order to manage the entire services business.”

 

“It’s a bit different today. As more and more software providers expand their offerings to run the entire business, they now market themselves as offering a “new” type of platform for doing so.”

“In general, it will be those organisations that move into (or buy into) the field services arena – for all the right reasons – that are most likely to be successful. That is, if a field service functionality makes sense as a logical extension of their existing offerings, then they will be more likely to succeed.

However, those that attempt to “ram their way” into what is already a fast growing and vibrant market sector, some without even having a complete FSM offering, will find themselves “busted” in the eyes of their targeted market base.”

Meanwhile, Sara Mueller, Field Service Portfolio Director, Worldwide Business Research believes that the fact that service has increasingly become a key battleground for competing companies is another key reason why the FSM sector as a whole is gaining more and more attention.

“Since many products have become largely commoditised, service is the competitive differentiator for organisations.” She begins.

“Therefore they are willing to invest in making service better. Technology is dramatically shifting the performance of service organisations, allowing them to grow exponentially, provide a more seamless experience that results in higher customer satisfaction, and even generate much higher profitability.”

 

“While technicians are an integral part of field service, technology solutions are necessary to minimise human error, capture the knowledge of and account for the retiring baby boomer generation of head technicians, even to keep technicians safer on the job.”

Mueller’s point however does perhaps reveal a potential double-edged sword.

Innovation in technology and service delivery have become wonderfully entangled within the last decade - which is why many companies have been able to move towards outcome based contracts, and why service is beginning to outgrow the ‘aftermarket’ tag and become a key revenue stream now being discussed much more seriously amongst the C-Suite.

This is of course a fundamental reason why our FSM solution providers have become such attractive investment options. However, could the very innovation that put the sector on the map dry up when independent, entrepreneurial tech companies get swallowed up by larger organisations?

Pollock certainly doesn’t think that we need to worry about the level of technology available to field service organisations failing to meet requirements at any point in the near future however.

“The currently available technology, coupled with newer technology that always seems to be lurking “just around the corner”, is already sufficient to meet (and exceed) all of the FSO’s requirements for managing their field service operations – and then some! It’s already here!” He comments.

“As such, the global services market is not likely to experience a plateau in terms of recognition, adoption and/or deployment of these new technological advances anytime soon. In fact, as the proliferation of technology appears to be eclipsing adoption by the marketplace, there is no plateau in sight. There is still a “mountain of growth” ready to be conquered!”

 

“This accelerating growth is likely to bring more FSM provider suitors to the forefront rather than less. For example, three or four years ago, how many field service managers thought that Microsoft would acquire itself into the fray? Many industry analysts missed the signs that Oracle was about to acquire TOA Technologies. However, with several major players already having acquired, licensed and/or organically entered the field services market, the question arises: Who will be next?

On the demand side, where has Apple been? What about SAP? What about any of the large, global, systems integrators? On the supply side, what, if anything, will ultimately happen with ClickSoftware? What about the “tried and true” historical vendors, like Astea? And what about all of those Venture Capital and investment firms that seem to be gobbling up one FSM vendor after another?”

Indeed, Mueller’s view also supports the assertion that the current technology is certainly sufficient to meet the growing needs of service delivery.

“The field service management technology today can accomplish remarkable results and drive business transformation. But service organisations are at widely varying degrees of adoption and sophistication, and are looking for more diversity in solution offerings in order to find the right choice for their priorities and budgets.”

However, she also sees the innovation at the heart of our industry as a key driver for continued technological innovation as well adding, “Just as customer needs keep evolving, FSM solutions will need to do so as well.”

And this latter point is also echoed by Blumberg.

“Sure, it is possible that innovation may become less of a priority as FSM vendors become part of larger software companies. However, there will always be lean, nimble, start-up companies focused on FSM that drive innovation and fill any void created by M & A.” He asserts.

 

“I’ve been a consultant to the Field Service Industry for over 25 year and have experienced several M & A cycles, and this is exactly what has happened. It is also very unlikely that innovation will plateau even within larger software companies who have acquired FSM solutions. To quote management guru Peter Drucker, business has only two functions… innovation and marketing.

This a basic tenant of business. Without innovation, companies lose their relevancy and competitive edge.”

So whilst the consensus is that the current M&A cycle won’t lead to any halt in the ongoing development of technology to support field service, one message does seem to be coming out of each of the field service providers acquired and that is reference to the future of FSM solutions being part of wider platforms.

But how far will the FSM platform go? Will we ultimately see FSM become as integral to business systems as ERP and CRM?

Mueller for one believes that this is where the future lies.

“It can be as integral to business as ERP and CRM systems.” She comments

“Given that service is a competitive differentiator for these organisations, FSM platforms are essential to provide the level of service now being expected from customers. The experience a customer receives through field service is often how they will shape their opinion of the product and whether they will buy again. Field service is the front line of the organisation and FSM ensures the experience with field service is ideal.”

Pollock, however, disagrees.

“For the time being, FSM will likely remain subservient, in most cases, to CRM and ERP,” he comments.

 

“The difference between an FSM solution and an FSM platform is that the former is essentially used to run the services operations, while the latter is used to run the entire business. As far as marketing and market positioning go, doesn’t “platform” sound more important than “solution”, anyway?”

“CRM-based solution providers have long touted their products as full “platforms” that may be used to run an entire business; ERP-based solution providers have essentially marketed their offerings in the same manner. By incorporating an FSM solution into their respective offerings, they can now all claim (and, probably, rightfully so) that their offerings represent a complete (or near-complete) platform upon which future services functionalities can be built – whether strictly in support of field service operations, or any other business activity.”

“However, it is not necessarily a “slam-dunk” that FSM will become as integral to business systems as ERP and CRM, as not all businesses have field service offerings – while all have (or should have) an ERP and/or ERP capability.

Further, as remote and predictive diagnostics, powered by the Internet of Things (IoT) and Augmented Reality (AR), make further footholds in the general services arena, running a field service operation may become more important, while become less cumbersome to run (and, as such, more likely to be outsourced, possibly, to a third party).” Pollock concludes.

“FSM software is already an integral part of business systems among those companies that operate Field Service as either a strategic line of business or a profit centre. And there’s the rub, many companies that service products do not have requirements for FSM functionality.” comments Blumberg.

“For example, some provide only depot repair or outsource their service requirements to 3rd parties. Nevertheless, I find it interesting that there are no fully integrated, end to end FSM platforms on the market today that include the complete array of functionality for managing a Field Service Organisations (FSO).”

 

“If an FSO wants to implement such as solution, they often must deploy multiple enterprise systems and point solutions from different vendors. In addition, FSM functionality usually needs to interface with other enterprise system platforms such as CRM, ERP, and most recently IoT to obtain critical data to complete the service transactions,” he adds before summarising.

“On the other hand, I certainly see a need in the market for standalone, functional robust FSM platforms. In fact, I have been advising both private equity groups (PE) and software developers for the last 20 years to make investments that achieve this outcome. Unfortunately, given market dynamics, capital requirements, and technology considerations, it unlikely that PE or software developers will invest the necessary resources to create such a platform.”

“Therefore, it is likely that FSM functionality will continue to remain an add -on purchase to existing enterprise systems.”

 

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Who are the most influential people in the global field service sector that you need to pay attention to in 2017?

The Field Service News #FSN20 is our list of the individuals we believe will be key influencers in our industry across the next twelve months. Those included in the list have been selected by our own panel of industry insiders, who were given the simple criteria of identifying people who will have a significant impact on field service thinking.

However, more than just an annual list of 20 individuals the #FSN20 has grown since it’s launch to become a true celebration of excellence and innovation within our industry.

There are some familiar names and some new faces on this years list and as always we don’t expect everyone to agree with our selection - at it’s heart the #FSN20 was conceived as a tool to get everyone in our industry thinking about who it is that they have come across in the global field service sector that has made them think, who has made them question the accepted paradigms, who has inspired them to do just one little thing more in their own day to day role.

The #FSN20 is not just about the list our panel has put together. It is about fostering discussion that celebrates the unsung heroes of the field service sector. So look out for the online version of this list as well to take part in the debate.

But for now, ladies and gentleman and without further a do, in no particular order, we are pleased to introduce the #FSN20 of 2017...

Mark Brewer, Global Industry Director - Service Management

Brewer is a new entry to the #FSN20 having recently moved to IFS from PTC.

The message from the IFS hierarchy was loud and clear when they held their last World Conference in Gothenburg towards the end of last year. Field Service was a key priority moving forward and their new owners EQT had every intention of pushing the Swedish company to keep doing what has made them a well respected brand within manufacturing and field service management circles - but do it bigger, better and to get to there faster.

Having taken the reigns of the service management division globally Brewer is set to figure prominently in the industry across the next twelve months.

 

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Professor Tim Baines, Group Director of the Aston Centre for Servitization Research and Practice

Baines retains his place on this years list and is perhaps he one person that has appeared multiple times on the list whose entry becomes even more deserved each year.

Baines has been at the centre of the servitization movement for as long as anyone and although many of his peers such as Neely and Lightfoot should share equal status for being the Godfathers of Servitization, it is fair to say that Baines’ work as a leading proponent of the servitization movement is as unparalleled as it is inexhaustible. The Aston Spring Servitization Conference which is the show-piece of the Aston Centre for Research and Practice continues to grow in terms of both audience and importance each year and it’s location in Lucerne, Switzerland this year is a testament to it’s growing status on the international industrial map. Whilst Baines’ would humbly point to the great team he has working with him at Aston, his role in the global shift towards servitization simply cannot be overlooked.

 

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Bill Pollock, President and Principal Consultant, Strategies for GrowthSM

Another that has been ever present on the #FSN20 since it’s inception and someone who is likely to remain on the list until the day comes where he retires, which given Pollock’s passion for the industry and seemingly eternal youth may won’t be any time soon!

Pollock is not only still a key commentator and analyst within our sector whose papers and features are not only widely read but also hugely respected, but he has been a mentor for a number of key figures within the global field service industry, including a number of other #FSN20 members, and also Field Service News’ own highly respected Editor-in-Chief, Kris Oldland.

However, Pollock’s inclusion on the #FSN20 isn’t just based on his past merits, his organisation Strategies for GrowthSM continues to provide some of the most detailed research and insightful analysis for the field service sector that is essential reading for any field service executives that wish to stay in touch with what is driving our industry forward.

 

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Thomas Igou, Editorial Director, Copperberg

Igou has been integral to Copperberg’s continued success and growth in the European field service conference circuit, In fact with five industry focussed events now running across the continent that should be of interest to senior field service and aftermarket executives, Copperberg are firmly established central pillar within the European field service community, and Igou sits proudly at the heart of that. In his role as Editorial Director, Igou is responsible for making sure the key topics in the industry are raised and the leading thinkers within our space are given a voice.

A key influencer within our industry.

 

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Mark Holleran, COO, Xplore Technologies

Under Holleran’s leadership Xplore Technologies acquired Motion Computing and became the 2nd largest manufacturer of rugged tablets in the world.

Holleran is a man who not only truly understands the different sectors his clients operate in but also who truly appreciates the importance of understanding his customers’ work-flows and therefore their technological needs.

A perfect case in point being the inclusion of a HDMI in on their XSLATE D10 rugged tablet, which makes it a perfect device for Telco and Pay TV engineers needing to test signals - which is exactly why it is there.

We don’t expect anything other than rugged tablets to be coming out of Xplore, but we do expect them to keep delivering best-in-class products in this form factor. As Holleran says “that’s what we do and we are the worlds best at it.

 

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Dr John Erkoyuncu, Through-life Engineering Services Institute, Cranfield University

Erkoyuncu takes over from Professor Howard Lightfoot as a representative of Cranfield University in the #FSN20 this year, however it isn’t just a straight like for like swap. Whilst the two worked together at the Through Life Services Institute, Erkoyuncu’s place on this year list is based primarily around the work he is doing in both industrial maintenance simulation and also augmented reality, and as such we believe he will be a key commentator and influencer on our sector in the years to come.

 

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Jonathan Massoud, Divisional Director & Market Analyst Field Service, WBR

Massoud’s role as Divisional Director at WBR puts him in control of a number of the industry’s key events including Field Service USA which is the jewel in the crown as the key point in the USA field service calender.

In addition to Field Service USA, WBR also run a number of important industry focussed events including Field Service Medical and Field Service Europe and in his role as Divisional Director Massoud is directly involved with each of the events and responsible for delivering industry leading content to keep field service professionals up to date with the key trends with in the industry. Massoud is also responsible for overseeing WBR’s research and a respected analyst within the sector

 

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Sumair Dutta, Customer Satisfaction Officer, The Service Council

Chief Customer Officer for The Service Council™ Dutta is responsible for new member acquisition, member engagement, community expansion, as well as the development and expansion of TSC’s Smarter Services oriented research agenda and portfolio.

He is also heavily involved in The Service Council’s ability to provide service executives the ability to benchmark their operations and also provide guided insight to improve service organisation performance through dedicated research programs. Dutta also plays a key role in building out TSC’s community platform focused on becoming the single source of information and networking for service executives globally and is a prolific author on the matter of field service.

 

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Click here to see page two of the 2017 #FSN20

 

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