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November 2, 2020 | 5 Mins Read

The #1 Mistake in Monetizing Your Service Transformation

November 2, 2020 | 5 Mins Read

The #1 Mistake in Monetizing Your Service Transformation

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 By Sarah Nicastro, Creator, Future of Field Service

Today’s manufacturers and service organizations have a wealth of initiatives underway to improve, evolve, and transform how they leverage service as a strategic differentiator and seize the opportunity that service provides. Top of mind for these companies is determining how to serve customers in a way that delivers increased profit margins and revenue growth. This is entirely possible, which is why the focus on service is so strong, but unfortunately companies can fall disappointingly short when it comes to execution.

I wrote an article not long ago titled “Is Your Business Structured to Seize the Service Opportunity?” that discusses some of the organizational and operational changes that are necessary to see success in shifting from a product-focused to service-centric company. It’s well worth a read as these points are very important, but besides these operational changes there’s a very common mistake I see company’s making that may surprise you – articulating their service transformation in a way that resonates with their customers. You may read this and say, “Wow, that seems so simple.” In some ways it is. But to this point, I’d say two things – first, it’s often the simple things that are most overlooked. Second, for a company that’s history is rich in product development, creation, selling, and delivery, learning to speak this new language of service is not as simple as you might thing.

When you’re coming from a product world and embracing this service future, you must learn a new vernacular. Selling on features and functionality shifts to selling on pain points eased and an intangible feeling or experience. The learning of this language has to happen first internally, by departments and functions and roles that may have little or no experience with such ideas. But then that language has to not only extend but evolve for its use externally. What I mean is, the way you articulate the value of your service transformation internally will be different than how you need to articulate the value of your service transformation externally. All too often I see companies using the same language for external stakeholders as they do for internal stakeholders and then wondering why the excitement for and adoption of new service offerings is nonexistent.

Here’s why: buzzwords and tech terms don’t matter to your customers. They couldn’t care less if you’ve invested in brand-new, world-class ABC technology that will make XYZ far easier. If you can embrace the importance of speaking in the language of your stakeholders, your service transformation will yield far faster and far better results. Internally, this gets discussed a fair bit when we talk about change management – you hear folks say that if you want buy-in from your employees,  you need to explain the change in the form of the “why” it matters to them and how it will help them. Companies that do this well see a big difference in how accepting employees are of a new way of working. The same idea holds true for customers – you need to communicate the advancement or new offering to them in a way that resonates.

Let’s look at a few examples.

IoT. Not long ago, I had a call with a service leader who was immensely frustrated at the response from customers around the company’s recent investment in IoT technology. He went as far as to say the project was a failure because customers just weren’t interested in hearing about what the technology could do for them. I was so upset for this gentleman! To think they’d done this great work of investing in IoT and had the perception it was a failure simply because they weren’t communicating its value in a way customers could understand and would find themselves excited about.

  • Instead of: “We are introducing IoT technology! It’s the latest technology in our industry that will let us monitor your assets remotely and provide more proactive and predictive * service.”
  • Try: “We’ve invested in capabilities that will allow us to find issues with your equipment before they ever become a problem for you! This will minimize equipment downtime and keep your productivity high.”

Augmented reality. We know that the benefits of AR are vast, but companies have been challenged in translating these benefits into revenue gains. In a COVID world, it can be tougher since in some cases AR has become the norm, at least temporarily. But, generally speaking, there’s huge value for your customers in your investment in AR.

  • Instead of: “Instead of coming to service your equipment on site, we can use AR to do so remotely! This eliminates a truck role and saves both of us time.”
  • Try: “We’re introducing remote service to be able to diagnose – and sometimes even resolve – your issue almost immediately. We can determine remotely what the problem is so that we can speed your resolution and have you back up and running far faster than ever before.”

Scheduling optimization. Migrating from a manual scheduling and dispatching process to one that’s modern and automated is often a significant investment and major change for service operations. But what part of that investment matters most to your customers?

  • Instead of: “We’ve invested in a new scheduling system so that we can get to more jobs per day and set tighter appointment windows.”
  • Try: “We know your time is precious! We can now tell you what time your technician will arrive, within one hour. Further, we can communicate with you prior to arrival so that you know not only what time he or she will be arriving, but his/her name and what to expect.”

These are just a few examples and, again, reading this it may seem oversimplified. It is, but my primary objective here is to get across the point that you don’t want to do all of this hard work of identifying a need or opportunity to transform your service in some way to better meet customer needs only to fall short in the outcome because you aren’t properly articulating the value of that change in a way that resonates with them. It’s a simple mistake with major consequences. It’s also a great illustration of why it’s so important to have cross-functional alignment on the service opportunity and how your company is going to seize it. You need a strong marketing team to create these customer-centric value propositions; you need a strong sales team to adeptly have these conversations; and you need a frontline workforce that embraces being the face of your brand.

October 30, 2020 | 3 Mins Read

How the New iPhone Could Change Service Delivery

October 30, 2020 | 3 Mins Read

How the New iPhone Could Change Service Delivery

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Tom Paquin

I’ll start this by saying I used to work for Apple, both in the retail space as a college student, and then again in business development while I was getting my MBA. Apple has always led the way in delivering exceptional service alongside premium products, from their support offerings, to their subscription services, to the physical structure of their retail stores. Servitization is the DNA of Apple’s 21st-century success (and, sacrilegious as it may seem, this has flourished under Tim Cook while it in many ways floundered under Steve Jobs) and it has set the standard for how to redefine retail for the digital age.

This is something I care about quite a bit, and I write about frequently, but this is not what we’re here to talk about today. Today we want to talk, specifically, about the implications that the new iPhone might have for service firms outside of Apple itself. This years’ iPhone upgrade cycle has introduced a feature that will have compelling repercussions for service, and that’s what we’re here to talk about.

The technology I’m talking about is not 5G, which I’ve already discussed, it’s LiDAR. This technology first appeared earlier this year in Apple’s iPad pro, so its appearance in an iPhone is not particularly surprising. But the increased portability and near-ubiquity of the iPhone means that suddenly this new tool will appear on many more job sites—and embedded in many more mobile service utilities.

So what is LiDAR? LiDAR stands for light detection and ranging, and what it does is shoot little lasers onto surfaces in order to create very detailed 3D renders. This CNET article has a number of very compelling examples of how this works in practice with the iPhone, from 3D modeling to simulating changes to the physical space with remarkable accuracy, to creating digital twins in real-time. LiDAR tech has been a key component in autonomous vehicles, drones, robotics, and wearables for years, but this is one of the first instances that the technology will be easily pocketable.

There are, with LiDAR, a number of interesting and compelling use cases for service. The most obvious is for remote assistance, which currently is enhanced through shared view using the camera itself. Enhanced projection and modeling will aid in accurately defining the space, helping to diagnose issues that may not be easily rendered through an image alone, and provide the ability to for remote technicians to interact with depth for on-screen instructions. This is a great way to minimize truck rolls and costs associated with service delivery while providing excellent outcomes for customers.

While we talk quite a bit about remote assistance, augmented reality can be a powerful tool for self-service as well, and with LiDAR, improved ability to provide overlays for directions would help dramatically improve the quality of step-by-step instructions. Here’s an example of how you could use it in your own life: Imagine you have a flat tire. Car companies are beginning to offer mobile apps for self-repair, so you download your app, point your camera at the car, and are taken through how to safely and properly replace a tire. With today’s technology, you usually line up one of the bumpers, and the overlay begins. But what if it’s dark? Or you have a dent in your bumper, or your kid slapped a bunch of stickers all over your car? LiDAR takes a burgeoning technology and potentially makes it foolproof.

I was recently doing some plumbing projects in my basement and I could easily see the application for tools like these. Take it a step further, and imagine lifting your phone below the floorboards, waving it around, then taking it and pointing it at the floor to see a 3D map of plumbing and electrical laid out above ground. That not only has applications for self-service, but for traditional service, too.

Will LiDAR be the killer app of the iPhone 12 Pro? Probably not for the average person, who will likely care more about the camera system, or possibly (though probably not) Dolby Vision. But in service, there is now a whole new toolset, and a lot of exciting potential. Let’s hope that service providers figure out how to elevate it for their customers.

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October 26, 2020 | 4 Mins Read

Carlsberg’s Recipe for Brewing Service Excellence

October 26, 2020 | 4 Mins Read

Carlsberg’s Recipe for Brewing Service Excellence

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 By Sarah Nicastro, Creator, Future of Field Service

Carlsberg is one of the world's leading brewery groups with more than 140 brands in its beer portfolio, including the international brands Carlsberg and Tuborg and strong local power brands, such as Ringnes in Norway, Lvivske in Ukraine, Wusu in China as well as craft and specialty brands such as French 1664 Blanc and the Belgium abbey beer Grimbergen.

Carlsberg’s service business provides installation, repair, and maintenance to its customers in the hospitality industry. In its highly competitive industry, Carlsberg is tasked with seeking ways to deliver precise consistency as well as continually finding ways to differentiate itself. To meet these demands, the company is harnessing the power of today’s digital tools in a variety of ways. “We sell both direct to hospitality and indirect to wholesalers,” explains Per Ahlmann Andersen, Global Business Solutions Senior Director at Carlsberg. “In both channels, our ability to maximize equipment uptime and ensure product stays stocked is imperative to our success – and today’s technologies enable us to achieve the greatest results.”

Differentiation in a Highly Competitive Industry

The beer industry is highly competitive, and Carlsberg needs to focus on creating synergies between the commercial relationship and service, maintaining visibility of its breadth of assets and product stock, and reacting quickly – preemptively, even – to any equipment issues. “Our service personnel visit customers three to four times more than sales – they are very much the face of our brand,” says Andersen. “As such, one important area of differentiation is investing in tools to ensure those service technicians have complete knowledge of the commercial agreement and a thorough view of the customer’s equipment.”

In addition to considering the field service impact on the customer’s journey and perception of the Carlsberg brand, maximizing equipment uptime and product availability is critical. “The importance of customer equipment being up and running to serve Carlsberg products cannot be underestimated as a marketing investment,” explains Andersen. Further, greater visibility into customer operations helps Carlsberg to hold customers to campaign compliance.

Carlsberg is in the process of incorporating IoT into its operations to optimize its own performance as well as that of its customers. “We’re using IoT technology to provide us insights on not only consumption and availability, but also the state of our draft equipment to be able to do predictive maintenance to secure no breakdown for our customers and to optimize our service work,” says Claus Hirsbro, Senior Director of Technical Service, Carlsberg DraughtMaster. While this an important step in the company’s digital transformation journey, Carlsberg needed a central FSM (field service management) solution capable of covering all business processes while offering an open and enabled platform to incorporate this IoT data.

The Complexity of an Asset-Centric Operation

Following a thorough vendor evaluation process, Carlsberg selected IFS FSM as a managed cloud service to support its field service operations and repair centers. In its initial phase, Carlsberg is deploying the solution to field and back office staff in Denmark, Sweden, Norway, Finland, Poland, and Switzerland with plans to expand globally. “Operational efficiency and visibility are crucially important to us as we grow our service business and continue to develop our offerings,” says Andersen. “The IFS platform will manage our service operations and also serve as a central repository for our inventory visibility and IoT data. We can house space and planogram insights, Digital DraughtMaster data, inventory availability and use the IFS platform to view and maintain all of our assets. We are a capital-intensive business with costly equipment in the field – having a single view of our assets, whether fielded at customer sites or located in our repair shops and warehouses, is hugely beneficial.”

The IFS FSM system will house all of Carlsberg’s IoT data and can use that data to automatically create a ticket and dispatch a technician when service is required. The tool also helps Carlsberg to better model across its services, from installation and refurbishment to predictive maintenance, break/fix and cleaning, to realize the cost elements and invoice centrally and correctly.  “With our initial deployment of IFS FSM, we expect an efficiency gain of between 10-15 percent,” says Hirsbro.

A View of the Future

Andersen feels that Carlsberg’s ability to digitize operations and master technology such as FSM and IoT will set the stage for Carlsberg’s service of the future as the Servitized world unfolds. “We are seeing the growth of hospitality chains, which compete based on cost,” explains Andersen. “As this increases, Carlsberg will need to incorporate more and more services into our offering to differentiate beyond beer. For instance, perhaps we’ll offer services related to the till, to location security, and so on. The futuristic view is delivering ‘beer in a box,’ if you will.”

“Another essential criteria for our foundational technology is the platform’s ability to allow us to scale and flex as our requirements evolve, whether that’s new geographies, new services, or incorporating additional technologies,” says Andersen. “IFS proved itself as a reliable technology partner for our current operations and for wherever our journey takes us from here.”

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October 23, 2020 | 3 Mins Read

Redefining High Tech Manufacturing for a Servitized World

October 23, 2020 | 3 Mins Read

Redefining High Tech Manufacturing for a Servitized World

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By Sarah Nicastro, Creator, Future of Field Service

Manufacturers of technical and office equipment have, just like manufacturers from other disciplines, embraced the importance of making service a component of their solutions. Offering service alongside traditional business practices makes a lot of sense for these companies—the overhead is low, the opportunity for subscription-based selling naturally increases, and there is implicit value in taking customer relationships beyond the transactional.

High tech manufacturers and sellers of both business and consumer products have embraced this approach, but with a massive diversity of devices and an uncertain geography to manage service appointments within, many manufacturers don’t know where to begin bringing service under one roof.

High tech service is by no means a new concept, as much service happens in an inter-office level, or by independent labor. Many businesses, hoping to own more of their customers’ perceptions of their products, are looking at ways to own more of that service directly, and deliver it as upsells and new products.

For manufacturers looking to extend their brand loyalty and product portfolio, delivering more service under a centralized banner is a great way to do so. On the consumer side, Apple has long been the gold standard of this, and while most high tech manufacturers don’t have a trillion dollars in the bank to build an international service infrastructure, there are many little things that businesses can do to servitize themselves. Here are three major considerations.

Exploit the lowered barriers for connected service
High tech manufacturing provides a much shorter bridge to asset connectivity than, say, industrial equipment manufacturing. This means that for businesses looking to increase internal service scrutiny, the ability to get an internal view on output and performance of their assets is often baked in. It’s possible that your business decides to leave it there—You have visibility into performance and service of connected assets, while others service products. Or—you can use that as a launchpad towards tools like remote assistance, which would allow a business to scale up service without hiring and training a global workforce of technicians.

Take advantage of your infrastructure
As stated previously, most high tech equipment has an embedded service team through office-led IT departments, ITSM organizations, and other third party servicers. While it’s certainly a viable option to allow these organizations to function independently, many manufacturers are seeing the value of taking this brain-trust and directly sanctioning it. This ends up being a win-win—it offers manufacturers a degree of quality control over the servicers of their products, and takes some of the onus of certification and business development off of the small business. Moreover, it allows manufacturers to offer subscriptions while deploying technicians of their choice on their terms. Many firms hybridize these workers alongside home-grown servicers. To do this effectively, it’s important to consolidate service appointments, and planning and scheduling into a unified system. This helps organizations learn from service interactions, and keeps all customer touchpoints under a singular brand banner, and the data of those appointments managed in an internal system.

Bring it under one roof
We’ve talked about the embedded asset monitoring tools within manufacturing devices, and we’ve talked about the embedded knowledge among third-party labor and in-house servicers. As alluded to previously, for businesses to get the full value of servitization, these systems need to be interconnected. As I say all the time, your field service management needs to be the grand central station that these external elements all pass through. This allows for the management of labor, parts, assets, work, and customers under a single banner. Doing so minimizes operating costs, arms employees with the right tools to sell and manage assets, and brings all operations back to the core of delivering for your customers.

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October 19, 2020 | 4 Mins Read

Why Knowledge Management Demands Prioritization in Your Digital Transformation Journey

October 19, 2020 | 4 Mins Read

Why Knowledge Management Demands Prioritization in Your Digital Transformation Journey

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By Sarah Nicastro, Creator, Future of Field Service

I’ve taken note of a recurring theme in many of my conversations with service leaders in recent months: the prioritization of knowledge management within their digital transformation roadmaps. While knowledge management has long been considered “important” to some degree, this increased focused makes sense when you pause to consider a variety of factors at play within service that are shining a light on the need for a strong knowledge management program.

First, you have what is often referred to as the talent gap – experienced workers retiring at a far faster pace than companies can bring newer talent on. When these experienced workers leave the workforce with much of the knowledge they’ve gleaned over a lifetime’s career only in their heads, it presents a real problem. The ability for companies to capture this knowledge in a way that allows them to retain it once these employees have departed and make it consumable for others within the organization is becoming increasingly critical. Furthermore, access to knowledge has been linked with employee satisfaction – technicians are happier doing their jobs when they know they have the information they need to do them well the first time.

Second, there is the trend of the use of third-party field service workers. The need here isn’t all too different from the first – when you’re relying on resources to execute your work that don’t (yet) know your businesses, the need for an effective way to provide them with the knowledge they need to get the job done is very important. With a strong knowledge management system in place, the process of getting third-party resources up to speed, and your comfort level that they will be able to conduct the work with all necessary insights at their fingertips, is vastly improved.

Finally, knowledge management has a significant impact on productivity. In fact, in a recent TSIA report, it was found that knowledge management had a huge impact on performance, with a 50% reduction in mean time to repair. Access to knowledge improves MTTR and first-time fix, which has a positive impact on the customer experience (as well as the employee experience, as stated above).

For these and many other reasons, there has been more buzz this year about knowledge management as a key focus area for digital transformation efforts. I think service leaders have come to recognize the wealth of knowledge their employees hold and the importance of capturing it, as well as the benefits they stand to gain in making knowledge readily and easily available to their workers. As you evaluate your knowledge management initiatives, keep these three focus areas in mind:

  • Knowledge capture. Companies are usually focused on two areas: the process of digitizing and expanding access to company information (manuals, product information, company history, etc. – any company-held information or resources for technicians to use on the job) as well as the ability to capture the insights of the workforce in a way that makes them accessible to others. I would say that, overall, companies have made more progress in the first category than the latter – despite the latter being arguably more critical. Employee knowledge can be captured through technologies they use – service management solutions, AR, communication platforms, etc. as well as through more hands-on methods. You want to consider what areas of knowledge are most important to the business, examine what you’re most lacking, and look at how you can work to capture that knowledge to incorporate it into a knowledge management platform.
  • With a knowledge library built, you next need to think about accessibility and consumability. When you set a new employee up with access to the knowledge management system, how easy is it for them to find what they’re looking for? AI has some really great potential here in matching content, and even suggesting content, to different scenarios. The point around consumability is that the act of capturing knowledge doesn’t do you much good if that knowledge is not easily consumed by someone at the point at which it is needed. You want to think about how content will be accessed by mobile devices, how easily searchable it is, how the tool uses AI/ML, and so on.
  • To get the most out of knowledge management, you need to think about all the ways the information and insights captured will need to be used and ensure the knowledge can be transferred appropriately. For example, besides the consumability of content on the job, can it be used for training new employees? Is the content available in multi-format options, for those that learn differently? Does the system provide analytics on what is being accessed and when that you can use to determine what further training and insights may be beneficial to your employees?

This is an area that is exciting because it provides a wealth of opportunity, particularly as companies evolve their service offerings and expand what the role of the field technician entails. If you’ve made some strides with your knowledge management efforts, I’d love to talk about it!

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October 16, 2020 | 3 Mins Read

Industrial Manufacturers have Embraced Service. What Comes Next?

October 16, 2020 | 3 Mins Read

Industrial Manufacturers have Embraced Service. What Comes Next?

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By Tom Paquin

Manufacturing firms across a variety of disciplines have been looking for ways to implement more service-oriented solutions into traditional manufacturing processes. This true for organizations that work with capital and industrial equipment as much as it is for any other manufacturer, but for industrial manufacturers, there are a variety of unique challenges that must be considered.

Industrial assets—especially those that will become part of a broader manufacturing workflow—exist in a more mature service market than some of their manufacturing peers. As tools that are largely leveraged in business environments, the need to provide thorough service is much more than a courtesy. Broken assets means money out of the pockets of your customers, so offering detailed service plans, especially if you can guarantee outcomes around things like uptime and output, are the path forward. These new outcomes-based business models will ultimately define the future of field service for industrial manufacturers, and many businesses are already embracing outcomes today.

The actual requirements and technical specifications necessary to embrace outcomes-based service will invariably differ from use case to use case, but the bottom line is that to offer contracts around guaranteed performance, manufacturers need to have the internal capabilities to measure and validate performance among often complex systems. Bridging that gap requires some mechanical and operational forethought, as well as a robust and full-featured service management utility that is capable of managing extensive and complex assets, processes, and workflows. Here are some considerations for how to do this correctly:

Consider Your Framework for Connected Assets
Thinking specifically about the assets that you manufacture, what are the current internet-enabled capabilities built into these systems? Saying that you should consider incorporating connected sensors in your products is easy for me to say from behind my computer. It requires a lot of pre-planning and forethought, and requires the synergy between product, planning, procurement, and numerous other fields. There are, however, plenty of sue cases to pull from to better prepare yourself. Making smart moved with respect to IoT, whether it’s before or after you deploy best-in-class service software, will pay dividends in the long run.

Predictive Maintenance is King
An obvious corollary to connected assets is the potential of predictive maintenance in service processes. This requires that your connected assets be compatible with your service software, and that your service software have the implicit power under the hood to deliver predictive insights. How does your asset management system connect to your service management system? Is there a seamless handoff so that appointments can be quickly and easily scheduled? Predictive is a naturally complex process, and getting it right requires the answer to these and many other questions.

Clean up Your Data
We see a surprising number of businesses who discover that they’ve built biases into their data collection. Whether it helps them make it seem like uptime is higher than it is, or that they’ve hit a higher SLA rate than they actually have, sliding scales eventually break. When they do, your customer will wonder why it appears as though you’re hitting their outcomes while their own performance lags behind. Resolving this requires a combination of deep data auditing, from outside practitioners if applicable, and the implementation of smart data inputs to begin with. It could be what keeps customers invested in their outcomes contracts.

Get a Holistic View
I’m quick to point out the importance of tying internal systems together, and we’ve talked a bit already about how service needs to touch asset monitoring for businesses to be able to properly gauge the outcomes that can be offered to customers. For all of this to work properly, your service management software needs to be the grand central station through which everything passes through: You asset information, your parts data, your service-level agreement criteria, and so on. This is the lynchpin to successfully embracing outcomes-based service.

While outcomes-based service is a fantastic benchmark, if you haven’t started on your servitization journey, it will certainly inform it. The good news is that the power that best-in-class service software offers for outcomes-based service is just as applicable to the beginning of your service journey, and if you start out with an outcomes-based mindset, you’ll be ahead of the pack right out of the gate.

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October 12, 2020 | 9 Mins Read

APi Group Shares 7 Best Practices for Field Service Software Success

October 12, 2020 | 9 Mins Read

APi Group Shares 7 Best Practices for Field Service Software Success

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By Sarah Nicastro, Creator, Future of Field Service

We know that the advancements in capabilities, sophistication, and usability of today’s field service software solutions are impressive. But we also know that, regardless of the strength of software selected, there are many opportunities for projects to go awry during implementation that have little to do with the software itself. Despite the best of intentions, companies can find themselves in a quandary during deployment.

Recently Katie Hunt, Service Operations Leader at APi Group, joined us on the Future of Field Service podcast for a discussion fresh off of the company’s software upgrade. If you’re not familiar, APi Group is a business services provider of safety, specialty, and industrial services in over 200 locations with more than 15,000 employees worldwide. Katie led the team on the software upgrade and, having just wrapped, had some really insightful best practices and lessons learned to share.

Best Practice #1: Know Your Why

Katie’s first piece of advice is to have a clear vision for the project. “Identifying your why is so important because it not only lets stakeholders know why we're doing this project, but then it also serves as a benchmark for project efforts. So, you can avoid that scope creep, and you can make sure you're staying on task,” she says.

APi Group’s most recent software deployment was an upgrade of its Alliance solution for which the company’s initiatives were to standardize processes, move to a hosted environment, and to set the groundwork for scaling the business. “Being clear on your goals allows you to then communicate effectively throughout the organization and really just maintain that focus and discipline and ultimately compare all of those decisions back to that strategic vision and keep the project on track,” says Katie. “It is so important to know that the whys might be different for different cohort groups. We have a very large organization, and when I'm communicating, and my team’s communicating to executives, it's a different message sometimes than the end user or the branch level professionals, which is fine. But ultimately, they all need to tie back to that strategic vision, so that they're all in alignment.”

Best Practice #2: Define Your Project Team

During your project, it’s critical to obtain input and feedback – but it’s also critical to ensure that the responsibility of driving the project forward is clearly defined. “This project was unique, in that we really relied on the operating companies to provide insight and guidance and decision making across the board. We had a unique structure with a service steering committee, where we had one representative from each company,” explains Katie. “They came together, and they really made the agreement upfront that this would be the decision-making body. Even if everybody didn't agree, we would move forward with the decision of that committee, so that we could standardize processes. And, so, although we had great discussions and sometimes people didn't agree, we were able to make those decisions and move forward. It really took the ownership off of APi Group and put that on the companies to drive this change forward, which big success overall.”

On the other hand, APi Group learned it could have benefitted from a dedicated project manager and some additional resources. “We had the core team, which was very lean, including myself and about four other key team members,” says Katie. “We did learn that we could have used a couple more people, not only a dedicated project manager to delineate the project management from business decisions, but also just having an extra set of eyes for different perspective. So that was a lesson learned.”

Best Practice #3: Develop Guiding Principles

As your project hits the inevitable ebbs and flows, and rest assured it will, you need to know exactly what to stay focused on. To this end, Katie suggests developing guiding principles. “We defined four guiding principles. The first one was maintaining focus on end user needs. We didn't want to have a holistic technology solution that didn't meet what the end user needs from the field professionals to those office leaders that are really the ones executing the work,” says Katie. “Our second one was being open to changing processes. Change is hard, but we know that we all agreed, hey, we might have to change our processes. We're doing this for the betterment of the group. And that was just an agreement up front. The third one was leveraging the ideas and suggestions of the service steering committee, which we've already discussed, which worked very well. And then the last one was valuing time over process changes. What we were saying with this is, our go live date needs to be met, despite all the process changes being fully complete.”

Having these guiding principles in place at the start is important to keep clear on what you’ve defined as most important, because competing priorities are sure to arise. Your defining principles don’t negate additional priorities or opportunities from being incorporated but ensure that you stay focused first on achieving the principles you’d set. “As we grew closer to go live, we had a list of items that had not yet been implemented. And we prioritized, made sure we hit those really key items, brought them forward before go live,” explains Katie. “And we're still working in sprints after go live, to continue to refine the system. So, we wanted to view go live not as a stopping point, but really as something we could continue and use as a springboard to keep developing our processes, systems, et cetera.”

Best Practice #4: Testing, Testing, Testing

Katie explains that there’s truly never enough time to test enough and success is a balance of ensuring you’ve done enough, in a variety of manners, to feel confident without holding up forward progress. “Testing: we love it and we hate it because there's never enough time for testing and there's so many different methods of testing. And it's just so crucial,” says Katie. “I would say one thing I learned that I did not know going into this project was how many different methods and different types of testing you could do, from the load testing to the off-road testing, to the scripted testing, to automated, there's just a whole gamut of how you can test the system. It’s important to have a really, really solid plan for testing. Before I came on board, the team already had an excellent script of testing items and what we needed to do. So, we had a really good baseline that we could springboard off of and then we just wanted to make sure that we put the system through the paces and tested as if we were conducting real-world operations.”

Katie notes the importance of not just testing but rehearsing. “Rehearse like you want to actually execute. It's like a military thing. I would say that's one thing that we did well, especially with rehearsing the actual cut-over, but also with testing,” she explains. “One thing that I would suggest that had been used at APi Group before I was on board was the testing matrix and really holding the companies accountable for not only who has tested, but when and what. Because if you have a whole group that focuses just on one end of the testing and you miss the portion where you need to invoice the work order, rather than just create it, you have a gap in the testing. So, by spreading it out and having the end users do the testing and staggering it correctly, I think it's very, very beneficial.”

Best Practice #5: Provide Ample and Effective Training

When Katie and I outlined our podcast discussion, I was quick to group training in with change management – and Katie was sure to point out that it is absolutely important to stand on its own. “I’m very proud of how our team handled training. We created videos within our LMS system with APi Group. We kept them short, no more than five minutes, because the attention span of most people is not more than that when watching the training videos. And then we also made cheat sheets. We made quick reference guides that folks can print off on a one pager for key topics, put it in a little folder, or guys can throw it in their trucks, as they're out on site, and just references as needed. And then lastly, we did make those user manuals that are very in depth. They have screenshots, they answer those tough questions, deep dive, and really, people can search them and use the PDF and that kind of thing if needed,” describes Katie.

So APi ensured there were a variety of formats of tangible resources, but also prioritized live trainings and encouraged interaction. “We had weekly live stream trainings. This was a suggestion by one of our steering committee members, and we essentially dedicated a topic each week, and we opened it up on Teams where people could just ask questions through chat,” explains Katie. “We had really good participation! I think week after week, about 150 people would log in, ask questions, and share ideas. And I think having that service community through our team's page has just been a really good benefit, but we are going to continue to take those trainings and use them for onboarding new users and then refine them, probably quarterly as we move forward, just as a continued resource.”

Best Practice #6: Don’t Skimp on Change Management

If there’s one thing I’ve learned in my years of covering this space, it is that software projects often fail due to the tendency to de-prioritize or under focus on the criticality of change management. “Change is never easy. And I really think, even though this is a very intangible part of the project, it's one of the most important, just because it often gets pushed to the side when the budget gets tight, or you're short on time,” agrees Katie. “This is definitely something we did not want to lose focus on. And we did have times where we slipped; everyone does.”

One critical aspect is ensuring that your stakeholders feel invested and take ownership, and this is accomplished through early and often communication, explaining the “why” and how the change will benefit them, and allowing time and opportunity for feedback. “Our strategy overall was not to push this on the companies, but to have the companies take ownership. We are 100% there to support, assist developing these training tools, develop the testing, outline the plan. But for a three-person, four-person team, it's not feasible to train and really manage that change for 20 companies, 3000 users,” says Katie. “We did everything in our power to explain the why behind these changes. And if they had pushback, if they had feedback, we would listen. And there were times where we didn't make a change, or we've switched the processes, but we did that in a standardized manner to make sure that everyone was in alignment. We constantly tried to solicit feedback, really tried to over-communicate whenever possible, and focus on what I think is the most important resource of the project; the people. No matter the technology, no matter the system, if the people don't support it, and the people don't understand why, and they aren't getting what they need to conduct their work and be successful, the project's ultimately going to fail. We wanted to maintain communication and really just make sure that people understood the why of the changes and how it helped them personally, not just the company overall.”

Best Practice #7: Set KPIs to Measure Progress and Success

You won’t know how far you’ve come if you don’t know where you started. “This is one thing we definitely could have done better, and I think it circles back to our team structure with individuals filling multiple roles. We had one individual that was the project manager, as well as the business process lead. So they're not only managing logistics, resourcing, budget, but they're also doing the process analysis, business decisions, and architecture. And having that, something's going to slip through the cracks,” explains Katie. “The downstream effect of that was that we did not really have project KPIs. Our BI and metrics team has done a phenomenal job of creating operational performance metrics. But in terms of the actual project itself and key milestones, I think we could have done a better job measuring those milestones and KPIs and actually having other KPIs rather than just on-time and o- budget, which is what most people focus on. We could have been more granular and had more holistic KPIs and to do that I think it is important to make sure that you have somebody dedicated to that aspect of the project.”

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October 9, 2020 | 3 Mins Read

Key Service Considerations for Medical Equipment Manufacturers

October 9, 2020 | 3 Mins Read

Key Service Considerations for Medical Equipment Manufacturers

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By Tom Paquin
Manufacturers across the board are waking up to the potential of servitizing previously product-oriented businesses, building out their book of business with service and outcomes-based solutions. For manufacturers who build and sell medical devices, the opportunity is certainly just as apparent. While some customers expect systems and assets to work as expected, medical workers often require uninterrupted utilization in order to keep their patients safe and meet the unique day-to-day challenges that they face. Issues need to be resolved quickly, and service technicians need to work around the diverse, and often inconsistent needs of the business. Getting this right is a daunting task, but one that certainly pays dividends. It starts with a smart approach to technology, and a solution-oriented mindset.

For many medical device companies considering how service technology fits into their business, they naturally assume that custom implementations will ultimately be required in order to meet the demands of a complex and bespoke type of manufacturer. The truth is, though, that smart service management software is designed to be configured to the contours of your business, rather than requiring the time and complexities that come along with customization.

To get this right, it’s important to focus on the right set of capabilities for your business. There are invariably a huge variety that are worth considering, but based on what we’ve seen, there are some common challenges that can be remedied with powerful solutions. I like to pick elements from each stage of the service lifecycle to frame some key capabilities around. To do so, let’s look at these four:

Connected Assets: IoT-enabled capabilities have come a long way from emerging technology, especially in med devices, and the ability to proactively resolve issues before they arise is paramount to the successful operation of many businesses. For example, when it comes to centrifuges for clinical labwork, connectivity to internal systems is the difference between samples aging on a shelf or being actioned effectively. Knowing the status of systems proactively can make sure that organizations are always working at full capacity.

Service-Level Agreement Compliance: Making sure that you’re meeting SLA expectations for medical device manufacturers can be a life-or-death situation in many cases. For that reason, it’s imperative that when service arises, that any SLA requirements are immediately triggered in order to ensure that you’re meeting any contractual outcomes, resolution targets, and privacy requirements through scheduling, delivery, reverse logistics, and invoicing. Getting this right means building your systems around service—not bolting service on to an abstract set of applications. SLA compliance can be tricky when integrating customers into a new service system, but getting it right at the beginning, and building in triggers that inform and enhance all of your service systems, can make a huge difference in the quality of your service interactions.

Optimized Appointments and Planning: In light of the fact that you’ll need to manage and mitigate service issues as quickly and effectively as possible, getting service optimization right is the first and most important step. A good optimization engine combines scheduling capabilities with parts management and technician management to ensure that all elements are working in tandem. Best-in-class optimization goes way beyond one-day scheduling, too, building in the capabilities for simulations, as well as the ability to build multi-time horizon planning to manage demand, headcount, scheduling, and parts allocation by day, week, month, and beyond.

Consumable Management: Medical device manufacturers have a unique relationship with consumable management, and doing it right requires that many of the previously-cited capabilities be in sync with expectations of the business. Especially when dealing with hazardous materials, managing removal and disposal is, for many organizations, a need-to-have. To do this correctly, comprehensive reverse logistics can be the silver bullet. Best-in-class systems help you mange not just routing and depot repairs, but sunsetting of all materials that your service workers come into contact with.

There are obviously a wide arrange of additional considerations for medical device manufacturers to keep in mind when mapping out their service plans, but these are some of the issues that we see come up repeatedly. Getting service right for medical device manufacturers often requires more careful planning, but when it’s in place, it can make a huge difference.

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October 5, 2020 | 4 Mins Read

Best-in-class Servitization in a Post-pandemic Environment

October 5, 2020 | 4 Mins Read

Best-in-class Servitization in a Post-pandemic Environment

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Brad Soper and Dave Clement

Prior to the COVID-19 crisis, companies across sectors were moving toward service-based strategies due to a number of challenges such as commoditization, price pressure, technological disruption, stagnant growth, and untapped market potential. Over recent months, and due in large part to the pandemic, priorities have continued to shift, making servitization more relevant than ever.

As a global consultancy focused on topline strategy, we at Simon-Kucher & Partners recently surveyed more than 200 commercial function leaders across multiple countries and B2B industries in June to understand the revenue impact, performance drivers, and key benefits of service-based strategies. Our global survey not only reveals the importance of services as a future source of sustainable growth, but also explores the success factors across the servitization journey, from one-off transactional services to full service solutions.

Impact of service revenues in the near future
A key aim of our survey was to explore the revenue impact when companies move away from the traditional product-centric model and switch some or all of their focus to services. We found that an impressive 95% of firms plan to more than double their service revenue over the next three years, with the greatest absolute potential seen by electronics and machinery companies —the two industries with the largest shares of service revenues today (12% and 19%, respectively).

The survey also revealed that revenue growth potential for companies depends on the type of service offered. Introducing one-off services for transactions such as delivery, customization, and spare parts can increase a company’s revenue by up to 130% (from 7.0% of revenues today to 16.1% three years from now). Contractual and recurrent lifecycle services, such as predictive maintenance, insurance, and repairs have the potential to increase revenues by up to 93% (from 12.9% of revenues today to 24.9% three years from now. Full service solutions, which drive the greatest share of service revenue today (16% of revenues), still have significant potential with an outlook of increasing revenue by up to 102%. Meanwhile, our study also showed that chemicals and building materials companies currently see the lowest shares of revenues coming from services (3% for each), but expect the fastest growth (181% and 211% respectively) in the years to come. So what can companies considering additional servitization learn from the top performers in our study?

Performance drivers and key benefits experienced by service “winners”
Top-performing companies confirm that the greatest benefits come from rolling out full service solutions as opposed to transactional services. These benefits include improved customer retention, financially more attractive offers, and better monetization of performance. However, key to their success is their close relationship with end-users. In particular, companies with the strongest aftersales report the highest service revenues, e.g. machinery (19%) and electronics (12%), providing a benchmark for industries that are looking to grow through servitization. Finding ways to get closer to end customers, e.g. through direct sales, end customer training, data delivery, etc. will be crucial.

Despite the aforementioned benefits, our survey also found that four in five companies struggle to charge for services in general, with the number one driver of ineffective monetization being the fact that companies often think service delivery is a cost of doing business despite its ability to be utilized as a differentiator. It cannot be emphasized enough that what is given away for free has no value. Improving monetization is crucial to unlocking value and achieving revenue growth.

For those attempting to monetize their service offering, customer openness was named as a significant implementation hurdle.  As such, improving sales capabilities and defining the best revenue model is critical for adoption. We find that less successful companies underestimate the direct link of offer design and price metric (rather than price level) to drive penetration and user adoption. As customers find it difficult to estimate costs, removing this main purchasing barrier should be a top priority.

Servitization is a journey, but you can start tomorrow: Simon-Kucher’s five-step servitization framework
In response to COVID-19, it is likely your company’s priority is to keep cash on hand and mitigate risk as much as possible. However, growth is still important, and servitization is here to help. Even the smallest changes in basic services can mean quick-wins for cash generation and the beginning of your servitization journey, with the ultimate goal being full service solutions. Companies have switched from selling jet engines to selling flying hours, from selling cranes to selling moves, or from selling tires to kilometers traveled. Our five-step servitization framework is there to support you at every step:

  1. Strategy and segmentation

Definition of customer needs and alignment of needs with market opportunity based on market trends and competitive analysis.

  1. Design and offering

Creation of service portfolio and designing service packages to meet key needs of customer segments.

  1. Monetization model

Aligning on price model, metric, and level based on service value and customer willingness-to-pay.  How you charge is as or more important than how much.

  1. Go-to-market and value selling

Defining roles and responsibilities across the organization and empowering sellers via value selling training.

  1. Process and IT systems

Managing the subscription process via ERP/CRM/ CPQ integration.

The majority of surveyed companies agree: especially now, in times of no or slowing volume growth, servitization is key to providing a new, long-term source of profitability. Many sectors have already adopted service-based strategies and revenue models and are now exploring ways to optimize them. What about your company? Are you going to wait until next crisis for the servitization shift?

For more detailed insights from Simon-Kucher’s Servitization Study, reach out to Brad Soper and Dave Clement today.

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October 2, 2020 | 4 Mins Read

Back to Basics: Implementing New Service Software

October 2, 2020 | 4 Mins Read

Back to Basics: Implementing New Service Software

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By Tom Paquin

This is part of an ongoing series on the state and standards of service management software in 2020. Here are the previous articles in the series:

This week, we’re looking at how an organization would implement a new service management platform to replace (mostly) manual processes. While many larger organizations generally have a solution in place today, under many circumstances, even those solutions are more of a hodgepodge of utilities than a unified platform. Moreover, as businesses in traditionally product-oriented fields pursue and expand service functions, as has been an ongoing trend, more businesses will need to unwrap service management software for the very first time. And of course smaller businesses who have relied on pen and paper are understanding and embracing the importance of software for their own growth. Today’s Back to Basics are for those groups (we’ll cover transitional software next time).

There are no shortage of shapes and permutations that businesses can take on their road to success, so mileage will inevitably vary. But, as we always say around here, there are a few key components that will tie organizations together when they’re looking at a solution for the first time.

Map Every Millimeter of your Workflows
Last year, I reiterated an old Harvard Business Review case study that has been jangling around in my head since business school, but it’s so obvious a failure point for businesses implementing new tools that it’s easy to overlook. You need to understand every single element of what your service technicians, backoffice, and depot employees are doing before implementing a new tool. This ensure that the software that you’re employing actually solves the real problems that employees are having, doesn’t overextend into nonexistent issues, and is a tool that will actually be employed on a daily basis.

There are a few key ways that you can make this work. One obvious element is choosing a development framework that involves frontline workers from the get-go. This will ensure not only an understanding of their duties, but also help make them advocates for the new software. Furthermore, as noted in the article referenced above, rollout should be an event, with iteration and feedback loops an element of standard protocol. This makes sure the software if giving employees enough cover, and doing in in a way that organically works alongside their job requirements.

Make a Sunset Plan for Redundancies
So you’re implementing a full-featured service tool, which has all the backoffice capabilities that we discussed last time. However, you had previously been running a customer engagement tool designed for small businesses that indexed all your customers, saved their payment info, their work history, and so on. This is now a redundant tool alongside your broader software investment. What do you do? Do you cut and run, forcing customers to re-enter their data manually? Do you continue to use the old tool, running (and paying for) software that does not integrate? Do you port over the data and sunset the old tool? Do you find a way to integrate the old tool into the new one?

There are options, and I’m not here to recommend one in particular (though I definitely would not recommend cutting your customers off, or running redundant systems). The important thing is to have a plan. Must you manually transition system information into the new platform? That would be an awful nightmare, but there are tools to help support that, and with that information in mind, you can build a realistic sunset plan for your older software. Regardless, your goal, and we’ve discussed ad nauseam, is a completely connected system of tools. No redundancies, no crossed wires, no cut wires. Who can help with that? Well…

Consider Implementation Partnerships
While they’re somewhat invisible to the daily discourse on Future of Field Service, we do talk to partners on here from time to time, and write about them as well. Typically, your software provider is going to recommend an implementation partnership to eliminate some of the development burdens and ensure ease of transition into new software environments. Sometimes, your software vendor themselves will have a consulting wing for that express purpose. While this can help with much of the technical, and some of the organizational strain that goes along with service software development, it can’t erase the last mile, which will inevitably come down to your unique business, and how internal teams are advocating for and engaging with the software to ensure its effective use and position within your organization.

Look Ahead
So you’ve mapped the necessary processes, and implementation is done. That’s it, right? Of course not. Technology, like fashion, is never finished. Today, right now, new advancements in areas of business modeling, device connectivity, and emerging technologies are setting up opportunities for much greater efficiencies for service providers, and far more advanced solutions for customers of service. That’s what we’re here for, of course, at The Future of Field Service! Keeping you plugged in to the latest trends and changes in the service industry. More than anything, it’s important to not be afraid to take additional steps on your technology journey, especially after you’ve just implemented a powerful new system. Know that you’ve just scratched the surface of your ROI potential, and that a solid Service Management platform is the foundation onto which you can build a successful digital-first organization.

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