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April 23, 2020 | 3 Mins Read

Socially-Distant Servitization?

April 23, 2020 | 3 Mins Read

Socially-Distant Servitization?

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By Tom Paquin

The COIVD-19 crisis, among its many, many effects, has shown many businesses that their product categories and go-to-market strategies are much more fragile than they may have thought. To address this, many businesses are simply hunkering down, while others, like Munters, are finding new ways to do more with less. Another important consideration that Sarah touched upon last week is how businesses are moving to diversify their revenue streams. I wanted to take that concept and unpack it a little bit around a specific topic: Servitization.

Two years ago, when the thought of a global lockdown was as incomprehensible as a Microsoft phone running Android, I wrote about the macroeconomic threats leading organizations towards servitization. At the time, I was looking at the eroding barriers to entry in fields like manufacturing, distribution, and retail, and encouraged businesses to consider what it takes to set up a recurring revenue model—What it really takes to incentivize people to like you enough to pay you every month.

Given the current state of the global economy, businesses either have no appetite at all for any sort of business model adjustment, or they’re frantically looking for a way to do so (or they’re somewhere in the middle). With that in mind, servitization may not be the best priority to focus on right now, but for those not in a position to make the shift, it’ll be worth thinking about. For other businesses, servitization might end up being the existential lynchpin that keeps your business running.

Innovation in the wake of this crisis has been a rare moment of positivity and inspiration in a time full of uncertainty and tragedy. For businesses, this has frequently taken the form of service-oriented activities when product-oriented business has taken a hit.

The most obvious avenue that this has taken is through delivery, which has been the system that has kept many businesses solvent, and employees working, in traditionally product-oriented fields. Retailers, restaurants, and suppliers have in record time built systems for quickly delivering products to their customers, offering value and new experiences.

I’ve seen a few compelling examples of this. For instance, Restaurant supplier Baldor has pivoted to home delivery at an incredible pace. Delivery is of course a very small component of service, but when you’re pivoting from being a purchaser and supplier to making fast, frictionless consumer interactions, that functions as a crash-course in developing a service-oriented mindset.

I imagine that this has substantially decreased the size of the average order (a home chef is not cooking 27 beef wellingtons a night) while increasing the number of deliveries by equal measure. For a business to do this effectively, they need to very carefully manage their logistics planning. Sure, if you’re an Amazon, you can throw more drivers at a problem, but businesses that are not sitting on a trillion dollar valuation need to manage their existing workforce with care and efficiency. Fortunately, there’s some outstanding optimization options to ensure that you can scale your workforce appropriately. Alternatively, you can always try to draft contingent labor to support your efforts.

Building the business model that goes along with this is key, as well. I've seen companies begin to offer services via a waiting list that you sign up for, which offers a sense of exclusivity, and encourages purchases when customers reach the other side of the "velvet rope".

These are all simple examples, but they are things that businesses have been able to roll out in weeks. As time drags on and the nature of this crisis continues to evolve, more creative, complex, and revolutionary ideas will come, and for businesses that have been flirting with servitization, a bold move might be just what is needed in this moment. Think differently about how you can approach your customers, your products, and your addressable market, and be sure to think beyond this crisis. Smart ideas will keep you whole today, and set you apart for the recovery.

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April 20, 2020 | 8 Mins Read

3 Commonalities of Companies Navigating the Turbulence of COVID-19 Well

April 20, 2020 | 8 Mins Read

3 Commonalities of Companies Navigating the Turbulence of COVID-19 Well

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By Sarah Nicastro, Creator, Future of Field Service

Over the past few weeks I’ve been able to connect with several service leaders to discuss the different ways they are tackling the impact of this global pandemic. I’ve appreciated each of these conversations, not just for the insight they’ve provided on how businesses across industries are responding to such uncharted waters – but also because they show a willingness and desire to stay connected as a community and to share with one another lessons we’re learning, as humans and as businesses, despite how much more of our time is taken up by managing this crisis.

As these conversations have unfolded, I’ve noticed a few themes among the companies that are – in my opinion – navigating this time well. These points have come up in almost every conversation I’ve had and seem to be top of mind for all of those on the frontlines of leading their organizations through a time that no one was prepared for.

Theme #1: Put People First

In a situation like we’re in with COVID-19, it becomes abundantly clear how much a company cares about its employees and its customers. It’s really interesting to hear the genuine concern those I’ve talked with have for the people they employ and serve, and some of the ways they’re taking action to show that. Companies managing this crisis well are, first and foremost, leading with their people at heart. This presents itself in a few ways:

  • Prioritizing safety. This first point probably goes without saying, but I’ll say it anyway – these companies got a very early start on taking measures to keep their workforce and customers safe, many even before travel bans and isolation came into play. Everything from personal protective equipment, cleaning supplies, adjusted schedules to minimize risk, and – whenever possible – remote work, have come into play and continue to be amended as variables change.
  • Looking for new ways to deliver value. When considering customers, some companies have done an excellent job of not only looking for ways to preserve the ability to provide the service they need to, but also to look for new ways to deliver value to their customers. Acting quickly to utilize tools to offer remote service is one example, but I’ve taken note of countless others even in my personal life – sit-down restaurants quickly pivoting to take-out and delivery, fitness centers offering live streaming classes, the Cincinnati Zoo going live on Facebook with an “at-home” safari, DJs holding Instagram “club nights,” and the list goes on. The takeaway, though, is thinking outside of the box.
  • Keeping your people connected. We’re all in a situation right now where this forced isolation feels a bit odd and it’s easy for us to begin to feel disconnected. Companies need to be thinking about how to keep their now remote employees engaged and connected, both in terms of achieving the needed productivity, but perhaps also in more lighthearted ways (Zoom happy hour, anyone?). Similarly, if you haven’t already, it’s a good time to begin thinking about how to connect with customers with facetime all but eliminated. Using social media to hold live events, answer questions, or provide some sort of information and value can be especially valuable in our current circumstances.
  • Giving back. Many companies are looking for ways to give back to the community and to help keep us all connected in our fight to return to normal life. Whether a major shift to address an urgent need, like companies in completely non-medical fields beginning to manufacture respirators, or a mission to serve essential workers through meals donated or something along those lines, it’s heartening to see all the ways individuals and companies are stepping up to care for one another.

Theme #2: Use This Crisis as a Catalyst to Embrace Change

Our hand has been forced to do business differently than we’ve ever done before. Is that a hard thing? Absolutely, yes. But it’s also, in some ways, a good thing. What I mean by this is that companies managing this crisis well are looking at the need to embrace change as a critical opportunity rather than just a burden. For those that have been dragging their feet on digital transformation, COVID-19 is acting as a major accelerator. Companies that were already on a digital transformation journey are finding new and more expansive use for the tools they’ve invested in. In my conversations with service leaders, points that have come up as silver linings in this difficult time are:

  • Becoming more agile and nimble. Even companies that have never uttered the word “agile” are being forced to pivot quickly and find ways to adapt to these new circumstances. In no way do I mean to dismiss the magnitude of this challenge, or the fact that many businesses are facing nearly impossible circumstances. But for all able to weather this storm, the exercise in adapting quickly will provide valuable perspective that can be carried into the recovery and beyond.
  • Embracing new tools for business continuity. By necessity, this situation has caused a major uptick in the use of new digital tools. From simple video conferencing tools for formerly in-person meetings to merged reality remote assistance tools to allow for remote service, there’s a wide variety of technology options that can be scaled if already in use or deployed if not to provide brand new ways of learning how to collaborate, communicate, and serve. Companies managing this crisis well are not hesitating to adopt such tools and put them to good use for business continuity.
  • Taking advantage of the newfound open-mindedness of employees. Along with the need to evolve the way we work, employees who perhaps not long ago would’ve resisted change or the introduction of new technology are welcoming it with open arms. The change management roadblocks that companies have struggled with for years have, at least temporarily, subsided as employees embrace new processes and technologies that allow them to continue working.

A great example of a company harnessing the opportunity to embrace change is Munters. We published an article recently on how Munters has adopted IFS Remote Assistance in an effort to address the challenging circumstances of the pandemic, while also setting the stage for servitization success. Munters acted fast as it noticed the early impact of COVID-19 and was able to deploy the technology to more than 200 employees across 22 countries in just two weeks. “It’s important to remember in these times that there are technologies that can provide really fast time to value – embrace those tools that can help you through this time, and beyond,” says Roel Rentmeesters, Director of Global Customer Service at Munters. “The employees that were impacted by the demands to stay in place were very welcoming of IFS Remote Assistance. Countries less impacted by Coronavirus and where our technicians are still free to travel still wonder a little bit about this new technology and what it's going to bring for them, because it is a change in business model. But those who need it to continue to do their jobs needed virtually no change management.”

Theme #3: Maintain a Parallel View of The Present and What’s to Come

While it can feel nearly impossible to envision right now, we know that at some point this will subside, and we will find a new normal. When that happens, demand will likely skyrocket for many services and companies will feel that pressure. While it’s critical to react fast to current circumstances and ensure business continuity amidst the crisis, it’s also important to use this time to consider and strategize on what recovery will look like for your company. Companies that are doing this well are:

  • Looking past survival instincts. The first step is to force yourself beyond the inclination to stay in crisis mode, which can be the hardest part of this parallel mindset. Certain companies and industries are in especially challenging circumstances as a result of what’s happening and exerting any energy on issues beyond today can seem impossible. But if you do want to survive, long term, you must force yourself to do just that – at least to some degree. Otherwise you’ll focus so much on surviving the crisis that you aren’t able to ramp up and adjust when recovery begins.
  • Determining what lessons are being learned now that can be applied to what comes next. I’ve talked with multiple service leaders about how much of a shame it will be if we indeed to back to business as usual. Why? Because there are some really pertinent and important lessons being learned in these hard times. Whether that’s discovering the role remote work can play for your organization, learning a new need your customer base has, or uncovering a new technology that would benefit your operations, it is worthwhile to view these challenging times through the lens of what can be learned from them and applied even once things aren’t quite so challenging. We want to come out of this better than we were before, not equal.
  • Considering what recovery will look like for your business and beginning to map your new normal. Chances are we won’t return to normal but find a “new normal.” Are you considering what that new normal will look like for your business? Have you had to put practices in place in the short term that will become expectations in the long-term? Are you navigating a steep decline in demand right now that will, at some point, quickly and aggressively ramp back up? Whatever the unique circumstances for your business, it’s important to be thinking now about what the new normal will look like and feel like for your business and begin planning for that path.

I liked how Ravi Advani, Director of Global Solutions at Unisys, put it on a webcast we did together recently: “The opportunity this crisis presents us is to look forward into the future and ask, ‘What does this mean for the next five years, the next 10 years? And where is technology going to take us in response to this tremendous event we're experiencing?’ he says. “This is going to present us with opportunities and challenges to making remote working more effective, more productive, more ubiquitous. I’ll be a shift for some organizations in some industries, but we'll come out of this stronger.”

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April 16, 2020 | 4 Mins Read

Service Software Buyer’s Guide: COVID-19 Edition

April 16, 2020 | 4 Mins Read

Service Software Buyer’s Guide: COVID-19 Edition

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By Tom Paquin

As we say so often here, businesses that offer service have been—and will remain—the lifeblood of our economy. Service powers growth around the world, and it is the engine that enables a swift and complete recovery in the face of social, environmental, and economic challenges.

It’s safe to assume that many service-oriented organizations are postponing any software purchases until they have a better sense of business continuity in the face of today’s current crisis, and that is absolutely fair. That doesn’t, however, mean that we don’t have a right (or an obligation) to start planning for the future. Eventually the restrictions holding back business growth will subside, and in their wake there will be a sudden flurry of service, from repairs to installations to consultations and everything in between.

Moreover, some companies may be looking for ways to leverage their team differently to meet their customers’ needs, and are looking for smart technologies to put in place in an effort the mitigate the effects of these restrictions.

With all that in mind, we’ve put together some important capabilities to keep in mind while evaluating potential service software partners, with an eye to managing the current crisis, and building systems prepared for any future challenge. While this is by no means an exhaustive list of criteria to consider, here are some key components worth noting:

Integration
Often when considering a solution, the fixation is on the mix of capabilities that make up the product and how they fit with your service vision. A chief consideration that is frequently downplayed, but exponentially important is how your service systems integrate into your broader enterprise systems. I’ve written before about how your service system needs to function as your grand central station. Service balances your customer and operations in a way that your CRM and ERP systems do not. For that to work properly, you need both a flexible platform and a capable integration team. With solid integration on your side, you can manage and mitigate any unforeseen circumstances from a central location, and you can measure the impact on your overall business in real time.

Planning and Scheduling Optimization

Here’s another one I’ve made a stink about in the past, but it’s worth remembering! Having a system that can dynamically shift your planning based on changing criteria is absolutely essential. When things go wrong, you need to be able to readjust headcount and account for unexpected restrictions in minutes, not hours. This generally means finding a solution this is powered on the backend by AI. True optimization is a lot more than routing, too, and getting that mix right of course goes back to the previous point—systems need to be centrally integrated, so your optimization engine can take workers—both contingent and salaried—into consideration right alongside parts, locations, expertise, and any regional, account, or company-level exceptions. There’s a lot that goes into this, but getting it right pays dividends every day.

Forecasting

Forecasting is basically a subsection of planning and scheduling, but within the context of today’s crisis, it’s worth pointing out separately. A smart “what if?” forcecating engine allows you to answer tough questions such as how a large reduction in workforce, or an increase in demand will impact performance. This will further influence your optimizations systems by giving your informed projections of countless scenarios so that you can be fiscally and operationally prepared, and can create projections in the moment. Imagine today if you had this functionality two months ago. This, like everything else, extends from routing, to people, to parts, which I have written about before.

Remote Management

We’ve talked about this one quite a bit recently, both in terms of projections, and case studies, and the point of this speaks for itself: Remote management does a lot more than prevent a truck roll. Today, it keeps employees and customers safe, profitable, and moving forward. Can we do everything remotely that we can do in the field? Obviously not, but the scaffolding is there to envision a nearly 100% zero-touch future. Having this as a component of your software purchases will be a given in six months, and of everything on this list, this one is worth the investment right now. These systems are easy to set up quickly and even easier for employees to learn. It’s worth a look.

Scalability

As I mentioned at the top, a lack of service calls today means unrepaired assets, and when a recovery spurns a return to normalcy, your business needs to be ready. This might mean employing a large amount of contingent labor to staff up quickly, or it could simply mean making sure your operations are prepared to navigate that bottleneck. When business picks up, you don’t want any more reasons for customers to be unhappy. And hey—you’ll want to deliver on as many appointments as possible. We all look forward to being able to work together again. Let’s make the most out of it.

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April 13, 2020 | 4 Mins Read

Words of Wisdom for Diversifying Service Revenue Streams

April 13, 2020 | 4 Mins Read

Words of Wisdom for Diversifying Service Revenue Streams

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By Sarah Nicastro, Creator, Future of Field Service

I don’t know of a service organization today that isn’t interested in creating new revenue streams and diversifying its offerings. I do, however, know a number of organizations looking to do this that feel stuck – for a variety of reasons – with the “how.” Back in 2012 when I was at the helm of Field Technologies, we featured Restaurant Technologies, Inc. (RTI) on the cover of the magazine. The company was an early adopter of IoT and was really agile in adopting not only cutting-edge technology, but in equipping its company to seize opportunities of serving customers in new and different ways.

RTI hasn’t slowed down since. In fact, they’ve continued to prove the ability to morph and evolve in ways that enable the company to better serve its customers, increase revenue streams by serving customers in new and different ways, and be open to the many possibilities to differentiate and diversify. I recently reconnected with Jason Cocco, SVP of Sales at RTI, to get his advice for others on what it takes to seize the opportunity that exists for your organization rather than let it slip by.

Look Beyond Cost Savings

The first piece of advice that Jason offers is to begin expanding your thinking beyond your internal metrics – to look beyond the need to cut costs and focus on opportunities for growth. “There is heavy focus for service organizations on, ‘Okay, I'm going to go implement a new technology or dive into to this new space for our business. What's the cost savings?’ You need to balance and move beyond this thinking by also saying, ‘Okay, cost savings are great, but what's the growth opportunity?’ Having that focus as a forcing function within your organization and in a constant question as you evaluate opportunities will help you be more strategic and ideate around where the bigger opportunities lie,” explains Jason.

The reality is technologies like IoT and other automation tools will, in fact, help you cut costs. But Jason’s point is that if you limit your view to those internal benefits, you’ll miss the growth opportunities that also become possible as you implement such technology. In today’s landscape, recognizing the opportunity to differentiate and diversify – rather than just reducing costs – is imperative. From this point on, service organizations will not be able to survive on maximizing productivity and reducing costs alone. If you are not looking for ways to serve your customers differently, to create experiences and deliver outcomes, and to diversify your revenue streams, you are putting your company at risk.

Evaluate Incremental Vs. Evolutionary Change

Another point Jason brought up is that it’s important to think about the differences in incremental versus evolutionary change. For instance, incremental change may be looking for ways to morph your current service contracts to gain some additional revenue. Evolutionary change may be adding an entirely new service line, or even serving a brand-new customer base. Both are fine to consider, but you want to be looking at the context so that you don’t miss an opportunity to embrace more evolutionary change that could have a larger impact.

“We're private equity backed, and while that won’t be the case for everyone, it has been one of the things that's really helped us in terms of identifying these opportunities and growing the way we have. Every three or four years, we naturally take a hard look at the business model and say, ‘How do we need to evolve?’ That evaluation includes operations and sales, but also new products and growth,” says Jason. “Organizations I've been with in the past haven’t done as good of a job evaluating their business model continually, and it’s worth considering that you don’t need to be PE-backed to do so.”

Create an Innovation-Friendly Culture

Finally, Jason stresses the important of fostering an innovation-friendly culture. “You have to build a culture around innovation and ideation – it doesn’t just happen,” he says. “Some companies become so narrowly focused on their current path that they lack an openness to new ideas and new thinking. We, at times, take people out of their current roles and say, ‘Go work on this, and come back to us,’ because it's a growth development opportunity for them, but it also helps to uncover really good growth opportunities for the business.”

For this culture to take hold, a growth mindset must be driven from the top. “You can have that growth mindset at the top, but if you can't figure out how to get that to trickle that down through the rest of the business, you're really going to struggle on the execution,” says Jason. “We’re talking about significant process and organizational changes in many cases, and that isn’t just field, it isn’t just sales, it isn’t just marketing – it impacts every aspect of the business. If you aren’t aligned company-wide on what you’re doing and why you’re doing it, it will be impossible to succeed. Our company theme is win as one — so we win together and that takes everyone in a collective force of different functional areas, to bring new ideas, to drive the change, to develop new skills, and to scale within the organization.”

While mastering revenue differentiation is not an easy feat, RTI has done an excellent job. However, Jason wants to be clear that it isn’t easy, and you have to be committed to staying the course. “I don’t want anyone to think it was simple or easy. There were plenty of times of frustration and doubt,” he says. “You have to commit to staying the course, continuing to be mindful about the opportunity, and being open to change.”

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April 9, 2020 | 4 Mins Read

Emotional Intelligence in a Time of Crisis: 3 Critical Opportunities to Deploy Empathy

April 9, 2020 | 4 Mins Read

Emotional Intelligence in a Time of Crisis: 3 Critical Opportunities to Deploy Empathy

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By By Sarah Nicastro, Creator, Future of Field Service

Over the last couple of weeks, I’ve had several conversations to understand how our audience is navigating the current crisis. I’ve talked with service leaders, consultants, technology providers, and even a physician about how they are being impacted both as individuals and as businesses. While the circumstances we’re all facing are unspeakable, there are a few themes I plan to explore in the coming weeks that surface in nearly every conversation I’ve had and serve as a sort of silver lining to what’s happening.

One of those themes is how the current state of our world and this giant we are collectively battling is bringing us together as human beings. How it is reminding us all what is really important, how it is forcing us to connect in new and different ways, and how it is giving us an opportunity to – even if from afar – care for one another. But I do recognize that, for many businesses, the pressure of what’s happening can make it difficult to determine how to tactically balance empathy and caring for your people with the very real logistical and financial struggles that you’re facing.

I came across this image recently from New York Times bestselling author Chip Conley from his book Emotional Equations, and I wanted to share because I think it provides some helpful context particularly right now. As Chip says, in Emotional Equations he “translated the cognitive processes which dictate our emotional responses into simplified formulas for understanding.”

There’s plenty of content out there on why empathy is so important for business, but before we can appropriately practice empathy we first need to understand the emotions of the people we’re serving. With this visual from Emotional Equations in mind, I want to suggest three areas in which it is critical to be empathetic as you work to manage this crisis.

#1: Your Employees – When I look at Chip’s chart, I think there’s one emotion we’re universally feeling right now – anxiety. It’s important to put yourself in the shoes of your employees and consider how they’re feeling. For companies whose services are still in demand, this anxiety may be more around staying safe and keeping their families protected from harm. For companies that have seen a steep decline in business, that anxiety is likely more around losing their jobs and even access to healthcare. I’m not suggesting that the consideration of their feelings will change the hard decisions you may have to make in either situation, but leading with empathy will make a difference. Regardless of what challenges your company is facing, treating your employees with respect, open communication, and keeping their feelings top of mind is critical.

#2: Your Customers – In addition to anxiety, your customers may be feeling disappointment. Businesses are struggling, individuals are feeling isolated and stuck. Whomever you serve, it’s a hard time to do so. Maybe empathy is how you serve your customers is simply taking extra safety measures in the service you’re providing, as I illustrated in this article reviewing my recent Vivint service experience. Maybe your method of service or value has been impacted and halted. If this is the case, think outside of the box. How can you serve your customers differently in this time? How can you connect with them and ease some of those feelings of anxiety and disappointment? I’ve seen so many examples of companies getting creative in delivering value to their customers – the Cincinnati Zoo has been going live on Facebook daily delivering an “at-home safari,” many fitness apps have made their services free for all of those stuck at home to enjoy, DJs are having “club quarantine” events on Instagram. While these are less field-service specific examples, my point here is to first, keep your customers’ feelings in mind and second, look for alternative ways to connect and deliver value.

#3: Your Community – Finally, consider how you can serve your community in this time. How can you, as an individual and as a business, show integrity and authenticity? This brings to mind examples of how many companies have begun helping those in need, but also how some have pivoted entirely to be of service in this time. Everlywell has begun making COVID-19 tests to augment availability. Dyson and others have begun manufacturing ventilators. This global crisis is one that we will only recover from if we do so together.

None of us can predict what the future will bring with all of this, but I can tell you one thing with absolute certainty: how you treat people right now is something that will be remembered for a very long time. It’s so important to act with that in mind.

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April 6, 2020 | 4 Mins Read

The Three Phases of Zero-Touch Service—Today, Tomorrow, and Years From Now

April 6, 2020 | 4 Mins Read

The Three Phases of Zero-Touch Service—Today, Tomorrow, and Years From Now

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By Tom Paquin

Today, right now, many service providers are scrambling to find a way to deliver on their promises to customers without endangering them or their field technicians. Many will not think far beyond latex gloves and a mask, but forward-thinking companies are already looking at the bigger picture. For many, this includes considering options for zero-touch service.

Over the course of the last five years or so, we’ve seen the steady creep of businesses in a variety of industries moving towards zero-touch in various ways: fast casual restaurants putting mobile orders on shelves, retailers creating online pickup lockers, self-checkout kiosks, and IoT-enabled fixes for devices like routers and cable boxes. Given the current circumstances in which we are attempting to keep the world running, I believe that it’s safe to say that the creep will begin to accelerate into an avalanche, and service in many ways will lead that charge.

It’s easy to pigeonhole these innovations into one or two technologies, but the truth this that zero-touch service will likely be achieved through dozens of technologies, sometimes working in tandem, sometimes tied to the specific needs of an industry. Below, though, are three benchmarks based on what we can accomplish today, and what our current technology decisions can already tell us about what tomorrow will look like.

Let’s start with what companies can do right now:

Remote Assistance

We’ve already seen in recent years the prevalence and usability of augmented reality creep forward, and this has become increasingly commoditized and utilized for service functions across a variety of disciplines. I’ve long since promoted it as a means to train up new and contingent employees quickly on company policies, but it’s a clear vector for customer-driven resolution as well, and I’ve discussed how that might work in an application environment as well.

When zero-touch is the only way to reach your customer, remote assistance can be a quick and effective way to get you there today. Last week, Sarah outlined the case of Munters, who was able to deploy a solution in less than two weeks. For them, it was an existential decision, and it kept them whole in a time where their contemporaries were melting down.

Obviously this is not always a reasonable replacement for an in-person meeting, as I learned this week while attempting to provide some face time tech support to my father-in-law. While he pointed his phone at his computer screen, I asked him to hover his mouse over an item on the screen. I watched as he lifted his mouse off the desk and gingerly held it about an inch away from his monitor. “Nothing’s happening,” he said.

Yes, while there’s often a skills or resource gap between the back office and the field when it comes to remote service, if you’re able to keep 50% of your clients up and running without a truck roll, the trickle-down benefits to your business, not to mention the economy at large, are without measure. It’ll keep contracts renewed, avoid SLA penalties, and keep employees where they want to be: On the job.

This is what we can do today. What about tomorrow?

A New Kind of Parts Management

Diagnosis is still the best use for remote assistance today, but often the process of repair makes that a bit more challenging. It doesn’t have to be, though. Spencer Technologies ships out customer parts to a job site without technician oversight, and then a tech meets the part at the location and completes the repair or the swap. Sure, this can happen with shipping and fulfillment, but if you have a fleet of vans with parts inventory on them that are sitting in a depot, you have a fleet of zero-touch delivery vehicles ready to go.

Imagine a scenario where a customer initiates a remote repair call, and the technician identifies a part that needs to be replaced based on a combination of IoT data and visual inspection. Rather than dispatch a technician, you could dispatch the part itself—often within a reasonably small window—then provide step-by-step replacement or repair instructions via the augmented reality array. It could be done live, with an actual person, or, increasingly, step-by-step instructions could be prerecorded and validated using the AR screen.

Theoretically, the infrastructure is mostly there to make this work today. The most important part is a thorough, consistent, and comprehensive parts management and reverse logistics system. You need to know inventory on every truck, at every warehouse, where each piece is in the depot repair process, and where and how remittance, reissue, or scrapping occurs.

With these two pieces in place, companies will be well-suited for today’s challenges. Remote assistance is available today, but zero-touch parts allocation will take time to map out. The third phase takes it a step towards science fiction, though it’s a sci-fi that’s well within the realm of possibility over the next few years.

Assisted Repair

Imagine a scenario where, when a break occurs or is expected, a Roomba-like robot is dispatched, and through a drone-like interface is able to eliminate an issue without involving any humans. This may seem outside the realm of possibility today, but many industrial manufacturers are deploying fleets of robots specially designed to assist with simple repairs. From lifting and handling heavy parts to replacing faulty ones, to running routine security checks and providing a photo log that is attached to the customer account.

There’s obviously a huge amount of hardware infrastructure that needs to be considered here, and this is completely impossible in a number of industries but think about the degree of customer attrition you’ll mitigate by having your customer add your robot to their family. Combine these capabilities with remote parts remittance and shared view repairs, and you’ll see the cost per truck roll plummet, and customer satisfaction skyrocket.

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Munters Meets Today’s Business Needs While Setting the Stage for Servitization Success

April 2, 2020 | 6 Mins Read

Munters Meets Today’s Business Needs While Setting the Stage for Servitization Success

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By Sarah Nicastro, Creator, Future of Field Service

Munters is a global leader in energy-efficient and sustainable air treatment solutions for demanding industrial applications and agriculture sectors. Munters was founded in 1955 and has been listed on Nasdaq Stockholm since 2017. The company has net sales of about SEK 7.1 Billion, 3,100 employees, and manufacturing and sales operations in 30 countries.

As the Director of Global Customer Service for Munters, Roel Rentmeesters is part of the Global Services Management team, and is responsible for leading the entire infrastructure of services — including people, processes, and technologies — to success. His scope of responsibility includes Services’ Business Systems third-line support (a team of experts who support the field technicians), as well as Munters’ training academy.

The Quest for Servitization Surfaces the Need for Remote Assistance

Munters recognizes the evolution that is occurring in service and the need to embrace servitization. “We know we need to make ourselves ready to provide a different kind of service – to move away from break/fix work and move toward guaranteeing uptime to our customers,” says Rentmeesters. “This is a significant shift for Munters, and we have begun taking steps to enable our success with servitization.”

An integral aspect of this journey is ensuring a strong technological foundation is in place from which to build. “We are a longtime IFS Apps ERP user and have begun with working through how to standardize globally and how to extend the capabilities of the IFS portfolio to our service operations,” says Rentmeesters. “In addition, we know that there’s potential to leverage IoT, AI, and remote assistance to really change the way we deliver service. As a company, we are very open to investing in technology that will aid us in better serving our customers.”

Munters’ current business model relies heavily on completing on-site visits, often one to two visits even before initial installation of equipment. “Reducing our reliance on site visits will not only allow us to improve efficiency but being able to perform a remote resolution or diagnosis is a critical step in our journey to servitization,” says Rentmeesters. As such, evaluation of remote assistance tools has been underway at Munters to find a reliable tool that would enable Munters’ technicians to collaborate remotely with third-line support and, ultimately, allow Munters to interface remotely with its customers to reduce the need for as many on-site visits.

Coronavirus Creates Urgent Business Pressures; Necessitates Rapid Time to Value

While Munters’ pragmatic approach to building a strong foundation from which to build its servitization success is absolutely the right one, plans were impacted as the Coronavirus pandemic began. Specifically, the crisis created a level of urgency in getting remote assistance in place to preserve Munters’ operations. Rentmeesters and Munters’ Business Area President for Airtech, Peter Gisel-Ekdahl, with Sebastien Leichtnam, President of Global Services, discussed the need to rapidly deploy remote assistance to aid in the company. This was done not only in order to provide remote support to field technicians, but as an option for supporting a new production line in our manufacturing facility in the Czech Republic that Munters could no longer send experts on site to assist with. “Our President Peter is in Italy, and as Coronavirus began to spread, he saw the immediate need to leverage remote assistance to help support both our field and manufacturing operations,” says Rentmeesters. “By the beginning of March, it became urgent for us to get this technology in place to continue to be able to serve our customers and support our manufacturing operations.”

Rentmeesters reached out to IFS to discuss Remote Assistance, collaborative merged reality software that blends two real-time video streams into an interactive environment. “As I mentioned, I’d already been evaluating remote assistance tools,” he says. “IFS was a natural choice given not only the capabilities of the solution, but our longstanding partnership. My hope was that we could move quickly to get the technology operational in the shortest window of time possible.”

IFS Remote Assistance provides the ability for any of Munters’ employees to be anywhere, instantly. Two users can collaborate and interact in real-time while telestrating, freezing images, using hand gestures, and even adding real objects into the merged reality environment – whether that’s technician to third-line support, technician to customer, or expert to manufacturing facility. This provides opportunities for remote customer support and resolution, remote diagnosis to increase first-time fix, better utilization of valuable resources, as well as more rapid employee training and knowledge transfer.

Perhaps most impressive is the rapid time to value of remote assistance. “I first contacted IFS about Remote Assistance on March 6th, we had an agreement in place and were conducting the training of our first users by March 12th,” says Rentmeesters. “The solution is very intuitive, so training required is minimal and there’s actually some instruction built into the app, too. In less than two hours, each of our users was fully trained and equipped to begin using the technology.”

With an initial deployment in just six days, Munters is now expanding the use of IFS Remote Assistance to more than 200 users globally which it expects to be complete within the next two weeks. This includes field technicians and third-line support, who are using the solution on their existing mobile devices, as well as use by experts guiding the opening of the new production line in our manufacturing facility in Czech Republic. These users are testing the solution on Vuzix Smart Glasses so that the staff can receive instructions and visual collaboration hands-free.

“We’ve been very satisfied with the level of support, availability, and flexibility we’ve received from the team supporting our use of Remote Assistance,” says Rentmeesters. “The speed at which we’ve been able to get the solution operational is really impressive.”

Remote Assistance Brings Immediate Benefits and Immense Potential

Rentmeesters groups the value of Remote Assistance into two categories: how the technology is helping Munters navigate the business challenges of the current Coronavirus crisis and the immense potential that exists to further leverage the solution once the pandemic subsides and business returns to a more normal state. Currently IFS Remote Assistance is alleviating some of the pressures for Munters of the travel restrictions that are in place. “We’ve begun with use cases that allow technicians to collaborate with one another and with third-line support expertise, and plan to expand use to interacting remotely with our customers,” explains Rentmeesters. “We are also using the technology to allow our remote support team to guide the team for our manufacturing facility launch in the Czech Republic. Thus far, the satisfaction rating of the solution is 95 percent or greater.”

But the way IFS Remote Assistance is helping Munters alleviate the pressures of today’s unprecedented conditions is just the beginning of what Rentmeesters sees being possible with the technology. “How this technology will allow us to modernize our operations and embrace servitization is exciting,” he says. “When we consider how it will impact our own operations, we expect to improve efficiency greatly. This comes from the ability to perform maintenance inspections remotely, improve first-time fix rates as a result of remote diagnosis, reducing the amount of technicians we send on-site since third-line support can engage with technicians through Remote Assistance, providing remote support to our manufacturing facilities, and so on. These capabilities will help us reduce our overall travel immensely.”

Those are just the internal operational gains, however. One of the greatest potentials of the technology is how it will equip Munters to bring its vision for servitization to life. “This will undoubtedly be a tool that will help us reimagine how we engage and interact with our customers,” says Rentmeesters. “I believe it is an important piece of the puzzle in our quest to differentiate our service offerings and create new revenue streams. I’m thankful for how the technology is helping us address today’s challenges, and excited for what the future holds.”

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The Anatomy of a Well-Executed Service Experience

March 30, 2020 | 4 Mins Read

The Anatomy of a Well-Executed Service Experience

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By Sarah Nicastro, Creator, Future of Field Service

This week we had a home security upgrade installed by Vivint. I always find it interesting to be on the receiving end of a field service experience because I’m more intimately aware than many of what’s being demanded of these companies, what the areas of focus are in terms of innovation, and what technologies are available to them to streamline and improve the customer experience. I liken it to my level of awareness when I go to a restaurant having worked in the restaurant industry for many years – when you know what to watch for, you are a tougher critique than the average bear.

That said, while I was quite frankly expecting my overly critical eye to poke holes in the Vivint service experience, there was really no opportunity to do so. The company’s execution of the service experience, from initial outreach through follow-up, was really quite impressive. Being that it went so well, I thought it would be worth sharing what I appreciated about Vivint’s service.

Convenience, Communication & Timeliness – I am one of those people that prefers to be able to book appointments electronically whenever possible. For this appointment, since it was an upgrade to our existing system and required a discussion about the extension of our contract, I appreciated the fact that a Vivint representative emailed me in response to my inquiry to ask when a good time to call and discuss would be. When we spoke, they offered various service windows and once we’d agreed on our terms and selected a window, I received confirmation of the appointment by email – including an overview of what work would be done, four-hour appointment window, and length of the visit. I then received two reminder emails, one a few days before the appointment and one the day before as well as an email providing us with the information of who our technician would be.

The day of the appointment, our technician called me 45 minutes before his arrival to ensure we were aware he was coming and that the appointment time still worked for us. He was prompt in his arrival and upon arriving reviewed with me in detail what he planned to do during the appointment, how long each step would take, and confirming the placement of the systems we were adding. The communication from Vivint and the technician himself was comprehensive and clear, and the timeliness of the technician much appreciated.

Efficiency & Effectiveness – Our appointment was about three hours long. The technician began with a review of the work he intended to do, confirmation of the terms we’d agreed to, completion of contract, and a rundown of the order in which he’d be completing the job. He asked permission for every area of our home he needed to enter, ensured we agreed with the placement of systems and details of wiring, etc., and then got to work. He worked efficiently and effectively from his iPad and completed the appointment about 15 minutes ahead of schedule. All of the “paperwork” for the installation was completed electronically, using a combination of signatures on the iPad as well as a facial/voice recognition survey to accept terms and ensure the technician had accurately relayed the information.

Technician demeanor & soft skills – The technician was very upbeat and friendly, from his initial phone call prior to arrival through to completion of the job. He explained things well and asked for questions along the way. He was polite and respectful of our home, putting booties on to cover his shoes as soon as he entered and asking permission as he needed access to areas of the house. I asked him toward the end of the visit if he liked working for Vivint, and emphatically said that he did – he explained that he worked for a competitor prior and that Vivint is preferable. He noted that he feels his direct management really cares about the technicians and ensure they feel valued. I asked if he was happy with the technology they use, and he said yes with few exceptions – surveys like the one he gave me upon completion of the contract with facial/voice recognition, he said, are new and seem to still have a few kinks to work out.

Post-visit follow-up – Vivint’s post-visit communication was equally good as its pre-visit outreach. We received a survey via email within a day of our appointment asking for insight on how our visit was. Luckily, we had nothing but good news to report, but this is an important step in allowing those that do have constructive feedback a method to relay it. My only suggestion here would be to add a text delivery of the survey as well since I’m more apt to take a few moments to reply to a text than open an unnecessary email.

Management of COVID-19 sensitivity – We’d scheduled this upgrade prior to the current COVID-19 crisis reaching the point it is at now but decided to keep the appointment rather than rescheduling. Vivint’s management of service given the unprecedented circumstances seemed thorough, including:

  • Email communication prior to the visit outlining the steps the company is taking to ensure safety of its customers and employees
  • When our technician called prior to the appointment, he asked if anyone in the house was experiencing any symptoms of illness and explained that, if so, he needed to reschedule
  • Our technician wore an N-95 mask the entirety of the visits, put booties over his shoes each time he entered our house, and wore gloves any time he touched anything in our home
  • Our technician explained that in addition to those precautions, each Vivint technician is required to complete a health assessment before beginning each shift

Well done, Vivint! It may seem reading this that all service organizations should be providing equally satisfactory service, but in my experience that simply isn’t always the case.

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New Metrics for A New World of Service Delivery

March 26, 2020 | 4 Mins Read

New Metrics for A New World of Service Delivery

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By Bill Pollock

The transition from the historical Service Level Agreement (SLA) model to a more broadly defined Servitization model is upending the global field services community. In fact, the movement away from a decades-old SLA service delivery model that typically guaranteed 4- or 8-hour on-site response, quarterly PMs (Preventive Maintenance) and online customer technical support is quickly being replaced by a “new” model that is built on a foundation of outcomes-based performance targets and metrics.

For example, in a typical food or beverage processing facility, the “old” way of executing an SLA may have been based on an assortment of contractual line items, such as guaranteed 4-hour, 8-hour or next day on-site arrival; four or more preventive maintenance visits per year; access to a customer portal to initiate a service call, track the status of open call activity or order parts, etc. However, the “new” way of constructing a service agreement may now consist simply of delivering guaranteed system uptime, guaranteed minimum level of productivity throughput (e.g., gallons of milk processed per day, etc.), and an accompanying array of predictive and remote monitoring, diagnostics and system fixes.

Along with this service delivery model transition also comes a major transition in the way services are priced. Over the past several years, the shift from perpetual license pricing to subscription pricing had taken some time to be fully embraced by the global services community; but the change has since become widely accepted and fairly universal.

However, each of these major “disruptions” to the services marketplace have led to additional changes that may actually be even more disruptive – at least in the short term.

For example, changes to the way services are now being delivered – and priced – are, in turn, leading to the need for an entirely “new” way of measuring performance. Basically, the old Key Performance Indicators (KPIs) will no longer work for those services organizations that have since transitioned to a Servitization model.

As recently as 10 years ago, arguably two of the most commonly used KPIs were Mean-Time-Between-Failures (MTBF) and Mean-Time-to-Repair (MTTR). However, the advent and proliferation of predictive and preventive diagnostics, remote service and support, and other Artificial Intelligence-based service capabilities have rendered these two historical staples as relatively unnecessary in a “new” world where equipment never (or, rarely ever) fails, and the “fix” is now performed prior to a failure, rather than following the failure.

Accordingly, MTBF can easily be replaced by MTBPF (i.e., Mean-Time-Between-Prevented-Failures), and MTTR can be retired completely. Essentially, services organizations are becoming more attuned to understanding – and measuring – equipment failures in terms of “How many times has a failure been prevented?” rather than “How many times has a failure occurred?”

But the conundrum is, how do you compare this year’s KPIs for MTBPF against last year’s MTBF? The short answer is, “you can’t!” As such, year-to-year performance comparisons must now start all over again – oftentimes with a clean slate with respect to the ability to compare performance levels over time.

Other examples of soon-to-be-bygone KPIs include OTR (On-Time-Response), FTFR (First-Time-Fix-Rate) and PM (Preventive Maintenance). Through the use of predictive diagnostics and predictive maintenance the need for an On-Time Response metric will be highly diminished, as will the need for FTFR and other traditional KPIs/metrics. For example, OTR will be largely diminished in importance as a majority of service calls are now being handled remotely. In addition, FTFRs will be normalized as everything will likely get fixed in a single event, whether it requires a single “try” or multiple “tries;” and PMs will virtually disappear (or at least be replaced by another PM - Predictive Maintenance).As such, there will be a whole “new” way of delivering service, as well as measuring the success of the organization through an entirely “new” set of KPIs, or metrics.

Customers no longer will be pleased simply with equipment that is working, sensors that are communicating, and devices that are operating – they are now beginning to look more closely at how their systems, equipment, sensors and devices are working together, in their behalf to get the job done. A services organization that merely keeps individual systems or equipment up and running (i.e., maintaining high levels of uptime), but does not ensure that they are all working together to effectively and efficiently execute the company’s business, will ultimately find themselves being replaced by other services organizations that do. The clear winners will be those organizations that “get” Servitization, and not those that do not.

In 1974, the California-based surreal comedy group, The Firesign Theatre, released an album titled, “Everything You Know Is Wrong.” They may not have known it at the time, but they were essentially describing today’s (and tomorrow’s) global services community!

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Adopting Agile: Methodology Vs. Mindset

March 23, 2020 | 3 Mins Read

Adopting Agile: Methodology Vs. Mindset

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By Sarah Nicastro, Creator, Future of Field Service

There’s a widespread recognition among the organizations I speak with that they need to become more agile, but there’s also a common struggle when it comes to actually adopting more agile principles and practices. In a recent interview I conducted with Amanda Moore, Head of IT - Customer Projects, Support & Field Services at Schneider Electric for a must-listen episode of the Future of Field Service podcast, she attributed much of the reason for this shared challenge to three things: a lack of understanding on what agile is, alignment not just within IT but across company functions on why and how to become more agile, and the need to rethink agile from simply a software methodology to more of an overarching business mindset.

“The term agile grew out of software development, but the concepts within the mindset are critical to the entire modern enterprise,” says Amanda. “Incremental change, autonomous and cross-functional teams, better accountability, and working across functions are aspects of agile that benefit all areas of the business. Companies from a focus on adopting agile as a mindset across the business rather than just for software development within IT.” Amanda summarizes the biggest challenges in adopting a more agile mindset to four main areas:

  • Lack of understanding. “Agile isn’t just moving fast, it’s far more than that. One of the biggest barriers to companies becoming agile is not having a clear definition or vision for what it is they are working to become. Landing on a common understanding of agile is imperative,” explains Amanda.
  • Alignment. “Again, agile is most impactful when it’s adopted as a company mindset versus just as a methodology within IT,” says Amanda. “This requires alignment across groups and functions of the business – a common goal and breakdown of silos.”
  • Skepticism. “As with any change, people are uncomfortable giving up what they know. Within IT, those experienced in linear waterfall development are most comfortable with a detailed project plan – an agile approach is out of that comfort zone, and it causes skepticism,” says Amanda. Clear communication on objectives and a plan for change management will help you navigate this challenge.
  • Support from finance. “Agile presents a major shift for most companies’ finance processes – finance departments are typically accustomed to funding projects, in terms of ROI on a business case, versus the ongoing prioritized work of teams,” says Amanda. This fundamental change can be challenging to overcome.

Amanda is experienced in facing these challenges and has some advice to offer you if you are in the midst of the quest to become more agile. First, she suggests training everybody on agile. “It’s worth hiring an expert to give your company a common vernacular and toolkit around what an agile mindset is and how adoption will impact the organization,” she says. Second, she suggests starting small and proving yourself. “Don’t try to boil the ocean to start – take a small first step,” Amanda says. “Focus on this small start and prove yourself. Earn the trust of your peers and don’t forget to promote the success beyond your own team so that others can see how agile is paying off.” And finally, build on your success. “Be flexible. Focus on putting the right people on your team and trust them to make the right decisions. Constantly review your progress and look for where you need to pivot and change.”

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