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July 17, 2020 | 4 Mins Read

What Can Netflix Teach Service Managers About Contextualizing Data?

July 17, 2020 | 4 Mins Read

What Can Netflix Teach Service Managers About Contextualizing Data?

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By Tom Paquin

Given the avalanche of video streaming platforms that we’ve been pelted with over the last few years, you’d be forgiven if you missed the fact that NBCUniversal just launched their own: Peacock. This is in no way particularly remarkable, interesting, or, I’d argue, good, but there’s a somewhat interesting component here, and that’s what will happen to The Office next year.

I should note here for our international readers I am talking about the Greg Daniels-helmed Office, which of course is an Americanized version of the (moderately superior) Ricky Gervais and Stephen Merchant-helmed UK Office, which was adapted and exported to a variety of different countries, including the US.

So why am I talking about The Office on this Field Service site? Because of Netflix. It’s widely known that The Office is the most-streamed series on the video platform, so when NBC made it clear that they planned to terminate their contract with Netflix and bring The Office to their own streaming platform, it created a pretty big stir.

The logic was, naturally, because The Office was the top streaming program on Netflix, that NBCUniversal could carry a percentage of Netflix viewers to their platform by moving the show there. The audience would follow the show. They were so certain of this that they bet $100 million a year in lost revenue on it. Netflix clearly bought this as well, and persevered to create a homegrown Office by dumping a massive sum of money at the feet of Greg Daniels and Office Star Steve Carell to create whatever show they wanted for the streaming giant. The result of that massive investment was a show called Space Force, and it’s fine.

Here’s the thing: It’s very likely that both Netflix and NBC have both made very foolish mistakes.

As someone who has a lovely spouse who turns on The Office while she is staring at her phone or answering work emails, I would postulate that The Office is the most-streamed show on Netflix for the following reasons:

  • There are a lot of episodes.
  • You can pay very passive attention to it and still enjoy it.
  • It’s there.

Sure, The Office is enjoyable, but were it not on Netflix, we would find something else that met those three criteria rather than leapfrog to yet another streaming app. Sorry NBC, I don’t care that you’re free, there’s a Netflix button right on my remote and I can re-watch the Great British Bake-off every day for the rest of my life. And if that were to be removed, we’d find something else.

So here we are, 400 words into this article, and what does this have to do with Field Service? Well, I think the gross miscalculation that both Netflix and NBC have made is just as likely to happen with service data, and it might be happening to you, right now.

Here’s an example: You see uncommonly frequent stock-outs on a specific service part in your warehouse. Binary thinking would imply that the part is used with some frequency, which would mean that either assets that use that part are more faulty than others, or the part itself is poorly engineered. So you spend time and money redesigning the asset and the part only to discover that because the parts are extremely small that technicians have an unnecessarily high volume of them on their truck.

This is a single example but it speaks to a broader challenge with a fairly anodyne solution. I’d say that there are three things that businesses can do to better contextualize their data:

Data Analysts Need to Understand Service
This is going to seem profoundly stupid but if you’re reviewing data about service, you need to actually understand every aspect of the service delivery lifecycle. For enterprise-sized businesses with data analysts, many of whom are fresh out of college, dipping their toes into the data lake will provide them a wealth of information to misinterpret.

There’s no silver bullet here. At large companies and especially at diversified companies making sure your CTO “gets” service is not always going to be in the top two thousand priorities. For that reason, it’s important to diversify the audience for your data. By putting raw data with some small context in front of, say, your operations lead, or even a front-line worker, you can have a much more informed interpretation.

Diversify your Data Sources
This is not new territory for us, but the more data sources available to you, the more accurate a picture you’ll have of your business. Combine parts information with broader logistics trends with actual service data, sprinkle on some asset management, and perhaps a few ERP functions, and you have a much better picture of your business than if you were simply looking at a single axis. This feeds into the previous point, obviously—get the right people to connect the data dots to build the picture for your business.

Audit, Audit, Audit
I realize that this is hard, especially as we wade in the uncertain waters of COIVD-19. Do we ever really have time to stop and evaluate the legitimacy of our data? I would argue that it is imperative, and it’s a key way to evaluate and contextualize your data in a meaningful way. Again, no silver bullet, but a good place to start is anecdotal evidence, which can provide much-needed shading to not just the binary cause and effect that you see in the data, but all those squishy grey areas that make up the connecting tissue between numbers on a page.

Obviously there’s no way to be sure that you’re getting data right, and as we’ve seen endlessly, the human condition does not always align with data collection conventions, but these tips will help you begin to contextualize your data. If all else fails, you can always give Steve Carell a call.

July 13, 2020 | 4 Mins Read

The 2020 Gartner Magic Quadrant for Field Service Management Paints a Picture of Progress

July 13, 2020 | 4 Mins Read

The 2020 Gartner Magic Quadrant for Field Service Management Paints a Picture of Progress

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By Sarah Nicastro, Creator, Future of Field Service

The Gartner 2020 Magic Quadrant for Field Service Management is a highly-anticipated piece of research each year, both for the vendors hoping they’ve achieved a prominent placement and for those in the industry who rely on the Magic Quadrant to help steer their technology investments for the upcoming year(s). As I read through the 2020 Gartner Magic Quadrant for Field Service Management, I was impressed by the progress the report illustrated. Not only as it relates to the technology provided by the vendors evaluated, although that progress is interesting too, but by the statistics that painted a picture of significant progress by service organizations.

I’ve been interviewing service leaders from brand-name businesses across a wide variety of industries for more than a dozen years – sometimes it feels like those years have flown by and other times it feels like I’ve been doing this for a lifetime. But what has been clear to me over the past three or so years is the seismic shift taking place as service becomes a strategic differentiator for businesses in almost every industry. This progress has revealed itself to me one conversation at a time, but when you pause to look at it collectively you can see the hard work these leaders are putting in to really innovate their businesses, embrace digital transformation, and meet customer needs in new and exciting ways. My personal collection of conversation after conversation that reveals immense progress is reflected in some of the research shared in the 2020 Gartner 2020 Magic Quadrant for Field Service Management.

Outcomes-Based Service Takes Hold

In Gartner’s strategic planning assumptions, shared at the beginning of the report, Gartner states that, “By 2025, over 50% of equipment manufacturers will offer outcomes-based service contracts that rely on access to digital twin data, up from less than 20% in 2019.” In a later section of the report that shares survey results from 84 customers of 14 vendors evaluated, Gartner reveals that, “One third of respondents are already using this model, up from 19%, and 34% intend to offer this model within the next 12 to 24 months.”

As we’ve discussed, Servitization and outcomes-based service are the future – but we know they are not easy evolutions and take time. Gartner’s research illustrates not only the recognition of the importance of offering outcomes-based service, but also the progress the industry has made – and has plans to make – in doing so. This corroborates what we’ve seen in covering how companies like Cubic Transportation, Tetra Pak, Munters and Alfa Laval are embracing this journey.

Software Use Advances to Meet Service Needs

As service organizations continue to proceed down the path to outcomes-based service, they need more advanced technologies to enable the delivery of those outcomes. The software vendors featured on the Gartner 2020 Magic Quadrant for Field Service Management have evolved quite a bit over the last couple of years themselves, and we see some of the solutions offered becoming simultaneously more sophisticated and simpler to use.

Gartner shares two other strategic planning assumptions that reflect more advanced technology demands. First, “By 2025, 50% of field service management deployments will include mobile augmented reality collaboration and knowledge sharing tools – up from less than 10% in 2019.” We’ve seen even more enthusiastic adoption of AR since COVID-19 struck and, personally, I wouldn’t be surprised if the number in 2025 is even higher than 50%. In the survey of 84 customers from the 14 vendors, 64% of respondents are using or plan to use knowledge management within 12 months. Both AR and knowledge management hold great potential in a number of critical areas for field service organizations: improving customer experience, increasing productivity, more efficient training, and the prevention of loss of uncaptured knowledge as older workers retire.

Gartner also shared in their strategic planning assumptions that “algorithms and bots will schedule over two-thirds of field service work for field service providers dependent on automated schedule optimization, up from less than 25% in 2019.” In the survey results, Gartner revealed that “Sixty-three percent of the respondents (up from 39%) indicated that they were already offering their customers a means to self-serve.” Moreover, the report states that “In 2017, Gartner predicted that, by 2020, 10% of emergency field service work would be both triaged and scheduled by AI, up from less than 1% in 2017. Of the surveyed reference customers this year, 23% indicated that they already schedule some work automatically.” Respondents also stated that “the overall average number of technicians handled by each dispatcher was 47, compared with the 21 reported by respondents to the survey conducted for the 2019 Magic Quadrant.” We see here an interest and readiness from field service organizations to leverage more advanced tools, which I believe stems from a recognition doing so is essential in being able to evolve the ways they need to in order to remain competitive and successful.

I think it’s also interesting and important to keep in mind that much of the work for this report was completed prior to the real impact of COVID-19. While the challenges of the pandemic are vast, I do also believe that once we’ve recovered, we will see an acceleration of innovation among field service organizations because navigating the challenges has resulted in more openness to change, increased agility, and greater recognition of the importance of technology.

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July 10, 2020 | 3 Mins Read

What Gartner’s 2020 Magic Quadrant Says about the State of Service

July 10, 2020 | 3 Mins Read

What Gartner’s 2020 Magic Quadrant Says about the State of Service

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By Tom Paquin

This week, Gartner once again released its Magic Quadrant, evaluating Field Service Management software vendors on their ability to effectively provide solutions to their customers.

The report is, as always, not just an assessment of the various vendors in the service industry, but also an overview of the state of the service market today, and what’s clear to me through Gartner’s market assessment is that service is becoming even more vital than it has been to the success, continuity, and growth of businesses in all sorts of different industries.

So knowing all this, and preparing for the future, what has Gartner identified as major market trends, and how can you prepare your business? Here are three areas noted in the report that you should be considering for your business today.

Outcomes-based Service
As Gartner writes, “Of 54 respondents, one-third were already offering this model, up from 19%, and 34% indicated that they intend to offer this model within the next 12 to 24 months.” This means that more than half of organizations will be moving towards an outcomes-based service model. This is an obvious move for forward-thinking organizations. By building their business plans around outcomes, rather than selling warranties, you build long-term contracts that extend beyond the lifespan of a given product, and you offer your customers something more valuable than the promise to resolve issues. It's something we're eager to discuss here, and do some with some frequency.

Of course, in order to do outcomes-based service right, you need to actually be measuring and managing internal systems, whether it be asset-centric, or in terms of the speed and effectiveness of service delivery. For example, if you promise a 4-hour time from ticket to resolution, you’d better not only know you can do that, but also make sure that doing so is actually profitable. Getting that right naturally benefits from smart optimization.

Knowledge Management
As Gartner notes, “Although virtually nonexistent for technicians only a short time ago, about two-thirds (64%) of 63 responding reference customers to our latest survey said that they are using or plan to use knowledge management for field service within the next 12 months.” Knowledge management is no joke, and with an influx of new, inexperienced technicians replacing an aging workforce (my last study had technician turnover hovering around 50% annually) getting it right is the key to successfully managing your business.

What tools you use will depend on your business, but manuals on mobile devices might not be enough. Many organizations are finding great success with augmented reality and remote assistance as a means to quickly upskill technicians by offering them a virtual mentor watching them over their shoulder.

Zero-touch Service
While within the context of our current challenges with COVID, this has taken on a slightly different meaning (and has been mitigated by tools like the AI ones discussed previously), in this instance, we’re discussing the ways in which businesses schedule and manage service visits. Gartner writes, “In 2017, Gartner predicted that, by 2020, 10% of emergency field service work would be both triaged and scheduled by AI, up from less than 1% in 2017. Of the surveyed reference customers this year, which represent a small but often leading portion of the overall market, 23% indicated that they already schedule some work automatically.”

Getting this right starts with a robust customer experience tool, and emanates from asset management as well. Solid IoT systems can dispatch technicians before customers even realize there’s a problem, and chatbots can be calibrated to respond accurately to challenges and recommend the right solutions. There are a great deal of tools that support zero-touch, and it behooves the service professional to choose tools that take the fullest advantage of inputs available today, as well as the openness to handle potential new technologies as they come online.

With these broad-reaching changes impacting the industry, it’s important to build a plan with proven partners that understand your business, and have tools that cater to the way you do service, not force you to cater to them. For more trends impacting the industry, and the full vendor guide, click here to access the report.

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July 6, 2020 | 5 Mins Read

Alfa Laval Drives Service Excellence with Remote Assistance

July 6, 2020 | 5 Mins Read

Alfa Laval Drives Service Excellence with Remote Assistance

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By Sarah Nicastro, Creator, Future of Field Service

Alfa Laval is a Swedish company founded in 1883 that is a world leader within the key technology areas of heat transfer, separation and fluid handling. With more than 3,700 patents, Alfa Laval provides worldwide solutions in areas that are vital to society, including energy, pharmaceutical, marine and food. The company has over 17,000 employees, including more than 700 field service engineers, that help customers in nearly 100 countries.

As a product manufacturer with deep history, Alfa Laval has had an eye on advancing its service focus for quite some time. “Service has become an increasing strategic focus for Alfa Laval as we have a huge, installed base with which we need to continue to position ourselves as a trusted partner,” says Cedric Domont, Global Service Sales Director at Alfa Laval. “Service is a key enabler of differentiation and has a critical impact on customer experience. These are the major reasons that Alfa Laval’s focus on service has, and will, continue to increase.”

Like any other manufacturer on the path to Servitization, Alfa Laval has learned it is a journey that takes some time and involves some foundational changes. Jens Pulczynski, Manager Global Service Operations at Alfa Laval, points to a significant shift in company alignment that has enabled the company to make the progress it has. “In 2017, the company was reorganized, and the total lifecycle of products was clarified for alignment, including service sales and service execution,” Jens says.

Digital Transformation is Key to Advancing Service Goals

In addition to its greater companywide alignment on the opportunity around service as a strategic differentiator, Alfa Laval has recognized the role digital transformation will play in achieving its ultimate Servitization vision. “I would divide our technology focus into three categories,” says Jens. “The first is connected products – we have, for some time, embedded our products with connectivity that will allow us to remotely monitor the status and operations of equipment which will increase our service value proposition. The second is remote guidance, which we began investigating last year as a better way to provide expertise to our field service engineers. Then, as COVID-19 hit, we recognized the potential it had in customer-facing capacities and decided to speed our investment in the technology.”

The third area, which will be upcoming for Alfa Laval, is to determine a productive method of virtual selling. “We want our employees to have the right balance between physical and virtual interaction with customers. The progress we’ve made in effectively selling virtually as a result of this time will become something that is sustainable for our business. We’re looking into the right technologies, training, and processes to make this a permanent transformation”, says Cedric.

Remote Assistance Plays a Pivotal Role Through COVID-19 And Beyond

In both navigating the complexity of COVID-19 as well as furthering the company’s broader service objectives, remote guidance has proven impactful for Alfa Laval. “When we began researching remote guidance last year, we were looking at how to support our more than 700 field service engineers. They are supporting a product portfolio with significant complexity and machines sometimes in the market for more than 30 years. We were interested in the idea of providing them more efficient and productive access to remote expertise with a technology that would simulate a hands-on interaction,” says Jens. “As COVID-19 spread and travel restrictions were introduced, we realized that if we acted fast this would be a tool that would aid us in continuing to serve customers throughout the crisis – as well as set us up to serve them better than ever before after the crisis passes.”

Alfa Laval chose IFS Remote Assistance, collaborative merged reality software that blends two real-time video streams into an interactive environment. 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 supporting field service engineers on site or customers directly. “We chose IFS Remote Assistance for our remote guidance because we felt it was a strong technology but also because we value the financial stability and long-term vision of the company,” says Cedric.

The timeframe from beginning of pilot to full rollout was just six weeks, and IFS Remote Assistance is now in use by approximately 150 employees at Alfa Laval. “This solution has provided us business continuity during COVID-19 in areas where travel was banned and keep utilization of our resources high. As we recover from the crisis and return to more normal operations, our use of IFS Remote Assistance will evolve from business continuity to business transformation,” says Jens. “We’ll look at how we can continue to offer remote guidance, eliminate unnecessary travel, improve efficiency, and provide a better work/life balance for our field service engineers. Our customers have been 100% satisfied with the introduction of IFS Remote Assistance and impressed by the way it enabled us to continue serving them, so they will welcome expansion of its use.”

As recovery ramps and business circumstances continue to change, Alfa Laval will work to determine how to expand its use of IFS Remote Assistance and how to continue progressing on the path to Servitization. “IFS Remote Assistance helped us to be fast and flexible when we needed to be, which meant we did sort of a ‘quick and dirty’ release of this technology due to its value proposition in helping us through COVID-19. But it’s just the very beginning,” says Cedric. “We now need to take a step back and operationalize how this fit into our broader transformation – keeping it simple for our customers but looking at how we commercialize it as well.”

Alfa Laval has further goals of connected field service that will all keep the progress moving toward Servitization. “We’ll look at how we can use IFS Remote Assistance hands free, to allow even greater productivity,” says Jens. “And we have various other initiatives to tackle in ensuring our field service engineers are armed with everything they need to provide an excellent customer experience. This is part of a major transformation, and while that includes technology it is also about being willing and ready to think and work differently. We’ve made great progress amid a challenging time and will continue to work together to drive service excellence.”

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July 3, 2020 | 3 Mins Read

The State of Digital Commerce Benefits from a Service Mindset

July 3, 2020 | 3 Mins Read

The State of Digital Commerce Benefits from a Service Mindset

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By Tom Paquin

Forrester, in partnership with Bloomreach, recently published a report on the state of commerce experience for, in which they take a look at how both B2B and B2C sellers have realigned their channel strategies in direct response to COVID-19. There’s a lot of illuminating material in the report, especially on how the rate of adoption of digital channels has picked up dramatically in the face of necessity (unsurprisingly), but what is particularly interesting is that among businesses who sell online, 46% of them are seeing business growth over the last few months.

Another interesting piece, as noted in the report, is that half of the customers accounting for this increase in online commerce are shopping for things that they had never purchased online previously. We’ve discussed this in detail recently, of course, but it bears repeating, especially since we now have empirical data to further support these assertions.

Naturally, the market is following suit. When evaluating their planned commerce spending, 19% have decided to decrease spend on in-person commerce interactions, compared with only 2% before COVID.

These numbers are very compelling for of course all the reasons you’d expect, but evaluating them through the lens of service is an important consideration for both servitized business as well as those that are strictly product-oriented.

Forrester’s research, as it has for the last decade (and full disclosure: I worked there until 2016), centers on the role that technology plays in customer centricity, and the remainder of the report considers things like smart search, and the relationship between direct ecommerce and third-party retailers.

These are all inherently important, and I am fully entrenched in my belief that customer obsession begins by contextualizing technology through the lens of the customer, but there naturally surfaces a challenge in defining a face of a brand when that face has been taken away, and that is where service fits.

We obviously play in the sandbox of field service here, but humanizing your company through service can take many forms. Through smart customer engagement technology, for instance, organizations can not only take some of the operational lift of service off their workers, but also make their workers front-and-center to the conversation of their customers’ challenges. This is a little thing that goes a long way, especially in a world where, as the data shows, purchases are just a click away, and so are your competitor’s sites.

Servitization is of course the other major way that businesses can humanize their brands, and also retain customers through service agreements that have reasonably low overhead and help customers remain within a specific product ecosystem. By building service contracts with the customer in mind to accentuate the capabilities of your ecommerce system, you’re getting the best of both worlds: point-of-sales easiness right alongside an opening into a face-to-face relationship with the customer. The best companies combine that commerce and service data into a single practice that supports business growth.

We know this works. In a study IFS commissioned with IDC, we see that highly-mature servitized companies in the manufacturing space are 8X more likely to see a visible increase in profits directly tied to digital transformation and 5X more likely to grow revenue faster than 5% annually.

There are obviously limitations to the pervasiveness of this theory, though I’d argue fewer than you’d think. I had intended to use clothing as an example, but the existence of my StitchFix stylist (shout out to Kristina) reminds me that businesses are finding new ways to servitize everything. I’d say disposable goods like cleaning supplies are likely to be mired by pay-per-use indefinitely but I am certain that someone smarter than me is working on a way to servitize such industries as we speak.

COVID restrictions will (thankfully!) not be forever, but changing consumer sentiment will have permanent consequences for the sale and distribution of goods. It has mostly accelerated the changes that have permeated all businesses over the last half-decade or so. Service could be the key to championing that change, and making it your own.

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June 29, 2020 | 4 Mins Read

As Remote Connections Increase, So Do Cyber Security Needs

June 29, 2020 | 4 Mins Read

As Remote Connections Increase, So Do Cyber Security Needs

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By Sarah Nicastro, Creator, Future of Field Service

In the span of a few short months, our world has become more virtual than it has ever been. For service organizations, this means not only work-from-home scenarios across functions but also the need to provide remote service to customers. As such, companies have turned to digital tools to allow employees to stay connected to company leadership, employees to stay connected to one another, and for customer communications and service to remain intact.

We’ve discussed many themes this evolution brings about, including accelerated digital transformation, a speeding up of Servitization and outcomes-based service approaches, and lessons in virtual leadership. One topic that was brought up to me recently that we have not yet discussed, however, is how this rapid uptick in remote connections is significantly increasing the need for more robust cyber security initiatives. Whether data is being transferred within the company, or to and from customers, rising remote connections and more data transfer equal greater security risk and it’s important to address that fact to protect your company, and customers, from harm.

I came across an article recently from Umesh Yerram, Vice President and Chief Data Protection Officer at AmerisourceBergen that presented some excellent points on building a purpose-driven security organization. As service organizations ramp up cyber security efforts, ensuring you have the right skills, structure, and processes in place are all imperative. Below are five important pieces of advice Umesh shares based on his experiences:

#1: Aligning with organization’s purpose. “Most of the security practitioners are very technical resources and enjoy dealing with bits and bytes. But if those same security practitioners internalize organization’s purpose and understand how their daily activities contribute towards meeting their organization’s purpose then it increases their productivity, sense of ownership and job satisfaction. Every member of the purpose driven security organization should have the same goal regardless of which security team (or any team in general) there are part of,” says Umesh. “For example: healthcare security teams should understand how their role & responsibilities contribute towards positive outcomes for their patients or security teams in other industries should understand how their roles and responsibilities contribute towards their customers’ experiences when using their company’s products and services. Once that understanding is crystalized then security teams are more focused on contributing towards organization’s purpose than just bits and bytes.”

#2: Break down silos. “Over the years each information security area – IAM, GRC, Data, Cyber, Awareness - has become more complex and challenging. However, every area is not independent but contributes towards the greater goal of securing the organization to meet its purpose. Security teams tend to focus on complex projects within their areas without learning about the other security projects and gaining a good understanding on how all those projects fit into the overall big picture,” explains Umesh. “Breaking these silos constantly enables the security teams to understand the big picture and how their efforts contribute towards the overall goal to serve its purpose. Whether it is opening individual team meetings to all security team members or using monthly town halls to help reinforce the interconnected nature of the projects will enable collaboration and seamless integration of different security capabilities.”

#3: Hire the heart, train the mind. “There are millions of open information security roles due to lack of skilled information security professionals. Information security teams must think outside the box to hire – System Administrators, DB Administrators, Application Developers, Veterans, Communication majors etc. - and focus on hiring diverse, smart resources who have the right attitude and eagerness to learn,” says Umesh. “Technology changes rapidly, therefore, if you focus on hiring resources based on current skills then those skills will be outdated quickly. However, if you have the team with the right attitude and appetite to learn new technologies quickly then they will constantly upgrade their skills and continue to serve the purpose long term.”

#4: Build a sustainable winning roster. “Like every NFL team, every security organization has a cap when it comes to building its roster. Security teams can take a leaf out of NFL roster building playbook (no pun intended). Building a security team with experienced veterans along with new experienced hires (free agents) and fresh graduates (rookies) is a winning combination. This is model will help new experienced hires and recent graduates to assimilate with company culture and learn from proven veterans while building a team for the future without missing a beat to serve the purpose in the long run,” suggests Umesh.

#5: Develop a trusted partner network. “Vendor partners are an extension of the team. Building a strategic vendor partner network with those who understand and share your purpose and help you meet that purpose is critical,” notes Umesh. “Vendor partners who are only interested in a transaction-based relationship are not long-term partners and will impact security team’s ability to serve its purpose. Building a strong collaborative partnership with vendor partners that you can leverage to influence their services and products’ road maps to meet your strategic goals will be mutually beneficial and delivers value to both organizations.”

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June 26, 2020 | 3 Mins Read

Simulating Service

June 26, 2020 | 3 Mins Read

Simulating Service

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By Tom Paquin

Early in June, an ArsTechnica reader managed to uncover a strange piece of synergistic multimedia: SimRefinery. Developed by Maxis, creator of 1989’s SimCity, SimRefinery was a tool to help onboard workers at Chevron’s Californa oil refinery. Maxis had developed a division in the early 90’s called Maxis Business Solutions with the purpose of gamifying certain elements of knowledge management for employees and potential employees. In the words of librarian and archivist Phil Salvador:

Oil refineries are really, really complicated. That’s why Chevron wanted Maxis to make them a game like SimCity, to teach the employees at their oil refinery in Richmond, California how it all worked.

To be clear, they didn’t want a game that was supposed to accurately train people how to run an oil refinery or replace an education in chemical engineering. That would’ve been incredibly dangerous. What they wanted instead was something that showed you how the dynamics of the refinery worked, how all the different pieces invisibly fit together, like SimCity did for cities.

Games as training tools had a brief moment of popularity in the early 90’s, just as personal computers were becoming less of a hobbyist endeavor, and again began gaining traction in the early days of mobile apps. Written off as a novelty by many businesses, they are now more often tools for quizzes or simple trainings. What I find particularly interesting about SimRefinery, though, is that it’s more about the systems that make up a business, how they work together, and what happens when failures occur. In SimCity, you could trigger “disasters”, which ranged from tornadoes and fires to alien invasions and kaiju encounters. Interestingly, those scenarios were brought into SimRefinery as well, and offered users the ability to figure out how to mitigate loss and rebuild after these horrific catastrophes.

Of course my mind inevitably goes to service, where the number of interlocking systems, on a macro level, are substantial. Think about the global enterprise, attempting to manage business from a central hub, then nationally, then regionally, then to service territories, then down to individual sites (like a refinery, for instance!). Add in the complexity of parts management, contracted labor, and product manufacturing (if appropriate) and a refinery seems almost quaint by comparison.

Are there any service-focused games that have that level of detail? None that I know of, certainly not any of any particular use to the enterprise. Of course, with any such simulation tool, you need to start with what the intended use actually is. If it’s training, that’s one thing, if it’s showing people how systems work, that’s another. I’d argue, however, that simulations like this work best for service when they serve the purpose of preparing forecasting and scenario planning for businesses.

Recently I wrote about the importance of multi-time horizon planning in service. If you take the broadest piece of that, the strategic piece, you can start to see a practical use case for simulation in service. “What-if” scenario planning is a key component of best-in-class planning optimization, and though it might not be as much fun as working your way through an alien invasion, but imagining how specific scenarios impact your real service capacity, you can have the right contingency plans on hand to ensure your business is ready for anything.

Imagine how the COVID-19 crisis would have been handled differently if you could take your scheduling, parts, and operations plans and set up a system of scenarios wherein you account for massive drops in workforce availability, or travel restrictions, or decreases of specific types of service appointments. Think about that, even today, as plants, manufacturers, and retailers come back online and assets re-enter serviceability. How can you scale up? How many contingent employees do you need to bring on? What’s practical for scheduling.

Though not as flashy as SimRefinery, all of these capabilities are available today, and are powerful tools in helping you plan appropriately for tomorrow’s challenges, no matter the scenario. They may not be able to help you prevent an alien invasion, but they’ll keep your business running.

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June 22, 2020 | 5 Mins Read

Defining the Future of Work

June 22, 2020 | 5 Mins Read

Defining the Future of Work

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By Sarah Nicastro, Creator, Future of Field Service

We’ve discussed quite a bit on Future of Field Service how COVID-19 will impact service businesses over the long term, how it will spur forth the journey to Servitization, and how it will act as an accelerator to digital transformation. But what is less clear is how will the work get done as these changes take place? To what degree will workplaces return to their pre-COVID-19 existences, and what new practices will forever stick?

It’s interesting to consider how navigating our way through this global pandemic may impact the future of work in a permanent way. Many share the opinion that remote work should become our new norm, and as a pre-COVID-19 remote worker, I can vouch firsthand on the improvement in both productivity and work/life balance. But it isn’t all positive – I’ve discussed recently with service leaders some of the challenges of our recent evolution to virtual everything. Those include videoconference burnout, feelings of isolation, it being harder to pick up on social cues and benefit from casual hallway interactions, and the need to evolve how we measure and track success.

The conversations I’ve had with service leaders in recent weeks around this topic differ based on what area of the workforce we are discussing. Three main areas that have come up are if and how COVID-19 will permanently change field service roles, whether the sales workforce needs to return to pre-COVID practices, and to what degree formerly office-based roles should remain remote. It’s clear that no one company has this “all figured out,” rather these are ongoing conversations within businesses today to define their future of work. Here are some common points that come up in conversation related to each category of work:

To What Degree Will Field Service Become Remote Service?

Many businesses have had to either fall back on existing or deploy new ways of providing remote service. One company I spoke with recently said that their previously deployed augmented reality based remote collaboration tool increased in use from February to April by more than 700 percent. We covered how Munters deployed remote assistance to gain business continuity in areas where travel was banned, and their use of the technology is expanding. With companies forced to adjust to distancing and no-travel conditions, the question now is to what degree will these remote service practices stick?

Most agree that they won’t replace field service visits altogether, ever. But gaining the ability to remotely diagnose and resolve issues has powerful benefits. It provides faster resolution to customers, reduces costs for the service organization by reducing non-essential visits, and some have said it has even improved the work/life balance for technicians because they are able to provide support remotely part of the time instead of always being on-the-go.

Companies I’ve spoken with recently are now moving out of “damage control” to putting some intentional thought and planning behind the permanently increased role of these tools – how to create proper processes, how to commercialize the service offerings, and how to ensure the have the appropriate resources staffed and available for both remote and on-site work. In addition, companies are working to be sure their field technicians feel more empowered as recovery ramps up so that they know they never need to be in a position they don’t feel safe. Mental health is another key consideration as companies look to determine the best ways to keep a sense of connectedness with a mostly or entirely remote worker.

Is the Future of Sales Virtual?

Another area that has come up in discussions is sales – sales is a function that in most industries pre-COVID-19 involved significant amounts of travel and face-to-face interactions. As the ability to conduct business that way came to a screeching halt, sales teams were forced to get creative and find new ways of making connections, fostering relationships, articulating value, and closing deals. While I’m sure there are some portion of sales executives chomping at the bit to get back on flights and back into boardrooms, I’m not sure it is the majority.

I believe there’s been a realization among companies that the degree to which sales was conducted involving travel before is not exactly necessary. I don’t think that means that the post-COVID sales world will be entirely virtual, but I bet there will be a lot more thought and caution put into how much travel is really required to get the job done. One company I spoke with recently has no desire to go back to “the way it was,” and are in the process of formalizing virtual sales processes, tools, and trainings with the objective of making it their new normal going forward.

Do We Ever Need to Return to the Office?

The final category of discussion is around any of the roles that were formerly office based that have become virtual – from customer service to IT to operations to leadership and so on. Some companies are beginning to phase back into having employees return to the office; others have announced extended virtual working operations. I’d say definitively that for any company, this situation has opened eyes when it comes to the ability to successfully and productively work from home – which I do think will have lasting implications.

Companies must determine for themselves what parameters to use to determine when, how, and to what degree they’ll return to the office environment. In a recent podcast with Reihaneh Irani-Famili, VP of Business Readiness at National Grid, we discussed a number of relevant considerations for these decisions. First, she shared that for National Grid, they had conducted a survey and determine people simply don’t yet feel comfortable returning – and consideration of your employees’ feelings, needs, and comfort is certainly major.

Beyond that, we discussed some of the common topics – videoconference burnout and how to avoid it, making virtual meetings effective and productive, and keeping teams collaborative and engaged. Reihaneh brought up an incredibly valid point around the need to provide better visibility into outcomes when working in a virtual environment. “When people are virtual, they need the clarity of the deliverable that they're driving. You need to replace that 8:00 to 5:00 mentality by a deliverable-based mentality and a value-based mentality. And it's both for the leaders in the companies as well as for those employees,” she says. “Because as an employee, if before my success was to spend eight hours in the office, now that needs to be replaced by ‘this is the value that I have created in the hours that I was working or being productive.’ The more clarity you can give on the outcomes and the value that you're trying to drive and less about how they would get to that, it helps people be more productive, more engaged, and it would really make sure that your productivity doesn't get impacted by this sudden move to a virtual environment.”

Most leaders I’ve talked with agree that a 100% return to office work for employees that did so before is unlikely, but so too is becoming 100% virtual. It seems to be agreed upon that while productivity is high in a work-from-home environment, certain types of collaboration, teambuilding, change, and major initiatives are difficult to achieve success with in a virtual-only way. As such, some combination seems likely for most businesses.

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June 19, 2020 | 3 Mins Read

Mobile Device Management in the COVID Era

June 19, 2020 | 3 Mins Read

Mobile Device Management in the COVID Era

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By Tom Paquin

When I was 13, I saved up my paper route money every week for a whole year in order to afford to get a computer of my own: A small, beige, sluggish laptop purchased from CompUSA. It was probably one of the only computer sales that the associate ever had that consisted of quarter rolls and one-dollar bills, but there’s really no experience like cracking open the box of your very first electronic device. Once the sweet ozone of fresh plastic clears the air and you boot the thing up, you begin the less magical experience of installing all the software that you need to make the thing actually useful.

For businesses deploying new hardware to their service employees, or just trying to manage “Bring your own device” (BYOD) hardware, this is an even more tedious prospect. Whether you’re onboarding new hires or managing a large or small-scale refresh, getting the right tools to the right employees, and ensuring the right logins and applications are active, can all be an arduous process. Mobile Device Management (MDM) has sought to eliminate a great deal of those challenges by managing cloud licenses holistically, allowing the home office to make sure software and logins are active out of the box, revoke or add licenses to software remotely, and generally manage utilities from a central dashboard.

With MDM, it’s easy to get caught up in the “mobile” bit, and, indeed, this definition is meant to encompasses all mobile devices, whether they be phones, tablets, rugged devices, or wearables (depending on your vendor of choice). But it’s important to remember that device management should extend to computers as well. This is important for a variety of reasons, chief among them that, as noted previously, all of your software should be 1:1 between mobile devices and desktops. More urgently, managing not just software—but devices in the hands of your technicians and back office employees—using a system that requires zero physical interaction is more important than ever right now.

I should note that, in addition to providing a means to avoid physical contact, Mobile Device Management is a pillar of ‘New IT’, which empowers your non-IT employees to set up their devices remotely. The principles of new IT are simple enough: Employees should pilot as much of the installation and management of their devices as possible. They open the box, boot it up, make sure everything's installed, and get to work. For that to be an effective strategy, the foundation of support and automatic rollout that MDM allows is imperative.

A “New IT” mindset within this context is uniquely valuable in the field, as it empowers technicians to manage device issues themselves, but nevertheless offers them the lifeline of having their device information and status available to IT remotely. We talk so frequently here about remote resolution, but it’s easy to forget that such a capability should extend to your employee’s devices as well.

COVID accelerates the need for this in all of the obvious ways, as well as some less obvious ones. Sure, with MDM you have the ability to provide contactless updates and onboarding. But what about situations where you need to onboard large groups of contingent workers, or empower those contingent workers across large geographies? The right management tools on the back-end means that workers need simply register their devices to get everything up and running. Often more importantly, you can revoke access to apps once the end of a contract is reached, preserving your internal systems for internal stakeholders.

Technology is best when it gets out of your way, allowing you to deliver on your service objectives fully, effectively, and without compromise. This starts out of the box with the right technology to manage service operations, but invariably extends beyond to the way that you manage how all those utilities reach your front-line employees every day.

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June 15, 2020 | 5 Mins Read

COVID-19 Is Speeding Servitization Progress, But These 4 Barriers Will Hold You Back

June 15, 2020 | 5 Mins Read

COVID-19 Is Speeding Servitization Progress, But These 4 Barriers Will Hold You Back

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By Sarah Nicastro, Creator, Future of Field Service

One of the topics that has come up in the majority of conversations I’ve had with service leaders battling the challenges of COVID-19 is how it has impacted the way in which they need to serve their customers. The biggest wants and needs of their customer base look far different than they did just four months ago, and this is forcing companies to be creative and innovative to adapt to new demands. Practically speaking, many customers are facing financial strain at worst and extreme fiscal caution at best, which is putting the breaks on large expenditures and long-term contracts. Companies that are reacting nimbly are embracing Servitization and outcomes-based service concepts and looking to move toward OpEx and subscription-based models that guarantee a level of service and ease investment concerns. For manufacturers, the shift to Servitization protects them from a potential loss or slowing of product revenue by taking advantage of the customers’ preference to extend the lifecycle of assets through service – and for service organizations, the move to outcomes provides peace of mind to customers while providing recurring revenue.

As such, our current global crisis is taking the journey to Servitization and delivering outcomes that most businesses we speak with are on and speeding it significantly. This journey is complex and multi-layered, which is why we’ve seen relatively slow progress – but as in other areas, COVID-19 will act as a major accelerator and will spur organizations forward in ways that may stretch them and bring about some growing pains but will ultimately make them stronger.

The Servitization Maturity Curve

Many companies I speak with that are on the path to Servitization have defined their own maturity model – they’ve mapped out where they are, and the steps they will work through to reach the ultimate goal based on their own definitions. In 2019, IFS partnered with IDC to create the IDC Servitization Maturity Framework. It outlines four stages of the journey to Servitization, as outlined below (Source: IDC Servitization Maturity Framework, 2019):

  1. Splintered. The organization struggles under a myriad of silos that lead to disjointed, manual processes. Legacy, fragmented ERP environments provide little or no visibility on operational performance. The business model is on pure product, with challenges to profitability.
  2. Side-car. The organization has standardized the two chunks of the value chain (back-office and front-desk) but keeps them separated. Keyword in the company is efficiency and add-on services delivered are few. Field service is based on basic mobile capabilities and IoT stacks are at Proof-of-Concept stage. Growing the business is hard.
  3. Joined-up. Front-office and back-office flows have been integrated both directions and leverage the power of advanced technologies such as IoT to feed the core systems with real-time data. In some cases, Edge capabilities bring coordinated autonomy to local sites. A suite of digital services is fully available, and business model enhancements such as pay-as-you-use and outcome-based contracts are being explored.
  4. Borderless. Processes start and end outside the organization and operations and technology enables different elements of the value chain to connect. Co-creation, data-sharing and collaboration with customers, suppliers, partners from other sectors and in some cases even competitor part and parcel of the business model.

Based on IDC's benchmark, 50 percent of the organizations find themselves at Stage 2 (Side-Car), and another 14 percent are stuck in the nightmare of splintered operations (Stage 1). A third of companies interviewed have started joining-up their value chains (Stage 3), and less than 5 percent have reached "Nirvana" (Stage 4) and already opened up their service platforms to the ecosystem.

4 Primary Barriers to Servitization Success

Looking through these four stages you see some of the changes a company needs to make in shifting from a manufacturer of products to a trusted solution provider. It’s hard to deduce from a short description the many layers of challenges that exist in migrating through these phases, but those on the journey are well aware of the complexities. Despite those complexities, COVID-19 and its impact on customer needs and demands is going to force companies to pick up the pace in progressing through these stages. While the IDC data is specific to a manufacturers journey to Servitization, the barriers in the migration for a service business from break-fix to outcomes aren’t all that different.

Here are four primary areas of barriers that will slow your progression to Servitization or outcomes-based service:

  • Mindset shift – this may sound far too simple, but it’s harder than you may think – especially for a long-time product manufacturer. To deliver on the potential of Servitization, you must begin with seeing your company as a SERVICE company versus a product company. This mindset shift cannot happen only at the top but has to be carefully integrated throughout the company culture. This requires significant change management and is where many journeys stall out because it sounds simple but is oh-so-hard in practice.
  • Clarity on customer needs – in order to deliver a service your customers want or an outcome they’ll be willing to pay a premium for, you need to be intimately aware of their needs. Far too many organizations try to win the race to Servitization, or outcomes based on their own understanding of what they’re customers want versus a firsthand perspective of the problems customers are willing to pay to have solved. Taking the time to gain real-world customer insight on what they want and need is imperative to Servitization success, and even more so in a post-COVID world as those needs have changed and are continuing to change.
  • Lack of enabling technology – you see in the IDC insights provided above that Servitization requires a well-orchestrated collection of technology to enable success. Real-time data flow is critical, and the ability to plan and make quick decisions based on this data is essential. You see described a progression away from manual processes to an automated, real-time environment; intelligent planning and optimization; the incorporation of IoT and asset data; and the introduction of digital services and information sharing. This enabling technology has to be layered on in a practical manner, starting with foundational systems that provide the real-time information flow and automation of manual processes. Many companies get stuck in determining how to appropriately outline, integrate, and execute on a digital transformation strategy, which holds them back from achieving Servitization success.
  • Internal alignment & processes – Even with a service-first mindset, clarity on customer needs, and a strong foundation of technology, Servitization success can be elusive. This is because it requires such extensive internal transformation in company-wide alignment and processes. This transformation is necessary in overhauling what’s required of your field force, your R&D team, your marketing department, and – critically – how you sell. It’s an immense amount of change and coordination ripe with many opportunities to be slowed or stalled. However, one of the positive aspects of the COVID-19 challenge is how it is forcing organizations to be more open to change, more agile, and more flexible than ever before – and while that doesn’t minimize the challenges of reaching Servitization or outcomes-based service success, we’ve now learned we can do hard things and that newfound fortitude will help spur companies forward in their respective journeys.

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