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July 11, 2019 | 6 Mins Read

Building and Maintaining a Satisfied – and Loyal – Customer Base

July 11, 2019 | 6 Mins Read

Building and Maintaining a Satisfied – and Loyal – Customer Base

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By Bill Pollock

By focusing your service and support performance on the specific needs and requirements of your customers, you are much more likely to end up with a satisfied customer base. However, in order to build a loyal customer base for yourself and your company, you will need to go well beyond merely keeping them satisfied.

During the 1990s, a new philosophy of customer service was adopted by some of the more progressive services organizations – the philosophy of becoming an "interactive" partner with their customers by working closely with them to gain a better understanding of:

  • What products and services they use,
  • How they are being used,
  • When they are being used,
  • Who within the organization uses them,
  • What impact downtime has on their business operations, and
  • How they ultimately use their products and services to help them run their respective businesses better.

This philosophy has assisted many services organizations in "turning the corner" on their ability to provide "world-class" service and support to their customer base. A true (i.e., interactive) services partnership must, first and foremost, be focused on the specific needs and requirements of the customer. However, by doing so, you will find that the ultimate outcome will likely be a "double-edged sword" in terms of its potential benefits to both you and your customers. For example:

  • You, and your company, will both stand to benefit significantly through an increased understanding of your customers’ total services needs and requirements, thereby leading to a better understanding of what it will take to successfully meet them;
  • Your customers will also stand to receive higher – and more consistent – levels of service and support as a result of your increased ability to focus your attention on the specific areas that are most important to them; and
  • It will be easier for you to obtain more direct customer input and feedback in the future, resulting in fewer lingering customer service problems and quicker overall solutions in most cases.

There are many other benefits that can ultimately be realized through the establishment and maintenance of a customer partner relationship, but it must be a continuous and interactive process in order for it to truly succeed. It will require significant effort on your part – as well as on the part of your customers – and it will involve ongoing communications and interaction between each of the parties. Partnerships require a great deal of work on both sides – first, to build them and, second, to maintain them over time. You must never lose sight of the importance of these partnerships, as once your customers believe you have "forgotten" about them, all of your credibility will be gone, and your service and support capabilities will become nothing more than a commodity provided to them by relatively interchangeable vendors. You also need to focus your customer service and support energy directly on the customer. Having a customer focus means that you are always conducting your business in a manner where the customer does not have to make multiple calls, visit numerous webpages, or explain his or her problem repeatedly to more than one person. In other words, you are conducting your day-to-day business in as responsive a manner as possible – with your customers’ best interests first in mind. Best practices services organizations do not settle merely for customer satisfaction, but instead seek to gain customer loyalty as their primary goal. These types of organizations are typically focused more on the concept of “lifetime customer value”, rather than on a “quick fix”, quick sales, or generating a “one-time” satisfied customer. By looking at your customers through this more broadly defined perspective, you will be better able meet their demands and needs over time, generate customer satisfaction, and build the foundation for customer loyalty. But, this will only happen if you are truly responsive to the customer. To ensure that you are, you should follow the following guidelines:

  • Listen to your customers; then make the necessary changes to the way you approach their needs based on what they tell you;
  • Use a variety of listening and learning strategies (i.e., Listen, Observe, Think, Speak, or LOTS) to continually obtain customer input and feedback reflecting their perceptions of your performance matched against their needs and requirements, expectations, and preferences; and
  • Improve the way in which you support them based on the feedback you receive on a continuous and ongoing process.

It is very humbling to realize that no matter how good you are at customer relationships, you can always do better. The best advice you can follow is to:

  • Listen to your customers - you can't know what they really want unless you ask them; and you can't tell if they are truly satisfied with your performance until they tell you, one way or the other.
  • Once they tell you what they want, either respond to them quickly, or tell them when you will have an answer for them shortly – and then provide them with the answer as quickly as possible.
  • Don't hit your customers with any surprises; if you promise them “A”, then you need to deliver “A” - not “B”, or “C”, or “A-“, and then tell them it's an “A”.
  • Confront all customer issues quickly, firmly, and as if they are the most important issues you will be facing all day – because they are!

Customers can oftentimes be very fickle – but generally only when the service and support they are receiving is erratic, inconsistent, or inadequate. However, if the customer service and support you provide is focused, consistent, and generally perceived as being "over and above the call of duty", then you will find your customers to be more than merely satisfied – they will be loyal. It is once again very humbling to remember that your customers’ perceptions of your service and support performance may be only as good as the last service call you've made in their behalf. Despite an impeccable service performance track record over the past year or more, all you have to do is mess up just one time, and you may find yourself right back to square one. Unfortunately, the converse is generally not true; that is to say that if your performance all last year was unsatisfactory and, all of a sudden, your last service call was perceived to be "superior", don't expect everything to change overnight – because it won't! Customers have long memories – especially when something “bad” is involved. The more loyal a relationship you and your customers have built over time, the more "forgiving" they are likely to be should you "mess up" on occasion. Partners do that – they forgive each other when there is reason to do so. Partners are honest, they rally to each other’s side when they are in need, and they work together toward the common goal of making their jobs – and their lives – easier to deal with. Otherwise, you’re just a vendor, and they’re just a customer – and they've got a handful of you, and you've got dozens (if not hundreds or more) of them. Establishing a good, strong, interactive services partnership makes each one of you more important to the other – and that essentially lays the foundation for a successful customer relationship. In the most successful services organizations, the voice of the customer ultimately drives its customer support operations. However, acceptable customer service – from the customer's perspective – generally requires cross-functional teamwork and processes on the part of your organization. Some of this will be entirely under your control, and some will not. Accordingly, your role will be to take whatever is under your control, and apply it to your customers in the “real world”, in a professional and courteous manner, and with your own style of “human touch”. In this way, you and your customers will be able to work in unison toward common customer service goals and objectives. Your ability to provide them with seamless customer service and support will represent a good first step toward building and maintaining a satisfied – and loyal – customer base.

July 8, 2019 | 4 Mins Read

5 Common Failure Points of Field Service Software Implementations

July 8, 2019 | 4 Mins Read

5 Common Failure Points of Field Service Software Implementations

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By Sarah Nicastro, Creator, Future of Field Service

Last week while attending the IFS UK&I User Group Annual Conference outside of London, I had an opportunity to sit down and chat with Alastair Clifford-Jones, CEO of consulting firm Leadent Solutions. Besides bonding over a mutual love of live music and sharing parenting tales, we reflected on our years in the world of field service – what has changed and what hasn’t.

One of the points that Alastair brought up related to what has changed is that earlier on in his time working with field service organizations, there were situations where software implementations went awry because the technology simply didn’t work the way it was intended (or promised) to work. With the advancements that have been made and the current state of service management software, however, the reality is that today’s technology does work. “Technology works; projects fail,” says Alastair. “The solutions that exist in the market today are strong – but that doesn’t mean that implementations always go smoothly.” I asked Alastair to share some of the most common reasons that the implementation of a solid field service software solution go wrong. With many years of experience consulting in a variety of field service industries and with numerous software platforms, he summarizes the five failure points that take the best of intentions off course.

#1: Change Management Gets Deprioritized (Or Cut)

While companies all “see the value” in change management and consider it an integral part of software implementation, according to Alastair efforts often deteriorate as a project goes on. “Change management may account for $2 million of a $10 million project as a company sets off with great intentions, but it’s the first thing to get cut from the budget,” he says. It isn’t so much a failure to recognize the importance of change management, but rather the willingness to compromise on well-laid plans when dollars need to be saved or reallocated. Companies that think they can find shortcuts or workarounds with change management to save dollars often find themselves in the midst of a failed project, because as we all know change management is critical to acceptance and adoption of the system.

#2: There’s a Faulty Definition of Failure

Another common failure point Alastair described is that companies sometimes perceive failure when, in reality, the project hasn’t failed at all. “What we see is that often expectations haven’t been met and stakeholders deem the project a failure, wheat has really happened is that the expectations or course of success wasn’t set or managed correctly,” he says. We discussed that during the course of a successful software implementation, there is often a period just after go-live where performance does dip – if a company isn’t expecting this, it can cause a panic that the project has failed or the investment was a mistake, when what’s really needed is a bit of patience. They don’t know that they just haven’t seen the process through to the point where performance begins to rise and value begins to become apparent.

#3: Not Setting Success Metrics I

t is incredibly difficult to determine your level of success or failure if you don’t have KPIs in place. “We see projects fail because companies didn’t have KPIs before, and don’t set them before beginning implementation,” says Alastair. “To get an accurate view of your project’s success or failure, you have to have KPIs set and measured before, during, and after the project.” Not having set KPIs also prevents companies from being as focused as they need to on what areas will lead them to project success. For instance, if you know that you have a really poor first-time fix rate, this gives you a critical area on which to focus for initial improvement. That success will breed further success, but without knowing what to focus on you are doing a lot of guess work which is a recipe for disaster.

#4: Ineffective Project Leadership

Striking the right balance of product leadership for a field service software implementation can be challenging, because the business function needs to weigh in but so does IT. The lack of a unified team, clear communication, and coordinated efforts puts strain on a project’s trajectory. “What we see is that, often, software is being implemented by someone who doesn’t understand the business. They are working to give the business what they’ve asked for, but as the business asks for those things they don’t have the technical expertise to articulate them in relation to the software’s capabilities,” says Alastair. “This lack of alignment causes major issues and does a lot of damage that takes substantial time and money to repair.” This is an example of an area where a consulting firm can add a lot of value to a software project, because they have the knowledge and expertise to weigh all stakeholders needs and land on the best possible outcome.

#5: Projects Move Too Slow

Many field service organizations have adopted a more agile software deployment methodology, but not all. Alastair explains that the companies still using the waterfall approach struggle in an ecosystem where change is occurring so rapidly. “What happens in the waterfall scenario is that the project delivered meets the objectives outlined, but the business needs have already changed significantly since the objectives for the project were set,” he says. It’s worthwhile for companies to consider how they can make their software purchase and deployment process more agile to be better aligned with the market and to avoid this failure point.

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July 1, 2019 | 3 Mins Read

Reverse Logistics Software Buyer’s Guide

July 1, 2019 | 3 Mins Read

Reverse Logistics Software Buyer’s Guide

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By Tom Paquin

It’s easy for organizations to think about reverse logistics as parts management in reverse, and because of that, many firms settle on a boilerplate parts management solution and expect it to manage the dense cloud of inventory challenges that reverse logistics represents. Reverse logistics is much more than returns, though. For most service firms, it’s removing an asset or part from a customer, the act of repair or replacement, and getting that part back. It’s a microcosm of service in and of itself.

To add a layer of challenge on top of that, the systems, pathways, and outcomes for each firm will represent a layer of complexity that will be unique to your business. Furthermore, all of these pieces need to communicate with your inventory system, your field service management system, and so on, in order to maintain operational integrity. With all that in mind, here is a brief buyer’s guide for reverse logistics software. Find a solution... ...with dedicated reverse logistics capabilities. Parts management is great, but in order to manage reverse logistics from farm to table, you want a solution that goes beyond parts management, and doesn’t just treat depot repairs as a reworked on-site repair. You shouldn’t have to change your internal processes to fit into your technology mold; Your technology should accommodate you. The easiest way to do that is to start with a solution that’s actually designed to do, specifically, what you need it to do. ...that organizes your firms’ complexity. After mapping out your reverse logistics pathways, it can seem dauting to consolidate all of those loose ends into a unified concept, which is why it’s so imperative to find a solution that does. Don’t compromise on how you want to see the stages of reverse logistics in action, but be open to those software providers who understand service, and know how to best optimize your systems. Complexity is a good thing, as long as you’re capable enough to manage it. The right software will make you that capable. ...that integrates seamlessly. Systems need to communicate in a common language. It may seem like a sophisticated reverse logistics engine with the depth needed for complex operations can only exist as a bolt-on, but the best service firms have not only the depth to handle any service need, but also the breadth of capabilities to ensure that every piece of the service lifecycle is centralized. Once service is managed, those systems naturally have to communicate with CRM, marketing, and so on. Don’t skimp on connectivity. Getting the full picture pays dividends. ...where the team will stay with you through the go-live, and remain a long-term advocate for your success. Software is software, and a good software partner will hook everything up where it needs to go and help you pilot your new software. The best integration partners understand your business, understand service, and remain an advocate and ally for your service success. This should never be a throwaway element of any software purchase. Reverse logistics is having its moment, and now is the time to be sure that you’re ready to take full advantage of the capabilities available. If you map out your business needs, make the right hardware and software choices, and keep your eye towards emerging technologies, you can turn a complex process into an asset for your business.

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June 27, 2019 | 3 Mins Read

3 Opportunities to Upskill Your Technicians for Today’s Field Service Landscape

June 27, 2019 | 3 Mins Read

3 Opportunities to Upskill Your Technicians for Today’s Field Service Landscape

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By Sarah Nicastro, Creator, Future of Field Service

In the world of automation this and artificial intelligence that, the role of the field technician is often questioned. Will technology eliminate the need for technicians altogether? I think not. But the role and responsibilities are undoubtedly changing and will continue to do so. The good news, for your technicians and for you, is that this world of automation and intelligence frees them up from manual, preventable tasks to do more value-added work.

The challenge is, this often isn’t a shift that comes naturally. In addition to the proliferation of technology, the entire field service ecosystem is changing. Customers have new and more sophisticated demands, companies are competing less on product and more on service, and data is now our most valuable resource. With all these changes at play, it is time for you to consider the ways in which you need to upskill or reskill your technicians as their time is freed up in a way that will offer you competitive advantage or impact your bottom line. As you incorporate tools like IoT, AI, and ML that reduce the drain of manual tasks on your workforce, consider these three areas in which it might make sense to upskill or reskill your talented technicians.

#1: Hone Their People Skills

As customer focus becomes prioritized every field service operation, one of the biggest challenges I hear tell of is the need for more soft skills. Technicians that are highly skilled and knowledgeable in repairing a certain product may not have historically needed to be all that people-friendly. Those times have changed. Today, service is the frontline of your brand – it is the impression that will matter most in how you are viewed in the eyes of your customers. It is a, if not the, major differentiator for organizations today. Therefore, you need to focus on improving the people skills for all your frontline workers. These skills include communication, empathy, problem-solving, empowerment, engagement, and confidence – as well as a solid understanding of how to be respectful of someone’s time and property. Going beyond those basics (which, believe me, many need to work on), you will want to consider how to equip your technicians with the skills and ability to be consultative, to suggestively sell/cross-sell, and to become an expert at providing real-time insights.

#2: Harness Their Knowledge to Train and Educate

When you find yourself successfully leveraging technology to the point you’ve reduced your demand for field visits, and you will, you’ll want to think about how you can re-deploy some of your most skilled technicians in an impactful way. One avenue is to mold your technicians to be master trainers and educators. There are several applications for this – you could use expert technicians to train new field talent, you can enlist their customer-facing knowledge to educate product and sales teams, and you can even look to use skilled technicians to train and educate your customer base.

#3: Develop Their Data Analytics Abilities  

Data is the foundation that the future of field service is being built on. Service organizations that are embracing Servitization and outcomes-based service are determining not only how data can be utilized internally to provide more predictive service, but how data can be used to create new offerings and revenue streams with customers. If you are collecting data from assets, you are undoubtedly sitting on a wealth of insights that your customers would likely be willing to pay you for. The hard part is finding out exactly what those offerings are, how to deliver on them, and how to monetize and market them. This is where businesses are really evolving, and this evolution necessitates more masters of data. Depending on your industry and their skills, your technicians may be able to be leveraged in analyzing and creating intelligence from data or in aspects such as determining what insights your customers would be willing to pay for, how those insights could or should be delivered, how best to market and sell these new offerings.

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June 25, 2019 | 4 Mins Read

The Craft of Creating Digital Value

June 25, 2019 | 4 Mins Read

The Craft of Creating Digital Value

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By Greg Lush

With each passing year of the digital age, we ironically get further away from the significance of technology. Hey, fact is that transactional systems will always be in play, however, it is with the "valuable applications” where the last mile of value exists. If you are interested in a truly digital enterprise, you must go WAY past those frankly boring, transactional systems (finance, operations, email, file storage). Are you nodding your head? In order to transition your organization to this next step of digital adoption you must think outside of the box. It is not for everyone, no shame — achieving the first step of digital adoption is quite an accomplishment. For those of you who just know work could be executed more efficiently and are frustrated that the value you have extracted from the cloud is just barely more than you had ten years ago, read on! Contextual computing is your next step of the digital adoption continuum. The first, and for many the most difficult step, is to stop thinking about digital change in the context of software applications. Nobody gives a crap, what they really care about is their employees, clients, and businesses. Start your conversations about business aspirations or challenges. Consider framing your discussions in terms of what needs to "be done,” the "pains" and "gains" expected. Once you have framed the business context, align what you can provide via products or services. Clearly articulate what you will do to offer "pain relievers" and "gain creators.” Your background will determine the level of complexity with this exercise, and technologists may struggle the most. However, you do not, and should not, do this alone. You may consider creating the first one with you and your team for a client group. Once you have a practical example, extend this exercise as a working meeting with your clients (internal or external). Contained at the bottom of this section you will see a high-level example for a business owner with the desire to improve. To get your head in the right space, repeat this five times before your session: "listen, listen, listen and get a clear understanding of why.” Do not bite on the temptation to show the client an application which would solve their problems during this session, leave your white horse back at the office. The customer does not need to be saved, instead their words need to be translated into pragmatic solutions, which in many cases will be digitally-driven. Your main purpose is to help the client. As you delve into the value proposition exercise, these tips will help you stay on track:

  • Center of the right wheel: who is the intended audience? This is absolutely your first step.

  • To be done: For me this is step 1a, although you may start at any place on the diagram. Keep your words direct and to the point. Taking too narrow of an approach will make it very hard to complete the other sections, and too high level will make it tough for readers to derive action from your statement. The example, is for a transformation services business, communicating the business case, yet a bit high level to drive action and subsequent change.

  • Pains: consider a few things; the pains section must communicate that you "get it,” leave enough latitude to adjust to the client’s needs and resonate with executive leadership. If you get too deep you will run out of solutions and narrow the path so tightly that the readers may not be able to get the big picture.

  • Gains: while this is not the end of your value proposition, I like to think about the right side as identifying the problem while the left side is all about the solution. Before moving to the left side, you must make certain that you have clearly identified the problem or opportunity. Socialize and adjust as required, the left side is simply responding to the right side…

  • Pain relievers: armed with clearly identified pains, how will you fix it? Often, I will jump to the products and services first and then complete the pain relievers and gain creators. However, this is not always the case, you will need to experiment. Regardless of which happens first, the pain relievers should address the items in the wheel to the right.

  • Gain creators: you are on the home stretch and need to connect all the pieces. Keep in mind that some will only read a few of the boxes, this is always on that list. These gain creators will be leaning into your final section, products and services.

  • Products and services: this is a hard section to complete as transformation is a movement and not products. However, you do not want to sound aloof either. Once you are complete, and you read the first and last box, does it make sense?

So often these value propositions are bypassed. The fact is, they are hard if your goal is to capture the customers true value from digital tools. For me it takes multiple iterations after reviewing it with as many and diverse individuals as possible. You must ask yourself, are you deploying applications or helping your clients become a transformed digital enterprise?

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June 24, 2019 | 2 Mins Read

Five Leadership Lessons from Marne Martin

June 24, 2019 | 2 Mins Read

Five Leadership Lessons from Marne Martin

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By Tom Paquin

Marne Martin, President of the IFS Service Management Business Unit and CEO of WorkWave, recently sat down with Thrive Global to discuss her experience, interests, and her vision for the future—not just in business. As the article says:

“If two impressive titles aren’t enough, Marne is also an award-winning competitive dressage rider and breeder (in her spare time!). She’s an avid supporter of girls and women pursuing STEM careers and uses her professional time to help IFS deliver top notch service management solutions by working with customers to uncover and solve business challenges.”

Marne’s experience spans an eclectic and diverse set of circumstances, and in her own words, she is able to explore her personal history, and how it influences her role as a dynamic presence in the world of field service. Marne’s leadership lessons in particular highlight the wisdom that she’s garnered through her years of personal and professional experience:

  1. Lead from the front, but don’t micromanage. Micromanaging is done in an effort to control, but a strong leader doesn’t need to control every detail if you are setting clear objectives for the team and hiring capable employees.
  2. Hire the best talent you can afford, and then trust and support them. Great talent is worth the investment and you must have confidence in their ability to perform.
  3. Be modest. Believe enough in your abilities that you don’t need to talk about them — let your actions speak for themselves.
  4. Don’t rest on your laurels. A good leader is always evolving and growing — you can never feel you’ve “mastered” leadership, you should always be expanding and sharpening your skills.
  5. Pay it forward. Think about the opportunities that you were given that allowed you to achieve what you have and look for ways to provide similar opportunities to others.

Beyond the professional, Marne took the opportunity to discuss what is important to her on a global scale. “I would love to play a part in improving and increasing the level of education around the world,” she says, “Especially for girls and women.”

Marne’s insights are certainly a great read, so be sure to check out the full article here.

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June 20, 2019 | 3 Mins Read

Make The Most Out of Your People With Service Thinking

June 20, 2019 | 3 Mins Read

Make The Most Out of Your People With Service Thinking

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By Hilbrand Rustema

With commoditisation and decreasing growth rates on product sales, the service business is now seen as the new area for revenue and profit growth for manufacturing companies. However, recognising the need for a new business model and actually implementing the change are two different matters. So, the question is, how can you best deliver on these expectations and turn services into an area of sustainable growth and profits? The answer is Service Thinking.

What is Service Thinking?

Service thinking is a mind-set. With this mind-set the focus is no longer on making something (a unit of output), but rather on assisting customers in their value creation processes. The value of services is not solely created by the manufacturing company, but instead it’s created through a co-constructive process together with the customer, by applying technical or business knowledge to improve whatever it is the customer is trying to achieve.

The Importance of People

People are critically important in the service business. People represent 60 to 80 percent of the operational costs of a service operation and, in the end, it’s people who have the biggest impact on the customer experience and the satisfaction level of the customer. To apply Service Thinking, it is imperative that your people become ‘trusted advisors’ to your customers. Apart from technical or business knowledge, this also requires the ability to create a relationship with the customer, built on communication, trust, flexibility and adaptability.

The Challenge that Organisations Have to Face

The big challenge for organisations is that nearly every change, improvement or transformation requires change in behaviour and attitude of your people. The first step in doing this, is making sure that each layer of your company knows what the strategic change means and understands why it is needed. The next step would be to develop the required skills, knowledge and attitude people need to fulfil their role in this new situation.

What Can The Organisation Do?

In this route for applying Service Thinking, an organisation can do the following:

  1. Create awareness and explain why Service Thinking is so important to the organisation and what it means for its employees.
  2. Help its people to change their behaviour and develop their skills, by providing them with training for acquiring new skills, as well as with tools and coaching.
  3. Improve customer insight to get a deeper understanding of real customer needs by putting yourself “in the shoes” of your customers.
  4. Design your desired customer experience instead of leaving it to chance.

Furthermore, technicians and support employees should also be guided into developing their customer skills. This means their ability to communicate, build relationships, sense customer and company needs and so on. Developing these skills and attitude is something an organisation can begin to do internally. However, it is often more effective to kick start such a program by using an external more experienced facilitator who can bring real-life examples and case studies to accelerate staff engagement. Furthermore, changing the mind-set of sales people is also very important. Selling products is definitely not like selling services. The intangible nature of services requires that their value is articulated and linked to customer challenges and customer outcomes. What is required is to develop a new sales approach focussed on services, which includes training sales people, develop customer insight, provide support in developing sales tools to increase sales effectiveness, and define the sales strategy and performance management. All in all, it is clear that there is an enormous potential in services and companies which choose to take the path of unlocking this potential have to start applying service thinking. A prerequisite for this is a change in people’s behaviour and mind-set such that your company becomes truly customer centric. Read more about how Noventum can help you unlock your full potential with regards to Service Thinking, as well as People Development.

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June 18, 2019 | 3 Mins Read

LiveWorx19 Recap: Words of Wisdom for the Digital Transformation Journey

June 18, 2019 | 3 Mins Read

LiveWorx19 Recap: Words of Wisdom for the Digital Transformation Journey

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By Sarah Nicastro, Creator, Future of Field Service

I wrote an article on day one of PTC’s LiveWorx19 event last week that discussed what I heard during the keynote: an acknowledgement of the complexity of the digital transformation journey. I find it refreshing when executives within the technology community seem to genuinely appreciate how significant of a shift is really taking place in service and own the fact that the transformation isn’t just about the technology, but about really re-engineering the business from delivering service to delivering outcomes. As Gentry Pate, Global Supply Chain Director at Dell said in his session on Monday, “To accomplish our objectives, we really had to change our DNA.”

Technology is, however, an undeniable aspect of staying relevant, remaining competitive, and acclimating to this new way of doing business. At LiveWorx19, it was said time and time again that Digital Transformation is not only critically important, but an absolute necessity. Throughout the remaining days of the event, I had the pleasure to attend several exciting keynotes and informative sessions and wanted to take an opportunity here to share how some of the attendees are tackling the challenge of Digital Transformation head on. I spoke with Aly Pinder Jr, Program Director – Service Innovation & Connected Products at IDC Manufacturing Insights, who shared a number of important points in his session. “We can’t be good digitally by buying siloed technology to solve point-specific problems – there has to be a cohesive strategy,” he says. “Further, education needs to happen across the business on the move to outcomes-based service, not only within the service function. You will accomplish more if you create a strategy that service leaders advocate with all functions of the business.” I met with Aly after he delivered his insights and asked him his thoughts on what is the #1 barrier to Digital Transformation success. “Digital Transformation is both a complex, complicated journey and simple things we can do today,” he says. “Companies get hung up in trying to sort out the long-term, 10-year journey and fail to focus on the small wins that can be achieved now. Ultimately, success is a mixture of both – but you can’t let the overwhelm of the entire journey stop you from taking the first step.”

Digital Transformation is Both a Technological and Cultural Evolution

Larry Blue, CEO of Bell and Howell, echoed this sentiment when we chatted about his company’s use of ThingWorx IoT and overall digital transformation. “To succeed in digital transformation, you first need to understand what your true goal is – know what you’re working toward. Then I suggest starting with a small team and an initial project – don’t try to bite the whole apple all at once. Success breeds success, so if you can get an initial win you will be in a position to build from there,” he says. “Also keep in mind that this is both a technological and a cultural shift. It needs executive attention. There’s a saying, ‘People respect what you inspect.’ If you take the time to be personally involved, people take note of its importance.” Consider your most practical path to Digital Transformation. When Dr. Maria Wilson, Global Leader Data Driven Advantage at Howden, joined Jim Heppelmann, CEO of PTC, on stage for his keynote, she said “We chose to stay focused on our core strengths, and built a strong system of partners for digital enablement. We’re using those digital tools, including IoT and AR, to deliver a better customer experience than ever before.” So while Digital Transformation is certainly multi-layered and complex, LiveWorx19 was ripe with examples of companies making significant, impactful progress. As Peter Diamandis, MD, Founder, Executive Chairman, XPRIZE Foundation and Executive Founder and Director, Singularity University, said during his keynote, “When you’re at the top of your game and sitting pretty, it is really tempting to stay there. But you must question – not defend – your position.”

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June 13, 2019 | 4 Mins Read

Five Things You Might Not Have Known About Decisions Behind IT Outsourcing

June 13, 2019 | 4 Mins Read

Five Things You Might Not Have Known About Decisions Behind IT Outsourcing

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By Dr. Marlene R. Kolodziej

Executive decision-makers cannot always anticipate and fully understand the implications of information technology outsourcing (ITO) decisions for the long-term processes, capabilities, and performance of their organization, especially when considering ITO for cloud-based services.  My doctoral research explored the decision-making process, and particularly the criteria used by executive decision-makers, for identifying and selecting organizational competencies when engaging in Information Technology Outsourcing (ITO) using cloud-based services. Findings indicate that executive decision-makers are unable to articulate decision-making criteria and to define processes used for identifying and selecting organizational competencies to consider as part of ITO engagements for cloud-based services.

While the study participants were asked a number of questions, the desire was to answer the question “How do executive decision-makers describe the process followed for the identification and selection of organizational competencies to consider as part of ITO engagements?”.  Of course, there were additional questions, such as a) “How do executive decision-makers describe the criteria used for selecting organizational competencies to consider as part of ITO engagements?”; b) “What methods do executive decision-makers use to anticipate the long-term impact of their ITO decisions on organizational processes, capabilities, and performance?”; and c) “How do observations on anticipated impact differ from realized impact on organizational processes, capabilities, and performance from ITO decisions?”. The good news is those questions helped identify these five things regarding executive decision-making when outsourcing to the cloud.

#1: Executive decision-makers identify competencies primarily using intuition. It’s not new news that executive decision-makers select organizational competencies to target for ITO for cloud-based services based on the need to fulfill application, security, regulatory, or compliance requirements; to fill a gap; and/or to increase capabilities not found within their organizations.  What is new is the research found executive decision-makers identified organizational competencies to outsource to the cloud through a process of intuitively understanding the gap or criteria in their applications, security, regulatory, or general requirements. These decision-makers also made sure those competencies were not a core part of their business.

#2: Executive decision-makers thought they used a formal decision-making processes (but not really). While executive decision-makers used their intuition to select organizational competencies to target for ITO for cloud-based services, they also believed a standard decision model was used. Executive decision-makers assumed they used a formal multi-criteria decision-model (MCDM) as part of their decision-making process, when in actuality, their decision was intuitive but happened to align with a formal MCDM.

#3: Executive decision-makers rely on external expertise (though they really used their intuition). While now know executive decision-makers intuitively identify competencies to outsource to the cloud prior to initiating the outsourcing process, but the researched also showed  executive decision-makers engaged in a formal request for proposal process with external vendors. Although some participants used the expertise of external vendors to identify competencies to reduce cost, the identification of organizational competencies is much more of an organic process. Executive decision-makers decided to retain core competencies such as customer-facing applications and business relationship management activities while moving noncore competencies such as internal corporate systems, architecture design, cloud operations, simple sales management, and support to an outsourcing provider.

#4: Executive decision-makers build in contingencies (and are flexible). Executive decision-makers retain some onsite infrastructure for business continuity but also construct their ITO using cloud-based services with the flexibility to move data to another cloud-based service provider or back in house. Executive decision-makers also avoided outsourcing core competencies and are willing to insource those previously outsourced competencies should those competencies change to core competencies and become strategic. Essentially, executive decision-makers identified their core competencies prior to engaging in outsourcing to the cloud; understood their internal strengths, what made them unique, and what competencies were missing; and used the cloud to strengthen internal competencies or add new competencies to remain competitive, and revisited those competencies they outsourced to make sure those competencies were where they should be.

#5: Executive decision-makers built muscle memory (practice, practice, practice). Executive decision-makers experienced negative outcomes when engaging in their first cloud-based outsourcing, but subsequent cloud-based outsourcing engagement were perceived as having more successful outcomes. The an initial outsourcing engagement requires creating new frameworks and processes, whereas subsequent outsourcing engagements rely on the previous structure and lessons learned from prior engagements, thereby reducing the negative impact. Essentially, the more outsourcing you complete, the more successful each engagement will be. Previous research suggests the decision to outsource is an organizational strategy considered by many organizational leaders a requirement for staying competitive in the marketplace, given its potential for reducing costs, increasing profits, or developing competitive advantage. Executive decision-makers agreed that decision-making regarding ITO for cloud-based services commonly ignores the effort required to integrate applications into the infrastructure and underestimates the people, effort, and cost implied. Essentially, executive decision-makers are intuitive in their decision-making for ITO using cloud-based services, do not purposefully use a formal MCDM, rely on external expertise when needed, ensure they have contingency plans and are flexible, and are more successful as they outsource more.

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June 10, 2019 | 5 Mins Read

7 Tried-and-True Tips for Successful Merged Reality Adoption

June 10, 2019 | 5 Mins Read

7 Tried-and-True Tips for Successful Merged Reality Adoption

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By Evans A. Manolis

This much is certain: Merged Reality has become an increasingly important part of the service delivery process for many companies over the past two years. Remote Assistance has moved from a “cool to have” technology to a “must have” for service organizations that are looking to increase productivity and drive operational efficiencies.

Service organizations who have invested in Merged Reality technology are able to see a great impact on measurable service KPIs. Those include reduction of truck rolls/on-site service visits, increased first- time fix rates, decreased call handle times, improved remote resolution rates, maximized product uptime and perhaps most importantly, a positive impact on the customer experience. While service leaders understand the value that Merged Reality and Remote Assistance bring to both their customers and employees, they are faced with a challenge. How do they drive adoption and use of this technology among their front-line service teams? Over the past 24 months, I have worked with over 50 service organizations to help them address this challenge. What has become clear to me is that Merged Reality is no longer a technology play. Rather, Merged Reality is much more about change management and behavior change than it is about technology. It requires organizations to change the mindsets of service professionals. To change service processes. It means getting out of a comfort zone and committing to deliver service in a new way. And the reality is that none of these changes are easy. In order to help service leaders who are in the process of deploying a Merged Reality solution or for those who are struggling to successfully get one off the ground, I wanted to share 7 Best Practices For Merged Reality Adoption that I’ve seen proven to drive change and adoption.

  1. Build A Compelling Business Case. Start here. Make sure everyone knows what you are hoping to accomplish through the use of a Merged Reality solution and why you are launching this initiative now. Has there been a compelling event that pushed this initiative to the forefront? Be clear as to the reason this initiative is being put in place. Focus on the what and why of the program.
  2. Put Leadership in Place. All successful programs have three types of leaders. First there is the executive sponsor who has the vision for the program. Then you have the project leader, who has responsibility for the day to day operation of the program. This person is vitally important and without their full attention to the program, it is destined to fail, or at the very least, not yield the results you were hoping to accomplish. And finally, there are the change champions who are influential service employees who help drive the program to their co-workers.
  3. What’s in It For Me? This requires some thinking. Put yourself in the shoes of the service technicians who you want to use this technology. Why should they care about adopting and using a Merged Reality tool? Chances are they are very comfortable servicing their customers the way they have for the past five, 10, 15 or more years. What is in it for them personally? Forget about what is in it for the company or for you as the service leader. They generally don’t care about that but they do care about themselves. How will this solution benefit and be of value to them personally? Will it eliminate a plane ride and trip to service a customer in another country? Will it allow them to be more efficient in serving their customers thus allowing them to have more time with their family and friends? Will it make their job easier and less stressful? Will they be compensated for successfully using the technology? Communicate your message from their perspective and not yours. Get in their shoes!
  4. Start Small to Get Big. When service leaders see Merged Reality they think big picture, which over time is fine. But initially, focus on one or two high value, high visibility, critical use cases to get your program started. Where in your service organization can you use this technology and see the fastest time to value? Is there a specific challenge or problem you can initially focus on? Start there and then grow as the program takes root and becomes successful.
  5. Look for Short Term Wins. Gathering early program success stories is directly tied to the future success of the program. Be sure to communicate early successes to all those who are expected to use the solution. This is especially important for those service techs who may have used the solution once or twice but aren’t sure of the value of it. The “hedgers or fence-sitters.” Once they see that others on their team are having success, they will be more inclined to use the technology again.
  6. Analyze and Make Changes. Talk to your employees who have adopted and are using the technology (adopters) as well as those who are not (resistors). Look for root causes of both adoption and resistance. Understand why each has chosen their position. Let them know that their voices are being heard and you genuinely care about them. Don’t be afraid to make changes based on the feedback you gather from your employees. Your program is not cast in concrete.
  7. Publicize and Market. Once your program has started to bear fruit, make sure that all organizations within your company are aware of your Merged Reality initiative. Get it out of the service silo and communicate its success and impact to both internal and external customers. Make sure sales is aware of the program, as they can use it to win deals by differentiating you from your competitors. Conduct internal webinars to ensure that all employees are aware of the program.

As mentioned before, change is not easy — but is achievable. Keep working hard on it. It does not happen overnight, but the results you will get from your program are well worth the effort you will put in it to make it successful.

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