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December 2, 2019 | 4 Mins Read

5 Practical Ways to Become a More Innovative Leader

December 2, 2019 | 4 Mins Read

5 Practical Ways to Become a More Innovative Leader

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By Sarah Nicastro, Creator, Future of Field Service

I read this article a few days ago, In a Distracted World, Solitude Is a Competitive Advantage. It was written in 2017, which had me thinking about how much more distracted our world has become even in two years. I’m personally a big fan of solitude, so the words here resonated with me – I’m just someone that needs space. Regardless of whether or not solitude is something you naturally need on a personal level, I think that in today’s always-on world, where pressure to meet expectations and accomplish goals is relentless, solitude is imperative to maintain strong leadership.

I had a chat this morning with Dave Willetts, Commercial Director and UK Head of Innovation at Baxi Heating, and was curious to ask him his thoughts on this concept and opinion on what it takes to be a leader of innovation (figured given his title, he’d have some thoughts!). As he replied, he essentially wrote this article for me – so thank you, Dave! Here are five practical ways to be a more innovative leader.

1: Adjust Your Mindset

Dave first pointed out that to be a better leader of innovation, you have to embrace the right mindset and get away from feeling the need to put out the day-to-day fires of the business. “My job as a leader is not a caretaker of our current value, but a builder of our future – and I have to maintain that mindset,” says Dave. “Of course I’m here to manage my team, but my job really is to be creating a vision for our future, a strategy to help us achieve that vision, and develop the resource and KPIs to carry out that strategy. That’s innovation, and as a leader it is my responsibility.”

2: Box Yourself In

Without being unreasonable, of course, Dave’s next piece of advice is to create some pressure for yourself to force innovation – in other words, box yourself in. “Having a vision that stretches you helps fuel an innovative culture,” says Dave. “Committing yourself to this vision gives you natural motivation and accountability to lead innovation in order to accomplish your objectives.” In an effort to support a culture of innovation at Baxi, one of the changes Dave has introduced is the idea of running experiments rather than projects. Reframing around experiments gives the connotation of learning versus perceived failing and allows the team to react quickly to what’s working (and what’s not).

3: Change Your Scenery

Going back to the article I linked above and the idea of solitude, not only do you need periods of whitespace to think but oftentimes a change of scenery during that whitespace can be beneficial. Dave agrees, and says that he encourages himself and his team to move. “It can be helpful to simply get up and get out of your chair, and even more so to get out of the building,” he says. “Go spend some time with customers, or with other companies – immerse yourself in the environment. Learning and networking is so important to innovation.” Oftentimes, ideas can be sparked when you take some space that would never surface while sitting still. For some leaders this practice may come naturally; for others, it will be important to schedule time in to take these breaks to ensure you actually do.

4: Build Your Network

As we know at Future of Field Service, there’s immense value in learning from your peers. Perhaps no one has things all figured out, but everyone has a slightly different take and angle and oftentimes just taking the time to hear someone else’s viewpoints and methods of attack can spark the tiniest light in you that grows into the flame of innovation. This is why networking with peers in and beyond your industry is so important, whether that’s at industry events, through LinkedIn, or otherwise. “Build as big of an external network as you can, and learn from that network,” says Dave. “But be sure that as you’re learning, you are also being conscious of giving back – it’s important to add value back into your network as well.”

5: Consider Your “Don’ts” As Well As Your “Do’s”

Going back to Dave’s first point, it’s important for you as a leader to start thinking about what your responsibilities are – and what they aren’t. As the article points out, it can be a good idea to use some solitude to reflect on what you’re spending your time on that is not proving worthwhile and begin making a “don’t” list. This list can include things that simply aren’t serving your business or your team and no longer need to be done, or it can include tasks that do need to be accomplished but should be delegated to someone on your team in order to free up your time. “Innovation is most certainly about creating new value, but it’s just as much about getting rid of what’s not working,” says Dave.

November 25, 2019 | 3 Mins Read

What Does Optimization Even Mean Any More?

November 25, 2019 | 3 Mins Read

What Does Optimization Even Mean Any More?

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By Tom Paquin

I don’t think there’s a less controversial position than admitting that you’re “pro-optimization”. Everyone wants to be optimized, but the word “optimization” has become so muddled by tech-speak over the last two decades that it now barely carries any meaning at all. “Optimization” is now some sort of vague efficiency improvement that is as shallow a statement as saying that you’ve “streamlined operations,” or “maximized efficiency”.

The term “optimization” has become a big bucket to throw empty promises into, and organizations selling you tools for service have taken advantage of that by tagging whatever they want with the phrase. If you want to see how and flagrant this is, just do a Google search for “field service optimization” and look at the vague, meaningless improvement promises that come along with the snake oil being peddled.

It’s a shame, really, because optimization should mean something, especially in service. At the Future of Field service, we believe service optimization should, by this point, be the baseline of successful service delivery. But in order for optimization to do anything, it has to actually mean something.

So let’s make optimization real.

Broad strokes here—we can break field service lifecycle into a few big buckets: Asset management, planning, scheduling, routing, delivery, parts management, invoicing, and customer retention. If we do that, it’s pretty easy to begin to apply “optimization” in a way that’s far less vague.

A good parts optimization system would, for instance, give inventory visibility across every possible channel, and offer some predictions into what parts are needed for a job, either though IoT diagnostics, or information capture from the customer (preferably both).

As you can see, that’s a lot more than a piece of software.

And that’s the real trick, here. Software alone can’t optimize your service practice. In the above example, vendors have to work with OEMs, who may have to work with dealers, who may have to work with contractors, who again may have to work with OEMs, in order to even begin to think about a piece of software. That’s not an accomplishable goal. That’s an ongoing process.

The “optimization” example that gets bandied around with the most excitement, but sometimes with the least substance, is routing optimization. What’s so infuriating about this is that routing doesn’t happen in a vacuum. You can’t just throw an optimization engine at your technicians, have it auto-route the day’s work orders, and actually expect anything to be improved.

Just like the above example, you’re dealing with a complex network of autonomous systems that need to be catalogued, categorized, and ranked by importance. This is why the best systems don’t just do routing; They making it a component of planning and scheduling, taking into consideration workers’ expertise, inventory, territory, as well as service history. For an accurate, repeatable, and verifiably improved workflow, this approach is a necessity.A holistic view means that a real optimization system can give you an actual, tangible, numerical business improvement number to stand by. This could be a decrease in overall time from ticket to invoice, increased first visit resolutions, or an increase in tickets closed per day. A truly optimized system will tell you what it did for you, and what it means to you.

Be wary the next time you hear someone talking about optimizing service in the abstract; There is, far too often, very little substance behind those words. But if you think about each area of your business, you can see how smart management can come together with the right technology tools to make optimization mean something again.

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November 21, 2019 | 4 Mins Read

Sorting Through The Digital Noise

November 21, 2019 | 4 Mins Read

Sorting Through The Digital Noise

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By Greg Lush

As I was entering the workplace in 1981, computers were not so popular for a guy in the commercial/industrial service business. Memory, and I am talking about hard-drive space, was nothing like it is today. Remember that unconfirmed quote from Bill Gates in 1981, when the IBM personal computer was introduced? Mr. Gates supposedly said that 640Kb of memory "ought to be enough for anybody.” Heck, Apple just a few years later released a cute little all in one computer (1984) named Macintosh 128k, yes signifying the amount of hard-drive space. Now, it is not uncommon to see a handheld phone with 64Gb of memory, a jump from 128,000 bytes to 67,108,864 bytes. Interestingly, a solid-state drive today, at 64Gb is a fraction of the cost of a spinning hard-drive in 1981 with only 128Kb. The point is, memory is CHEAP; forget about your past practices and assumptions regarding what to save and what to get rid of, save it all! Your biggest challenge will be to sort through the noise; a digital exhaust of sorts.

Start by establishing what you will do with the data gathered. No different than other business decisions, you need to align your input, the collection of data, with your desired output, commonly visibility and/or action. Please do not be surprised if after this exercise you discover that over 90% of your information does not translate to an action, or any value, today. To illustrate let's take an air conditioning (AC) unit, just like the one that you have at your home or office. Not too long ago I was in a meeting with an AC unit manufacturer bragging about all of the data that they could obtain, over 120 different points of information. At first pass you may think, wow, that is impressive. Yet, as you peel back the business scenarios to keep the unit running trouble-free for as long as possible, a service person would tell you that only a handful of data points are required. Where does that leave us? Acquiring that information does have a connected cost, regardless of how commoditized the hard-drive storage market has become. We need to ask, transfer, process, store, and use the data in a meaningful and relevant manner. So, now you’re confused — gather the data or don't gather the data?

Yes, is the correct response to both questions. A flood of information will hit your environments and I encourage you to save each last byte. However, during the ingestion process tease out the data needed for the handful of relevant data points. Allow the remaining data to travel directly to a data lake, or some other inexpensive mass data storage tool. One of the many features of a data lake is we can store a TON of data for hardly any cost (seen in organizing, tagging and storage space). In order to perform this "in flight" routing of data you will need a system sophisticated enough to perform analysis while the data is in motion. The top tier software companies will all have some degree of functionality in this arena, Microsoft refers to this process as Stream Analytics. It is hard to verbalize the significance of this next step. Bear in mind that all your AI algorithms feeding machine learning and other tools will use the data set that you deliver. Sure, many AI tools can take the whole lot, yet getting the most efficient package creates tremendous processing and financial benefits. Cloud platforms charge based on several variables, including yet not limited to; processor horsepower, memory (hard), memory (computer). Design for the objective and outcome. When you follow this path, you will also put the business need ahead of the technology requirement, which leads to greater adoption and overall user satisfaction.

Now, for one of the most misunderstood topics — predictive analytics and tools. It all starts with listening and understanding your client’s business. Once you understand the customer's objective(s), you need to combine that with your own business objectives. Is the reason that you are using predictive modeling is to give you an edge in the market? If that is the case than the models that you choose should be single models, possibly only looking at one element and having the right to claim, rightly so, that you are predicting an outcome. However, if you are trying to turn around or mitigate risk within your organization, you may need to look at multiple pieces of equipment and their predictive models to see how, when combined with one another, create different perspectives which may alter your course of action. These are very different approaches, they all need predictive models and data, certainly investment, but their level of sophistication is vastly different. Both are valuable, the bottom line will be how well aligned the model is to your business conditions and environment.

Learning models, and the algorithms contained within, can drive incredible value to your business. It is key that you understand how the outputs of these data science-based objects influence action within your current operating environments. Keep in mind that IIoT, data sciences, and even workforce sciences, are as much about the tools as they are about the cultural and market-based changes required to truly evolve your operation.

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November 18, 2019 | 4 Mins Read

Preparing to Develop the Field Technicians of the Future

November 18, 2019 | 4 Mins Read

Preparing to Develop the Field Technicians of the Future

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By Sarah Nicastro, Creator, Future of Field Service

I was asked to be interviewed recently on a podcast titled Preparing Technicians for the Future of Work, which is a podcast intended for those responsible for educating and preparing the next wave of field technicians. It was a lot of fun to participate, and when the episode goes live I will share on social as well as Future of Field Service. In the meantime, I wanted to share a snippet of a question asked of me on what I see happening from a technician standpoint over the next three to five years. Check it out below and I’d love for you to share your thoughts with me! You can email me at sarah@futureoffieldserviceref.ifs.com.

Q: I want you to take out your crystal ball. What are you seeing as the main drivers or challenges in the upcoming years? Think "three to five years out." I mean, are Field Service Technicians going away and being replaced by apps? Or what do you see out there? Say three to five years. What do you think?

A few things come to mind. The first is, I think we will continue to see a real emphasis on the customer experience, customer centricity, and really expanding on that. And I say that because I think that we're at a point in this industry where companies have recognized — and even embraced — the fact that they HAVE to become truly customer-centric to succeed. But I think we're still at a point where some companies kind of know the steps they want to take to do that, and others are still wondering exactly what that looks like for them. So, I think that's going to be a continued focus.

We talk a lot about servitization or the outcomes-based economy. And that ties back to looking at the customer journey and really understanding, from a field technician perspective: when you send someone in with some sort of technical skill to fix a point-specific problem, that used to be acceptable. But the reality is that needs to be tied in with the whole customer journey. And there are other aspects of that journey that that technician can address. And so, shifting from delivering a service, a break-fix type service, to delivering more of an experience and more outcomes is something that I think companies will continue to embrace.

Along with that, we see companies, service organizations, really looking at how to take that customer journey and find ways to leverage it to create additional revenue streams. So, that, maybe—I could use for example Dish Network. Dish Network historically has been a company that provides, and installs, and services satellite TV equipment. And they've branched out now to where their technicians are also installing equipment from Samsung and different companies. So, they're really taking their traditional service model and sort of "turning it on its head." And with that comes the need for a significant amount of flexibility among the workforce. Because that workforce is going to be asked to do different tasks than they have before. And wear more hats than they had before. And so that's something that I think will continue.

Another is, I think, we will certainly see increased use of AI and augmented reality. Augmented reality, I think, has some significant value propositions for service organizations in a couple areas. One, related specifically to the aging workforce. So, as you have workers that are nearing retirement age, that maybe don't want to be out in the field day to day to day servicing equipment, or what have you. Using augmented reality, you can have an incredibly knowledgeable worker sitting in the back office that may use AR to interact with three, four, five newer technicians in the field, and really provide that hands-on training and support without actually being with them. And I think that that's hugely valuable for companies. Particularly when you can capture those interactions in most augmented reality solutions and sort of build a knowledge library from them. So, at the same time as you're training newer technicians, you're also capturing the tribal knowledge of some of those older workers.

I certainly don't see technicians being replaced by AI, or robots, or an app, or anything else. But I do think, as I alluded to earlier, we will continue to see the automation of non-value-added tasks. So, some of the things that can be automated, will. And that will free up bandwidth from those technicians to focus more on some of the aspects of the job that are going to become more important.

So, as I said, the higher technology used, the higher touch things need to be with the customer—to sort of balance that out. And so, I see AI as a way to give the technicians time back to do more value-added service tasks.

And finally, also related to those tasks becoming automated, I think as that happens, we will also see some re-skilling and up-skilling of the technician workforce. And that could be in a lot of different ways. It could be in more consultative positions, as I mentioned earlier. It could be training. It could be related to making use of that data. It could be related to product development. Or really just back to how the role will evolve, and just focusing more on the human experience, and being more people centric. But I think that there is no denying the fact that the role is going to evolve as we head into the next three to five years. And I think it'll be very, very interesting to see exactly what that looks like.

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November 15, 2019 | 3 Mins Read

Pricing Your Service Contracts: Three Tips for Greater Accuracy

November 15, 2019 | 3 Mins Read

Pricing Your Service Contracts: Three Tips for Greater Accuracy

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By Tom Paquin

Here at The Future of Field Service, we spend a great deal of time discussing the ways that service organizations are reinventing their businesses to be more competitive. Making the decision to fuse service into a product is a great first step, but a lot of organizations discover that their actual execution is unrealistic, poorly-informed, or a bald imitation of their competitors. If you're looking to put your best foot forward, you can do better than that.

A particular area in which we often see stumbling blocks in execution is specifically around service pricing. How do you price your service contracts? As more organizations tie service contracts to outcomes like uptime and output and move away from a warranty model, the importance of accurate and competitive pricing increases dramatically, and the inputs that an affect that pricing do, too. Pricing analysts have been around almost as long as the concept of money itself, and service is just another product category to be tabulated, valued, and commoditized. Nevertheless, the many triggers of service, especially of an outcomes-based model, make this a task with not only a lot of inputs, but the possibility that your actual sources of data might not be consistent or accurate. With that in mind, here are some tips for how to approach informed service pricing.

Audit Your Data Sources

It's no secret that data analysis is only really as valuable as the data that you're pulling from your various sources, but it bears repeating. If your source of truth is incomplete, or inconsistent, or (gasp!) somebody is putting their foot on the scale, it's impossible to get a picture of the total cost of service. The typical data sources utilized for pricing evaluation center around service execution, asset performance, inventory management, and back office utilization. If any one of these things is outputting inaccurate information, then it needs to be remedied with expedience. Moreover, are all of these systems speaking a commonly-integrated language, or are data scientists scrambling to reconcile a common value the define all of these different areas? The importance of a single source of service truth is growing, and new tools will provide greater accuracy from a common language.

Don't Fear Predictive

When your data ducks are in a row, you can start thinking about the technologies that you're employing to price properly. Some organizations are proactively triggering service, or using planning and scheduling optimization to get technicians dispatched most effectively, but that same data can give you a window into the expected cost of a service contract. Historical data from these sources alongside perpetual monitoring of assets and costs of service, when combined with predictive algorithms can now provide a fairly accurate expected lifetime cost of service. Again, though, this is really only a useful as your data sources.

Watch Your Competitors, to a Point

This one's pretty simple. Your competitors’ shifting product and pricing stagey around service can provide a useful line in the sand by which you set your own pricing, but being a follower is not a winning strategy. Competitive differentiation is won through, you know, differentiation. Service done efficiently is now the baseline for success, so businesses looking to better their competition need to think about their service products differently. Don't be afraid to take a divergent stand from your competition. As long as you have the tools to price properly, the visibility of your whole workflow, and the means to audit effectively, you have the tools to become a price leader in a whole new product category.

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November 11, 2019 | 3 Mins Read

How Is Your Company’s Structure Undermining Your CX Efforts?

November 11, 2019 | 3 Mins Read

How Is Your Company’s Structure Undermining Your CX Efforts?

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By Sarah Nicastro, Creator, Future of Field Service

On this last week's podcast we be featured an interview with Suman Sarkar, an international consultant and author of new book Customer-Driven Disruption. We had a great conversation and you’ll want to check back here or on your favorite podcast platform to listen to the full episode (New episodes every Wednesday!). That said, one of the points that stood out most to me from Suman’s interview is what he had to say about how organizational silos prevent companies from achieving their CX objectives.

This struck a chord for me because I think that the vast majority of field service organizations today acknowledge and even embrace the need to become truly customer centric. But as Suman pointed out, “knowing and doing are two different things.” Sure, knowing and not doing can be an act of defiance. But more often than not, I think it is a matter of knowing and not knowing how to do. For service organizations, the change necessary to become truly customer centric is in many cases a matter of overhauling some deeply-rooted processes and practices.

One of the biggest changes that needs to occur, according to Suman, is the breakdown of organizational silos. “A siloed structure doesn’t actually enable employees to meet customer needs – it makes them loyal to their bosses rather than being loyal to the customers,” says Suman. “Think about it – as a customer, I don’t care if you’re from IT, service, sales, marketing, the back-office. The silo in which you operate is irrelevant to me and what I want my experience to be.” He brings about a good point in that when you have organizational silos all responsible for their individual objectives, it makes a cohesive – let alone exceptional – customer experience nearly impossible to deliver.

In order to change your company’s structure to enable a more customer-centric approach, Suman suggests four steps:

  1. Change how your employees are incentivized and start at the top. “Seventy to 80% of CEO’s salaries come from stock and stock options,” says Suman. “As a result, CEOs care more about what they are delivering to their shareholders than what they are delivering to their customers. For true change to take place, it has to start here.” Suman believes all employee compensation needs to be tied to customer-focused metrics to create alignment.
  2. Rethink how your teams are structured. Rather than operational silos, Suman urges you to consider creating customer-focused teams so that the focus shifts from the internal goals and objectives outward.
  3. Consider what kind of culture supports a customer focus. “A good company culture doesn’t necessarily equal a customer-centric company culture,” says Suman. He suggests staying focused on delivering speedier and richer results to customers and always looking for ways to create a better experience. For him, examples of companies getting this right include Disney, Southwest, Aldi, and Amazon.
  4. Determine how to hire good people and orient them toward your customers. Your customer experience vision cannot come to life without having the talent to execute on it. Figuring out how to reshape recruiting and hiring practices to bring talent on board that is capable of customer centricity is important, as well as providing thorough training.

Being at the “knowing” phase of your customer centricity journey is a good start, but understand that when it comes to the “doing,” there is some structural, foundational change that needs to occur in most cases for the effort to have the impact you desire.

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November 7, 2019 | 4 Mins Read

The Art of Storytelling to Gain Digital Transformation Buy-In

November 7, 2019 | 4 Mins Read

The Art of Storytelling to Gain Digital Transformation Buy-In

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By Greg Lush

There are those things in your work life that you just never forget. Consider yourself fortunate if you have a few to reflect on over the years. One for me is the first time I tried to explain what was in my head to a data scientist. Let's break down that sentence a bit, first "what was in my head;” not an easy process, regardless of the topic. My married readers have firsthand experience in translating their thoughts or ideas to another human being. "Talking to a data scientist" is in of itself not too much of a challenge, instead I think about it more like speaking with any person in a field of specific expertise. Depending upon the way the question or statement is formed, your message may or may not be communicated effectively. So, you are in a tough spot. How can you take those brilliant ideas which will revolutionize your business, nay, your entire industry, and transport them to the world of artificial intelligence? Not a single week goes by that you do not run across an advertisement, colleague, or manager asking you "why aren't we using AI?” Of course, that is a very vague question, yet one that remains top of mind. Wouldn't it be great if I could just figure out a way to translate my ideas into a workable output?

You might be picking up on the fact that I like to tell stories. I have found that telling a story helps add dimension when required and makes it interesting. A few years ago, I was searching for a tool to help with my story translation needs and ran across a wonderful book. Design A Better Business by Patrick van der Pijl, Justin Lokitz, and Lisa Kay Solomon is a fantastic approach to helping businesses with their challenges written in a creative format; you must check it out. Included with the book is access to a very handy website packed with templates. Trust me, the templates are fantastic. Find the "storytelling" template and read the tips on its use – it is very helpful. The example that I am going to provide will be in context of an Industrial Internet of Things (IIoT) design that we were translating to a handful of data scientists and internal supporters. Our project, which was narrowly scoped, had a total of eight "stories." I started with the business need template to collaborate with the organization and nail down what we were trying to accomplish. Once we came to consensus, I created an outline of which stories would be relevant and support one another. It is critical that you can thread a string through all of the stories. For me, it was tough to get started, even with the tools provided by Design A Better Business. Hopefully this example, based on the IIoT project, will get you kick started:

Story: Unmanned and Unitary (highest level story)

  • Subject: Clients with unmanned buildings, a significant density of unitary systems and a desire to transition to condition-based service and maintenance
  • Goal: Maximize client comfort and asset life by consuming and correlating all factors which holistically affect the building as a constantly changing environment.
  • Audience: Our portfolio clients (with >1 building) and their customers and our internal and external workforces
  • Before: Unmanned and unitary system-based buildings often go together. While larger properties have property managers and central plants; a significant majority of unmanned buildings (94% of all buildings per a survey conducted in 2014) are less sophisticated and in many cases may only have localized elementary control
  • Set the Scene: The simple fact is the barrier to entry to work on unitary systems is quite low. In the small to medium business space it is not unusual to see inexperienced, untrained, and one-to-two-man companies. Without substantial forms of differentiation, we will continue to face margin challenges in a sliding and commoditized labor market
  • What's the Point: To go head-to-head with our competitors, simply turning wrenches is an exercise in futility. Instead our best approach would be to leverage our size and ability to invest in science-based approaches to field service
  • Conclusion: Our ability to invent, test, and tune designs across our broad customer base is unmatched in our service areas. Admittedly our concepts could be perceived as "cutting edge" and a bit risky. However, our efforts today will position us favorably for years to come with respect to margins and available labor
  • After: A digital convergence of data spanning site logistics, PM contract configuration, site automation, financial performance, asset probability of failure, client relationships, influencers affecting the building has a solution, and worker skills. These variables leveraged through artificial intelligence algorithms designed to enhance customer value and increase productivity. Our investments in IOT and science-based approaches will change our industry

Years ago, a CFO I worked with told me, "Greg, the odds of me scrolling down to read content, is very low.” He continued, "Anyone can get their point across in 100 words, yet only the skilled communicators can explain themselves in 10 words.” The folks at Design A Better Business must have also worked with our CFO; you will see that all of their story telling templates are deliberately designed with small fields for your words. It takes me days to write these stories, I take a first pass often packed with too many words. I take a break, come back and whittle down the words. Although not evidenced by this book, I typically shave off double-digit percentages of words. This is not easy; however, you will find that less is more for you, your colleagues, and AI partners.

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November 4, 2019 | 3 Mins Read

3 Myths Holding You Back from the Huge Potential of AI

November 4, 2019 | 3 Mins Read

3 Myths Holding You Back from the Huge Potential of AI

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By Sarah Nicastro, Creator, Future of Field Service

As we prepare for all the 2020 predictions coming, I will bet you $50 that AI will appear on 90% of the lists (including mine). There is no denying that AI holds incredible potential for your business going forward, but in talking with service leaders I do hear some common myths that keep companies from realizing that potential as quickly as they could.

Myth #1: AI is Futuristic

I believe this myth occurs because AI is a broad term. Sometimes what comes to mind are more futuristic, sci-fi like applications which causes people to think – eh, maybe someday. The reality is, AI is here NOW and already providing immense business value for companies today. A couple of examples are: advanced scheduling and dispatching tools, chatbots for customer service to help customers resolve issues for themselves and to empower support staff to resolve more quickly, and knowledge management – using AI and chatbots to help technicians easily find relevant information. In fact, when you consider these tactical examples of AI you may realize that it is already hard at work in your business. These examples are just the beginning, however. More advanced AI is on the horizon, so even those futuristic visions are not far off. Putting off the evaluation and adoption of AI because you think it’s something that can wait is a big mistake!

Myth #2: Machines Will Replace Humans

AI is a technology that can cause a lot of anxiety and fear among employees, and a lot of that anxiety comes from the thought that advanced AI will ultimately put humans out of work. The reality is, AI may automate some areas of work to the point that it does eliminate labor needs – but those labor needs will be redistributed elsewhere. This is because as the use of AI increases, the need for human experience in the appropriate scenarios does as well. If you look at customer service, for example – AI is great when used effectively and handling basic tasks. But when a customer is frustrated or has a more intricate need, there is no substitute for the human experience. Customers need empathy, and that’s something that AI isn’t (yet) able to provide. In today’s world, the field technician is often the person who spends the most time with your customers. They have the most impact on customer loyalty and your building your brand. AI augments their skills by removing tasks that don’t require their value, which is a good thing in a time where there’s a large talent gap. Maybe we will be recruiting field techs based on their soft skills rather than technical skills in the future, but we won’t be replacing them with robots.

Myth #3: We Know Better

The final myth I see is that sometimes companies think they can have the best of both worlds – the automation of AI, but the human control over it. The reality is, it just doesn’t work this way. AI is most effective when you relinquish your need for control and let it do its job. This is because it is self-learning. So for example, an intelligent scheduling solution – if you are constantly manually intervening and meddling with the tool because you just aren’t ready to trust it, it won’t be as effective as it could ultimately be if you let it self-learn and do its job. “Having the patience to let the technology do its job is one of the biggest barriers I see to AI and ML adoption,” said Paul Joesbury, Commercial Operations Director at Homeserve, during his interview for the Future of Field Service podcast. “The technology is not plug-and-play; it has to learn your business language. On average, it takes three to six months for this learning process to take place and for the technology to work to its full potential, and many companies don’t have the patience to allow this process to take place.” While it is a big and often uncomfortable change for many companies, if you choose technology providers you feel confident can deliver, then you have to be ready to relinquish that control and let the AI do its job.

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October 31, 2019 | 4 Mins Read

What is Your Service Brand?

October 31, 2019 | 4 Mins Read

What is Your Service Brand?

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By Tom Paquin

In their book about navigating the collapse of the US Auto Industry, Branding Iron, Charlie Hughes and William Jeanes describe a brand as “A promise, wrapped in an experience.”

That’s always stuck with me, and it’s been a lens by which I’ve viewed brand ever since I read those words. A brand, at its best, is clear, simple, and focused, based on a balance of outward messaging from the organization, and inward perception from the customer.

Think about a brand with which you interact on a day-to-day basis. What is the core message at its heart? Typically, that messaging can be diluted into a few very broad categories: A brand can be affordable, or high-quality, or have a social consciousness, or illicit a feeling of nostalgia, and so on, but a brand, at its best, takes the many moving parts that make up a business and points them towards a singular focus.

This is harder to conceptualize for companies that deliver some form of service. How do you centralize a brand that both sells physical products and provides service? How can you create a singular thread that passes through both business functions in a meaningful way?

The easiest way to see this done well (and poorly) is to go to your local shopping mall. Brick and mortar businesses are eager to servitize themselves, and in doing so, are helping to create unified brand experiences that encompass both products and services.

Step into the Apple store and pick up a phone that is considered easy and accessible, or walk to the back of the store, where customer support is engineered to be just as easy and accessible. Sephora and other makeup stores like it provide a mid-scale beauty solution, and patently mid-scale makeup artists to slap it on there for you. LEGOs offer hours of creativity and imagination for kids, and a gigantic mess and foot injuries for parents, and the LEGO store certainly captures that unique energy. Look, too, at the way that Toys “R” Us is rebranding itself. It’s making service part of its DNA, and trying to capture the same fun and excitement of the toys that they sell.

That’s fine with retail, sure, but can brand synergy like that really happen in the field? I’d argue that it needs to, for all businesses. In many cases, your service technician will be the only way that a customer will interact with your brand in person, at all. How do you want that interaction to be perceived? What should the outcome be? How can this be used as a differentiator?

A service brand can’t just be a fast turnaround time when things go wrong and making scheduling easy. That’s the bare minimum of expectations for any service firm today. The way to best unify your brand is to see service as a product. This product, sitting alongside other products in your portfolio, will have certain attributes that tie it to the brand’s promise, and differentiate it versus its competitors. Perhaps this will require a consideration not just of the act of service, but of the outcomes that service provides, or it’ll require a thoughtful and functional audit of what customers actually think about you to begin with.

We’ve previously discussed Spencer Technologies on Future of Field Service, and they’re a company that understands their brand promise implicitly. They’re ostensibly a pure services company, providing setup, teardown, and support to retail clients of all sizes. They pride themselves on their unobtrusive service always delivered by a technician in a Spencer van, never a contractor. They deliver on this brand promise for service in a simple way: Creating dashboards powered by their customers’ SLA agreement and providing visibility of service duration, technician information, and turnaround directly to the client, who often is remotely associated with the issue at a specific retail outlet themselves. So—a little forward thinking and the right technology is more than enough to align your service with the brand promise.

You might be wondering where to start with this, and I’d say there are three steps:

  • Start by getting a picture of how your service business runs. That’s not just to say the actual service delivery, but also the serviceable assets, the contractor network, if it exists, and also what you want your service practice to actually say about you.
  • From there, adjust the business parameters surrounding service and consider whether contracts should be adjusted from break-fix to outcomes-oriented.
  • After that, think about any technologies that can help you thread the needle, what tech is currently in place to support that today, and how you can bridge that gap.

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October 28, 2019 | 4 Mins Read

4 Observations of Innovation in Practice Among Today’s Service Organizations

October 28, 2019 | 4 Mins Read

4 Observations of Innovation in Practice Among Today’s Service Organizations

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By Sarah Nicastro, Creator, Future of Field Service

Last week I was invited to give a keynote presentation at DHL’s The Future of The Services Supply Chain event at the company’s brand-new Americas Innovation Center in Chicago. The 28,000-square foot facility featuring hands-on displays of cutting-edge technologies such as robotics, 3D printing, augmented and virtual reality, and many more was quite impressive. DHL put together a great lineup of speakers for a day full of learning, networking, and experiencing the interactive displaces the Innovation Center has to offer.

As I listened in to the other speakers, including DHL customers that provide critical services in a variety of industries, I was able to pick up on some themes around how these companies are fostering, embracing, and harnessing innovation within their businesses today. Here are four key observations:

#1: Innovation Begins With Aligning Company Culture

The way service-based businesses have traditionally operated versus how you need to operate in an innovation-driven world are in many ways at odds with one another. Operational excellence is important, but the leadership and thinking of an operationally-driven business is different than that of an innovative one. In order to successfully innovate, you need to determine how to strike an appropriate balance between these two aspects and look at what adjustments might need to be made within your culture to promote more innovation. If your workforce is accustomed to being measured based on optimal efficiency and lowest cost, they aren’t likely to focus on innovating. This doesn’t mean you stop focusing on efficiency and costs, it just means that you need to examine how to empower your employees to think outside of the box and be a part of the company’s innovation – because innovation is an everyone job. “We focus on having a broad stakeholder community, and promoting a collaborative culture,” Roger Perry, Senior Manager of Digitalization Strategy at Cisco said at the event.

#2: Innovation Must Be Outside-In

Some companies make the mistake of innovating inside-out, meaning focusing on their products or services and brainstorming about how to do things better or differently. This is the wrong approach, because it is the voice of your customers that matter most. Therefore, you need to focus on innovating outside-in. This means seeking input from your customers on what it is they want, need, value, and find important- not just related to the service you provide today, but even beyond (so that you get ideas not only on how to improve on your present-day business, but also to think about what your future may look like). Joe Beck, VP of Global Supply Chain at Medtronic, shared a heartwarming presentation on how the company approaches innovation, which is always with the customer in mind. “Our customers are the lens through which we view every decision we make at Medtronic,” he said.

#3: Advanced Technology Is Ready For You

We’ve written quite a bit on Future of Field Service about how you need to have a strong technological foundation from which to build on more advanced applications. But for those of you with a good foundation in place, those advanced technologies are available for the taking and have some very impressive business cases. The tour of the Innovation Center was eye-opening for me because it showcased technologies like robotics, AI, 3D printing, and AR in real-world business scenarios that DHL has developed with its customers. It’s one thing to see these technologies showcased in a vendor’s fictional sales demo, but to see the tangible applications that DHL has built to provide value to its customers was really interesting and brought to mind for me how prime-time ready these tools really are for the businesses that are ready to adopt them. The companies in attendance that are innovating have trained themselves to become accustomed to a more fluid, agile way of experimenting with new technologies. “We’ve developed a see/decide/act methodology and have migrated to more methodical releases versus big-bang,” said Perry. At Lenovo, innovation is spurred by the willingness and ability to try new things. “We run many small pilots to test out new ideas, concepts, and tools – if they work, we quickly scale,” said Julio Pineta Ortiz, Director of LAS Services at Lenovo. The idea – and action – of constantly experimenting and scaling what works is again a fundamental shift for many companies, but one that is key to successful innovation.

#4: Innovation Is Data-Centric

“The next growth engine is digitalization,” said Gina Chung, Head of Innovation Americas at DHL, as she kicked off the morning sessions. We know that data is our most powerful tool today and will only become increasingly important in the future. Data is critical not only when it comes to measuring our own innovation efforts to determine success and learn from failures, but also in terms of looking at how we will use data as an asset for our customers. “You can’t manage what you don’t measure,” said Ortiz. “We focus 80% measurement on strategic KPIs, and 20% on tactical.” For most organizations, making data-driven business decisions isn’t new – but for many it is still very reactive. In order to keep pace with the industry, we need to focus heavily on getting ahead of the data to be able to use it more proactively. “The goal is to move from using data in hindsight to using data as foresight,” says Jaime Hooker, VP Americans Service Logistics at DHL.

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