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By David Krebs, Executive Vice President Modernizing Field Service Addressing the Last Mile of Field Service Operations

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Page 1: Modernizing Field Service - mobelisktech.com€¦ · Modernizing Field Service Addressing the Last Mile of Field Service Operations. 2 Introduction The disproportionate cost of the

By David Krebs, Executive Vice President

Modernizing Field ServiceAddressing the Last Mile of

Field Service Operations

Page 2: Modernizing Field Service - mobelisktech.com€¦ · Modernizing Field Service Addressing the Last Mile of Field Service Operations. 2 Introduction The disproportionate cost of the

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Introduction

The disproportionate cost of the often chaotic and fragmented last-mile of field service delivery has been a recurring and growing issue in the transportation and logistics sector. While existing field service workflows may not exhibit the same “last-mile” pain points, improvements such as streamlined scheduling, job assignment and routing optimization have translated into significant labor and fuel cost savings. However, the “last mile” challenges with field service operations extend well beyond dynamic scheduling and route optimization and have to do with what happens when a technician arrives on site in a customer and asset-facing capacity. Many field service solutions have stopped short of integrating the job-site workflow, resulting in operational inefficiencies and erosion of customer confidence.

Reliable and fast delivery of high-quality services will define field service leaders in today’s environment where customers have an “on-demand” expectation. However, many of the existing investments in field service solutions are falling well short of this promise. From the pervasive use of inflexible legacy solutions to the limited visibility into the complete field service workflow provided by existing processes—often still pen and paper based, the opportunity to modernize the job-site field service operations is substantial.

Nowhere is this more evident than at the point of asset interaction where technicians are performing maintenance or inspection services. Most of today’s field service automation solutions primarily focus on the dispatching and scheduling aspects of service technicians yet do little to provide visibility and enhance the last mile of service operations. More specifically, existing solutions fall short of more seamlessly integrating job-site specific reporting into their field service management platforms, leading to poor or inaccurate workflow reporting and workflow inefficiencies. Moreover, the mobile computing and communications used by frontline field service technicians are often not optimized for highly mobile workflows—the ubiquitous vehicle-mounted PC is often left behind in the service vehicles—and are based on legacy or proprietary platforms, incurring higher ownership and support costs. Digitizing the last mile of the field service workflow means much more than simply equipping service technicians with modern mobile devices. It is a comprehensive reassessment of the entire workflow from dispatch to closing the service ticket with more than a signature—a complete audit trail. Forward-thinking organizations are putting the infrastructure in place to more efficiently address customer demands. The time is ripe with affordable access to technologies that provide the tools and real time data needed for intelligent customer interactions.

Shift in Field Service Automation with Growing Focus on Addressing the Service Gap and Last-Mile Customer and Asset EngagementWith continued compression of “product” margins, there is mounting pressure to drive increasing levels of revenues and profit from service-centric revenue streams. For a growing number of organizations this means shifting from traditional reactive—or as-needed—field service operations to more dynamic proactive or outcome-based models. However, realizing this potential requires more than embedding connectivity capabilities in business-critical assets to enable remote monitoring and diagnostics. Of equal importance is addressing the black hole that is today’s job-site workflow. Job-site information is not currently being collected in a coordinated or orchestrated manner. Moreover, the measurement and computing tools made available to service technicians are typically legacy solutions that are not IoT-enabled and are a challenge to manage and support. Taken together, the level of reporting that occurs on the job site is inconsistent at best, translating into massive operational inefficiencies and an overall increase in the cost of service.

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Exhibit 1: Today’s Field Service Operations

Exhibit 2: Field Service Daily Shift by Workflow or Task

As needed (e.g., fixing broken equipment)

50%

Periodic (e.g., servicing equipment every three months)

33%

Outcome-based (e.g., minimizing

equipment downtime for one

year)17%

By connecting devices, people, and business networks, the next generation of field mobility solutions are changing the way business and customer-critical assets are being managed, facilitating the shift from a reactive service model to a proactive, predictive, and preventative service model. Now that service revenues are growing at twice the rate of traditional product revenues for many organizations, an increasing focus and strategic emphasis is being placed on cost savings and revenue generating field service operations. Leveraging new technologies such as IoT, unprecedented insight into business processes will lead to new products and services, innovative business models, and greater business growth.

However, today’s reality paints a different picture. Service technicians today spend more than 30% of their day in a customer or asset-facing capacity on the job site. With so much time attributed to non-job-site-related activities, it is essential that technicians optimize the most critical aspect of their daily shift on repair and maintenance. In fact, according to field service organizations, the KPIs with the greatest benefit or impact to their operations are time-to-fix, first-time-fix and overall response times.

Preparation before field

service operation

13%

Driving time17%

Repair, maintenance

33%

Schedule change by customers

10%

Lost time due to customer absence

9%

Reporting11%

Making an invoice

7%

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Specific factors contributing to job-site workflow challenges are diverse. As identified by VDC’s research conducted among field service solution decision makers, issues ranging from incomplete job data in the work order to a lack of a comprehensive audit trail are among the many factors compounding workflow inefficiencies. As a result of these issues, ineffective job diagnosis is a common occurrence with service technicians, ultimately wasting time and incurring prolonged customer visits. Today’s fragmented and often disconnected approach to managing work orders and job site workflows is often the root cause of these inefficiencies – for example, many service technicians still rely on pen and paper at the job site and when mobile computing and digital data collection and measurement solutions are used they are frequently not connected or properly integrated with the work orders technicians are supporting. Modernizing this infrastructure offers service organizations the opportunity to substantially improve their leading service KPIs including time-to-fix and first-time-fix rates.

Exhibit 3: Most Common Field Service Workflow Pitfalls

Exhibit 4: Field Service Worker Productivity Challenges

9.8%17.6%

25.5%27.5%

29.6%37.3%

41.2%43.1%

45.1%51.0%

0% 20% 40% 60%

Lost work orders and invoicesFluctuating spare-parts stock levels

Inability to rescheduleInaccurate demand forecasts

No audit trailIneffective job diagnosis

Misaligned schedulesCommunication failures

Wasted or prolonged visitsInaccurate/incomplete job data ties to a new work order

Knowledge drain and knowledge transfer represents an equally challenging issue. Field service organizations cite an overall shortage of skilled workers, workforce reduction, and today’s aging workforce as three key challenges afflicting their operations today. The aging workforce—in combination with the difficulty sourcing skilled workers – represents an especially critical concern considering the risk of losing the institutional knowledge carried by senior workers as they retire. To date, field service organizations have not been successful at codifying and transferring this critical know-how. With the continued pervasiveness of pen and paper by field service workers and the poor reporting and audit trail relating to job-site specific tasks and workflows, these issues left unaddressed will only continue to exacerbate and further erode field service performance and profitability.

21.6%23.5%

27.5%33.3%

39.2%41.2%

43.1%54.9%

0% 20% 40% 60%

Lack of required spare parts to complete the jobLack of accurate visibility into asset or customer history

Managing contract workersAging workforce

Workforce reductionDrive time between jobs

Scheduling issuesShortage of skilled workers

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Exhibit 5: Leading Priorities Driving Field Service Solution Investments

Field Service Modernization—Addressing Service Bottlenecks and Lighting Up the Last Mile of Service DeliveryField service executives recognize the last mile challenges of their current operations and realize the benefits associated with workflow modernization. Recently polled field service executives identified the need to increase service workforce efficiency, customer demands for improved service, the need for faster response to exceptional or unexpected events, and the increase in first-time-fix rates as the top four factors driving modernization investments. These ultimately require a new approach to resource planning that provides flexible response capabilities. Focusing on dynamic routing is no longer sufficient. Service leaders are adopting agile planning capabilities that are based on sophisticated execution data and analytics. The specific details of how long it takes—and how to complete – individual service tasks are key inputs into an integrated service platform that enables organizations to not only improve job-to-job and day-to-day service but also support strategic planning to meet customers’ future needs.

3.2%

11.1%

12.7%

14.3%

15.9%

15.9%

15.9%

19.0%

20.6%

23.8%

26.1%

28.6%

39.7%

46.0%

0% 10% 20% 30% 40% 50%

Need to have real time view into spare parts inventory

Need to have real time view into issue resolution

Better field service worker communication and collaboration

Increased customer service and loyalty

Expansion into new markets or service offerings

Need to operate with reduced service workforce

Need for real time view into employee status

Increased competition in products and services

Increasing volume of service requests

Improved worker safety and compliance

Need to increase "first time fix"/ reduce repeat visits

Need for faster response to exceptional or unexpected events

Customer demand for improved service

Need to increase efficiency of service workforce deployment

Technology and the capacity to support workers and engage customers in new ways is critical to achieving service goals and more agile operations. Some of the more critical requirements include:

Shift to comprehensive field service solutions that complement scheduling and dynamic dispatching capabilities with integrated inspection and maintenance workflow support to address today’s inaccurate job reports and overall lack of an audit trail. Upgrading legacy/proprietary mobile computing, communications, and data collection devices with modern, digital solutions. Provide greater flexibility and support for modern mobile platforms and adopt mobile form factors that are conducive to mobile workflows and do not get left behind in the service vehicle. Adoption of purpose-built, modern, and IoT-enabled digital-data collection solutions—such as thermal imaging, laser measurement, gas leakage detectors, vibration and temperature measurement, bar code/RFID readers – that are compatible with mobile devices and integrated with the workflow application to aid inspection, repair, and reporting and address critical first-time-fix pressures.

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Service-Based Business Models Provide Unique Value Proposition to Address Growing Complexity of Field Service OperationsAccording to VDC’s research, organizations with field service operations are clearly committed to their mobility and digital transformation initiatives with nine in ten organizations stating that mobility solutions were more critical this year than the previous one. However, a large share of organizations are frustrated with the pace of development and over 55% of respondents to a recent VDC survey either somewhat or completely agreed that their organization struggled to effectively engage with customers using mobile solutions. With the vast majority of organizations with field service operations still relying on internal resources to support these initiatives, this may represent one of the key factors causing that frustration in the pace of change. When pressed, decision makers point out that “Project complexity” is the second-highest-rated mobile adoption barrier behind “Data and file security”.

Adoption of more service-centric solutions to support field service modernization initiatives and address critical last-mile gaps with existing solutions offers a viable option for organizations also looking to alleviate the support challenges facing internal IT departments. The emergence of comprehensive, service-based solutions that provide support for mobile devices, purpose-built accessories, software applications, and associated professional services in a consumption-friendly service model are unique in addressing modern field service automation requirements, in particular in the adoption of modern mobile solutions and connected IoT services. Mobility and IoT share many of the same challenges: both areas are notorious for their lack of standardization, diverse vendor ecosystem, and multiple technology platforms; these areas have struggled to optimize connectivity and minimize security risks; and there are also the common business challenges of minimizing costs and future-proofing technology selection. Organizations struggle with decisions spanning which device types best fit their use cases; defining the device connectivity and data format; implementing security, governance, and policy across each layer; and ultimately staging, kitting, deploying and managing these business-critical operations technologies.

Use of AR-based remote help solutions to provide enhanced support through streaming video guidance, on-screen annotations, and more seamless knowledge transfer, and address the combined challenges of lower-skilled young workers and an aging workforce. AR-based remote-help solutions are well equipped to enable faster response times with remotely located senior technicians assisting junior technicians onsite in real time to ensure service tickets are closed on time with improved first-time-fix and time-to-fix rates. Adopt modern management and support of remotely connected mobile assets to better manage uptime of business critical solutions and provide consistent and seamless support. Reduce complexity of field service automation solutions and IT oversite burdens by deploying a service-oriented architecture that enables a shift from today’s CAPEX-centric models to more flexible OPEX solutions. Evaluate emerging integrated workflow solutions as a service option (WSaaS) that offer a complete field service solution: mobile devices, purpose-built accessories, software, and comprehensive support in a service-consumption model.

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Exhibit 6: What are the Primary Drivers Behind your Organization’s Decision to Invest in Third-Party Enterprise Mobility Professional Services?

28%

29%

32%

32%

33%

35%

35%

37%

39%

0% 10% 20% 30% 40% 50%

Inability for internal IT to keep up with the pace of changein the mobility market

Provider scale

Address the increasing impact that digital technologies arehaving on our business

Global support capabilities of third-party service providers

Lack of internal mobility security expertise

Minimize systems downtime

Outsource non-core IT functions

Reduce complexity

Reduce mobility deployment time/costs

It is exactly for these reasons that organizations turn to third-party solution providers—including managed mobility service providers. Reducing mobility deployment, increasing the pace of mobile innovation, and reducing solution complexity were identified as the top three adoption drivers for third-party mobile professional services. In fact, almost nine in ten organizations taking this approach claim their mobile solution providers have enabled them to compete more effectively. Managed mobility providers are able to fulfill every step of this process with both mobility and IoT devices. In fact, field service organizations have already begun to see managed mobility as an increasing source of support.

As organizations with field service operations come to grips with these market realities, they are increasingly looking for qualified IT solution and service partners to bridge their capabilities gaps. Managed mobility services are increasingly attractive for the opportunity to reduce downtime while cutting maintenance and management costs with over eight in ten organizations open to considering managed mobile services. Based on VDC’s research, key considerations among organizations evaluating and selecting next generation mobility service providers include:

Exhibit 7: Would your company be open to considering a managed mobility service that is technology and solution agnostic?

NO YES83%17%

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Rapid deployment services: the ability to fast-track projects while helping customers understand the ROI potential of their investments.Mobile application lifecycle services capabilities: the ability to both develop and manage mobile applications will be increasingly desired going forward.Retail sector and sub-sector expertise to cater to the variable requirements that are unique to your business.Provide service and support capabilities for all connected end-points, not just mobile devices. Instrumenting legacy systems is becoming a key priority as organizations are beginning to capitalize on the idea of connected devices and their associated business benefits.Advanced monitoring and analytics capabilities: the ability to leverage cloud service and deliver real-time, remote-monitoring capabilities will be a key area for competitive differentiation moving forward.Global service footprint: a critical element to being able to cater to multi-national requirements.

ConclusionIt is no longer an option for field service decision makers to ignore the gaps in their service operations—in particular surrounding the last mile of on-site service delivery. The expectations of today’s customers for ongoing improvements for inspection and repair performance while also having a well-documented audit trail is both a challenge and an opportunity for field service providers. Organizations with field service operations must retool their field workforce with solutions that address their last-mile challenges and deliver a more seamless customer experience.

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About the Author

About vdc research

Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies is among the most advanced in the industry, helping our clients make critical decisions with confidence.

Offering syndicated reports and custom consultation, our methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets. Located in Natick, Massachusetts, VDC prides itself on its close personal relationships with clients, delivering an attention to detail and a unique perspective that are second to none.

© 2018 VDC Research Group, [email protected]

David Krebs has more than 10 years of experience covering the markets for enterprise and government mobility solutions, wireless data communication technologies, and automatic data-capture research and consulting. David focuses on identifying the key drivers and enablers in the adoption of mobile and wireless solutions among mobile workers in the extended enterprise. David’s consulting and strategic advisory experience is far reaching and includes technology and market opportunity assessments, technology penetration and adoption enablers, partner profiling and development, new product development, and M&A due diligence support. David has extensive primary market research management and execution experience to support market sizing and forecasting, total cost of ownership (TCO), comparative product performance evaluation, competitive benchmarking, and end-user requirements analysis. David is a graduate of Boston University (BSBA).

David Krebs