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EXECUTIVE SUMMARY

Today’s Field Service Management (FSM) landscape is undergoing major change. Due to technological advances and market changes, what used to be an industry centered on break/fix models has moved into software support, network services, remote and mobile service provision, and self-help.

According to Gartner, packaged FSM applications, maintenance, and service revenue totalled $2.07 billion from March 2016-March 20171. This approximate 21% increase from the previous year was recognized by field service business leaders as a result of upsell from better-informed technicians.

They also put it down to opportunities created by new capabilities when it comes to mobile apps, workflow, and schedule optimization, that help reduce cost and improve customer experience.

With the emergence of new technologies, FSM has been able to continue its journey of reinvention. Field service organizations are quickly realizing the potential of tools for remote and predictive diagnostics by utilizing IoT within FSM systems; not only enabling them to cut costs but dramatically improve customer service, and manage business operations more efficiently.

This whitepaper sets out to take a closer look at where the future of FSM is headed, and how businesses can stay ahead of the curve when it comes to innovation.

CUSTOMER DEMAND FOR QUICKER RESPONSE TIMES

50% of the UK/Europe FSM market base2 report customer demand for quicker response time, as the top factor driving the need to optimize field service performance. Actions taken towards optimization include the development and improvement of metrics

and KPIs; the automation of manual processes and activities; and integration of new technologies into existing field service operations in order to meet customer expectations.

This is creating a two-fold impact on the service organisations need to provide to their customers, as well as their approach to software and technology. From a service perspective, they will need to firstly assess the state of their customers’ business processes, before looking at automation.

Simply providing software may not be enough to improve KPIs; a more consultative-led approach is required. Once the review stages are complete, they will be left with a detailed roadmap of how to create a solution based on the exact needs and requirements of their customers.

The Future of Field Service Management:

Advancing Market Trends and Emerging Technologies

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Article The Future of Field Service Management: Advancing Market Trends and Emerging Technologies

CUSTOM-BUILT INTEGRATION

As a customer-oriented industry, FSM requires software and solutions that can improve ser- vice quality, increase customer satisfaction, and optimize efficiency. Everescalating overheads and fierce competition constantly put pressure on businesses to improve delivery methods and, more importantly, underlying technology infrastructure.

Transitioning from belonging to an over-arching ERP system, FSM products are now either part of CRM or used as a standalone solution. This inte-gration, whether into ERP, Ticketing, IoT platforms, or iPaaS middleware, often calls for a custom solution build. Where certified and tested packaged inte-grations are becoming more common, integration still forms the largest and most costly aspect of FSM implementation.

However, with a focus on cutting cost and saving time, we may see advances in packaged integration solution providers looking to capitalize on where businesses are struggling to do this themselves.

With a unified technology stack, field service organizations that integrate platforms can boost productivity and efficiency, while ensuring enterprise-grade security and reliability.

The benefits include:

• Real-time access to mission-critical data for field- based employees

• Support for secure and reliable data transferbetween disparate mobile platforms

• Integration of back-end systems with front-endmobile devices

• Smooth, fast deployment of business apps

THE IMPACT OF IOT

Perhaps the greatest impact of IoT will be the normalization of the FSM playing field. No longer will it only be for the large enterprise organizations; the market will be wide open to entrants of all sizes, scale of market coverage, vertical, and geographic coverage.

Much of this will be attributed to the proliferation of cloud-based solutions and ‘as-a-service’ models. We are already experiencing a shift away from traditional perpetual license-based pricing to more scalable, subscription-based models. This is facilitating entry for the SMBs, utilizing IoT as a way to gain access to smarter solutions that enable them to play in the same space as their larger competitor counterparts.

From a data perspective, a wealth of information is being generated thanks to the Integration of IoT into FSM. Such data has never previously been available, and is driving field service organizations to look for solutions that enable them to establish what data they need to effectively run their services operations.

Without this capability, many are drowning in “data lakes” of information too large to cope with and too complex to draw insight from.

However, with the right solution, organizations can pinpoint specifically which types of data to collect and process, harvesting effectively for maximum value.

AUGMENTED REALITY AND VIRTUAL REALITY

The virtual and augmented reality market will reach $162 billion by 2020, according to the IDC4. We’re already seeing many organizations who have adopted FSM, using live chat or video to support technicians remotely; either via a third-party partnership or by using in-house tools.

Over the next 12 months, more

than two-thirds (70%) of UK/Europe

FSOs will have integrated new

technologies into existing manual

field service operations, and

automated existing manual field

service processes or activities.3

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Augmented-reality can also be used to enable better on-site collaboration between sub-contractors and technicians with remote experts. Based on their field of view, teams can provide context-specific anno- tations and instructions, assessing the situation and offering real-time specialist assistance.

These technologies are being developed to improve maintenance service levels, even before the service call goes out. Service organizations are looking to utilize augmented reality and virtual reality tools during the training process; offering new or inexperienced technicians opportunities to practice maintenance work.

By enabling teams to perform complex and standard procedures in this way, businesses can better ensure their people are fully equipped with the skills needed to resolve technical customer issues, with speed and accuracy.

AI & MACHINE LEARNING

Schedule optimization vendors are using AI to increase accuracy when it comes to estimating task duration and parts needed for repair work. By utilizing AI to analyze historical data, vendors can also pinpoint which factors create the most impact on results. Looking ahead, this signals a transformation for scheduling engines.

AI can extend their capability, enabling them to learn to use work order or environmental attributes - such as traffic and weather status - for the purposes of prediction. These attributes may fall outside of the set they were originally programmed to evaluate, opening up the prediction possibilities and enabling smarter forecasting.

With technicians armed with mobile devices out in the field, the opportunity for AI and virtual assistant technology promises hugely productive outcomes

when it comes to troubleshooting repair and maintenance scenarios while on a job. Some of the most talked about emerging AI technologies include:

• Reactive Voice Technology – manuals, guides andvideos delivered to technicians in real-time

• Intelligent Devices – using infrared technology,temperature and chemical presence detection,technicians can make faster, safer assessmentsin the field

• Machine Learning Libraries – used to predictfuture equipment failure rates

• Service Outcomes – improving first-time fix ratesand safety

In addition to the endless possibilities of AI, the real advantage comes in mapping optimization with business goals. From SLA compliance to revenue growth, field service organizations are looking to use AI capability to find the right path that leads to each desired outcome; helping solve real workforce management problems.

MOBILE FIELD SERVICE AND TRACKING

Business-savvy Service Managers already know that the key to a well-functioning fleet is the ability to manage, track, and connect their workforce. Providing teams with insight is also essential, and with an ever-increasing affordability when it comes to mobile solutions this focus is set to continue over the next few years.

Since all service technicians will have some sort of mobile tracking device, this makes mobile workforce management the default direction to head in for the FSM industry; requiring businesses to make an investment to enhance technology in order to extend capability beyond user devices.

Article The Future of Field Service Management: Advancing Market Trends and Emerging Technologies

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Article The Future of Field Service Management: Advancing Market Trends and Emerging Technologies

Not only will this call for an embedded infrastructure to support with workforce mobilisation, it also requires a solid mobile strategy that can keep pace with the continuous iterative advancements of the mobile evolution.

CUSTOMER SERVICE FOCUS

Traditional approaches to field service delivery that have been largely stable for decades are being disrupted, by outcome-based service business models.

This is the result of a renewed focus on the customer experience, driven by increasing numbers of customers demanding stricter uptime and performance SLAs. Businesses are being held fully accountable, and as such are looking to improving customer experience. The focus is on seeking more efficient ways to enable and support technicians, in the name of increasing brand loyalty, and profitability.

Customer experience:

• Impacts client-retention by over 40%

• Improves customer satisfaction and providesupselling opportunities in over 30% of interactions

• Will overtake price and product as a key branddifferentiator by 2020

With this in mind, field service organizations are looking to improve customer service across all channels and parts of the business. From imple- menting self-service portals to voice-activated technologies giving customers access to ser- vices, products, and information without the need for button-pushing, new service models are the driving force behind making the improvements necessary to meet customer demands. Making customers wait is simply not an option, therefore minimizing response times is key.

THE POWER OF STRATEGIC PARTNERSHIP

In order to achieve their end goal, businesses rarely care whether their primary FSM solution provider offers direct or indirect services through a strategic partnership. In fact, by 2020 according to Gartner; over 40% of field service work will be performed by technicians who are not employees of the organization that has direct contact with the customer.

In many cases, it serves FSM vendors well to be linked to reputable industry partners. After all, the better the technology, the more advantageous the offering.

However, being able to offer the right technology is not the be all and end all. Field service organizations may also require their FSM solution vendor to help with design, implementation, and support their newly acquired solution.

For example, should a business be using Microsoft Dynamics 365 as their CRM, they might need help deciphering whether Microsoft Field Service would be the best complimentary tool before deciding to purchase.

It is this expertise and technical know-how that serves as the real value-add, and is where strategic partnering can really come into its own; with one partner providing the other with an extensive expert knowledge-base from which to provide a more consultative approach to customer relationships.

GARTNER MAGIC QUADRANT FOR FSM

The latest Magic Quadrant from Gartner details that despite large vendor acquisitions and consolidation, the FSM tools market remains fragmented.

By 2020, 70% of organizations

will cite customer satisfaction as

a primary benefit derived from

implementing field service

management, up from

approximately 50% today.5

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The vendors that have been included - many of which are new entrants – demonstrate what Gartner deems to be important capabilities when it comes to being counted amongst the challengers and leaders of the FSM market:

• An ability to provide multi-tenant SaaS

• Single-tenant hosted or on-premises deployable products

• Products that support FSM for midsize and large enterprises in a range of industries

• Narrow, but deep, field service scheduling optimization or mobile apps

• Broad service suites

WHERE NEXT?

Many field service organizations struggle when it comes to keeping up with innovation and adapting quickly to change. We exist in a word fully submersed within a digital era, flooded by new disruptors such as algorithm-driven businesses and innovative data. Since technology is developing at a dramatic rate, organizations must be able to react to and rapidly adopt new tools in order to stay competitive. The survivors of the next decade will be made up of the ability to not only stay on the edge of innovation and high-speed change, but those able to deal with its unpredictability and uncertainty. Every individual within an organization is capable of spotting threats as well as opportunities.

If a lack of progress is evident, the result will be one of frustration leading to de-motivation and decrease in brand faith. This means individuals will need to be confident when it comes to influencing the business at all levels. An internal demonstration of innovation and keeping up with change is therefore integral to employee empowerment, and key to future success.

There is no doubt that new technologies and processes are revolutionizing the FSM marketplace. While mobile field service will continue to be a key driver when it comes to field operations, ancillary technologies will power mobile operations further - with connected devices making their way into end-user infrastructure.

This fuels the need for FSM systems to be integrated with wider systems such as ERP and CRM. And, in order to keep up with mobile advancements, organizations must be unafraid to enrich technicians by focusing on knowledge management and employee performance. Empowering their workforce while keeping them accountable, will enable them to take the first steps towards embracing the future of FSM, and building a truly connected service enterprise.

Article The Future of Field Service Management: Advancing Market Trends and Emerging Technologies

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SOURCES:

4 UK Business Insider

5 Gartner