August 2017 - The Service Council

Has the Business Case Been Made for 3D Printing for Service Parts, Yet?

By Aly Pinder | Perspective | No Comments

The promise of 3D printers revolutionizing service is still science fiction for many. We may have thought we would be there already based on the hype in the news or on Twitter. But as noted 3 years ago, actual use cases of 3D printing for the field or service parts are still rare. In 2014, TSC surveyed 175 manufacturers and service organizations and noted that only 3% of sampled organizations had capabilities around 3D printing, with another 7% building the business case for investments in the technology. For these organizations, 3D printing has shown the ability to go beyond the manufacturing floor or engineering where it’s primarily used to support new product development. In service, 3D printing can support repair operations, end of life parts management, and replacement of parts which are not readily available on site or near by.

This relatively slow adoption curve highlighted earlier resembles other innovative technology leaps of the near past (i.e., Augmented Reality, wearables). However, unlike those other technologies, 3D printing seems stagnant in a perpetual state of wait and see. So how do we get past this state of neutral and hit the accelerator? To find out, I interviewed a few executives who have taken that leap. Here are 5 takeaways from my conversations:

1- Look at 3D printing as another tool in your toolkit, not the only tool. Cost can force service leaders to elevate the uses of 3D printing beyond the appropriate level. This should not be the case. This technology should be leveraged to support use cases where fitting. Don’t look to 3D printing as a silver bullet to solve inventory management problems. 3D printing technology shouldn’t be expected to replace proper parts planning and partner management. Based on an analysis of part scarcity, criticality, or price, an organization might find the opportunity to use 3D printing as a solution in their overall inventory management processes. 3D printing technology provides service leaders with the catalyst to re-evaluate parts usage, as better understand if in fact there is a business case. While the technology might precede the actual business case, it does offer a point in time for companies to analyze their service parts holdings and usage.

2- Give the technology to the front line and let them explore the possibilities. Innovation should be rooted in practicality. You should ask yourself, “does this solve a problem?”. Thinking of 3D printing technology as cool misses the point, and could end up as an expensive toy for the engineering team. Allowing the service team to recommend uses to problems they face every day is the path to maximizing the value of the investment. Mandating the use or isolating the technology in the back office will cap the ability to see how this tool can support service and useful innovation.

3- Break the barrier between IT, engineering, and the service team. Often 3D printing capabilities are viewed as an IT or engineering function for new product development or manufacturing. Though true, 3D printing can also support replacement parts and service. But in order to maximize the opportunity, service must be included in the discussion. For those organizations that are using 3D printing in their manufacturing processes, there are lessons that can be carried over to the service parts arena which could help lower the cost pressures and learning curve. This technology also demands quite a bit of IT involvement, and thus requires IT and service to be in complete alignment. IT and engineering should spend some time with the service team to better understand their needs and how 3D printing can support service. Opening a dialogue and creating opportunities to collaborate around the technology will spark limitless ideas which might actually solve real problems faced by the service team.

4- Explore other industries to understand the possible. The use case for 3D printing may not be evident in your industry as evidenced by the low adoption numbers listed above and in previous TSC research. But looking at how organizations from other industries are using this technology may open your eyes. For a sample of the possible, check out here, or here, or learn from this innovative team. On land, in the sea, or in space, organizations across a diverse set of industries and environments are exploring this technology. Remove the mindset that you’re not ready or this won’t fit your business. If these organizations and industries which aren’t immune to regulations and cost pressures can make 3D printing technology work, you should be able too.

5- Bring support services to the discussion. The excitement found in 3D printing can quickly turn into a strategy of let’s print everything. But it is important to be mindful of which parts can or should be printed. In industries where multiple suppliers manufacture the parts on the equipment, service needs to be mindful of which parts are proprietary and which can be recreated. Also, in highly regulated industries, service leaders need to be aware of which parts can’t be printed due to regulatory restrictions. To ensure the promise of 3D printing can be properly executed, IT, product design, legal, and partners must be engaged and a part of the process. Again, having a strategy means more than just thinking about the future applications of this technology. You need to ensure what you plan can and should be done to avoid roadblocks, delays, or lawsuits down the road.

3D printing is still early days. However, the promise is there for the taking for companies that are willing to take that leap. But too often, we let skepticism thwart our imaginations. I hope to take away some of that skepticism and apprehension, so look for more from The Service Council on this topic as we will hold a Smarter Services Webcast in October on 3D Printing’s Impact on the Service Supply Chain. If you are interested in learning from some leading-edge service organizations, please register for the event.

Aly Pinder Jr
Director of Member Research & Communities
The Service Council
ap@servicecouncil.com
818-590-5373
@pinderjr

Installed Base Revenue Growth: Lessons from Hayward Gordon

By Sumair Dutta | Perspective | No Comments

At The Service Council, we get to track major trends impacting the service areas of manufacturing and other businesses. For the past 3-5 years, we have consistently seen the following priorities rise to the top of the service leader’s list.

  1. Enhance the level of predictability in service operations and customer response
  2. Provide a differentiated customer experience
  3. Support revenue growth initiatives

We find that most organizations now have revenue objectives for their service and support businesses. As seen in the image below, these revenue pressures arise as the organization is looking to combat competition or commoditization in the product side of the business. Service is often seen as a source of revenue as well as a direct contributor to profit margins.
TSC Data - The Focus on Service Revenue
Most organizations, even those with revenue programs in place, continue to struggle with the identification and prioritization of revenue growth opportunities. It’s not that there isn’t enough data to dissect and analyze, it’s just that there is limited guidance on what data to sift through and prioritize. In addition to making sense of revenue opportunities, organizations often stumble with change management in ensuring that revenue opportunities are followed up on by dedicated sales or account management.

I recently had the opportunity to participate in a short webinar (listen) on the topic of revenue growth in the aftermarket. Joining me on the webinar were Mandar Parikh from Entytle and Steve Evans from Hayward Gordon. If you don’t know Hayward Gordon, they are a manufacturer of industrial pumps in mixers and have been in business for more than 60 years. You can hear more about their story on the webinar recording (listen), but it echoes that of several service organizations that we speak to. Their primary customer market (mining, and oil and gas) has experienced and continues to experience a slowdown and the company was looking to service or the aftermarket to uncover new revenue opportunities.

In their pursuit of these opportunities, the company embarked on a customer connectivity program, aimed at being more proactive in understanding customer needs. The intent of this program was to listen to customers and to consistently connect with them to offer value. To prioritize which customers to connect with, the organization contracted with the team at Entytle to review available aftermarket and customer data to identify potential opportunities for contact coverage, parts sales, and more. Once again, more about the path taken and results seen can be captured on the webinar. What I found most amazing (and valuable) were Hayward Gordon’s keys to success. These keys can be applied to most projects, but they become extremely pertinent in projects where data analysis serves as the precursor for a modified approach around customer outreach.

  1. Attain Senior Management Buy In. In any revenue-associated project that touches sales, one must get the buy in of sales leadership. If it’s not a priority of sales leadership, then it won’t be a priority for sales personnel.
  2. Focus the Effort. Hayward Gordon’s initial foray into opportunity identification was too broad, required too much data, and yielded too many pathways. The company found its rhythm when it narrowed down its focus to 3 primary types of pumps with proprietary and high dollar value parts. This allowed to team to specialize its approach to and discussion with customers.
  3. Know Who to Talk To. Different customer stakeholders have different obligations and pain points. The equipment operator cares about different things when compared to a plant or site manager. It’s vital that sales or account management approach the right customer in proactive communication and outreach programs.
  4. Communicate to Change. Proactivity around customer communication and value can’t just be a one-time program. It must be built into the culture of the sales and account management organization. To attain this, it is vital that the organization consistently make its team aware of the value delivered (to the customer, to the organization, to the individual) via an investment in customer approach.

You can hear more of the Hayward Gordon story and see some of our research via the on-demand version of the webinar (listen). If interested in learning more about our research on service revenue or other pertinent topics to the service leader, feel free to reach out to me at sd@servicecouncil.com

Symposium Series: Southwest Airlines’s Sonya Lacore on Customer Centricity

By Sumair Dutta | Perspective | No Comments

The Symposium nears – 5 weeks to the day. Last week we introduced one of our keynotes John Rossman and today we’d like to feature Sonya Lacore from Southwest Airlines.

Welcome Sonya

Last month, we were pleased to welcome Sonya Lacore, Vice President of Inflight Operations from Southwest Airlines, to our Day 2 keynote roster that focuses on customer-centricity. Sonya has been with Southwest from 2001 and started there are as a flight attendant. (Her Southwest Profile)

What Will Sonya be Sharing?

On her session on September 12, Sonya will be sharing her thoughts on what customer-centricity means to Southwest Airlines. The airline is often renowned for its operational efficiency and employee friendliness and Sonya believes that the latter makes all the difference in creating a differentiated service and customer experience. She’s quick to bring up that every employee should understand what their function is. This relates to what they do on a day in and day out basis, and it’s something that can be acquired via education and training. What creates a differentiated service or customer experience is the ‘essence’ of an employee’s role. These are the intangibles that lead to an employee considering what else can be done to improve a customer’s situation.

For those in service leadership, Sonya believes that there are three vital questions that need to be top of mind:

Who are your customers?
This goes back to internal vs. external customers. Its key to understand that a service leaders time need to focus on employee empowerment to support customer strategy.
What do your customers want?
Listening to internal and external customers is key to understanding what they value. Delivering on that value is where service leaders need to invest their time and energy. If the gap between what we deliver and what our customers want is large, then the service leaders mission is to bridge that gap.
Have you given your customers something to talk about?
Customers will talk whether you like it or not. What you can shape is what they will talk about. Negative talk can do irreparable damage to a brand, while positive talk can create

How Can I Join the Symposium to Hear Sonya Speak?

We can’t wait for Sonya’s session on September 12 at the Smarter Services Symposium. She promises to share more about the past and future of customer-centric behavior and why she believes that personal interactions become more important in a world where customers are less and less ‘conversational’. If you’d like to hear Sonya at the event, we encourage you to research the event and join us in Chicago.

To learn more about The Service Council’s 6th Smarter Services Symposium, please visit our event page at www.servicecouncil.com/symposium2017. If you need further information, please feel free to contact our team below.

For Attendance Inquiries: Ray Morley, Director of Member Success, rm@servicecouncil.com, 603-289-6492
For Speaking Inquiries: Sumair Dutta, Chief Customer Officer, sd@servicecouncil.com, 262-649-8721
For Sponsorship or Other Inquiries: John Carroll, Chief Executive Officer, jtc@servicecouncil.com, 617-717-8300

Unable to make the Symposium this year, but would like to stay in the loop of what’s discussed? Then feel free to save your seat for our post-event webcast (September 21 at 11am Eastern) here.

Symposium Series: The Amazon Way with John Rossman

By Sumair Dutta | Perspective | No Comments

As we near the 2017 Smarter Services Symposium (Register Here), we wanted to introduce you to several of our keynote speakers. Today we focus on John Rossman, Managing Director at Alvarez & Marsal and Best-Selling Author of two books on The Amazon Way.

Why we Approached John?

Service expectations are getting consumerized. For all service businesses, the experience that is delivered to customers is evaluated not only against others in the space, but also against the likes of companies like Nordstrom, Zappos (also Amazon), USAA, Ritz Carlton (also at the Symposium), and Amazon. These companies are trailblazers in service and support and we strive to share the perspective of these leaders at the forum that is our Symposium. Our research continues to indicate the growing importance of customer experience as a differentiator for service and support businesses.

At the 2016 Smarter Services Symposium (recap report, blog, webcast), discussions on innovation centered around customer experience and most innovators were looking at aspects of the Amazon experience to model their own strategies and investments.

What Will John Be Sharing with The Group?

John is the author of 2 well reviewed books that talk about The Amazon Way. His first book chronicled the 14 leadership principles that are central to Amazon’s overall culture and philosophy. Principle 1 deals with obsessing over the customer, which is appropriate given our event focus on service and customer journeys. We wont give away the 13 other principles, but they will provide a great roadmap for service leaders who are looking to inject a greater level of customer-centricity into their businesses.

If you can’t wait till September, here is a short preview.

When Will John be Speaking?

John will kick things off on Day 2 (Sept 12, 2017) at approximately 8:30am Central. Day 2 of our event focuses on customer-centricity and customer journeys and is supported by Day 1 (Operational Journeys) and Day 3 (Commercial Journeys). Attendees to the session will also receive a copy of John’s book The Amazon Way: 14 Leadership Principles Behind the World’s Most Disruptive Company. These books are being made with the support of our Sponsor Plus Partner ClickSoftware. John will also be available to sign a few copies of his book.

How Can I Join the Symposium to Hear John Speak?

To learn more about The Service Council’s 6th Smarter Services Symposium, please visit our event page at www.servicecouncil.com/symposium2017. If you need further information, please feel free to contact our team below.

For Attendance Inquiries: Ray Morley, Director of Member Success, rm@servicecouncil.com, 603-289-6492
For Speaking Inquiries: Sumair Dutta, Chief Customer Officer, sd@servicecouncil.com, 262-649-8721
For Sponsorship or Other Inquiries: John Carroll, Chief Executive Officer, jtc@servicecouncil.com, 617-717-8300

Unable to make the Symposium this year, but would like to stay in the loop of what’s discussed? Then feel free to save your seat for our post-event webcast (September 21 at 11am Eastern) here.

IFS Expands its Service Management Capabilities, Enters the Customer Engagement Game

By Sumair Dutta | News | No Comments

Today, IFS (a member of The Service Council) announced the acquisition of mplsystems Limited (mplsystems) and Field Service Management Limited. (See Press Release). Both acquisitions are intended to strengthen the Enterprise Service Management and Field Service Management capabilities of IFS.

In this blog, we’ll speak more of the ramifications of the mplsystems purchase. Field Service Management Limited is a current reseller and implementation partner of IFS in the UK and this acqui-hire is intended to bring FSM implementation experience in house and to strengthen IFS’s implementation and professional services teams.

The acquisition of mplsystems is interesting as it brings new functionality to the IFS service management stack. While there is minor overlap of field service capabilities between mplsystems and IFS, there is major additive functionality afforded via mplsystem’s focus on the omni-channel customer engagement center. In addition to having the staple tools for call handling, email management, social media integration, and workforce management, mplsystems’s claim to fame is in the simplicity of its solution and the ability for customer organizations to provide agents with a simple desktop of relevant customer interactions to resolve customer inquiries. IFS also informs us that mplsystems is investing heavily in Artificial Intelligence in order to:

  1. Improve the contextual relevance of customer information available to service agents when interacting with a customer
  2. Leverage natural language processing capabilities to enable customers to develop service assistants or ‘bots’

This is an interesting move for IFS as previous service acquisitions have focused primarily on the field service and asset management, a natural extension of the core ERP and EAM solutions delivered by IFS. With this, the ideal customer has always been and continues to remain a manufacturing organization that has assets in the field that need to be repaired, replaced, or maintained. In terms of functionality, customer engagement has not been a traditional focus or solution area addressed primarily because it hasn’t been a top priority for manufacturers globally. Most manufacturers care about uptime, efficiency, and productivity in their asset-oriented service models and IFS’s solution was built to offer those capabilities. As a result, customer engagement was typically managed by the customer’s CRM of choice.

That said, manufacturing organizations are changing, and so is IFS. IFS’s move from traditional field service into customer engagement is in the opposite direction of moves made by traditional CRM providers such as Salesforce and Microsoft. These providers have recently taken a keener interest in expanding the field service capabilities of their CRM solutions and in marketing towards a more integrated service management suite. These organizations feel an increasing amount of pressure from customers and prospects to bring the likes of customer engagement, customer support, and field service management together to reduce the burden and complexity of piecing together multiple solutions while ensuring the delivery of a more integrated experience to their customers’ customers.

Our research of service and manufacturing companies continues to show the greater interest in customer experience management (Figure 1, from TSC’s 2017 benchmark of service leadership and strategy). In addition to improving customer listening and voice of the customer activities, CEM initiatives are focused on improving the ease with which customers have access to service, support, and pertinent information.
Leadership 2017 Initiatives

In late 2016 research on customer experience management, the following were the primary objectives of customer experience initiatives at service organizations.

  1. Reducing hold and wait times at time of contact
  2. Connecting customers with the most appropriate service agent on contact
  3. Consistently listening to customers (outside of VoC)
  4. Making it easier for customers to find pertinent information

The following were prioritized outcomes of CEM initiatives:

  1. Improving customer visibility into the status of service events
  2. Ensuring customer communications are carried over regardless of channel
  3. Improving notifications for customers around a service event
  4. Making it easier for customers to connect with the service organization

In field service management, there is an increasing focus on the experience delivered via field service resources (Figure 2 – From TSC’s 2017 Field Service Management Benchmark). While there continues to be a consistent focus on efficiency and effectiveness, there is an increasing amount of attention being paid to the field service experience. Call it FSEM – field service experience management. As in the case of the CEM initiatives identified above, the intent of FSEM is to provide customers with greater access to information and with more control over their field service events.
Field Service 2017 Initiatives
At our 2016 Smarter Services Symposium (2017 event page), every single session had a reference to how the Amazon or Uber-effect was impacting customer expectations. These statements were being made not only by retail or transportation businesses, but even by those in the areas of industrial manufacturing, facilities management, or medical device manufacturing. Organizations are no longer competing against their traditional foes for customer mindshare, they are competing with the likes of Uber and Amazon in the delivery of the best customer experience. In a world where customers can choose lower cost service providers, the customer experience delivered becomes a vital differentiator for service and manufacturing organizations. In our opinion, IFS’s move to bring in mplsystems is a recognition of this trend and a step in the right direction.

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