Perspective Archives - The Service Council

Predictive Service is Just Part of a Proactive Support Strategy

By Sumair Dutta | Perspective | No Comments

In organizations that manufacture or service equipment, there is a great push towards predictive service outcomes. With the help of more detailed data, organizations have a greater confidence in being able to predict part or equipment failure leading to a corrective, or predictive, service action.

Most equipment-centric organizations are and should be moving towards this predictive model. Yet, building and operationally executing on a predictive model is one thing, managing the internal and external change that comes with a transformed model is another. Most organizations haven’t figured this out yet. I’ve also begun to observe that organizations seem to equate predictive service with proactive service. To me, this seems inaccurate. Predictive service is and should be part of a proactive service strategy, but isn’t the only component. Desired outcomes for the product and outcomes for the customer are not always the same. Let me explain by sharing three examples of proactive initiatives being spearheaded by organizations in our community.

Proactive Escalation Management

HPE’s Rusty Walther, the VP of Global Escalation Management and a member of The Service Council’s Advisory Board, claims that no one calls him when they’re having a good day. If Walther is on the phone, something has gone wrong and it’s up to his global escalations team at HPE to react and respond to make sure that major issues are triaged and handled appropriately. However, Rusty and his team are now leveraging data to begin to identify future escalations before they happen. With the aid of an internally developed Customer Health Index (based on things that have happened) and a Customer Impact Score (things that are going to happen – updates, alerts etc.) the Global escalation team can isolate those customers that might have future service or business escalations 6 months prior to occurrence. Armed with this insight, dedicated account managers can reach out to and work with the accounts to prevent a future situation. Best of all, now the Customer’s good day is HPE’s good day.

Proactive Communication and Installed Base 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 was Steve Evans from Hayward Gordon, a manufacturer of industrial pumps and mixers, and Mandar Parikh, VP of Product at Entytle, who has developed an Aftermarket Engagement Platform for manufacturers. Note: Entytle is a TSC partner. Hayward Gordon was looking for an aftermarket revenue boost due to a slowing product market (mining, oil and gas). Therefore, the organization decided to embark on a proactive listening and communication campaign with the aid of the solution provided by Entytle, to identify how its customers were using their products and services. Hayward Gordon prioritized customer outreach to those that owned specific pumps with high-value (high cost of failure) parts. In speaking to these customers, the organization identified numerous sales and account management opportunities tied to service contracts and service parts that helped revenue fortunes but also drove value for customers.

Proactive Quality Control

Not every predicted product failure can be rectified. It might be too expensive to do so or the value of the replacement or predictive action might not warrant the investment in time and labor. This is true for organizations supporting a high-volume of non-complex products or equipment. That said, the analysis of fault codes, part usage data, and repair procedures, can enable organizations to identify and isolate product or part quality issues. The proper recognition of these issues can enable the service organization to:

  • Proactively communicate with its customers
  • Prevent issues from occurring in future product releases

Several organizations in our community leverage this closed loop process to improve product quality and to enhance service outcomes.

The examples above highlight proactive approaches to issue avoidance, to customer communication, and to value generation. While predictive failure information can support the approaches above, it is only a piece of an overall proactive customer management plan.

We’re going to be spending more time analyzing the components of a proactive service strategy in the coming months via research, interviews, and more. If interested in sharing your perspective, please connect with me directly at sd@servicecouncil.com. If you are interested in becoming a research panelist for our proactive research survey (Jan 2018), feel free to contact me directly or to align yourself with our Leadership & Strategy research panel here.

The Agile Field Service Workforce

By Sumair Dutta | Perspective | No Comments

No, this is not a blog about an exercise or stretching regime to attain an agile field service workforce. Its more of a discussion about planning for the future field service workforce. In our opinion (as The Service Council) the time is right for service leaders to rethink the field service workforce of the future given the growing options available for work distribution and workforce selection.

Agile, as a methodology, is primarily applied to software development and delivery. It is also being used by several organizations in product development and research. The first principle of the Agile manifesto is to ‘satisfy the customer through early and continuous delivery of valuable software.’ While not all the principles of the Agile methodology are applicable to workforce planning and development, the focus on customer-centricity and responsiveness are transferable.

Field service, as a profession, continues to face disruption from enhancements in automation. While service demand for manual field service work continues to remain high and will likely remain high for the short-term, investments in technology are being driven to reduce the need for manual field service intervention or to enhance the productivity of the currently employed workforce. As the current field service workforce ages and retires, service leaders are increasingly looking to automation to replace field work hours before making the decision to hire net new workers.

Where manual intervention is necessary, field service leaders now have an increasing number of workforce options to meet service needs. This becomes extremely pertinent when workforce demand is seasonal or even unpredictable. Being able to scale up or scale down in a short period of time is something that many field service leaders are looking for in the workforce of the future. The options available fall under three major categories:

  • Employee workforce – Full-time field service employees
  • Partner workforce – Authorized service providers, dealers, distributors
  • Extended workforce – Contractors, freelancers, crowdsourcing

To manage the work allocated to these various types of workforces, or to the overall blended workforce, it is extremely vital to best align the type of work with the type of workforce. For work that requires a great deal of skill, technical competence, and training, it might be best to develop a dedicated full-time workforce. Similar work might also be distributed to authorized third-parties in regions and areas where full-time workforce is not available. The extended workforce really comes into play where there is a greater volume of repeatable and ‘simpler’ work that does not require a high degree of training or extremely high degree of technical competence. Other factors must also be considered when aligning work, such as customer importance, customer affinity for service partner, contractual obligations, and more.

From a workforce supply perspective, more workers are considering freelance models as a primary way to work, or to supplement primary income. According to a 2016 study commissioned by Upwork and the Freelancers Union, up to 35% of the total US working population (or 55 million people) is currently choosing to freelance. Agility and flexibility is a concept desired by both employers and employees. And freelancing isn’t just for the new millennial workforce. Many older workers are looking at a freelance model to continue working and supporting their past employers during retirement.

In field service, a blended workforce model will likely be the most flexible path afforded to service leaders as they navigate workforce retirement, automation investment, and evolving customer needs. To maintain a high quality of work, steps need to be taken to ensure that the right type of work is matched with the right type of worker. I’ll be discussing this topic on a webcast hosted by our partner ClickSoftware on Dec 13. If interested in hearing more, please feel free to join (Registration required).

E: sd@servicecouncil.com
Tw: @suma1r

Looking for the Next Great Technology in Field Service, Let’s Not Forget About Mobile.

By Sumair Dutta | Perspective | No Comments

Augmented Reality (AR), Artificial Intelligence (AI), and the Internet of Things (IoT) are getting all the love on future technology watch lists. And they should – every organization should have a strategy around these technologies and their impact on business process, organization structure, and customer experience. This is true of manufacturers and others in the pursuit of field service excellence. However, I continue to believe that the most transformative technology for field service organizations in 2018 will continue to be mobile. Mobile can be augmented by some of the capabilities of the other technology systems, but mobile is also essential to enhancing the value of these other tools. Here’s why I believe that mobile remains untapped and must remain on the technology watch list:

Power to the Field

Three out of four field service organizations polled by The Service Council (TSC) have empowered their field agents with mobile devices and tools. I would argue that, most of these investments have been made to eliminate paperwork with the automation of work orders, billing, parts management and more. While this does enhance productivity, there is a lot more that can be done to truly empower field technicians. In a truly mobile system, most of the basic work order and other information should already be pre-filled or easy to fill with the aid of audio or video (enter AI). I have yet to see a majority of organizations actually look to leverage mobile to improve the field technician’s experience via the reduction of redundant form filling (even on a mobile device) or by making it easier to find information. We are just scratching the surface of exposing knowledge, expertise, and collaborative capabilities to field service technicians.

The Mobile Learning Platform

We think AR will significantly disrupt learning and training in the long run, but content on mobile devices will get there first. Almost every organization that we speak to is looking to develop on-demand learning tools that technicians can access on their mobile devices. These tools can be job or task-specific or they can be linked to broader career development objectives and goals. Mobile also allows technicians to record videos of service procedures and share these with the technician community. User-driven content is becoming a sought-after medium as it promotes service resolutions while also encouraging an interest in learning. In the remote world of field service, user-driven content can also help field service technicians feel connected to their broader field service team which develops camaraderie and enhances employee engagement.

The Mobile Customer

In our 2017 trends research, service leaders prioritized the need to improve the customer experience delivered via their contact center and field service teams. In field service, an improved customer experience refers to:

  • For service events. Ease of appointment setting, visibility into technician and repair status, proper billing and invoicing.
  • For the ongoing relationship. Better visibility into asset performance and easy access to self-service (account-related) or self-help (product-related) information.

Organizations, especially those that are more industrial in nature, have just begun to look at self-service capabilities for their customers especially since they recognize the cost and revenue benefits of extending these capabilities.

Data Points

This is the most underrated benefit of mobile. Organizations often believe that they need real-time (and always on) data collection to build predictive models or to feed machine learning systems. The problem is that real-time performance data is hard to get. Even with better connectivity and cheaper sensors, it is still challenging to capture real-time data. In the interim, organizations have the ability to use mobile technology to track every service need and corresponding resolution scenario (parts, skills, knowledge used). All of this failure and resolution information can be used to develop predictive service models. It can also be used to build forecasting models to service parts or to prioritize knowledge and training investments to ensure that the relevant resources are easily available for those who need them.

I believe that AI, AR, and IoT will be transformational in field service. I just think that we have yet to fully experience the transformation yielded via mobile.

I recently spoke on a webinar regarding our research on the four technology areas and their potential progress in field service in 2018. This webinar was hosted by our partners Field Technologies Online and Astea (listen on-demand). I’m happy to debate and discuss the mobile topic further, please feel free to ping me below.

Sumair Dutta
E: sd@servicecouncil.com
Tw: @suma1r

3 Trends I Didn’t Expect to See – Service Parts Leaders Discuss 3D Printing

By Aly Pinder | Perspective | No Comments

In August 2017, I felt like I was able to prove that the case around 3D printing for service parts management had been made (post here). But I may have been a bit premature in my assessment.

As noted in my earlier post on the topic, several organizations such as Hewlett-Packard, NASA, the US Navy, and the US Coast Guard have displayed the real-world efficacy of 3D printed service parts. However, in a recent research survey of service parts executives, early results showed that less than half could foresee their organizations using the technology within the next 5 years, let alone have a pilot in place in 2018! This number, though taken from an initial sample, was surprising to me as these service leaders noted a number of disruptive challenges facing their service parts businesses which seem ripe for 3D printing to help solve.

Chart – Most Disruptive Challenges Facing Service Parts Leaders in Next 12 Months

TSCData-2017-P-3DPSPM-Figure1-Challenges

As listed in the above chart, service leaders are trying to navigate a world which is unpredictable, costlier, and more demanding. So why aren’t more service organizations and manufacturers kicking the tires on 3D printing or at least thinking this will be an option for them to improve customer service, decrease the cost of moving parts across a complex service network, or mitigate the uncertainty of fluctuations in future service needs. Three lessons jumped out at me as I looked through the data from the service parts leaders who chose to share their thoughts on the topic –

1- A reduction in inventory is not necessarily the driving factor for an investment in 3D printing. Service parts executives noted that the reason they would explore an investment in 3D printing was to Improve responsiveness to customers and increase satisfaction levels. So, in thinking about what might drive a decision to invest in this technology which as noted by our early results may be cost prohibitive, the cheaper option is to prioritize incremental improvements in the current resources to support parts movement across the network (i.e., mobile visibility in to parts available, better routes to get to the problem faster, better triage and diagnosis). The leap into the future of 3D printing still remains too much for these parts leaders to bite off on when other fixes are more tangible and cost-effective.

2- Solutions still aren’t business ready, at least in service. More than 80% of our initial sample of service parts leaders either felt solutions weren’t ready or they didn’t quite know yet. That comes in stark contrast to the marketing materials and excitement displayed regarding the topic. The service community often takes a wait and see approach to new technologies. The investments can be too large, the time to deploy too long, and the risk of failure too high for many service organizations to jump into new endeavors that have yet to be proven out. We still see organizations managing a field team from a whiteboard or spreadsheet. To be business-ready, these service parts leaders expressed concerns both about the technology (i.e., quality of printed materials, cost) but also about their internal capabilities to support such an investment. The latter is a challenge that won’t be easy to fix quickly and takes a strategic vision from service leadership to cross.

3- The problems 3D printing solves aren’t top of the list of critical challenges for service parts leaders. When looking at the barriers noted by this initial sample of service parts leaders to investment, I expected that service leaders would state the technology is too expensive or they didn’t have the resources to execute (which they listed). But I didn’t expect to see that a number of service leaders noted that they didn’t think this investment would actually solve a problem they felt they currently had. For the technology to gain traction it must solve problems that are top of mind for the service parts leader, otherwise, 3D printers will be relegated to a piece of cool technology and not become a priority when service parts leaders allocate budget around their key initiatives.

The exuberance of tech geeks, marketers, and analysts like myself regarding the technology of 3D printing can’t be overstated. The promise and the value seem to be there. But as noted above and in recent data, this initial sample of service leaders still struggle with making the connection between promise and value for today’s service parts organization AND gaining the necessary momentum to bite off on the investment. To close this gap, I think service parts leaders need to further explore the technology, the price of 3D printing solutions need to come down a bit, quality of printed parts has to be proven, and the market must communicate how 3D printing solves the specific pain points of the service parts leader and technology buyer. But despite the skepticism and numerous hurdles to increased investment, the interest in the subject continues to be high amongst service parts leaders and I plan to continue to gather data points and take the pulse of the market. So stayed tuned in…

And if the topic of 3D printing for service parts management is of interest to you or a colleague, please take the 10 minutes needed to share your thoughts in this survey – https://www.research.net/r/tscp3d2017. I will be publishing some additional insights in a report later this year.

As we exit 2017 and enter another year, please do let us know topics you are interested in or you feel need more insights from The Service Council Research Team.

Don’t Outsource Service Excellence, Deliver Value with the Aid of Service Partners

By Aly Pinder | Perspective | No Comments

In field service not much changes year to year, right? Life for the field service organization is something breaks, send a technician out, fix the problem, and move on to the next work order.

But the field service world is changing. Two trends, in particular, are leading to a new world for the field service organization: the desire to deliver value-added experiences to customers and service being delivered through a partner network. Recent research from The Service Council (TSC) highlighted that a top priority for field service leaders was the desire to improve the experience being delivered to customers, as noted by 74% of respondents. This concept of an experience brings into focus a need by service organizations to engage customers beyond what is listed in a Service Level Agreement (SLA) and create on-going partnerships with the customer to ensure mutual value is received. This is where the second trend noted earlier adds a layer of complexity, this value is often delivered through a degree of separation from the manufacturer or service organization. Third party service providers, dealers, and contractors are more involved in the service experience of today. TSC research highlights that 76% of service organizations and manufacturers rely on third parties for the completion of service work. These convergent trends of customers demanding more value while manufacturers lose control of the service that is being delivered require a new look at service. This new service world depends on a number of things to work well, but to get a start I will highlight just three which stand out to me as imperative for service success:

1- Work together to create a mutually beneficial long-term plan which addresses the needs of all stakeholders. As noted earlier, with three-fourths of OEMs and service organizations working with partners to deliver service, there is a need to ensure they work with their partner network to create a strategy which incorporates the needs and desired outcomes for all parties. Historically, the relationship between service provider and OEM was based around the installation of equipment which transferred ownership of the customer to the service company until the next piece of equipment needed to be sold to a customer. But this washing of hands by the OEM is changing as they realize the need to maintain a line of sight into the customer experience. For example, TSC field service research highlighted that the top priority for Service Champions was to improve the field service experience being delivered to customers. The interdependent partnership between the OEM, the service organization, and the customer must be built on an understanding of what the customer wants from the service experience. All three groups need to have a long-range plan in place to ensure everyone benefits from the partnership and all groups have visibility into the value being received and delivered.

2- Align the metrics and ensure visibility for all. Too often, metrics are internal facing as opposed to looking at the metrics which impact the service ecosystem (i.e., service partners, end customer, suppliers). As service networks and the number of service partners grow and transform, so should the KPIs that measure service performance. This also requires an improved focus on performance visibility across all stakeholders in areas that are most relevant to them. OEMs need visibility into the service experience being delivered and confirmation resolution has been achieved, service partners need visibility into changes or enhancements in the product, and customers need visibility into when and who will be providing resolution of the problem. This is important as in order for the manufacturer to be focused on product reliability and sales, they must have visibility into when service calls are initiated, what was the problem (i.e., factory defect, misuse), and if the customer is satisfied by the response. Without visibility across the network to performance, the OEM may be blind-sided when they look to sell the next piece of equipment, or the service organization may be overtaxed by a spike in services calls as they were unaware of a defect.

3- Make sure the end customer knows who to call when something goes wrong. As service partner relationships evolve, often the name on the equipment or product is not the name on the van that shows up to fix it when it breaks. Regardless of service provider choice, the end customer should have a seamless experience when requesting or needing service as the customer doesn’t really care who shows up to fix the problem. Delivering a seamless experience that is aligned with the OEM’s service brand is difficult to accomplish if integrations between systems and process flows are disjointed.

As we continue to see more manufacturers leverage service partners for the execution of service to the end customer, the attention paid to this service ecosystem will only grow and become more crucial to the shared success of all groups. The relationship between a manufacturer and its service partners is not something to be considered insignificant or trivial. These parties must work together to create a sustained value position to the end customer. Otherwise, they are bound to only see the short-term gains and miss the longer-range impact to growth, their business, and success.

Digital Transformation, Customer Experience, and GDPR – Notes from our European Research Advisory Board

By Sumair Dutta | Perspective | No Comments

We were extremely pleased to launch our European Research Advisory Board earlier this year. Our members include leaders from organizations such as BioTek, Canon, Fujitsu, Konica Minolta, Leica Microsystems, LiuGong Europe, Honeywell, IMAX Corporation, Ortho-Clinical Diagnostics, Schneider Electric, and Vitec.

On Oct 5 2017, we hosted our quarterly conversation with several board leaders and the following topics were top of mind.

Global Consistency

Large, global organizations are always looking for that fine balance between global governance and local execution. This is vital in ensuring that best practices are shared across geographies while local requirements and needs are prioritized. With multiple language and cultural preferences in compact geographic area (not accounting for Russia), Europe presents a standardization problem for many organizations operating across the region. Yet, there is an increasing focus from organizations to standardize primarily focusing on product portfolio, product pricing, and contractual commitments across the region.

Digital Transformation

While investments continue to be made in the development of connected products and services, organizations are heavily reviewing what can be done with the aid of connected data. Internally, the focus continues to remain on using connectivity to develop predictive and responsive service models, but we see more organizations looking to build new products and services on the foundation of connected assets. Externally the focus remains on using connection to enhance the customer experience delivered to all levels of service customers, with the intent of driving long-term customer commitment.

Customer Experience

Our 2017 leadership and strategy research indicates a greater focus on customer experience from organizations that have traditionally been very operationally-oriented. For most of the organizations on our European Advisory Board, customer-centricity is a key component of their 2017 and 2018 business strategies. The desire now is to convert strategy into action and to measurably enhance customer journeys and overall experience. Immediate or short-term customer experience actions are focused on:

  • Understanding and meeting customer needs (both expressed and unexpressed)
  • Improving ease and effort of interaction, primarily via online services or self-support.
  • Establishing a focus on consistency of experience, from front-line to back office to self-service.

GDPR on The Mind

Our conversation also delved into the upcoming enforcement of General Data Protection Regulation (GDPR and its counterpart the Data Protection Bill in the UK) in the EU on May 25, 2018 and the impact of that on overall businesses. Service leaders on our Advisory Board had varying levels of involvement in GDPR preparations but noted that the impact could be significant. Responses were mostly focused on:

Data Privacy Audits are Necessary

For those organizations with a large portfolio of service interactions, it is vital to perform business process audits (kick the tires) to determine which areas of security, data management, and privacy need to be strengthened. In some instances, the use of cloud-based software tools raised the question of where customer data is/would be
stored to ensure appropriate attention to the new regulations.

Initiatives are Led by HR and IT, but Service Does Touch the Customer

At most organizations, GDPR preparation paths were being led by IT (security, governance, data management) and HR (training, documentation). Yet, there was wide recognition of the role that service plays in accessing, storing, and updating customer data, and the potential liability assigned to poor customer data management.

Front-Line Agents Must Pay Attention to Process

As part of current (or planned) audits, there was a desire from leaders to ensure that front-line service professionals, especially field service agents, were trained and updated on the importance of securing customer data and in taking the necessary steps to ensure that customer data was protected and secure.

Compliance Already in Place

Many organizations indicated that their internal data security and privacy standards already met or surpassed those mandated by GDPR and that this initiative was more of a refresher to ensure attention and compliance across the organization.

At the end of November, we’ll get to spend some more time with our Advisory Board and will dive into topics around artificial intelligence, 3D printing, and 2018 business growth. If interested in joining our European Research Advisory Board, please contact:

Aly Pinder, Jr.
Director of Research
E: ap@servicecouncil.com

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.

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