What’s in Store at Field Service USA 2018?

Location for Field Service USA 2018

This month I interview Sara Mueller, Executive Program Director, Field Service Events at Worldwide Business Research (WBR) about challenges and opportunities facing the Field Services Industry, and why Field Service executives should attend Field Service USA 2018 in Palm Desert, California from April 17-20, 2018.

BLUMBERG: What are the Biggest challenges in the Field service industry?

MUELLER: In talking with our attendees, speakers, and people who I speak to when researching topics for our conference, I’ve found that one of the challenges that field services executives have is finding ways to do more with less.   Basically, they want to leverage technology to make things faster and efficient.   The challenge for our conference participants is deciding where to invest by determining which technologies will move the needle on service.

BLUMBERG: In your opinion, what is the most important trend in Field Service?

MUELLER: By far, its “Next Generation IoT”!   For leading edge organizations who have been using IoT for years and years, the question has now become “What do we do with all the data?”  Field Service companies are now using data to make better business decisions about Field Service operations. The conversation has moved onto the topic of using Artificial Intelligence in predictive maintenance scenarios and reducing the dependency on Field Service engineers.

BLUMBERG: One of the most anticipated annual events in Field Service is Field Service USA.  What is it and why should people attend?

MUELLER: Field Service USA is an event created by World Business Research (WBR) in 2003.  It brings together cross industry service & support executives to network, benchmark, and share best practices and strategies for advancing service operations.  The event features big forward-looking keynote speakers as well as smaller group, niche discussions so that attendees can learn and network from the wealth of people who will be at the conference.

BLUMBERG: Field Service USA seems like a more intimate event than the large industry conferences and exhibitions with hundreds of vendors and thousands of participants that business executives often attend.  Was this format created by design?

MUELLER: While we have experienced growth in the number of participants and always looking for more, WBR events have always been a small intimate gathering.  We are interested in building relationships among  executive director positions and above.  Our objective is to have the appropriate number of participants so it’s easier for them to talk to their peers.  We strive to have a balance of peer to peer exchange with participation from the best of the best vendors at our conference.

BLUMBERG: Can you provide me with an overview of they key topics that will be presented at Field Service USA 2018?


  1. Transitioning to XaaS – selling a product to selling an outcome or service; it needs to be a company-wide, cultural shift
  2. Using AI to move toward autonomous service
  3. Leveraging big data
  4. Generating more service revenue
  5. Team building – recruiting, retaining, and engagement. The higher level of employee engagement the higher levels of customer satisfaction.

BLUMBERG: What is going to be different about Field Service USA this year?

MUELLER: We attempt to build on the success of previous years by keeping what works and getting ride of what doesn’t.  This year we will have more talks around to topics of Machine Learning, AI, and AR.  We are also adding discussions on the topic of service revenue and team building, and this year we’ve added “industry board rooms” which are industry focused board rooms, on the first afternoon of the main day of the conference.  Of course, we are still offering the same interactive formats that get people talking to people who have been in their shoes before. We are also keeping things fresh by bringing in new speakers from Otis Elevator, Robert Bosch, Nokia, BP, Comcast Business, Haier America, Dish Network, Jacobs Engineering, and NCR to name a few.

BLUMBERG: Why did you choose to make these changes?

MUELLER: This event has grown. Its the largest event that WBR produces.  We want to give people the big conference feeling by having key notes but will also want to bring people together talking.  I found that when I was doing my research, every business executives brought up some aspect of team building, recruiting, training, and employee engagement. Given the fact the service revenue generation is one of our main themes and more of our attendees are responsible for this, we’ve added it to our agenda. It ties back to the shift in the business model from cost center to profit center.   We see the attendees are positioning themselves that way (e.g., as profit centers) and more and more of our attendees are focused on marketing issues.

BLUMBERG: What is one thing that people will miss if they do not attend Field Service USA this year?

MUELLER: We all get so caught up in the day to day of our jobs and group think within our own companies that we lose sight of the big picture.  Its good to get other perspectives.  People attending Field Service USA consistently have been leaders in the markets they serve, and I think its because they attend.

BLUMBERG: If someone needed come up with one reason why to attend, what should it be?

MUELLER: People will benefit no matter what their objective is for the next 12 months to 3 to 5 years.  We have small group discussions and lots of carefully planned out network events and parties.  There are lots of ways to build relationships, have fun, network and find new answers.

Does Field Service USA 2018  sounds like an event you would like to attend? Register using code: FS18BLUM to instantly save 20%* on your ticket! Book online at www.fieldserviceusa.com or call 1-888-482-6012.

Service Contract Sales Secrets: Q&A With Michael Blumberg

This article was originally posted on Field Service Digital as in interview between Derek Korte and Michael Blumberg.  Michael will be hosting a FREE Webinar on February 28: Key Strategies for Increasing Extended Warranty Revenue. Click here to register for this event. 

Most service organizations know that long-term service contracts are one of the holy-grails of service revenue and profitability. Yet, despite their importance, many organization don’t know how to effectively market and sell them. Michael Blumberg, president of Blumberg Advisory Group, recently released new industry research with some key insights for service executives on this important topic. We sat down with Michael to ask a few questions about his findings.

What surprises you most from the survey?

The top take away is that the configuration of extended warranty and extended service programs has a tremendous influence on the sale of these programs. In other words, the length of coverage, level of customization, processes engaged and resources employed in delivering the warranty and entitlement levels offered play a key role in driving sales. This is an “eye-opener” because many companies have the view that a warranty is a warranty. However, our findings suggest that the more distinctions that can be made about the program, as defined through the configuration, the more effective the company will be at selling it.

Is there anything more important to service profitability than contract attachment and renewal rates?

Some field service executives may argue that KPIs associated with service costs and productivity such a first-time fix, cost per service event, mean time to repair, etc. are more important to service profitability. However, without service revenue there can be no profits at all. Contract attachment and renewal rates are the KPIs which measure how well a company is doing with respect to securing this revenue. The truth is that service contracts can be very profitable in and of themselves. One reason is because they provide an annuity for the service provider in the form of a recurring revenue stream. The second reason is because a sizable percentage customers who purchase a service contract require very little service or no service at all. This means the service provider doesn’t incur significant costs in servicing that customer.

How do companies successfully market and sell service contracts to customers? After all, they do little good if customers don’t buy them.

Most companies rely on sales aids (e.g. brochures) and direct sales. Usually, these activities occur at the product point of purchase. However, companies who continue to sell service contracts after the product sale are likely to generate additional service revenue. Other sales and marketing tactics which have proven to be effective include customer testimonials, reputation management, telemarketing (i.e., outbound sales), public relations (e.g., press releases, article placement, etc.) and analyst reviews.

You identify 50 percent attachment rate and 75 percent renewal rates as best in class. Why are so few service organizations able to achieve those levels?

First, service organizations need to adopt the right mind set about extended warranty and extended service programs. They must understand that service is separate, distinct, and unique from products. This means that service leaders must place as much time and effort into configuring, marketing, and selling service contracts as their counterparts in the product organization place on designing, marketing and selling products. After all, service won’t sell itself. Just because the customer owns the product doesn’t guarantee they’ll buy the service. Second, the service organization must have the right systems and processes in place to market and sell service contracts. For example, processes and systems that facilitate a company’s ability to configure, price, and quote customized service contracts. It is astonishing to learn that approximately, one-third of the survey respondents utilize spreadsheets to perform these functions.

How do you envision new technologies (e.g. IoT) impacting traditional service contracts — and how will smaller firms keep pace?

These technologies will either make selling service contracts a dream or a nightmare for service providers. While recent technologies like IoT, AI, and big data will make it possible for companies to deliver outcomes, it is the service contract that defines what exactly the outcome will be. It provides the terms and conditions, the hours of coverage, the level of availability, the resources provided, and the processes engaged in delivering the agreed upon outcome to the customer. In many ways, selling an outcome based contact is no different than a traditional service contract. That’s why companies of all sizes need to become proficient at configuring, marketing, selling, and managing service contracts. Gaining mastery over this function is how smaller firms can keep pace.

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What Smarketing Looks Like

(And Why Your Company Needs to Adopt It)

This article is reposted with permission from Tenfold Blog (www.tenfold.com).

Smarketing is a new buzz word in the world of sales and marketing. Actually, it’s a contraction of sales & marketing. Hubspot defines smarketing as: “…the alignment between your sales and marketing teams created through frequent and direct communication between the two.”

Since a company’s end goal is always the same, it makes perfect sense to integrate sales and marketing processes in the pursuit of those end goals. Establishing this common ground makes the process of acquiring leads and converting them a lot smoother. It also makes more sense for a consumer to undergo a more cohesive experience. A disjointed experience between sales and marketing can lead to consumer confusion and lost opportunities. A consumer should never feel like they’re being tossed around.

Instead of treating sales and marketing teams like two competing units, a company that takes a cooperative approach makes them all part of the same team. Bringing them together as allies will positively impact a company’s bottom line as well. In fact, some companies that have joined their sales and marketing forces reported a 20% revenue growth.

So, what does smarketing look like within a company?

It starts with a framework

First, a company’s sales and marketing teams need to be on the same page regarding their target market and what they consider a warm lead. They should also know what their respective objectives are. How many leads should marketing be bringing in? How fast should sales follow up with a lead? How many times should they follow up? Making sure everyone is aligned makes the process so much more straightforward. It’s like a team playing together on a  soccer field; the infield and the outfield both know when and where to send the ball. A clear sales and marketing strategy is vital.

Using common terminology

In addition to functioning within the same framework, a company’s sales and marketing alignment depends on using common terminology for the entire funnel process. Having set terms and terminology will not only make the discourse between departments clearer, it will also make the process more streamlined for the customer. If sales is using one set of terminology and marketing is using another, they risk sending mixed messages to the consumer.

Frequent sales and marketing meetings

Saying that a company’s sales and marketing teams work together sounds nice in theory, but it must also be put into practice. Regular meetings provide the physical coming together of the sales and marketing teams and focusing on a common purpose. Sales and marketing management should also work closely together to ensure objectives are being met or to establish those objectives.

The purpose of the meetings is to track their collective progress and hone the smarketing process. Bringing ideas, resources, and suggestions together in meetings can bolster the entire process. Bringing the teams together face-to-face as allies reduces any antagonism, replacing it with the constructive opportunity to build on each other’s success instead.

Create boundaries

Even though the purpose of smarketing is to bring the sales and marketing teams together, there must still be delineation between their respective responsibilities. Clear boundaries must be set between where marketing ends and sales begins so intrusion can be avoided. After all, sales and marketing are two different specialties that require different skills. Employees must know what their particular roles are in a company and how they fit together to keep friction to a minimum.

Closed loop reporting

Anyone from sales or marketing should be able to tell where a particular lead is in the sales and marketing process. They should never be left wondering: “Hey whatever happened to that guy I met at that seminar in June?” They should be able to open up a program and see exactly where that guy is in the buying process. Business 2 Community recommends using both marketing automation software and CRM software to provide data access for both teams and build transparency.

Closed-loop reporting also offers more opportunities for two-way discussion and input between sales and marketing teams. They can check in with each other to enhance the process or give each other valuable customer insight. Aligning sales and marketing processes makes both sides feel they’re working towards a collective goal.

The moral?

Creating a sales-marketing alignment plan can boost a company’s bottom line by creating an opportunity to build each other up rather than tear each other down. Environments, where the sales and marketing teams are competitive rivals, don’t make much sense when the main objective is the same.

To create sales and marketing alignment, a company needs to improve the relationship and conversation between the departments. Smarketing puts sales and marketing on the same team for the benefit of the company as a whole. Now that’s smart marketing!

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What Makes Successful Digital Transformation? – Podcast

Field Service — FMS

Michael Blumberg (President & CEO of Blumberg Advisory Group) sat down with Todd Stewart of In the Know to discuss why digital transformation is one of the hottest topics within the field service space. 

Digital Transformation occurs when an organization leverages the use of  advanced technology to change the way they conducting business. By doing so, these companies can run a  more responsive business operation and gain greater market share.

This is especially true in the Field Service Industry. One example of this positive impact is the use of Internet of Things (IoT) to remotely monitor equipment performance. By continuously monitoring sensors related to a particular piece of machinery, a Field Service Organization(FSO) can predict when service is needed or know as soon as there is a failure. At that point, the FSO can contact the customer to provide information to fix the problem, analyze what personnel or parts need to be sent onsite to resolve the issue, or provide information to the customer to avoid the impending problem all together.

Learn more about Digital Transformation by listening to this podcast.



Sales and The Field Service Engineer

Questions from Kris Oldland, Publisher of Field Service News

The following is a compilation of a 4 part series from Field Service News called ‘The Big Discussion’ All four questions with the answers from Michael Blumberg appear here to give you a clear picture on his views of the role of Field Service Engineers in sales to existing customers.

“In the Big Discussion we will take one topic, bring together three leading experts on that topic and put four key questions to them to help us better understand its potential impact on the field service sector…”

It is often said service technicians are the greatest salesmen – what are your views on this?

Service technicians bring a perspective and outlook that makes them great at sales in certain situations. For example, where the sale solves a critical problem for the customer.

Basically, customers appreciate the fact that service technicians are problem solvers and place the customer’s need first. As a result, the service technician has trust and credibility with the customer.

In turn, the customer is highly likely to act on the service technician’s recommendations. Sometimes, the only way a technician can solve the customer’s problem is by having them buy something new like a spare part, new piece of equipment, or value-added service offering.

In these situations, the sale is not viewed as a sale at all by the customer but merely as an attempt by the technician to solve the customer’s problem

Is there a difference between selling service and selling products?

Yes, there is an enormous difference.

Selling products requires the salesperson to focus on the form, fit, and function of the product and how it meets the customer’s needs. Selling products is about selling the tangible.

Selling services requires the salesperson to focus on how the service can help the customer solve a problem, improve their situation, or achieve a better outcome.

More importantly, it is about selling the intangible.

Is incentivising service technicians to “sell” opening up new revenue streams or putting their “trusted advisor” status at risk?

Technicians represent a ready and available channel for generating incremental service revenues.

After all, they are at the customer site almost every day.

However, service technicians may become over-zealous or pushy about selling, and jeopardize their “trusted advice” status, if they lack proper sales training or if their performance measurement system and company culture are too focused on sales.

What impact does the rising uptake in outcome based services have on the relationship between service and sales?

Selling outcome based services requires greater collaboration and communication between service and sales than ever before. Service needs to understand and support the solution that the sales force crafts for the customer.

The sales force needs to have a clear understanding of the capabilities of the service team to craft the right solution.

Basically, service and sales must work as a team. In addition, the service organization must be proficient at sales so they can add-on additional services to better meet outcomes as these opportunities present themselves.

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Digital Transformation Trend: Changing “Business as Usual”

The following is an excerpt from an article we wrote for XM Reality.  You can get a copy of the full article here http://resources.xmreality.com/blumberg-new-reality/

customer service

Perhaps the trend that is having the greatest influence on the adoption of AR/VR/MR platforms is not the affordability or stability of the technology but the commitment by today’s leading corporations to embrace Digital Transformation (DX). Rather than utilizing technologies simply to streamline and automate existing business processes and transactions, digital transformation means utilizing technological innovation such AR/VR/MR to change the very way business is conducted, resulting in new business models and cultures.

DX has had an overwhelmingly positive impact on the performance of companies that have pursued this strategy. In fact, in some instances it has resulted in a winner take all scenario. According to Constellation Research Founder and Principal Analyst Ray Wang, “digital leaders in almost every industry are taking 40% to 70% of the overall market share and 23% to 57% of profits. In some markets, if there are one or two major players, they are taking up to 77% of the profits”.

These findings suggest that DX could lead to a “zero-sum” game for selected field service providers. Therefore, it should come as no surprise that businesses across a wide range of industry segments are investing heavily in DX technologies. Indeed, worldwide spending on DX is estimated to approach $1.2 trillion by 2017 year-end, according to International Data Corporation, an increase of 17.8% over 2016. IDC predicts this market will continue to grow at a steady rate of 17.9% over the next three years, reaching $2.0 trillion by 2020.

Most business experts and industry pundits agree that DX investments have the greatest impact on a company’s performance when they achieve two major objectives. First, they make business operations more responsive by leveraging digitally connected product-service offerings, people, and assets. Second, they lead to innovations that transform how customers, partners, employees, and things communicate with each other. For field service organizations, the outcome of meeting these objectives incudes a more enabled workforce, enhanced customer experience, and improved overall collaboration and performance.

Clearly, AR/VR/MR technology is well suited to meet these objectives and deliver outcomes. At a macro level, it changes the way field service business is conducted, by bringing a problem to the expert rather than the other way around. As a result, it shortens the time it takes to resolve a customer’s issue and avoids the high costs associated with sending a technician to the customer site. In addition, it helps FSOs overcome resource constraints. For example, utilizing this technology, a technician at a customer site can simultaneously offer remote support to a second customer at another location. Furthermore, the technology facilitates greater collaboration and performance among technicians. A “top-gun” technician with deep domain knowledge and expertise can provide remote guidance to a less experienced, “novice” engineer. Technicians can also use annotations as part of AR sessions to overcome language barriers that may exist between people in different geographic regions. Lastly, AR/VR/MR provides an immersive experience to the customer, enhancing their experience and enabling them to be self-reliant when it comes to resolving basic issues.

In many ways, AR/VR/MR pushes the boundaries of possibilities when it comes to providing high quality and efficient services and support to end customers. By overcoming limitations, FSOs experience improved performance in the areas of first time fix, remote call resolution rates, mean time to repair, and cost per service call. While effective field service leaders have always been committed to continuously improving performance in these areas, AR/VR/MR provides the technology to make step-wise (e.g., exponential) improvements as opposed to only incremental gains.

AR/VR/MR brings additional value in its ability to positively influence and enhance customer satisfaction as well as generate new and profitable sources of revenue for FSOs. For example, many early FSO adopters have been able to monetize their investment in this technology by offering AR/VR/MR enabled remote support sessions as a value-added, fee-based service to customers. These examples clearly demonstrate why FSOs should give serious consideration to deploying an AR/VR/MR solution today.

Call Michael for a FREE 30 minute Consultation

Plan Today for an Amazing Future Tomorrow

I love this time of the year.  It’s not just because of the holiday season and the chance to spend time with friends and family.  I like this time of the year because it gives me time to reflect on the past 12 months and set goals for the next 12.   Goal setting can be daunting task for many of us.   Quite often people set goals without giving thought to the impact they have on various parts of their life.  For example, they might set a goal for one aspect of their life only to learn several months latter that while they achieved this goal other areas are suffering like their health, relationship, or finances.

You might be wondering why I am writing goal setting in a blog devoted to business issues. Why am I concerned with this topic? Why should you be concerned with it too?  The answer is that I am a big proponent of goal setting. It is required if we are going to obtain any results in our life.  More importantly, I believe that how we show up in one area of our life impacts how we show up in other areas of our life.   For example, our ability to advance in business may be directly related to our relationships at home or vice versa.

The truth is that we can design an amazing life for ourselves and “run on all cylinders” as I like to refer to the feeling of success and fulfillment in all areas of our life.   Effective goal setting, requires that we first assess each part of our life and determine where we need to achieve better results.   If our health is at a 10 and our relationships are at a 6, doesn’t it make sense to set some goals in this area rather then spending more time at the gym.

Basically, if we are going to make progress in the key areas of our life we need to head the adage …. “What you don’t measure, you can’t improve.”

If we don’t measure those areas of our life that are important, it’s hard to improve them. You must know where you are now before you can move beyond it.

That’s why I thought you might be interested in accessing this great tool from New York Times bestselling author Michael Hyatt…

The LifeScore Assessment™


This online self-assessment is easy, quick, and effective in helping you measure where you are in each domain of your life. It shows you where you’re excelling and where you should focus your improvement efforts.

But you can only get the assessment for a limited time. It’s FREE, so check it out today!


All you do is quickly rate yourself in each of life’s major domains.  You read a series of descriptive statements and pick the one that most closely aligns with where you perceive yourself to be. You then refine a bit based on your unique situation. It all adds up to your LifeScore™.

It’s simple. But I promise it will instantly show you your opportunities to grow this year.

The assessment is 100% free, but it’s only available for a few days.


If you want to improve something, start measuring it. The LifeScore Assessment™ finally gives us an easy way to do this for every area of  our lives. Here’s where to find out your number! http://bestyearever.me/a18431/2018assessment

After you’ve completed the assessment please post your score below and share with us what you’ve learned about yourself from your score.

Schedule a Free 30 Minute Consultation with Michael

Gig Economy Plays a Crucial Role in Hiring freelance Telecom Field Technician

Ramya Sri Alluri is a Marketing specialist and Staff Author at FieldEngineer.com a freelance marketplace to hire a telecom engineers.

In today’s digital world, things are more difficult than ever when you’re competing. This is especially true with the global connectedness. Luckily, however, you can benefit with the advantage of a freelance marketplace that connects you to a telecom field technician or other talent you’re looking for. Businesses are finding numerous benefits of hiring a freelance telecom field technician from a freelance marketplace, such as:

A freelance telecom field technician can save you immense costs in your business. After all, once you start bringing people in it can sky rocket to mean that your payroll outpaces other costs in your company. So to keep that in check, consider freelancers as a budget option whenever you need it.

Speed is of the utmost importance in any business. If you lag behind the competition, you’ll find that your customers are going somewhere else. This can spell disaster if you don’t do something to correct it. Benefits of hiring freelance telecom specialists also include speed: you can talk with them instantly from anywhere else in the world and cut down on time costs that would otherwise make you miss important deadlines.

It’s incredibly convenient to be able to use your phone or computer to talk with your workers. Whether you are in the office, at home, or in line for lunch, it takes a few punches on a keyboard or taps on your phone to get things running along smoothly. This kind of convenient workflow is quite priceless.

You can integrate the skills of your telecom hire with the others on your team. Some teams need various skill sets in order to achieve a complex set of directives from the top. If you feel this describes your company, then you’ll derive many benefits from using the marketplaces that connect your team together, no matter if they’re in Asia, Africa, or anywhere in between.

The worst feeling is when a client wants you to perform something for them but you can’t meet the capability. Having to say no is the worst fate of a business. If you do it too often, you’ll lose your reputation. A benefit of freelance telecom workers is they make you agile and scalable. You can add a few more man hours into the mix to bring a project in on time and under budget.

Security is of the utmost importance for any business. If data gets into the wrong hands, such as customer lists or your secret recipes of how you deliver solutions to customers, then it could spell the end for your business. Enjoy the benefits of freelance when you have them siphoned off from certain knowledge just in case of a data leak. A telecom field technician only needs to know certain variables of what they’re working on.

Hiring new workers for your company can be a pain. However, it doesn’t have to be if you follow the right advice and emulate other companies that have had success in the industry before you. So you can have the most profit with least risk by hiring on freelancers to fill in the gaps needed to make your business a wild success.

Fieldengineer.com is an innovative digital marketplace that connects you with talent all across the globe. You can log into the portal from any computer, phone, or tablet. This makes it fast and convenient to use. In addition it’s free for businesses. Features include live tracking of your engineers and freelancers, management of work orders, fast matching with talent with our AI, and special APIs so you can run your business more effectively and streamlined.

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IoT’s surprising impact on revolutionizing inventory management

Sarah Hatfield directs OnProcess Technology’s strategy for products and core service offerings, including the OPTvision platform. She brings more than 15 years of leadership expertise from previous roles in supply chain, product and program management for Comcast, Asurion and ADT.

You know disruptive technologies have reached the tipping point when non-IT pros build business plans around them. This is exactly what’s happening with IoT. Because of its ability to drive wide-ranging, game-changing improvements, IoT is starting to be used across all aspects of business operations. One of the newest, and most impactful, areas is spare parts inventory management, a key aspect of the post-sale supply chain.

Maintaining the right level of spare parts is critical. As you can probably guess, carrying excessive inventory can be prohibitively expensive. But if you have too little, you’ll slow product repairs, hurt customer experience and end up spending more money purchasing new parts for stock replenishment. The problem is, traditional best practices for managing spare parts — using time-series algorithms combined with sales forecasting, seasonality, gut instincts and simple rules of thumb to determine how many parts to stock — are woefully inaccurate because:

  • They’re static, “review-and-stock” endeavors based largely on historical demand data
  • The algorithms don’t account for variables resulting from failed parts in the field

Knowing this, many companies hedge their bets by purposefully overstocking. Others think they’re maintaining the right levels, but unknowingly overstock. In either case, they’re wasting a lot of money.

New IoT-driven inventory planning

The key to accurately stocking parts is knowing which ones are likely to fail and when they’ll need to be replaced. Some businesses have attempted to use IoT data to understand product failure impacts on inventory planning. However, most of the IoT monitoring programs are designed to respond to signal failures. Plus, IoT data collection is often haphazard and emphasizes the few pieces of equipment that are starting to fail, rather than the whole. This makes it impossible to generate a sound baseline for analyzing product performance and predicting failures — which, in turn, makes it impossible to accurately forecast spare parts needs.

The good news is there’s a new inventory planning algorithm that builds IoT-based failure data directly into the equation. Developed at Massachusetts Institute of Technology Center for Transportation and Logistics, it enables businesses to accurately forecast needs. By using this methodology and analyzing historical failure data on the entire installed base, businesses can predict the exact spare parts they’re likely to need, when and in what quantity.

The better news is that it doesn’t take a huge team to capture IoT data because not much data is needed…. Read More

Are Freelancers the Future of Field Service Staffing?

This interview by Derek Korte, editor at Field Service Digital and a senior editor at Original9 Media. It first appeared at  http://fsd.servicemax.com

Field service leaders have a lot to manage on any given day. But there’s one responsibility that’s often lost while  keeping the work orders flowing and vetting the latest technologies — talent. Sure, the IoT continues to reshape the service industry, but field service is still a people business. When something breaks, customers expect a skilled professional to show up and fix the problem quickly — hopefully the first time.

But it’s a challenge to maintain a trained, knowledgable service team. Experienced techs retire and are difficult to replace, and new technologies require new skill sets. As a result, service organizations are turning to freelancers to supplement their full-time workforce, while ensuring customers get a consistent level of service. We asked Michael Blumberg, president of Blumberg Advisory Group, to explain the most surprising takeaways from his latest research into the freelance phenomenon in field service.

You found that service organizations rely on freelance platforms to improve geographic coverage? Why did that surprise you?

I was surprised to learn that organizations are using freelance management platforms (FMS) for more than just handling a temporary surge in demand, or providing coverage in remote geographic areas. A significant percentage (61 percent) use freelancer platforms to expand their geographic coverage. They are using these platforms to facilitate strategic growth, not just to cut costs or solve a tactical problem.

You also found that organizations increasingly use freelancers to respond to emergency service requests — why?

The conventional wisdom is that freelancers are best suited to handle project work, such as installations and scheduled maintenance. Our research suggests otherwise. In fact, 53 percent of the respondents indicate they utilize freelancers to handle all types of work, including projects and emergency repairs. By relying on freelancers, service managers can ensure they have the right coverage when and where they need it.

What’s unique about a FMS is the crowdsourcing element, which leads to situations where technicians are often competing for the same service request. As a result, technicians know they have to be very responsive because their income depends on it. I’m not suggesting that company-employed technicians are lazy, but sometimes there’s no incentive to take on more calls. There’s no incentive for them to respond faster or get more calls done.

How are service managers using freelance platforms to improve recruitment and onboarding?

Even when organizations use freelance techs, whether for a long-term project or on-demand emergency work, they still have to spend time recruiting, training and onboarding those technicians. The crowdsourcing element of FMS platforms means that managers can find these techs quickly, so they can spend less time recruiting. And the digital nature of these platforms means that managers can train them, share work orders and outline what’s expected. A majority (59 percent) of companies using freelance platforms are able to recruit and hire new technicians in 14 days or fewer, while only 11 percent of non-FMS users are able to achieve this goal.

How do service managers integrate these freelancers into their regular workflows and explain service expectations?

They can be very selective about which freelancers they choose to work with, and they can request technicians who have certain qualifications and skills. Managers can also describe the procedures that the techs must follow when they go out on a call, which is something companies are already doing with full-time technicians. Lastly, some managers administer short quizzes and exams that the freelancers must pass before they’re assigned work.

Your research suggests that agility is the most important factor when deciding to use a FMS. Why?

Nearly two-thirds (64 percent) of respondents indicated that their need for agility is the number one reason why their companies turned to a variable workforce. While cost savings might be the reason why these companies considered this alternative in the first place, agility is why they continue to use it. In today’s dynamic service environment, service organizations need to respond quickly to surges in demand and constantly changing technical skill set requirements. They can’t afford to spend a lot of time staffing up to meet demand because it is likely to change quickly.

And relying on freelance platforms can also improve service productivity and quality? How?

Freelancers are often more engaged with the service organizations that hire them because they see themselves as independent contractors. They’re running their own business.

Freelancers want to demonstrate that they’re responsive and effective so they will be given more jobs. There’s also a snowball effect — the more calls freelancers take, the more income they’ll have, which creates a productivity mindset.

Are there any quality and productivity tradeoffs?

Our survey results indicate that 65 percent of companies using a FMS model have experienced improvement in field service productivity. Furthermore, first-time fix rate is 18 percent higher among top-performing FSM users than the industry average, while SLA compliance is 16 percent higher.

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