5 Barriers to Digital Transformation

Howard Tiersky is the President and Founder of FROM, The Digital Transformation Agency. He has a deep passion for digital innovation and helping each of client find success. This blog first appeared on his website.

You may be struggling to drive some sort of change, innovation, or digital transformation within your organization right now.

Why is it so hard? And what’s the secret to getting big companies to successfully transform?

There are five main barriers that large enterprises face when trying to innovate: change resistance, knowledge of customers, risk management, organizational agility and transformation vision.

Change resistance
Change is uncomfortable. Even if a change sets us up for a great future, most people won’t warm up to it quickly. To successfully drive change within an organization, create a burning platform for change so that failing to change is more painful than the change itself. Offer a compelling vision of the future once the change is complete, give people the confidence of success, and provide the opportunity to help create the change (instead of falling victim to it).

Knowledge of customers
You may think you have the answers, but how well do you actually know your customers? To incorporate your customers’ voice into your product development, you can use these five tactics:

  • Humility: Truthfully, we don’t even know ourselves that well, so it’s important to recognize that understanding someone else well enough to predict future behavior is no small feat.
  • Specificity: Figure out exactly what you need to know about your current or potential users that would make a difference to your product development. Use questions like: “What do you they like or not like about your product?” and “What are their unmet needs?”
  • Involvement: Get your whole team involved in customer research to allow the entire development process to include an understanding of the customers’ world and their current reality.
  • Iteration: One round of user testing is not enough — You need to continually study your customers to see how they’re reacting to your product and how their needs are changing.
  • 4D listening: Try to see past the surface of what your customers are saying to what they’re truly asking of you. Your customers may not be able to envision the more practical solutions that your product team conceives.

Risk management
Is it risky to transform your enterprise? Of course! The key to success is creating the expectation that innovation efforts are an iterative process. Successful innovation requires experiments, learning, persistence and, most importantly, the willingness to fail. Once you have alignment around the idea that some level of risk is necessary and appropriate, you can gain confidence from enterprise funders by envisioning the different types of risks your efforts might face and developing remediation strategies to combat those risks.

Organizational agility
As quickly as you can adapt, the digital world changes. Organizational agility is key to keeping up in the digital arena. There are five specific types of agility that are important for success in digital:

  • Sensing: This means knowing what’s going on around you so you can be aware of what actions might be required. How are customers, competitors and industry regulations changing, and what new technology exists that could impact your digital experiences?
  • Technology: Moving quickly from idea to live solution is important in supporting and growing your digital experience. Does your enterprise have technology stacks that are adaptable and easily maintained? Are your content and presentation capabilities accessible to your product owners and content managers?
  • Decision-making: Capital approval processes that take months to reach a final decision don’t work with the speed of digital. The people running your innovation projects need the autonomy and authority to make decisions on the ground-level so that they happen with the speed necessary to keep up with the digital world.
  • Strategy shifts: Embrace and expect that your innovation projects will go through a process of trial-and-error on their way to the kind of digital transformation success that you’re seeking.
  • Teaming: Despite a persistent myth, there is no one structure in which all digital work can be done by a single team of people operating under a single executive. The key to teaming agility is creating a culture with alignment across divisional silos, so that mobilization of the right people happens quickly and efficiently.

Transformation vision
Many organizations have a basic vision for growth: Optimize what already exists or expand upon current offerings. But to create a true transformation vision, one that encompasses your entire organization, you need to determine how the world is changing and how that will affect your customers’ needs. Only then can you determine what new products and services you can bring to market and the different channels you’ll need to deliver on them. You may even decide that the imminent changes will shift your focus to an entirely new set of customers! To be successful in the long-run, think in terms of transformation time so that you can get a few steps ahead.

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Driving Revenue Growth without Losing Sight of the Customers

CUSTOMER SATISFACTION

Several months ago, Derek Korte, the editor of Field Service Digital solicited my opinion for article titled “Expert Roundtable: Never Lose Sight of Customer Satisfaction”.    The basic question that Derek asked was “How do service leaders ensure the important work involved in managing a service business get done while still keeping the needs of customers involved?”  After all, Derek pointed out, Field Service leaders have a lot on their plate. They must continuously balance the need to improve the quality, productivity and efficiency of service operations with the strategic objective to drive revenue and growth; all while never losing sight of keeping customers happy.

This dilemma is a challenge facing all businesses not just Field Service.  When it comes to practical advice, Peter Drucker said it best, “the goal of any business is to get and keep customers.”  This quote provides a good lesson for Field Service leaders.  Driving revenue and growth, and maintaining customer satisfaction is not an either-or proposition.  They are one in the same.

To achieve superior outcomes in these two areas, Field Service leaders must view themselves as business owners.  They must view themselves as owners of a business franchise called “service” whether they are equity owners or not.  In other words, they must adopt an “ownership” mindset.

To succeed as business owners, Field Service leaders must first have the right “seats on the bus” otherwise known as the right functions that manage their service business.  This includes functions such as service delivery operations (i.e. dispatch, field service, parts management, etc.), accounting & finance, sales & marketing and others.  Without the right functions, the business cannot perform.

Second, Field Service leaders must make sure they have the right people in those seats. This means they must find talented people to manage these functions.  The people can be groomed from within the organization or recruited from outside.  Regardless, field service leaders must develop performance standards by which personnel must adhere.  These standards should consider the characteristics, skill sets, experience and behaviors that service personnel must possess.

Third, Field Service leader must have clear outcome of where they are heading.  If they are going to drive growth, then they must have a map to help them reach their destination.  In business, another term for a map is a strategy and/or plan.  Without a clearly defined strategy or plan to follow, a business can’t go very far.

Fourth and finally, Field Service leaders need to make sure their bus (i.e., their organization) is running efficiently. That it has a clean engine, good tires, etc. They also most make sure they have a GPS or dashboard to help them monitor their performance, the direction in which they are heading, and the speed at which they are going.  The engine, tires, etc. are a metaphor for state of the art service delivery infrastructure and related technologies that make superior service possible.  The GPS and dashboard are the Key Performance Indicators (KPIs) and operating benchmarks that help Field Service leaders keep course on their direction.

Now it’s your turn to answer the question: “How do service leaders ensure the important work involved in managing a service business get done while still keeping the needs of customers involved?”   What have you found that works and doesn’t work? If you’d like to read about other experts’ perspectives on this topic then read Derek’s online article.

Please also feel free to schedule a free strategy session with me today if you need more insight and guidance on how to improve service operations and drive revenue and growth while maintaining a high level of customer satisfaction.

Still looking for answers?

 

 

The Most Empowering Question You Can Ask

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Have you ever felt stuck when it comes to growing your service business? For example, you feel that things are stagnant or perhaps just not going as well as you’d like.  If your answer is yes, then chances are that you have been doing the same thing over and over again and expecting a different outcome.  That’s called insanity!!

You know you need to make a change but you are not exactly sure how.

All of us in business have at one time or another felt this way.  Most people in this situation ask themselves…”What should I do?”  “What should I do to get better results?”   The truth is this is a poor question to ask.  It is a poor question to ask because it is a disempowering question.

Disempowering questions seldom give us new insights or perspectives that lead to real change.  This is because our mind always tries to find a way of answering our questions. When you ask yourself “What should I do to increase service sales?” you come up with a million different answers.  One answer may be advertising, so you spend money on advertising only to find that it doesn’t help. You may again ask yourself, what should I do to increase sales, and your mind answers…”invest in Search Engine Optimization (SEO)”.  You invest in SEO, yet still you observe little or no improvement.

You continue to ask yourself the same question over and over again and get answers like do more networking, do thought leadership marketing, do price discounts . . . but still no improvement.  Soon you find yourself running around in circles doing different things. You keep doing more and more different things in hopes of getting better results but nothing happens. That’s crazy!  If you keep this up, soon you are likely to hear a small voice inside your head say “Woe is me, what should I do, I don’t know what to do, poor me!”

Poor you is right!

Can you see why asking yourself “What I can do to increase sales?” is a disempowering question?  Asking this type of question creates a vicious cycle that you have to break before it breaks you.  You can break it by learning how to ask empowering questions.  The most empowering question you need to ask and answer if you are trying to grow your service business is, “What value does my company bring to the marketplace?” In other words, what is you value proposition?

The truth is you can’t improve your sales until you are clear about the value you provide. Without a clear value proposition, spending money on advertising, incentives, networking, and other forms of marketing is throwing good money after bad.

In order to define your value proposition you have to answer 3 additional questions:

  1. Whom do I serve?
  2. What problem do I help them solve?
  3. What results do I help them achieve?

These answers provide input to the value proposition formula, which goes something like this…l help X, solve Y, so that Z. Here, X is the answer to the question, whom do I serve; Y identifies what problem you help them solve; and Z clarifies the results you help them achieve.

For example, my value proposition is, I help service managers and executives gain access to new perspectives, strategies, and insights about service management so that they can increase sales, boost profits, and delight their customers.

Once you determine you value proposition and consistently apply it you’ll achieve better results:

  • You’ll gain clarity about whom you help
  • You’ll be more certain about how you help them
  • You’ll be more effective in finding more people like them
  • You’ll find yourself working with people who really understand and appreciate the value you provide them
  • You’ll close more sales

Remember, if you are feeling stuck in your business or career, and nothing seems to be working, you are probably asking yourself disempowering questions. Break the cycle of despair by asking empowering questions, instead!

Now it’s your turn.  Complete the value proposition formula (I help X, solve Y, so that Z) and share it with us in the Comments section.  We’d love to learn what you’ve developed and how you think it has helped or will help you company get more business.  If you need ideas about what to do now that you’ve developed your value proposition, schedule a free consultation today.

Meeting Market Needs: An interview with Marne Martin, CEO of Service Power

meeting market needs

Last week, I conducted an interview with Marne Martin, CEO of Service Power, a leading provider of workforce management solutions. I was intrigued by recent developments in her company, most notably their release of Nexus FS, a new cloud-based software.   My interview with Marne provides some interesting insight on her company and her perspectives on the market for Field Service Automaton.

Michael R. Blumberg (MRB): Congratulations on Service Power’s progress. It looks like you are continuing to gain momentum in the market. Interim results for H12015 are very encouraging.

Marne Martin (MM): Thank you. Service Power is going through a revitalization campaign. We’ve concentrated on strengthening sales execution, managing our expenditures, making investments in new technology, and migrating to the Amazon web services platform. Our efforts are producing positive results that are the building blocks for the future.

Marne Martin 

MRB: Service Power is obviously gaining traction in the market with its core mobile workforce management software, including the patented ServiceScheduling route optimization software. Why release NexusFS™ (“Nexus”)?

MM: ServicePower’s feature rich ServiceScheduling and ServiceMobility solutions are great for the enterprise market where an enterprise might already have CRM, ERP, etc. already. Nexus FS ™ provides an easy to use, easy to implement solution for SMBs and enterprise customers who require field service management functionality separate from their existing CRM/ERP solution or simply a new all in one solution.

MRB: What perceptions existed in the market about ServicePower prior to launching NexusFS™?

MM: A criticism that we heard was that even though we had a well proven and robust scheduling, dispatch and claims products in terms of their features and functionalities, we were not prioritizing the user experience to be able to tailor UI views and information for the different types of users in an organization, as well as simplify integration challenges for customers. NexusFS™ gives customers a one size fits all solution through which we also have ready-made integrations to our other applications through our Restful API integration layer. It provides a full front-end solution that can be deployed all in one, or on a modular basis to fill gaps in a technology portfolio.

MRB: Obviously you’ve done your homework. How did you validate your assumptions regarding market wants and needs for the NexusFS™ application?

MM: Like many vendors, we relied on competitive market research to better understand our market position and opportunity. I also brought in people with alternative perspectives to validate our assumptions and test our conclusions. It is always my belief that teams of high performing individuals are the ones that create great companies and technologies.

MRB: What resistance did you get from the shareholders in your company when you told them of your plans to release NexusFS™?

MM: I presented shareholders in fall 2013 with a three year plan. It required that we focus on people, process, product first – and then profits, although we of course did commit to managing tightly expenses. This has required us to prioritize and make choices, to focus on efficiency and output internally, and we have been able to drive clear progress in all four areas as you can see from the interim results recently released. Shareholders weren’t certain back in 2013, and even in 2014, we would be able to bring out new products using internal talent and funding, but we have been able to accelerate our output migrating to a fully agile process and using small internal dev teams like “skunkworks” teams. Certainly there are some shareholders that desire us to focus only on profits and not invest in technology, but what creates a new trajectory for the company is the investment in products and marketing first, and then of course sales execution on an increasingly larger scale thereafter. 

MRB: What makes you think the is sustainable?

MM: Investors want to invest in sensible things and are happy to put cash into companies that are prepared to grow steadily and deliver a return on investment.   We have proven our ability to make the investments in our products, generate new cutting edge technology, so the next step is to add scale through our direct efforts, as well as do more in partner enablement related to indirect channels. This is all related to being able to deliver investors consistent topline growth linked to bottom line profitability, which is what they want. We must therefore show investors not just strategic results but also share tactical execution feedback with them metrics and progress, which we are doing. Examples of these touchpoints include getting NexusFS™ to market, managing the internal cost of development, migrating to the cloud and therefore more efficient IT and support structures, increasing the penetration and footprint of our existing applications, building out our professional services capabilities, and of course implementing new logos.

MRB: Thank you Marne, we look forward to learning about ServicePower’s continued success in the market.

Strategies to make service more affordable

strategic service pricing

In my last blog post I discussed the strategic importance of continually finding ways to reduce cost of operations while enhancing service quality. A company can benefit from their cost savings in the form of higher profits or by passing them on to customers in the form of lower prices. Most rational business owners and executives would probably choose higher profits over lower prices unless of course lowering prices is a matter of survival. However, cost reduction is not the only strategy for achieving this outcome.

As I mentioned in my last post, there are a number of market focused strategies that a company can pursue that can result in offering customers services at a more affordable fee. Let’s examine them:

  • Standardization The establishment of standard, well-defined service modules or portfolios can lead to reduced cost through the ability to control the human element and ensure consistency in the service delivery process. McDonald’s is a good example of a company that employs standardization in their service strategy.   In the High-Tech Service & Support Industry, standardization may take the form of offering the customer a bronze, silver, and gold service package.
  • Use of alternative delivery systems To reduce investment and operating costs a company can find alternative ways to deliver service to their customers. In other words, they can make it possible for customers to be more involved in the service delivery process. Electronic banking, including bank-by-phone and the use of ATMs, are examples of this type of service strategy. In the High-Tech Service & Support Industry, this may take the form of an internet portal that allows customers to issue work orders directly to Field Service Engineers or perform troubleshooting on their own.
  • Market segmentation and focus on price sensitivityThere are, of course, significant service sub-market segments, some of which are price-insensitive. However, price-sensitive service market segments also exist. In general, those customers who are more price-sensitive will tend to do a greater portion of the service themselves, including self-maintenance and delivery functions, which might normally be done by the external service vendor at an added cost. IKEA, a furniture distribution organization, is an example of service directed toward the low-priced customer base. As such, they leave services such as picking, delivery, and assembly up to the customer. Medical Device companies do this by offering parts only service contracts.
  • Changing service response and completion times. A final tactic that could be utilized to reduce costs or increase margins is to change or lengthen the service response time and delivery characteristics. In essence, some customers are simply willing to wait longer to reduce service costs), than others. (Some customers want and need rapid response and are willing to pay a premium for such service.

 

Companies seeking to make service more affordable to customers can pursue any or all of these options and still achieve healthy profit margins. Now it’s your turn. Do you have a segment of the market that is price sensitive? Which option would you implement to better serve them? Please share with me you thoughts or experiences you’ve had when it comes to this issue. Still searching for answers, schedule a free consultation today.

Four Principles for Overcoming the Biggest Challenge in Your Business

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We recently conducted a market survey among 250 service managers and executives on critical trends facing the Field Service industry. As part of this research effort, we asked respondents to indicate which issues where the most challenging to their company. Reducing the cost of service delivery was at the top of this list. Over two-thirds of the survey population indicated that this issue was either somewhat (40%) or very (29%) challenging for their organizations.

The truth is that taking a disciplined approach to reducing costs is critical to a business’ long term growth and sustainability.   One way to ensure high profits, year after year, is to consistently find ways to reduce cost by at least 10% per year. They are not simply cutting expenses haphazardly by laying-off people, taking short cuts, asking vendors for price concessions, or making do with less. Those tactics have negative consequences on morale, productivity, and quality which ultimately hurt rather than help a business.

Instead, world class companies take a strategic approach to cost – cutting. They pursue an approach that leads to long term growth, improved market share, and an enhanced reputation among customers and employees.   In other words, an approach that makes them the type of company that makes people want to do business with, work for, or invest in.

Here are a couple of key principles to keep in mind when  applying a cost cutting strategy to your service operations:

  1. It never ends – Just because you were able to find a 10% savings today doesn’t mean that costs will remain the same next year. Your operating expenses will always find a way to creep up on you. There will always be a learning curve associated with rolling out new technologies and launching new services. Even when it comes to delivering existing products and services, waste and inefficiencies will multiply if left unchecked
  2. Know your numbers – There are two old adages that you need to remember when managing a service business – 1) quality is not free and 2) you can’t improve anything that you can’t measure. That’s why it is important to keep an eye on key performance indicators that impact both quality and cost such as First Time Fix Rate, Utilization Rates, Repeat Visits/Repairs for the same problem, No Fault Found, and Dead on Arrival. Continually find ways to improve your performance in these areas and cost savings will follow.
  3. Pursue process and systems improvements – It goes without saying that cost savings can be achieved by streamlining processes and deploying technology to automate manual processes.   For example, a company can achieve a 25% or more improvement in operating efficiency by implementing a disciplined approach to call management, remote resolution, and technician dispatch through reliance on advanced technology such as knowledge management tools, mobile communications, and dynamic scheduling solutions.
  4. Seek alternative delivery models Outsourcing has traditionally been viewed as an effective alternative for reducing costs without jeopardizing quality. However, new advances in crowdsourcing platforms and sharing economy business models offer another alternative for companies to gain economies of scale, improve operating efficiency, and maintain high levels of service quality by contracting directly with independent contractors. In effect, take out the middle man and enable a self-service model. Check out Essintial Enterprise Solutions, an independent services organization (ISO) who uses a Freelancer Management System (FMS) developed by Field Nation to make this type of business model possible.

 

These four principles focus on the internal operations of your business. Follow them consistently and deliberately and you are guaranteed to reap rewards. There are of course market focus strategies that you can pursue to control or reduce the cost of service which we will explore then in our next blog post. In the meantime, schedule a free consultation with me today if want more ideas on where to find cost saving in your service business.

Enterprise Service Management System Trends

 

enterprise-service-management2There has been a lot of attention given in recent years to the need to automate field service and related logistical processes through the implementation of Enterprise Service Management (ESM) systems.   Although the benefits from improved automation are well documented, there is still a segment of the market that is facing challenges to achieving measurable productivity and efficiency gains associated with key service performance metrics.  This shortcoming is due in part to lack of integration between Field Service and Reverse/Service Logistics functions.  The growing trend toward remote support combined with the increasing reliance on spare parts in the service resolution process places even greater demands on equipment service providers to ensure their field service and related logistical process are both integrated and optimized.   We conducted a survey among a cross representative sample of companies in the High Technology Service & Support Industry to validate these assumptions.  Over 250 respondents participated in the survey.  The survey results reveal a number of very interesting trends:

  • Greater reliance on Remote Support: The survey results support the fact that more and more service requests are being resolved remotely without the need to dispatch a field service engineer. More importantly, a large percentage of these remote activities are resolved by sending a replacement part to the customer site.
  • Best of Breed Solutions outperform Integrated Solutions: Despite the breadth of functionality found within integrated enterprise systems, our results indicated a higher level of satisfaction with Best of Breed solutions than with Integrated ESM platforms. We believe this is because best of breed solutions are more focused on the detailed processes and transactions involved in managing a field service and/or reverse logistics operation.
  • Perceived Gaps in Reverse Logistics functionality: Many companies perceive their ESM solutions have gaps in the ability to deal with Reverse/Service Logistics issues particularly when it comes to depot repair activities.
  • Integrated Automation is critical to success: The level of integrated automation between Field Service and Reverse/Service Logistics functionality has a direct impact on ESM effectiveness. More importantly companies with a high level of integrated automation perform better on key service performance metrics than those who do not.

 

In summary, our research findings reveal that companies who have been able to successfully integrate Field Service and Reverse/Service Logistics processes report a higher level of service performance than those who have not.  The most effective integrated solutions are those that incorporate best of breed functionality for both Field Service and Reverse/Service Logistics processes.  More importantly, the data reveals that these integrated solutions are not only highly effective in managing ongoing service requirements but essential to overcoming critical business challenges.

We’d like to thank IFS, a leading provider of Enterprise Service Management systems, for sponsoring our research study.  IFS has made available the results of our study in a 14 page whitepaper that can be downloaded at Whitepaper Download.   To better understand the implications of these findings to your organization or to define requirements for a best of breed, integrated solution, schedule a free strategy session with us today by clicking here.

The Five Most Important Trends Impacting the ITAD Market

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In my last blog post, I provided a high level summary of key findings from the recent market research study we conducted for Arrow Electronics on the topic of IT Asset Disposition Trends.   Now that I’ve piqued your interest, I thought I’d share five important data points from the survey results:

  1. 9 out of 10 companies in 2014 have a formal end-of-life ITAD strategy
  2. Nearly 2 out of 3 companies surveyed choose to have a 3rd party service provider manage their end-of-life assets
  3. The most important factors in selecting a 3rd party service provider are adoption of compliance standards, well documented chain of custody, and high quality reporting
  4. 95% of companies feel that R2 and/or e-Stewards are the most important environmental standards related to ITAD
  5. Nearly 9 out of 10 companies feel that R2 and e-Stewards should be combined into a single standard

 

These findings validate the fact the ITAD has gained increased attention among not only IT Managers but C-suite executives as well.  However, these findings reveal that most companies do not view ITAD as a core competency.  Instead they choose to outsource it to 3rd Party Service providers.  This explains the increased level of competition within the ITAD market as more and more companies enter this space.  It is not just start-up specialized ITAD vendors that are pursing this opportunity but well established IT Service providers and distributors like Arrow Electronics who view ITAD as a natural extension of their product and service offerings.

Given the large playing field of competitors, end-customers are becoming increasingly selective about who they choose to conduct business with.  Among the most important factors are compliance standards, documented chain of custody, and IT reporting and analytics.  It is interesting that while R2 and e-Stewards are perceived as the most important environmental standards, an overwhelming majority of end-customers believe that they should be combined into one, single standard. This suggests that these standards are used interchangeably by end-customers.  Possessing one or both of these industry standards is simply not enough for an ITAD service provider to differentiate itself in the marketplace. While many companies can lay claim to a well-documented chain of custody and superior reporting capabilities, we believe that its additional industry standards such as RIOS, ADISA, NIST, and knowledge of best practices to minimize risk, reduce waste, and maximize recovery values that set one ITAD vendor apart from one another.  If you haven’t read the Arrow IT Asset Disposition Trends Report, we suggest you obtain a copy, click here.    To discuss the implications of this report on your company or business, feel free to schedule a free 30-minute strategy session with us today.

A Strategic Analysis of ITAD Trends

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The data is now in from our large scale market survey conducted on behalf of Arrow Electronics on the subject of IT Asset Disposition (ITAD) trends.  The results validate a popularly held view among IT industry practitioners that ITAD considerations continue to be a top concern for all size companies.   In fact, knowledge of ITAD best practices continues to evolve and improve among C-suite and IT Executives.  However, as one might expect the issues and concerns between the two groups vary somewhat.

Our research also indicates that all companies, regardless of size, are more likely today than in the past to budget for the ITAD process.  In addition, corporations are becoming more aware of penalties arising from improper disposal of IT assets, which has led to an increased implementation of formal ITAD strategies.  While the most important factors for creating an ITAD strategy have remained the same over the last few years (data security concerns, commitment to “Green” business practices, and mitigating legal and financial risks), companies are far less likely to apply their ITAD strategy outside of North America.  It is also clear that companies who have developed a formal end-of-life ITAD strategy are far more likely to have an ITAD provider handle their IT assets when compared with companies who do not have a formal ITAD strategy.

Companies using a 3rd party service provider to manage their end-of-life IT assets are currently very satisfied with their providers.  When choosing these providers, ISO industry certifications are particularly important, with R2 and e-Stewards being the most important environmental standards.  Due to their equal level of importance and credibility, most companies feel that R2 and e-Stewards should be combined into one standard.

While most companies have a data security policy regarding their end-of-life assets, data security concerns are still prevalent.  Data security concerns are particularly high among companies with a formal ITAD strategy as well as companies who use 3rd party service providers.  Most companies use multiple tactics to alleviate data security concerns, which includes using 3rd party service providers.  However, with nearly 2 out of 3 companies selecting a method such as “Delete the file directory on the hard drive” which does not fully eliminate the potential for data security breaches, there remains some uncertainty as to which methods are truly effective.

With most companies adopting a BYOD policy that allows employees to bring at least one device to work, there has been a dramatic increase in the implementation of policies to ensure that company data on BYOD devices is secure during active use.  The vast majority of companies are also implementing policies to ensure that company data on BYOD devices is eradicated once those devices are no longer active on the company network.

Corporate social responsibility/sustainability has also become increasingly important, with approximately 93% of companies expected to have a program in place by the end of 2015.  Companies who currently have a corporate social responsibility/sustainability program in place typically report their program’s progress in their annual report and/or other forms of corporate communication, both public and private.

The cloud is having a significant impact on the purchase of IT assets, with a majority of companies purchasing more assets to support the cloud.  Some of these additional assets purchased likely include tablets, whose use continues to increase.  As a result, ITAD practices and policies will continue a critical topic among C-suite executives and ITAD Managers.

Details of our survey results can be found in the Arrow IT Asset Disposition Trends Report. To obtain a copy, click here.

The Impact of IoT on Enterprise Service Management – Part II

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As follow-up to last week’s blog post, I wanted to share some more answers to Frequently Asked Questions (FAQs) about the impact on IoT on Enterprise Service Management (ESM):

  1. What new skills sets are required to support an IoT environment?   IoT generates an extensive amount of real time data, some of which of is unstructured. In order to make use of this data in any meaningful way, a service provider will need to employ “data scientists”. These are individuals skilled at analyzing and interpreting data through predictive analytics.
  2. What impact will IoT have on Call Center personnel? The always on nature of IoT and its ability to send automatic alerts to the service organization will reduce the demand for personnel that handle basic call handling and dispatching procedures. However, there will be a greater need for remote support personnel with the ability to monitor service events in real-time, apply predictive analytics, and initiate corrective action.
  3. What will be the role for Field Service Engineers (FSE)? IoT has the ability to improve the percentage of service events that are resolved remotely without dispatching a FSE.   This does not necessarily equate to a diminished role for FSEs. In fact, the need for FSEs will increase. First, FSEs will be required to deploy IoT solutions. Second, FSEs will be needed to provide onsite diagnostics and troubleshooting when remote resolutions prove ineffective. Third, FSEs will function in the role of onsite consultant in helping the customer obtain maximum benefit from the technology operating at their site.
  4. How will IoT impact the Supply Chain?  Most people agree that IoT will enable Supply Chain personnel to proactively ship a replacement part or consumable to the end-customer before the customer is even aware of their need. The reverse logistics supply chain will also benefit from IoT in the sense that it will gain better visibility into events occurring at the field level that impact demand on return center and depot repair operations.

I know that these answers barely scratch the surface of the questions people have about the impact of IoT on Enterprise Service Management (ESM).  In the weeks and months ahead, I will continue to share my insights on IoT and ESM.  As always, I am interested in other people’s perspectives on this subject.  Please feel free to post any comments, thoughts, or fun facts that could help advance the body of knowledge around this subject.