Service 3001: An Odyssey to Smarter Services
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1 Service 3001: An Odyssey to Smarter Services Tuesday, May 1, 2012 President Bill Pollock Chief Research Officer
2 Smarter Services : What The Research Suggests Field Service Service Delivery Automation Service Parts Logistics / Reverse Logistics Remote Services
3 Field Service and Remote Services Benchmarks Research Purpose To create a comprehensive Benchmark of the current and emerging states of Field Services and Remote Services in support of service operaions and performance. To analyze and assess the principal drivers, strategies, acions and technologies that define Best PracIces. To explore the impact of new technologies and strategies that are likely to define the future direcion of the market. Survey Disposition Survey data was collected during Q (Field Service) and Q (Remote Services). Survey bases = 215+ (Field Service) and 490+ (Remote Services) respondents.
4 Putting Field Service in Perspective 92% of service organizaions want their Field Service soluion to foster collaboraion between Sales and Service 89% of respondents presently using commercial, off- the- shelf, Field Service soluions require some degree of customizaion 88% of respondents believe that an increased level of sorware automaion would be valuable to their Field Service operaions 84% of respondents have lisle or no reservaions about using a Cloud- based offering to run their Field Service operaions 79% of respondents considering a cloud- based Field Service soluion cite intuiive use / ease of training as the top benefits 71% cite the ability to roll out quickly as a major deciding factor 67% of respondents planning to invest in new mobile tools in the next 12 months are considering the use of Cloud CompuIng
5 Value of Increased Software Automation in Field Service n = 210
6 Top Factors Driving Field Service Today n = 209
7 Current Levels of Service Delivery Performance Reflect: 62% are not asaining at least a 90% First Time Fix Rate 48% are not asaining at least 90% Customer SaIsfacIon 41% are not asaining at least a 30% Services Profit Margin 31% are not asaining at least 90% SLA Compliance
8 Y-o-Y Trends Reflect a Greater Need for Smarter Services : 77% have not decreased their average Mean Time to Repair (MTTR) 71% have not decreased their average Cost- to- Dispatch 47% have not increased their Services Profitability 42% have not increased their Workforce ProducIvity (average calls completed per day)
9 Top Challenges in Field Service Today n = 162
10 Top Benefits of Web-Based Field Service Automation * Base = Respondents that have made their decision. n = 133
11 Field Service Applications Presently Used Are: 50% Customer RelaIonship Management (CRM) 40% Spare Parts / Inventory Management (SP/IM) 39% Service Management System (SMS) (or ERP System with Scheduling FuncIonality) 37% Remote Monitoring / Remote DiagnosIcs 35% Mobile Field Service applicaion 29% Business Intelligence / AnalyIcs 29% Enterprise Resource Planning (ERP) Service Module 24% Knowledge Management applicaion 20% Field Service AutomaIon soluion
12 Field Service Applications Being Planned* Include: 34% Customer RelaIonship Management (CRM) 29% Mobile Field Service applicaion 26% Knowledge Management applicaion 25% Spare Parts / Inventory Management (SP/IM) 25% Service Management System (SMS) (or ERP System with Scheduling FuncIonality) 25% Remote Monitoring / Remote DiagnosIcs 25% Business Intelligence / AnalyIcs 23% Field Service AutomaIon soluion 22% Service ForecasIng and Planning applicaion 21% GPS- enabled Vehicle Tracking applicaion * In the next 12 months.
13 Key Field Service Takeaways All segments believe increased Field Service automaion is valuable Cloud CompuIng is already here; especially for SMBs Cloud- based soluions are preferred for ease of use / quick roll- out Majority of future Field Service technology investment will be Cloud- based Process improvement is seen as a key step toward enhanced revenues CollaboraIon between Sales and Service is a primary business goal The consideraion of ipads / tablets in Field Service is growing significantly There are constant pressures to improve the bosom line through increased revenue generaion
14 81% of FSOs Consider Remote Services as Key 81% Important n = 325
15 Within 12 Months, 83% of FSOs will Employ Remote Services n = 328
16 73% of Remote Services Users Are Long-Timers 73% More than 3 Years n = 216
17 Users Support Large Portions of their Assets Remotely n = 331 Median = 9,583 Mean = 13,323
18 In fact, 39% of Users Support a Majority of Assets Remotely 39% Suppor<ng a Majority of Assets Remotely n = 207 Median = 29% Mean = 40%
19 Top Factors Driving Remote Services Today n = 310
20 Top Challenges with Remote Services n = 284
21 Top Benefits of Remote Services n = 275
22 Top Strategic Actions Currently Being Taken n = 258
23 Top Uses for Remotely Captured Data Are n = 245
24 Since Implementing Remote Services % of FSOs have improved their Customer SaIsfacIon RaIngs; 25% have realized significant improvement 80% of FSOs have improved their Asset UpIme/Availability; 32% have realized significant improvement 68% of FSOs have improved their SLA Compliance; 27% have realized significant improvement 68% of FSOs have improved their Service Profitability; 24% have realized significant improvement
25 Key Takeaways for Remote Services Remote Services Users asain higher levels of Asset UpIme / Availability than Non- Users Remote Services Users asain higher levels of SLA Compliance than Non- Users Remote Services users asain higher levels of Customer SaIsfacIon than Non- Users Remote Services Users asain higher levels of Service Profitability than Non- Users (i.e., More Users asain Profit Margins of 30% or greater, compared to Non- Users)
26 Moving Toward Smarter Services : Upcoming Research Research Coverage: Service Revenues / Profitability Field Mobility Contract / Warranty Management Annual Updates: Field Services Others (TBD) Research Modes: Benchmark Surveys Special Drill-Downs (e.g., by Type, Size, Geo, etc.) Custom Research (e.g., New & Re-purposed Qs, etc.)
27 Bill Pollock Chief Research Officer P: (610) E: W:
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