A Majority of Organizations Are Embracing Cloud-based Field Service Solutions. Written By: William K. Pollock, President Strategies For Growth
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1 A Majority of Organizations Are Embracing Cloud-based Field Service Solutions Written By: William K. Pollock, President Strategies For Growth April 26, 2011
2 A Majority of Organizations Are Embracing Cloud-based Field Service Solutions Field Service organizations have been around for hundreds of years, if not longer, and clouds have been around since well, since virtually the beginning of time. However, cloud-based Field Service solutions have only been available for a few years now and, arguably, are leading to a wholesale change in the dynamics of field service automation and applications. Cloud computing has applicability to service organizations (and businesses) of all types and sizes, covering all market segments and global geographies. It is, and will become an even greater, equalizer among businesses in that it can empower even the smallest organizations to benefit from the same tools and resources as their largest competitors and all with a relatively quick implementation, learning curve and time-to-value. Mobile tools and devices, such as Apple s ipad, make it even more affordable and practical for SMBs (i.e., smalland medium-sized businesses) to embrace, as the costs for outfitting a small- or mediumsized field service organization with these mobile devices is not likely to break the bank. The results of The Service Council s 2011 Field Service Benchmark Survey, conducted among more than 200 Field Service Executives in March-April 2011, confirm that these trends are indeed already happening, and also reveal the following compelling facts about the current state of the global Field Service market: 92% of service organizations want their Field Service solution to foster collaboration between Sales and Service 89% of respondents presently using commercial, off-the-shelf, Field Service solutions require some degree of customization 88% of respondents believe that an increased level of software automation would be valuable to their Field Service operations 84% of respondents have little or no reservations about using a Cloud-based offering to run their Field Service operations 79% of respondents considering a cloud-based Field Service solution cite intuitive use and ease of training as the top benefits; and 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 Computing 52% of respondents are presently meeting less than 90% of their on-site service response time requirements Based on the results of the Benchmark Survey, it appears clear that the global Field Service market has already recognized the need for Cloud Computing, and that the foundation has been laid to support significant growth in terms of adoption and implementation in the next 12 months and beyond. The remainder of this Whitepaper provides additional detail derived from the survey findings. Page 2 of 9.
3 The survey results reveal that a majority of Field Service organizations are presently meeting less than 90% of their on-site response time requirements, with some barely managing to meet as little as 60% to 70%. While just over half (i.e., 52%) fall below 90% success in this key area, only slightly more than one-quarter (27%) are able to attain levels of 95% or better (Figure 1). These findings make it no surprise that, overall, 88% of respondents believe that an increased level of software automation would be valuable for their Field Service operations with more than a quarter (i.e., 26%) believing it would be extremely valuable. Further, nearly one-in-five (19%) Field Service managers are presently running their organizations via a series of manual processes, or through internally-developed solutions that may not be providing them with the desired levels of functionality. The corresponding percentage of SMBs also relying on manual field service processes increases to nearly onequarter (i.e., 23%), while about one-in-11 larger service organizations are also faced with the inadequacies of a manual system, either on a companywide or departmental basis. While Field Service organizations continue to look for improved solutions that can assist with respect to improving efficiency, they are also hoping not to have to break the bank with respect to either the acquisition/start-up cost or Total Cost of Ownership (TCO) particularly among the SMBs. However, some organizations may not have yet made their purchase decision because the solutions they have evaluated were, in their opinions, either too limited in functionality, took too long to roll out, and/or were too expensive to acquire and operate. Page 3 of 9.
4 However, once the organization s service management recognizes (or admits) that it is in the need of an automated and/or enhanced Field Service solution, there may still be some degree of internal discussion as to what type of solution will be required, from whom it should be acquired, how it will need to be deployed (e.g., companywide; on a departmental, geographic or other basis; as a full rollout, or on a beta site basis; etc.). From the survey results it is clear that there are four key preferences that will drive the market s direction in the next 12 months, including (Figure 2): 51% of respondents prefer a solution that is intuitive and easy to train on 48% prefer to invest in a solution that fosters collaboration between Sales and Service to drive real business benefit 44% prefer a solution that rolls out quickly 40% prefer to work with a single provider of field service functionality Some Field Service organizations have decentralized Sales and Service components, while others believe that there should be collaboration between these two highly inter-related activities. To many organizations, the benefits realized from the empowerment of their Field Service team through social collaboration will be pervasive and productive. The survey results confirm this hypothesis by showing that 92% of respondents believe it is important to their organization that the Field Service solution it uses fosters collaboration between Sales and Service to drive business value (i.e., to the bottom line). In fact, nearly a third (i.e., 31%) believe it to be extremely important. Page 4 of 9.
5 There are many factors that have led the survey respondents to this realization; however, based on the survey results, the following are cited as representing the real benefits of social collaboration with respect to the organization s Field Service teams (Figure 3): 57% The ability to interact in real time to solve customer problems quickly 54% Provides the entire organization with a means for driving customer success 49% Provides the Service and Sales organizations with a means to collaborate to drive revenue opportunities 32% Collaboration is a good way to capture and store the cumulative tribal knowledge of the organization The survey results also prove that the time for Cloud-based Field Service solutions has come, and that the widespread acceptance of the cloud has opened up new markets (e.g., SMBs) for those Field Service solution vendors with credible offerings. In fact, a majority of respondents (i.e., 53%) are considering, or planning to leverage, Cloud computing into their Field Service operations in the next 12 to 24 months with roughly a third (i.e., 32%) planning to move forward in the next 12 months (Figure 4). This number increases further to 56% among SMBs. Page 5 of 9.
6 There are a multitude of reasons behind their consideration of Cloud computing, including: 50% Ubiquitous access to Field Service application via Web browser 48% Faster roll-out time / time-to-value 43% Lower administration requirements 39% Lower ongoing maintenance costs 38% Lower start-up costs The ipad is perhaps the most talked about new technology with respect to its application in a Field Service environment. The importance of key benefits such as the relatively low cost to deploy compared to other customizable devices, low training requirements (i.e., about one hour per field technician, as opposed to up to a week for some of the more traditional mobile devices), ability to host rich content for knowledge management, and availability of simple signature capture will be key talking/selling points that will appeal to this market. The survey data reveal that the ipad is primed to be one of the principal go-to devices for supporting Field Service operations in the next 12 to 24 months due to its ease of use, lack of required training, field adaptability; and core functionality. The ipad s acceptance is likely to be strongest initially among SMBs, as well as divisions of larger organizations that wish to ramp-up quickly without having to invest in higher-ticket devices, deployment or training, etc. Page 6 of 9.
7 The survey results also support the hypothesis that the widespread and growing acceptance of Cloud computing has opened up the floodgates for the newer generation of mobile devices, initially centering on the Apple ipad. Among those respondents who have made a decision, more than a third (i.e., 38%) are considering, or planning to leverage, the use of ipads into their Field Service operations in the next 12 to 24 months with about half (i.e., 18%) migrating within the next 12 months (Figure 5). This number increases further to 41% among SMBs. Field Service organizations are rallying around the ipad s ability to normalize the playing field between the larger enterprises and the SMBs, as there are numerous benefits associated with its use in either segment. The primarily benefits cited overall are the following: 45% Touch screen supporting signature capture 45% Ability to host rich content for knowledge management 37% Low training needs / costs 36% Low cost, compared to the use of customized field devices However, with more than a third (i.e., 34%) of respondents presently not aware of any benefits associated with the use of ipads in the field, once again, these numbers will be expected to increase in this case, significantly as more and more organizations become knowledgeable. Page 7 of 9.
8 The key takeaways from this whitepaper, based on the results of The Service Council s 2011 Field Service Benchmark Survey, are: All respondent segments believe that increased software automation is important to their Field Service operations Cloud computing is already here, and being embraced especially by SMBs Cloud-based solutions are preferred for their ease of use, low requirements for training, quicker roll-out, and lower costs for both start-up and ongoing maintenance A majority of future Field Service technology investment will be Cloud-based Process improvement is seen as a key step toward the ability to increase service revenues and profits Collaboration between Sales and Service is a primary business goal regardless of size of organization The consideration of ipads in Field Service applications is growing significantly Cloud-based Field Service solutions are believed by a majority of respondents as the means for getting them where they want to be quicker, easier, and in the most costeffective manner. Based on the results of the 2011 Benchmark Survey, it is clear that a majority of organizations have already embraced Cloud-based Field Service solutions and that the movement toward pervasive adoption is largely underway. Research Powered By Page 8 of 9.
9 About The Service Council The Service Council is an exclusive community of Services Executives representing global, industry-leading, service-centric businesses. The mission of The Service Council is to provide a platform for innovation sharing, shaping and sharpening; where uncommon service-centric businesses can emulate the strategies deployed by Global Service Leaders. The Service Council is supported by an interactive website where members can debate service and customer experience strategies and consume case-study driven thought leadership. Membership to The Service Council is free to all qualifying applicants. For more information please contact John Carroll, President & Founder of The Service Council at (617) and/or jtc@theservicecouncil.com. For all inquiries, please submit an to info@theservicecouncil.com. Visit The Service Council website at About Strategies For Growth William K. Pollock is President of Strategies For Growth SM (SFG SM ), an independent research analyst and management consulting firm that supports service organizations with a full range of strategic, marketing and business planning consulting; customer, market and supply chain partner surveys; customer satisfaction measurement & tracking programs; services marketing & promotional support; custom market research reports, Webinars, published articles and whitepapers; Business Process Evaluation/Reengineering (BPE/R); competitive market analyses; and general services consulting. Bill has formerly served as Managing Analyst, Services Industry for Gartner, and Vice President, Principal Analyst heading up the Aberdeen Group s Strategic Service Management practice. Bill may be reached at (610) , or via at wkp@s4growth.com. The SFG SM company website is accessible at About ServiceMax ServiceMax delivers the future of field service, today. The first and only complete suite of cloudbased, collaborative and mobile field service applications, ServiceMax gives companies unprecedented capabilities in field service management to optimize operations and delight customers. Companies use the ServiceMax suite to handle everything from contract entitlements to scheduling & workforce optimization, to inventory & parts logistics and real-time customer and partner portal access. ServiceMax is built and delivered as a native Force.com cloud application so customers are up and running quickly with a low cost subscription model that is completely integrated with their Salesforce.com CRM. Customers include large enterprises such as DuPont, Electrolux and Pentair, and smaller companies such as Everyday Wireless and Advanta Clean. ServiceMax is headquartered in Santa Clara, California. For more information, please visit or find us on Twitter and Facebook The Service Council All rights reserved. No part of the material protected by this copyright may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, broadcasting or by any other means without written permission from The Service Council. The Service Council is a registered trademark. You shall not display, disparage, dilute or taint our trademarks and service marks or use any confusingly similar marks, or use our marks in such a way that would misrepresent the identity of the owner. Any permitted use of our trademarks and service marks inures to the benefit of The Service Council. All other trademarks, service marks or registered trademarks appearing on these The Service Council pages are the trademarks or service marks of their respective owners. Page 9 of 9.
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