EN/LZT 108 9910 R1A LESSONS LEARNT IMPLEMENTING FIELD FORCE AUTOMATION AT ENERGEX September 2008 Discussion Paper ENERGEX s multi-million dollar Field Force Automation (FFA) project successfully transformed its field service organisation, improving workforce performance, operational efficiency, customer satisfaction and response capability. This paper examines the lessons learnt implementing field force automation at ENERGEX. TUSC, a subsidiary of the Ericsson Group, was the Prime Integrator for this project. TUSC was fully integrated into Ericsson s operations in September 2008.
Contents 1 Introduction... 3 2 Who is ENERGEX... 3 3 Who is TUSC?... 4 4 What is Field Force Automation?... 5 5 Why ENERGEX Implemented FFA... 6 6 Situation History... 7 7 Business Case Development... 7 8 Procurement... 8 9 Field Hardware... 9 10 Communications... 10 11 The Project... 11 12 Project Scope... 12 13 Managing Change... 13 14 Business Process Redesign and Change Management... 13 15 Project Results... 14 16 Lessons Learnt... 15 17 Project Futures... 16 2 (16)
1 Introduction Service organisations such as utilities, IT, telecommunications and logistics providers face continued pressure to reduce operational costs while improving customer service and retention, to gain an edge in an increasingly competitive market place. As a result of cost-cutting and resource reduction initiatives, companies are striving to do more with less. Faced with the need for higher worker productivity and customer demand for faster and more efficient service, service organisations are looking for ways to streamline and optimise the operations of their field service personnel. And Field Force Automation (FFA) solutions are at the top of their priority list. According to research by the Aberdeen Group, 88% of best-in-class service organisations view ensuring the robustness of the connection between the field and back office as a top strategic priority. This is due to many enterprises continuing to struggle with inadequate data management resulting from manual and paper-based procedures in the field. The benefits of field force automation solutions are great: Companies that have deployed mobile field service solutions have realised, on average, 27% improvement in worker productivity, 19% increase in customer satisfaction/retention, 17% increase in overall profitability, and 13% increase in service revenues. The Mobile Field Service Solution Selection Report, Aberdeen Group, 2006. This paper shares the experiences and lessons learned as ENERGEX and a vendor consortium led by TUSC (now part of the Ericsson Group) automated ENERGEX s field service operations. Previously published by TUSC Computer Systems Pty Ltd in 2007, this discussion paper has been updated and reprinted to reflect the integration of TUSC into Ericsson s Australian and New Zealand operations in September 2008. 2 Who is ENERGEX? ENERGEX is a government owned and regulated top-100 Australian company, based in South-East Queensland, with $7.6 BAUD in assets and 3,900 employees. It is rapidly growing, servicing a community of 2.8 million people and experiencing a substantial load growth in the order of 6% to 10% per annum. With a distribution area of 225,000 square kilometres, ENERGEX s network includes more than 50,000km of overhead and underground electricity lines and cables, over half a million power poles, 43,000 transformers and more than 290,000 street lights. Facing increasingly stringent government regulations, particularly surrounding storm response, and other customer service levels, coupled with the need to keep costs down, ENERGEX realised that it was time to look at streamlining field operations. In 2005, only two years out from Full Retail Competition in Queensland, the idea for the Field Force Automation project was born. 3 (16)
3 Who is Ericsson? Ericsson is global market leader in end-to-end communications solutions. In 2005, it acquired TUSC Computer Systems, a systems integrator specialising in service management solutions for utilities and telecommunications providers, In 2008, Ericsson fully integrated TUSC to create a powerful new force in the utilities industry. Ericsson s vision is to help utilities transform the way they design, operate and maintain their IT, operational and communications networks to create the infrastructure required to support the business moving forward as cost effectively as possible. Ericsson s market-leading field force automation solution transforms the way field service organisations operate, improving workforce performance, operational efficiency, customer satisfaction and response capability. Ericsson is the leading Australian partner for Service Suite (formerly Advantex), the field force automation solution from Ventyx. Service Suite is the leading enterprise workforce automation solution in the Utilities and Telecommunications industries, chosen by more than 100 service providers worldwide to manage their field service operations. A Day in the life of an ENERGEX field crew The technician returns to his vehicle after successfully completing a job. He fires up his ruggedised laptop, enters some details about the job, then turns to his job inbox to see what is waiting next: a wires down job. With a few deft movements, he brings up a map showing the shortest route, and checks the job details. Yes, he can do the job, so he touches one button on his screen, swings the laptop out of his way, and starts the short drive to the job location. Meanwhile, back in the ENERGEX call centre, a customer service representative takes a call from a woman concerned about a tree which has brought wires down in her street. It is getting close to the time that her children will be arriving back on the school bus, and she is worried about potential danger on their short walk home. The call centre operator checks his system, and notes that the problem has already been reported. In fact, a technician is on the way to this emergency job, and has an estimated time of arrival of 10 minutes. Once again, ENERGEX s sophisticated Field Force Automation system delivers not only the right technician to deal with an emergency situation, but also timely information to a safety-concerned public. 4 (16)
4 What is Field Force Automation? Field force automation is about getting the right technician or crew to the right place at the right time for the least cost to the business. FFA software optimises the way companies make and keep customer commitments, complete planned work without overtime, respond quickly to emergency situations, make the most productive use out of mobile workers, provide easy access to required information, automate the collection and validation of field data and improve overall workforce performance. When combined with the right field devices, appropriate communications for both the location and business requirements, and an effective change management program, FFA software becomes a full field force automation solution that delivers business benefits from day one. Key FFA Functions Enterprise Application Work Orders Work Results Appointment Booking Automated Assignment Street Level Routing Technician Management Crew Management Shift Scheduling Work Progress Technician Status Vehicle Tracking Exception Alerting Messaging Dispatching Time Reporting Status Monitoring Reporting Performance Measurement Wireless Communication Wireless Efficiency Mobile Street Maps Mobile GIS Software Distribution Workflow Enforcement Field Data Capture Field Supervision Assignments Work Results Field Workforce Figure 1 - Key FFA Software Functions FFA software relies on information generated from a variety of systems for its work orders and sends back work results from the field to these systems, so effective integration is essential. Most FFA initiatives require integration with one or more of the following: Asset management systems for maintenance work orders and information on the location of assets in the field; The customer call centre for emergency and customer service jobs; The customer information and/or billing system for customer and account information; 5 (16)
Geographic Information System (GIS) for optimum job allocation; Billing systems; and Outage Management Systems. Ericsson s end-to-end FFA solution encompasses software, hardware, communications infrastructure, change management programs and consulting in a wide range of areas including strategic planning, business case development, tender and RFI development, technology strategy, and requirements specification. 5 Why ENERGEX Implemented FFA ENERGEX embarked on its FFA project as its key strategy to address a number of external environmental factors and operational challenges. Darryl Steven, Project Director for the Field Force Automation project at ENERGEX explains: We are experiencing extraordinary growth in demand due to nearly 1000 new people arriving in South-East Queensland every week. We needed to find a way to better utilise our existing workforce, particularly in the field operations area. FFA promised us the ability to more efficiently use our current resources to service the demand and improve customer service levels. ENERGEX Environment Expanding Operational Capability Current Operational Challenges Customer expectations Continuous improvement of storm response Field Force Automation No geographic view of field staff Congested mobile communication with field staff (esp. during storms) Volume of Work Wasted travel time FRC preparations and new competition No spatial data in the field (to locate assets/job sites, capture updates) Figure 2 - Key Drivers for FFA at ENERGEX 6 (16)
6 Situation History ENERGEX was not completely without field force automation before it started working with TUSC, now an integrated part of Ericsson. During the past 7 years, it employed limited FFA capability through an in-house developed Computer Aided Scheduling and Dispatch (CASAD) system. This system was operational in the Customer Service area, and thus covered only a portion of the field operations. ENERGEX identified the following issues with this system: Heavily dependent on manual processes Utilised Trunk Mobile Radio communications which was to be decommissioned and which could not support additional capacity Created unacceptable levels of rework as a result of dispatch procedures and Trunk Mobile Radio network congestion Supported only basic functions as data terminals in vehicles, which were similar to taxi terminals, only allowed limited character display This restricted functionality was enough to give ENERGEX a taste for field force automation, and generate ideas for requirements. 7 Business Case Development The first step was to identify the target outcomes of implementing a FFA solution across ENERGEX. ENERGEX expected to achieve the following business benefits: Improvement in network system reliability Enhanced efficiency in dispatch and field operations To be achieved by improving dispatch operations, making use of automatic scheduling functionality, optimising work allocation to the field, and optimising route choices for technicians servicing orders Better management of maintenance issues reported in the field Reduced business support costs Improved customer service through accurate timely feedback about outages and restoration times Improvement in data update times and accuracy and availability to field staff 7 (16)
A business case was developed, quantifying the value of these benefits to the organisation, along with an ROI timetable. The final business case was approved by the Board in February 2006. 8 Procurement ENERGEX ran a rigorous Expression of Interest (EOI) and closed tender process to select a consortium to deliver the Field Force Automation system. The entire process took only three months, from EOI to selection. The EOI documents included over 300 functional and technical user requirements gathered from the business. EOI responses were short listed based on a table of criteria and weightings which included: Experience in projects of a similar scope Ability to provide a complete solution Ability to integrate with existing applications Capable and available resources Plus other criteria which carried lesser weightings. Once the EOI responses were short listed by the above criteria, the functional and technical requirements were evaluated and scored to give a total percentage fit. Only responses which scored above 80% fit were invited to the closed tender. In parallel, ENERGEX conducted independent financial evaluations and reference checks on all the short listed applicants. The Request for Tender (RFT) responses in the closed tender were then evaluated in three phases, again designed to quickly move to the most suitable solution for ENERGEX. Phase 1 identified non-conforming responses. In Phase 2, the evaluators performed a desktop evaluation, again using a defined set of criteria and weightings which included: Experience and capability in providing FFA systems Consolidated business requirements Alignment with the future direction of the FFA solution Fit with technical requirements Implementation approach to Project/Change Plus other criteria which carried lesser weightings. 8 (16)
In the final phase of the RFT process, successful tenderers from Phase 2 were required to demonstrate their solution, with particular emphasis on the functional and technical requirements from the original EOI. In addition, ENERGEX performed reference checks, and visited reference sites, where possible. As with the other selection phases, the final phase had a defined set of criteria, with weightings: Vendor Demonstrations solution meets business requirements Vendor Demonstrations solution meets technical requirements SWOT Analysis Reference Checking The net result of this process was the selection of TUSC (now integrated within the Ericsson Group) as prime contractor, leading a consortium consisting of: MDSI (now Ventyx), the vendors of Advantex Field Force Automation Software (now known as Service Suite) The LiTMUS Group, to run the change management portion of the project Integral Technology Solutions, to deliver the Enterprise Application Integration (EAI) layer connecting ENERGEX s host systems with Service Suite for two-way information transfer SPARQ Solutions, IT service provider to Queensland s energy suppliers, ENERGEX and Ergon Energy Advantex was selected as it is a proven solution, available off the shelf and is used in over 80 utilities worldwide, it is a highly configurable system, offering control and flexibility for ongoing maintenance, and provides a capability to extend functionality with growing business needs. Darryl Steven said. 9 Field Hardware Field devices are the tools that field workers use to receive work instructions, obtain further job and customer information on-site and enter information about the status of each job for relay back to the office. Mobile field devices transform the way field staff work, from paper-based and face-to-face communication to more technology-based interactions. The choice of device, its introduction to the workforce and subsequent adoption plays a significant role in the success of the overall project. There is a plethora of devices on the market including laptops, Personal Device Assistants (PDA s) and mobile phones (ruggedised and non-ruggedised) and the selection of the correct device may not be absolutely clear. 9 (16)
Ericsson s utilities team assisted ENERGEX with field device selection by creating a short list of suitable devices and presenting them to the company for evaluation. As with the other design phases of the project, the ENERGEX staff who would be actually using the devices participated in the trial and ultimate selection of the field device. The final choice was the Panasonic Toughbook CF18 because it offered the following key features: Ruggedised, and convertible to a tablet PC with a simple flip of the screen Used worldwide and across Australia in organisations such as Telstra and BlueScope Steel Shock resistant Water and dust proof Glare free. 10 Communications With the selection of the field device finalised, attention turned to the supporting communications infrastructure, required to send and receive information to and from field staff. The choice of communications technology determines the FFA implementation strategy and is a major element of the solution s on-going operational cost. Organisations need to consider the coverage of each of the technologies in their market, cost comparison per field interaction and on-going maintenance and support requirements for each communications option. Service Suite supports all major communication technologies, so ENERGEX, with the assistance of TUSC (now part of the Ericsson Group) was able to complete a communication protocol study to determine the best protocol for their business requirements and geographic area. ENERGEX used Trunk Mobile Radio for communications at the time, but that was due to be decommissioned and did not have the capability to handle any extra load. The project initially intended to use GSM / GPRS, but found it only offered a 70 75% coverage fit to ENERGEX s requirements, whereas the Trunk Mobile Radio had a 90 95% fit. CDMA was selected as it provided the most coverage across ENERGEX s area of supply. This was pursued as an interim solution, as the CDMA network was scheduled to be decommissioned. ENERGEX s FFA system has now successfully transitioned to the new 3G network. 10 (16)
11 The Project From the outset, ENERGEX s FFA project was driven by the business for the business, rather than by IT. Engaging with top-level management through to field staff, to ensure they understood and had ownership of the process rather than having the process forced upon them was critical to project success. Accordingly, more than 100 field and office staff were involved in selecting and designing the field force automation solution. ENERGEX also recognised that Field Force Automation would impact many other parts of the business, including its systems, infrastructure, people and processes. On this basis, Darryl Steven set sensible and conservative guiding principles: Walk before we run keep the functionality to basics, focusing on work orders to and from the field, and closure in host systems Configure only essential forms to support closure of work orders in host systems Don t necessarily implement all functionality in the software initially build this into an ongoing strategy No customisation of software stick with the vanilla solution Little if any modifications to host systems Host systems are databases of record and as such are masters; the FFA solution acts as a slave as far as order creation, modification, cancellation is concerned, and simply follows the wishes of the host system. FFA s job is to deliver work orders to the field in an optimal fashion, and return results as quickly as possible to host systems Service Suite represents world s best practice if we need to change business processes to match the solution, let s do that, rather than trying to bend the software to fit business practices FFA is a business-led, not IT-led project we are delivering business requirements to the business. The project team, consisting of TUSC (now part of the Ericsson Group), LiTMUS, Integral Technology Solutions and Ventyx staff, as well as ENERGEX subject matter experts, kept these guiding principles in mind at all times during the project. Clarity and a shared understanding of these principles was particularly helpful in focusing the team when the time came for difficult design decisions. 11 (16)
12 Project Scope The scope of the project was to deliver a field force automation solution into ENERGEX which: Rolled out to more than 1500 field crew and contractors Managed work including: Customer service work, e.g. initial meter connections, alterations, and additions to meters, single premises loss of supply, cold water complaints, connects and disconnects Trouble call work, e.g. network system faults in non-storm conditions, normal operations, 24x7 support requests Selected short cycle maintenance and capital works Storm work Interfaced with appropriate host systems, including: Customer management Asset and work management Trouble call/outage systems (to create/change/cancel work orders, to return completion results for these orders from the field to the host systems, and to return near status updates to host systems as needed) Utilises the native functionality and efficiency which is core to the Service Suite product Service Order / Work Order Created Changed Cancelled Complete SERVICE SUITE Customer Management EAI Schedule & Dispach Accept Dispach Mobile Asset/Work Management Trouble Call/Outage M I D D L E W A R E Order Completion Status Updates Close Dispach/Mobile Perform Mobile Host Systems Figure 3 - Overview of FFA Project Scope 12 (16)
13 Managing Change Even with a well-defined scope, sound guiding principles, and a disciplined team, the project encountered changes. ENERGEX had to deal with scope adjustments with the sale of the Gas business early on in the project, and when the government s Full Retail Competition (FRC) changes had to be incorporated and tested ready to meet the FRC team s project deadlines. In addition, as the business became more aware of the project, demands for functionality started pouring in. This is where a well-defined and regimented change control process helped. All functionality requests were delivered to one point, where they could be assessed and decided upon by a change committee. The committee evaluated whether each the change was within the initial project scope, whether it was critical for day one operation, and if it affected the timeline. This ensured that only absolutely necessary changes were included in the project, while the remainder, were left aside for consideration in follow-up projects. 14 Business Process Redesign and Change Management FFA projects irrevocably transform the way people work - introducing new technologies and changing well- established work practices and processes. Adjustments to work practices, processes and job design include the way the organisation: Initiates customer requests for service; Sorts and routes work orders; Dispatches and performs orders; Monitors order and technician status; Completes orders; Handles completed orders; Bills work; and Manages historical data. These changes have considerable impact on the people involved. Helping everyone to understand, accept, adopt and ultimately embrace such a significant change in their daily working lives requires an understanding, professional and systematic approach that cannot be left to chance. 13 (16)
Accordingly, in parallel with the design and build of the FFA system, and in a tightly integrated fashion with other streams of the project, The LiTMUS Group initiated, planned, and executed an Organisational Change Management program which helped to ensure the success of the project. The Change Management Process was considered a journey, and The LiTMUS Group used five main levers to move staff along this journey: Business processes Change network Communications Training Managing the program Understand the implications of the change and map new role based procedures Establishing a network of change agents to support the transition Providing communications through the appropriate channel for each role Role based training using our Foundation Immersion Re-enforcement approach Providing Program Office Support for the change program An extremely successful part of the Change Management Program was a Conference Room Pilot, held over a period of 4 weeks, a few months out from the anticipated go-live date. The pilot was conducted at ENERGEX s Southport hub, and ENERGEX staff across all roles had the opportunity to experience the system, with its proposed configuration and associated processes, and provide their feedback. The overwhelming majority of participants agreed I think the introduction of Field Force Automation will benefit ENERGEX. 15 Project Results The project outcome to date has been very positive. Stage one was successfully completed in a rollout over 3 phases, which delivered: Phase 1 (January 2007) Trouble Call work on a hub-by-hub basis, 1 host system, 85 field devices; Phase 2 (May 2007) Customer Service work, including modifications for Full Retail Competition, which included meter readers, incorporating 4 host systems, 240 laptops; Phase 3 (September 2007) Planned Maintenance and Capital Works, 1 host system, 400 laptops; Training was also delivered to a total of 1400 users across all phases, encompassing all affected roles in the organisation. In addition, Full Retail Competition capability was built in as a late scope inclusion. 14 (16)
The project was delivered to an aggressive timeframe within a challenging environment but the reaction from the field staff has been extremely positive. Darryl Steven is also pleased with the outcome of the project: As with all projects with an IT component, there were many roadblocks that had to be overcome through the life of the project. The introduction of Full Retail Contestability mid project was a major hurdle that was successfully negotiated and the project was still delivered on time. The benefits associated with the introduction of FFA have started to be realised and it positioned us well to manage the increase in workload associated with FRC. We will be looking to further reap the benefits of its introduction in the upcoming storm season. 16 Lessons Learnt Lesson 1: The challenge of successfully transforming the way field service is undertaken in an organisation should not be underestimated. Lesson 2: Prepare a business case which states exactly the measurable benefits you will achieve from Field Force Automation. Lesson 3: Know exactly what you want before you go out to the market, and define a rigorous selection process. Lesson 4: Field hardware is a new tool in your field staff toolbox. Ensure it is the right tool to do the job by involving field staff in the selection. Lesson 5: Set realistic project objectives and guidelines, and stick to them. Lesson 6: Expect the unexpected. Be nimble, and adaptable to change, but instigate a process to control change and prevent scope creep. Lesson 7: Acknowledge that a FFA solution will change the way your people work, and manage that change. 15 (16)
17 Project Futures With the successful delivery of Stage 1, ENERGEX has turned toward the future. Even before the first phase was rolled out, planning was underway to expand capability with one or more subsequent projects. An ongoing FFA strategy paper has been prepared with key themes: Establishment of an Operational Support Group Paperless field operation Remodelling the dispatch functions Improved automatic scheduling FFA to Distribution Management System interface Review of operational structures and responsibilities Solution development and upgrades ENERGEX began this project with a walk before we run theme. Throughout the entire project, the focus remained fixed on this underlying premise and the ultimate outcome of providing automation to the field force. Business advantages have already been achieved in reducing costs, enhancing efficiency in the field, and improving customer service. Now the time is ripe for ENERGEX to take its field force automation solution to the next level in order to obtain maximum benefit. Ericsson Australia www.ericsson.com.au/utilities EN/LZT 108 9910 R1A Ericsson Australia 2008