SYN-002_WP_State of Emerging Tech_C
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Orange Paper<br />
<strong>State</strong> <strong>of</strong> <strong>Emerging</strong> <strong>Tech</strong><br />
in Field Service
<strong>State</strong> <strong>of</strong> <strong>Emerging</strong> <strong>Tech</strong><br />
in Field Service<br />
What do you get when you gather more than eighty field service pr<strong>of</strong>essionals, after-sales service<br />
innovators and solution providers in one room for an hour?<br />
The answer: Countless years <strong>of</strong> experience in the advancement <strong>of</strong> after-sales service, and expert opinions<br />
about the current state <strong>of</strong> emerging technology in field service.<br />
At this year’s annual Field Service USA event, hosted by Worldwide Business Research and attended by industry leaders like<br />
FedEx, GE, Ford, Oracle and Salesforce, our Syncron team led an hour-long workshop centering around future trends and<br />
technologies and their potential impact on field service. The workshop was divided into four rotating discussion corners: 3D<br />
Printing, Internet <strong>of</strong> Things (IoT), Driverless Cars & Drones and Augmented & Virtual Reality.<br />
In 2016, the decline in demand for durable goods (e.g. airplanes, cars, heavy equipment and industrial machinery, among<br />
others) captured headlines, and the fluctuating sales trends continued for much <strong>of</strong> the year. This type <strong>of</strong> market volatility is<br />
causing most manufacturers to feel the pinch, and seek alternative revenue opportunities. It was because <strong>of</strong> this market shift<br />
that Syncron felt it was important to lead the world’s transition from reactive after-sales service to intelligently maximizing<br />
product uptime by embracing these emerging technologies.<br />
Throughout the session, we found that while many organizations were optimistic in their interest in these emerging<br />
technologies, few have truly begun to implement the advances within their field service processes. So, when it comes to this<br />
generation’s take on emerging technology, is it just vendor-hype or reality?<br />
Our goal <strong>of</strong> the workshop was to answer this question, once and for all, by gaining first-hand information on how emerging<br />
technology is viewed within some <strong>of</strong> the largest and most advanced field service organizations, how it’s being used today, and<br />
how it’s future impact on field service is seen among the experts. And, as field service moves from a break-fix model to an<br />
after-sales strategy driven by maximized product uptime, we’re tackling each piece <strong>of</strong> emerging technology to uncover ways<br />
that organizations can invest in the future and start preparing for what’s to come.<br />
3D Printing<br />
3D printing has long been used in manufacturing to create part prototypes.<br />
But now, with the advances made to the already mind-blowing technology,<br />
they can print parts in metal, plastic and other durable materials. This<br />
means that 3D printing can now be used to create actual replacement parts<br />
– and it might not be in the too-distant future that driverless vehicles could<br />
be equipped with printers that can print parts on the spot.<br />
As the technology continues to advance, the impact 3D printing could have<br />
on parts inventory levels, warehouse needs and the logistics <strong>of</strong> moving<br />
parts from one location to another could be monumental. These factors will<br />
lead to reduced cost and faster repair times – ultimately leading to:<br />
Orange Paper | <strong>State</strong> <strong>of</strong> <strong>Emerging</strong> <strong>Tech</strong> in Field Service
• Maximized product uptime.<br />
• Reduced excess part obsolescence.<br />
• More revenue for the manufacturer.<br />
• Better experiences for the end-user.<br />
In the workshop, we discovered that the majority <strong>of</strong> companies are using 3D printing for research and design, with a much<br />
smaller fraction using it to produce actual replacement service parts. The major concern with 3D printing in field service is its<br />
reliability, along with the cost <strong>of</strong> parts per request. To combat this issue, the idea is to target usage on low volume parts to keep<br />
costs down, ultimately leading to the aforementioned goal <strong>of</strong> maximized uptime, increased manufacturer revenue and a better<br />
customer experience.<br />
3D Printing will provide usable<br />
service parts in the next 10 years.<br />
So what about the group’s future thoughts on 3D printing in<br />
service? When prompted to raise their hands if they support 3D<br />
printing <strong>of</strong> service parts for commercial airplanes, the majority <strong>of</strong><br />
the attendees hands lifted into the air. But, when followed by the<br />
question, “How many <strong>of</strong> you would choose to fly on a plane knowing 3D printed parts were used in its service?” hands began to<br />
drop. Most believe that 3D printing will provide usable service parts in the next ten years, which will be a game changer, but with<br />
the over-hyped technology <strong>of</strong> today, we need stronger pro<strong>of</strong> <strong>of</strong> reliability, durability, production time reduction, and overall<br />
reduction <strong>of</strong> machine cost.<br />
Internet <strong>of</strong> Things (IoT)<br />
The beauty <strong>of</strong> the Internet <strong>of</strong> Things (IoT) is the impact it can have on<br />
customer interactions and its effect on improving the overall customer<br />
experience. This holds true for field service, which <strong>of</strong>tentimes serves as<br />
the ‘face’ <strong>of</strong> manufacturing brands when it comes to the shift from a<br />
break-fix service model to regularly maintained product uptime.<br />
The intertwined network <strong>of</strong> physical goods equipped with sensors and<br />
s<strong>of</strong>tware allows manufacturers to freely exchange data between the<br />
products they sell and their internal systems. This helps both the<br />
manufacturer and end-customer – products built with ‘smart parts’ can<br />
send a signal to both the manufacturer and customer to alert them a<br />
repair is needed and to schedule a service appointment soon, also<br />
allowing manufacturers to ensure that a replacement for the failing part is<br />
available in close proximity to the customer.<br />
There’s no use in having data<br />
captured if you can’t use it.<br />
During the workshop, we found that the companies who have an IoT strategy in place versus those who have yet to settle on<br />
one is evenly split. Here are some <strong>of</strong> IoT’s pros and cons among the group:<br />
• Without a strategy, there’s no use in having data captured if you can’t use it. Manufacturers must either invest in an IoT<br />
strategy, or start collecting historical data for future use.<br />
• The predictive nature <strong>of</strong> IoT enhances the ability <strong>of</strong> cloud-based service parts management technology to proactively<br />
ensure parts are available, thus allowing for faster product repairs.<br />
• Using data strategically can maximize uptime, delivering the amazing experience<br />
today’s customers expect from an IoT-integrated solution.
With the combination <strong>of</strong> IoT and machine learning, where computers learn to function in intuitive ways that they were not<br />
specifically programmed to do, vast amounts <strong>of</strong> data can be used to make better decisions and perform more proactively and<br />
preventatively based on past experiences. And, thanks to speedy, at-your-fingertips service from companies like Amazon,<br />
Zappos and Uber, this high level <strong>of</strong> service standards will be required <strong>of</strong> manufacturers when it comes to future field service<br />
needs – both at home and at work.<br />
Manufacturers must adopt this emerging technology as they move from a break-fix model to a maximized uptime model to<br />
ensure service parts are in the right place at the right time, leading to quick repairs and happy customers.<br />
Driverless Cars<br />
According to Juniper Research, by 2025 there will be 20 million driverless cars on roads around the world, becoming most<br />
popular in North America and Western Europe by 2021. For manufacturers, this new development could be especially beneficial<br />
to field service.<br />
Driverless vehicles mean technicians can multitask – something that they can’t (or at least shouldn’t) do behind the wheel today.<br />
Multitasking allows technicians to use their field service app to ensure the upcoming appointment is as efficient as possible<br />
while en-route to the call – reading up on customer history, service part inventory and equipment data – so that the technician<br />
walks into the appointment ready to make the repair quickly and successfully, thus improving the customer experience and<br />
maximizing uptime.<br />
In the workshop, we found that current adoption is way <strong>of</strong>f from the future state predicted by Juniper Research. Only about 5%<br />
<strong>of</strong> the group were actively planning for this technology – but the good news is that many were interested in its potential.<br />
However, with the potential also comes concern: With driverless cars being relatively new on all fronts, lots <strong>of</strong> questions around<br />
insurance, liability and costs still remain.<br />
Driverless cars could be the answer<br />
to optimized routes in field service.<br />
But driverless cars could be the answer to finding the most<br />
optimized routes in field service thanks to the following benefits:<br />
• Time optimization <strong>of</strong> the end-to-end service call.<br />
• Cost reduction for fleet maintenance.<br />
• Reduction in accidents.<br />
• More service calls per day per technician.<br />
• Shared vehicles.<br />
The biggest concern here is adoption: many<br />
believe the technological advances are outpacing<br />
the ability to implement it – especially when talking<br />
about giant corporations where implementing a<br />
major shift like this is a heavy lift. But with the<br />
theme <strong>of</strong> the entire conference being innovation,<br />
we believe the idea <strong>of</strong> business transformation will<br />
evolve alongside the technology.<br />
Orange Paper | <strong>State</strong> <strong>of</strong> <strong>Emerging</strong> <strong>Tech</strong> in Field Service
Drones<br />
Drones: you’ve seen them at high school sporting events, outdoor concerts or even in large scale photography settings. But for<br />
field service, specifically, there are both immediate and long-term benefits <strong>of</strong> drone technology.<br />
As for right now? Drones can be used as a means <strong>of</strong> diagnosing issues on large-scale equipment that’s difficult for people to<br />
physically inspect, like say, oil rigs. This means less risk for the field service technician, as drones can help them survey large or<br />
hard-to-reach areas without putting themselves in dangerous situations. Or, they can be used in warehouses to retrieve service<br />
parts, like they currently do at Amazon, making product uptime and repair efficiency the ultimate priority.<br />
Of the group in the workshop, a portion <strong>of</strong> the companies are using drones in their businesses today – but not so much in a<br />
field service use case. Drones have been a huge asset in a surveying aspect – used to see overhead views <strong>of</strong> construction<br />
space, roadways, damage assessment, and seeing where their equipment is located in giant work areas.<br />
Drones could even be used to deliver a part in the field – if a<br />
technician is on-site making a repair but doesn’t have the<br />
necessary part, a drone could bring it to them, eliminating the need<br />
to make an additional service call down the road. The possible KPI<br />
benefits include:<br />
• Increasing first time fix rates.<br />
• Decreasing carbon footprints.<br />
• Cost savings implications.<br />
• Increase <strong>of</strong> after-sales service satisfaction rates to rural areas.<br />
All <strong>of</strong> these benefits are drivers that make drones an exciting way to leverage<br />
parts supply and parts delivery in the not so distant future to improve overall<br />
customer experience and maximize product uptime.<br />
Augmented & Virtual Reality<br />
According to Foundry, a s<strong>of</strong>tware design company with expertise in emerging technology, Virtual Reality (VR) is the umbrella<br />
term for all immersive experiences, created by using real-world content, synthetic content or a hybrid <strong>of</strong> both through<br />
multimedia or computer-simulated reality. Augmented Reality (AR), however, is an overlay <strong>of</strong> content on the real world, but that<br />
content is not anchored to or part <strong>of</strong> it. The real-world content and the computer-generated content (such as sound, video,<br />
graphics or GPS data) are not able to respond to each other.<br />
Expected to be a $120B market by 2020 with 75% <strong>of</strong> the market share being owned by AR vs. VR, consumers are certainly<br />
leading the trend, with business not too far behind. But, within this particular group, the main approach that explains the lack <strong>of</strong><br />
adoption is the idea “if it isn’t broken, don’t fix it.” There are still questions around how you measure and track the success <strong>of</strong><br />
this technology, and concerns around whether the results are worth the effort definitely give pause to these emerging<br />
technologies.<br />
Only 5% <strong>of</strong> companies actively use AR and VR,<br />
but 20% see it on the roadmap <strong>of</strong> their organization.<br />
Of the workshop attendees, about 5% <strong>of</strong> companies are actively using AR and wearables, but not just in their field service<br />
processes. One company uses the technology for marketing collateral, using it to mimic the inside <strong>of</strong> their product for sales,
while others are leveraging the tech to help with the<br />
service <strong>of</strong> older products that their teams can no longer<br />
use for training.<br />
And, like any new technology, the adoption is growing.<br />
10% <strong>of</strong> attendees are beginning to experiment with AR<br />
and VR – most piloting small tests with a few dealers or<br />
regions, while about 20% see the technology on the road<br />
map after learning more about where it falls on the<br />
priority to budget spectrum. The possibilities behind AR<br />
and VR in field service have endless opportunities – it’s<br />
just up to modern organizations to embrace the<br />
innovation.<br />
From Break-fix to Uptime: <strong>Emerging</strong> <strong>Tech</strong>nology is the Solution<br />
<strong>Emerging</strong> technologies – from IoT, to drones, driverless cars, virtual reality and 3D printing – continue to impact field service.<br />
The 3D printing industry alone is anticipated to grow by more than 31% before 2020, generating more than $21 billion in global<br />
revenue. And, as these technologies evolve and new trends emerge, field service pr<strong>of</strong>essionals must be equipped to use them<br />
to their advantage to become more efficient and effective.<br />
The adoption <strong>of</strong> new technologies and strategies doesn’t happen overnight — you have to start by influencing from within to, in<br />
turn, better serve your customers. This transformation is all about leveraging your own people to drive a better experience for<br />
the customer. Embracing change can be harder than rolling out a brand new process, so it’s important to recognize milestones<br />
along the way. Support is the most important part <strong>of</strong> leading people through the change, and sustainable change starts by<br />
connecting people with process.<br />
All <strong>of</strong> these trends provide opportunities for field service technicians to do their jobs more efficiently and effectively, and for<br />
manufacturers to create that competitive edge with their service organization. Today’s most successful companies are looking<br />
beyond the new product side <strong>of</strong> their businesses and shifting the way they view post-sales service, implementing servicefocused<br />
growth strategies and optimizing service operations.<br />
And as organizations continue to improve their current operations, optimize their service processes, and prep their<br />
organizations for new advancements, the shift from a break-fix field service model to a world focused on maximized uptime will<br />
happen thanks to the emerging technology <strong>of</strong> today.<br />
Orange Paper | <strong>State</strong> <strong>of</strong> <strong>Emerging</strong> <strong>Tech</strong> in Field Service
About Syncron<br />
s<br />
Syncron empowers the world’s leading manufacturers to maximize product uptime and deliver exceptional after-sales service<br />
experiences, while driving significant revenue and pr<strong>of</strong>it improvements. From industry leading investments in research and<br />
development, to providing the fastest time-to-value, Syncron’s award-winning, cloud-based service parts inventory, price, order<br />
and uptime management solutions are designed to continually exceed customer expectations. Top brands from around the world<br />
trust Syncron to transform their after-sales service operations into competitive differentiators.<br />
For more information, visit Syncron.com
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