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Field Service
Mobile Opportunities
An ArcStream Solutions White Paper
Heading into a new century, the field service business is thriving.
Increasingly complex products and equipment, rising performance
expectations and a growing realization of the value of customer
satisfaction equate to a burgeoning demand for field service technicians.
Despite attempts by manufacturers and resellers to make products amenable
to user-based repair, companies and consumers have little desire or time
to maintain and repair complex equipment, preferring to outsource these
functions instead. Today, in the US alone, there are approximately 500,000
organizations providing some form of field service, staffed with roughly
2.3 million field service workers, 5% more than a decade ago. In 2000, the
field service business accounted for $192 million in revenues, and it is
expected to grow 9% over the next 5 years.1
As they confront this swelling demand, field service organizations must
also deal with mounting internal pressures. Like every other business,
field service must find ways to decrease operating costs, improve
profitability, increase customer satisfaction and even enhance revenues
where possible. However, many field service organizations are hampered in
their ability to meet these goals by a lack of automation, connectivity
and integration in their processes and systems. Often viewed in the past
as a low-visibility, back-office function, many field service
organizations have not received the level of investment necessary to keep
pace with changing and heightened service demands. Outdated processes,
strained scheduling capabilities, spotty access to customer data, reliance
on paper forms, and parts shortages plague many field service
organizations, and lead to lower technician productivity, customer
dissatisfaction and lost opportunities to capture follow-on business and
revenues.
Field service organizations can surmount these obstacles through
selective application of new and exciting technologies. From software
systems to mobile devices and wireless applications, the leading field
service organizations are already transforming their operations and seeing
dramatic business results. Sophisticated workflow management, business
intelligence, logistics and inventory tools are automating and
streamlining the field service function. Breakthrough mobile and wireless
applications now span the entire field service process. They empower field
workers by giving them better access to information from the field
including work orders, customer service history, promotions, product
specifications and parts availability. They let technicians perform their
work more effectively and even cross-sell other solutions. Finally,
tighter integration between field service applications and other company
systems streamlines service delivery and enables more effective planning,
forecasting, accounting and product design.
This paper makes the case for bringing field service organizations into
the 21st century. It starts by examining what is involved in
field service, explores opportunities to enhance revenues, reduce costs
and increase customer satisfaction through improved field service, and
outlines strategic and technical considerations for bringing these goals
to fruition in your field service organization.
What is Field Service?
There are thousands of mobile workers performing a wide range of
business functions. This field force is composed of sales representatives,
service technicians, inspectors and doctors on rounds. In this paper, we
concentrate on one aspect of the field force -- those organizations
dedicated to delivering field service. Field service, for purposes of this
paper, is defined as a technician performing repair or installation work
at a customer site. It may also include regularly scheduled preventive
maintenance work. Service is prioritized and priced according to the
customer's warranty or service level agreement and the severity of the
problem.
Field service organizations vary greatly in size, target industries and
supported technologies. For large companies like AT&T and IBM, the
field service force numbers in the thousands whereas smaller companies may
have only a few service crews. Although every industry relies on field
service to some degree, for industries such as high technology, utilities,
telecommunications, insurance and aerospace, field service is critical.
Equipment from computers and peripherals to building systems, office
equipment and medical equipment depend on field service. Sometimes, this
equipment is the lifeblood of a company, and any downtime or service
interruptions can significantly impair operations or even endanger human
life and safety.
The Field Service Process
A typical field service process is illustrated below, consisting of 7
steps and involving multiple parties and activities. Although the exact
details of each step may vary by field service organization, there are
many common activities and issues. At each step, selective application of
technology, especially mobile and wireless improvements, can produce
immeasurable benefits.
Typical Field Service Process
- Customer Call
. A customer call initiates the field service
process. Customer information and problem description are logged, and
customer entitlement is verified. If the problem cannot be resolved over
the phone, a work order is created and an appointment is scheduled. The
work order opened in this step is tracked and managed until closure. Common
issues include the time to answer a call; the ability to access
customer service history; the accuracy of entitlement checks; the
ability of the call taker to resolve and investigate problems; and the
ability of the call taker to contact technicians directly. Mobile
improvements allow call takers to communicate directly with
technicians in the field, if needed.
- Dispatch
. The dispatch step assigns pending work orders to
technicians, taking into account the customer's entitlement, priority of
the problem and technician expertise and route coverage. Dispatchers may
also order and/or ship needed parts directly to the customer site for
installation by a technician. Common issues include the ability
to assign resources and schedule appointments optimally; technician time
involved in traveling to and from dispatch site; dispatcher's ability to
track whereabouts of technicians; and the ability to re-adjust
assignments in real-time to accommodate schedule changes. Mobile
improvements allow dispatchers to transmit schedule information
directly to technicians, eliminating trips to the dispatch site to pick
up assignments. They also allow dispatchers to adjust schedules in real
time, convey adjustments to technicians in the field, track the
technicians' location and vary assignments based on availability.
- Drive to site
. Assignment or schedule in hand, the
technician travels to each customer site, often notifying the customer
of an estimated arrival time while enroute. Common issues include
the technician's ability to locate the customer site; communication and
coordination between technician, dispatcher and customer; ability to
notify of delays, arrival times, etc. Mobile improvements allow
technicians to look up directions to a customer's site and communicate
estimated arrival time to the customer and dispatch center while enroute.
- Fulfill order/repair
. The technician performs the necessary
work at the customer site, installing equipment or diagnosing and
repairing problems. To perform the work, the technician may need to
consult product manuals or a service center. If replacement parts are
required, the technician either obtains them from his vehicle stock or
orders them. Common issues include the technician's ability to
access customer repair history; capturing labor and parts used during
the repair/installation; access to product specifications; availability
of replacement parts; access to parts inventory and the ability to order
parts/update parts inventory in real-time. Mobile improvements
allow technicians to access needed information from the field including
customer service history, equipment repair records and product diagrams,
reducing calls to dispatchers or manufacturers. Wireless applications
guide technicians through their work, automatically recording time and
parts used during the service call. They also provide access to
inventory data, including parts availability, and permit technicians to
order parts/update stock records from the field.
- Inventory management
. This step coordinates the flow of good
and bad parts between warehouses, stocking centers, technician vehicles
and repair depots. It deals with parts numbering, cycle counting, bar
coding, warranty returns and parts kits. Common issues include
the ability to properly track and locate inventory; investment in and
control of assets; maintenance of proper stocking levels; ability to
interact in real-time with requests from the field; and ability to
forecast service parts demand. Mobile improvements allow field
service organizations to better manage their inventory. Giving
technicians access to real time inventory information, and the ability
to order parts from the field, reduces the tendency to stockpile parts
in vehicles. Using a combination of wireless applications, bar coding
and scanners, technicians can transmit parts information in real time,
including parts used or parts returned for repair, allowing field
service organizations to have an accurate, current view of asset
stocking levels and location.
- Close work order
. After performing work on site, the
technician will either close the work order, signifying that all work is
complete, or schedule another appointment to finish any remaining work.
In closing the work order, the technician captures data that feeds into
customer history records, billing, performance measurement, product
design and sales forecasting. Common issues include the time to
fill out paperwork; time to re-key the data; accuracy of data; obtaining
customer sign-off and approval of work completed; and integration
between systems. Mobile improvements allow technicians to obtain
customer signatures electronically, close work orders, and input/update
all necessary data including service records and billing information.
- Time report/billing
. In the final step of the process, the
technician's time and materials information is submitted to the
accounting department. An invoice is sent to the customer, consistent
with the customer's entitlements and pricing schemes. Common issues
include the time lag between the technician's paper submission and
re-keying of data; the length of the billing and collections cycle; the
ability to access and integrate diverse data (customer entitlements,
labor used, parts used, parts returned, etc.) to produce an accurate
invoice. Mobile improvements allow the technician to submit work
order information in electronic format directly from the field to
headquarters for processing, and, in some cases, to generate an invoice
and accept payment while at the customer site.
Pursuing Field Service Opportunities
The field service process is quite complicated, given the number of
activities, dependencies, parties, functions, software systems and
equipment involved. Managing this process is difficult, requiring careful
coordination and timely access to information from disparate sources. Many
existing field service processes evolved from necessity rather than
planning, resulting in a mixture of manual and inadequately integrated
automated processes. These processes work, but offer many opportunities
for high return improvements. Moreover, even well designed field service
processes can reap significant benefits from some of the latest advances
in technology. For example, Sears, Roebuck and Co. was able to improve the
efficiency and responsiveness of its field service unit by equipping its
12,000 technicians with mobile devices and wireless access to route
information, schedule changes, inventory, pricing and other data.
Field Service Opportunities
Field service opportunities fall into three categories: enhancing
revenues, reducing costs and increasing
customer satisfaction. Field service can enhance revenues by
capturing overlooked service revenues, cross-selling other products and
services, and using superior service as a differentiator and selling
point. Cost savings result when technology is applied to improve
technician productivity, manage assets more tightly, increase the
efficiency of the field service process and integrate field service data
and functions with other corporate systems. Being more responsive to
customers, pinpointing more accurate arrival times, delivering more
predictable service and achieving a higher first-visit completion rate
helps to boost customer satisfaction and create repeat buyers.
To start, field service organizations must decide which opportunities
to pursue. While some improvements positively impact all three categories,
generally the greatest benefits are gained by optimizing one objective.
For example, a company that decides to focus on increasing customer
satisfaction may need to invest in infrastructure upgrades, mobile devices
and staff training. These investments may increase, rather than decrease,
costs in the short term, although they should enhance revenues in the long
term.
An organization may start with an improvement objective in mind, or may
perform an analysis to identify the strategy with the highest potential
return. Depending on the strategy, a mixture of technology implementation,
process change and perhaps organizational re-alignment will be required.
Technology, especially mobile and wireless technology, is the critical
enabler for all of these opportunities, automating field service
functions, connecting participants, providing access to information, and
integrating field service functions with each other, and with other
company functions.
Enhancing Revenues
Companies are increasingly modeling their field service organizations
as profit centers. However, even field service organizations currently
operating as cost centers stand to benefit by enlisting their staff in
revenue-enhancing opportunities. Field service organizations can
contribute to their company's revenue streams in three basic ways: by
capturing more service revenues, by cross-selling other products and/or
services and by using superior service as a selling point to drive more
sales.
Capturing overlooked service revenues
Field service organizations generate service revenues directly from
labor and materials, replacement parts, service agreements, extended
warranties and ancillary services. One way to grow these revenues is to
ensure that no billable charges are lost or overlooked, and that invoices
are as accurate as possible. By arming technicians with mobile devices and
wireless applications, they can more precisely record work performed, time
spent and parts used. They can capture this information in real time, as
work is being performed, and forward the data via a wireless connection to
central billing systems. By integrating billing systems with customer
entitlement records, field service organizations can ensure that customers
are charged where appropriate for time and materials used.
Cross-selling products and/or services
Each customer contact point in the field service process represents an
opportunity to cross-sell and up-sell accessories, upgrades, and
additional products and services. By relying on field service employees
such as call takers and technicians, field service organizations can use a
"soft sell" approach with customers and capitalize on fortuitous
sales opportunities. To have this approach work, call takers and
technicians must be trained in recognizing sales opportunities and must
have access to integrated customer, product and sales data to make
targeted recommendations. Technicians will need mobile devices and
wireless applications to access this information from the field. Business
intelligence systems can alert employees of potential sales opportunities
in an account (aging equipment, imminently expiring warranties,
appropriate accessories, etc.).
Using service as a selling point
It is true that good products lead to happy customers and repeat sales.
But even good products can require service. High quality service at an
acceptable price also delights customers, giving them value that they can
appreciate. The more responsive and consistent service is, and the higher
the quality of repairs, the more satisfied customers will become. In this
case, service becomes a marketing differentiator that can be used to drive
in more sales. To reach this state, a field service organization must
commit to improving the effectiveness of its field service delivery, and
must be able to measure its performance and proactively adjust service
levels. Many of the techniques described in the subsequent sections of
this paper are exactly the types of improvements that lead to higher
quality service and compelling marketing positions.
Reducing Costs
Cost savings result from improving the productivity and effectiveness
of technicians, call takers and dispatchers. Moreover, by closely managing
parts and equipment inventory, field service organizations can
significantly decrease the amount of capital invested in these assets.
Operational overhead can be reduced by automating and streamlining the
process to improve its overall efficiency, and by integrating the various
process components with each other and other company applications and
functions.
Improving technician productivity
Making more effective use of technicians can produce considerable
cost savings. Field service organizations can improve overall technician
utilization through better scheduling, and by enabling dispatchers to
make real-time schedule adjustments and convey them to technicians in
the field. But an even more dramatic way to boost productivity is to
empower technicians to perform their field work more effectively, as
illustrated above, using a combination of mobile solutions and wireless
applications. These advances give technicians access to the information
they need while in the field, including customer service history,
equipment repair records, product diagrams and schematics, inventory and
parts availability, and even directions and maps to customer sites.
Wireless applications automate technician tasks, reduce paperwork, track
labor and parts used, and expedite diagnosis and repair. Mobile devices
also let technicians stay in close touch with dispatchers; they can
receive schedules and adjustments, and transmit closed work orders
without having to travel to the dispatch center to pick up and drop off
paperwork.
 Controlling
Assets
Field service organizations normally invest significant capital in
parts and equipment but find it difficult to account for these assets
because they are distributed among stocking centers, repair depots and
technician vehicles. Few service organizations have systems capable of
managing parts logistics in real time. As a consequence, inefficiencies
are rife. Poor logistics lead to uneven stocking levels. With
approximately 70% of service calls requiring a part,1 high
parts unavailability destroys technician productivity as multiple visits
are needed to complete work. But overstocking parts is detrimental too,
tying up capital in non-income producing investments.
The way to improve control over these assets is through technology.
Tightly integrated logistics, inventory management, and service parts
planning systems provide better control over inventory and can lower
total inventory costs by a minimum of 25 to 35%.1 Wireless
applications are instrumental in achieving these gains. With access to
real time inventory information and the ability to order parts from the
field, technicians are less likely to stockpile parts in their vehicles.
Wireless applications, combined with bar coding, scanners and other
tracking techniques, give companies an accurate perspective on inventory
levels and asset locations.
Increasing Process Efficiency
Increasing the efficiency of the field service process not only
lowers the administrative overhead of the service organization but also
reduces the overall cost to deliver service. Software, especially
wireless applications, can automate manual processes, eliminate
paperwork and reduce the time lag between process steps. Technology
improves the flow of information from step to step, giving workers more
timely access to current data and streamlining the entire process.
Mobile devices lead to faster, more efficient delivery of service by
connecting technicians with dispatchers and giving technicians access to
needed information in the field. For example, Con Edison, the
electricity provider to most of New York city, was able to deploy its
field workers more efficiently and effectively by giving them access to
complete electrical grid information, including status and alarms, from
handheld devices in the field. Wireless applications have also been used
to shorten billing and collection cycles and improve cash flow by
allowing technicians to complete work orders in the field, submit time
and materials reports in real time, and even generate orders, obtain
customer signatures and collect payments on site. Giving customers
access to self-service and self-help features such as appointment
scheduling and Web-based FAQs can reduce the burden on call takers and
dispatchers.
Integration
Optimizing the field service process requires a high degree of
coordination and timely access to information from a variety of sources.
In many cases, however, companies have vast collections of valuable data
scattered across "stovepipe" systems including front-end
(order entry, customer care, billing) and back-end (scheduling,
inventory management, supply chain management, accounting) applications.
Finding and combining that data in creative ways transforms it into
information that can be used to generate breakthrough improvements.
Integrating the systems, applications, components and data of the
field service process enables the types of productivity and efficiency
improvements outlined above. For example, integrating wireless field
applications with billing systems closes the loop between service
delivery and invoicing, and shortens the collection cycle. To receive
even greater benefits, companies must integrate field service components
with other company applications and functions. For example, sales people
benefit from access to accurate customer service records and repair
histories when contacting customers for renewals and add-on sales.
Product design and quality assurance efforts benefit from access to
defect information gathered in the field. Logistics, inventory
management and service parts planning functions benefit from access to
parts usage and repair statistics from the field.
Increasing Customer Satisfaction
Satisfied customers are valuable business assets. Loyal customers
become repeat buyers; they refer others to the company's products and
services; and the cost to maintain these customers is generally lower than
the cost to acquire new ones. Customer satisfaction is influenced by two
primary factors: the quality of the product purchased and the quality of
the service rendered. Although field service organizations have little
direct influence over the quality of the product sold, poor service can
make even a good product look bad. Similarly, excellent service can help
overcome the limitations of a mediocre product.
Field service organizations can do several things to improve customers'
perception of the quality of service. Chief among these are improving the
responsiveness of the field service unit, ensuring that services are
delivered with a high degree of predictability and increasing the odds
that work will be completed in a single visit.
Improving responsiveness
Customers generally want quick response to their demands. While
responsiveness depends greatly on the capacity of the organization, more
productive and efficient technicians increase throughput, allowing more
customers to be serviced sooner. Mobile devices and wireless
applications can deliver these benefits. They enable technicians to
notify customers of estimated arrival times and delays, and allow
dispatchers to adjust schedules in real time. Other technology-based
improvements, such as flexibly scheduling systems and customer
self-service applications, can further speed service delivery and lower
response time.
Ensuring predictability
Customers want predictable service. They want call takers and
technicians to have access to their service histories and work orders,
and technicians to arrive at the appointed time equipped with the parts
and tools needed to do the job. They expect reliable and error-free
repairs and installations. Technology can help service organizations
meet these expectations. Software applications give call takers and
technicians access to repair histories; wireless access to maps and
directions keep technicians on schedule; and mobile devices let
technicians keep customers abreast of scheduling issues. Wireless
applications can also guide technicians through repairs, and provide
access to product manuals, thereby ensuring more consistent service.
Increasing single-visit completion rates
Related to responsiveness is the ability of the technician to
complete all work in a single visit. Various factors influence this
ability -- the expertise of the technician, access to repair histories,
parts availability and access to product specifications. Technology can
help in all of these areas. Scheduling systems can ensure that assigned
technicians have the expertise needed to perform the work. Mobile
devices and wireless applications give technicians access to customer
service history, equipment repair records, product diagrams and manuals,
parts data and other information needed to complete their work in a
single visit.
Strategic and Technical Considerations
The opportunities described above are compelling, but how does a field
service organization decide where to start? Some organizations may already
have identified their objectives; others may need to perform an analysis
to choose a strategy that will provide the highest return. For example,
some organizations with well-designed and highly automated processes may
be looking for point solutions; they may want to achieve even greater
benefits by adding mobile and wireless capabilities. Other organizations
may want to enhance the efficiency of their entire process, and are
willing to make much larger investments, or even start from scratch, to do
so.
Coming up with a sound strategy is an iterative process. It requires an
understanding of the current state of the organization -- its level of
automation, process flows and integration -- and the desired state, based
on identified business objectives. Many organizations have already made
considerable investments in their field process systems and
infrastructure, and to the extent possible, these components should be
leveraged in the strategy plan. In addition, service organizations should
consider a phased approach for achieving their goals. A phased approach is
often advisable because it allows service organizations to break down the
job into manageable pieces, and capture some portion of benefits before
proceeding to the next phase. It also allows employees to digest changes
and become proficient in new processes and technologies in a more
controlled manner.
The field service process is complex, and applying the right mix of
technology, software, hardware, mobile devices, wireless applications and
integration is a complicated affair. Few companies have the internal
expertise to manage such a project, and most will need to select a partner
to help devise and implement their strategy.
An ideal partner will have expertise in field service. They will
understand your business objectives and the unique challenges and issues
affecting your profession. The right partner must also have the technical
expertise, and a vendor-neutral mindset, to assemble and integrate the
right mix of best-of-breed solutions. A number of implementation options
are available, including software packages, ASP offerings, custom
development, wireless applications and mobile devices. Look for a partner
that is fluent in these options; that understands the strengths and
drawbacks of each one; that knows which pieces to combine to provide the
best solution for your situation; and that can integrate the solution with
your other enterprise applications and functions to deliver maximum
benefits.
In Conclusion
The good news is that the field service business is thriving. The even
better news is that the profession has a real opportunity to provide
significant contributions to the bottom line by improving its
effectiveness at enhancing revenues, reducing costs and increasing
customer satisfaction. These improvements are possible thanks to exciting
new technologies, particularly in the area of mobile solutions and
wireless applications.
From initial customer call, to closing of work orders and customer
invoicing, every step in the field service process stands to reap
immeasurable benefits. Whether your field service organization already
enjoys a high degree of automation and efficiency and is looking for
incremental benefits, or whether you are looking for more substantial
upgrades and rewards, there are a variety of high-payback technical
solutions available today. Of these solutions, wireless applications are
providing perhaps the most dramatic returns in field worker productivity,
process efficiency and revenue enhancing efforts. Why not take advantage
of these opportunities today?
Footnotes
1 Source: D.F. Blumberg Associates, Ft. Washington, PA.
Copyright 2001
ArcStream Solutions. All rights reserved. For more information on
ArcStream Solutions, visit www.arcstreamsolutions.com.
To download a pdf version of this white paper, visit www.arcstreamsolutions.com/resources/whitepapers.asp
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