Market Overview: Field Service Optimization
Field Service Next In Line for the Customer Experience Spotlight
Author: John Ragsdale, Vice President of Research, SSPA
and Joanne Weigel, Program Manager, SSPA

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Growing Market Increasingly Seen as Strategic

Field service technology is big business, with the market size of field service technology in North America estimated at over $13B for 2005 . Field service operations have long struggled for visibility and respect within most companies, with increasing technology complexity and customer expectations creating new challenges at every turn. Unlike other areas of enterprise software, large field service operations don’t have the advantage of “one stop shopping” for technology: even the largest ERP vendors continue to partner for high volume, dynamic field agent scheduling.

This is an industry ripe with innovation, for technology (sophisticated use of GPS, complex analytics for real time intelligent scheduling), work force (marketplaces for contract field agents), and even preventative maintenance (remote support and diagnostics), with Web 2.0 and an increasingly connected world creating even more innovation possibilities.

Key Business Issues

In preparation for this report, the SSPA surveyed a number of field service executives regarding their primary challenges, with responses falling into three main categories:

• Scheduling/dispatch optimization. The most commonly voiced complaint from field service executives is cost: low productivity of field agents or worse--paying some field technicians to sit idle, while other techs have more appointments than they can handle. The scheduling process can no longer be handled efficiently manually, with all the myriad of scheduling complexities: multi-vendor product training and certification, customer preferences, parts availability, current location of field resources, etc.
• Resource coverage. Having a reliable, properly trained and certified mobile workforce in every neighborhood across the country, or around the world, is another challenge voiced by members. While building a team of field service employees in metropolitan areas makes sense, having adequate field staff to cover rural areas is an ongoing challenge, and relying on unknown local contract resources to fill the void is problematic at best. And, even in metropolitan areas, having agents with the right skill sets, training or certification is an ongoing challenge.
• SLA adherence. For companies trying to differentiate on service, delivering the committed service levels is key. In the words of one member, “We lack consistency in providing service to our customers from area to area. We have SLAs, but do not consistently follow them, nor are they consistently reinforced with every customer. This tends to leave us fire fighting more than being proactive.” SLA adherence is particularly a problem when agreements include penalties for non-compliance: poor SLA performance hits the bottom line. Being able to reallocate resources in real time as delays occur is a critical goal for these companies.
• Increased supportability. There is a growing call to eliminate field service visits by factoring in increased supportability during the design & manufacturing process. These initiatives ensure that support, marketing and development work together and consider ease of maintenance or preventative field service issues when making design, manufacturing, cost and sales decisions.
• Increased revenue. Maximizing revenue by identifying the need for additional products or services while onsite is becoming a hot topic for service management. Integrating revenue generating activities into the field service visit is as easy as looking for other maintenance processes that might be needed or ensuring other OEM equipment on site is working and maintenance is current. Field agents can upsell additional products (B2C example: wave installation fee for basic cable if the consumer upgrades to premium service) or services (B2B example: onsite training and education programs), and offer management for the field is becoming more common.

Key Industries for Field Service Optimization

Field service is not just about repairing or installing hardware. The basic processes and technology described in this report are used by multiple industries for a variety of field activities, including:

• Enterprise High Tech. The installation, maintenance and repair of enterprise hardware, including servers, routers, networking equipment, etc.
• Business systems and equipment . From industrial strength imaging systems to postage meters, the systems businesses use for basic operations need installation, repair and preventative maintenance.
• Consumer appliances/electronics. The installation and maintenance of home office equipment, home electronics (such as home theatre systems) and appliances, is a growing business, as is after market warranty sales and renewals.
• Financial services/insurance. While not thought of as a typical field service industry, financial services has been increasing technology investments in field service optimization to allow home inspectors, insurance adjustors, appraisers, and other field employees to increase productivity and accuracy.
• Utilities. Another heavy industry for field service activities, utilities require installation and activation, as well as repair and sometime regular visits relating to billing (i.e., meter reading). HVAC (heating, ventilation, air conditioning) is another industry requiring field service agents, though sometimes grouped with utilities for market sizing.

Optimizing the Service Chain: Field Service Processes

Whether you are running a 5 person field service team, or a global operation with thousands of contract field agents, the basic process of the Service Chain from initial customer contact through resolution is the same, though obviously the degree of complexity at each step depends on the industry and type of field service performed. The SSPA defines the Service Chain as five major process steps, each containing multiple sub-processes. The following sections will detail the macro/micro processes.

Figure 1 Field Service Processes

Technical Support

As illustrated in the August, 2006 SSPA Insight, “Cut Field Service Costs by Leveraging KM,” optimizing the service chain begins in the technical support operation, by gathering all the required information from the customer, and attempting to solve the problem over the phone (or via chat, email, or web self-service) before dispatching a field service agent. The key subprocesses for field service that occur in the technical support center are:

• Entitlement. Identify the customer, the account, the product module, etc., and verifying whether there is an existing service contract or warranty for service is the process of entitlement. Companies that do not have a comprehensive service contract or warranty tracking system risk wasting valuable resources replacing or fixing problems for out of warranty products. For customers without a valid service contract or warranty, there may be a “pay as you go” option for service offered. For installations, or other non-repair work, the entitlement step includes verifying identify, location and billing information.

Figure 2 The Importance of Entitlement

• Problem resolution. In this process, a technical support agent attempts to resolve the problem using diagnostic tools and knowledge base content, walking the customer through recovery processes as necessary. If the problem can’t be resolved over the phone, the agent can at least identify the failing component or possibly the required parts before assigning to a field service agent for repair.

Dispatch

This is the area where much innovation within the industry is occurring, the process of identifying the right field service worker for an appointment, scheduling the visit, and notifying the field agent of the appointment. These processes may be completed by the tech support center, or the issue is routed to the field service organization where dispatchers take over. With analytics, this process is becoming more automated and more efficient, with real-time analysis helping to maximize the number of field appointments each technician can complete in a shift. Under this category, the primary subprocesses are:

• Scheduling. There are many approaches to field agent scheduling, but typically agents are routed according to location (current location or coverage area), skill set, customer preference (common for enterprise accounts), and availability. Whether this process is automated or performed manually, existing field staff schedulers are reviewed against pending service appointments, and routes are determined to allow the maximum number of appointments for each agent per shift.
• Dispatch. In this subprocess, field technicians are notified that they have been assigned an appointment. Before mobile technology, field techs would usually pick up their schedule in the morning, which listed their appointments for the day. This approach still makes sense for some field activities, particularly deliveries. For repairs and installations, this approach is problematic, because if delays occur at one appointment the agent will be late for the remaining scheduled customers. Newer technologies allow dynamic scheduling: when a field agent completes a task, they are automatically assigned the next best appointment depending on time and location, either by calling dispatch, accessing a Web link, or using a mobile device.

Routing

The routing process is a continuation of dispatch, but is performed by the field technician. This is another area where innovation has been enabling optimization, with mobile and wireless connectivity and intelligent devices allowing field techs to gather more information, in real time, while at a customer site or driving between appointments.

• Appointment details. The technician is informed of the location of the appointment, the failing component, parts needed, contact information, etc. Depending on the application and device used, service history and tech support diagnostics may be included in the details provided. The field service technician must indicate that they have accepted the appointment, either electronically, or via phone or in person, if manual scheduling and dispatch are used.
• Route planning. In the last few years, route planning has become a common feature, thanks to global positioning satellite (GPS) data being available to wireless applications. Using route planning, the field agent is given driving instructions to the next appointment based on their current location. This is useful when field technicians are not familiar with an area, or need to find alternate routes due to traffic or other obstacles.

Onsite Repair or Installation

Once onsite, the actual repair or installation work is performed. While this step varies greatly depending on industry and service issue, from a perspective of enabling technology, there are two primary subprocesses:

• Repair procedures. Field agents are highly trained, but may not encounter all hardware types or models regularly. Enabling access to diagnostic tools, repair procedures and online documentation via a web browser or wireless device allows agents to handle a wider array of technology effectively, with less time spent in training classes. According to members, there is also an increased emphasis on helping the customer contact person understand the failing component and repairs or recover procedures performed, which ensures that cases caused by end user lack of training, or issues easily resolved via self-service, are not replicated.
• Parts inventory. Parts inventory and logistics is a big category, and in large companies may be viewed as part of the supply chain, in addition or instead of the service chain. For this reason, logistics is only touched on briefly in this service centric view of field service processes. Field agents must be able to either identify where to find a needed part at a local parts depot, or order the parts to be installed at a later date.

Log Work

When the work is completed, the agent must log the work performed, including details such as time spent onsite, parts replaced, interactions with customers to be recorded in history (complaints, preferences), and any committed follow ups. In years past, this final step of a field service visit was performed at the end of the shift, or the following morning, by manually writing reports to be filed. These steps are increasingly recorded using a web browser or wireless device in real time, providing more accurate and timely information.

• Log work performed. Capturing the actual work performed is critical, in case the problem reoccurs or the customer has a service dispute. Agents usually logged actual arrival time, time elapsed while onsite, departure time, parts replaced, diagnostics, etc. Recording who the field tech spoke with is also important, along with any customer requests or complaints.
• Time and expenses. Mileage driven, time spent onsite, parts used, etc., may all be captured for travel and expense recording. If the company does not provide transportation for field workers, field staff must track expenses such as mileage for reimbursement. Parts replaced or other onsite expenses are tracked to calculate repair costs when repairs are direct billed to the customer.

Technology Overview: Leading Field Service Vendors

Technology for field service optimization is available from a variety of vendors, with solution providers falling into 3 main categories:

• Enterprise software vendors. This category of field service software has grown from two separate worlds. Enterprise CRM (customer relationship management) suites have included field service modules since the late 90s, growing out of the vendor’s technical support and contact center software. Enterprise SCM (supply chain management) suites include field service modules (often called ‘after market service’), growing out of the depot repair and parts logistics business. With the CRM and ERP markets merging (especially with Oracle’s acquisitions of PeopleSoft and Siebel), there are three main providers of front to back office software, including a complete field service offering: Amdocs, Oracle (including Oracle eBusiness Suite, PeopleSoft and Siebel products) and SAP.
• Field Service Suite vendors. Field Service specialists originally helped bridge the gap between CRM and SCM, but have now evolved into standalone field service suites. These vendors, including market leaders ClickSoftware, Indus and ServicePower, partner with enterprise software vendors, and are the products of choice for complex, dynamic scheduling for large field service organizations. Some vendors specialize in particular industries, such as Indus’ focus on service providers and utilities.
• Specialist vendors. With innovation occurring at every step of the field service process, there are a number of vendors providing ‘best of breed’ capabilities at the subprocess level. These vendors frequently partner with vendors in the other 2 categories, and sell direct to companies looking for deeper capabilities in a single area. Vendors include service contract and warranty specialist Encover; eService vendors (eGain, Kaidara, Kana, Knova, ServiceSoft, Talisma) to assist with problem diagnosis and resolution, specialists in wireless enablement (Antenna Software, EveryPath, Vettro), and GPS/location experts (Magellan, Navman).

Innovation Drives Service Chain Optimization

While some areas of customer service technology are reaching maturity, field service remains a hot area for innovation, with new technologies enabling increased optimization at several steps along the service chain. Primary areas where innovation is leading to optimization are:

• Reducing field service visits. Cutting the operating expenses for a field service organization begins before a technician is ever dispatched. Darty, a $2.75B electronics retailer in France, has eliminated many field service visits, and ensured the required visits are fast and efficient, by leveraging knowledge management and diagnostic tools in the technical support center to correctly diagnose customer problems, solve the problem on the phone if possible, and dispatch the right field tech with the right part when necessary.
• Scheduling optimization. Scheduling field service agents can be a complex proposal, especially in environments requiring that skill levels must be matched to each appointment and available spare parts inventory must be factored in. Having field service agents not working hits the company’s bottom line, while overbooking appointments impacts customer satisfaction, not to mention violating service-level agreements (SLAs) if agents are late or miss appointments entirely. To maximize efficiency, robust field service scheduling products, such as those from ClickSoftware, Indus and ServicePower, incorporate analytics to factor in customer preferences, agent skill sets and parts inventory, and create dynamic schedules which accommodate emergencies or priority customers, as well as performing ongoing schedule optimization.

More scheduling options are finding their way into customer service products, even those designed for smaller companies. While these may not meet the needs of large, complex field service organizations, for smaller field teams or local repair groups, the tools provided by your service desk or contact center software may be more than enough to meet your needs. A great example is Unipress, a primarily SME focused software vendor, whose FootPrints product grew from IT help desk roots into a broad and flexible customer service platform, complete with a scheduling option. In the new 7.5 release, Unipress offers two-way data synchronization between the service desk, desktop and mobile PIM applications, meaning field agents with wireless devices synched to Outlook will automatically receive appointment information assigned to them via FootPrints.

• Field agent productivity and accuracy. Mobile and wireless technology has changed the way many field forces operate. Using wireless devices, agents are able to accept appointments and log work performed in real time, as well as search parts inventory and use online diagnostic tools or access installation procedures, all without breaking the repair or installation flow. Field service vendors all offer mobile and wireless options, and multiple providers, such as EveryPath and Vettro, specialize in wirelessly enabling existing and home grown field service tools.

The road to wireless enabling the field workforce is not without obstacles, however. An Aberdeen study earlier this year found that more than half of the companies surveyed said cost of mobile software and devices was keeping them from full mobile enablement; a third of respondents cited integration to back office systems a major obstacle. With wireless devices evolving so rapidly, selecting a device that will be supported long enough

The SSPA Recommends

To successfully optimize the service chain, start by looking at all steps involved in servicing customers as part of a single process. When technical support and field service are organizationally and politically separate, service to customers suffers. Consider these implications on people, process and technology:

• People. First of all, increase the level of communication and collaboration between tech support, field support, and parts depot employees and management. Are employees incented similarly? Do the departments carry similar or complimentary goals? How often do these departments meet to discuss process streamlining?
• Process. Is the service chain viewed as a single process from the first customer phone call to the field service follow up satisfaction survey? Is every customer issue tracked along this process, with appropriate alarms in place to identify any issue stalled in the process? Has a clear owner of the issue been defined at every step of the process, and does the customer know who to call for updates?
• Technology. Do all participants in the service chain have visibility to issues at any stage in the process? Is information siloed, or consolidated into a single view of the customer and each issue? Have paper and manual spreadsheets and schedules been eliminated, so all data is captured and visible to others?

Automating and optimizing the service chain can be a long, complex project. Bite off small chunks, and be sure that any incremental purchases to support one or more subprocesses fit into the vision for the macro process: applications are preintegrated, partner technology is leveraged where applicable, etc.

ENDNOTES

Transforming Field-Service Operations, A.T. Kearney, Inc., 2004.

For the complete Darty case study, see the August 9, 2006, SSPA Insight, “Cut Field Service Costs by Leveraging KM.”