Mega Trends for Chief Service Officers: 3 Long-Term Trends and How to Take Advantage

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As heads of their organizations' field service operations, chief service officers already have a lot on their plate. The past year hasn't made their jobs any easier, either.

During the COVID-19 pandemic, many field service operations were forced to adapt to keep both their customers and their staff safe from infection. This required them to shift many of their operations to virtual ones and spurred an increase in organizations' digital transformation.

But with disruption often comes innovation. Field service is on the cusp of change once again, as advanced wireless networks and industry 4.0 technologies reach a level of maturity that will support new processes and business models. Moving forward, here are the most significant long-term trends chief service officers need to be aware of.

Predictive Maintenance

Predictive maintenance has long been a priority for field service organizations, but only in recent years has it become feasible. That's because field service organizations are now deploying the Internet of Things (IoT) technology, network infrastructure, and computing solutions that make it possible.

According to Hitachi Solutions, "Predictive maintenance refers to the idea of using artificial intelligence (AI), machine learning, and analytics to predict equipment failures or challenges before they happen." This enables the field service organization to take preventative measures, avoid unexpected equipment failure, and significantly decrease maintenance costs.

At the core of this capability are IoT-enabled sensors that proactively monitor the health of deployed assets, such as machines, computers, and other types of devices. Using the data collected remotely by these sensors, an AI can predict when a machine will need to be serviced based on the operational parameters it receives.

For example, if a machine has been operating at full productivity for months, but that productivity begins to wane based on readings from the IoT sensors, the AI can automatically create a work order for maintenance on the machine. This prevents costly visits in the future and reduces the likelihood of equipment downtime.

Virtual and Remote Diagnosis and Service

Similarly, many field service organizations are relying on connected devices to engage in virtual and remote services. IoT-enabled tools can run diagnostics on assets that are deployed thousands of miles away. Using automation, field technicians can receive specifications about what needs to be fixed before they even reach the job site.

This way, technicians are well-prepared for the service appointment. Instead of diagnosing problems by hand while on-site, they can set to work fixing the problem immediately, reducing lead time, and improving first-time fix rates.

Virtual and remote services are also becoming the norm across field service organizations. For example, customers can be connected to a knowledge base to engage in troubleshooting activities. This can prevent unnecessary deployments of technicians and reduce the time it takes to fix a problem.

Furthermore, both customers and field service technicians alike can engage with remote assistance tools to obtain the perspective of remote experts on a specific problem. Using AR technology, the remote expert can even share important data, diagrams, and "how-to" instructions to make fixing problems fast and easy.

The Outcome-as-a-Service Business Model

All these capabilities contribute to what will be the next phase of field service operations: The Outcome-as-a-Service business model.

The old business model saw manufacturers selling an asset as their product and a service agreement as an additional feature of the transaction. In the Outcome-as-a-Service model, the customer's outcomes from using the asset are the product.

Instead of selling devices, manufacturers can sell agreements for guaranteed uptime of their assets. In other words, outcome-based contracts sell results to customers instead of a physical product and a promise of good customer service. Naturally, field service organizations must be able to live up to these contracts, so the technologies and capabilities that support them must be in place first.

Don't Miss the Next Field Service Event

Chief service officers have taken significant strides in managing the transformations of their service functions. More and more, field service operations are becoming well-equipped to meet the high demands of their customers and enact the next generation of outcome-based service contracts.

But the field service landscape is constantly evolving. In the coming years, field service leaders must be able to stay competitive amidst a business environment that is constantly evolving. New technologies, capabilities, and operational processes are on the horizon, and what organizations do now will determine their success in years to come.

If you're preparing for the future of field service, don't miss the next virtual event in the Field Service conference series, happening from April 27^th to April 29^th this year. Visit the Field Service Events page to register for free.