The 2012 Field Service Benchmarking Report
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1 The 12 Field Service Benchmarking Report
2 # Table of Contents Introduction...2 Primary Research Methodology...2 Research Findings...3 About Field Service...11 WBR's Field Service conference is one of the best professional forums I have attended. It's impeccably organized in terms of the form (facilities, technical support, communications, etc.) and the content (a distinguished list of speakers, high quality presentations, facilitated professional exchange). I've enjoyed a number of quite informative (and enlightening!) discussions with my colleagues across the industry. Overall, the conference was a very useful and meaningful spending of my time. - Vasiliy V. Krivtsov, Ph.D., Ford Technical Leader - Reliability & Statistical Analysis, Office of the Technical Fellow for Quality Engineering. Ford The 12 Field Service Benchmarking Report From April 16-19, 12, the Field Service team presented a benchmarking questionnaire to its audience of more than 0 attendees at its annual Field Service conference, this year held in Las Vegas. The goal of the session was to provide participants with a better understanding of how their service organizations stacked up against the rest of the industry regarding level of investment into service organizations, future investment into research and development, current growth strategies, new product development, workforce management strategies and best-in-class strategies for training and development. Approximately 60 people responded to the comprehensive survey. Their roles ranged from Senior Vice President, Customer Support to Vice President, Field Service, to Director of Customer Advocacy and more, and they came from companies as diverse as Kodak, Siemens and Pitney Bowes. The participants included service and support executives from medical device manufacturing, industrial manufacturing, telecommunication, semiconductor, computer/networking, aerospace and automotive industries. These executives shared valuable insight into their service operations to create an effective benchmark for the industry using clear, consistent definitions to assist in outlining performance and future service initiatives. See how your firm compares to your peers and competitors by viewing the results throughout this report. Primary Research Methodology The purpose of this study is to ascertain the technology spending habits, industry trends and future outlook from a sample of cross-industry, cross vertical manufacturing executives. Respondents were anonymous, and responses were gathered during the Field Service conference held in April The 12 Field Service Benchmarking Report
3 Benchmarking Survey Field Service 12 was my first event with WBR. It was a great conference! The speakers, panel members and round table participants were insightful and presented thought-provoking material which will help all of us stay on the cutting edge of Service Excellence. It was a good opportunity to network with peers and suppliers from throughout North America. I will definitely be back. - Chris Westlake, Director of Service, Hach Company / Danaher 1 2 What is the primary product that you service? % 34% Other 15% Construction/Industrial products 15% Imaging, medical, scientific % Transportation % Commercial appliances and electronics 5% Commercial Computers 5% Enterprise network support services (Electrical, security, telecom, cable, Internet) 3% Domestic appliances and electronics 2% Utilities 0% Domestic Computers What percentage of service costs do your Field Management systems require? service Construction, Industrial, Medical or Transportation products The majority of the surveyed companies do not require more than % of service costs for Field Management 0-% 45% of participants said their Field Management Systems require 0-% of service costs 45% 24% 14% 12% 6% 0-% of service cost -% of service cost -30% of service cost 50% or higher of service cost 30-% of service cost % -50% of service cost Percentage of service costs (%) The 12 Field Service Benchmarking Report
4 89% of the surveyed companies said Parts Management Systems do not require more than 30% of service costs 3 Benchmarking Survey What percentage of service costs do your Parts Management systems require? 0-% 47% of companies said their Parts Management Systems require 0-% of service costs 47% 0-% of service costs 22% -% of service costs % -30% of service costs 8% 30-% of service costs 4% -50% of service costs 0% 50% or higher of service costs 4 What percent of company revenue comes from services? 39% of respondents, said that 25% or more of company revenues come from service. 25% or more of company revenues comes from Services 42% 25% or higher of revenues from Services 17% -15% of revenues from Services 11% 5-% of revenues from Services 11% 15-% of revenues from Services 11% -25% of revenues from Services 8% 0-5% of revenues from Services 30 4 The 12 Field Service Benchmarking Report
5 Benchmarking Survey 5 What growth strategies are working for you today? 66% of companies said their Training/Development growth strategies are working today 66% Training/Development 63% Value-add Services 46% Recruiting/Talent Management 46% Automation 16% Outsourcing 2% Outsourcing your services to other OEM s Over 90% of the surveyed companies do not allocate more than % of revenue to Service R&D. 6 What percentage of service reveune is allocated to service R&D? 0-% of service revenue is allocated to service R&D 73% 0-% of service revenue % -% of service revenue 5% -30% of service revenue 2% 30-% of service revenue 0% -50% of service revenue 0% 50% of service revenue or higher The 12 Field Service Benchmarking Report
6 Only 2 companies surveyed currently have a formal strategy in the works for motivating/ incentivizing parts reps to offer services 7 Benchmarking Survey Do you have a strategy in place to motivate or incentivize parts sales reps to offer services? 62% of people said they either have a strategy in place or are planning to execute one soon 38% No 36% Yes, strategy(s) being implemented 22% No, but we are working on this 4% Yes, strategy in planning More than 55% survey said they either have, or are working on implementing strategies to motivate field reps to sell parts. 8 Do you have a strategy in place to motivate field service reps to sell parts? 57% of companies said they either have a strategy in place to motivate sales reps to sell parts or are planning to execute one soon 44% No 35% Yes, strategy(s) being implemented % No, but we are working on this 2% Yes, strategy in planning 6 The 12 Field Service Benchmarking Report
7 Benchmarking Survey 9 What percentage of new product development budget is allocated to R&D for advanced troubleshooting tools for field forces? None of the surveyed companies allocate more than 50% to R&D for advanced troubleshooting tools. 0-% 90% of respondents said they would allocate less than % for R&D 57% 33% 6% 2% 2% 0% 0-5% of budget 5-% of budget -30% of budget 30-% of budgetet -50% of budget 50% of budget Percentage of product development budget (%) 36% of surveyed companies require between and 30 percent of overall costs for paid overtime. Of your total field service cost structure, what percentage does paid overtime require? 5-% 47% of companies said their field service cost structure requires 5-% of paid overtime 47% 5-% of paid overtime 43% 0-5% of paid overtime 8% -30% of paid overtime 2% 30% of paid overtime or higher 7 The 12 Field Service Benchmarking Report
8 Benchmarking Survey 11 What percent of incoming service requests are resolved through Remote Assistance? According to those companies surveyed, the majority of service requests are NOT resolved through Remote Assistance. Less than % of service requests are resolved through Remote Assistance, according to 71% of survey respondents. 43% 0-5% of incoming service requests resolved 28% 5-% of incoming service requests resolved 13% 30-% of incoming service requests resolved 8% -30% of incoming service requests resolved 8% 50% of incoming service requests or higher resolved 0% -50% of incoming service requests resolved 12 Through which of these methods are you delivering training content? Traditional media and classroom/ lecture methods go hand-in-hand. Classroom/lecture Traditional media Online courses Web-based clips Live streaming Other 85% 83% 62% 53% 47% 2% 8 The 12 Field Service Benchmarking Report
9 Benchmarking Survey 13 Which of the following technologies do you plan to invest in over the next 6-12 months? The surveyed companies are mainly focused on investing in tablet technologies within the next year. 58% Tablets 58% of participants are planning to invest in Tablets over the next 6-12 months. 58% 44% 42% 38% 26% 15% 9% Tablet Remote Diagnostics Smartphone Call Center Technologies CRM PC Other (please list) "The advantage of Field Service is that you get a window into top processes, people, tools and initiatives in the space. You have the opportunity to benchmark best practices and new ideas from a cross-industry perspective." Dick Frishkorn, Director Global Commercial Field Service, GE Aircraft Engines "The WBR Field Service conference is a great event. This gathering provides an opportunity to confirm your strategy and direction as well as collect new insightful ideas around service. If you have not participated in this service conference, you are missing out on a real opportunity to learn from the best!" Frank DiOrio, Vice President, Service Operations, Pitney Bowes - Document Messaging Technologies 9 The 12 Field Service Benchmarking Report
10 Benchmarking Survey 14 Where are the service markets going over the next 5 years and why? Common responses include: Continued growth Generate revenue Techonology driven Customer self service Cloud based systems remote diagnostics field service automation More integration with customer. Focus on core deliverables for business growth Responses More 3rd Party or Multi-Vendor Service to generate additonal revenue. Managed Services significantly increasing because requirements continue to expand Predictive maintance, BI to OLS, customer self service, software servicescloud based Remote onboard diagnostics, monitoring system health, this will reduce costs of travel to diagnose issues, then travel back with the part The service market will see increased mobility and agility due to the introduction of disruptive technologies such as the smartphone For aviation, you will see even more"power by the hour" type offerings, remote troubleshooting, diags and dispatch Managed and Professional Services; more basic product service and PM - maintenance skill gap/attrition, shift from reactive to preventative and predictive, contracts - budget predictability, more remote diagnostics and assistance; enhanced remote diagnostics similar. SNMP like data that will provide up to minute status of all components Filling a large role in driving top line Continued Growth significantly they will grow as companies invest in higher technologies and work with capital budget restrictions Very technology product driven due to the demand (gratification) for immediate information Bring Your Own Device to work will impact delivery models outsourcing of more service related activities; consolidation of service providers into adjacent space Still a strong home office support but increasingly more capability and intel being avaiable at the coal face - i.e. where the operation is actually happening More focused on increased revenue through value added services. After market parts will also play a great part of that revenue stream Consolidated workload types: combining more business scope for less diverse workforce: technology is moving knowledge fast Service markets going toward OEM's to provide service on total care packages to service and support products for a complete life cycle of the products More and more remote and automative; customers want answers to be answered quickly; they do not want to have to call in the problem Would like to see a central field service organization; more technologies available for service engineers; co-location with key customers The 12 Field Service Benchmarking Report
11 About Field Service Since 03, Field Service has been providing senior-level service and support executives with best-practice service and support strategies. Every year 0+ cross-industry executives from 15 different manufacturing verticals take time out of the office to focus on their most important challenges in improving service. From the development of people, process and technology Field Service continues to deliver key learnings and developments in all areas of service and support from first-call to delivery. With the commoditization of services across multiple industries, competition is becoming fiercer. In order for your service organization to remain competitive you need to be able to deepen your customer engagement processes and tools to adapt to today s smarter, and much more connected customers. Consequentially you need to ensure you re making it easier for customers to do business with you. As products are no longer truly unique the service to which you provide can make or break any organization and that s why Field Service provides key insights on optimizing customer and product support through remote and proactive service models. About Worldwide Business Research Worldwide Business Research (WBR) is the world's biggest large-scale conference company and part of the PLS group, one of the world's leading providers of strategic business intelligence with 16 offices worldwide. With more than 15 years of demonstrated excellence and flawless execution, WBR now delivers over 0 quality networking and content focused conferences across the globe. Each year over,000 senior executives from Fortune 00 companies attend a WBR conference From Automotive events in Bucharest to Logistics conferences in Arizona and Finance summits in Hong Kong, a WBR conference stands as a true "Who s Who" of today s corporate world. For further information, contact us: fieldservice@wbresearch.com Call: or Visit: 11 The 12 Field Service Benchmarking Report
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