SERVICE ORGANIZATIONS:LEVERAGING DIGITAL TRANSFORMATION TO IMPROVE CUSTOMER SERVICE

TABLE OF CONTENTS

TECHNOLOGY IS DISRUPTIVE – AND SO ARE CUSTOMER DEMANDS 3

THE COMPELLING METRICS YOU CANNOT IGNORE 4

LATEST INSIGHTS FROM IFS RESEARCH SUGGEST A SOPHISTICATED APPROACH 5

RESPONDING TO THE CHALLENGE OF DISRUPTIVE TECHNOLOGIES 6

LOOK FOR THE OBVIOUS – AND WORK WITH EXPERTS 7

WHAT’S NEXT FOR YOUR BUSINESS? 8

HOW CAN IFS EXPERTISE HELP? 9

IFS SOFTWARE FOR THE SERVICE INDUSTRY 10

MEET OUR INDUSTRY EXPERTS 11

Global industry views on the importance and relevance of digitization vary between industries around the globe. It’s worth asking yourself what sort of impact you think it might have for your business.

IFS DIGITAL TRANSFORMATION

SURVEY 2016THANK YOU TO ALL WHO PARTICIPATED!

NEARLY 500 SENIOR BUSINESS DECISION MAKERS FROM 20+ COUNTRIES GIVE THEIR VIEWS ON DIGITAL TRANSFORMATION

DIGITAL TRANSFORMATION

REGIONAL SPLIT ON WHAT ROLES ARE CONSIDERED TO BE RESPONSIBLE FOR DIGITAL TRANSFORMATION IN VARIOUS COUNTRIES

WHO IS RESPONSIBLE? The nearly 500 decision makers consider these roles

to be responsible for digital transformation

CEO39%

CIO40%

CTO20%

CFO35%

CMO6%

OTHER C-LEVEL OTHER NON C-LEVEL DON’T KNOW18% 9%24%

DIGITAL TRANSFORMATION:WHO IS RESPONSIBLE?

ME56%

CIO22%

CTO22%

CFO56%

CMO0%

THE CIO’S VIEW THE CFO’S VIEWTHE CEO’S VIEW

ME63%

CEO38%

CTO19%

CFO25%

CMO16%

ME69%

CEO44%

CIO38%

CTO3%

CMO9%

DIGITAL TRANSFORMATIONRATING OF HOW IMPORTANT THESE TECHNOLOGIES ARE IN DRIVING

DIGITAL TRANSFORMATION

59

42 48 45

37 53 55 59

IoT 3D Printing Wearable tech AR/VR

Drones Machine learning Cognitive computing Cloud

DIGITAL TRANSFORMATIONHOW IMPORTANT IS IT?

Digital transformation is just a buzz word

Digital transformation will play a key role in my market in the coming five years

I need to know more about digital transformation

My company has a clear strategy for digital transformation

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

30%

76%

59%

86%

Agree

GLOBAL ASEAN AUSTRALIA BENELUX BRAZIL CHINA FINLAND POLAND SCANDINAVIA USA

CEO 39% 38% 31% 37% 51% 47% 37% 41% 38% 30%

CIO 40% 21% 31% 22% 42% 53% 52% 57% 45% 29%

CTO 20% 0% 9% 15% 57% 19% 19% 7% 13% 16%

CFO 35% 17% 56% 56% 27% 38% 26% 36% 32% 42%

CMO 6% 0% 0% 11% 4% 6% 15% 2% 7% 6%

OTHER C-LEVEL 24% 13% 22% 11% 42% 16% 19% 34% 15% 27%

OTHER NON-C-LEVEL

18% 8% 25% 41% 8% 6% 7% 20% 12% 39%

DON’T KNOW 9% 29% 9% 7% 0% 6% 15% 2% 15% 8%

DIGITAL TRANSFORMATIONHOW IMPORTANT IS IT?

Source: IFS Digital Transformation Survey 2016

2

It is no longer sufficient to supply a quality product, as customers now need partners that can help them to operate more effectively and efficiently too. Customers are looking for more value-added long-term contracts, which not only include parts and service but also guarantee an outcome – i.e. 95% elevator availability, 200 MRI scans per day, lowest total cost of ownership (TCO) per page-print output, etc.

In an industry with real concerns about the cost model, the challenge will be to find operational efficiencies that increase revenue while remaining competitive. The big move throughout the industry is towards a servitization business model that engages the customer in end-to-end delivery and upsells the customer at the point of service.

IFS research conducted by Raconteur Custom Publishing

Technology impacts and benefits customers in every aspect of their lives. As customers embrace technology, their expectations rise, and with technology impacting customers at an exponential rate, their demands for service are rising exponentially too.

TECHNOLOGY IS DISRUPTIVE – AND SO ARE CUSTOMER DEMANDS

SERVICE ORGANIZATIONS SHOW CONSIDERABLE CONCERN ABOUT THEIR CURRENT COST MODEL, with 66% either “concerned” or “very concerned.”

SUSTAINABILITY OF COST MODEL VARIES BY TERRITORY

Very concerned – operations suffer from systematic inefficiencies and there is an immediate need to address

Concerned – operational efficiencies have been identified and plans are in place to realize over the next three years

Moderately concerned – operational efficiencies could be made but there is no immediate urgency

Unconcerned – my company’s operations are already lean and efficient

3%

63%

27%

7% 10% 3%

4%

81%

15%

4%

58%

28%

63%

33%

N.AmericaTOTAL EMEA APAC

66%

3

THE COMPELLING METRICS YOU CANNOT IGNOREIn an environment where customers inherently reward suppliers for good service, it is eye-opening to see the extent of the field service organization (FSO) shortfall when it comes to the excellence of delivery:

This is despite the fact that the majority of respondents felt that their digital strategy was at least enabled or enhanced and supported by adequate funding.

Furthermore, unlike industrial sectors, service organizations are not focused on the need for digital transformation to drive internal process efficiencies.

Rather, they have an outward-looking perspective that sees digital technologies as an opportunity to drive business and gain a competitive edge.

32% of FSOs are failing to attain at least 80% customer satisfaction

28% of FSOs are failing to attain at least 80% SLA compliance32% 28%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Growth opportunities in new markets

Accelerating innovation

Internal process efficiencies

Evolving customer needs and preferences

Competitive differentiation/advantage

SERVICE COMPANIES’ TOP FIVE DRIVING FACTORS FOR DIGITAL TRANSFORMATION

4

Headline insight from new research into the attitudes towards digital transformation in the service industry indicates that companies generally consider the funding available for digital change to be adequate or advantageous.

LATEST INSIGHTS FROM IFS RESEARCH SUGGEST A SOPHISTICATED APPROACH

Overall, the industry clearly recognizes big data and IOT as the top two disruptive technologies but seems prepared to embrace them as opportunities rather than threats and invest as required. All other industries are allocating their most significant investment to IoT – however, in an area where the customer experience is core to remaining competitive, a focus on big data and analytics seems prudent and astute.

The service industry is overwhelmingly convinced of the need to invest in big data and analytics, with 65% identifying it as a critical capability. This investment is being identified with the acknowledgment that it will be a disruptive technology.

65%

TOP FIVE CAPABILITIES IDENTIFIED FOR INVESTMENT

BIG DATA AND ANALYTICS

65%

INTERNET OF THINGS (IoT)

55%

ENTERPRISE RESOURCE PLANNING(ERP)

47%

SOFTWARE AS A SERVICE (SaaS)

33%

MOBILE COMPUTING / APPLICATIONS

31%

5

Leading service businesses put people, processes and tools in place in order to facilitate a transformation from reactive service, through proactive, predictive and ultimately prescriptive service. Customer loyalty is achieved through the offering of long-term contracts with multiple service levels which in turn increase profitability and drive a revenue-enhancement culture in service.

Delivering on expectations based on what was contracted is key, but there are limiting factors:

Great service will always be measured by how well you execute. That means optimizing the entire end-to-end service lifecycle, which the industry agrees faces significant disruption from big data, Internet of Things (IoT) and automation. Put simply, you are only as good as your people, and in an area currently deficient in talent, the question is how to respond.

RESPONDING TO THE CHALLENGE OF DISRUPTIVE TECHNOLOGIES

33% of companies say they are still negatively impacted by the necessity for manual reconciliation between management information systems (MIS)

25% of companies feel they do not have the data required to make successful business decisions today and to plan effectively for the future

33% 25%

57% of service organizations questioned identified lack of talent as a major challenge. In the long term, most plan to upskill the existing workforce, but third-party input is generally seen as essential.

57%

0% 10% 20% 30% 40% 50%

Business intelligenceCyber security

Big data / analyticsAI and robotics

IoT

AREAS WITH THE GREATEST TALENT DEFICIT

6

LOOK FOR THE OBVIOUS – AND WORK WITH EXPERTSIn total, 73% of service organizations felt that third-party vendors were equipped to provide their future digital needs. This opinion rises to 93% in North America. The industry accepts that there are barriers to change and that the fastest way to overcome these will be to outsource aspects of transformation to external experts.

It is interesting to note that service was the only industry questioned that selected “absence of the right organizational and governance model” as the greatest barrier to change. In an industry willing to work with external experts, structuring the right transformational business model will be an essential starting point.

Where the greatest value can be offered by third-party vendors:

ONGOING ENHANCEMENTS AND PLATFORM UPGRADES

33%DIGITAL ORGANIZATION AND OPERATIONS

50%PERFORMANCE ANALYTICS AND REPORTING

52%

ABSENCE OF THE RIGHT ORGANIZATIONAL AND GOVERNANCE MODEL

67%

AVERSION TO CHANGE50%

SECURITY THREATS / CONCERNS

28%

WILLINGNESS TO RISK BUSINESS CONTINUITY

26%

LACK OF STANDARD PROCESSES AND TRAINING FOR IMPLEMENTING NEW TECHNOLOGY

41%

BARRIERS TO CHANGE

Full details of the Raconteur Custom Publishing service industry research into digital transformation are available from ifs.world/dcs-ca

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SMAR

TER

SERV

ICES

INNO

VATI

VE B

USIN

ESS

MOD

ELS

Sustainable business growth

To remain competitive, service organizations need to embrace an end-to-end transformation to a digital model that delivers an enhanced customer relationship. Data capture from initial customer engagement to a technician’s mobile device can be seamless, meaning reduced costs and increased throughput, which can:

WHAT’S NEXT FOR YOUR BUSINESS?

Provide customers with personalized, real-time field service information like technician identity, ETA, likely visit duration, etc.

Prompt the technician with information to support upsell opportunities such as warranty or complementary products or services

Capture customer satisfaction information via surveys

Higher levels of customer satisfaction

Improved operational efficiency

Enhanced revenue

End-to-end “connectivity” will enable machines to become the sensor, providing support for condition - and usage-based maintenance.

Reduced unplanned downtime

Improved system infrastructure; simpler maintenance and configurability

Added customer insight

8

HOW CAN IFS EXPERTISE HELP?IFS offers a series of solutions to give service organizations the end-to-end connectivity that they need to deliver an enhanced customer experience:

IFS FIELD SERVICE MANAGEMENT

IFS IOT BUSINESS CONNECTOR IFS ENTERPRISE OPERATIONAL INTELLIGENCE

IFS PLANNING & SCHEDULING OPTIMIZATION

Taken together, these offer unique value not available elsewhere in the market:

Comprehensive contract management incorporating SLAs and supporting complex pricing to ensure personalized, accurate and profitable service agreements by reducing errors, duplication and warranty leakage.

The only truly end-to-end field service solution to enable a seamless transfer and capture of information through the service lifecycle, providing a 360° view of the customer from contact center through to return and repair processing.

Real-time business intelligence and informative dashboards provided by IFS Lobby, not only feeds back information from the field to track and improve performance but also provides real-time visibility of SLAs, commitments, etc. This gives unrivaled operational transparency that helps drive the transition to promise and deliver outcomes profitably.

A sophisticated what-if scenario explorer (WISE) to determine the impact of onboarding a new contract and the specific business actions required to deliver the desired outcome while optimizing profitability.

BUILD A PERSONALIZED SOLUTION MAP9

Service customers are demanding outcomes rather than just products. With IFS’s software solutions, businesses can meet evolving customer demands.

IFS SOFTWARE FOR THE SERVICE INDUSTRY

IFS APPLICATIONSIFS Applications is single, integrated application suite for global and demanding business. With non-proprietary technology and a component-based service oriented architecture (SOA) built on open standards, it is a truly flexible and agile solution with a great user experience. more ›

IFS IOT BUSINESS CONNECTORGood strategies increase revenue, boost profits and enhance efficiency. Build your IoT strategy around the IFS IoT Business Connector and see how your service company’s operational data becomes business intelligence and how business processes become more efficient.

IFS PLANNING & SCHEDULING OPTIMIZATIONIFS Planning and Scheduling Optimization is designed to enable an organization to manage their mobile workforce more efficiently, facilitating higher productivity and improved adherence to customer commitments. It consists of a range of modules that can either be implemented separately or integrated to form a powerful tool that provides visibility, scheduling optimization and planning of mobile resources.

IFS FIELD SERVICE MANAGEMENTIFS Field Service Management covers the entire, end-to-end service lifecycle. Its IoT capabilities make it the most complete and connected field service software on the market, helping you to maximize operational efficiency, increase revenue, reduce costs and improve customer satisfaction.

IFS ENTERPRISE OPERATIONAL INTELLIGENCEUnderstand enterprise performance and enable better decision-making with IFS Enterprise Operational Intelligence. IFS EOI enables a full, 360-degree, enterprise-wide, top-down perspective of processes and performance that are aligned with your service business’s strategy.

IFS CLOUD SOLUTIONSRun IFS enterprise software your way. IFS cloud solutions allow you to choose where it’s run, how it’s maintained and how you pay to license and use it.

By leveraging IFS Cloud solutions on Microsoft Azure, you benefit from enterprise grade services and worry-free Azure security compliance.

10

MEET OUR INDUSTRY EXPERTSIndustry experts can play a significant role in helping senior management plot a business strategy for digital transformation, both operationally and culturally, throughout the entire organization. Leveraging the right industry experts to speed digital transformation and realize competitive benefits has never been so important.

WHEREVER YOUR BUSINESS IS ON ITS DIGITAL TRANSFORMATION JOURNEY, WHY NOT SPEAK TO OUR TEAM?

Our current customers say that the single best thing about IFS is our committed employees. For example, our global team of service industry experts is led by Mark Brewer, IFS’s Global Industry Director for Service Management. Mark has worked in the industry for more than 20 years and in 2017, he was named one of the most influential people in field service by Field Service News.

Software will only take you so far. That is why at IFS we focus on selected industries to become true experts in how they operate. Our team can help you get it right the first time with less risk, quicker time to solution and lower cost.

MARK BREWER Global Industry Director for Service Management

FORMULATE &COMMUNICATE INSIGHTS

INDUSTRYCOLLATERAL

INDUSTRYSTRATEGY

INDUSTRYSOLUTIONDEVELOPMENT

INDUSTRYORGANIZATION

ADVISORYCOUNCILS

CUSTOMERPARTNERING

INDUSTRYRESEARCH

Thought leadership

Busin

ess d

evelopment

Solution influence

INDUSTRY ACTIVITIES

SCHEDULE A MEETING

11

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IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods, maintain assets and manage service-focused operations. The industry expertise of our people and solutions, together with commitment to our customers, has made us a recognized leader and the most recommended supplier in our sector. Our team of 3,300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners. For more information about IFS, visit IFSworld.com

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