White Paper

Understanding Crowd Service

Solutions: The Evolution Of
Field Service

Coresystems AG
www.coresystems.net
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White Paper: Understanding Crowd Service Solutions: The Evolution Of Field Service

Content
Summary 3

1. The Service Executive Bible: What Matters Most 3

2. The Evolution Of Field Service 4

2.1 The Way It Used To Be: The Analog Approach 4
2.2 Today’s Standard: Field Service Management In The 21st Century 4
2.3 Where We Are Headed: Crowd Service And Predictive Maintenance 4

3. Crowd Service Technology 5

3.1 Why You Need Crowd Service 5
3.2 A Deeper Look At Crowd Service Solutions 5

4. Conclusion 6

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 White Paper: Understanding Crowd Service Solutions: The Evolution Of Field Service

Understanding Crowd Service Solutions:

The Evolution Of Field Service

Summary
Companies looking to stay ahead of the curve and adapt to the rapid advancement of
digitalization in their respective industries have long been concerned with Field Ser-
vice Management (FSM). They have reimagined their business philosophies around
the conviction that customer satisfaction is a major priority and that new innovations
are also shifting customer demands. Innovative CEOs and service executives know
that FSM software alone will not be enough to meet real-time service expectations
and needs. They are looking to something with the groundbreaking potential to revo-
lutionize the services industry and customer experience. They are turning to crowd
service solutions. What promises does crowd service offer the field services industry?
How can you use them to improve brand loyalty? Why will they be the only way for-
ward in the age of IoT? Read on to discover why the only way forward is to combine
field service management with crowd service technology.

1. The Service Executive Bible: What Matters Most

It is only logical that service executives would be primarily concerned with optimiz-
ing the customer experience. In fact, a study conducted to determine key issues fac-
ing service executives in comparison to other business executives highlighted how
much CSOs value customer satisfaction over other KPIs.

Service Executives Must Join the Rest of the Business in Enhancing Brand Loyalty

Improve customer satisfaction 58%

51%
Increase brand awareness and loyalty 27%
39%
Retain existing customers 35%
32%
Increase number of net-new customers 27%
26% Service Executives
Increase top-line revenue 27% All Respondents
24%
0% 10% 20% 30% 40% 50% 60%
Percent of respondents, n=139 Source: Aberdeen Group, February 2017

Thanks to field service management software, service executives are indeed succeed-
ing at solving one of the biggest complaints by customers: response time to requests.
Software that helps manage time schedules and appointments has made it easier for
technicians to respond promptly. FSM software also provides access to extensive
amounts of background information including customer history and manuals. All of
this has added up to a more effective field service implementation.

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 White Paper: Understanding Crowd Service Solutions: The Evolution Of Field Service

However, service executives are currently pushing the envelope of what is possible
with field service management software. With the rapid development of IoT, the
speed at which defects and breakdowns are detected, sometimes even before they are
a problem, is getting ever faster. This development has the potential to revolutionize
customer service and improve customer satisfaction in ways unheard of at the turn of
the 21st century. There is no faster way to solve a problem than before it arises.
But detecting an issue is a far cry from resolving it. With the manpower currently
available to them, CSOs are running up against a brick wall. In order to continue
achieving their aim of consistent customer satisfaction improvement rates, they need
a bigger team of technicians and experts who can keep up with the new pace being set
by the latest innovations in technology. The trend is heading towards crowd services.
It will soon be the only way to meet the demands of a growing workload.

2. The Evolution Of Field Service

Just as the rise of machines gave rise to more advanced and capable machines, so to
have field services evolved over the years. What used to be an analog process of col-
lecting and sharing information about customers and devices, has now become auto-
mated, and in some cases completely digitalized.
This has in large part been the response to the need for more streamlined and effi-
cient processes. FSM software ensures that everyone is on the same page: the compa-
ny, the technicians, the customers. Here’s a closer look at the development of FSM.
2.1 The Way It Used To Be: The Analog Approach
You may recall the analog days of field service. A device experienced some kind of
malfunction, the customer called a hotline, waited on hold until someone was avail-
able, and then explained the issue, the device and most likely previous problems with
the device in depth. After determining that the issue could not be resolved over the
telephone, the customer received an appointment for a service visit. When the techni-
cian arrived, he would once again go through all the same questions with the custom-
er, run a repeat check of all the test parameters and most likely arrive at the same
diagnosis as the customer service representatives arrived at on the telephone.
If the customer was lucky, the service technician would be able to continue assessing
the problem and would even have the background information, tools and components
necessary to solve it. If the customer was unlucky, this would be the first of many
visits and attempts to determine and then deal with the issue.
Forward-thinking CSOs realized early on that this was not the way to move forward.
Customers were starting to expect more from their service providers. The answer is
In 2012, FSM software.
37.8 % 2.2 Today’s Standard: Field Service Management In The 21st Century
of companies About ten years ago, companies started integrating field service management soft-
generated more than ware into their operations. They realized that upgrading was the only way to secure
one quarter of their future earnings and sustainable growth.
profit through service Studies have proven their assumptions correct. In 2012, 37.8 percent of companies
business. By 2015, this generated more than one quarter of their profit through service business. By 2015,
number had jumped to this number had jumped to 49.2 percent. And one of the main indicators for success
was the ability to incorporate new technologies into business models and collect data
49.2 % and share relevant data and information across all levels of the company1 .

1: Felix Optehostert, Philipp Jussen, KVD-Service-Studie 2016 „Mensch und Technologie – neue Heraus-
forderungen im Kontext der Industrie 4.0“

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 White Paper: Understanding Crowd Service Solutions: The Evolution Of Field Service

Through 2020, However, through 2020, 80% of organizations employing over 75 field technicians will
only reap 80% of the possible efficiency gains. This is largely due to the fact that digi-
80 % talization is not keeping pace. But service providers have taken notice. In fact, two
of organizations out of three large field service organizations will have implemented measures to in-
employing over 75 field crease revenue streams and improve customer satisfaction. Their solution is to pro-
technicians will only vide field technicians with profit driving mobile applications2 .
reap
Field service management software has been a game changer. Its benefits are numer-
80 % ous. It offers:
of the possible − the potential to track KPIs and customer success
efficiency gains − 24/7 omni-channel service access for customers
− service status tracking from start to finish
− corporate knowledge access in the form of manuals and videos
− checklists that minimize the risk of technician errors
− timely performance of preventive maintenance
− streamlined scheduling that ensures the best technician for the job
− the consolidation and sharing of relevant customer/device data
All of this adds up to reduced risks, real-time response rates, higher first-time fix
rates and a generally seamless flow in the service experience.
2.3 Where We Are Headed: Crowd Service And Predictive Maintenance
However, this is not the moment to get complacent. We are on the cusp of a complete-
ly new and unprecedented way of executing field services: predictive maintenance.
The Internet of Things has resulted in a level of connectivity never before seen. All of
our devices are communicating with each other. They can now be equipped with sen-
sors which make it possible to transmit warnings about imminent breakdowns.

Gartner, Inc. forecasts that 8.4 billion connected things will be in use world-
wide in 2017, up 31 percent from 2016, and will reach 20.4 billion by 2020

This kind of predictive technology is a wonderful opportunity to prevent loss of time

and profit through the preemptive repair of not yet evident problems. However, being
able to respond with such speed requires a workforce substantially larger than most
companies currently have.
The trailblazers have already come up with a solution: crowd service. Together with
partners and subsidiaries, companies can create an ecosystem of qualified service
technicians who are either employed or freelance. By implementing such a crowd ser-
vice of field service experts, companies can counteract a lack of service technician
employees.
How prepared a company is to respond to real-time service requests will be a true
indicator for future success. As the trends towards increased connectivity and intelli-
gent devices continues its upward trajectory, customers’ expectations for timely and
efficient service will increase proportionately. Not having enough service technicians
to tackle repair and maintenance could cause real harm to a company’s profitability
and reputation.

2: Gartner 2016 Field Service Management Report

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 White Paper: Understanding Crowd Service Solutions: The Evolution Of Field Service

3. Crowd Service Technology

3.1 Why You Need Crowd Service

In its 2017 IT trend report, Capgemini uncovered that 82 percent of Chief In-
formation Officers in German speaking countries feel that digitalization is
changing their industries. The same report highlighted that 75% of CIOs con-
sider the number one priority to be a digitalization overhaul.

Their logical response has been an attempt to hire more qualified employees with the
necessary IoT know-how. However, this has also proven to be their number one hur-
dle. On a scale of 1-10, CIOs have labeled this their biggest obstacle to digitalization
in 2017 with a score 0f 6.53 .
At the same time, the CIOs are coming up against an organizational and structural
roadblock. Old hierarchies die hard and many companies are unwilling to budge when
it comes to reducing hierarchical tiers and shifting around management structures.
Given these circumstances, crowd service solutions are not only presenting them-
selves as the best solution, but also the only viable one.
3.2 A Deeper Look At Crowd Service Solutions
A crowd service is a pool of skilled, freelance service technicians who are available to
respond to service calls when needed. These crowd service technicians possess the
necessary IT know-how to address various technical issues. Thanks to field service
management software, they also have access to internal company manuals, tutorials
and videos as well as to customer and device/machine specifics for getting the job
done quickly and effectively.
The table below is an illustration of the current trend. As mentioned, the shift in re-
sponse time from days/hours to predictable response rates necessitates a large work-
force. The ability of the conventional workforce (pink) to respond to service calls ta-
pers off just below real-time. At this critical decision zone, it is necessary to
compensate with more manpower in the form of a crowd service (blue). It is absolute-
ly essential that a company is equipped with a sizable and knowledgeable team of
technicians before it reaches the point at which new technologies can predict service
needs because once predictive technology determines a problem, customers will ex-
pect companies to respond immediately.

Response Time Workforce Demand

predictive

“New World”
Critical decision zone Crowd Service
Shift of resources

Real Time
days/hours

“Old World”
Conventional
Workforce

3: https://www.de.capgemini.com/resource-file-access/resource/pdf/it-trends-studie-2017_1.pdf

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 White Paper: Understanding Crowd Service Solutions: The Evolution Of Field Service

In addition to overhauling digitalization, CIOs also mentioned that their next two top
priorities were4:
− increasing efficiency and
− reducing costs
Once again, crowd service is the key. In addition to solving the problem of an insuffi-
cient and oftentimes inadequately trained workforce, using a crowd service is a way of
circumventing an internal restructuring of company hierarchies. This facilitates the
quick implementation of new digital strategies, something essential in this fast-paced
environment. In addition, having a crowd of freelance employees means that compa-
nies only pay for the service they receive and are not obligated to cover the expensive
annual expenditures associated with full-time employees.

4. Conclusion
The evolution of technology has propelled us into the digital transformation. It has
changed the way we interact with technology and also the way it interacts with itself.
It has shifted social expectations of service needs and norms. We are on the brink of
countless new innovations. However, if we can not keep pace with this technology, we
will severely impede the potential for development and transformation.
Companies not investing in digitalization across all corporate levels will fall behind.
Having technology that can save customers time and frustration by anticipating po-
tential problems is useless if companies can not respond to repair and maintenance
requirements. It is akin to having the latest gadget with the oldest version of the soft-
ware. It renders the latest and greatest technology ineffectual.
The only way forward is one that uses the same game-changing innovation that has
resulted in IoT and artificial intelligence. Crowd services, which implements ground-
breaking software with the revolutionary concept of the sharing economy, is the 21st
century response to 21st century technology.

4: https://www.de.capgemini.com/sites/default/files/resource/image/infografik_it-trends-studie_2017.png

Coresystems
CH: +41 56 500 22 44
DE: +49 761 887 95 777
USA: +1 (415) 887-1944
www.coresystems.net
About Coresystems
Coresystems is a leading provider of mobile and cloud-based field service and
workforce management software for mid-sized and large enterprises’ field service
organizations. Since Coresystems’ founding in 2006, more than 190,000 users
across the world have utilized Coresystems’ innovative, real-time field service
management software to improve their business and field service processes. Core-
systems has also pioneered “crowd service” – which allows customers to leverage
an Uber-like platform to find available field service technicians in real-time. Core-
systems is headquartered in Switzerland with international offices in San Francis-
co, Miami, Berlin, Freiburg, Shanghai, São Paulo and London.

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