White Paper

Transforming Field
Service into a
Profit Center

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COST

PROFIT

Coresystems AG
www.coresystems.net
 White Paper: Transforming Field Service into a Profit Center

Content
1. Executive Summary 3

2. Why Does Field Service Need to Become a Profit Center? 4

3. How Field Service Can Become a Profit Center 4

4. Customer Focus 4

5. Operational Efficiencies 5

6. Field Ambassadors Sell More Products and Services 6

7. New Innovative Business Models 7

8. Customization and Individualization of Services 7

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 White Paper: Transforming Field Service into a Profit Center

Transforming Field
Service into a Profit Center
Practical steps to profitable field services

For Field Service Executives, COOs, and CMOs of larger organizations that pro-
vide customer field service management.

1. Executive Summary
Manufacturers in various industries are increasingly under pressure to make their
customer service units profitable. In order to deliver great service, businesses need to
focus on understanding what customers want. This can be achieved by investing in
new tools that improve efficiency and quality. To keep customers coming back and
deter competition, manufacturers need to develop business models and customized
services that are aligned to individual customer’s business goals. For the customer,
faster service delivery and less unplanned downtime mean a higher yield from capital
investments, which then justifies high-value services.
Field service has traditionally been a drain on cash. However, with field service auto-
mation software, there is an opportunity for the first time to save money and in-
crease profits. It’s not uncommon for manufacturers to achieve efficiency savings of
up to 30% while still increasing customer loyalty and growing brand value.
Field service not only transforms finances, but also the whole customer relationship.

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 White Paper: Transforming Field Service into a Profit Center

2. Why Does Field Service Need to Become a Profit Center?

The world is changing fast: economically, socially, and politically. Businesses have to
adapt to new competitive landscapes, including challenges caused by cheap suppliers
from abroad or disruptions by startups that turn whole industries upside down. Cus-
tomers are becoming accustomed to higher levels of personalized service, often as-
sisted by technology that facilitates their lives. These global trends present challeng-
es, but also great opportunities for businesses to tap into.
By focusing on their customers and disrupting their own business models, businesses
can create new revenue streams and distinguish themselves from the competition. If
it is run as a profit center, field service management can play an important part in this
transformation. Only by putting in enough effort to make customers successful, will
businesses also become successful.

“Unplanned Customers are similarly under pressure to increase revenue, maximize returns on
investment (ROI), and achieve their personal key performance indicators (KPIs).
production They will show gratitude and loyalty to suppliers who understand their challenges
and align with their goals. Customers need to achieve a more efficient use of their
downtime is capital and time. Unplanned production downtime is not an option anymore. There-
not an option fore, transforming field service into a profit center will energize and refocus field ser-
vice organizations into putting the customer first, and in doing so tie customers clos-
anymore.” er into manufacturers’ systems, services, and products.

3. How Field Service Can Become a Profit Center

In this section we present five practical steps for turning field service into a profit
center. These steps are all about putting the customer first and empowering staff. You
will learn how to move from minimal efforts and reactive repairs to focus on proac-
tive, productized services, and relationship building. The following points are covered
in this section:
− Customer focus
− Operational efficiencies
− Field service ambassadors sell more products and services
− New innovative business models
− Customization and individualization

4. Customer Focus
Today, manufacturers have new means to impact their customer’s success. New pro-
cesses and tools are available for the first time allowing manufacturers to interact
with customers in new ways. These tools organize resources and processes and feed
field service staff vital information and instructions. Engineers completing a service
job will now be able to offer meaningful advice based on real-time data combined
with their experience and collaboration. Customers will see the benefits of field ser-
vice management software straight away. They will not only appreciate the improved
efficiency and quality of the service, but also the difference the service has made to
their productivity. This can go as far as the equipment manufacturer becoming a
business partner invited to advise on capital investment to meet production targets.

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 White Paper: Transforming Field Service into a Profit Center

Cost Center Transforming field service usually starts with relatively standard improvements in
resource allocation and route scheduling, but these improvements usually do not have
Field Services
a direct impact on the customer. Real results will be visible when field service staff
are supported before, during, and after the service is delivered.
Resources Planning a large job can be a very complex task with numerous steps to consider. Au-
tomating as much of the upfront work as possible with customizable job checklists
will standardize the work for engineers, increase quality, and reduce the chances of
having to redo work.
Customer
During the service, engineers can be provided with detailed information and instruc-
tions that leave no room for doubt. Using their mobile devices, field service techni-
cians can download manuals, checklists, historical data, and site-specific instructions.
Profit Center
A cloud-based solution will ensure that even if the engineer is not connected to the
Revenue Internet, he or she can still perform a high-quality service job.
Loyalty
When the service is completed, the customer is presented with a report to sign. Pre-
Brand value
senting the customer with the report immediately upon completion of the service,
leaves less room for doubt and means queries can be dealt with on the spot, rather
than after several weeks when memories have faded.
Field The possibilities of field service automation software show customers the high value
Services of professional services being delivered. It also demonstrates how services are keep-
Customer ing their businesses running continuously and efficiently.

5. Operational Efficiencies
Services By definition, less costs means more profit. By achieving more with the resources
available, field service teams can reduce costs and improve cash flow by increasing
efficiencies in information management, service delivery, and planning.
This can start by optimizing some resources, such as:
− Planning service calls with a routing system, allowing more visits per day.
− Enabling fast access to historical data from digital archives, which reduces
planning time.
− Reducing the cost of sale by planning pre-defined templates, software automa-
tion, and online resources to significantly reduce the time it takes to provide a
quote to the customer.
Employees are more focused on efficiency when provided with the tools to empower
them to increase this efficiency. Mobile data solutions mean engineers onsite can
complete services faster because they have all the information they need at their fin-
gertips. For instance:
− Engineers know where they are going, and receive updates throughout the day
as service schedules change.
− Standardized step-by-step procedures mean engineers work fast and efficiently
on-site.
− The latest versions of manuals can be available electronically for downloading
when needed. Engineers don’t need to waste time picking up paper copies and
don’t need to return to the office if plans change.
− Comprehensive customer reports can be automatically produced in a pre-de-
fined format instead of forcing the engineer to go back to the office to write it
manually.
In most businesses, cash flow is just as important as profitability. Compared to com-
mon paper-based systems, automation software considerably accelerates invoicing by
weeks or even months. The improvement in cash flow from faster payments can make
a huge difference to the entire business model of the customer service department.

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 White Paper: Transforming Field Service into a Profit Center

“As ambassa- 6. Field Ambassadors Sell More Products and Services

dors of your Field service engineers are in a perfect position to establish a valuable relationship
with customers that facilitates upselling of services and equipment, at a very low cost
company field of sale. They have access to the customer’s organization where they can offer insight,
service staff advice, and guidance based on technical knowledge and years of experience. As am-
bassadors of your company field service technicians can have significant influence,
can have but they must be supported in this role with the right tools and training.
significant
influence”

Warning
Sub-optimal
Training
Capacity

When working on-site, engineers have all the information about the site, products
and history downloaded onto their mobile device. Combined with their years of expe-
rience, the engineer will often spot something in the installation that is not right for
that customer and is able to offer advice on improvements. Examples might be:
− Training
− Part replacement
− Upgrades
− Maintenance service
− New equipment
The engineer can become brand ambassador and can advise the customer on ways to
improve productivity and uptime by suggesting additional goods and services.

7. New Innovative Business Models

Services can be developed, marketed and sold like products. Adding in new processes
and technology can also make them modular and easy to purchase, for instance from
an online catalog. Innovative ideas can then help create services that adapt to cus-
tomers’ own businesses. In fact, customers might find that they can create new prod-
ucts as an addition to your services – the ultimate form of brand loyalty.
At the simplest level, rather than waiting for a customer to call with a problem many
manufacturers offer routine contracts. A regular schedule is agreed upon for engi-
neers to visit the site and carry out preventative maintenance to stop errors before
they occur. Large-scale and essential machinery breaking down in the middle of pro-
duction can have a devastating impact on a customer’s profits. However, a scheduled
shutdown will have minimal effect. Technology can take this a step further by contin-
uously monitoring usage rates and emerging faults, so customers can be alerted about
problems before they become catastrophic. In this way, services can be timed for
when they are actually needed instead of offered on a standard schedule.

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 White Paper: Transforming Field Service into a Profit Center

Customers may start to build your online processes into theirs. For instance, self-ser-
vice calls can be triggered by an end-user scanning a QR code into a user-friendly app
on their smartphone. This bypasses the customer service desk entirely and speeds up
the process of making a service call.
When tools are in place and staff understands their benefits, employees will also find
new ways to use these tools that have not been imagined yet.

8. Customization and Individualization of Services

The world is becoming more customer-focused and individualized. Older manufac-
turing companies are traditional, but a new generation of staff is experiencing a fresh,
digitally driven customer service world at home, and increasingly expects a similar
experience at work.
Forward-looking brands now put much more emphasis on the customer’s individual
requirements, and seek ways to offer more customized services that support business
targets and staff KPIs. Brand loyalty and keeping ahead of competitors are key goals.
Automated procedures and checklists defined for standard services are easily modi-
fied to accommodate customizations. Predictive analysis methods are used to capture
knowledge, track performance, and create equipment usage profiles, hours of opera-
tion, production targets, service history, etc. There may also be additional, non-stan-
dard services that are only performed for a specific customer. The customer receives
real-time insights and high value services which are aligned to their own business
objectives.
The work required to define and implement these services would make it extremely
difficult for competitors to offer alternatives at a reasonable price.

3 Service value
Service value

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Individualization

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-
Coresystems systems has also pioneered “crowd service” – which allows customers to leverage
CH: +41 56 500 22 44 an Uber-like platform to find available field service technicians in real-time. Core-
DE: +49 761 887 95 777 systems is headquartered in Switzerland with international offices in San Francis-
USA: +1 (415) 887-1944 co, Miami, Berlin, Freiburg, Shanghai, São Paulo and London.
www.coresystems.net

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