Welcome to Day Two of Field Service event at the JW Marriott Hotel in Palm Springs with field service professionals, after-sales service innovators and solution providers coming together for the perfect learning and networking environment for organizations looking to advance modern service together.
Yesterday morning we heard from thought-leaders about the digitization of field service and the impact of maximized uptime on service organizations worldwide. Later in the day we learned more about the changing paradigm of customer service and driving customer outcomes as part of a customer-centric business. And, to wrap up a great day one, we ended the day with an intensive workshop on preparing after-sales service for servitization.
Today, first up to the podium is Gary Brooks, Chief Marketing Officer at Syncron, sharing his thoughts on the importance of making the transition from delivering products to delivering business outcomes. Read more below to hear what he had to say.
The time has come to think differently about after-sales service.
The industry is moving from delivering product and break-fix service to maximizing product uptime and delivering the outcomes of products. But what’s stopping manufacturers from changing? Simply put, as humans, we have comfort zones that we form – habits that often get in our way and prevent us from thinking differently or asking ourselves a very simple question: Why? Most of we repeatedly do things almost instinctually or without asking ourselves “why do I do that?” Old habits are hard to break and get in the way of us thinking unconventionally.
The world of today is unforgiving to those who fail to innovate and resist change. But, we all need to perk up our ears, seek out the trends of tomorrow and help our businesses secure a seat in the future. History tells us that, in every generation, there have been innovations and radical market disruptions that transformed businesses, industries, economies and livelihoods. Some laggards have been left behind and replaced by the more innovative leaders—leaders that enable radical market improvements.
Innovations in IoT, AI and predictive analytics are enabling a radical market disruption that, like prior disruptions, will completely change the way we do business. One particular disruption is the era of servitization-centered economy. Servitization, Product as a Service, business outcomes – however you refer to it – is the transformative process manufacturers are going through to shift from selling product to selling the outcome of these products. And, when making the transition from product-driven break-fix service models to a servitization-centered economy, one thing that’s incredibly important is the manufacturer’s ability to maximize the uptime of the product.
The manufacturer can only deliver outcomes when the product is running.
The challenge? This shift has caused the uptime responsibility to shift from the end-user to the OEM. It’s now the OEM who is responsible for ensuring the products deliver their expected output. The opportunity? Because the OEM is best equipped to ensure the products are designed in the best way to maximize uptime, they’re in the perfect position to serve as the leader in this business transformation. Simply put, if OEMs are no longer making money on selling highly expensive spare parts, but rather that the equipment works and delivers its output – the whole business logic and incentive structure change will not only increase cost efficiency in the whole value chain and reduce Total Cost of Ownership, but bring more value to end-customers.
Already, many are embarking on this journey — a transformative change that involves the redefinition of after-sale service and an evolution of manufacturers’ after-sales service functions. We’re in a new paradigm that’s focused on maximizing product uptime, which is critical to succeeding in a servitization-centered economy. And, to successfully complete this journey, service organizations can’t use the same thinking they’ve used in the past to solve the problems of the future.
At Syncron, we think differently. We are laser focused on empowering manufacturers around the world to maximize product uptime and start the journey toward a servitization-centered economy today. Are you ready to join us?
Join us as we live blog our experience during the performance workshops, interactive working groups, and so much more. With nearly a week’s worth of networking, technology and strategy, we’re sure to walk away with some of the best tools in field service support and customer experience today!