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Field Service Management Market Snapshot

Field-Service-Management-Market-Snapshot

The Field Service Management Market Snapshot is a summary of the Gartner Magic Quadrant for Field Service Management.

Gartner estimates that revenue from packaged FSM cloud subscriptions, software licenses and maintenance — not including services — amounted to $2B during the 12 months ending in June 2018 – up approximately 18% from 2017.

Field Service Management Market Snapshot – CEO Recognition

The drivers of Field Service Management growth was a recognition by CEOs that:

Field Service Management generates leads and revenue

  • FSM technician enablement and digital service support create opportunities for top-line growth.
  • increase profitability through efficiency – technicians are better able to translate the trusted-advisor relationship into increased sales.

The cloud is accessible

  • Field Service Management products were some of the earliest to adopt the cloud – data exchanged with field technicians had to pass beyond the corporate firewall anyway.

Mobile technology is accessible

  • Consumer mobile devices are more affordable, durable and easy to protect.
  • Battery life, cellular transmission rates and coverage, and portability have improved.

Competitors are succeeding

  • Equipment operators and owners have come to expect that their service providers will use the latest technologies to provide the most efficient and highest quality service.
  • It is increasingly difficult for analog FSPs to compete with those that use multiple digital technologies in their field service operations.

FSPs are disrupting their competitors largely by incorporating technological capabilities into aspects of their operations that previously lacked it. Remote diagnosis and even resolution of issues is becoming more prevalent and driving down traditional metrics such as first-time fix rate, mean time to repair and time between failures.

Field Service Management Market Snapshot – FSM Insights

Cross-organizational integration

  • The ability for customers to initiate workflows directly, and to track them in real time (including status updates, technicians’ travel progress and requests for quotations), is increasingly important.
  • 39% of the FSPs surveyed indicating that they offer customers a “customer portal” to promote this type of digital experience.
  • Another 49% indicating that they would do so within 12 to 24 months.

Outcome-based contracts

  • These can include reliability-centered maintenance, predictive maintenance, usage-based maintenance and equipment-as-a-service contracts.
  • 19% were already offering these contracts.
  • Another 26% expected to do so within 12 months.
  • Approximately 33% of the respondents already offered usage-based contracts, which are seen as predecessors to outcome-based contracts because most outcome-based contracts require capture of real-time or near real-time usage, performance metrics and environmental conditions from sensors in or near equipment.

Zero-touch service

  • Of the Field Service Management Market Snapshot surveyed reference customers, which represent a small but often leading portion of the overall market, 15% indicated that they already schedule some work automatically.

Growing use of consumer devices

  • 40% of respondents said a consumer-grade tablet or laptop PC is what there service technicians primarily use.
  • 33% said a consumer-grade phone.
  • 22% said a ruggedized device.
  • and for 5% the situation was too mixed to decide.
  • Increasing use of smaller form factors: In terms of overall form factor, 39% use a handheld (phone), 37% use a tablet and the remaining 24% use a laptop or other device.
  • Across industries, and with outliers removed, the average number of technicians per dispatcher was 21 technicians.

Cost breakdown

Of the total cost:

  • Licenses represented approximately 40%
  • Implementation 30%
  • Integration 20%
  • and the remainder was split between hardware devices and back-end cost

Deployment model

  • On-premises deployments declined from 41% in 2016 to 31% in 2017 to 22% in 2018.
  • Trend to dedicated instances than to multi-tenant instances.
  • 54% of the respondents indicated that they utilize a dedicated instance hosted by their vendor (34%) or a third party (20%) – multi-tenant was unchanged at 24%.

ROI (Respondents were new customers, so many were still working to achieve an ROI).

  • For those that had both achieved and tracked one, the mean time to achievement was 13 months, up from 10 months in 2017.

FSM Strategic Planning Assumptions

  • In 2022, over 50% of field service providers will offer a specialized digital customer experience that enables two-way interaction and workflow initiation via multiple human and nonhuman channels.
  • In 2022, more than 60% of asset manufacturers will offer outcome-based service contracts, up from less than 15% in 2018.
  • In 2022, only 30% of field service providers will be ready to deploy AI-based decision support in their field service management platforms in order to compete better, despite robust capabilities being available by then.

Field Service Management Market Definition / Description

Field service management (FSM) is a discrete market within the broader customer service and support software market. Field service providers (FSPs) typically dispatch technicians to remote locations to provide installation, repair or maintenance services for equipment or systems. They may manage, maintain and monitor these assets under a predefined service or maintenance contract.


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FSM Market Snapshot – FSM Application Capabilities

Field Service Management Market Snapshot – Manage demand

  • FSM applications handle the receipt of work requests from external sources, such as customers (through multiple channels), Internet of Things (IoT) connections and service-brokering networks.
  • They also import work requests from internal systems, such as ticketing, maintenance, repair and operations (MRO), product life cycle management, long-cycle project management and enterprise asset management systems.

Plan work

  • FSM applications offer workload balancing, forecasting of shift requirements, schedule optimization for short- and long-cycle work requests, SLAs and cost prioritization, parts demand planning and purchasing, contracted or contingent third-party service provider enablement, customer approval coordination, and geographical information system (GIS)-based planning.

Inform and enable technicians

  • FSM applications do this via apps on mobile and wearable devices for GPS tracking, telematics, equipment work history, service collaboration, customer communication, knowledge management integration and work instruction management, inspections, safety forms, parts sourcing and customer quoting.
  • Organizations provide support for technicians and customers in the field through digital service support channels such as remote video and augmented reality-based communications, IoT visualizations and chatbots.

Debrief work orders

  • FSM applications enable online or offline mobile collection of time and parts used, tasks completed, updates to equipment records, site evidence, customer recommendations, sign-offs, approvals for additional work and satisfaction surveys.
  • Perform analysis and integration: They do this using field service performance management reports and dashboards, predictive analytics, alerts and notifications, and APIs and connectors for ERP, CRM and GIS application integration.
  • Organizations that handle complex service use cases for mission-critical equipment, provide both on-site and in-depot service, or have FSM-driven pricing.

Manage additional operations

  • FSM applications should handle installed equipment management, maintenance agreement management, maintenance plans, warranty and claims management, reverse logistics, depot repair, equipment supersession, engineering change requests, customer pricing management and pro forma invoice preparation.
  • FSM products operate across multiple communication channels: websites, supply chain solutions, third-party service-brokering solutions and analytics. FSM applications draw on software in various markets, such as CRM, ERP, enterprise asset management, asset performance management, IoT, workforce management, vendor management, product life cycle management and supply chain markets (specific examples of the last being transportation management and fleet management).
  • Although several FSM vendors have capabilities in these areas, they are not their focus. Some vendors also offer industry-specific functionality or even industry-specific products; however, this is a cross-industry Magic Quadrant for which qualifying vendors had to have successful deployments in multiple industries for the products we reviewed.

Field Service Management Market Snapshot – What to Look For in an FSM Vendor

Field Service Management Market Snapshot – Market responsiveness

  • Reference customers for support, product upgrades and enhancements.
  • Prioritization of CX through transparency and personalization and to utilize hybrid workforces (employees and subcontractors).

Product innovation

  • Inclusion of real-time traffic patterns and AI-based task duration prediction into its scalable scheduling engine.
  • Utilization of deep neural networks and machine learning to offer users graphical “what if?” analysis capabilities that help democratize its functionality by making it accessible to less technically sophisticated organizations.

Industry strategy

  • The inclusion os functionality that supports long-cycle service, work process complexity, and dynamic crew assembly and management.
  • A cross-industry configuration template and augments this for specific industries.

Product breadth

  • The support of intraday automated scheduling optimization, an API for IoT integration, use cases centered on complex equipment and parts planning and multiple customer engagement channels, complex invoicing and contract management.
  • Support for  mobile technician part swaps via mobile channels, return merchandise authorizations (RMAs), condition-based search (for example, for only refurbished parts), meter-based pricing and special charges in contracts.
  • Support for time-limited skills in scheduling, and both tender offer management and specialized project coordinator interfaces for organizations that use subcontractors.
  • The ability to predict a technician’s time of arrival, due to its depth in areas such as calculating technician-specific work durations based on historical performance patterns, travel, and configurable rescheduling penalties that prevent it rescheduling work too often. Planners benefit from direct integration of capacity management and dispatch. OFSC helps support technicians with a video chat feature built into new native iOS and Android apps.
  • Organizations with complex mobile workflow, parts management and planned maintenance needs may require additional product integrations.
  • Product transition and partners: regional support and specific use case support and the corresponding staff to support it.

Industry strategy

  • Horizontal usability and extensibility, deep best-practice templates and industry-specific capabilities.
  • Support for specific industry use cases such as tail planning in the aerospace sector, chain of custody for the handling of hazardous chemicals, meter/subscription-based contract billing, condition-based maintenance, building information modeling, GIS integration, and Food and Drug Administration (FDA) compliance (in the U.S. healthcare sector).

CX

  • Best-in-class technical support (on assisting with change management and educating implementation and support staff), end-user training and availability of quality third-party resources.

SaaS platform

  • Do SaaS customers account for a large percentage of its installed base?

Sales execution

  • Sales well distributed throughout North America, EMEA, Asia/Pacific and Latin America.

Solution innovation

  • Integration with asset performance management software to better inform usage- and condition-based maintenance execution.
  • IoT-enabled customer portal enables an FSP’s customers to initiate parts ordering, approvals and remote service requests.

Integration

  • The number of APIs and packaged connectors.

Mobile form extensibility

  • Ability to integrate and extend the solution (mobile apps and extensibility tools), particularly in terms of mobility.
  • Can administrators can create simple proprietary mobile forms without writing code?
  • Organizations with complex needs should check in advance whether they will need to purchase partner products.

Implementation

  • Limited out-of-the-box connectors and education about the architecture.

Platform

  • Extensibility and product interoperability benefits of being on the multiple platforms.
  • Ability to access purpose-built mobile apps, workflow management capabilities and data synchronization configurations outside vendor platform.
  • Support for single deployments with tens of thousands of users and integrations with dozens of systems.
  • Ability to connect to a search-engine-ready knowledge base, and can now be configured to visually match an organization’s branding (colors, fonts and so on).

Product depth

  • Out-of-the-box connectors for IoT platforms from GE Digital and PTC, as well as connectivity to several other leading vendors.
  • Ability fo administrators to configure service flows based on work order attributes such as type, status, customer, failure code and contract.
  • Ability to use the included performance dashboards to track ROI.
  • Capabilities to support multiple business models, including decentralized scheduling and outsourced service. It enables customers to offer free scheduling views and even pre-optimized work schedules to their subcontractors.
  • Organizations with complex, equipment-centric service requirements will likely need to integrate other products from other vendors so avoid closed systems.
  • The inability to perform complex pricing calculations, parts management and planning, sourcing and reverse logistics may require extensions.

Time to achieve ROI

  • The time required to achieve an ROI relative to competitors.

Additional Marketing Automation & Predictive Marketing Resources From Four Quadrant

MQ for CRM Lead Management >>

A Marketer’s Guide to B2B Marketing Automation Platforms >>

The Predictive Marketing Analytics Buying Checklist >>

Three B2B Predictive Marketing Use Cases >>

Strategic Account Planning Template >>

Go to Market Strategy Planning Template >>


Go to Market Planning Examples

 

Field Service Management Market Snapshot

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