Field Service Organizations Are Shifting Toward Outcome-as-a-Service (OaaS)
Manual processes are of primary concern at organizations that are still working to turn their field service operations into profit centers. This is most often achieved by switching from the old break-fix model to long-term contracts that guarantee uptime, and this model is only achievable with predictive maintenance and automation.
Many field service leaders don't currently consider their field service operations to be a "profit center" per se, but most organizations have been implementing strategies to transform field service into an important part of business operations. Indeed, there are now many opportunities to drive profit through field service operations. For example, organizations that aren't yet driving profit through field service may have opportunities to introduce automation and connected technology at an iterative level, so they can develop a use-case for an Outcome-as-a-Service (OaaS) business model.
The OaaS model drives traditional service models further by offering customers deliverable business outcomes. Instead of simply fixing devices as part of a service contract, the company guarantees outcomes because of both the deployed product and the service agreement. In this way, the service organization can sell outcomes as a product rather than a feature.
Naturally, advanced digital technologies are essential to OaaS. Although most service organizations are shifting in this direction, not every organization has the capabilities to scale their OaaS programs. Here's what's happening right now in the field service industry and what it means for the future of OaaS.
Technologies and Strategies Essential to Driving Profit
In a recent WBR Insights and Field Service report entitled "The Service Support Guide to Empowering Your Customers," only 18% of the respondents claimed they currently view field service as a proactive profit center. However, these respondents also identified some core technologies and strategies that are proactively driving their revenue.
These respondents recognize solutions and strategies like AR and wearable technologies (50%), customer-facing AI solutions (44%), and proactive selling during contract renewals as key to their success.
AR and connected technologies are enabling field service organizations to empower technicians in the field and increase first-time fix rates. This is essential to ensuring they can live up to SLAs made with customers beforehand. Using a connected device, a technician in the field who is struggling to resolve a problem can engage with remote help to troubleshoot.
Meanwhile, artificial intelligence is enabling more organizations to launch predictive maintenance programs. By collecting sensor data from deployed assets, field service teams can use AI programs to make determinations about when machines will break down.
Rather than waiting for assets to require servicing, they can then take preventative measures and guarantee uptime—and by extension, outcomes—for customers.
Most Organizations Are Adopting OaaS and Improving Outcomes
According to the study, 57% of the respondents had adopted the OaaS business model. But despite this majority, 43% said they don't' consider outcomes an essential part of the customer relationship. In this context, "outcomes" can be defined as goals that have been set by the customer and achieved.
These respondents were asked to describe how they discuss customer outcomes with their teams internally, from a strategic standpoint. Multiple respondents said they focus heavily on successful outcomes, as they can provide them with guidance on how to produce more successful outcomes in the future.
Other respondents noted that they discuss outcomes to understand how certain customizations can be incorporated into future products. For example, if a technician offers a customized service option to a customer with great success, that success could potentially be used to drive outcomes in similar scenarios with other customers.
Multiple respondents also said they both document and discuss every outcome their services have rendered so they can make incremental improvements. This type of incremental improvement will be crucial for organizations to reach a mature level of OaaS.
OaaS Can Produce New Lines of Service
Field service leaders are interested not only in producing positive outcomes for their customers but also in developing new lines of service to drive revenue and improve customer satisfaction. Service calls that require customization and improvisation often involve risk, but they can also produce strong outcomes.
Organizations that are documenting and discussing these cases may be able to gain a better understanding of what their customers need and how the organization can fill them. By understanding this, they can deliver better outcomes and transform field service into a profit center.
Finally, any field service team that has adopted OaaS as a current or potential business model should review technologies like augmented reality, customer-facing AI solutions, field service management technology, and self-service tools. In the study, these were the technologies most often cited by respondents.
To learn more about how you can perfect your OaaS business, don't miss the next Field Service conference. It's taking place from November 16th to 18th at the JW Marriott in Palm Springs, California.
Download the Agenda today.