PLEASANTON, Calif., Sept. 12, 2019 /PRNewswire/ -- ServiceMax, the leading provider of cloud-based software for service execution management, today unveiled the findings of a new commissioned study conducted by Forrester Consulting. Research results show that shifting business models and workforce challenges are driving the pace and scope of service transformation, causing organizations that deliver complex service execution to address their workforce, the equipment they repair and maintain, and their customers, in order to drive sustainable transformation and stay ahead of the competition.
The next five years will bring disruptive and major changes to repair, maintenance and service workforces globally. Revenue from servitization and outcome-based business models will exceed standalone hardware and equipment sales by 2024. According to the study, a third of product companies will be services businesses within five years, with mixed labor models playing an increasingly important role as businesses develop new capabilities to provide services that compliment traditional product offerings. The shift from grease to code is well underway, as firms unlock valuable data about their assets and break down silos between operational technology and information technology teams. 89% of companies are making it a high or critical priority to collect equipment and service data to drive business decisions, but the digitalization of industry requires new skills to operate machinery and the struggle to find service technicians with the required knowledge and expertise remains an issue.
The September 2019 Forrester Consulting study, From Grease to Code: What Drives Digital Service Transformation surveyed 675 digital transformation decision makers across North America, Europe, the Middle East, and Asia Pacific that are currently undergoing or have already completed significant portions of their digital transformation. Respondents are in infrastructure roles at global industrial enterprises, including the manufacturing, healthcare, utilities and telecommunications industries.
Key findings from the ServiceMax-commissioned research include:
- The digitalization of industrial services requires new skills. Firms recognize they need new skills to manage and operate machinery. However, 97% report challenges in sourcing talent, with 49% specifically highlighting the challenge of finding employees with the needed knowledge and expertise. Companies are responding to the challenge by prioritizing increasing the digital skills of service technicians (88%), connecting third party contractors with access to technical knowledge in real-time (81%), and implementing a mixed-labor model where they increase reliance on contractors and third parties (76%).
- Digital transformation has shifted attention to harnessing equipment data for insights. 80% of companies agree that their digital transformation has increased the importance of collecting and using equipment or service data to drive business decisions. However, results show that firms are not making the most of these insights today. For 86% of companies, the average lifespan of their equipment is less than 10 years. While 59% say they know they are not retiring equipment prematurely, this means 41% of companies do not have sufficient insight into their equipment to fully justify their actions. To overcome these issues, most companies are increasing spending, currently investing, or planning to invest in break-fix (71%), field service management (78%), and preventive time-based (89%) or condition-based maintenance (86%).
- New service delivery models improve customer experience. As-a-service businesses and predictive maintenance models will contribute most of the revenue within five years. Offering assets on subscription, enabling preventative maintenance and shifting to as-a-service delivery models are seen as critical for improving customer experience. 39% of companies have already invested in predictive maintenance today, and a further 49% will do so within three years.
"For over a decade, ServiceMax has worked with enterprise companies around the world, providing the latest digital tools to improve the productivity of complex service execution," said Neil Barua, CEO of ServiceMax. "We are excited to see this data reinforce the increasing need our customers have to transform their repair, maintenance and service operations. We look forward to supporting them on their journey - with our comprehensive service execution platform - to deliver unparalleled results."
For additional findings, read the full study: From Grease to Code: What Drives Digital Service Transformation.
ServiceMax is the global leader in Service Execution Management, offering cloud-based software that improves the productivity of complex, equipment-centric service execution. Enterprise companies across the globe have turned to ServiceMax to help them keep the world running. For more information, visit www.servicemax.com.