Initial conclusions from the quantitative study into fleet and field service management

Initial conclusions from the quantitative study into fleet and field service management

In the first FSN Research study of 2023 we have partnered with GPS Insight to better understand the relationship between fleet management and field service operations…

 

Our goal in the study is to understand if the two business units work together and use these shared tools to drive efficiencies across the business as a whole or if they’re being used in isolation.

 

Across a series of articles, we will now explore the findings of the study’s quantitive phase, presenting the data with little editorialization so you can see the trends directly. In this final article in the series we now draw some initial conclusions as we end the first phase of this study. 

 

As we come to the end of the analysis of the first phase of this study and reflect on the study’s headline statistics, some initial observations can be made.

 

Overall we can see some clear correlations between field service organizations’ maturity levels in terms of the technology they have adopted, the sophistication of their service offerings, and their ability to leverage fleet management data within their field service operations.

 

Given that we are familiar with the correlation between technology adoption and service portfolio complexity from previous FSN Research studies, we can, with relative confidence, infer that the correlation we are seeing in this study between those organizations that can effectively utilize fleet management data within their field service operations is likely more related to their broader technological maturity than the sophistication of their service operations.

 

This makes sense in that those organizations with a more mature use of technology, on the whole, will likely have been through or are going through digital transformation within the business. Hence, they understand the value of data flowing across an organization rather than being locked up in individual business unit silos.

 

It is interesting to note how those organizations that see fleet management as part of the field service business unit are generally further along this path than the industry. Particularly, when the barriers of information flow are removed, as can be and has been achieved by the leading edge organizations in this study, this would certainly seem to make sense as the efficiency of the fleet management organization will have a direct impact on the performance of the field service management operation.

 

Similarly, feeding data from field service into fleet management, particularly around mileage, would allow the fleet management team to work more proactively and in a more structured way by utilizing more robust data to support their planning.

In the first FSN Research study of 2023 we have partnered with GPS Insight to better understand the relationship between fleet management and field service operations…

 

Our goal in the study is to understand if the two business units work together and use these shared tools to drive efficiencies across the business as a whole or if they’re being used in isolation.

 

Across a series of articles, we will now explore the findings of the study’s quantitive phase, presenting the data with little editorialisation so you can see the trends directly. In this final article in the series we now draw some initial conclusions as we end the first phase of this study. 

 

As we come to the end of the analysis of the first phase of this study and reflect on the study’s headline statistics, some initial observations can be made.

 

Overall we can see some clear correlations between field service organizations’ maturity levels in terms of the technology they have adopted, the sophistication of their service offerings, and their ability to leverage fleet management data within their field service operations.

 

Given that we are familiar with the correlation between technology adoption and service portfolio complexity from previous FSN Research studies, we can, with relative confidence, infer that the correlation we are seeing in this study between those organizations that can effectively utilize fleet management data within their field service operations is likely more related to their broader technological maturity than the sophistication of their service operations.

 

This makes sense in that those organizations with a more mature use of technology, on the whole, will likely have been through or are going through digital transformation within the business. Hence, they understand the value of data flowing across an organization rather than being locked up in individual business unit silos.

 

It is interesting to note how those organizations that see fleet management as part of the field service business unit are generally further along this path than the industry. Particularly, when the barriers of information flow are removed, as can be and has been achieved by the leading edge organizations in this study, this would certainly seem to make sense as the efficiency of the fleet management organization will have a direct impact on the performance of the field service management operation.

 

Similarly, feeding data from field service into fleet management, particularly around mileage, would allow the fleet management team to work more proactively and in a more structured way by utilizing more robust data to support their planning.

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"Perhaps, in this period of mass disruption and rapid evolution, where digital transformation dominates discussions in the boardroom, service companies are drawn to the more exciting and attention-grabbing transformative projects such as remote service..."

Equally, from a service P&L perspective, fleet management tools such as driver behavior coaching apps can reduce fuel costs, or dash-cams that can reduce insurance costs can and will impact the bottom line.

 

Considering this and the relative ease of system communications in a world of APIs and multi-tenant data solutions, it does seem that many field service organizations are missing out on some easy wins by not initiating this data flow more effectively.

 

Indeed, as we factor the study findings from the final section of this study into these initial conclusions, it could be inferred that even amongst those companies who do have such integration and data flow between field service and fleet management systems, this is more a by-product of other digital transformation elements rather than by design.

 

From the operational structure perspective, field service and fleet management remain primarily two separate areas of responsibility and management structure, even in those organizations where the two fall under one division within the business, which would support this assertion.

 

Yet, as we saw in the final question of this study, for a sizeable majority of the respondents, the two business units are aligned toward the same goals within the organization.

 

With this in mind, and taking into account the inherent benefits of better aligning the systems in place for both field service management and field service management, we must explore why doing so is not a commonplace practice.

 

It could be that among solution providers in the space, companies like our partner on this study, GPS Insight, who can offer guidance on both sides of the coin as they have deep expertise in both field service management and fleet management, are few and far between.

 

In which case, is it a technological challenge? Perhaps, the technology barriers are not the overriding issue, but it is simply a lack of understanding amongst field service organizations of the benefits of aligning the two business units more effectively.

 

Perhaps, in this period of mass disruption and rapid evolution, where digital transformation dominates discussions in the boardroom, service companies are drawn to the more exciting and attention-grabbing transformative projects such as remote service.

 

We shall explore these questions in the subsequent two phases of this study. However, at first glance, this appears to be an area where service organizations can secure relatively simple, quick wins.

 

For those organizations where fleet management operates outside of the field service business unit, the most common frequency of communication between the fleet management and field service management team was monthly, which was the frequency 36% of companies stated was the case in their business.

 

What is somewhat surprising is that it is very rare amongst all companies, including those where field service and fleet are within the same business unit, for the field service lead to have responsibility for the fleet management team.

 

Even amongst those organizations where the two business units were within the same division, we only see dotted-line responsibility in this regard. This was only present in 17% of companies within this group.

 

However, while it is clear that amongst most organizations within the study, fleet and field service business units operate separately, they are still primarily aligned. 74% of all companies within the study stated that they believed the two business units aligned to the same organizational goals.

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