The Outcome-Centric Operating Scenario in Field Service Management

In the outcome-centric operating scenario in field service management (FSM), the technician is a proxy to the owner with a financial interest in outcomes. The equipment-centric scenario is also closely aligned with the outcome-centric scenario, with greater risk placed on the service provider in return for greater profits in the long run.

The benefits of the outcome-centric operating scenario approach to service mean greater risk for the provider. In contrast, the customer benefits from the service provider’s commitment to being a viable and robust business partner to the consumer. This offers the benefit of “stickiness” for the provider, as the customer benefits from the provider taking on aspects of production. In addition, the service contract allows the customer to focus on the business at hand rather than on unexpected issues that drain time and resources.

Changing Operating Scenarios

The pandemic increased the shift toward outcome-based models. It showed just how much the outcome-centric model is inextricably linked to the equipment-centric scenario and its exposure risks, demonstrating the importance of being outcome-centric in relation to equipment-centric. Guarantees of uptime replaced the traditional break-fix SLA delivery methods during the pandemic.

Managing Asset Data in Real Time

Managing asset data in real-time is essential to the provider and consumer, allowing adequate lead time to provide an outcome-centric deliverable. The provider uses asset data to understand any possible issues and plans to resolve them quickly in an outcome-based service scenario. This means having a field service technician available 24/7 in addition to remote options as a way to achieve end-goal and contract promises. These jobs require expertise in outcome-based service delivery as well as equipment.

According to the white paper, “Four Service Scenarios That Can Be Aligned by Service-Centric Thinking,” from Field Service News and Gomocha, “to successfully sell outcome-based contracts, it is essential that the conversation is held at a suitable level with the customer, and held  correctly, i.e., it is the establishment of a genuine business partnership rather than the transactional sale of a service offering.”

Success Business Partnerships in Outcome-Centric Scenarios

Establishing successful business partnerships is key to selling contracts and promoting partnerships. Conversation is a critical element in going beyond reframing old business practices. The service provider must understand the value of their deliverables, including remote work and spare parts.

Following the outcome-centric approach to field service management, industry leaders should focus on answering the following questions as they prepare to reshape their business models post-COVID-19:

  • Are they able to receive data from their assets in the field?
  • Do they have the capability to monitor this data in real-time and draw meaningful, actionable insight from them?
  • Does the organization have the personnel, structure, and resources to meet the guarantees of uptime required for such a model?
  • Is there an appetite for customers within their sector for such a model?
  • Given the potential exposure to risk that outcome models can bring, would they be looking to operate this model alongside other service solutions?

Outcome-centric scenarios depend on successful partnering, understanding the value of deliverables, receiving and managing asset data, and having the resources to meet the required uptime in service solutions. Asking these critical questions as new potential awakens means making clear moves toward successful outcome-centric, forward-looking, solution-based and data-informed scenarios.