FSMTalks - Laila Keisele - Field Service digitization in public sector
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Suggestion to FSM providers: Create business model that: Standard solution as a minimum cover for users to start Made covers from continuing adjustments what can be used based on customer readiness to go Book project managers for Public side as an experts to help to set project frame, time-line, will help to make decisions during the implementation Please, target the Public sector and there is no Capacity to think about it Suggestion to Public Sector Companies Keep simple approach and leverage your expectations on functionality Adopt processes built into the software instead of adapting the program to your processes Ask support (purchase) from market an IT solution Project Team with hands-on experts Decide and focus all the time
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FSMTalks - Laila Keisele - Field Service digitization in public sector
- 1. Field Service digitization in public sector Laila Keisele, Board Member @ Rīgas Namu Pārvaldnieks
- 2. Public Sector Public sector - portion of the economy composed of all levels of government and government- controlled enterprises. It does not include private companies, voluntary organizations, and households, but includes also public local authorities.
- 3. Challenges on Service delivery for Public Sector ● The same expectations from customer ● Public sector environment with private sector rules
- 4. Customer expectations of Public Sector *-data 2020, local authorities n=104 26% 33% 40% 42% 47% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Proactively Inform Customers Availbale Customer Standard Monitor Customer Satisfaction Can say that know their SLAs performance Notifications follow to Customer
- 5. Customer Orientation level on Public Sector through Digitalization ● Announced SLAs ● Real-time Service Monitoring ● Customer expectations management ● Customer experience measurements ● Communication & Notifications during the Service providing
- 6. Public Service Delivery Optimization via FSM ● There are 28 Public state companies from 226 what has employee number above 300 ● There are ~42 000 number of employees Total ● Personnel costs based on 2020 data is 20- 23% of Total costs
- 7. 40% 30% 30% 40% Preparing to work Get to teh Site Work on Site
- 8. 120.0 125.0 130.0 135.0 140.0 145.0 150.0 155.0 Electricity, gas supply, heat supply and air conditioning Operation of administrative and service providers Other services 2021 Q4 2022 Q1 2022 Q2 Labor Costs in Field service Labor Costs 2021 Q4 2022 Q1 2022 Q2 Delta Electricity, gas supply, heat supply and air conditioning 130,9 151,3 136,3 4% Operation of administrative and service providers 145,6 148,7 152,3 5% Other services 142,9 150,2 144,4 1%
- 9. Public Service Delivery Optimization via FSM *-data 2021, LV Statistics Cometee **-Public State Companies statistics - https://www.valstskapitals.gov.lv/lv/ State Public Companies Number of employees** Personal costs* per year, mlj EUR Number of employees (Talking out culture and hospitals Personal costs per year, mlj EUR NUmber of Companies >300 employess 28 3099* 17 2641* Total number of employees 42 031 727 27 792 505 Number of employees potentially on Field (*40%) 16 812 291 11 117 202 Optimization potential by FSM 3 362 58 2 223 40 8% 8%
- 10. FSM is ‘New normal’’ for sure “The expectations of customers not differs today on public services and private sector - they are equally high. The customers are not willing to know about regulated budgets, regulations and bureaucratic restrictions. If digital solutions are able to provide the highest level on return of efficiency, then why field management by support of digital technologies not a priority #1 in the public sector?!”
- 11. Public Sector challenges on Digitalization ● Decision making ● In-house Expertise ● Experience ● Procurement procedure
- 12. Decision Time Decision Flexibility DECISION GAP Private Public Decison GAP
- 13. Decisions ● Public sector companies has pressure from society to do ‘right from first time’
- 14. Public sector companies do not have expertise in-house
- 15. FSM software acquisition journey on Public Sector length more than 3 years 2019 2020 2021 2022 2023 2024 PSC* X PSC Y Decision Procurement procedure start 09 2020 Negotiation on functioning specification Expected Agreement 01 2023 Expected Delivery 01 2024 Decision on Partner choose 03 2021 Identified need Procurement procedure start 01 2022 Agreement ? Delivery ? Procurement process stops / no result 2 x Pilot & decision *PSC – Public State Company
- 16. Experience ● Public sector companies certainly not complementing their operation by FSMs every day or every year
- 17. Unreached benefits on planed optimisation by FSM due to long procurement procedure PSC* X PSC* Y savings 1.0 m EUR Y 0,6 m EUR Y losts 3.0 m EUR PP 1,8 m EUR PP *PSC – Public State Company
- 18. Suggestion to FSM providers Create business model that: ● Standard solution as a minimum cover for users to start ● Made covers from continuing adjustments what can be used based on customer readiness to go ● Book project managers for Public side as an experts to help to set project frame, time-line, will help to make decisions during the implementation ● Please, target the Public sector and there is no Capacity to think about it
- 19. Suggestion to Public Sector Companies ● Keep simple approach and leverage your expectations on functionality ● Adopt processes built into the software instead of adapting the program to your processes ● Ask support (purchase) from market an IT solution Project Team with hands-on experts ● Decide and focus all the time
- 20. Recommendations to public sector management regulatory bodies Mitigate or relieve, or educate IT solution procurement procedure in the name of digital future on Public Sector!
- 21. Thank you! Laila Keisele, Board Member @ Rīgas Namu Pārvaldnieks Thank You for inspiration : @kristapskrumins @lp @raivismiezitis @lp @antrazarina @rnp @kristsleiskalns @rnp @marissvilans @infotrust @ingasproge @lp
Editor's Notes
- While we talking about public sector, to be with You on the same page, we are not talking only about State government institution.
- Notes: Public service and utility industries have a lot in common nowadays. The budgets are always short, regulations are strict, and expectations are high. There's a lot of attention attracted to public services, and no one cares about the depths of the bureaucratic hell one needs to get through to perform a task Public Sector struggles! Public sector works on private market rules now - on aspects of customer expectation and business environment. But there is huge disbalance on restrictions and regulation how You can operate or use your competitive advantage, or how you affect market, or decide on which business model you would like to operate
- Among many business researchers is consensus that currently the quality of customer services offered by public agencies is far less compared to the quality of business enterprises. Main reason of difference is - lack of motivation (probably bacause the aim is different),and - lack of qualifications for dealing with customers, and - level of communication. Despite the rapid development of new technologies and services, DEFI indexes shows that government digitalization is pretty high in Latvia. Can we say really that digitalization level is on appropriate level in Public Sector? Based on report of …. (local public authorities) that on Public local authorities only …% (picture and grapf) Can we consider the positive environment for digitalization development!?
- There are missing Customer orientation aspects on many of Public sector provided services. Do we know many public companies that has can provide the ‘real-time connectivity’? That I as a customer can check my requests statuses and so on? I have been working already 4 years directly in this field and I can say that there is some challenges on it. Digitalization can support this aspect to obtain. Customer orientation and customer experience on service provided I evaluating as pretty low, specially on the field of Service on operations.
- On these 2 public sector companies, what i representes last 4 years each has an more than 2500 employees, with the 1/3 of employees it could be managed and traced by FSM solutions. There is no statistics available how many employees as a blue colors work on Sites on Public Sector. There are 28 Public state companies from 226 wo has an employee number above 300. It is around 42 000 employees. And good to know that personnel costs is around 20% from Total costs. But lets assume the potential of optimization by FSM!
- I am process optimizer and I know that so many calculations during the process re-engeneering optimizers used as INDICATIVE. So – Based on experience that on Public Sector there are only some 40% of full time capacity WE can add AS THE the real work on Site. Total personal costs for these 28 Public State companies is 42 031 employees, optimisation potential fo 40% is 16 812 employees, talking out field which not real Field Service operation, we has 11 117 employees. Assume that FSM gives 20% optimization of FTEs, and we get 2223 employees optimization multiplying with the personnel costs yearly = 40 milj Eur per Year.
- Personnel costs based on 2020 data is 20-23% of Total costs. Most Public sector companies operates on fieelds of electricuty, gas supply… administrative service providers, waste disposal, Operations in real estate and it mainteance. There is not doubt that labor costs increasing in these fields during latest periods.. 1. Health protection;2. Electricity, gas supply, heat supply and air conditioning;3. Water extraction, purification and supply;4. Operations with real estate;5. Waste collection, processing and disposal; material processing .
- Returning to the calculation on potential of optimisation via FSM software in Public Service deliveries, I came to indication – it is ~40 mlj Eur per year. Total personal costs for these 28 Public State companies is 42 031 employees, optimisation potential to 40% is 16 812 employees, talking out field which not real Field Service operation, we has 11 117 employees. Assume that FSM gives 20% optimization of FTEs, and we get 2223 employees optimization multiplying with the personnel costs yearly = 40 milj Eur per Year. (Nodarbinātā vidējā bruto atlīdzība gadā,) Average annual gross compensation of the 1 employee EUR for these 17 sorted companies by 2021 data = 18 180 eur / 1515 eur M Is it real number this 40 miljons EUR what can be optimized by FSM solution? Yes. And answer will come from my side a bit later!
- Now I came to my quote distributed before:
- Based on my experience I tried to find some answers what You can see on this slide.
- Public sector companies need help to make decisions specially these decisions what comes in line to Digital tools and sowtware. Field Service software is the tool perfectly suited for challenges of the local government and public services industry. In the short period I support middle-size IT company to re-set-up the flowing Projects, where it were on different stages. The challenges on what struggles this company were on that that some 3 Projects from 5 with the Public institutions were stopped without movement already for 0.5 or more than 1 year with no ideas how to move froward (different statuses – was not paid jobs done not agreeing that delivered what was asked, …..) During 3 month I setled up all of them with concrete decisions and plans how to move forward, and the Baltic CEO asked to me – Laila, How you did that in such a short time? My answer was – I helped them to make decision from all of available tension and willing to help! Yes. It took energy.
- Public sector companies do not have expertise in-house As today we met here – for all FSM provider companies, be sure, on Public sector there is no appropriate expertise that we can say – they will know how to get ‘on-site’ these solutions what they need. On Public Sector is a grete, really greate ideas, the people who works there are real professionals on their specific fields, they can define what they need, and how they would like to work
- On both cases it took at least 2-3 times to try get procurement procedure to proceed. On a period 3 years. 3 years it the 3 x longer period as standard solution package creating and implementation on site. One of the reason – no experience
- Notes: On both cases it took at least 2-3 times to try get procurement procedure to proceed. On a period 3 years. 3 years it the 3 x longer period as standard solution package creating and implementation on site. One of the reason – no experience
- And here we can mention purchasing procedure what has to be done to get any of solution on site. Take a look on costs and retention, and how long period it is now to work on these kind of projects. We can say maybe my experience in this field is just a ‘unfortunate coincidence', or I was ‘unlucky with the chosen companies’.. If we are looking on unreached benefits on planned Optimization by FSM due to long procurement procedure, there is proven examples that it has 2-3 mil EURs per Procurement Period. Hope You believe now that optimisation potential on PuBlic services can be reached to 40 m eur
- Notes: If You would like to be on Public sector, my suggestions to any of FSM providers: _ create business model that: _gives an options to get standard solution as a minimum cover for users to start, to be open to offer solution by ‘packages’ _made covers from continuing adjustments what can be used based on customer readiness to go _, were adjust the softwer by models, _book project managers for other side as an experts what will help to set project frame, time-line, will help to make decisions during the implementation _ please, target the Public sector. Public sector had know their needs, but as I mentioned, there is no Capacity to have space to think about it on their daily routines. (vai ir dati par tio, cik liela efektivitāte vai atdeve ir publidkajam sektoram uz 1 izterēto eur?
- Keep simple approach and leverage your expectations on functionality Adopt processes built into the software instead of adapting the program to your processes Ask support (purchase) from market an IT solution Project Team with hands-on experts Decide and focus all the time
- What can I say to the public sector management regulatory bodies Mitigate or relieve, or educate IT solution procurement procedure in the name of digital future on Public Sector!
- Thank You! Thak You for inpiration during all day routines to my past and existing coleleagues