Companies that successfully transition from traditional maintenance management processes to digitalized ones consistently see extremely positive results. This article will present several advantages directly resulting from the implementation of a next-generation CMMS (Computerized Maintenance Management System).
What is digital transformation?
The digital age began over 50 years ago. The digital revolution, also known as the third industrial revolution, corresponds to the shift from analog mechanical and electronic technology to digital electronics.
Beginning in the second half of the 20th century, this digital revolution really accelerated in the 1970s and 1980s with the introduction of digital memory storage devices and the reduction of their size according to the timescales identified in Moore's Law: an increase in digital transaction capacity of 100% every 18 months.
This has led to an astonishing transformation of all facets of modern life, both private and professional. This phenomenon also has a very strong tendency to spiral out of control, but that is another topic we will address later.
Digital transformation allows organizations to automate and digitize manual administrative processes, freeing people to focus on new, higher value-added activities.
What are the steps involved in a digital transformation?
We can distinguish 4 stages in the evolution of an organization:
- Stage 1 – Significantly lagging behind in terms of digital transformation
- Stage 2 – Beginning of requirements development and emerging organizational will for implementation
- Stage 3 – Software solutions are in place and are improving operational results
- Stage 4 – This is the automation stage: the company's employees collaborate 100% digitally. A large part of communication with customers and partners is also digitized.
How does digital transformation take place within a company?
Of course, there is no single digital transformation. There are many distinct areas within an organization, and while they can all benefit from better tools, the process does not happen at the same pace or at the same time from one department to another.
For example, organizations can invest in cutting-edge mobile technology but not change their inventory management methods. They can automate technician route planning while continuing to use paper work orders. Let's examine the benefits of digitalization through several use cases.
CMMS: the benefits of digital technology
By the way, what does GMAO mean? A GMAO, which is the acronym for Computerized Maintenance Management System, is a software that records all information relating to the maintenance of technical equipment and supports users in their operations.
Time between the completion of a service and its invoicing
This is the time it takes to bill a client for maintenance performed on their behalf, once that maintenance is completed. In organizations that have not implemented digital transformation, this timeframe can range from several days to two or five weeks.
An advanced maintenance provider in its digital transformation is able to generate invoices on the same day. This is achieved because all the necessary billing information is collected in real time during the service call, the client's pro forma invoice is automatically generated, a digital signature is collected on-site, and then everything is shared in real time via the mobile application and integrated into an ERP system for immediate invoicing.
This significantly reduces debt recovery time, simplifies the entire accounts settlement process, reduces the workload of administrative staff, and frees up enormous amounts of cash.
This cash is now available earlier to pay commissions, bonuses, marketing, salaries, in short, to be put at the service of the organization in order to earn more money faster.
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Technician efficiency
With a mobile application for field maintenance management, the technician no longer has work orders to fill out, manuals to carry, parts order forms to submit, maps to consult – all the information he needs is at his fingertips.
The mobile device tells them the location and date of the next intervention, the best way to get there, the parts they will probably need, as well as manuals and technical information, all in digital form, up-to-date and on demand.
In addition, the device may have the ability to display videos of maintenance tasks, provide augmented reality guided maintenance sessions, tutorials, and allow the technician to phone a friend and activate level 2 remote assistance with audio and video capability.
If we take into account the time that technicians in less innovative organizations spend on administrative tasks—searching for information, ordering parts, finding diagrams and reference materials—we observed an improvement of between 20% and 40% in the utilization of technicians or engineers. This represents a real and effective increase in working time.
This can pave the way for more work completed per day, week, or month. It can allow for more time to be spent with the client, developing better and deeper relationships. It can even allow technicians and engineers to focus on additional sales opportunities. In fact, it enables organizations to do much more with the people they already have, at no extra cost.
Back-office efficiency
While digital transformation leads to a significant increase in technician efficiency, this increase directly impacts their back-office counterparts. In less advanced operations, all the data that technicians record on service reports, purchase orders, test and inspection reports, etc., must be read, interpreted, and entered into ERP systems or legacy software that offers no possibility of data collection from the field.
Having to enter data multiple times and manually retrieve information represents a huge burden for back-office staff. When back-office staff aren't busy deciphering paper work orders and entering data, they have to search the contract database, validate customer information, locate diagrams, track parts orders or shipments, or try to understand billing errors.
In a fully digitized company, these activities are a thing of the past. All data is entered only once, captured, saved, and reused when needed.
Contracts and rights are available instantly. Customers have access to their contract history and can review their transaction history themselves. The need for and role of back-office staff is changing, evolving from administrative support personnel to a business development engine. We have seen back-office usage double.
The end of unbilled services
The ability to instantly record and reproduce what is happening across the organization is a new possibility once digital transformation has taken place.
Often, when we discuss leaks – the practice of not charging for everything a company is entitled to charge – with companies in the maintenance sector, we find that they know this is happening, but they have no way of capturing these leaks:
You're asking us to quantify something we can't see. Obviously, if we could, we would stop it.
Digital tools enable instant validation of contractual commitments and precise tracking of parts used within a contract. Accurately measuring profitability becomes very easy.
We are seeing a 15 to 20% reduction in leaks in some companies due to the inability to validate contracts and/or properly monitor the use of spare parts.
A mode of continuous improvement
Engaging in a digital transformation leads to significant improvements in operational performance, resulting in huge financial benefits for asset and equipment maintenance service companies.
Eliminating non-value-added tasks allows your teams to focus on their customers, fix equipment correctly the first time, find additional revenue streams, and ensure you can bill for everything you need to bill for – without leaving money on the table.
There is no end to digital transformation . It is a process that will continue to evolve, progress, and expand. Companies that, for one reason or another, have not taken advantage of it will find themselves increasingly outpaced by their competitors in terms of profitability and competitiveness and will inevitably disappear.
Conclusion
Companies that successfully transition from traditional and manual processes to 100% digitalized processes see significant improvements in operational performance, resulting in huge financial benefits.
By eliminating tedious tasks, your teams can focus on their customers, properly repair equipment the first time, find additional revenue streams, and ensure you can bill for everything you need to bill for.
