A Magazine for the IFS Ecosystem
02 Table of Contents 03 IFS at the 2023 Big Ten Basketball tournament 04 Letter from the CEO 05 Moment of Service Book 06 IFS News Update 07 Product Successes 08 Building Resiliency: Aligning Asset Management with Strategic Goals 10 Partnership with BEAT Cycling! 12 Gear up for IFS Cloud 23R1 14 The IFS Cloud Cable Car 15 IFS integration with Boomi 17 5-step checklist for weighing your ITSM technology options 19 How technology is the key to service success 22 Case study: Dolphin Drilling 26 How to ensure you get value from your technology investment 30 The future of operational supply planning and scheduling: DDMRP 32 IFS Attends Mobile World Congress Barcelona 2023 34 Working together to help make the world a better place MindFuel // 2
From March 14 to April 3, March Madness – a series of intense tournaments across the US – aired on local and national TV-networks. Viewed by millions of fans across all of the United States, this was a fantastic opportunity for IFS to build brand awareness in North America, which continues to be a key growth market. The tournament was created in 1939 by the National Association of Basketball Coaches and was the idea of Ohio State coach Harold Olsen. Played mostly during March, it has become one of the most popular annual sporting events in the US! Basketball’s future talents had the chance to showcase their passion and grit over 42 matches, with IFS as one of the main partners of the BIG TEN basketball conference – cheering every team on as they fought for their place in the finals. IFS at the 2023 Big Ten Basketball tournament in Chicago! As some might recall, we dipped our toes in the basketball pool last year with IFS featuring at the Big 12 tournament. Over the course of March and April, over 25 million viewers parked themselves in front of the TV to see some of the States most well-known college basketball teams compete. At all 26 women's and 26 men's matches, IFS was present courtside, turning the whole stadium purple. The Big Ten was an amazing way to ensure we are seen by a wider audience outside of the 9 to 5 workday, while signally our commitment to the sports talent of tomorrow. MindFuel // 3
It is hard to believe that my last MindFuel letter was back in October 2022, only a few days ahead of our global community event, IFS UNLEASHED, in Miami. It was a great success, and for those of you who attended, I want to thank you for your support. If you did not manage to join us at UNLEASHED, we look forward to seeing you soon! In the meantime, we intend to keep you updated on all things IFS through our regional IFS Connect events. Over the course of May and June, eight events are taking place across the UK, Nordics, USA, UAE, France, DACH, Poland, and Benelux. The IFS Connect series is bigger and better than before, with our teams ready to welcome you and deliver an unforgettable experience! The umbrella theme for all the events is “Experience Your Future”. Without question, the last few years have shown us that change is constant. Throughout all our businesses, we have adapted and evolved, and we need to keep thinking ahead. An illustration of this would be the sharp contrast between Q1 of 2022, when the economy was poised for recovery after the Covid disruption, and now in Q1 of 2023, where we find ourselves in a very different situation characterized by geopolitical and economic instabilities. For these reasons, we want our IFS Connect events to deliver tangible value and be focused on your challenges. We want to show you what you can expect from IFS today, in 2023, and beyond. Equally, we want to help you visualize what your businesses could achieve with our partnership and explore how IFS can help build agility, strength, and resilience into your business. In May, we will deliver the first of our twice-yearly updates for IFS Cloud in 2023. We know that more and more of you are synced into this timeline and based on your feedback, we have launched a new cadence this year onwards. This will have been communicated to you by your account managers and via our community channels. The date for our first IFS Cloud update will be on the 25th of May – a shift from our previous April timeline. While our second IFS Cloud update has shifted from October to the 30th of November. You will be able to read more about what to expect from this first update across our ERP, EAM and FSM capabilities in this edition of MindFuel, specifically when it comes to optimizing people, assets and services, connecting global operations and meeting ESG goals. I know our teams are looking forward to sharing more with you during our IFS Connect events. You will have also seen that in April we welcomed Matthias Heiden as IFS’s new Chief Financial Officer. Matthias brings a strong financial pedigree to IFS with extensive experience, including CFO and Executive Director at Software AG, Group CFO at SAF-HOLLAND SE and Regional CFO and Managing Director at SAP. Finally, I would like to mention our 2022 results. We had a very successful year; the hard work we have put into our product, our services and into the team has paid off again. 2022 was our 5th consecutive year of double-digit growth, and we owe this phenomenal achievement to the trust our customers and partners have placed in us. And for that, I would like to thank you. In terms of what is in store for 2023, we will continue to focus on our core values and deliver what you need regarding our product, while supporting our ecosystem to grow and be successful with IFS. Thank you for your ongoing collaboration and partnership and enjoy the read. Darren Roos Chief Executive Officer Dear Customers and Partners, MindFuel // 4
Darren Roos' recent book, "Moment of Service," delves into our trademarked brand concept of delivering on our promise to customers at the Moment of Service™, which he champions as the signature concept of his tenure as CEO of IFS. What is the Moment of Service™? The Moment of Service™ refers to the specific point in time when a customer interacts with a company's products, services, or employees, and forms a positive or negative impression of the company. In his book "Moment of Service," Darren Roos explains that these moments are pivotal to the overall customer experience and can significantly impact customer loyalty and advocacy. Roos recommends that companies should strive to create a series of positive Moments of Service throughout the customer journey, rather than just focusing on a single touchpoint or interaction. To achieve this, companies must understand their customers’ needs and preferences and tailor each Moment of Service to meet those requirements, as well as: 1. Deliver a personalized experience that goes beyond the transactional aspects of the interaction 2. Build trust and empathy with the customer through active listening, communication, and transparency 3. Continuously improve the customer experience by seeking feedback and innovating to meet changing needs and expectations Overall, Roos contends that by prioritizing the creation of positive Moments of Service, companies can differentiate themselves in a crowded marketplace, enhance customer loyalty and advocacy, and ultimately achieve long-term success. Find out more about the Moment of Service by industry: momentofservice.ifs.com Secrets to Superior Customer Journeys The Moment of Service book MindFuel // 5
Some of the key news highlights since the last issue of MindFuel Magazine. IFS News Update 25 years of excellence IFS has grown from a two-room office in central Colombo, with 26 software engineers, supported by colleagues from Europe, to the second largest technology employer in the country! With over 2,200 employees, IFS Sri Lanka is the R&D powerhouse of IFS global operations. Read more IFS welcomes new Chief Financial Officer IFS performance outpaces competitors with 5th consecutive year of double digit growth. Our incredible performance in challenging market conditions demonstrates a level of robustness and reliability that is a testament to our relevance and customer focus. Since the April 1, 2023, Matthias Heiden took over the role of Chief Financial Officer from Constance Minc, as Constance steps into a new role at IFS. Read more 01 02 IFS performance outpaces competitors with 5th consecutive year of double-digit growth: • +57% ARR YoY • +55% Cloud Revenue YoY • +44% Software Revenue YoY • 75% of total revenue is recurring 03 MindFuel // 6
Our most recent accolade! IFS is named a 2023 Gartner Peer Insights Cloud ERP Customers’ Choice IFS is delighted to receive recognition in the 2023 Gartner Peer Insights "Voice of the Customer" report, which synthesizes Gartner Peer Insights’ reviews into insights for IT decision makers. Specifically, the report summarizes Peer Insights Cloud ERP reviews over an 18-month period, IFS is a Leader across all our enterprise software solutions… Product Successes categorizing providers based on User Interest and Adoption (# of Reviews) and Overall Experience (Ratings). With this favorable result, IFS is currently a GPI Customers’ Choice for both Cloud ERP and EAM, offering credible recognition of IFS customers’ high level of satisfaction for both solutions. Read the report ESM EAM FSM ERP MindFuel // 7
Enterprise Asset Management (EAM) has become a critical enabler in driving business success. Once considered the domain of operations and floor managers, today, EAM delivers accurate, real-time information to leaders across companies, helping to inform strategic and operational decisions. In a recent IFS paper: A Resilient Enterprise with IFS Cloud EAM, we examined the remarkable advances underway within the EAM space and how companies leverage the technology to take affirmative action today while actively planning for the future. This blog post takes a closer look at the strategic role of EAM and the broader business benefits it delivers. An Enterprise-Wide View of your Business With an ever-growing network of digital and always-on assets, EAM has come to represent the heartbeat of the business. Delivering accurate, realtime data, the strategic value of EAM surpasses its traditional role as a simple asset management tool, allowing the enterprise to: Building Resiliency: Aligning Asset Management with Strategic Goals • Implement universal business objectives • Standardize best practices and productivity metrics • Better manage aging infrastructure for greater control of operational risk • Achieve productivity, sustainability, and regulatory goals Universal business objectives With EAM, companies set consistent operational business objectives across all sites and geographies, considering variances in infrastructure, workforce, and government/industry regulations by region. This balanced approach to achieving business objectives ensures each location contributes positively to the company's common goals. Once these standards have been defined and implemented, the company can monitor performance in real-time, quickly detecting and responding to irregularities as they happen. MindFuel // 8
This responsive business model allows leadership to make decisions in the moment. For example, if one facility is experiencing temporary downtime, productivity is increased in another to offset the variance until the situation resolves. Standardized best practices and productivity EAM technology provides data-driven metrics that allow leaders to compare best practices by facility. This broad oversight enables companies to quickly identify those work models that best accommodate the strategic needs of the business. Once verified, best practices and workflows can be rolled out to all sites, ensuring a standardized model that optimizes overall productivity while achieving strategic corporate objectives. Effective management of aging infrastructure Aging infrastructure represents an ever-increasing risk to the enterprise with the potential of outages, hardware failures, and data corruption. While doing a whole-scale upgrade across the operation may not be feasible, the business must proactively manage older components to maximize safety and minimize disruptions. EAM technology provides real-time oversight, including data collection and analysis, condition assessment, and alerts when risk levels exceed acceptable thresholds. These real-time insights allow the enterprise to respond proactively to potential risk scenarios, ensuring business continuity. Achieve productivity, sustainability, and regulatory objectives While previously considered a tactical tool focused on the output of physical assets, EAM has extended its value to the enterprise. Along with productivity management, EAM provides rich data insights that help the organization with strategic initiatives such as sustainability, where the business is responsible for its performance. Support the strategic needs of your business with IFS Cloud EAM Our customers rely on IFS Cloud EAM to provide resilient and always-on oversight of assets and processes. With data-driven insights, leaders can rely on accurate information to help inform important business decisions in the moment. For more information download the paper: A resilient Enterprise with IFS Cloud EAM or visit our website. MindFuel // 9
Who is BEAT Cycling? The professional cycling world faces tough challenges. The current business model behind a professional cycling team, which lives by the grace of sponsors alone, has been under discussion for years. That is why BEAT started their mission: building a professional cycling team based on a new model. A cycling team that is founded on its own strong identity and is rooted in a cycling community of adventurers and challengers on and off the bike. Together, they are shaping and building the future of cycling. What distinguishes them as well, is that anyone and everyone can become a member of BEAT Cycling and join their journey. In addition, they are striving for a more sustainable approach to cycling. The most inspiring examples of which are their electrical fleet of cars and their waste minimization project. Their approach fits well with the values of IFS Ultimo and provides us with a great opportunity to increase brand awareness. Partnership with BEAT Cycling! Shifting gears Partnership You can find the IFS logo on the shoulders of their brand-new kit, which is worn by Olympic Champion Matthijs Büchli, World Champion Yoeri Havik, and cycling journalist and influencer, Thijs Zonneveld, and lots of other great riders. They will ride a lot of races in several disciplines (road, track & gravel) across Europe, as well as a few races in the US. The IFS logo will join them everywhere. We are looking forward to a great partnership together! Read more. As of this year, we are a proud partner of BEAT Cycling Club. This Dutch cycling club is innovating and disrupting the world of professional cycling and using IFS Ultimo EAM software to maintain and manage their bikes, cars, tools and inventory. MindFuel // 10
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In March of 2021, we launched IFS Cloud to our customers. And to say our customers have adopted IFS Cloud at a rapid pace is an understatement. We have added more Users in 2 years than in the first 25 years of IFS’s existence. And we have added hundreds of enhancements to benefit you, our customers. When we think about enhancements, there are things you can see and so many more that you can’t. All of them add to both your business and technical resiliency. Resiliency has increasingly mattered to our customers and the world as it helps us all prepare for and respond to various risks and disruptions that may affect your operations, reputation, and profitability. With 23R1, we have focused on three major themes that help you. They are focused on Optimizing People, Assets and Services, Connecting your Global Operations and meeting your ESG Goals Profitably. Optimize People, Assets and Services Gear up for IFS Cloud™ 23R1 We are proud of the roughly 500 customers with locations in over 80 different countries who have selected and deployed IFS Cloud to help them build more resilient businesses. IFS has provided many ways for you to learn more about the new enhancements to IFS Cloud. Please visit http://community.ifs.com to get an overview of the latest enhancements and how they benefit your business. Against a backdrop of disruption, IFS Cloud optimizes hundreds of processes and decisions across people, assets, and services to deliver successful outcomes while ensuring organizations can quickly pivot as needs arise. Established in 1946, halstrup-walcher provides precision drive and sensor technology to companies across the globe. Since January 2022, they have been using IFS Cloud to support their demanding engineering production schedule, with IFS partner bytics rolling out the implementation project seamlessly. The opportunity to replace several disparate software packages with one unified IFS Cloud solution was particularly appealing. A key benefit has been the ability to quickly configure new products from previous specifications using IFS Cloud’s Configure to Order functionality. “We were using different point solutions for finance, quality assurance and HR. IFS Cloud would provide us a fully integrated solution using accurate, real-time master data.” Thomas Hoch, Head of Quality Management and Solution Architect MindFuel // 12
Connect Global Operations Achieve ESG Goals Profitability Connect siloed operations to respond quickly to global turbulence. IFS Cloud unites departments, sites, and assets to identify and address risks and opportunities. Equip teams to reduce complexity and effort, and operate consistently. Set goals in the right way to achieve ESG goals and financial profitability. IFS provides the data to show progress against commitments while helping to find ways to reduce costs and increase revenue through sustainable efforts. Founded in 1904 Jakob AG is an international supplier of traditional rope and cable products, plus engineered steel wire, mesh, fixings, and accessories for global architectural and construction applications. Faced with continued expansion and increasing order volumes for its manufacturing facilities in Switzerland and Vietnam, the company took the decision to deploy IFS Cloud via partner bytics, starting with the sites in Vietnam and the United States going live in 2022, and the locations in Switzerland, Austria, Germany, and France which were rolled-out in January 2023. “Our international operation poses many administrative challenges. It means we require excellent communication, real-time visibility of orders and efficient planning for supply chain logistics.” Matthias Feierabend, CFO for Jakob AG EDF Renewables UK and Ireland is a joint venture between EDF Renewables Group and EDF Energy and specializes in wind, solar and battery technology. To support their plans to increase total green energy output produced by their onshore and offshore operations, EDF Renewables UK launched a project to better manage all of their assets in a sustainable manner. As IFS Cloud is a single platform with a single data model supported by key value drivers such as Asset Performance Management, Internet of Things (IoT), mobile work execution and live dashboards and KPIs, the company will be able to provide end-to-end visibility across multiple organizational structures and business units. “Delivering IFS Cloud forms a key part of our future growth strategy. The new platform will allow us to scale our business more efficiently and consistently, whilst also capturing the richer management information needed to drive continuous improvement and inform key decision-making. Using IFS Cloud will enable us to optimize the quality and utilization of our assets, as well as create shareholder value through improved information flows. I couldn’t be more pleased to be working with IFS.” Piero Maggio, Director of Asset Operations EDF Renewables UK & Ireland MindFuel // 13
London’s only cable car has entered a new era with IFS taking over as sponsor as part of a deal which has also seen the Cable Car terminals being renamed IFS Cloud Greenwich Peninsula and IFS Cloud Royal Docks. The new partnership puts IFS on the map both figuratively and literally, raising visibility with the millions of people traveling in and around London annually, in addition to those who visit the many industry and community events at The O2 and ExCeL London. From an IFS perspective, showcasing our brand on this platform makes a lot of sense – our software is behind the construction through Doppelmayr and the running of the IFS Cloud Cable Car via Transport for London – all of which makes for a truly authentic partnership. Buy tickets Cable Car The IFS Cloud MindFuel // 14
Historically, connecting ERP systems to other data sources and applications has meant customizing and modifying the core code. But developing multiple point-to-point custom integrations is complex, and requires time, resources and testing. Crucially, modifying the ERP core has several longterm implications. As well as becoming costly to maintain, customizations can impede or even prevent future upgrades, including the ability to benefit from constantly updated, or evergreen, software, like IFS Cloud. For several years, IFS has pioneered the use of open, RESTFUL APIs, which make it easy to connect, extend or integrate new applications and services into IFS whilst keeping the core standard. This also means that IFS can seamlessly connect to the enterprise integration platform provided by Boomi. No-code integration with Boomi About Dell Boomi Boomi is a unified, cloud-native integrationas-a-service platform that lets customers connect any applications and services with IFS software, including integrating with consumer-related services and business systems. Currently serving 15,000 customers, Boomi enables some 2.2 billion integrations a month using 80,000 integration engines. Cloud-based, the subscription service can be connected to any cloud or on-premise system. MindFuel // 15
Enabling the Composable Enterprise: ‘Connect IFS Cloud to everything with Boomi’ Webinars Join Boomi and IFS for a series of short live sessions to learn how we are enabling customers to deliver great ‘Moments of Service’ with a composable enterprise strategy: ifs.biz/j8l Enter Boomi: no-code integration The Boomi integration platform overcomes the complexities, problems and costs of integrating enterprise software. It allows best-of-breed applications to be used together yet remain entirely de-coupled from each other through middleware. Through a simple, workflow interface, any member of the team close to the strategy can draw end points to create connectors in the UI, without the need for a developer or coding. IFS customers can create integrations between applications quickly and efficiently, or develop their own, accelerating digital transformation by weeks or even months. The result is ‘composable ERP’, allowing businesses to innovate and adapt applications and capabilities themselves. Ways Boomi can help IFS has co-developed several Connectors to link IFS current and legacy versions to the Boomi platform. Connection capabilities currently include: • IFS Applications 10 and IFS Cloud • FSM 6 All connectors are available to any IFS customer subscribing to the Boomi service. Boomi offers IFS customers flexibility and choice across many business scenarios. Example use cases include: • Phased upgrades: by allowing different IFS versions to run concurrently, it’s possible to execute an upgrade in stages, or region-by-region, if needed. • Connecting legacy systems: prebuilt connectors allow older instances of SAP, Oracle and other solutions to integrate easily with IFS • Reducing point-to-point connections: organizations can re-assess and simplify their technology approach Benefits seen using Boomi • Time to go-live reduced by up to 50-70% • Integration project efficiency increased by 65%1 • Typical return on investment 410%1 1 Source: Forrester Research - The Total Economic Impact™ Of The Boomi AtomSphere Platform, August 2021 For example, Gislaved Gummi AB chose Boomi to connect its ERP System, IFS Applications and the BI system Tableau. Comments Andreas Carlsson, Business System Analyst, “With experiences from other ERP systems and integration platforms, I must say that I’m impressed with the quick turn-around time from installation to go-live. It is an easy-touse platform that contains all the tools we need to integrate between these two applications. Complex transformation functionality is available without having to do manual code.” MindFuel // 16
Digital transformation is proven to unlock productivity and growth. Digital leaders achieve earnings growth that is 1.8 times higher than digital laggards — and more than double the growth in total enterprise value. When considered through this lens, it’s hardly surprising that investment in digital transformation is increasing. But while the rewards are high, so are the risks – 70% of digital transformations fall short of their objectives. A desire to minimize the risks is why 65% of businesses expect to increase the amount they are investing in digital transformation, but they will also subject those expenditures to greater scrutiny at the same time. The question is, then, what does greater scrutiny look like? How best to risk assess your technology choice? Let’s walk through an ITSM investment to understand. 5 steps to enterprise technology success You’ve identified the need for digital transformation within your organization. But how do you ensure you’re maximizing your chances of a successful project? 1. Define the business problem you want to solve Your first step is to take a step back. Essentially, you want to sense-check your instinct from a business perspective. What do you want to achieve? When it comes to ITSM, consider these five areas for starters. • Improving service experiences • Boosting employee productivity • Cutting operational costs • Accelerating innovation • Enhancing IT governance, risk, and compliance 5-step checklist for weighing your ITSM technology options MindFuel // 17
2. Think big and banish the siloes When it comes to ITSM, it’s essential to make sure you aren’t limiting your potential. Could implementing an Enterprise Service Management (ESM) solution solve your IT issues – and unlock other benefits further down the line? By embracing ESM, you level up your IT service desk, empowering both agents and end-users with easier access to information and tools to get their jobs done. Not only that, but you also have tools that help you eliminate team silos and enhance the service delivery experience across your organization. Explore the IFS assyst ESM offering. 3. Define your requirements The first two steps are the big picture. At the next step, it’s time to start defining what you need. This starts by articulating where you are right now, or as one of the ITIL 4 guiding principles has it: ‘Start where you are’. Document your current state so you clearly understand what’s working, what isn’t, and where there is room for improvement. Consider too what’s missing. This work will form the basis of your RFP process. You’ll need to keep these requirements top of mind as you start researching the market. However, be prepared to think outside the box. Outsiders often have a fresh perspective on matters. As you speak to providers, remember that they may spot gaps in your thinking. It’s your job to evaluate whether these gaps are worth filling or are, in your case if nothing else, tangential to your core requirements. 4. Keep end users top of mind Perhaps the most common cause for the failure of digital transformation is simply that it isn’t embraced by end users. You can solve this problem by ensuring that they are involved from the outset and that you fully understand their requirements. This dialogue will tell you what your end users really need from the technology. They will have insight into what happens ‘on the ground’ and how this could impact on your choice of technology. They will also have a different perspective on how your current processes are working – the things that you think need improvement may not be the same things they think are a priority. 5. Research your options Once you know what you need and you know what you want to achieve, it’s time to start researching the options. First things first, establish that a provider has all the core features you need to deliver a strong return on investment. At the same time, be flexible in your thinking about the way processes need to work. The best tools are built on decades of best practice and real-world experience. Implementing a digital solution is the perfect opportunity to take a fresh look at processes and streamline legacy activities where required. Remember too to think beyond simple functionality. Also, consider: • Expertise and understanding • Ease of use for end users • Interoperability with other systems • Licensing options • Hosting options So those are the five steps to success. But what about the pitfalls to avoid? Download the full eBook to discover what they are. MindFuel // 18
Having the right technology has never been more vital to success. This is especially true when it comes to how companies manage their service and maintenance operations. The moment that organizations interact with customers to provide service is when the true value of relationship is brought to life. Companies that can transition from being purely reactive or impersonal in their interactions, to engaging proactively and thoughtfully, will be the companies that win. In an economy of scarce resources, rapidly rising costs, and a competitive labor market, modern service management tools can help companies serve customers more efficiently while also attracting talented employees. When asked to rank the top three pressures impacting their service organization today, 45% of the respondents chose the struggle to meet customer SLAs. While this was the most chosen top three concern, dealing with a lack of skilled workers and the high turnover of employees was the second most chosen top concern at 40%. The need for multiple technician visits has always been the bane of service organizations. Current supply chain issues create situations where repeat calls are needed due to field engineers not having the right parts available. This has always been a fundamental concern and was the second biggest reason for multiple service visits cited in our 2018 State of Service survey. In late 2022, IFS surveyed service and maintenance leaders across 400 Manufacturing, Telco, Utility and Service organizations globally to analyze their adoption of field service technology, the maturity of their service and maintenance offerings and where they see trends and opportunities in the market. The State of Service Global Report delivers fresh insights into the past, current and future state of the industry, examining the importance of people, technology, and mindset, and how the proper orchestration of all these factors will determine whether you fail or succeed at the moment of service. How technology is the key to service success The State of Service MindFuel // 19
But our study this year found that technicians not having the necessary knowledge and skills to complete the job was by far the biggest concern, with 64% of respondents selecting it as their number one reason. When considering their key areas of focus for the next year, service organizations most frequently selected sustainability as the top-ranked issue. While organizations in recent years have felt that sustainability is a commendable corporate objective, today there are more direct incentives for businesses to “go green”. With supply chain issues contributing to higher costs of manufacturing, repair and reconditioning of parts and equipment is a way of maintaining capacity and eliminating the cost of scrapping and replacing expensive assets. As a result, reverse logistics solutions are increasingly becoming a desired component of modern FSM platforms. Our survey found that 54% of service organizations currently have reverse logistics capabilities and another 28% plan to implement them. Digital enablement is also a key focus in the near term. Updating legacy service management systems was the most chosen focus area among the top 5 rankings of ten categories. When asked about the key competitive differentiators in service, respondents were primarily focused on two related issues: Technology Superiority (29%) and Customer Experience (26%). What’s interesting to note is that in our 2018 study, CX was the clear winner, followed closely by operational excellence and remote resolution. Only 11% of service leaders selected Technology Superiority as their biggest differentiator four years ago. This validates that in an increasingly digital world accelerated by the pandemic, and a competitive market characterized by disruption, not having the best technology means service organizations are at risk of becoming obsolete. To learn more and deep dive into the research findings, download the State of Service 2023 Global Report. MindFuel // 20
45% of the respondents chose the struggle to meet customer SLAs as the top pressure impacting their service organization today. Dealing with a lack of skilled workers and the high turnover of employees was the second most chosen top concern at 40%. 45% 40% 64% 54% 28% 29% 26% 11% 64% of respondents selecting technicians not having the necessary knowledge and skills to complete the job as their number one concern. Our survey found that 54% of service organizations currently have reverse logistics capabilities. Our survey found that 28% plan to implement reverse logistics capabilities. Customer Experience (26%). Technology Superiority (29%). Only 11% of service leaders selected Technology Superiority as their biggest differentiator four years ago. MindFuel // 21
Benefits seen using IFS • Increased visibility • Less manual processing • Always up-to-date platform(evergreen) • Robust automated replication and synchronization • Enables condition-based maintenance • Mobile-ready • Global solution • Just one HR customization About Dolphin Drilling A leading harsh environment drilling contractor for the oil & gas industry, Dolphin Drilling owns and operates a fleet of three 5th and 6th generation Enhanced Aker H3 drilling rigs from onshore sites in Norway, UK and Nigeria. Based on the IFS best practice Oil & Gas Industry Accelerator, Dolphin Drilling selected the IFS solution in July 2020. IFS is now deployed across onshore sites in Brazil, Nigeria, Norway, Mexico, and Scotland and a fleet of three offshore rigs. Digital backbone Explains Svein Bjørnstad, Chief Information Officer at Dolphin Drilling AS, “Our IFS ERP system is quite simply the backbone of our business. As an offshore drilling company operating multiple mobile units, we face some of the most technically challenging conditions in the industry. We need a system that ensures we can always manage and maintain visibility of operations effectively, including very robust data replication capabilities for periods when assets go offline due to conditions or maneuvers.” IFS capabilities currently in use include global finance; projects; maintenance; supply chain; health, safety environment & quality (HSEQ); human capital management (HCM); rental management; human resources (HR); and customer relationship management (CRM). The solution also provides replication and data synchronization between onshore sites and offshore vessels; site move; and transport order (offshore logistics). The solution serves 500 IFS users. Dolphin Drilling rolls out best practice digital workflow, offshore operations, asset management and global finance with IFS Oil & Gas Drilling Accelerator Since May 2021, Dolphin Drilling has been using IFS to reduce offshore manual work through digitalization, improve workflow, support global finance including intercompany and consolidation processes, improve operational visibility and provide employees with the best user experience. The solution is standard, with only one customization, and the software is kept up to date automatically (evergreen). MindFuel // 22
Replication and synchronization Replication is a complex challenge for any ERP and involves orchestrating many business rules. Observes Bjørnstad, “It’s important to ensure the onshore and offshore setup is correct at the outset. We’ve been running with IFS replication capabilities since May 2021, and so far we’ve been able to operate seamlessly when assets go offline and subsequently resynchronize. It’s entirely automated. Our staff are essentially unaware of any connectivity loss and continue their daily tasks as normal. We had originally expected to require IFS to support replication, but in fact the framework and tools provided are so good that we have been able to deal with any minor issues ourselves.” Inherently intuitive Whilst it’s too early to talk about specific performance improvement metrics or savings, Bjørnstad highlights one of the biggest benefits as the ease with which staff can start working with IFS.” he says. “80% of our Dolphin Drilling workforce are offshore on rotation. IFS and the application screens are inherently intuitive and super-easy to navigate. The info style schemas are already in place to build whatever is needed. The search function explains any functionality query and takes a user straight to relevant data tables and help.” The same is true of IFS Lobbies. “We’ve quickly embraced the concept of creating task and rolespecific screens with IFS Lobbies and see it as a real business benefit,” says Bjørnstad. “Down the line we can also see the potential for using Aurena, the webbased client, on mobile devices in the field, and look forward to seeing the full capability integrated into the Oil & Gas Drilling Accelerator.” Digitalization and monitoring “One of the big challenges faced by drilling companies like Dolphin Drilling is implementing and managing condition-based monitoring. Traditionally, rigs would undergo periodic time-based maintenance,” says Bjørnstad. “Now, providing we can accurately evidence the condition of an asset to regulators, we can move to condition-based monitoring. “We are currently in the process of setting up the IFS IoT connector with our digital analytics platform (DNV GL Veracity) to integrate with IFS. Data from offshore sensors will stream to the analytics platform to then allow IFS to review machine health analytics and a manage a predictive maintenance regime.” MindFuel // 23
Another important area for digitalization is document management. “The beauty of document management within IFS is that it’s intrinsically linked to the process, says Bjørnstad. “That’s really helpful, for instance, for offshore workers needing to find documents to complete work orders quickly, or for specific inventory purchasing tasks. We’re currently still using ProArc, a dedicated document management solution we’ve had for several years, but we’re discussing the possibility of introducing IFS document management for rigs and operations.” In addition, Bjørnstad also sees the opportunity to digitize many HSEQ workflows on rigs, which are currently manual or paper-based, into IFS. “The module means that if an engineer notices something awry on a rig job, they can instantly capture and share an observation into the system. We’re looking forward to maximizing value from it.” Solus modification When Dolphin Drilling debated moving to IFS it found there were more than 1000+ modifications in our former SAP system to address. Explains Bjørnstad, “By challenging each of these through a steering committee, we were able to identify only one area – HR – where a modification was really justified. In the case of IFS, with only one customization, the standard release could deliver all the functionality we would need and remain up-to-date automatically.” Implementation advice What advice would Bjørnstad offer to other oil drilling companies considering an IFS implementation? “In our own case, our implementation project was completed within 9 months and came in on budget. What I would say is invest in proper planning before you start the project. and ensure you align the migration strategy with your domain experts. Stay away from any modifications if not deemed mandatory. “Know your implementation team and get the right resources; it’s essential that the consultants understand the industry and how the IFS application can provide a solution to fulfill offshore industry requirements spanning mobile assets, supply chain and workforce.” Moment Of Service™ When it comes to how IFS supports the company’s operational delivery, Bjørnstad is clear the moment of service centers around compliance. “We have several stakeholders and, rightly, are under constant regulatory scrutiny. Offshore drilling is complex, and IFS ensures we prioritize safety across our offshore operations and optimize accredited assets and equipment to minimize or negate our environmental impact,” he says. For further information, contact your local IFS office or visit our web site, IFS.com. “Offshore drilling is complex, and IFS ensures we prioritize safety across our offshore operations and optimize accredited assets and equipment to minimize or negate our environmental impact.” Svein Bjørnstad, Chief Information Officer, Dolphin Drilling Offshore AS MindFuel // 24
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What is IFS Success? IFS Success is our proven, fully scalable customer engagement model which allows our customers to identify their business needs from the start, drive value and accelerate business outcomes. IFS Success enables us to predict, plan for, and realize business value with you. By allowing us to align our technology with your people and processes, we can cultivate a holistic understanding of the desired outcomes based on your business needs. Let’s take a look at how IFS Success helps to elevate your technology investment. Jamie Luke, Senior VP of the maintenance division at Associa “For me the thing that really appealed about IFS Success was the structured way of working that IFS then drives. There are so many moving pieces to an application like this and the first six months to a year after implementation are critical to getting business processes right. IFS Success gives us instant escalation and immediate access to resources to get things done quickly, but also delivers a planned IT approach for the business. I can say that time to resolution, both first response as well as time to close the ticket, has been exceptionally good.” 1. Increased Efficiency and Productivity How to ensure you get value from your technology investment Achieve value with IFS Success One of the biggest challenges businesses face is the need to do more with less. Technology can help increase efficiency and productivity by automating tasks, reducing manual labor, and streamlining processes. For example, using automated inventory management software can help businesses track inventory levels in real-time, reduce overstocking, and eliminate the need for manual counting. Our customer Associa, the world's largest property management company, optimizes its field service management operations through IFS Success. Josh Warren, Assistant Vice President for Field Service at Associa explains how they have utilized technology to streamline operations: “We can bill two extra hours a day just by not having a technician come to the office every day. We have about 50 different operations, so in each of those locations, someone was doing that process. Now, that person who was spending half their day keying stuff into the system can spend maybe an hour a day just reviewing it, and then spend that other time going out and talking to clients, generating more revenue.” MindFuel // 26
2. Improved Customer Experience Benefits seen using IFS: • Powerful data analysis and reporting to support advanced condition-based maintenance • A modern platform with an attractive and userfriendly interface (UX) • Immediate expertise on-demand • Resource to optimize and configure functionality and performance In today's hyper-connected world, customers have high expectations when it comes to their interactions with businesses. Technology can help businesses improve the customer experience by providing better customer service, personalized marketing, and convenient self-service options. For example, chatbots are providing instant customer service support, and our customer relationship management (CRM) software is enabling businesses to track customer interactions and provide personalized marketing campaigns. REMA TIP TOP, an automotive material processing and surface protection company, has transformed its traditional service into a results-based approach with IFS Success. Thomas Moser, Head of Product Management for Digital Solutions at REMA: “We want to focus on enhancing customer value from our service solution, and IFS enables us to do that.” By centralizing their operations in IFS and standardizing processes, they have ensured consistent customer service and cost-effective management of condition-based maintenance programs for customers. MindFuel // 27
What is a Digital Business Value Assessment (DBVA)? Digital Business Value Assessments (DBVA) are an industry leading and proprietary approach to Business Value Engineering that analyzes potential business improvements to find efficiency opportunities, cost reductions and the opportunity to transition to introduce best-in-class processes. In a short engagement using digital and either in person or remote interaction, a DBVA helps to establish which changes drive specific levels of value. Customers have provided feedback, stating that the DBVA creates a sense of focus and urgency that is highly productive. 3. Accelerate Business Outcomes “Technology choices should never be taken without first securing a clear future vision for the business, and any barriers and risks.” Matt Smith, Global Chief Architect at IFS With this in mind, IFS has developed several tools and methodologies to define and deliver effective business change outcomes, and demonstrate a compelling, value-based business case for every prospect or customer. These include The IFS Six Box Model™ pinpointing specific business initiatives needed; our Digital Business Value Assessment, a rapid engagement to reveal opportunities to transition to, or introduce, best-in-class processes; the IFS Scope tool, ensuring all parties understand what is included and what will be delivered in a project; and the IFS Value Assurance Service, assigning actions against a collaborative Customer Success plan to continuously refine and maximize the solution performance after deployment over a multi-year period. The IFS Six Box Model™ pinpoints a prospect's specific Business Initiatives, explores a clear As-Is to To-Be journey while identifying the obstacles and enablers needed to transition. Finally, it also ensures clarity on the financial case for change - all in one document that can be represented in a live digital version in our Digital Business Value Assessment tool. Hexagon Agility, a leading global provider of clean fuel solutions, uses IFS Success for operational planning and consolidating several of their external HR databases. Matthias Jezek, Hexagon Agility’s Business Solutions Architect, began discussions with IFS to explore a Customer Success Engagement and was “...extremely impressed with the analysis the final DBVA report provided... It’s a fantastic strategic tool. It triggered conversations, discovery and insights between our different companies that simply didn’t happen before. We had the groundwork to establish where we needed to make changes, why, and the level of any potential business gain.” MindFuel // 28
4. Scale and Grow Your Business For many businesses, the challenge of scaling and growing is daunting. However, with the right tools, expertise and strategic planning, IFS Success is helping businesses with the right architecture and building blocks to scale. For example, Smart Care, a rapidly growing group of commercial kitchen equipment service and maintenance organization, has used IFS Success since June 2021 to sustain growth and execute their strategy with an agreed Success Plan. Smart Care’s President & Chief Operating Officer, Gyner Ozgul explains, “We need consulting expertise that is informed across the entire gamut of software we use –ERP, FSM, PSO and mobile – and also understands the way we run our business. If we make a change in one area, how will it impact another? IFS Success gives us direct access to IFS global experts who truly understand those inter-relationships, our business model and ecosystem, to ensure the solution architecture required.” He continues, “We could see, given the fact that we’re a cloud SaaS-based customer, that to support the rapid business changes required, we’d need to continue to develop and innovate with IFS on the platform for a sustained period, at least 2-5 years.” Technology helps businesses overcome some of the most pressing challenges they face, from improving efficiency and productivity to enhancing data security and optimizing supply chain management. At IFS, we want to make sure you get the most value from your investment, identifying your needs throughout the business value assessment and the Customer Success plan. In a world that is constantly changing, the technology must evolve with us. The only constant is change, and as business needs and priorities develop over time, we will jointly iterate and evolve the plan. IFS Success allows us to predict, plan for, and realize business value with you. For a deeper insight into achieving value with IFS Success, download the guide. MindFuel // 29
What is DDMRP? DDMRP (Demand Driven Material Requirements Planning) is an operational supply planning and scheduling method. DDMRP is designed to decrease shortages and overstocks by applying traditional MRP approaches to modern, complex supply chains. Without relying solely on forecasts, DDMRP determines where to place strategic inventory buffers, allowing you to find tune quickly as needs change. DDMRP typically features five critical steps: 1. Strategic inventory positioning establishes where the decoupling points must be placed in the supply chain. 2. Buffer profiles and levels assess the scope of the inventory buffer that refines the production plan. 3. Dynamic adjustments define the bases for changing buffer levels. These may include future events, changes to operating parameters, market changes, or other incidents. 4. Demand-driven planning uses data from the above DDMRP steps combined with other planning tools to determine the production plan. 5. Visible and collaborative execution is used to optimize supply orders. Plan, adapt and react as manufacturing needs and trends change The future of operational supply planning and scheduling: DDMRP These five critical steps are split across three key areas: Position Protect Pull #1 Strategic inventory positioning #2 Buffer profile and levels #3 Dynamic adjustments #4 Demand-driven planning #5 Visible and collaborative execution Bills of materials are examined to identify materials or components at critical points within the structures. An adaptation of the Theory of Constraints method, Strategic inventory positioning identifies the most important limiting factors standing in the way of achieving a goal. These key materials must be the focus of control above all other components. Availability of these critical items is also ensured by using inventory as a buffer. But this buffer inventory is not deployed as part of the initial MRP (material requirements planning) planning formula; rather, it is replenished dynamically as needed. Buffer inventory is managed through an innovative pull technique that continually monitors inventory levels and uses visual cues to maintain the buffer within a specified range. MindFuel // 30
Why DDMRP? DDMRP is an excellent solution for responding to shifts in demand and can help manufacturers turn projects around faster and win more business. DDMP can be used alongside other planning methods – it doesn’t have to be all or nothing. Actions are grouped in a traffic light system to underscore priorities. It monitors the parts you have on hand and determines whether to adjust the supply based on pull signals from orders and historical average usage. Where there are common parts or sub-assemblies, you can use DDMRP to ‘break’ the stacked lead-time. Building small buffer stocks of these parts creates a shorter overall lead-time. Buffered inventory is not treated as excess or as waste, but as a way to store potential to meet demand. Inventory is then pulled through the system when that demand materializes. When there are conflicting priorities, DDMRP highlights the most urgent based on usage and part lead-time. What are the benefits of DDMRP? Lead time compression – lead time reductions above 80% have been achieved in several industry sectors. Lowest total supply chain cost – costs related to expedite activity and false signals are largely eliminated (fast freight, partial ships, cross-ships, schedule break-ins). Enhanced customer service – user frequently get 97-100% on-time fill rate performance. Right size inventory – typical inventory reductions of 30-45% are achieved while improving customer service. Easy and intuitive – planners see priorities instead of constantly fighting the conflicting messages of MRP. Why use IFS Cloud for DDMRP? IFS Cloud is designed to deliver functionality that streamlines and formalizes DDMRP. Giving you the ability to add protected lead time, IFS Cloud provides average daily usage rates for parts and tools, identifies what demand is real, offers visibility into buffer inventory – and more. • IFS is certified by the Demand Driven Institute, having passed a software compliance test. • IFS has inbuilt logic that suggests which parts would benefit from being controlled by DDMRP. • IFS has a lobby just for parts controlled by DDMRP which uses a clear traffic light system for action messages. To find out more, read our factsheet, and sign up to our DDMRP webinar. MindFuel // 31
MWC Barcelona is the most significant and influential international summit of the mobile connectivity and telecommunications industry in the world, attracting nearly 90,000 attendees from over 200 countries to discuss key trends such as 5G and 6G acceleration, the metaverse and immersive reality technology, AI, IoT, fintech and more. With IFS elevating its focus on the telecommunications industry, it was the ideal place to introduce our new Global Industry Director for Telecommunications, Markus Persson. IFS Attends Mobile World Congress Barcelona 2023 to Strengthen Partner and Customer Relationships in Telecommunications Persson, who drove innovation at Swedish-based telecommunications industry giant Ericsson for nearly 30 years, brings a wealth of industry experience to help IFS build on the growing success it is achieving. Persson’s appointment comes following several significant business wins for IFS including leading telco infrastructure and operators across Europe, Asia-Pacific, and most recently North America with leading Canadian telco, SaskTel. MindFuel // 32
Persson led a team of five to represent IFS at MWC Barcelona and strengthen relationships with strategic partners while also cultivating relationships with existing and prospective telco clients. In addition, Persson gave multiple press and analyst interviews to explain the unique value proposition that IFS delivers to this industry. While IFS has helped large telco brands drive digital transformation for years, their recent business wins in the sector substantiate their unique value proposition at a time of massive disruption and rapid evolution of the industry. Many telcos struggle with outdated technology systems, leading to inefficiencies for workers, lower profits, and negative customer experiences. Operationally they must manage projects such as 5G network buildouts that are so large and complex that good data is invaluable. Yet most telcos are unable to share data across their entire enterprise. This lack of synergies compounded by their complex web of internal legacy systems means they are slower in product development and slower to bring new services to market, hindering their ability to compete with digital-first companies that are infringing on their space. To embrace new opportunities and deliver a richer customer experience, telcos must seamlessly balance various types of service, project and asset management work orders while optimizing their large workforces. Persson explains how the current industry trends including 5G network expansions make IFS the perfect partner. “For IFS, the build-out of 5G is exciting since we not only support the network build-out itself, but we also have a lot of expertise in the other B2B industry verticals that telecoms are addressing, making us a perfect bridge for enabling their end-to-end use cases. As the 5G landscape is accelerating, with the move towards cloud and the increase of connected IoT assets, this evolution is why we are enhancing our focus on the industry. IFS delivers field service management, complex asset management, scheduling optimization, mobility, and omnichannel customer service—all from a single platform, IFS Cloud. Since the platform is built on an open API architecture, it also allows telcos to easily integrate their legacy systems, making for easier data sharing.” To accelerate IFS’s recent success in this sector, Persson and key members of the IFS partner and sales teams strengthened relationships with two strategic partners a MWC Barcelona—Microsoft and Wipro. The IFS-Microsoft partnership is a powerful differentiator as many large telco brands leverage their Azure cloud or their CRM solution Microsoft Dynamics. IFS’s planning and scheduling optimization (PSO) solution is the perfect complement to Dynamics, allowing telcos to augment their existing capabilities. IFS solutions such as PSO also allow them to help fulfill their Azure cloud commitment to Microsoft, which can potentially save them thousands in fees. Another strategic partner that the IFS team spent time with at MWC Barcelona was the leading IT consulting firm Wipro who helps ensure that new telco customers achieve a streamlined deployment and ROI realization from their IFS technology. Microsoft and Wipro are teaming up with IFS more and more to build on the growing success it is achieving in the telco market. With the MWC Barcelona event a huge success, IFS will expand its presence at the world’s leading telco industry conferences and events throughout 2023. MindFuel // 33
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The IFS Foundation continues to invest in projects to help break the poverty cycle in remote and rural parts of Sri Lanka. Recently some of our colleagues in Colombo visited one of the communities the Foundation partners with, to help renovate a local hospital unit. They were joined by some of our colleagues from the UK, as well as representatives from IFS partner Hoist, which demonstrated the strong sense of shared values across our partner ecosystem. Painting, fitting and upgrading hospital buildings helps improve sanitary conditions. The team worked hard, in close cooperation with local community representatives, and in a spirit of mutual trust and collaboration. At the end of a busy weekend, we can safely say it was a job well done! IFS intern and volunteer, Isobel Cowing, when asked about the project said, “While the work was tiring, especially given the hot conditions, the spirit of teamwork and collaboration was amazing. We were also humbled by the generosity and kindness of those living in the local community.” Bastian Rodrigo, also an IFS intern and volunteer, who is originally from Sri Lanka, commented on how “Painting the hospital building was a small way for me to give back to my community and contribute to the larger mission of the IFS Foundation. It was truly a fulfilling experience to see the transformation of the building and the impact it had on the patients and staff who would use the facility every day.” Healthcare infrastructure projects like this are just one pillar of the overarching IFS Foundation strategy. The Foundation also invests in projects to improve sanitation and access to fresh water, as well as the creation of employment opportunities. The fifth, and most important, pillar is education infrastructure, including new classrooms, desks, chairs, and computer labs to promote STEM skills. With all these building blocks in place, kids stand a chance of receiving a decent education. And that’s vital for long term impact. The IFS Foundation firmly believes that education is the greatest weapon we have to change the world. Education is the greatest key to creating long term sustainability and selfsufficiency for these rural communities. Why focus on Sri Lanka? Why focus on Sri Lanka? IFS has maintained a presence in Sri Lanka for 25 years. A third of our staff are based there. Our staff, customers and partners rely on the work performed in Sri Lanka each and every day, for example R&D, shared services and global support. Sri Lanka is a beautiful and resilient country, but also one where there are still many social issues, including deep-rooted poverty especially in remote and rural parts of the country. IFS partners with the IFS Foundation as a way of giving something back to a country that serves us all so well, and as a way of saying thank you to our hardworking staff in Colombo. Working together to help make the world a better place MindFuel // 35
The Foundation also represents a cause that unites our global workforce. By combining the fundraising potential of staff worldwide, as well as our customers, suppliers and partners, we believe we can make a more meaningful long-term impact. IFS Foundation Trustee, Stephen Keys, outlines our ongoing plans: “In 2023 the IFS Foundation is already planning new classrooms for a local school and will extend its work to a second community. We look forward to IFS continuing to raise funds in support of the IFS Foundation and welcome all its partners, customers and suppliers to come on board.” IFS Foundation Coordinator, Kavindya Piyasumana, echoes this sentiment: “Additionally, in 2023 we are advocating for clean water and sanitation by providing two reverse osmosis plants to the community and to the hospital, as well as supporting economic growth by creating homebased employment opportunities. We are extending foundation work to another deserving second community in support of sustainable development.” Getting involved is easy. You can help amplify, by liking and resharing posts on social media. You can fundraise on behalf of the IFS Foundation, or else you can simply make a donation by visiting the ifsfoundation.org. The IFS Foundation is a registered Charitable Incorporated Organization in England and Wales, (Charity No.1191843), and a registered US 501(c)3 charitable organization (EIN 84-4440168). It is run entirely by volunteers, which helps it invest as much money as possible into making a real impact. “While the work was tiring, especially given the hot conditions, the spirit of teamwork and collaboration was amazing. We were also humbled by the generosity and kindness of those living in the local community.” Isobel Cowing, IFS intern and volunteer MindFuel // 36
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publisher Industrial and Financial Systems, IFS AB Teknikringen 5 Box 1545 Linköping SE-581 15 Sweden Phone +46 13 460 3600 Fax +46 13 460 4001 Editor Freja King Graphic Design Karin Göransson Photography gettyimages get in touch Have a question? You can find all our regional contact information on our website: IFS.biz/2aqi
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