While my information needs have changed over the years, it is still difficult to find answers to my questions. Outline your vision. Please review our privacy policy. This is primarily because technical and business domain expertise is obviously a value combination for which customers are more than willing to pay a premium if it means it will help them achieve their ROI. When your customers are able to realize the value that your solution can bring to their operation, they’re more inclined to stay loyal and renew their contract. While today’s technology suppliers and their accompanying PS organizations are full of technical experts who have deep knowledge of products, they may have far less understanding about how to get specific business outcomes out of those products. In this blog, I’ll provide tips covering the three main capabilities successful professional services executives are developing today in order to meet these emerging challenges head on. A sufficiently powerful software platform that will be playing a major role in the client’s business (hence justifying its cost and stickiness) will invariably require complex integration with the client’s existing IT infrastructure and other software solutions, as well as some level of customization. Offering a service for sale is vastly different than selling a product, and so too is the path to success for such businesses. Central Challenges Faced by the Human Resource Department in Any Organization, How to Start a Landscaping Service Business, How to Build and Keep a Clientele in the Salon Industry, How to Determine Independent Contractor Hourly Pay, Mind Tools: Professional Services Organizations, Tenacity Unlimited: Establishing a Professional Services Organization, How to Enable Location Services for an iPad. Unlike other businesses that provide a product, professional services provide only services. It is recommended that suppliers hire for that specific industry experience and train for the product knowledge to better serve their customer base. In short, in order to ensure successful adoption of their products, suppliers have to have a much better business domain expertise. Motivating your employees to continue to perform at a high level and to stay with your organization requires you to provide competitive pay, benefits and opportunities to move up within the organization. He is also the chairperson of the TSIA Professional Services Advisory Board. Stay current on the latest technology industry trends. Optimize learning to drive customer engagement and product adoption. Here’s What NOT to Do. In the case of one of the larger companies in the study with a multi-billion-dollar professional services business, they had zero industry experts in their organization, while 25% of the delivery staff of another PSO of the same size were industry experts. PS businesses already tend to handicap their ability to offer specific Level 3 services with weak or non-existent domain expertise, but they are also leaving money on the table by not taking the initiative to understand the operating environment of their customers. If you believe you are seeing this message in error, This is an annuity service offered by the customer support organization (both central support and field services) designed to intervene with end-users, or even with the technology itself, in order to optimize a customer’s business outcomes through widespread use of its capabilities. Keep your talented workers. When you form the organization, you charter it. Most major technology vendors staff a large professional services group that do implementation, customization, and customer success-oriented training that have become an indispensable part of their package of solutions to their enterprise customers. Seems like a role that pretty much every PSO should have, right? To compete successfully with these companies and establish a strong presence in the enterprise market, expansion0-stage companies will need to develop an effective professional services organization, as well. However, “product-attached” typically refers to services that not only are related to the product but are specifically aimed at its operational deployment. He currently owns and operates a vending business. According to the results of TSIA’s most recent PS Market Rates Study, the compensation rates for industry experts are typically on the high end, while discounting is typically on the low end, even for product-oriented, classic professional services. All Rights Reserved. In particular, they begin to compete for increasingly larger, more complex implementation of their software solutions. Every company starts the new year with big goals and aspirations. Here are the pros and cons of becoming a professional organizer. A project-based service offering by professional services designed to plan the optimal adoption of a new technology deployment. For software companies selling to business, selling into increasingly larger and more sophisticated customers is one of the key strategies to get rapid, scalable growth. They will need to develop a more formal approach to conceive, price, pilot, package, and market those newly developed non-attached services. defend, protect, and improve their Level 2 capabilities, Optimizing Professional Services for LAER, TSIA Professional Services Advisory Board, Tips for a Successful Professional Services Organization. For example, require interested applicants to meet a list of qualifications to be even considered for an open position. The services engineering functions within a professional services organization have been no exception, as they focus primarily on product-attached and product deployment-oriented services. One of the most important attributes of a professional services organization is its vision. Instead of selling solutions to small to medium enterprises and early adopters with limited budgets, the company now finds itself bidding for multi-million deals for major Fortune 1000 companies. To retool their services engineering functions to give their processes the support they need to move to the right in their offers include: These steps might seem simple, but far too many PSOs lag behind on services engineering/offer development, which is a gap that will be costlier as they move toward being more outcome-focused. The PSOs who are doing it right are the ones who have a formal link into product engineering, which enables them to stay out in front of new products that require implementation services and bug fixes. An essential requirement for any such enterprise software solution is the implementation and professional services that come with such a complex, costly solution. During each phase, the hiring priority for these four types of skills is different.