Archive for the ‘Professional Services’ category

10th Annual TSIA Global Technology Survey is Now Open! Free Research Report for Participating

March 3, 2015

I’m pleased to announced that my 10th annual TSIA Technology Survey is now open! This survey covers 24 categories of tools and services used by customer support, professional services, education services, managed services and field service. The survey is open to everyone (not just TSIA members), and if you complete the survey, you will receive a copy of the resulting research report, “The 2015 TSIA Heatmap,” which discusses adoption levels of each category and top technology trends related to service organizations.

The survey addresses adoption, satisfaction, and planned spending for commonly used technologies including CRM, knowledge management, enterprise search, web collaboration, online communities, social media monitoring, analytic platforms, learning management, etc.  The survey asks which line of service you work for, then only prompts you with categories that apply. For example, if you work in Field Service, you will be asked about scheduling and dispatch tools, and if you work in Professional Services, you will be asked about professional services automation. So you won’t have to answer all 24 categories!

Along with the traditional service technology, the survey also addresses some emerging hot technology areas critical to TSIA’s B4B, customer success and expand selling messages:

  • Consumption Monitoring/Analytics: These tools are used to measure and monitor customer consumption of technology, gauging how quickly customers are adoption new tools, common process flows, top used features, number of users and length of session time, etc. Consumption Monitoring is a key piece of a Customer Success strategy.
  • Recurring Revenue Management: These tools are used by service professional to manage the sales and renewals processes for maintenance and service contracts. Functionality includes automating renewals, renewal dashboards, and analytics to predict likelihood of renewal and manage profitable contract/maintenance programs.
  • Upsell/Cross-Sell: Also known as offer management software, these tools prompt call center, tech support, field service, or renewal sales reps with contextual offers to extend to customers, using analytics to identify offers they are most likely to accept. Tracking extend and accept rates, the software continues to learn which offer to prompt for which situation and customer profile.

I make great use of the data collected, with mulitple reports published of the survey findings for the Spring Technology Services World Conference in Santa Clara. First is the 2015 Technology Heatmap, which looks at high level adoption and spending trends across service disciplines. This report will be sent to everyone who completes the survey. In addition, I will publish detailed spending report by service discipline, a separate report on EMEA, as well as the “top installed” report, listing the top used tools or service providers in each category. If you are a TSIA partner, ask your customers to take the survey!

The survey is open until March 31st. It should take less than 10 minutes to complete the survey. Your responses are kept confidential, and are only reported in aggregate. Here is the link to the survey:  http://www.surveygizmo.com/s3/1994057/2015-Global-Technology-Survey

Thanks in advance for your support, and after you take the survey, pass along the link to your friends in service organizations! The more responses, the better. And as always, thanks for reading!

Five Service Technology Things I’m Thankful for This Year

November 24, 2014

Here we are at the holiday season once again. When I was a kid, it seemed that Thanksgiving and Christmas were always a million miles away, but as I get older, time accelerates, and it feels like I just put the tree and decorations away a few weeks ago. This week we all take some time to think about what we are thankful for, and I truly give thanks for my personal and professional existence. But I thought it would be fun to write a post about what I’m thankful for this year as a service technology analyst. Here goes!

  • I’m thankful for new KM insights. This was the first year that I conducted TSIA’s knowledge management survey, and instead of focusing just on metrics like days to publish, I dug into KM potential, culture issues, adoption of emerging technologies, and the “rip and replace” problem. The data was very impactful, and has really informed my research and conversations. Though I cover a lot of technology topics as an analyst, I’m the most passionate about knowledge management tools and processes. It is great to have data-backed talking points about where companies struggle and pacesetter practices for success.
  • I’m thankful for rising PSA adoption and interest. The first few years I was the technology analyst for TSIA’s new professional services practice, it was the easiest job in the world–no one asked me about anything. Boy, has that changed. Today Professional Services Automation (PSA) is my #2 or #3 topic by inquiry volume. I’m seeing PS organizations become more sophisticated in their use of technology, including automated scheduling, analytic-powered dashboards, and automated billing, and core PS metrics like utilization rates and billable utilization are rising as a result.
  • I’m thankful for managed services. In my industry it seems almost politically incorrect to say anything negative about the cloud. But I hear from large enterprises every week who jumped on the cloud bandwagon, usually to save money on a CRM deployment, and are finding the tools are not as sophisticated or feature rich as their legacy solution, and often with abysmal usability. Managed services is rescuing this, offering the sophistication of onpremise technology with none of the ownership headaches or cost. According to George Humphrey, TSIA’s Senior Director of Managed Service Research, “It’s becoming less important to the customer where the product resides. It is becoming crucial to the customer that, whoever sells them the solution, that it is managed. It doesn’t matter if the technology provider is an SI, SP, VAR or the manufacturer selling direct. The expectation from the customer is that it is a fully managed OpEx solutions. The MSPs that are offering this type of solution are seeing explosive revenue growth in MS (many seeing triple digit growth).” For 2015, I expect to see some unhappy cloud customers moving to a managed service platform that better fits their needs.
  • I’m thankful mobility has moved beyond trend into serious business impact. Back in my CRM days, I was the product manager for a WAP CRM product, which I don’t think anyone ever used. The WAP interfaces were so klunky they really didn’t offer huge value for field employees. Early in my Forrester career I wrote a research report about mobile CRM, calling it, “The Next Big Thing That Hasn’t Happened Yet,” because all the vendors were releasing WAP products but no one seemed to be adopting them. The latest round of mobile solutions are a huge improvement, and as a result, we are seeing wide adoption and real business benefits. Here’s a chart with some data from our Field Service benchmark survey, which asks field service organizations what sort of business impacts they have seen from mobile initiatives. The value is clear and documentable, and I’m thrilled to see this “next big thing” is finally having the impact we all envisioned over a decade ago.

FS Mobility

  • I’m thankful NPS is losing some luster. I’ve gotten in trouble over the years because I have never been a fan of net promoter scores. I totally understand the importance of repeat business and referrals, but too many companies asked the “would you recommend us” question once a year, of one person at the account, which in my opinion is a totally useless way to gather real information on customer satisfaction and loyalty. Let’s be honest–many NPS programs are only designed to allow executive bonuses to pay out–not to really measure customer sentiment. Over the last 6 months I’ve heard many companies talk about how shallow their NPS program was, in retrospect. The new focus on customer consumption, customer experience, and now customer effort scores seem to be measuring much more actionable information than a single NPS score.

Wishing each of you a wonderful holiday season. And as always, thanks for reading!

Changepoint Acquires Daptiv, Adding Cloud PPM and PSA to OnPremise and Hosted Portfolio

August 21, 2014

Today Changepoint announced their acquisition of Daptiv, adding pure cloud solutions for professional services automation (PSA) and project portfolio management (PPM) to the Changepoint portfolio of OnPremise and hosted products. Changepoint, a long time TSIA partner and advisory board member, has been the top installed PSA platform for the last two years, according to my annual Global Technology Survey, and this acquisition will give them even more reach into PS, IT and development organizations wanting a SaaS solution.

PSA has three main modules: resource management, project management, and project accounting, and is used by professional services teams to automate the staffing of projects to maximize utilization rates, as well as providing dashboards so managers can track project status, costs and margins, identifying problems early enough to step in and correct the problem before the customer or project is impacted. PPM offers similar capabilities for IT and development project teams, matching skills and experience to projects, tracking project milestones and deliverables, as well as total costs for internal projects.

Changepoint’s PSA offering, available in OnPremise or Hosted options, is ideal for large organizations needing sophisticated capabilities. I’ve praised them in the past for their innovative approach to analytics, imbedding IBM Cognos into a release last year to deliver real-time management dashboards. However, with IT departments being downsized, more companies want at least one pure SaaS provider on the short list when evaluating PSA vendors, and Daptiv gives Changepoint a competitive edge, since they now can compete in deals for any deployment model.

Daptiv has been receiving good reviews for their technology, including a strong position in the Leader quadrant in the 2014 Cloud PPM Magic Quadrant from Gartner. Gartner even notes that Daptiv has been moving upmarket, with their average deal size now more than 200 seats, meaning they are competing with traditional players for large enterprise deals. Interesting, Daptiv has also imbedded IBM Cognos into their application for sophisticated analytics and dashboards, which provides a nice consistency across the Daptiv and Changepoint product lines.

Congratulations to the Changepoint and Daptiv teams on the deal! And as always, thanks to you for reading!

 

 

Best Practices for Successfully Migrating to a New CRM Platform

August 19, 2014

Over the last few months I’ve received multiple inquiries from companies moving to a new CRM platform, asking for any best practices to make the migration efforts less painful, and to ensure a successful result. Most companies I talk to have 3-5 different systems in place, usually due to acquisitions and mergers, so they have an even bigger task of migrating everyone off disparate systems onto a single platform moving forward. Based on my experience working for CRM vendors, doing consulting projects as an analyst with companies implementing CRM, and many recent conversations with companies moving to a new CRM platform, here are some things to keep in mind:

  • Change is hard. No matter how long you’ve had your old system, and how much people may grumble about using it, getting employees to embrace a new system isn’t easy. The #1 complaint from employees when I do system audits is “they shoved this new system down my throat.” This is one of those times when you should over-communicate with employees. Tell them why you are making the change. Give them demos of the new system. Buy everyone a mug or t-shirt with the new vendor’s logo. Do what you can to get them informed and excited about the new system before you start training them to use it. This will go a long way towards getting acceptance and rapid adoption for the rollout.
  • Change is good. The biggest mistake I see companies make when they migrate to a new system is just replicating the old screens and process flows on a new platform. You need to take a very hard look at your legacy implementation and figure out what’s working, and what’s not. Do a real audit of the current system so you know what NOT to recreate in the new platform. I even recommend surveying employees about what they like and don’t like in the old system, which goes a long way toward getting them invested in a new system. Typically, a lot of fields and process flows were added over the years for one reason or another, and many of them need to be eliminated. Process analysis isn’t fun, but you need to look at all your customer-facing processes and identify where changes should be made. Implementing a new CRM system is a wonderful opportunity to change what’s not working.
  • Minimize customizations. Popular CRM systems have thousands of customers, and their “out of box” capabilities and screens reflect the most common, i.e., best practice, approaches used by their customers. Try to stay “out of box” as much as possible. If you see areas—and you will—that need major customizations to meet your current processes, ask yourself if those processes are really providing competitive differentiation for your company. Maybe going with a common industry approach is the right thing to do. The other thing to keep in mind is that the traditional OnPremise CRM platforms are fairly complex, and customizations may require a highly trained system administrator with some programming skills. In newer cloud CRM platforms, customizations are very simple to do with little training. This is both a blessing and a curse. Because customizations are so easy, companies go crazy making constant tweaks, which can wreak havoc for users and degrade usability. Make sure you have a process in place to evaluate and approve every customization before implementing it.
  • Prioritize integrations early in the project. I’ve done a lot of writing and inquiries about integrating CRM to other systems to enable “quote to cash.” There are many 3rd party applications you should consider integrating with CRM to streamline processes and avoid employees juggling multiple applications. Knowledge management is an obvious example, with integration performing automatic searches of the knowledgebase based on incident text and field values. PSA is another example, with integration to CRM automatically passing along new project information to the PSA system to enable resource and project management. The majority of the time, companies say, “Let me just get CRM up and running, and we’ll do the integrations in Phase 2.” The problem is, Phase 2 never happens. Hopefully, you have selected a CRM platform with integrations in mind, as each CRM vendor has a set of ecosystem partners with packaged integrations to minimize the effort required. Get a realistic estimate early in the project about time/costs to integrate each 3rd party system, and try to get as many integrations as possible into the initial project phase.
  • Pick your implementor with care. I guess this goes without saying. But I’ve heard some horror stories about really bad implementors, so be sure you carefully evaluate their credentials and check several of their references. As I said previously, implementing cloud CRM may not require as much technical/programming skills as OnPremise CRM systems. A decade ago, most CRM implementors worked with big accounting firms, and you were assigned a project team with deep experience in process optimization and certified on the CRM platform so they knew every bell and whistle in the system. Unfortunately, today I see companies hiring some yahoo whose only experience was implementing a cloud CRM system for small non-profits or a 5 person insurance office, and they have no clue about “best in class” processes or any real depth of knowledge about the platform.

I know many of my readers know as much or more than I do on this topic, so please submit comments with any other suggestions you may have on what to do–or what to avoid doing–to make moving to a new CRM system successful. Thanks for reading!

2014 Mid Year Trends: KM, Social and PSA

June 16, 2014

Just over a month ago we had our Spring Technology Services World Conference in Santa Clara, and any time I wasn’t presenting, I was in 1:1 meetings with TSIA members and partners. I’ve been thinking about what I heard, as well as follow-on inquiry conversations after the event, and I wanted to report back with what I’m hearing as the 3 top trends in service technology so far in 2014:

  • The concept of knowledge management has expanded. It used to be so easy. Buy a knowledgebase tool, train all your support techs on KCS basics, and start receiving value. But lots of things have changed to complicate this. Don’t get me wrong, the knowledgebase continues to be a critical element for success, but today’s service organizations are now seeing the knowledgebase as step one of a more complex knowledge infrastructure. Communities are now rated as more useful in solving customer problems than the knowledgebase, according to the TSIA Support Services benchmark. Unified search tools are becoming a ‘must-have’ technology to index and search all your corporate content, including online documentation, release notes, customer configuration files, and incident history. Expertise management is growing in popularity, to analyze your corporate content and identify experts on any topic or feature, so you know who to reach out to when you hit a knowledge or content gap. Though every company seems to come at this complex mix of technologies from a different direction, just about everyone I talk to today is interested in leveraging corporate content, and expertise, and definitely looking beyond the traditional knowledgebase.
  • Social media listening as early warning system. According to Cisco’s Doug Pluta, customers frequently talk about product or service issues via social media channels before the issue is reported via traditional assisted support channels. My inquiries on social media have completely changed. The last few years the questions were transactional: what social channels should we support, how to automate incident management, how quickly should we respond to social issues, etc. Today, the incident traffic regarding social media is focused primarily on monitoring social for voice of the customer analysis. What are customers saying, what sort of sentiment is being expressed, are there thoughts or suggestions floating around we haven’t heard from traditional surveys, etc. It is good to see more support organizations getting active in social listening, and not leaving it to marketing to monitor. Marketing cares about the perception of the brand more than individual products and features, and there is a lot of value to be gleaned from actively listening to these social conversations.
  • ERP integration boosts PSA value. A lot of members tend to start their search for a professional services automation (PSA) tool by looking at who integrates with their CRM platform. But based on inquiry conversations, as well as audience discussion in the breakout session I did at Santa Clara on selecting a PSA system, tightly integrating PSA to ERP delivers more value, faster, than plugging into CRM. Since tightening up billing cycles and reducing DSO on PS bills is a hot button for most companies, it makes sense to plug your PSA system into your billing and accounting system. Project details, milestones, signature approvals and travel and expenses are all passed automatically, with enough audit trail detail to satisfy even the toughest customer. One member told me that they have received 100% compliance in submitting expense reports and project updates by COB on Friday by tying a percent of the consultant’s bonus to getting those reports in on time. I plan to put more focus on existing ERP systems when speaking with companies shopping for PSA from here on out.

Many other topics are brewing as well. A rising trend in inquiries is asking how to reduce the cost of a CRM deployment, with many companies complaining that their cloud CRM vendor is “nickel and diming them to death,” charging extra for every new feature. Mobility continues to be a hot topic as well, with more field service organizations investigating devices and mobile capabilities. Collaboration is another big subject in 2014, especially with more at-home workers making it impossible to ask questions across the cubicle wall.

2014 is seeing a lot of companies shopping for new and interesting technology to take them to the next stage of productivity, as well as new levels of insight/visibility into operations.  I would be interested in hearing your thoughts on other big trends in service technology. Feel free to add a comment! And as always, thanks for reading.

2014 TSW Vision Awards at Service Revolutions: Recap

May 13, 2014

Last week at Technology Services World Best Practices, the closing event of the conference was the Vision Awards at Service Revolutions. This “American Idol” style competition gives tech companies 7 minutes to demo their coolest technology. The competition was hosted by our CEO, JB Wood. A panel of judges, consisting of Al Gray, Vice President, Bentley Systems; Tony Brucha, Director, Advanced Services, WebEx Customer Success, Cisco; and yours truly, asked questions and made somewhat relevant comments after each presenter. Audience voting determined the winners.

To be considered for Service Revolutions, technology firms submit applications in 3 categories:

  • Service Practitioners. These are service organizations within tech firms, showing off technology or programs they have developed to improve customer service, streamline operations, or drive service revenue.
  • Commercial. These are established technology firms selling products to service organizations. The products must be in Beta phase or newly released.
  • Startup. These are brand new tech firms within their first 2 years, often pre-VC, showing off products yet to be released. The winner of the startup category wins a check for $10,000!

The finalists who took the stage were:

  • Service Practitioner: Blackbaud. Blackbaud demonstrated their group consulting model for professional services.
  • Service Practitioner: SAP. SAP demonstrated their Learning Hub for customer education.
  • Commercial: Ancile. Ancile demonstrated their in-product dynamic help technology.
  • Commercial: Radialpoint. Radialpoint demonstrated their Google extension which incorporates internal content into employee’s Google searches.
  • Commercial: Transversal. Trasnversal demonstrated Prescience, their voice self-service product.
  • Startup: SimpleQL. SimpleQL demontrated their dynamic analytics tools, “the Festivus of Business Intelligence.”
  • Startup: XOEye Technologies. XOEye demonstrated their camera and video enabled saftey glasses for field service, with a price point in the hundreds–not thousands.

The winners were Blackbaud, Radialpoint and SimpleQL. I thank all the presenters for great demonstrations, and congratulations to the winners!

TSW Power Hour Session Recap: The 2014 Technology Heatmap

May 6, 2014

Yesterday was opening day of Technology Services World Best Practices, and I had a very full day. I did 5 presentations, which I think is a new personal record for a single day.  The day started with the TechFUTURES event, which was hugely attended, then the TechBEST showcase. I gave a tech trends overview at the partner Expo kickoff, then had my power hour session, and finally moderated a session on social support.

I wanted to recap some of the info from my Power Hour session, which focused on technology trends and the results from my 2014 Global Technology Survey. The results of the survey were released yesterday, including 10 research reports based on the data published on TSIA.com. The survey tracks adoption, satisfaction and planned spending across 24 categories of tools and services, and we use the adoption data to build the annual Heatmap. Here’s a look at the 2014 Technology Heatmap:

2014 Technology Heatmap

As you can see, the categories are color coded by adoption level, with letters indicating which service disciplines each category applies to (E=Education Services, F=Field Service, M=Managed Services, P=Professional Services, R=Service Revenue Generation, S=Support Services).

The three categories that saw the highest adoption gains over 2013 were:

  • Field Service Parts and Logistics: +8%
  • Knowledge and Content Management: +6%
  • Intelligent Search: +5%

Another area everyone is always interested in is planned spending–where are companies investing in the next 1-2 years? Here’s a list of the top investment areas, with more than 50% of TSIA members having budget earmarked for new or additional purchases in 2014-2015:

  • Enterprise CRM: In a cloud world, buying CRM is never over as every new feature requires an additional purchase
  • Communities and Collaboration: Focus shifts from customer communities to employee collaboration
  • Knowledge and Content Management: Mobile and social driving spending across disciplines
  • Reporting and Analytics: Real-time dashboards key requirements across disciplines
  • MultiChannel Platforms: Continued investments in chat, social channels added to core multichannel strategy

For more details on adoption and spending trends, see the spending reports for each discipline live now on TSIA.com.

Thanks for reading, and hope to see you this week at TSW!