For whom the bell tolls: IT’s extinction?
In a recent post by Michael Krigsman over at ZDNet, Krigsman asks if IT is becoming extinct (also note the cute url post: (…?p=666). While Michael most definitely has experience within the technology industry, the title is a bit sensationalist and the subject matter seems a bit over-the-top… While I agree many of the yester-year IT leaders are ill informed on how to bridge business objectives using technology, I disagree that IT will become extinct.
The executives must understand how to hire talent that is customer service focused, and not keep hiring the “computer guy” (SNL). Of course IT as a whole is not going extinct, but Krigsman is correct in that many job roles are becoming a commodity. However, there are so many dynamics abound within each company, let alone a vertical or IT as whole, to simply gloss over and come to some reactionary hypothesis.
Just because individuals are espousing this gripe or that complaint about corporate IT, it shouldn’t coerce you into putting on blinders and cracking the whip…
After all, we are talking about people when it is all said and done. What was it the once beating heart of IT cared so deeply about? Wasn’t it a way to help people reach new levels of productivity and feel good about their contributions without having to repeat the meaningless and mindless tasks required of yesterday’s business?
Are You Tired of the Software Upgrade Treadmill?
Ah, there is nothing better than spending hours and weeks trying to solve one little annoying problem only to stump the technical support engineers so badly that the only thing they can say is that we need to upgrade our software yet again… I am told we are pretty far behind, and it would be advisable to upgrade!
Geez, I just loaded “the latest” software in December, and 3 months later I am pretty far behind? Now, I am used to recommending customers stay up-to-date with patches and security holes, but to have a major release for core infrastructure stuff - business affecting systems - is, well, a tad agresssive.
Needless to say, I can’t go forward with my technical support issue until this is put to bed so let’s hope the upgrade process goes smoothly (crossing my fingers)…
Does anyone else get a little frustrated with this? Is the breakneck pace of software upgrades in your buiness, well, breaking your neck?
Are You Practicing Your DMS Best Practices?
Today we discuss the need for best practices in document solutions. In a recent article in ImageSource titled Top 10 Industry Trends, authored by John Mancini, the President of AIIM, outlines what he believes to be the top 10 drivers within the DMS space… Let’s continue our discussion with the number 7 influencer in the DMS space this year:
7. An accelerating need for quantifiable best practices in the user community. Why does every implementation seem to sound like it is starting from scratch? Haven’t we all collectively learned something that can be documented and shared without paying some consultant a ton of money? Is there some role that a magazine like imageSource can play in helping to aggregate all these end user successes?
John strikes on something very near and dear to my heart… Well, John I hate to break it to you but the simple reason there are very few (if any) published best practices is the simple fact that many solutions providers (formerly copier dealers) are sales driven organizations. Does the motto, “Let’s sell the solution first and figure out how to make it work later,” ring any bells?
Without being funny, there is some element of truth in this. Many solutions providers are still trying to figure out just how to sell a good solution that works and makes them money. Let me tell you, it was tough just to get a network survey to connect a copier. Can you imagine trying the change to the culture necessary to facilitate a well conceived and executed discovery process?
About the closest person I’ve seen to having the secret sauce is Darrell Amy, over at Dealer Marketing Systems, with his ProSolutions Bootcamp. I know there is the stigma of a high-priced consultant, but with all of the “dealer community” still trying to get their hands around document solutions it’s tough to come up with the entire process overnight. Darrell has some good talk tracks to tie some disparate sales processes and solutions processes in place. However, it’s still up to the dealer to come up with the installation and support processes. It might be possible to look to a vendor/manufacturer, but often times they do not hold your customers as dear as you might.
Most solutions providers are still struggling to get things going, and may even be in their first year of selling document solutions. The pain is tremendously high and the returns are not yet realized. Many will fall by the way side, but I have hope that John’s vision of a common collective of information might yet be available. I do wonder though, as protective as the dealer community is with it’s information, would this utopian vision of knowledge sharing become available?
Interestingly enough, I must say I’ve been impressed with the overall amount of knowledge sharing the community is willing to offer. Everytime I have asked for advice or information it has been offered quickly and happily. Of course, I’m not in direct competition with the those I’m asking either.
Here’s what it will take to achieve the knowledge share John references:
1. Higher level of maturation within the solutions provider ecosystem.
2. Established and/or dominant players at the provider level.
3. Consolidation of CMS/DMS vendors, thus providing a standardization of sorts.
4. A panel of representatives willing to organize the information (build and they will come).
The reason it feels like every implementation is starting from scratch is we have not yet even scratched the surface of the proverbial solutions path. With these four things, it might be possible to finally create some type of knowledge sharing system. Only time will tell…
Tomorrow we discuss number 8 on the list, the blurring lines of technology in the solutions arena.
Is Your Solutions Business Driving Revenue or Driving You Crazy?
Tonight we discuss ”the rise in importance of the channel and solutions providers” of document solutions. In a recent article in ImageSource titled Top 10 Industry Trends, authored by John Mancini, the President of AIIM, outlines what he believes to be the top 10 drivers within the DMS space… Let’s continue our discussion with the number 6 influencer in the DMS space this year:
6. The rise in importance of the channel and solution providers. As the core technologies become viewed more as infrastructure, the capabilities of those who actually deliver and implement solutions becomes critical.
This is a critical role many solutions providers count on in order to drive professional services revenue. I would be interested in what others in the industry are seeing as there is definitely some truth in what John says, but not to the extend I would call it a fire sale just yet. The solutions providers’ business models still vary widely from company to company, as do the expected results.
I would propose there are two general schools of thought at the solutions provider level. The first revolves around the transitional copier dealer attempting to play in the arena of “solutions”. Typically a dealer will take on one (maybe two) lower-end, and easy to implement, file cabinet replacement. The professional services engagements are minimal, so they will typically train the connected technician or “IT Manager” to handle the installations. This allows them to maintain gross profit generally and many customers are quite fine with this presentation. All in all, it is not a predatory relationship, but it is definitely not a strategic relationship either.
The second is a provider who invests in an infrastructure of more highly trained engineers and sales staff. This is much more costly, runs the risk of side-tracking the current sales, and overall has the greatest risk of flopping. So why even risk this? Well, the profit margins can be substantially higher, the deals much larger, and the customers tend to be arguably longer-term. While this has the greatest potential for overall revenue generation, if serving your customer is not the focus, customers can begin to view their long-time provider of copiers, printers, and faxes as just another software company trying to turn a buck. Be cautious of this slippery slope.
Some dealers have found a hybrid model works, much like the territory and major/named account divisions in mid-sized to larger dealers. This is an equitable model so long as your staff is competent to understand the differences between the types of clients and their respective needs. In other word, it can be disastrous to attempt to force a lower-end solution into a more enterprise environment; conversely, it can leave a bad taste in the small business owner’s mouth if you leave them with an over-powered (and over-priced) solution.
In general, it should be expected to see a fair amount of professional services revenue as a result of a document solutions sale, and generally can equal or exceed the revenue of the software itself. But do not expect to see a run on the bank for phase two engagements at the outset. Most clients are content to renew their maintenance and call in for helpdesk support as needed (another key component to a successful document solutions program, by the way). This is understandable and to be expected as a business grows its base, and the base will most likely be a smaller percentage of total revenue if a company is to maintain stability of profit.
Outside of this, my contention would be that clients aren’t really pressing for phase two engagements because they were looking for a very specific solution, which was met (thinking tactically again). It should be expected that most companies will begin to ask questions about expanding between years 2-4 of a current solution if they are on-track with proper growth strategies. If not, then why not bring these questions up in your account reviews?
Interestingly, both customer and solutions provider have a choice to make: The former must choose whether to invest in a tactical solution to meet today’s needs or invest in a partner to help them achieve their goals today and tomorrow. The latter must choose which professional services model they will follow given their goals for revenue generation, customer retention, customer acquisition, and growth.
Everyone has an opinion about what is right and what is wrong. Only you know your business (customer or provider). So sit down, take a deep breath, and think about what’s important to you. After all, it is your business isn’t it?
-
ChangeForge... a catalyst to affect the paradigm by Ken Stewart is licensed under a Creative Commons Attribution-Share Alike 3.0 United States License.
Based on a work at www.changeforge.com. -
-
