ServicePower Field Service Optimization Software

Building a Business Case for Integration

By
Michael Blumberg, CMC
Chief Operating Officer
D.F. Blumberg Associates, Inc.

One of the key distinguishing factors of a service business is that it is an intensively data, labor, and capital-intensive (e.g., parts) business. Although, most companies understand the labor and capital-intensive nature of service, they often fail to understand the importance of data. After all, data can be used to track, plan, and forecast service resources to ensure optimal levels of service quality, efficiency, and productivity. It’s not so much that companies do not realize the importance of service performance benchmarks and metrics; it’s that they often do not have the ability to capture, track, and measure the correct data in real time and/or they fail to realize the relationship between various data points and business processes.

In the former case, the service organization does not have the ability to track such performance metrics that are critical to the business (such as mean time between failure, uptime, etc.) in a timely manner. In the latter, the organization does not have the ability to see what impact, for example, the trunk stock fill rate has on the percent of calls closed on the same day. These outcomes are often the result of inadequacies in the company’s internal information systems. Either the systems are not state of the art and do not produce quality analytics and/or they are not integrated on a standard platform permitting real-time business transactions and reporting. In essence, it comes down to the fact that antiquated and fragmented systems prevent a company from having the data it needs to manage service on an optimal basis. Of course, some companies get passed the problem of antiquated systems, but if they acquire new, state-of-the-art systems the problem becomes one of fragmentation.

In my opinion, the problems identified above are the result of a number of different factors. Companies often have a difficult time agreeing internally on which system represents the best choice from a state-of-the-art perspective. The company may, because of internal politics or some other overriding issues, decide to select a system that cannot support certain functions required by the service organization, or the functionality offered in the system is not as strong as the functionality required by the service organization. In either situation, the service organization must make a business case to purchase a supplementary point solution or adjunct system to support the new enterprise system. More importantly, the service organization must be able to find a system that can essentially “talk to” the existing corporate systems without significant customization costs. Yes, this is a challenge, and yes, the battle can be won through perseverance and a strong business case justification.

This first scenario deals with overcoming internal politics with regard to IT strategy. Another common scenario that can create a fragmented information system is an internal operating strategy that fosters semi-autonomous business silos and processes. The service organization is then challenged to justify the purchase of a new system that is both separate and distinct from other corporate systems as well as having the ability to easily share and exchange data with existing systems. This is by far a bigger challenge than the first scenario of simply trying to integrate a point solution into an enterprise system because much more is at stake in terms of decision makers and strategic outcomes. In either scenario the service organization is impacted in its ability to obtain real-time data to manage its business on an optimal basis.

To avoid these problems, it would seem obvious that the management team of the service organization needs to take an active leadership role in defining and influencing the company’s corporate IT and operating strategy. I realize that this is easier said then done; however, when push comes to shove, the service organization really needs to be engaged in the process. Here are my suggestions on how a service organization can take a leadership role in the corporate IT and operating strategy:

Continuously convey your service management strategy and vision to IT and other corporate division heads within your organization. Remember you need to keep yourself in front of the movers and shakers within your company.
Describe the benefit (WIFM – What’s in it for me) that deploying integrated, state-of-the-art service management systems will have on the rest of the organization. People are often motivated to do things that are in their best interest, so show them how your strategy and vision will benefit them.
Obtain the data and benchmarks to build your business case for integrated, state-of-the-art systems. You need to arm yourself with the facts if you are going to win your case.
Keep yourself current on the state of the art and industry best practices. You need to know your stuff and be on top of your game if you want to remain credible among your colleagues.
Inform the software vendors of your requirements. Vendors may be willing to adopt their system to your requirements if they feel that opportunity is large enough, so try to keep them involved.
Solicit help from a non-partial, objective expert. Sometimes this is the only way to get people to listen and/or avoid the mistake that costs you your career; if you win you’re a genius, but if you lose it’s the consultant’s fault.

In summary, the service organization needs to constantly be “pushing” its agenda within the organization in order to avoid being “shoved” into a position that is not consistent with its goals. Through our benchmark research program we have been able to demonstrate that integrated business systems that optimize service delivery processes can have a dramatic impact on service quality and profitability. However, the reality is that the service organization often does not have the opportunity to realize the benefits of service optimization because of IT and operating strategies that are not consistent with their own. This status quo can be overcome if the service organization is willing and committed to step up to the leadership challenges that a change in strategy demands.

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Michael R. Blumberg, CMC, an authority on marketing research/strategy formulation in the high-technology service market, is COO of D.F. Blumberg & Associates, Inc, a Fort Washington, PA based management consulting firm that provides client services in strategic planning, market research, productivity improvement, and management systems design and implementation. You may reach him at michaelb@dfba.com or (215) 643-9060.