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Resource Type: White Paper
Title: 6 things you need to know when purchasing Service Lifecycle Management software
About: Based on independent research Michael Blumberg provides critical information for anyone who is preparing to purchase Service Lifecycle Management (or Service Management) software.
Download: Download the white paper by clicking here.

 

Synopsis:

As President of the Blumberg Advisory Group, Michael R Blumberg is widely acknowledged as one of the world’s leading consultants across field service, aftermarket services and reverse logistics. He is also a prolific commentator on industry and an accomplished author of many white papers. Field Service News is pleased to bring a selection of his white papers to you. The first of these is based on an exclusive research conducted by the Blumberg Advisory Group which was a yearlong market research study sponsored by the CSDP Corporation which looked at the experiences of hundreds of companies when purchasing Service Lifecycle Management (SLM) software.

As Jerry A Edinger, CEO of CSDP corporation comments “An ideal SLM solution puts terms and conditions of the contract at the heart of the system and builds on that system with solid experience in service delivery.” “There are many Niche players in the SLM space. Decades of  experience  and trusting your provider is key to everyone’s success. We treat all of our clients as a trusted partner.  By doing this,  it creates a Win-Win for everyone” In this white paper “6 things you need to know when purchasing Service Lifecycle Management software” Blumberg distils the knowledge found in this research into six key findings for organisations looking purchase enterprise standard service software. These are:

What to expect in the sales process?

Whilst you are almost certainly going to be doing a lot of research prior to even speaking with any software providers (like reading this feature and then downloading the white paper for further detail) when you do reach the point where you are contacting providers what can you expect? Well first of all most software provider’s will give you a top level demonstration of their software either during your initial call or soon after. Typically this is just meant to give you an idea of how the software works and a more detailed, a second demonstration, customised to your own specific company’s requirements will follow. Often the software provider will request that you fill out a demo prep form ahead of the next demonstration so they can tailor the demo to your needs.

What to look for in a Software Lifecycle Management software vendor?

The service management software market is a crowded niche, there are a number of software vendors available to you and understanding the different offerings can be a confusing if not overwhelming. In this section Blumberg looks at what were the common features that companies sought from software providers. The top three factors were software feature and functionality, technical competency of vendor, and vendor flexibility, with all of the respondents rating these factors as either the most important or second most important factor they considered when purchasing service software.

How important is price?

Interestingly price is far from the dominant factor when purchasing service software with only a quarter of companies indicating that price was the most important factor when purchasing SLM software.  In fact over half of respondents selected a software solution that was somewhere in the middle in terms of cost.

How important is the role of discounts in the buying decision?

As in many industries discounting is reasonably standard and common place when pricing software so there is often room for negotiation in the purchasing process. Blumberg reveals that 83% of those who purchased an enterprise software solution in the past 24 months received a discount and 89% of those planning to purchase in the next 24 months expect a discount. However, remember to be wary of software providers who drop their price too much without concession. The lower price may just come to haunt you when it comes to implementation.

CRM, ERP or best of breed service software?

For service lifecycle management software there are often three choices; buy your service software form your CRM provider, buy from your ERP provider or choose a best of breed service software provider. Whilst it may be easier to go with the CRM or ERP providers who you already know, best of breed providers specialise in service and their products are designed to contain all the functional requirements to support the full service lifecycle management process in an organisation.

What happens after the sale?

Perhaps the most important aspect of the white paper, understanding what you can expect after you have purchased the software is of course an essential piece of insight that will shape your decision on choosing the right vendor. It is important to understand exactly what the vendor’s expectation are of you during the implementation as well as understand the level of resources the vendor will commit to you during the implementation and for post implementation support. In this final section of the white paper Blumberg provides some excellent guidance on getting this detail correct. Buying any kind of software can be a daunting, this is magnified when it is for business and when it comes to mission critical software such as Service Lifecycle Management software the stakes are even higher. Understanding the buying process is an important element of getting the right product, at the right price, with the right level of implementation support that your company needs. Drawing on the insight of hundreds who have been through the process this white paper is therefore a great resource for those considering SLM software.

Download the white paper by clicking here.

Across the last couple of years there have been a number of recurring themes coming out of varying research projects looking at the field service industry.

One fact that is highly apparent is that whilst the global economy has steadied herself somewhat following the worldwide downturn in 2008, the field service industry, like most other industries is still feeling the effects of the decline. One poll conducted by the Aberdeen Group highlighted the two biggest market pressures were reduced customer spending alongside increasing resource costs.

These factors sitting alongside each other are major drivers for the need for companies to rethink how they structure their profit and loss sheets and shifting the service division from a cost centre to a profit centre is in some cases a sensible move to make, in others it is absolutely essential to secure a long term stable future.

Another recurring theme is that in general service standards appear to be falling. One report run by TomTom and TNS highlighted that 87% of Europeans suffered field service operatives turning up late to an appointment. Another report, this time based on research conducted by Cognito identified that 67% of UK consumers believe service has deteriorated within the last three years.

Is this decline in standards the result of strained resources due to lack of financial support? Or is it the result of the ‘connected consumer’, where through social media and the vast array of communication tools readily available via the internet the consumer is not only fully empowered to voice there dissatisfaction, but also have expectation levels raised beyond any previous standards? Likelihood is it is a combination of both, however if monetising service is a target, then a field service organisation delivering anything less than excellent service is likely to struggle to make the transition smoothly.

Yet at the same time the tools to improve field service standards, raising efficiency, lowering costs and improving productivity are not only becoming more sophisticated than ever before. Due to the impact of Cloud computing and the Software as a Service model they are also more easily available for even the smallest companies. The days of service management systems being available only to those organisations that could afford the initial capital expenditure are no more. Today, technology that can enable and empower the mobile workforce is accessible on even the most modest budgets.

With this in mind it would seem fool hardy for any company to not explore investing in the technology available that can facilitate the move from cost centre to profit centre (although whilst technology is a key factor, there are of course other more strategic and cultural considerations to be implemented too of course.)

However, as with anything in life it is not always feasible (or even sensible) to try to undertake a huge redevelopment of your service department in one go. It is important that you understand where you are today, where you want to be and then plot a sensible and achievable roadmap of how you are to get from one to the other.

There are a number of stages between your field service solution evolving from out-dated manual processes that eat up your companies time and money, to a fully automated, efficient and streamlined field service solution, that allows you to position your staff resources into the most optimal positions to allow you to harness and secure new and on-going revenue streams.

Broadly these evolutionary stages are as follows:

• Stage One: Basic Automation
• Stage Two: Extended Automation
• Stage Three: Integration
• Stage Four: Optimisation
• Stage Five: Decision support and effectiveness.

Whilst each companies path will be unique to them, it is good to have an understanding of each of these stages, so you can use them as sign posts on your own road map.

To give you further insight into these stages, Field Service News has compiled the white paper “The 5 Stages of Field Service Evolution”. This white paper, which is sponsored by Solarvista details each of these key stages, what they entail and what the benefits you will see at each level are, as well as further analysis of the state of the field service industry today, and the importance of moving from cost centre to profit centre.

To download your free copy of this important resource simply click this link and complete the very brief registration form.