Business Services-A New Direction for Customer Services

4 Pages·1993·0.23 MB·English

October1993
INPUT Vol.iV,No.20
c Routeto:
Research
Bulletin
—
APublicationfromINPUTSCustomerServicesProgramme Europe
—
New
Business Services Direction
for Customer Services
CustomerServices(CS)organisationscommitted providersusheredintheeraofcustomerservice.
toprovidingcompleteITinfrastructuresupport Thisshiftemphasisedpersonalserviceand
servicesareincreasinglylikelytomeet qualityofoperationsovertechnicalskillsand
competitionfromnon-ITindustryvendors. This competence.
developmentshouldbeviewedasanopportunity
notathreat,sinceitsignalsaverylargepotential INPUTforecaststhatoverthenextfivetoten
newmarketforCSfirmsthatpreparethemselves years,asimilarshiftwilltakeplaceinwhich
toattackthewideropportunityofbusiness customerserviceswillbeovertakenbythe
services. conceptofbusinessservices. Exhibit1expresses
thesetrendsgraphically.
Theopportunitytoprovidebusinessserviceswill
beoneofthekeydevelopmentsoverthenext TheconceptexpressedinExhibit1doesnot
fivetotenyears. Customerservicesvendorscan implytheeliminationofbasicactivities,simply
profitfromthisopportunitythrough: theirsubordinationtoamoredominantindustry
paradigm. Adoptionofthepredominant
• Understandingthestrategicfactorsdrivingits conceptinthemarketimpliesaccesstofaster
development growingmarketsectorsandhighermargin
opportunities.
• Identifyingthemostappropriatemarket
sectorstotarget . .. Thefundamentalstrategicforcecreatingthe
businessset\'icesopportunityisthetrendtowards
• Evaluatingthenewcompetitiveenvironment outsourcing. Todate,muchattentionhasbeen
thatmustbetackled. paidintheITindustrytooutsourcingIT
functionsnotablysystemsoperations(IT
TheEmergenceoftheBusiness facilitiesmanagement).
ServicesMarket
TheincreasingintegrationofITfunctionsinto
uDnuirtirnegvtehneue1s98a0n'sd,mdaercgliinnessainndfiienlcdrmeaasiinntgenance dcaoynsteoqduaeyntbubsliunrersinsgoopfertahteiodniss,tiancntdiotnhebetween
competitionfromindependentmaintenance them,isthefundamentalforcedrivingthe
emergenceofabusinessservicesmarket.
^1993byINPUT.Reproductionprohibited.
RESEARCHBULLETIN
Exhibit1
CustomerServiceMarketWaves
Business
Customer
Services
Field
Maintenance
1980 1990 2000
Source:INPUT
[
tdentifyingBusinessServices Adistinctionisalsomadebetweenprojectand
Opportunities operationalactivities, resultinginfourdistinct
areasofactivity. SystemsOperationsand
Emergingservicesmarketsarebynature SystemsIntegration(SI)haveemergedas
fragmentedandcharacterisedbyconsiderable significantservicemarketsectorssincethemid
diversity. Itisthereforeamarketingimperative 1980's.
toclearlyidentifytheopportunitiesthat:
Thebusinessservicesopportunitiesindicated
• Offerthehighestpotentialforgrowthand are:
development
• BusinessIntegrationServices(BIS)already
• Ainrferamsotrsutctauprperoapnrdiasktielltobatshee.firmsexisting itadlensteirfviiecdesasmaarskuebt-s(esceteorReosfetahrecehnBvuilrloentminen-
No.19).
TheschematicshowninExhibit2isafirststep
towardsfocussingonthemostappropriate • BusinessOperations.
oorpgpaonritsuantiitoiness.forcustomerservices AnumberofmajorITsuppliers,notablyDigital
andUnisyshavealreadydevelopedsignificant
Exhibit2indicatesadistinctionbetweenpurely initiativesintheBISsector.
ITrelatedactivitiesandnon-IT,however,the
latterwillincreasinglyinvolveresponsibilityfor
ITactivitiesaswell.
2 »1993byINPUT.Reproductionprohibited.
RESEARCHBULLETIN
Afocusonsupportingthephysical
Exhibit2 infrastructureofanorganisation,
fromthestartingpointofcomputer
DefiningtheBusinessServicesOpportunity maintenance,leadstoamuch
greateropportunitythanjust
providingITcustomerservices. A
prerequisiteisthepreparednessto
takeresponsibilityforandoperate
PROJECTS SI BIS t"rlaodwi-ttieocnhal"IpTrosceersvsiecess.asEweDlSlaissone
ofthefewexamplesofITvendors
attunedtothisopportunity,astheir
logisticscontractwithMemorexin
Europedemonstrates.
OPERATIONS OPSEYRSATTEIMOSNS OPBEURSAITNEISOSNS IdentifyingNewCompetitors
Oneofthemajorsupporting
argumentsfortheemergenceofa
businessservicesmarketisthe
IT NON-IT activityofnon-ITindustryvendorsin
providingthistypeofservicetoday.
Source:INPUT However,thebusinessservicesthey
providetendtobefragmented,the
integrationofITsupportactivityislimitedand
However,thereislittleevidencetodateof therehasbeennoorganisedidentificationof
customerservicesvendorshavingmade businessservicesasadistinctmarketopportunity.
initiativestowardsexploitingbusiness
operationsopportunities,potentiallymany ThedevelopmentoftheCommercialSystems
timesthesizeoftheBISmarket. Integration(SI)andITOutsourcingmarketsover
thelastdecadeindicatesthattherearesignificant
Thebusinessoperationsmarketcanbe benefitstobegainedfromanorganisedstructured
furtherdividedbetween"high-tech"and approachtowhatpreviouslyhadbeenfragmented
"low-tech"activities. Customerservices andopportunisticmarkets.
vendorsshouldseriouslyexaminethe
requirementforhandling"low-tech"services Customerservicesvendorsareinastrongposition,
inordertoensuretheircontrolof"high- particularlythosewithclearbrandrecognition,to
tech"services. benefitfromanorganisedapproachtoproviding
Afurtherdistinctionisthatbetween b(unsoinn-eIsTssienrdvuiscters.y)Acocmapreetfiutliveevavleunadtoirosn,owfitthhewnheowm
supportingthelogicalandphysical alliancesmayneedtobeformed,willbeextremely
infrastructureofafirm. important.
ThemajorfocusofITvendors,particularly
informationservicesfirmslikeAndersen
ConsultingandCapGeminiSogeti,hasbeen
towardssupportingthelogicalinfrastructure
ofclients,albeitbasedonoperatingtheIT
systems.
"1993byINPUT.Reproductionprohibited. 3
INPUT
RESEARCHBULLETIN
Someexamplesofthefirmsthatarealready Exhibits3and4providesomekeydataabout
activeinsomewayinprovidingbusinessservices theSERCOorganisation.
arelistedbelow:
Customerservicesvendorsarewellpositioned
AIRWORK(UK) toattackthebusinessservicesopportunity. This
BCIESTEFTac(iIltiatliye)sManagement(UK) , rperqeupiarreesdntheessmatonabegedmreivnetnpbayrcaudsitgommeshrifnteoefds
DASA(Germany) beyondtheboundariesoftheIT/
DRAKE&SCULLTechnicalServices(UK) communicationsenvironment.
HUNTINGENGINEERING(UK)
IFMCo.(UK)
SELECTFacilitiesManagement(UK)
SERCO(UK) Exhibit3
THOMSON(France). Serco
ScoEmRpCanOyisthaatgoisodalerexaadmyplinetohfisthmeartkyepetoafndthat Osfefrevriicnegsawicthoimnproenheecnosnitvreacrtangeof
islikelytorepresentanincreasingcompetitive
threattoIT-vendors. Itsactivitiesspanboth lALacquiredApril1992
"high-tech"and"low-tech"services,ranging
fromitsmajorfacilitiesmanagementcontract $225MAnnualRevenue(1992)
fortheFylingdalesearlywarningradarsystem
throughto"grassmanagement"inHydePark, 6,000+staff
London. SERCO'sunifyingmanagement
croanngceepotfissetrhveicpersowviitshiionnoofneaccoonmtprarceth.ensive Source:INPUT
Exhibit4
SercoActivities
Project
Management
Support
11%,
System
Engineering/
18% Facilities
Management
51%
Operationan
Maintenance
20%
Source:INPUT
ThisResearchBullclinisissuedaspariofINPUT'SCustomerServicesProgrammeforthe
informationservicesindustry. Ifyouhaveanyquestionsorcommentsonthisbulletin,pleasecallyourlocalINPUT
organisationorPeterLinesatINPUT,17HillStreet,Mayfair,LondonWIX7FBEngland.[phone],Fax[phone]
4 "1993byINPUT.Reproductionprohibited.