Developing an Open-Support Culture

12 Pages·1993·0.71 MB·English

Febmaty1993
Vol.IV,No.2
INPUT lEU-CSP
Routeto:
Research
Bulletin
APublicationfromINPUT'SCustomerServicesProgramme—Europe
Developing an Open Support Culture
Thisarticleanalysesanotheroftheimportant Exhibit1illustratestherelationshipofthese
implicationsforsupportservicesstemming cultures,andassociatesthemwiththesystem
fromthegrowthofopenandnetworked life-cycleconcept.
systems.
1. TheProductCulture
TheDifferentITCultures
— Theproductcultureisprincipallyfoundinthe
Creatinganopensupportcapability whichis equipmentandsoftwareproductvendors. The
theseamlesssupplyofsupportservices organisations'energies arefocusedupon
delivereddirectlytotheuserortohisendusers, developingproductsthatmeetandanticipate
andembracingh—ardware,softwareand theneedsofthemarketplace,andthesales
communications demandsabroadspreadof channelthatistrainedtointerprettheneedsof
skills. Oneofthechallengesthatservice itscustomersandprospectsintermsofthe
suppliersfaceindevelopingthiskindofopen productsavailable. Insuchcompanies,any
supportisthedifficultyinbringingthevarious servicesofferedhavetypicallybeenstreamed
culturestogetherthatthesedifferentskillsmay behindtheproducts,andpricedrelativeto
bringwiththem. them. Intheireffortstomovemorefirmlyinto
theservicesbusiness,manyequipmentvendors
Supportserviceshavetraditionallybeen havecompiled'productcatalogues'fortheir
segmentedintothoseassociatedwithhardware, portfoliosofdiscreteservices.
software,systemsdevelopmentandoperations,
withusersoftenemployingadifferent 2. TheProjectCulture
supplyingcompanyforeachtypeofservice.
Thesedifferentoriginshaveresultedindistinct Thiscultureislargelytheterrainofthe
businesscultures,ofwhichINPUThas consultancies,softwarehousesandprofessional
identifiedthreetypes: servicescompanies,whoarecalledinbychents
toscopeortodesignanddevelopparticular
• Theproductculture systemssolutions. Thecompany'sresources
• Theprojectculture andinternalsystemsarethereforefocused
• Thecontractculture aroundthenotionoftheproject,whichispriced
©1993byINPUT.Reproductionprohibited.
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Exhibit1
BusinessCulturesintheLifeCycle
Implement ?
accordingtotheresourcesneededtodeliverthe • Accurateimpactassessmentsofongoing
requiredsolution. Theroleofthesaleschannel clientrequestsforchangestospecification
istopromotethecompany'srelevant
competenceandtoensurethatthecustomer's 3. TheContractCulture
needsareproperlyunderstood.
Thecontractcultureistypicalofthethird-party
Stronganaloguesofthistypeofbusinesscanbe maintenancecompanies,theFMcompaniesand
foundintheconstructionanddefence theircustomerservicedivisions(inthecaseof
industries. Keytoprofitabilityarethe thelargersystemsvendors). Theservices
following: providedaredefinedbythecontractunder
whichtheyaresupplied,andmuchenergyis
• Earlyassessment(i.e.duringthebidstage)of devotedtoensurethatthecontractboundaries
majorriskareas areadheredtoandwellunderstood. Pricingis
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RESEARCHBULLETIN
typicallybaseduponanassessmentofthe Predominantculturesalsovarybycountry
resourcelevelsneededtomeetthetermsofthe market. Forexample,inthoseEuropean
contract,oftenwithelaboratemechanismsfor marketssuchasSpainandGreecewhereIT
measuringvariationaroundthepre-agreed servicesarerelativelypoorlydeveloped,a '
norm. Theconceptofthecontractasanaidto productculturetendstodominatesuppliersand
servicedeliveryisoftensoldasheavilyasthe customersalike.
servicesthemselves.
Lookingatthedifferentskillsrequiredin
Ofcourse,thisisanoversimplification,andall providingopensupport,itbecomesapparent
tlieseculturescanberepresented whyculturecanbecomeabarriertoeffective
simultaneouslyinasingleorganisation. For CO-working. Exhibit2correlatesdifferent
example,newbusinesssalesteamsinall groupsofprofessionalswiththeirtypical
companytypeswilltendtohaveaproject culturalbackground.
cultureregardingeachnewbidasaprojectin
itsownright. Accountmanagers,conversely, OpenSupportDemands
tendtothecontractcultureregardingthe Co-Workmg
relationshipwiththecustomerasanongoing
concern. However,opensupportdemandsthatallthree
cultureshavethefollowing:
Accountmanagementisessentially .
managementofthecustomer'sperceptionof • Productskillsthatarevitalinensuringthat
theservicelevelsbeingreceived. thetechnicalcomplexityimplicitinopenand
networkedsystemsremainstransparenttothe
Keycharacteristicsofeachculturearethe user.
following:
• Projectskillsthatareneededtoensurethat
• Product: hinovationthroughleadingedge systemsevolveinlinewithchanging
R&D;withsellingthroughclassical customerneeds.
marketingtechniques. *
• Contractskillsthatunderpinthecustomer
• Project: Projectmanagementandaccount relationshipandtheachievementofagreed
managementarethekeystoprofitabilityand servicelevels.
continuingrevenuesrespectively.
Clearly,theglueholdingthedifferentservice
• Contract: Resourceutilisationandniche elementstogethershouldbeastrongfocuson
marketingaretheequivalentkeysuccess thecustomercoupledwithflexibleattitudes.
factorsinthistypeofbusinessculture. Howcompanieschosetostructuretheir
resourceteamsinprovidingopensupportwill
DifferentCulturescanClash alsohaveastrongbearingonwhethercultural
differencesbecomeastrengthoraweakness.
ManyofthedifficultiesexperiencedbyIT
companiesinachievingasmoothinterface
betweentheirsalesanddehverychannelscan
beattributedtoculturaldifferences.
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Exhibit2
ProfessionalsandtheirNaturalCultures
ResourceGroups TypicalCulture
HardwareEngineers ProductorContract
SoftwareSupport Product
HelpDesk Contract
ProductDesigners Product
SystemsDesigners Project
SoftwareTeams Project
NetworkEngineers ProductorContract
SalesTeams Project
AccountManagers Contract
OperationsManagers Contract
Source: INPUT
HOpoewnDSeulipvpeorrytStructureImpacts eaapcphr.eciTahtiisonwiolfltbheepoavretriaclullacrhlayramcaterrkiesdticifstohfe
resourcegroupsareprofitcentresorindividual
Takethecaseofatotalsiteservicecontract If companies.
resourcesbelowthehelpdesklevelremain
streamedbyfunction,withtheoverallsupport Ifontheotherhand,resourcesarebrought
contractonlyactingasamechanismforgiving togetherinthecontextofeitherindividual
accesstoandchargingforthediscreteservice contractsortoservicegroupsofsimilar
elements,thenseamlesssupportisunlikelyto contracts,thentheprospectsforsmooth
beachieved. integrationofactivitiesareimproved. For
example,agroupofsmallsoftwarecompanies
Customerfocusmaybelackingandindividual eachsupplyingUNIXapplicationstoIBM,
contractswillbejustoneofmanyservicedby worktogethertoensurethatenhancementof
theresourcegroups,withperhapslittle onecompany'sproductdoesnotadversely
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impactanother's. Fromthecustomer's managementandmarketingteamstowork
perspective,thesesoftwareproducts,although togetherfizzleoutassoonasresponsibilityfor
independentlysourced,canbeconfidently actionpassestotheoperationallevel. Yetthis
integratedattheuserlevel. companyownsmany—oftheresourcesneededto
OpenSupport—Packagedor plarcokviodfewoilplenthsatupipsoirnthibi^ittiinsgthaenycommopvaenyt'oswaorwdns
Customised? accompUshingthis.
Thedegreeofserviceintegrationrequired Thecompaniesthatrecogniseandaddressthe
variesbycustomertype: culturalissuesimplicitinopenandintegrated
support,thatensurethatalltheiractivitiesare
• Largecorporateorganisationspursuingan focusedonthecustomerandthattheirdelivery
outsourcingphilosophywillseektominimise chaimelsdonotexacerbateculturaldifferences,
thenumberofsuppliersandmaximise arethosethathavethebestchanceofwinning
servicemanagement. theservicesbattle.
• Smalltomedium-sizedcompanieswilllook ProfessionalServicesProfileof
forpackagedsolutionsandpackagedservices BullintheU.K.
thatareheavilydependentuponremote
support. BullInformationSystemsLimited(Bull)isthe
U.K.subsidiaryofGroupeBull,themajor
Therefore,thesemarketsarelikelytobefor Europeancomputermanufacturerand
highlycustomisedand'shrink-wrapped'open- informationprocessingequipmentandservices
supportservices. Customisedcontractswill supplierlargelyownedbytheFrench
involveelementsofthelargeprojectculture. government. Afterveryheavylossesin1990,
Package—dserviceshavetheflavoursoftwo GroupeBulldevelopedaTransformationPlan
cultures aretheyproductsorstandard designedtorestoreittoprofitability,which
contracts? involvesmassiverestructuringandaccelerated
productdevelopment. Theimpactofthisplan
TacklingCulturalIssuesIsVital hasseenstaffnumbersintheU.K.fallfrom
4,000to1,800,with600joblossescoming
Itiseasytounderestimatetheeffectthatfailing fromtheclosureofBull'sU.K.manufacturing
totackleculttiraldifferencescanhave. One plant.
well-knownITservicescompanyintheU.K.
hastwodivisions: oneprovidingsystems Positioning
designanddevelopmentservices,andtheother
providingthird-partymaintenance. Despitea Bullispositionedasafullrangeequipmentand
markeddeclineinthecompany'sperformance servicessupplier. TheTransformationPlan
inrecentyears,ithasnotbeensuccessfulin focuseduponthreestrategicdirections:Bull's
bringingthetwodivisionstogether. Each long-standingcommitmenttodistributedand
continuestomaintainseparatesaleschannels, open-informationsystems(particularlyinthe
quitedistinctcustomerbases,andtodevelop desktopandmidrangeareas);thedevelopment
newserviceproductsinsplendidisolationfrom ofsolutionscombininghardware,softwareand
eachother. Attemptsbytherespective services;andtheestablishmentofcooperative
©1993byINPUT.Reproductionprohibited. 5
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RESEARCHBULLETINl^^^^^^^^^^^^^^^^^H^HI^^^^^^H
agreementswithothercompanies. Amajor WhenBullcannotsupplyskillsfromwithinits
initiativeisthecreationofSystemsIntegration ownresourcepools,itwillprocuretheseforthe
BusinessUnits(SIUs)inprincipalmarkets customeronanagencybasis.
(includingtheU.K.). Thesewillprovidea
focusforthecompany'snetworkandtechnical Bull'sserviceofferingsareprincipallytargeted
systemsintegrationskills. TheU.K.SIUis atitsowncustomerandprospectbase,buteach
alreadygeneratingrevenuesof$50million. lineofbusinessisfreetopursueother
opportunities,providedthattheseareprofitable
Historically,professionalservicesactivityinthe anddonotdefractfromcoreactivities.
U.K.hasbeenfragmentedacrossproductlines.
Bullhasnowadoptedathree-waymatrixin FutureDirections
whichmarket-facingsalesandmarketingunits
warheicshupbpuoyrtreedsbouyrcseersvficreomdefluinvcetriyonsatlre(aamnsd,P& uBunldlerinttheendthsrteoeddeevlievleorpyistsfrseearmvsicmeeancttiivointieeds
L)resourcegroups. Exhibit3illustratesthe above:systemsintegration,systemsoperations
principle. (facilitiesmanagement)anddesktopservices.
Itssystemsoperations(SO)capabilitythatwill
Itistheresponsibilityoftheindividualaccount besfrengthenedshortlybytheannouncementof
managertoaccessandmanageresourcesonthe apartnershipwithanexistingSOsupplier. Bull
customer'sbehalf. isalsoanalysingthegapsinitsservice
offeringsanddevelopingplanstofillthese.
BullisusingaUfe-cyclemodeltopositionits
services"upsfream"and"downsfream"in Initsproprietaryenvironments.Bullis
systemsinstallation,asshowninExhibit4 packagingitsservicesintoportfoliosof
'
1^
^
Exhibit3
ProfessionalServicesMatrix » t'
SalesandMarketing ServiceDelivery Resource
BusinessUnits Streams Units
PublicSector SystemsIntegration Consulting
PrivateSector SystemsOperations SoftwareServices
OpenSystems DesktopServices Maintenance
PC's Products
Cabling
Source: INPUT
'6 ' ©1993byINPLTT.Reproductionprohibited.
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J
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Exhibit4
ServicesModel
UpstreamServices DownstreamServices
BusinessandITConsultancy Implementation
PlanningandDesign SupportandMaintenance
Development Operations ———
1^^^^— ^^"g—HWIIIIIIIIIIIIIIPMW—
Source: INPUT
consultancy,trainingandsupportunderbrand ThisstrategyisaimedtotakeBullintothe
namessuchasGoldServiceandPlatinum positioninwhichitisperceivedasthenatural
Service. Thesepackagesallowcustomersto providerofvalue-addedservicestoitsown
drawfreelyupontheserviceuptoapreviously base. Forexample,onlyatinyproportionof
agreedceiling, hiitsopenenvhonments,by maintenanceofBullequipmentiscarriedout
contrast,Bullisofferingitsservicesonafully bythirdparties,andtheclosertothemachine
unbundledbasis. Thisisbecausethedemandis theservicestobeprovided,thestrongerBull's
muchmoreakintothatinthesmallsystems positionbecomes.
marketinwhichservicesareboughtonan'as
andwhen'orad-hocbasis. AnadditionalstrengthisBull'swillingnessto
developandretrainitsownresourcestomatch
Bullbelievesthatnetworkedenvironments shiftsincustomerdemand.
presentthebestopportunityforittodevelopits
serviceactivitiesoutsideitsowncustomerand Bycontrast.Bullfeelsexposedinareassuchas
prospectbase. Forexample,intheUnited SOinwhichusershavenottraditionallysought
StatestheSystemsIntegrationUnitistrading supportfromtheequipmentsupplier. With
independentlyunderaseparatename. abouthalfitsU.K.businessinthepublicsector.
BullisconsciousthatSOmustb—etackled
StrengthsandWeaknesses proactivelyandnotdefensively Whencecomes
thepartnershiparrangementshortlytobe
Bullseesasitskeystrengths: announced.
• Thequalityofitsrelationshipwithits Bullacknowledgesthatthe"upstream"partof
customers itsservicesmodel,andparticularlybusiness
levelconsulting,willalsoproveharderto
• Itsrecognisedtechnicalskillsinthekey crack.
technologies,forwhichitisknown
©1993byINPUT.Reproductionprohibited. 7
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Pricing Competitive Positioning
Servicesaretypicallyfixedonpriceperservice Competitionintheprofessionalservicesarea
moduleorfixedpriceperassignmentbasis, comesprincipallyfromservicessuppliersand
withservicesbecomingmorefirmlypricedthe fromthein-houseactivitiesofBull's
closertothemachinetheyget. Discountsare customers'ownsystemsteams. Competition
availableonavolumebasisorthroughservice fromotherhardwarevendorsislesscommon
packagessuchastheGoldandPlatinum becausemostareconcentratingtheirservices
schemespreviouslydiscussed. Premiumrates activitiesupontheirowncustomerbase. In
applytospecialisedservices. areassuchasmaintenance,Bullexperiences
somecompetitionfromtheindependent
Organisation maintenancecompaniesinnon-proprietary
areasandfromitsownformeremployees. Bull
Exhibit3(page6)showstheoverallmatrix feelsmostexposedtocompetitioninareassuch
structureoftheprofessionalservicesarm. Each aseducationandtraininginwhichbarriersto
oftheresource-basedlinesofbusinesshasits entryarelowandalternativesuppliersare
ownsalesandmarketingbudgetandcanbuy plentiful.
supportfromtheservicesmarketingteam.
Servicessalesarepresentlyconductedthrough Competitivenessisbasedupondifferentiation
thenormalvertically-orientedsaleschannels, byvalueandthroughfocusinguponspecific
althoughBullisconsideringdedicatedservice technologyareassuchasnetworkingandopen
salesactivityasservicesrevenuevolumes systems. Bullisalsopreparedtoshowmuch
buildup. greaterflexibilityinrespondingtocustomer
demandsandcompetitivepressures.
Customerserviceengineersarealsotaskedwith
identifyingservicesalesopportunitiesasaway Bull'sViewontheMarketplace '
ofsupportingtheirowncostbaseandwith
deliveringservicessuchasequipment Bullbelievesthatitisvitaltobeinvolvedinthe
installationandbasictraining. provisionofnetworkedsystemsandnetworking
servicesbecausecontrolofthenetworkgives
Professionalservicesrevenuesaremonitoredat muchgreaterinsightintothewholeinstallation.
thelevelofthelineofbusiness. Bullanticipatesgreatercompetitionfrom
telecomsuppliersinfuture. Therefore,Bull
Resourcing ^ expectstodeveloprealdifferentiationinthe
networkedsystemsareathroughthe
Giventhesharpreductioninpersonnelthathas developmentofremoteservicesdelivered
takenplace,recruitmentisusedonlyforthe throughthenetworksuchashelpdesks,
graduateentryprogrammeandasameanto disasterrecovery,subscriptionservicesand
acquirekeyskills. Theprincipalfocuswithin evenremoteSO.
theCustomerServicesDivisionisonretraining
stafftomeetchangedservicedemands. OpenSystemsofcoursenowunderlieBull's
wholemarketethos,anditishopedthatthis
Somesub-contractingtakesplace,and bannerwillprovidetheplatformthroughwhich
parmeringispractisedonaprojectbyproject Bull'sserviceofferingscanbetransferredtothe
basisaswellasonmajornewinitiativessuchas broadermarketplace.
Outsourcing. Twosmallacquisitionshavebeen
madeinrecentmonths.
© ©1993byINPUT.Reproductionprohibited.
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INPUT'SAssessment CompanyInformation
Bullhasexperiencedevengreaterrestructuring BULLInformationSystemsLimitedhasits
thanmanyofitscompetitors,andhasachieved headquartersatthefollowingaddress:
commensuratelyhigherproductivitygains. The
decisiontocreateprofitandlossbasedresource U.K.Headquarters
upnairttsicaulnadrltyoiunsethuendbeusnkdtloepdapnrdicUinNgImXecahraeansi,sms, GCroemaptuWteesrtHRoouasde 1: •I''lIij^'-^
meansthattheoldcross-subsidiesare Brentford
disappearingandamorecompetitiveservices MiddlesexTW89DH = -:^^'f^ ''
activityisemerging. UnitedKingdom '
Byseparatingitsservicedeliverychannels Tel: [phone]
fberommoorwenfelresxhibilpeoifntrheespreosnoduirncgest,oBtuhlelviasryaiblnegto Fax: -^44815681581 . '
demandsofitscustomers,andthroughthe ProfessionalServicesProvided ^
SystemsIntegrationUnits,Bullisaddressing
thequestionofhowtobringculturallydistinct ThefollowingisalistoftheProfessional '
hardwareandsoftwaresupportactivities ServicesBullprovides:
together.
• BusinessandITConsultancy
ThequestiontowhichBullhasyettoansweris
whetheritcanuseitsfocusonnetworkedand - BusinessandITStrategyReviews
opensystemstomoveoutofthenicheposition - EffectivenessReviews
ionfwthhiiscwhoiutlhdasbetetnhdeeldoctaoloacncdupcye.ntAranlexample -- RSeeqmuiinraermseanntdsWDoefriknsihtoiopns • ,
governmentapplicationareas,whichhave
movedintothebroadergeneralsystems • PlanningandDesign
marketplaceandthenintoservice—s. The
conflict—thatINPUTdetectshere asisoften - BidandProjectManagement
thecase isbetweenbroadeningasasystems
(butproduct-based)companyanddiversifying - StrategicUseofTechnology
asaservicescompany. Oneofthereasonswhy - RequirementsAnalysis
thisgroupofsuppliersiscurrentlyinsuch
terriblefinancialstraitsisthatthisdilemmahas - Product/Application/Database/Network
notyetbeenresolvedformanyofthecases. Design
TimeisrunningoutforvendorslikeBull. They - ITTProduction
mustdecidewhattypeofvendorthattheyare
nowandinthelongterm;otherwise,themarket - ProductEvaluation/Selection
willgoonbeingconfusedandleadtothe - ImplementationProgrammeDirection
detrimentofBull'sfortunes.
©1993byINPUT.Reproductionprohibited. 9
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RESEARCHBULLETIN
• Development ; • Alldocumentationhasthecapabilityofbeing
madeavailableon-line,andthisisclaimedto
- ProductSpecification beafirstintheX-terminalmarket.
- SolutionScoping
- Product/System/ApplicationDevelopment • DECnetsupport,whichisprovidedfreeof
- Prototyping chargeaspartofthisrelease.
-- TSeyssttienmgs&InDtoecgruamteinotnati,on INPUTcomment: DigitalistargetingtheX-
terminalsectoraspartofitsdriveintothe
• Implementation networkedintelligentbusinessmarket. Oneof
theaimsoftheVXTfamilyistoeasethe
- MigrationServices housekeepingburdenontheuserof:
- Pre-shipmentTesting
- InstallationandConfiguration • Systeminstallation
- SiteStandardsandProcedures
- Training • Termmalcustomisation • -.
• SupportandMaintenance • First-linemaintenanceoflargegroupsofX
terminals
- HardwareMaintenance
- ASpopfltiwcaarteioSnuspport—Operatingand Twhoirskiwnilglebneviarnoinnmcernetasoifnginnteeleldigienntthbeuiflldeixnigbsl.e
- "HowtoUse"Services OlivettiNotYetAbletoReport
Profits
• Operation
WhenOlivettidecidedtoascribeallthelosses
- SystemsManagement associatedwithredundanciesandclosuresto
- SystemsOperation the1991accounts,itwashopingtopreparethe
- PerformanceMonito—ringandOptimisation wayforareturntoprofitabilityin1993by
- OperationalReview ITandBusiness breakingevenin1992. However,thegroupis
beingwarnedoflargeoperatinglossesin1992
DigitalAddsSoftwareFeaturesto duetothefallingpriceofthelow-end
FitasmMiuliyt—itwhiendVoXwTX2-0Te0r0minal p'rciocmemsohdaivtey'faillteenmsbyinaibtosuptro4d0u%ctppeorrtafnolniuo.miPnC
eachofthelasttwoyears.
AnewreleaseofsoftwarefortheVXT2000
hasbeendirectedatimprovingtheeaseofuse Softwareandservicesnowaccountforabout
ofthisX-terminalfamilyinitsnatural one-thirdofOlivetti'srevenues,andsomelarge
environmentoftheenterprisenetwork. New dealshavebeenreportedinitshardware
featuresincludethefollowing: maintenanceandservicingarmin1992,for
example:
• Printqueuecapabilitythatallowsotherusers
onthenetworktoaccessaprinterattachedto • Therenewalofitscontracttoservicethe
aVXT2000. equipmentinthebranchnetworkofBarclay's
BankintheU.K.
©1993byINPUT.Reproductionprohibiled.
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