Overview
Today, field and support service organizations are being challenged to replace traditional service offerings, where technical services are provided for a fixed price, to new models where revenue is earned by delivering positive customer outcomes. The biggest problem with confronting this challenge is a short-term financial one. As the operating models are transitioned, the service organization will find itself unable to deliver on short-term financial commitments, as well as generate the investment dollars needed to enable a successful transformation.
Meanwhile, customer expectations will continue to increase, and the company’s executives will impose aggressive (sometimes irrational) cost objectives on the service organization to fulfill commitments to shareholders. This scenario leads to predictable and unsatisfactory results for all. ITCrats will identify specific actions service leaders need to take now to ensure they can make the transition from being a traditional service provider to being a differentiated and highly competitive provider delivering improved customer outcomes.
ITCrats outcome-based model will have the following fundamental characteristics:
- Business outcomes benefiting Customers rather than activities and tasks of the service providers.
- Innovation in the process to achieve the outcome — like automation.
- Use of quantifiable performance standards that are part of the agreed outcome.