Service Providers—Configure Your Service Processes for Superior Business Value

By Brett Norgaard

Over the past year, my blogging has centered on how service providers (internal, shared service, or outsourcers/managed service providers) can save money, reduce risk, innovate, accelerate time to value, enhance customer satisfaction and increase productivity in their operations. How can this be accomplished, you ask?

Once you have a configurable, secure, multi-tenant service platform in place, you can swiftly and confidently transition new clients onto the platform with standard, optional and customized services. If you have a “master library” with portfolio management functionality, each client can operate as “an experiment in productivity.” The opportunity is to identify, capture, replicate and roll-out productive innovations. Here’s a short blog entry exploring this: Service Providers Accrue Enterprise Value Benefits From all Clients.

One client/department/division/program’s invention can be another’s innovation…if the service items are portable to other instances or versions of the service platform. And, the branding and theming needs to adapt to the new client/user as well. See the blog series on “Service Item Portability“:

Innovation does not have to be daunting. Consider that it can simply be a matter of cloning one service item and registering it for another client/user. Or, you can clone a service item and link it to another process like a specific approval process, integration to an enterprise application like HR or Procurement, access to a Cloud-Based service for provisioning IT resources like computing power or storage, or access to an enterprise service like Active Directory – captured in a reusable handler.

Also, tying back to a configuration-driven approach, you can employ “sense and respond” style innovation with no fear of disrupting the underlying service platform since no programming changes are occurring. Here’s a link to a short blog entry on that topic: Service Provider Innovation, Three Easy Pieces.

In summary, here’s a “formula” to consider: CSMtP(ML/CPM) + ST + CSI = DML

Configurable, Secure, Multi-tenant Platform w/Master Library/Curator Portfolio Management + Streamlined Transitioning + Continual Service Innovation = Differentiated, Market Leadership.

Service Provider Innovation – Three Easy Pieces

Industry analysts covering service providers at Gartner and Forrester Research monitor the evolving structure of outsourcing deals on a constant basis. These analysts report an interesting trend – innovation is included as a deliverable in an increasing number of deals.

What can a service provider do to ensure a constant stream of innovations that can be delivered to their clients?

There are three related pieces to address this that service providers using Kinetic Request bundled with Kinetic Task can adopt. The first is re-purposing service items developed for other clients, demonstrations, trade conferences, RFPs, etc. In our last service provider blog post on enterprise value, we explored the enterprise value that accrues to service providers by capturing, replicating, and re-deploying useful service items. Service items configured using Kinetic Data’s architecture contain a task tree that is a visible representation of the actual service item. It is abstracted from the branding and theming so as to be re-usable and is portable (see series of blogs on Service Item Portability) so it can run in any BMC Remedy environment version 6 or greater. Inventions designed for one purpose or client can be captured, re-branded, zipped up, installed, tested, and registered for another client. Innovation number one.

Service Innovation GoalsIn a related move, an existing service item can be cloned and modified, creating a new innovation. An example of this might be to add a robust approval process for service/product requests that goes down different paths based on data collected such as dollar amounts or urgency. A well planned master library will include this approval process as a task handler that can be pulled into any service item, connected, configured, tested, zipped up, installed and registered as a new service item. Innovation number two.

Since Kinetic Data service items are made up of configuration data with no programming change to the underlying service platform source code, playing with, testing, and experimenting are encouraged and do not pose a risk. This kind of sense and respond innovation can happen reactively or proactively without the time, cost and risk of programming. Service innovators need only a business process analyst level of familiarity in order to sense and respond their way to new service items. Innovation number three.

Service innovation can come in many forms. Having a configuration driven, portable approach with an eye towards re-using service items and their component parts to modify existing service items is one easy way to achieve your service innovation goals one piece at a time.

Service Providers Accrue Enterprise Value Benefits from All Clients

By Brett Norgaard

Every branch office in an organization can be thought of as “an experiment in productivity” according to Frank Troppe, author of “Branching Out,” the definitive book on branch office success. The trick is to promote a culture of innovation and ultimately capture the best productivity gains from the branches and replicate them across the entire company. Troppe goes on to develop a formula called, Replication Rule 144X, which dollarizes the Enterprise Value of effective branch-based innovations. Here’s how it works. In a 1000 branch based organization, let’s say that branch #273 invents a way to save $100/mo. through the development of a process such as the on-boarding of new branch personnel, the streamlining of a claims process, or the coordination of requesting and fulfilling equipment, materials, and space for ongoing seminars.

Here’s a breakdown of the formula:

$100 (monthly savings) X 12 months = $1200 Annual Savings per Branch

$1200 (Annual Savings per Branch) X 1000 Locations = $1,200,000 Annual Savings for all Branches

For a public company, let’s assume a Price to Earnings (PE) Ratio of 12 (this is an average—it could be higher or lower)

$1,200,000 (Annual Savings for all Branches) X 12 (Average PE Ratio) = $14,400,000 in increased Enterprise Value

Not too bad for a $100/mo. savings in branch #273 within an organization that can recognize, capture and replicate this innovation. An automated request and fulfillment system like Kinetic Request bundled with Kinetic Task can certainly capture the process and present it for broad usage across an organization. And, there is an integration capability to connect to enterprise systems like IT, HR, Procurement, and Facilities to broaden the scope and scale of the innovations.

As exciting as this is for a single enterprise, it is particularly appealing for a service provider with multiple clients who may each have thousands of branches, stores, offices, centers, clinics, etc. What we are really talking about here is a multi-tenant service request and fulfillment platform that can be configured for each client and where the innovations—captured as processes within service items—are portable and “replicatable” between branches and clients.

To the savvy service provider innovator, Replication Rule 144X is just the start…