Association Document Number Document Type SSPA SSPA-SI-09-007 Service Insight TPSA TPSA-DV-09-009 DataView AFSMI-SI-09-004 AFSMI, SSPA, TPSA SSPA-SI-09-005 Service Insight TPSA-SI-09-005 AFSMI AFSMI-SI-9-005 Service Insight AFSMI, SSPA, TPSA SRII-AS-09-001 DataView SSPA SSPA-SI-09-003 Service Insight AFSMI-SI-09-003 AFSMI, SSPA, TPSA SSPA-SI-09-004 Service Insight TPSA-SI-09-004 TPSA TPSA-DV-09-001 DataView AFSMI AFSMI-SI-09-002 Service Insight AFSMI, TPSA AFSMI-SI-09-001 Service Insight SSPA SSPA-SI-09-001 Service Insight AFSMI-SI-09-001 AFSMI, SSPA, TPSA SSPA-SI-09-001 Service Insight TPSA-SI-09-001 TPSA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned Service Insight AFSMI, SSPA None assigned DataView AFSMI, SSPA, TPSA None assigned Service Insight AFSMI AFSMI-EI-08-002 Executive Insight AFSMI AFSMI-EI-08-003 Executive Insight TPSA TPSA-DV-08-006 DataView TPSA TPSA-DV-08-005 DataView SSPA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned Technology Review SSPA None assigned Service Insight TPSA TPSA-DV-08-003 DataView SSPA None assigned Service Insight SSPA None assigned Technology Review SSPA None assigned DataView SSPA None assigned Service Insight SSPA None assigned Executive Insight AFSMI, SSPA AFSMI-SI-08-013 Service Insight TPSA TPSA-PSI-08-005 Service Insight AFSMI None assigned Executive Insight SSPA None assigned DataView SSPA None assigned Member Spend SSPA None assigned Service Insight SSPA None assigned Recommended Service Practice TPSA TPSA-PSI-08-003 Service Insight SSPA None assigned Recommended Service Practice TPSA TPSA-PSI-08-001 Service Insight TPSA TPSA-MV-08-001 DataView AFSMI, SSPA AFSMI-SI-08-009 DataView SSPA None assigned Service Insight AFSMI None assigned Executive Insight AFSMI, SSPA AFSMI-SI-08-010 Service Insight TPSA TPSA-MV-07-004 DataView SSPA None assigned Service Insight SSPA None assigned DataView SSPA None assigned Technology Review SSPA None assigned Recommended Service Practice TPSA TPSA-PSI-07-008 Service Insight TPSA TPSA-PSI-07-007 Service Insight SSPA None assigned Recommended Service Practice TPSA TPSA-MV-07-003 DataView AFSMI, SSPA AFSMI-SI-08-015 Service Insight TPSA TPSA-PSI-07-006 Service Insight SSPA None assigned Service Insight AFSMI, SSPA AFSMI-SI-08-008 Service Insight SSPA None assigned Recommended Service Practice AFSMI, SSPA AFSMI-SI-08-016 Service Insight TPSA TPSA-PSI-07-005 Service Insight TPSA TPSA-PSI-07-004 Service Insight SSPA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned Technology Review AFSMI, SSPA AFSMI-EI-08-004 Technology Review SSPA None assigned Service Insight SSPA None assigned DataView TPSA TPSA-MV-07-001 DataView TPSA TPSA-MV-07-002 DataView SSPA None assigned DataView TPSA TPSA-PSI-07-002 Service Insight SSPA None assigned DataView AFSMI, SSPA AFSMI-SI-08-011 Service Insight SSPA None assigned DataView SSPA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned Technology Review SSPA None assigned Service Insight SSPA None assigned DataView SSPA None assigned DataView SSPA None assigned Technology Review SSPA None assigned Service Insight SSPA None assigned DataView TPSA TPSA-PO-06-001 Recommended Service Practice SSPA None assigned Technology Review SSPA None assigned Service Insight SSPA None assigned Technology Review SSPA None assigned Service Insight SSPA None assigned Service Insight SSPA None assigned DataView SSPA None assigned DataView SSPA None assigned DataView SSPA None assigned Executive Insight TPSA TPSA-PSI-06-007 Recommended Service Practice TPSA TPSA-MV-06-003 DataView TPSA TPSA-MV-06-002 DataView TPSA TPSA-PSI-06-004 Service Insight TPSA TPSA-PSI-06-005 Service Insight TPSA TPSA-PSI-06-006 Service Insight TPSA TPSA-PSI-06-002 Service Insight TPSA TPSA-PSI-06-001 Service Insight TPSA TPSA-MV-06-001 DataView TPSA TPSA-PSI-06-003 Service Insight TPSA TPSA-PSI-05-002 Service Insight TPSA TPSA-PSI-05-003 Recommended Service Practice TPSA TPSA-MV-05-001 DataView TPSA TPSA-PSI-05-001 Service Insight Category Research Title Publication Date Customer Support Driving Self-Service Success with Rich Media June-09 Professional Services The Professional Services Charter June-09 Service Strategy The Services Dashboard June-09 Field Service Field Engineers: The Service Business Stimulus Package June-09 Service Innovation The Services Innovation Gap May-09 Customer Support 2009 SSPA Member Technology Heatmap April-09 Knowledge Management Service Convergence Begins with KM April-09 Industry Data The Service 50 Q4 2008 March-09 Field Service’s Role in the Green Enterprise, How to Cut Costs Field Service and Improve Service with Green Service March-09 Professional Services Professional Development in a Downturn March-09 Customer Support Building a Business Case for Communities February-09 Customer Support, Field Service, and Professional Practices and Results January-09 Services Professional Services Trends in Professional Services Automation January-09 Customer Support Member Collaboration: Support Ratios December-08 Customer Support, Field Service, and Professional VC Funding for Service Automation Slows December-08 Services Customer Support Recognized Innovator Awards: Green Edition October-08 Customer Support, Field Service, and Professional What I Heard: Service Technology Trends October-08 Services Driving Field Service Productivity: Do You Keep Your Economic Field Service Benefits Flowing? Part 1 October-08 Driving Field Service Productivity: Do You Keep Your Economic Field Service Benefits Flowing? Part 2 October-08 Service 50 2Q 2008: Analyzing the Profitability High Industry Data September-08 Performers Benchmarking PS Compensation: TPSA 2008 Multi- Professional Services August-08 Member Study Highlights Preparing for the Future: Building a Support Customer Support July-08 Succession Plan that Works Customer Support and Field Servicing the SMB Marketplace: Discovering July-08 Service Goldmines and Landmines The ROI of Knowledge Management: Building a Customer Support July-08 Business Case for KM Investments SSPA Research Product Comparison: Remote Customer Support Support Platforms: Axeda, Bomgar, Cisco WebEx, June-08 Citrix Online, LogMeIn and NTRglobal Blurring Boundaries Complicate Tool Selection: Customer Support Emerging Trends from the 2008 SSPA Best Practices June-08 Conference PS Professional Development: Member Survey Professional Services June-08 Results The Challenges of Tech Support via Email: Linksys Customer Support Ends Email Support, Successfully Migrating Traffic to June-08 Forums SSPA Spring 2008 Recognized Innovators: Usability, Customer Support May-08 Voice of the Customer and Root Cause Analysis Customer Support 2008 SSPA Member Technology Survey May-08 Customer Support SSPA Spring 2008 Recognized Innovators May-08 Talent Management in Emerging Markets: Best Customer Support Practices for Attracting, Developing and Retaining May-08 Talent in India Exempt Status for TSEs: Navigating FLSA: Customer Support Organizations Move to Reclassify Support Techs as April-08 Non-Exempt Navigating 97-2: Setting VSOE Revenue Recognition, Professional Services April-08 Part 2 Differentiation vs. Standardization: Is Standardization Field Service Conflicting with Our USPs? April-08 2008 SSPA Member Technology Heat Map: Customer Support and Field Significant Gains in Adoption in Multiple Areas of March-08 Service Support Technology Partner 2008 Intent to Purchase Report Customer Support, Field Service, and Professional March-08 Note: Pricing for this report per the then-current Services AFSMI|SSPA|TPSA Partner Program Overview. Creating Personalized Customer Experiences: Three Customer Support Steps toward Offering Unique and Differentiating February-08 Support Interactions Assisted Support Best Practices: Which Metrics to Customer Support February-08 Track and How to Calculate Them Opportunities in Service Innovation: Where the Professional Services February-08 game will change Asking Applicants the Right Questions: SSPA Customer Support Members Share Best Practices for Support Rep January-08 Interviews Professional Services in a Downturn: Surviving Professional Services January-08 Management Expectations The TPSA Service 50 Q407: Revenue Mix and Industry Data January-08 Profitability Web Self-Service 2008 Trends: Self-Service Success Customer Support December-07 Continues to Decline; How Web 2.0 Can Help 2007 in Review--Support Technology Trends: Customer Support Customer Support Communities, Analytics December-07 Everywhere, Proactive Support Selling the Service Experience: Are We Finally Becoming Field Service Customer-Centric? December-07 Online Communities Give Voice to Customers: Customer Support Leveraging Web 2.0 to Improve Collaboration With November-07 and Among Customers TPSA Service 50 Q307: Understanding the Principles Industry Data November-07 of Growth and Profitability in IT Services Getting The Most Out Of Vendor References: Tips Customer Support for The Customer Reference Process and What October-07 Questions to Ask OmniChannel Update: Volumes Still Climbing: Customer Support Service Levels Up: Response and Resolution Times October-07 Improve for All Channels SSPA Fall 2007 Recognized Innovators: Customer Support Globalization, Interaction Quality and Proactive October-07 Support Staffing Night and Weekend Shifts: SSPA Members Customer Support October-07 Offer Their Own In-House Best Practices Professional Services Driving Global Alignment in a PS Organization October-07 The TPSA Playbook: Leveraging Analyst Relations for Professional Services October-07 Technology Professional Services Right Channeling: Interactions by Value: Providing Customer Support Unique Customer Experiences Based on Account September-07 Value Service 50 Q207: Software Companies Driving the Industry Data September-07 Up-Tick in Financial Performance Building a Business Case for Remote Support: Customer Support Improvements in Key Operational Benchmarks August-07 Create Reliable ROI Model Professional Services Sourcing Solution Architects August-07 Constructing the 360° View of the Customer: SSPA Customer Support Members Make Progress in Mastering Critical CRM July-07 Concept Improving Service with the 360° View: How CRM Customer Support Software Enables Contextual, Personalized July-07 Interactions Ten Best Practices to Increase ERMS Success: Top 10 Customer Support Tips to Maximize the Effectiveness of Email July-07 Response Management Deflecting Routine Customer Emails: Leveraging Customer Support June-07 Email Response Management Systems to Cut Costs Professional Services Calculating Utilization June-07 Essentials of Global Resource Management in Professional Services June-07 Technology Professional Services Top Knowledge Management Trends: Globalization, Customer Support KM 2.0 and Evolving Customers Top Member Issues June-07 List Preparing For Knowledge Management 2.0: Online Customer Support Communities Force Changes to Support’s KM May-07 Strategy Spring 2007 SSPA Recognized Innovators: Customer Support Analytics/Business Intelligence, Web 2.0, Offer May-07 Management Market Overview: Voice Self-Service: Leveraging Customer Support Voice Technology to Automate Customer April-07 Interactions Increasing Effectiveness of Voice Self-Service: Best Customer Support Practices to Increase Accuracy and Customer April-07 Adoption Customer Support Market Overview: Reporting and Analytics April-07 Industry Data Service 50 Trends: Q405 – Q406 April-07 Industry Data The Service 50, Q1 2007 April-07 Creating Effective In-Home Service Programs: Field Service Results from the SSPA Consumer Services Survey for March-07 Home Office, Theatre Professional Services Profiles in PS Leadership March-07 2007 Consumer Electronics Spending Trends: Customer Support Results from the SSPA Consumer Services Survey for February-07 Home Office, Theatre Analytics' Role in Value-Added Support: Leveraging Customer Support February-07 Technology to Unlock Business Intelligence Hottest In-Home Service Options and Drivers: Customer Support Results from the SSPA Consumer Services Survey for February-07 Home Office, Theatre 2007 Service and Support Technology Trends: Customer Support Consolidation Accelerates; Open Source and January-07 OnDemand Reach Critical Mass Best Practices to Increase Offer Accept Rates: Customer Support Successfully Incorporating Upsell/Cross-Sell into January-07 Inbound Support Leveraging Web 2.0 for Margin Improvements: Customer Support Effectively Incorporating Forums into Web Self- January-07 Service 2007 Service and Support Industry Trends: Support Customer Support January-07 “Crosses the Chasm” from Tactical to Strategic 2006 Year in Review: Vendor Consolidation: Customer Support Significant Acquisitions within the CRM and eService December-06 Markets in 2006 Customer Support, Field SSPA Recognized Innovators: Fall 2006: Technology, Service, and Professional December-06 Customer Experience and Optimization Innovators Services Adding Upsell/Cross-Sell to Web Self-Service: Customer Support Successful Revenue Generation Using Unassisted November-06 Channels Field Service Offer Accept Rates Nearly 100%: Field Service Extended Warranties, Additional Products and November-06 Services Prove Easy to Sell 2006 SSPA Functional “Heat Map”: Member Customer Support and Field Adoption of Service and Support Technology in 21 November-06 Service Product Areas Deriving BI from Recorded Interactions: Trends in Customer Support October-06 Quality Monitoring Highly Personalized Self-Service Microsites: Web 2.0 Customer Support Raises Consumer and Enterprise Expectations for October-06 Self-Service Satisfied, But Not Dazzled by Technology: Customer Support Preliminary Results from 2006 SSPA Support September-06 Technology Survey Professional Services Five Steps to the Annual PS Forecast September-06 Best of Breed, End-to-End Field Service: The Field Service Merging of Enterprise Software, SaaS and August-06 Outsourced Services Field Service Optimization Market Overview: Field Field Service Service Next In Line for the Customer Experience August-06 Spotlight Cut Field Service Costs by Leveraging KM: France’s Field Service Darty Increases Satisfaction and Lowers Cost with August-06 Kaidara Calculating The Cost of Multi-Vendor Support: Customer Support Support: Impacts To The Customer Experience And July-06 The Bottom Line Leveraging Technology to Battle MVS Woes: Short Customer Support and Long Term Strategies to Streamline MVS Issue July-06 Resolution 2006: The Year of the Omni-Channel: Creating Customer Support July-06 Identical Customer Experiences Across Channels Increased Complexity Takes Its Toll: Resolution Time Customer Support July-06 Averages Increase across Channels Multi-Channel Adoption Trends: eChannel Volume Customer Support July-06 Overtakes Phone in 2006 Executive Trends from Top Technology Firms: Customer Support July-06 Discussions from the 2006 SSPA CSE Summit Professional Services Project Life Cycle Gaps July-06 Industry Data The Service 50, Q2 2006 July-06 Industry Data The Service 50, Q1 2006 May-06 Intellectual Asset Management: Glossary of Terms Professional Services March-06 and Definitions Professional Services Revenue Recognition and VSOE: Part 1 March-06 Professional Services The PS Hourglass: The Changing PS Model March-06 Services Marketing Demand Generation: A Case Study January-06 Professional Services Services Engineering January-06 Industry Data The Service 50, Q4 2005 January-06 Professional Services Why PS Part 1: The Case for Professional Services January-06 Professional Services Leasing Professional Services November-05 Professional Services The Professional Services Business Model November-05 Industry Data The Service 50, Q3 2005 November-05 Services Marketing The Services Marketing Mix November-05 # Pages Overview With economic turmoil forcing companies to find creative ways to cut operational costs, many support organizations are looking for ways to migrate more assisted support interactions to Web self-service. Unfortunately, self-service success is at an all-time low, with a disappointing industry average of 40%. The reasons for this range from outdated knowledgebase technology to increasing product complexity, and until now the fix has been an expensive one. One emerging approach to 8 improving success of Web self-service involves adding rich media to the knowledgebase: sound, graphics, video, etc., to better illustrate a procedure or provide step-by-step instructions to a novice customer. In this report, learn how SSPA Member Adobe Systems added video elements to knowledgebase articles with great results: self-service success rose 9%, 68% of customers surveyed preferred video to plain text articles, and the rich media also helped cut training time for new support TPSA has devoted considerable energy to understanding the service strategy profiles of PS organizations. White papers, conference presentations, blog entries, and member benchmark assessments are all replete with uses of this incredibly useful and powerful framework. The construct is based on a simple principle, one that has been demonstrated over and over again to be accurate, which is technology product companies generally settle into one of three patterns in terms of the amount of revenue contributed by their professional services organizations: (1) product providers, with less than 10% of revenue coming from PS; (2) product extenders, with 10% to 35% of revenue coming from PS; and (3) solution providers, with 35% or greater revenue contribution from PS. Focusing on this single factor and these three patterns has helped us organize our thinking about the differing roles of PS organizations and has provided us with an 22 extremely useful lexicon that has become embedded in much of what we do. A common request we receive from AFSMI, SSPA, and TPSA members is for guidance on how to establish a “services dashboard.” A business dashboard is a graphical summary that allows managers to monitor the contribution and health of the departments in their organization. To gauge exactly how well an organization is performing, a dashboard captures and reports critical data points from each department within the organization, thus providing a snapshot of overall performance. By having the right dashboard in place, a management team can better monitor the performance of the services organization and identify areas that need attention. 17 9 In this AFSMI Service Insight we discuss the concept of customer-facing field resources as one of your greatest assets—a key to brighter outcomes in these trying times and a means to protect your precious contract revenue base. Hear ideas about strategic initiatives that use field engineers as a resource and share some thoughts about how you should approach maximizing their unique positioning with your customers. Technology companies are under enormous pressure to improve the performance of their service businesses. And this pressure could well increase over time. The simple truth is that as technology firms become more services-centric, they will be less able to meet overall company and shareholder expectations without making serious, systematic investments in services research innovation. Yet, technology companies appear to be doing anything but. Results from an industry survey focusing on services research and innovation, sponsored jointly by the Service Research & Innovation Institute (SRII), the Association for Services Management 27 International (AFSMI), the Service & Support Professionals Association (SSPA), and the Technology Professional Services Association (TPSA), demonstrate that a clear services innovation imperative is being confronted tepidly and tentatively, if at all, by most technology companies. In 2007 SSPA Research introduced the Member Technology Heat Map, showing the level of member adoption for the major categories of customer support technology. The results of the 2009 survey are in, and multiple functional categories showed increases in member adoption year over year, including community-related and quality monitoring technology. Also, a new category, Proactive Support, was added for the 2009 survey, due to the popularity of this innovative technology enabling 4 many Value-Added Support programs within member companies. Support organizations considering additional technology investments should identify areas in which peers have already adopted solutions in order to avoid losing a competitive edge due to lack of technical sophistication. Service convergence means that all areas of service and support, including professional services, technical support, field service, and customer education services, are looking for areas in which consolidating people, processes, and/or technology will improve service levels and cut operating costs. Association members and partners report that knowledge management has emerged as an initial area targeted by convergence roadmaps due to three reasons: content authored by each arm of service and support is highly applicable to other areas; minimizing the number of knowledgebases and search tools cuts expenses; and concern over losing 5 valuable IP because of economic downsizing is driving new knowledge capture initiatives. Association members should understand the benefits and challenges of consolidating knowledge management practices across service lines. With an eye toward consolidation, a thorough assessment of existing tools and processes should take place as an initial step toward the creation of a service convergence roadmap. This TPSA DataView summarizes the Q408 Service 50 results. Continuing a theme that we introduced in the previous Service 50 analysis, we again explore the “Service Stars” for lessons within their ability to achieve high financial performance despite the worsening economy. In the second part of the paper, we take an in- depth look at the primary categories in the Service 50—hardware, software, and 12 services—so that we can better understand their performance and trends between Q407 and Q408. This analysis shows, yet again, that the software companies are leading the way in the technology services sector. Technology companies are under increasing pressure to go Green. With Wall Street, environmental groups, as well as customers, stockholders, and employees all pushing Green issues with corporate executives, the trend is hard to ignore. But so 8 far, the bulk of the attention has been on manufacturing facilities, disregarding the Green impact of other areas of the company, including service and support. We know technology companies charter their professional services (PS) businesses with the critical objectives of increasing customer intimacy and securing continued product revenues. During a down economy, these strategic goals become even 12 more important. This AFSMI Service Insight discusses how building the skills of PS staff can be a key tactic for sustainable competitive advantage when capital spending is under duress and if done well, leveraging these soft skills leads to revenue and margin growth. Customer communities and discussion forums have emerged over the last two years as a popular new support channel: adoption of customer discussion forums by SSPA members grew from 36% in 2007 to 49% in 2008. Unfortunately, there has been too much emphasis by community platform vendors on the trendy aspects of social networking and insufficient messaging on the business value of an implementation. As a result, companies that are about to kickoff off a community project, or are in the early stages of an implementation, are being pressured by management to cost justify the project before proceeding. Return on investment (ROI) for communities 8 comes from both hard and soft metrics, but few guidelines to realistic results exist. Companies implementing an online community or discussion forum need to make realistic ROI estimates before continuing, and ensure all the report elements and required integrations are in place to enable accurate ROI analysis when live. Service management teams are constantly on the hunt to identify “best practices” they can implement to improve performance. Service organizations also need to benchmark current performance against relevant industry data to determine how well the organization is currently performing. These two activities, practice improvement and benchmarking results, can be powerful tools to improving the overall performance of a services organization. However, if the services management team does not have a common framework for applying both practice and results data to their organization, these activities can quickly become 16 ineffective. This Services Insight provides services management teams with a framework for effectively applying both practice and results data from the industry to drive performance improvement. This content is relevant to any organization determined to improve performance by clearly understanding current industry performance. Based on inquiries from TPSA members and briefings with TPSA partners, the push to better understand resource utilization and identify profitable (or unprofitable) projects up front is making adoption of “best of breed” professional services automation (PSA) tools a priority for more PS organizations. Multiple TPSA members report that their homegrown approaches to PSA are no longer meeting needs, especially with the economic recession driving requirements for more proactive, 6 intelligent insights. PS organizations should stay abreast of the latest developments in PSA suites to understand how technology such as real-time analytics, Web collaboration, enterprise search, and community platforms can lower operating and delivery costs and boost productivity and revenues. Everybody asks: what is the average ratio of support engineers to customers? Until now, SSPA Research has been unable to provide much guidance to this frequently asked question, but thanks to a recent member collaboration and survey, the ratio of support engineers to customers is now available, as well as the ratio of knowledge workers to support engineers. Though ratios are not an exact science, 5 and many factors such as product complexity and customer maturity influence staffing requirements, these ratios serve as a good “back of the envelope” guide when estimating staffing for new products or when merging support organizations. Venture Capital firms place bets on startup companies with infusions of cash in exchange for equity. Tracking the types of companies receiving funding is a good way to identify technology trends, but it also helps companies understand in what specific areas to expect innovative advancements in the months and years to come. Unlike a decade ago, when a large number of startups were receiving funding to create service and support automation, the list of Q3 2008 Silicon Valley VC investments show few bets being placed on solutions that impact the customer experience, with the majority of funding being put towards Green Energy and 5 Biotech solutions. However, there were significant investments made to enterprise and internet searching, Web collaboration and increased mobility, which can be leveraged to improve customer service levels. Innovation-minded companies should be familiar with hot technology areas in order to plan and prioritize where future investments should be made. For the Fall 2008 Recognized Innovator Awards, AFSMI and SSPA Research focused on a boardroom level topic: Going Green. Though the bulk of corporate Green initiatives involve cutting electric consumption in data centers, these awards recognize technology that change support processes in three categories, impacting a company’s overall carbon footprint. Virtual support center technology allows support employees to work from home, keeping commute traffic off the roads. 10 Technology to eliminate onsite visits not only cuts operating expenses, but eliminates repair vehicle traffic. Technology to streamline field service schedules maximizes the number of appointments per shift and minimizes the number of miles driven by field engineers. Though the economic recession may have dominated conversations at the 2008 Fall Conference co-hosted by AFSMI, SSPA and TPSA, tools and technology remained a hot topic. Though some belt-tightening is already evident, service and support technology’s proven and easily documented return on investment potential means that significant investments are still being made. The three high-level service and support technology trends that emerged from member discussions are B2B functional gaps in customer support suites, a lack of packaged applications that 7 meet the needs of converged service organizations, and the Greening of support. Companies evaluating technology for a 2009 purchase should understand these trends and plan for their impact early in the evaluation/selection process. The pressure to increase productivity—among customers/end-users, service managers, and administrators alike—is an ongoing challenge for companies of all sizes. The abundance of online information and enterprise applications available to employees today ultimately improves productivity, potentially providing a 23 competitive advantage in the market. But mastering the pretty much intangible business of a high-tech services organization is a complex and daunting task, often accompanied by specific government mandates. The pressure to increase productivity—among customers/end-users, service managers, and administrators alike—is an ongoing challenge for companies of all sizes. The abundance of online information and enterprise applications available to employees today ultimately improves productivity, potentially providing a 18 competitive advantage in the market. But mastering the pretty much intangible business of a high-tech services organization is a complex and daunting task, often accompanied by specific government mandates. This TPSA DataView analyzes the most profitable companies in the Q208 Service 50 with a view toward uncovering the key traits and behaviors that make them tick. This detailed analysis concludes with some compelling data about how high performers are allocating investments in Sales & Marketing and G&A. The key lesson of this analysis appears to be that highly profitable companies invest more in Sales & Marketing and far less in G&A and the average IT firm. In other words, they make strategic investments in areas they add to the top line and minimize overhead 19 in ways that help them realize high financial performance in the bottom line. TPSA recently completed its second Multi-Member Study on the subject of compensation in technology professional services. Participating member companies provided thousands of data points related to compensation and compensation policies for 12 PS positions and 15 countries. The study yielded an unprecedented view of PS compensation in general and a particularly rich understanding of the 17 drivers of variable compensation. . This TPSA DataView shares just some of the key highlights and general findings of this study. The full details of the research are available only to the study participants and subscribers at this time. Running a technical support business is all about taking action and getting things done. Although, with little time set aside for planning, we tend to focus primarily on support budgets and technology acquisitions. However, there is one future plan that—if done right—will have significant pay offs for your organization--succession planning. Simply put, succession planning is the art and science of grooming high- potential managers for top executive positions; allowing them to become an internal pool of potential executive talent. Succession planning does not just 3 happen—it is a focused, ongoing effort—but the benefits will become evident the first time you lose a VP and don’t have to go outside the company to find a replacement. It’s all about developing a formal plan that allows your brightest managers to gain the skills necessary to become VP’s and beyond. A common theme in SSPA Research has been growing technical complexity and how this Servicing the small to midsize business (SMB) market is a hot topic today for most SSPA members. These customers sit somewhere between the consumer and enterprise customer set and offer a really big opportunity for both sales and service revenues. Our friends at Warrillow & Company tell us that there are 27 million firms out there that are in need of technology products and services, so it makes sense that most companies are trying to find a way to expand their current offerings and 2 reach these buyers. Also, this segment is growing rapidly while the enterprise customers are shrinking due to consolidation. So what is the big deal with the SMB marketplace? Why is there a gold rush to acquire these small and medium customers? And most importantly, what are the challenges in supporting them? Measuring the impact of knowledge management (KM) initiatives is critical in order to understand the benefits received by the technology and to verify you are leveraging the implementation to receive the maximum return on investment (ROI). Though increasing support technician productivity is one of KM’s biggest selling points, there are other important impacts as well, including changes to interaction volumes and cost, customer satisfaction, and even product revenue and repurchase cycle.. When starting a new KM project, support organizations should benchmark their current performance against the performance of their peers and identify the 17 specific operational metrics needing improvement. Armed with this prioritized list, work with SSPA Research and your technology providers to understand which specific functionality has a proven track record of impacting these metrics, and build an implementation plan that will ensure the biggest “bang for your buck” early in the project. The remote support market, addressing functionality such as remote control and remote diagnostics, is becoming increasingly important as companies look for ways to more quickly and accurately resolve customer technology problems, as well as reduce onsite visits in the interest of both cost savings and Green initiatives. Selecting a product is not easy: as this market and its available platforms mature, the identification of core differences between vendors and products becomes more complex. . SSPA Research has surveyed the leading providers of remote support: Axeda, Bomgar, Citrix Online, LogMeIn, NTRglobal and WebEx, and found that key 14 differences remain in breadth of suite, supported platforms, and deployment models. Companies making investments in remote support technology should identify all customer platforms for which remote support access is required, understand leading-edge functionality available, and discuss deployment options with your IT department before making a final selection. As customer service technology vendors expand their suites, either through internal development or acquisition, the boundaries between formerly distinct application areas are blurring. This creates problems for companies trying to fill a specific functional hole, who end up with a ‘short list’ of vendors with wildly different core competencies, and varying abilities to ultimately solve the company’s business problem. Add to this the current trend of vendors pitching platforms, not applications, and it becomes difficult for buyers to even dig deep into functional 8 capabilities during the sales cycle. Support management must do a better job of understanding the complete suites offered by incumbent vendors before shopping for a niche solution, and create a long-term roadmap for support technology that enables purchases to be made with future plans in mind. TPSA Research surveyed member organizations in February and March 2008 regarding a variety of policies and practices related to the training and development of PS professionals. While commitment to professional development amongst TPSOs is typically rather modest, this study suggests a correlation of commitment to professional development and financial performance in the PS business. This TPSA DataView summarizes the results of the survey and offers guidance for PS organizations on the basis of the results. 12 Technical support via email is a difficult proposal. Customers rarely include all the required information in the first email, stretching even some simple problems into a long email dialogue before resolution. With email response and resolution times much higher than for the phone channel, interaction cost and customer satisfaction with email are also issues. According to SSPA Member Linksys, a division of Cisco, if email is not an effective way to handle your support interactions, stop offering it. 9 This year Linksys stopped supporting customers through email with surprising results: not only were there no customer complaints, but the majority of email volume was transitioned to an unassisted channel—discussion forums—with zero impact on phone volume. For the Spring 2008 Recognized Innovator Awards, SSPA Research selected three categories that embody the conference theme: Essential Elements of Support. Usability is at the root of many technology project successes and failures: if an application is not simple and intuitive, employees and customers will never adopt at the desired levels. Technology to enable Voice of the Customer initiatives streamlines the capture of customer feedback as well as delivering actionable customer intelligence. Root Cause Analysis should be a core part of every technical 6 support operation, making sure you aren‘t treating just the symptoms of a larger issue. Companies should stay abreast of innovations to customer support products and services and integrate these new approaches into their technology roadmap. SSPA Research has completed its second annual member survey of service and support technology, tracking budgets for new technology, as well as chronicling which functional components are finding adoption by SSPA members, which vendors’ technology is in place, and how satisfied members are with their technology purchases. According to the survey, SSPA members as a whole are spending an estimated $994M to buy, customize and maintain support technology in 2008; small and medium sized SSPA members have an average support 18 technology budget of $1.8M, compared to $10M for >$1B members. Satisfaction with existing technology is up this year, with an average score of 3.55 (on a five point scale) compared to 2.99 in 2007. Not surprisingly, Web 2.0 leads the list of planned purchases for 2008, with large and small members reporting budget for discussion forums, Wikis and Web collaboration. For the Spring 2008 Recognized Innovator Awards, SSPA Research selected three categories that embody the conference theme: Essential Elements of Support. Usability is at the root of many technology project successes and failures: if an application is not simple and intuitive, employees and customers will never adopt at the desired levels. Technology to enable Voice of the Customer initiatives streamlines the capture of customer feedback as well as delivering actionable customer intelligence. Root Cause Analysis should be a core part of every technical 6 support operation, making sure you aren’t treating just the symptoms of a larger issue. Companies should stay abreast of innovations to customer support products and services and integrate these new approaches into their technology roadmap. With a few notable exceptions, best practice talent management policies and processes from North America apply fairly well in India. With as estimated 1.2 million graduates with technical degrees being minted annually in India, the technical support industry needs better positioning to attract, manage and retain the best and brightest for Indian support operations. This paper will define the best practices identified through surveys of the top technology companies with large 43 Indian product support centers, as well as provide recommendations for improving the Talent Management Lifecycle in emerging markets. The United States Fair Labor Standards Act (FLSA) requires that employers classify jobs as either exempt or nonexempt. One of the primary differences is in overtime pay: exempt positions are excluded from overtime regulations; nonexempt employees are not. Though FLSA provides an exemption for technology workers, a 1998 ruling states that technical support roles are not eligible for this exemption. Companies with exempt support engineers performing management functions less 3 than 50% of the time should contact their human resource department and/or legal counsel and verify the validity of the exempt status. Companies out of compliance with FLSA are at risk of employee lawsuits for lost overtime wages. Ever since AICPA SOP 97-2, PS managers within software companies have been forced to arm wrestle with both internal accounting staff and external auditors regarding revenue recognition policies for service engagements that are bundled. with software and support offerings. Now, hardware companies that are bolting in value added software products are being forced to navigate 97-2. In March 2006, TPSA published an article titled Revenue Recognition Part 1 which provided an 15 overview of the revenue recognition issues faced by software companies and specifically defined the pain points in establishing VSOE for professional service offerings. This Professional Services Insight (PSI) takes the discussion to the next level. Services account for over 60 percent of the economic activities in the U.S. and the European Union. For this reason, the promotion and advancement of the services sector has become a top priority for the European region. As with any industry that pays heed to the competition, there are forces that can shape its attractiveness, its 22 competitive position, and their underlying causes. This drive for appealing distinction more or less opposes the drive for standardization caused by the need for more cost-efficiency. In 2007 SSPA Research introduced the Member Technology Heat Map, showing the level of member adoption for 21 categories of customer support technology. The results of the 2008 survey are in, and multiple functional categories showed a sharp increase in member adoption year over year. The 2008 survey also introduced three additional categories: Enterprise CRM, Wikis and Intelligent Search, and all three proved popular with member companies. Companies considering additional technology investments should identify areas in which peers have already adopted 4 solutions in order to avoid losing a competitive edge due to lack of technical sophistication. SSPA Research has completed its second annual member survey of service and support technology, tracking budgets for new technology, as well as chronicling which functional components are finding adoption by SSPA members, which vendors‟ technology is in place, and how satisfied members are with their technology purchases. According to the survey, SSPA members as a whole are spending an estimated $994M to buy, customize and maintain support technology in 2008; small and medium sized SSPA members have an average support 13 technology budget of $1.8M, compared to $10M for >$1B members. Satisfaction with existing technology is up this year, with an average score of 3.55 (on a five point scale) compared to 2.99 in 2007. Not surprisingly, Web 2.0 leads the list of planned purchases for 2008, with large and small members reporting budget for discussion forums, Wikis and Web collaboration. A “one-size-fits-all” approach to service doesn‟t recognize what is unique about each customer. Tailoring support interactions to fit the specific circumstances of an account can not only increase customer satisfaction, but will also increase revenue by giving special attention to accounts at certain sales milestones (renewals, pending deals) and by extending highly contextual upsell/cross-sell offers when appropriate. Companies hoping to introduce more elements of personalization to 5 support interactions must increase the relationship aspects of technician training, create an agent desktop making all relevant customer details easily accessible, and invest in technology for personalized offers and account guidance. Operational metrics are the foundation of a support organization. The SSPA’s Benchmark Database provides valuable insight into best practices for technical support metrics, but to take advantage of this tool, you must be accurately tracking and monitoring your own metrics. For assisted support, support organizations should track customer interaction metrics for automated call distribution, incident handling and resolution, and escalations, across phone, Web, email and Chat 8 channels. This document outlines key assisted support metrics, how to calculate them, as well as providing insight into best practice results to enable you to gauge your performance against your industry peers. Service innovation is the theme for the 2008 TPSA spring summit. For the summit, we are defining service innovation as “the embodiment, combination, and synthesis of knowledge that accelerates the creation and delivery of original, relevant, and 17 valued services.” This article provides a practical assessment of the sources for this service innovation in the next three to five years. In a recent collaboration among our SSPA SMB (small and medium sized businesses) members, the topic was, “What are „best practice‟ behavioral questions to ask when interviewing technical support representative candidates?” As always, members were willing to share ideas, specific interview questions, and in one case, an entire document on preparing for, conducting, and scoring support representative interviews. Behavioral questions help assess applicant potential in many areas key to support representative success, including problem solving skills, 6 communication skills, teamwork, cultural fit, and tolerance for stress. While identifying technical aptitude and diagnostic abilities remain important, according to members there is renewed focus on recruiting strong customer service skills and a good attitude—something difficult to instill with training. As we enter 2008, there are strong indications the U.S. economy may experience an economic slowdown. The economic slowdown could be mild or severe—TPSA will leave it to the economic experts to predict and track this. In a severe economic downturn, professional service organizations are called upon to help their companies weather the rough seas. Specifically, priorities are shifted from product adoption to customer retention and cost control. This shift places new expectations 10 on PS performance; expectations that are often challenging to meet. Hopefully, 2008 will present nothing but a mild slowdown in continued economic growth. But to be on the safe side, this article outlines the priorities for a professional services organization that will help it weather both the economic and management storms created in a downturn. This report is a companion to the TPSA Service 50 Q407 webcast. This TPSA. MarketView examines revenue mix and profitability trends among the Service 50 with a special emphasis on hardware and software companies. This analysis documents an interesting set of relationships between revenue mix and profitability and raises questions about what this mix should be. For the complete Service 50 Q407analysis, TPSA members should refer to the original webcast presentation. 11 According to the SSPA Benchmark Database, successful visits to Web self-service declined 4% in 2007 to 40%. When considering investments to improve Web self- service adoption and success, clearly just updating traditional knowledgebase and search tools is not enough. The Web 2.0 approach to self-service can eliminate some core problems of traditional knowledge management: information is available on a wider range of topics, content is more frequently and easily updated, and recommendations are vouched for by both internal and external experts. In 2008, 5 look for major providers of customer support technology to emphasize discussion forums as the hottest emerging customer channel, and expect to see signs that wikis and tagging will ultimately replace the traditional knowledgebase. Looking back over 2007, several key trends emerge related to customer service and support technology and these trends will continue to drive spending in 2008 and beyond. The three trends are: the emergence of online customer communities and discussion forums as a new and separate customer support channel; business-user targeted analytics and business intelligence reporting imbedded in enterprise applications; proactive monitoring and problem resolution for both hardware and software. Companies wanting to prove competitive differentiation based on 6 excellent support experiences should evaluate how these trends, and the related technology platforms, can be leveraged to increase service levels, drive down reactive support costs, and create new premium service offerings. This members-only publication serves to address the requirements of marketing, the strategic thinking process, the role of marketing, the measurement of the right 21 metrics, and the selling and management of services solutions. An important step toward Value-Added Support is establishing robust customer communication mechanisms: collecting timely feedback from customers, enabling collaboration with customers on key issues, and promoting dialogues between customers to create sense of community. Though most support organizations were initially interested in online communities and discussion forums as a new channel of self-service, the same Web community established for self-service can easily serve 5 double duty as a primary way to collaborate with, and encourage collaboration among, customers. Companies should evaluate existing customer collaboration processes and identify practices that can be recreated, and in most cases improved, by leveraging Web 2.0. This report is a companion to the TPSA Service 50 Q307 webcast. This TPSA MarketView examines growth and profitability trends among the largest IT services providers and concludes with insights aimed at helping professional services organizations understand the “natural” limitations and advantages for companies with mixed portfolios. For the complete Service 50 Q307 analysis, TPSA members 12 should refer to the original webcast presentation. When shopping for customer service or customer relationship management (CRM) software, talking to each vendor’s customer references is a critical step in making the right decision. During the sales cycle, it is very easy to get drawn into marketing messages and swayed by demonstrations of prototype products, customized for each demonstration. Customer references are the only way to determine what functionality actually exists, how easy it is to implement, how the vendor supports 3 its customer base and how well it manages the overall relationship. This document outlines how to approach references and questions to ask when meeting with vendor references. In 2006 the SSPA published a report on the importance on an OmniChannel view of service. As more customers adopt non-phone channels, inconsistencies between service levels across phone, email and Web are problematic: customers preferring non-phone channels feel penalized, and customers are rewarded for using the most expensive channel: phone. In this report, an update on incident volumes, multi- channel adoption and service levels is provided. According to SSPA Benchmark 7 metrics, incident volumes continue to climb at an alarming rate, but member companies focusing on productivity enhancing tools and processes are making progress: service levels for all channels improved in 2007. For the Fall 2007 Recognized Innovator Awards, SSPA Research selected three technology categories integral to Value-Added Support. Globalization allows companies to effectively meet the needs of customers around the world. 6 Monitoring and improving Interaction Quality, always a concern for support centers, is becoming more complex with increased adoption of non-phone channels and Web 2.0 communities. A core concept of Value-Added Support, Proactive Support, is a goal of most technology companies, yet many service organizations have had to build their own technology as few vendors exist specializing in this emerging Customer support personnel are often required to handle problems after normal business hours and may be required to carry a pager or to be the designated on-call person for a period of time. Support employees often view these responsibilities as the least attractive part of their jobs, and in competitive job markets, shift work or after-hours support will complicate employee recruitment. One solution is to give bonuses for after-hours work, but there are legal issues involved with such a decision. Before making commitments to employees or making any changes to 6 existing policies or to programs for after-hours compensation, work with your human resources (HR) professional to verify that no corporate, state, or federal guidelines conflict with the new program. This report also includes feedback from multiple SSPA members on how their companies approach the sometimes thorny issue of after-hours support. The third summit TPSA hosted was on the topic of the annual PS planning process. At the summit, attendees indicated that one of the most difficult aspects of driving a global PS business plan is negotiating that plan with each of the individual geographies within the PS organization. In a following PSE Roundtable, members 22 discussed tactics to better align the corporate and geographic aspects of a PS organization. This PS Insight itemizes seven key metaplays management teams can use to better align the PS organization on a global basis. Many PS organizations either under-utilize or eschew industry analyst relations (IAR) altogether. This is driven in part by the persistence of misconceptions of what IAR is and is not and what is required to achieve valuable results. TPSA believes that a focused, targeted IAR program should be beneficial for most TPS organizations. This TPSA PS Insight outlines the basics of the IAR “play” using the TPSA Playbook 22 structure that has formed the basis for previous PS Insight research documents. Any time you have a hold queue, someone is at the end of it. Ideally, the customer at the end of the queue should not be your most highly valued account. Right Channeling means routing and handling inbound interactions differently depending on paid support tier, churn propensity, or actual or perceived account value. A long time ‘best practice’ in the communications industry, more technology companies are adding intelligence to the routing of inbound interactions to maximize profitable relationships. Companies should look for easy ways to route interactions based on 6 existing tiers or value metrics, and as more complex profitability metrics are available down the road, consider more robust solutions to further differentiate the experience for customers of all value levels. This report is a companion to the TPSA Service 50 Q207 webcast. Based on a comparison of Q206 and Q207 data, this TPSA MarketView examines key growth trends in the services market and concludes with insights aimed at helping professional services organizations understand the opportunities inherent in the 10 current IT services market. No company today will approve expenditures for new service and support technology without an understanding of the return on investment (ROI) for the project. Luckily, companies with strong metrics programs in place will find building the business case for productivity-enhancing software a straightforward process. Remote support platforms offer a compelling ROI story, with impacts to multiple core metrics such as first contact resolution, incident handling time and customer 15 satisfaction. Companies evaluating a remote support purchase should evaluate customer case studies to arrive at metric improvement goals, and then calculate the cost savings of those improvements. Armed with this information, the RFP process can commence with a realistic budget in mind. Solution architects have become the critical path to a PS organization’s ability to successfully scale the business. This TPSA PS Insight thoroughly defines the role. of the solution architect, discusses the factors to consider when sourcing and 18 developing solution architects, and presents several industry benchmarks related to this increasingly important role. Creating the 360° View of the customer is one of the basic tenants of CRM, and one of the hardest to achieve. With customer data stored in multiple systems and databases across the enterprise, consolidating sources to create a single view of the customer remains a stretch goal for some members. Progress is being made, however, and according to a recent member poll, 18% of member companies have 5 attained a single customer master; an additional 41% have five or fewer customer databases. This report provides a basic overview of the 360° View, and looks at member adoption and planned 2007 spending for this core CRM concept. SSPA members continue to make major investments in CRM software, but according to discussions at SSPA conferences, getting value from CRM is not a slam dunk. While CRM projects tend to rightly focus on process in the beginning, the underlying value proposition of CRM is collecting a 360° View of the customer and leveraging that view to provide highly personalized and profitable interactions. 6 Service organizations that have completed CRM implementations should now examine how to strengthen the 360° View, prioritize additional data sources, and leverage this information to improve productivity, accuracy and revenue. SSPA Benchmark data shows that customer email volume has increased while the service levels of email incidents have declined. Email Response Management Systems, currently used by 45% of SSPA >$1B members, can improve service levels for customer emails by auto-responding to repetitive questions, auto-suggesting replies to agents to streamline email processing, and auto-routing inbound emails to 8 the correct person or group, eliminating manual reviews and routing. In this document, SSPA Research recommends 10 Best Practices to maximize the effectiveness of an ERMS, increasing the ROI for a new or existing ERMS implementation. The average monthly email volume for SSPA members has increased 101% in the last three years, showing that customers have adopted the email channel in a big way. Email Response Management Systems (ERMSs) have been around for over a decade, and while adoption is high for consumer contact centers, in the B2B support world, emails are usually processed manually: less than half of >$1B SSPA members have automated email response software. With improved intelligence, today’s ERMSs have higher accuracy and more flexibility than early versions, 8 allowing even technical support centers to automate the handling of a slice of issues. Members without an ERMS should investigate what today’s ERMS classification engines are capable of, and consider a trial to test the technology for a segment of your customer emails. This PS Insight provides the TPSA recommendation for the most effective way to calculate utilization across multiple geographies. This PS Insight also introduces a recommended practice for calculating utilization. Finally, this paper reviews existing 10 TPSA benchmark data regarding utilization targets and services mix. During the past decade, the growth of services as part of the revenue and profit mix of technology companies has changed how these companies must think about managing human capital. Getting the right person in the right place at the right time, effectively and efficiently, has become mission critical. To help technology companies better understand how to deal with the rapidly changing dynamics of Global Resource Management (GRM), RTM Consulting and TPSA have collaborated 19 to create a framework to focus this dialogue. This white paper introduces the many facets of GRM and how to effectively perform GRM in a rapidly transforming marketplace. Knowledge management (KM) is always a hot topic with SSPA members, and the recent SSPA Best Practices Conference was no exception, with a KM-focused track and standing-room only sessions. Based on member and partner conversations at the event, trends and top issues for KM in 2007 include how to effectively provide content for global customers; how Web 2.0 and KM 2.0 are forcing changes to traditional knowledge base strategies; and in a related trend, how to exceed 9 requirements from tomorrow’s more demanding and Web 2.0 savvy customers. With Web 2.0 as a disruptive influence, companies must look beyond long held attitudes about knowledgebases and customers to create a KM plan addressing changes to people, process and technology. Capturing, publishing and maintaining stores of tacit knowledge are ongoing challenges for support organizations, and Knowledge Management success continues to thwart many SSPA Members. And the challenges are about to increase. Web 2.0, with its burgeoning online communities of both experts and posers, will upset the KM apple cart for many companies, with reams of content offered to any customer or partner with a web connection. How can these new 5 content sources be mined, and the experts tapped, to improve service to customers? Companies should begin tracking Web 2.0 activity for your products and services, identifying community experts, and consider technology elements such as intelligent searching and Web collaboration that are heralding the next big ‘wave’ of knowledge management. For the Spring 2007 Recognized Innovator Awards, SSPA Research selected three technology categories integral to Value-Added Support. Analytics/Business Intelligence allows companies to leverage existing stores of customer interaction data to identify product and service trends. Web 2.0 opens up new channels for support, and offers tools for creating and sustaining customer loyalty. Offer 6 management enables intelligent upsell and cross-sell for both B2B and B2C environments. Companies should stay abreast of innovations to customer support products and services and integrate these new approaches into their technology roadmap. While customer adoption of non-phone channels (Web, email, chat) continues to grow, phone calls aren’t going away, and in fact volume via the phone channel increases each year. Offering voice self-service allows customers to continue to embrace this popular avenue for support, while deflecting live agent interactions. However, most companies have not evolved further than “press or say one” for voice self-service, forcing customers through universally disliked IVR trees. Newer voice applications enable a much larger range of customer issues to be solved via 10 self-service, including technical support. Companies should take a look at additional voice applications to layer on top of existing IVRs to not only deflect more live agent interactions, but to create a stellar customer experience with voice self-service. While customer adoption of non-phone channels continues to climb, more incidents are opened, on average, by phone than any other channel. Though support organizations are embracing next-generation Web self-service, most companies have yet to evolve their voice self-service systems beyond basic IVR menus. Surveys show customers prefer using automated voice systems to waiting for an agent, yet satisfaction with many voice systems remains low. Increasing the effectiveness of 6 voice self-service, through better testing, ongoing maintenance, and adoption of new voice applications, can allow a larger percentage of issues to be automated, further decreasing live agent interactions. Thanks to the CRM boom of the late 90s, companies have spent 10 years creating huge stores of customer interaction data. But according to SSPA members, most support organizations have yet to unlock the business intelligence contained therein. The tide is turning, however, as more service and support application vendors beef up their reporting modules with additional analytic capabilities to help companies identify actionable trends and perform more root cause analysis. This report will focus on what capabilities you should expect “out of box” in best of 13 breed support software suites. Before adding on a 3rd party analytics application, companies should evaluate the business intelligence capabilities and roadmaps of their existing vendors, and buy pre-integrated modules with packaged reports when possible. This report is a companion to the TPSA Service 50 analyses and webcasts. Focusing on a comparison of Q405 and Q406 data, this TPSA MarketView investigates key growth trends in the global IT services market. The report places special emphasis on the performance of the Top 10 services providers and concludes with insights aimed at helping professional services organizations understand the opportunities inherent in the current IT services market. 12 In April of 2007, TPSA took a snapshot of the publicly reported financial data for The Service 50. TPSA then hosted a public Webcast, on May 3rd, to review The Service 50 and discuss key metrics TPSA tracks and trends from this public financial data. This document summarizes the results of this snapshot. 19 The consumer electronics industry has been watching closely as retailers launch in- home consumer services with hopes of capturing marketshare for home theatre and home office purchases as well as create a new source for service revenues. In our first Consumer Home Services Survey, the SSPA surveyed 1,000 consumers about their in-home service attitudes and experiences, and we have identified price 7 points and technician profiles preferred by consumers planning electronics purchases in 2007. Companies considering a play for in-home services should be cautious about launching programs with unattractive pricing or field technicians whose pedigree is a mismatch with consumer expectations. This PS Insight discusses the changing requirements for Professional Services Executives within product companies and the fundamental differences between professional service executives that serve as general managers and those who simply steward the business. 13 In our first Consumer Home Services Survey, the SSPA surveyed 1,000 consumers about past and future home office and home theatre purchases, purchase influencers, attach rates, and adoption of in-home services. Spending patterns emerged, with consumers spending more on home theatre than office; in-person purchases much preferred over online, and “big box” retailers emerging as the retail 12 location of choice. This report details these spending patterns, examines purchase location influencers, and provides insight into buyer profiles for home office and home theatre in 2007. Companies interested in moving toward the Value-Added Support model have several goals in mind, including delivering exceptional multi-channel customer experiences and creating new revenue opportunities. But a crucial first step for many companies is changing the perception of the support organization from break- fix experts to strategic customer advocates, with their pulse on the business needs of customers. Analytics can play a large role in delivering customer business 6 intelligence to other departments within the company, particularly sales and marketing. Support management wanting more recognition for their strategic impact to long term customer value should invest in analytics to unlock business intelligence from captured customer interactions. As technical complexity grows, consumers are increasingly impacted. Particularly with the merging of home office and home theatre into a single multi-media installation, inhome service options increasingly prove a lucrative business for retailers and consumer electronics firms. In our first Consumer Home Services Survey, the SSPA surveyed 1,000 consumers about their in-home service attitudes and experiences, and has identified the top service options for both home office and home theatre, as well as barriers and influencers for in-home service. To 7 increase in-home service revenues, as well as maximize lucrative upsell opportunities, consumer companies should stop downplaying complexity, instead pushing ‘best of breed’ technology and how to maximize value with professional installation. Whether you are embarking on a project to evaluate and select technology, curious what options may be available to address a new business problem, or wondering if there is a better alternative for one of your existing systems, it is important for customer service professionals to stay current on the technology trends impacting our industry. SSPA Research predicts the 3 biggest trends for service and support 5 technology and vendors in 2007: vendor consolidation accelerates, OnDemand becomes preferred deployment options, and Open Source customer service software finds adoption at the enterprise level. With more companies embracing the concept of Value Added Support, offer management is an increasingly hot topic as revenue generation becomes a goal for more inbound contact and technical support centers. Extending upsell and cross- sell offers to consumer customers is now a common practice, and although enterprise support has a number of issues making offer extensions problematic, there are clearly opportunities for technical support agents to increase customer 5 wallet share as part of a support interaction. This report will highlight best practices discovered while researching successful selling for inbound support in the consumer world, and make recommendations for how this can apply to the B2B world with excellent results. Welcome to a Web 2.0 world, in which we are more connected, more available, and can more easily find and distribute information than ever before. While consumer sites such as MySpace and LinkedIn receive most of the visibility when Web 2.0 is discussed, the increased appetite for social networking is impacting technical support, with moderated forums finding adoption in both B2B and B2C web self- service implementations. Online communities offer the potential for streamlining 5 support operations and deflecting live agent interaction by allowing customers to solve each other’s problems, though there are risks involved and building a successful, cohesive community is not a slam dunk. In 2007, Value Added Support, i.e., strategically partnering with development, marketing and sales to increase revenues and drive product improvements, will enable customer service and technical support operations to claim their rightful place at the table for more discussions and decisions impacting customers. However, as support’s strategic influence within companies increases, service 7 organizations will lose ground in calling the shots on service interactions to ever- more demanding customers, who empowered by Web 2.0 infrastructure and applications, become a force to be reckoned with as never before. While there were no mergers or acquisitions within the service and support industry in 2006 on the scale of Oracle’s 2005 purchase of Siebel, there were a number of significant transactions that illustrate some key trends within the space. Standalone CRM at the enterprise level is no longer a viable business, and outside of Oracle and SAP, the only significant growth in CRM is centered on Software as a Service (SaaS) 4 vendors. Functionality paid a crucial role in acquisitions in 2006, with vendors buying analytics in order to offer better business intelligence, and one key transaction in which the leading provider of a new customer channel was purchased, giving one eService vendor an edge. Technological innovation is needed and expected in order to meet the evolving requirements of customers as well as the ongoing pressure to service customers as inexpensively as possible, and SSPA Research is dedicated to highlighting innovative software and services that help companies meet these challenges. The SSPA launched the first Recognized Innovator Awards at our Fall 2006 conference, held last month in Washington D.C., presenting awards and guiding tours of the 9 Technology Showcase to highlight partners who excel in providing innovative solutions in three categories: Technology, Customer Experience, and Optimization. Companies wanting to take service and support operations to a higher level of sophistication should evaluate these solutions and see if they belong on your technology roadmap. Inbound contact center and technical support agents are not the only avenue for generating incremental revenue from customer service issues: customers performing self-service via the Web can also be presented with upsell and cross-sell offers. The technological approach to automating online offer presentation ranges from manually created ‘also see’ links on knowledgebase content to fully automated offer management systems that suggest offers to customers based on 5 their history and Web browsing habits. Even B2B companies are finding that upsell works when enterprise customers are shopping for new products, and adding offers to technical support self-service should be the next logical step. While technical support centers remain slow to adopt upsell and cross-sell for inbound customer calls, according to data from the SSPA’s Consumer Home Services Survey field service agents are having great success selling additional products, services and extended warranties to customers while onsite for home theatre or home office installations. While the examples are consumer, not enterprise, focused, B2B service organizations should look to their consumer counterparts for 7 guidance, and recognize that revenue generation from inbound technical support calls is not only possible, offer extensions are perceived by customers as part of the service process when the offers are in context of the customer interaction. The results of the SSPA 2006 Member Technology Survey are in, showing member adoption of technology in 21 functional areas. Deciding where to invest in new service and support technology is not easy, with many types of products all claiming to cut costs through deflecting interactions from live agents and increasing agent productivity. Armed with this new information, members can benchmark 10 themselves against the SSPA membership to identify product areas where member adoption is high, suggesting if your company is not leveraging this technology, you may be missing an opportunity to further streamline and automate support processes. Growing from roots in high volume consumer call centers, QM (quality monitoring) software is employed to monitor multi-channel interactions, agent usage of technology, and deliver training to agent desktops in multiple industries. But increasingly, QM technology is delivering much more strategic results, including the identification of business intelligence (BI) about customers, products and competitors, as well as performing root cause analysis and pinpointing process 8 logjams across the enterprise. With explosive growth of home based agents, QM can also play a key role in tracking skills and performance of remote agents, with two-way streaming video monitoring on the horizon. The focus of self-service is shifting from tactical (call deflection, increasing agent productivity) to strategic (improving the customer experience and increasing wallet share), and innovative vendors are addressing this shift with functionality to create highly personalized self-service “microsites”. Through the lens of the customer experience, the old eService paradigm of knowledgebase and search is not enough. Customers are expecting—and soon will be demanding—more individualized self- 8 service options. Companies should evaluate these next-generation products to provide highly personalized and targeted self-service experiences for B2B and B2C customers as a way of establishing further competitive differentiation, and to mine online browsing for additional revenue. SSPA Research has completed its 2006 technology survey, with responses from 126 companies. 880 individual product ratings across 21 categories have been tabulated, and initial results show that with an overall satisfaction rating of 3.03, on a 5 point scale, companies are satisfied with their service and support technology, but not highly satisfied. In this report, the SSPA examines the mix of packaged and home grown software, and satisfaction with technology at the category and product 8 module level. Companies continuing to rely on legacy systems in product areas ripe with innovation should review packaged technology options to verify ‘home grown’ products still offer adequate functional coverage and no opportunities for increased productivity or cost cutting are being ignored. This paper outlines a five-step process PS organizations can follow to help determine what revenue growth is possible for the PS organization in the upcoming year. 6 In recent briefings with enterprise software vendors, a trend has emerged: ISVs are offering more than ‘best of breed’ software; they are partnering with outsourced service providers to create a complete end-to-end solution. This is particularly true with ServicePower’s new division, called Field Service Solutions (FSS), which leverages the vendor’s field service automation software, combined with innovative field equipment (rugged laptops, GPS enabled trucks), and a network of field service agents trained and certified to install and repair equipment for ServicePower’s customers. According to early adopter GE, the benefits are excellent: not only have 6 service levels and customer satisfaction risen sharply for GE’s appliance repair business, but the ServicePower project achieved 100% ROI in one year—2 years earlier than expected. Companies shopping for support software, whether for the field, the contact center or the tech support team, should investigate blended offerings and consider a pilot for an end-to-end solution. While technical support, contact centers and Web self-service continue to receive most of the attention when improving the customer experience is discussed, a key service channel, field service, is now finding itself in the customer experience spotlight, often for the first time. Driving costs out of field service operations continues to be the primary goal for most organizations, and more companies are realizing that field agents, with their face to face interactions with customers, have 13 a major impact on customer satisfaction and incremental revenue. In this report, the key processes of field service operations will be outlined, along with innovative technology components enabling next generation field service optimization. Cutting the operating expenses for a field service organization begins before a technician is ever dispatched. Darty, a $2.75B electronics retailer in France, has eliminated many field service visits, and ensured the required visits are fast and efficient, by leveraging knowledge management (KM) and diagnostic tools in the technical support center to correctly diagnose customer problems, solve the 6 problem on the phone if possible, and dispatch the right field tech with the right part when necessary. With a rapid, phased implementation covering 20,000+ products, Darty’s case study offers important lessons in field service optimization. In conversations with customer service executives and frontline support managers, multi-vendor support (MVS) is often at the top of the list of ongoing challenges due to the high cost of supporting these issues effectively. More strategically, the way an MVS issue is handled has a critical effect on the customer experience, impacting long term customer value and wallet share. Treating issues like “hot potatoes,” such as rewarding agents for deflecting issues to another vendor, may cut support costs but ultimately impacts the ability to keep this consumer or business user as a 9 customer: the first priority should be solving the customer’s problem as quickly as possible. The SSPA recommends that companies begin calculating the actual cost of MVS issues, and include this cost in the budget for the technology partnership, not as a core operating cost for the support center. According to SSPA Benchmark data, nearly one third of incidents today involve products from another vendor, and these multi-vendor support (MVS) issues take, on average, 4 times longer to solve. Yet leading eService vendors report that rarely, if ever, do customers or prospects mention MVS challenges as a business problem to be solved with innovative eService technology. While ultimately MVS is best addressed with better supportability and interoperability, and stronger cooperation 6 between technology partners, service and support management should evaluate their current eService platform in light of MVS problem resolution, and determine where existing systems could be modified to better serve MVS challenges, and where incremental technology investments are warranted to streamline MVS resolution in the future. SSPA Benchmark data shows that the monthly average of incidents created via electronic channels (email, chat, web self-service) has caught up to phone incidents, and we expect this ‘eChannel’ volume to bypass phone by the end of 2006. However, the data shows that service levels are consistently lower for these newer channels, which are becoming the preferred channel for more customers. This high level of customer adoption for eChannels means that the technology industry must 9 step up support for non-phone channels to create an “omni-channel,” meaning an identical service experience is delivered for all channels offered to the customer. As this adoption curve continues, companies without an omni-channel strategy risk losing customers to more eChannel savvy competitors. The increased complexity of technology has created huge volumes of service interactions—with customers whose patience is low and frustration is high. Companies are continually investing in technology to streamline problem diagnosis and resolution to help address this tsunami of phone calls, emails and Web chats. Unfortunately, SSPA Benchmark data shows that service levels for both phone and electronic channels have declined in the last few years, meaning current processes and systems are not keeping up with the dramatic volume increases. Companies 6 should audit their existing service and support organizational structure, policies and processes, as well as service and eService technology, to break this cycle and begin moving service levels where they belong: up and to the right. The technology services and support industry reached a critical step in customer interaction channel evolution this year, with the monthly average of electronic channel (email, chat, web self-service) volume catching up to phone volume for the first time. The SSPA expects this shift toward electronic channels, or eChannels (email, chat, web self-service) to continue, with eChannel volume bypassing phone by the end of the year. Total interaction volume, however, has increased 8 dramatically in the last 3 years, and though phone calls represent a smaller percentage of total interactions, phone volume increases persist. Companies must continue to invest in eservice technologies to meet the evolving needs of customers, as well as step up marketing efforts to encourage further adoption of unassisted channels. At the recent SSPA Chief Services Executive Summit held in New York, an invitation only gathering of CSEs from HP, IBM, Microsoft, Oracle, Cisco, BEA, EMC, SAP, Circuit City, Xerox, and other leading companies, the topic of discussion was the role of services in the technology industry of the future. Much of the conversations fell into two broad categories. First, how to best demonstrate the value of support to customers in order to improve service and satisfaction, as well as increase service revenues; and second, where will innovation occur in service and support 9 technology, and how can it be used to both increase service levels as well as drive down costs. In this article, the SSPA outlines the concerns, ideas and suggestions from the executive panel, as well as provides some recommendations on how to leverage this information in future-proofing your service and support organization. The TPSA Industry Task Force on Intellectual Asset Management (IAM) outlined and discussed specific challenges faced by PS organizations during a typical project lifecycle. This article documents these common challenges and captures some of the techniques employed to minimize the execution gaps in the project life cycle. 10 In July of 2006, TPSA took its fourth official snapshot of the publicly reported financial data for The Service 50. TPSA then hosted a public Webcast, on August 3rd, to review The Service 50 and discuss key metrics TPSA tracks and trends from this public financial data. This document summarizes the results of this fourth snapshot. 8 In April of 2006, TPSA took its third official snapshot of the publicly reported financial data for The Service 50. TPSA then hosted a public Webcast, on April 27th, to review The Service 50 and discuss key metrics TPSA tracks and trends from this public financial data. This document summarizes the results of this third snapshot. 8 This article presents a list of common terms and definitions used to enable the working dialogue for the TPSA Industry Task Force on Intellectual Asset Management (IAM). These common terms and definitions will then be used as we 3 move forward to develop a framework and best practices for IAM. As more companies make product selections based in part on the Green practices of their vendors, support organizations should not only embrace these technologies to cut gas consumption and auto emissions, they should also publicize their efforts and 7 results to show that Green Support means more than going “lights out” in the data center. The literature on classic professional services organizations focuses on the success and optimization of the PS pyramid, in which veteran partners sit at the top of a pyramid of junior resources. Unfortunately, this classic approach to building a professional services practice is not well-suited to the technology professional 5 services (TPS) organizations of the 21st century. This article reviews the deficiencies in the pyramid model and introduces a new model to consider when building and scaling a TPS organization. For a PS Organization, an effective marketing mix will address four key marketing activities: core content creation, market analysis, awareness, and demand generation. This article takes a closer look at the area of demand generation. The article is based on the services marketing work conducted at a Fortune 50 company 6 that was launching a services business within its dominant product organization. The experiences of this company provide an insightful example of effective demand generation techniques. This article introduces the Services Engineering function by defining its objectives, outlining key roles of the department, and listing metrics that can be used to evaluate the effectiveness of the function. The article also discusses why the 5 function is critical to the long term success of a technology professional services organization. In January of 2006, TPSA took its second official snapshot of the publicly reported financial data for The Service 50. TPSA then hosted a public webcast to introduce The Service 50 and discuss key metrics TPSA will be tracking and trending from this public financial data. This document summarizes the results of the second snapshot. 8 This is the first of a two-part series on why technology companies are continuing to invest in professional services capabilities. In this first part, we start by discussing how professional service executives currently defend their businesses. We then discuss the brutal impact that professional services revenues have on technology 6 companies. Despite the negative effects of PS revenues, technology companies continue to add PS capabilities and revenues. We discuss why this shift continues. The article ends with a summary of the forces currently pulling the PS discussion in three distinct directions, and how TPSA intends to help align these currently conflicting forces. One of the most common challenges facing technology services executives is managing profitable growth. How should the company scale its professional services capabilities? Should the company build professional services (PS) organically? Should partners be used instead? What about acquisition? Why not “lease” an entire PS organization? This article explores this new option by reviewing EMC’s 5 partnership with Accenture to incubate a consulting business unit. As the reader will learn, there remain many unknowns regarding the success of this innovative alternative. This document provides an overview of the importance of defining a financial business model for the PS organization. This document also details how TPSA will define the specific line items of the PS business model for benchmarking purposes. 5 In October of 2005, TPSA took its first official snapshot of the publicly reported financial data for The Service 50. TPSA then hosted a public webcast to introduce The Service 50 and discuss key metrics TPSA will be tracking and trending from this 7 public financial data. This document summarizes the results of this first snapshot. For a PS Organization, an effective marketing mix will address four key marketing activities: core content creation, market analysis, awareness, and demand generation. This article defines all four of these marketing activities and provides an example services marketing budget that achieves a balance between tactical 5 content creation and strategic demand generation. Graphics included Figure 1: Self-Service Success Crisis. Figure 2: “How do I?” Questions Represent Largest Percent of Issues. Figure 3: Breakdown of Video Creation Time. Figure 4: Self-Service Captivate Video for Dreamweaver. Figure 1: Charter Category--Q108-Q209. Figure 2: PS Charter Priorities--Q108-Q209 Trend. Figure 3: Revenue Mix by TPS Charter, Q209. Figure 4: PS in the Revenue Mix by PS Charter, Q209. Figure 5: PS Business Model Comparison by Charter, Q209. Figure 6: Below the Line Investments (as a Percent of Total Revenue) by Charter, Q209. Figure 7: Percent of Companies with an Overlay PS Salesforce. Figure 8: Target Billable Utilization for Delivery Staff. Figure 9: Percent of Delivery Staff Subcontracted. Figure 10: What percent of your implementation services do you outsource? Figure 11: Percent of Companies wiht a Dedicated PS Engineering Function. Figure 12: Percent of Companies with a Dedicated PS Marketing Function. Figure 13: Percent of Companies with a PSA System. Figure 14: How do you manage the pool of resources available for PS delivery? Figure 15: Do you measure the broader economic impact of PS for any metrics? Figure 1: Framework for Practices and Results. Figure 2: Results Zones. Figure 3: Practice Zones. Figure 4: Practice Priorities. Table 1: Categories for Baseline Performance. Figure 5: Core Gauges on the Services Dashboard. Figure 6: Core Services Dashboard. Figure 7: Extended Gauges for the Services Dashboard. Figure 8: The Extended Services Dashboard. Figure 1: The Cost-to-Serve Continuum. Figure 2: Value-Added Professional Services Dashboard. Table 1: Field Engineer Contact with Customers. Figure 1: Services as a Percentage of Total Revenue--Q108 to Q109 Trend. Figure 2: Organization Type Distribution. Figure 3: Product Type Distribution. Figure 4: Company Size Distribution. Figure 5: Distribution of Respondent Company Revenue by LOB. Figure 6: Types of Innovation. Figure 7: Do you consider investing in services innovation as one of your dominant business strategies? Figure 8: Do you have a formal services strategy and/or SR&I roadmap? Figure 9: Formal Services Strategy and/or SR&I Roadmap. Figure 10: Research and Innovation Investment Overview. Figure 11: Distribution of Research and Innovation Investment--Services vs. Product. Figure 12: Distribution of Respondents by Research and Innovation Investment Category. Figure 13: Distribution of Investment in Innovation by Focus and Category. Figure 14: Percent Investment in Services Research and Innovation by Category. Table 1: Parameter/Practice. Figure 15: Key SR&I Practices-- Service-Dominant Companies. Figure 16: Respondent (Aided) Awareness of Services Innovation Related Organizations and Concepts. Figure 17: With what frequency do you get information on services science, education, research, or innovation. Figure 18: How many times has your service organization engaged with an academic institution to conduct service research? Figure 19: How many academic institutions does your company engage with . . 1: 2009 Functional Heat Map. Figure 2: Proactive Support Adoption by Company Figure .? Figure 20: Which challenges to services research and innovation exist within your Size. Figure 1: Multiple Content Sources Required for Success. Table 1: Q408 Service 50 Top 10 by Revenue. Table 2: Q408 Serviced 50 Top 10 Service Stars. Figure 1: Services Companies. Figure 2: Hardware Companies. Figure 3: Software Companies. Figure 4: Summing It Up. Figure 5: Q408 Key Average Performance Results by Company Type. Figure 6: Q408 Key Performance Results by Company Type as Compared to TPSA Service 50 Averages. Figure 1: Cost of a Field Service Visit. Figure 2: Average Field Service Visits per Day and Drive Time to Customer Site. Figure 1: Impact Analysis. Figure 2: The Stages of Group Change. Figure 1: Sub-Contracting in Imbedded PS. Figure 2: Results Zones Maps Red, Yellow, and Green Results on a Standard Normal Curve. Figure 3: Practice Zones. Figure 4: Assessing Results and Practices. Figure 5: Steps to Services Success. Figure 1: PSA Adoption by TPSA Members. Figure 2: Growing Dependence on KM Tools by PS. Figure 1: Average Ratio of TSEs to Customers. Figure 2: Average Ratio of TSEs to Knowledge Workers. Figure 1: Bay Area VC Funding for Q3 2008 by Industry. Figure 2: Q3 2008 Bay Area VC Software Funding by Category. Figure 3: CRM and Service Related Investments. Figure 1: Cost of a Field Service Visit. Figure 2: Average Field Service Visits per Day and Drive Time to Customer Site. Figure 1: Converged Services Diagram. Figure 2: Converged Services Require a Combined KM Strategy. Figure 1: Two Sources of Competitive Advantage. Figure 2: Key Strategic and Operational Factors. Figure 3: Factors that Impact Field Productivity. Figure 4: Top Three KPIs that Service Organizations Use to Measure Field Service Performance. Figure 5: Service Revenues per Field Engineer. Figure 6: Field Engineers Billed Against Service Level Agreement. Figure 7: Conceptual Service Productivity Model. Figure 1: Conceptual Service Productivity Model. Figure 2: Absenteeism per Year. Table 1: Q207 – Q208 Services 50: Comparison of Key Metrics. Table 2: Q207 – Q208 Services 50: Companies Common to Both Quarters. Table 3: Q207 – Q208 Services 50: Blended Portfolio Companies Only. Table 4: Comparison of Profitability and Revenue Top 10s: Q208. Table 5: Top 10 Companies by Services Revenue: Q208. Table 6: Top 10 Companies by Total Net Income: Q208. Figure 1: Technology Pace Setters Key Financial Metrics: Q208. Figure 2: Comparison of Key Financial Metrics by Net Income Segment. Figure 3: Comparison of Margin Efficiency. Figure 4: Company Size and Net Income Segment. Figure 5: Product Type and Net Income Segment. Figure 6: Company Size and Net Income. Figure 7: Product Type and Net Income. Figure 8: Product Type, Company Size and Net Income. Figure 9: Large Software Companies and S50 Top 10: Key Financial Metrics. Figure 10: Below-the-Line Costs: 2003, 2005, 2007 Summaries. Figure 11: Below- the-Line Costs: 2007. Table 1: TPSA 2008 Compensation Study Elements. Table 2: TPSA 2008 Compensation Study Overview. Figure 1: Positions with Incentive Compensation in Plans. Figure 2: Current and Future Year Intentions on Compensation Planning. Figure 3: Basis for Pay Modifiers. Figure 4: Salary Data Point Overview: Geography. Figure 5: Salary Data Point Overview: Function, Level, Position. Figure 6: Base – Incentive Mix by Function. Figure 7: Base – Incentive Mix by Position. Figure 8: Incentive Compensation Drivers: All Positions. Figure 9: Incentive Compensation Drivers: Functional View. Figure 1: SSPA Member Adoption of Knowledge Management. Figure 2: SSPA Member Planned Spending for Knowledge Management. Figure 3: Incident Volume by Channel. Figure 1: Remote Support Adoption by SSPA Members. Table 1: Product Comparison Matrix. Figure 1: Blurring Product Boundaries. Figure 2: Agent Facing Knowledgebases Used by SSPA Members. Figure 3: Option to Create Knowledgebase Entry When Closing Case in Salesforce. Figure 4: InstantService Agent Console for High Volume Web Chat. Figure 1: Pro Dev Investment, Min, Avg Max. Figure 1: Pro Dev Investment, Min, Avg Max. Fig. 3: Is there a Curriculum Manager in Your Organization? Figure 4: Service Strategy Profile and Presence of Curriculum Manager. Figure 5: To what executive does your Curriculum Manager report? Figure 6: To what executive does your Curriculum Manager report? Service Strategy Profile. Figure 7: Curriculum Manager Reporting and Avg. % of TPS Rev Invested in Pro Dev. Figure 8: Are any PS employees required to have a minimum number of hours of Pro Dev each year? Figure 9: Service Strategy Profile and Requirement of Minimum Hours of Training for any PS Employees. Figure 10: Profitability and Requirement of Minimum Hours of Pro Dev for TPS Staff. Figure 11: Profitability and Avg % of TPS Revenues Allocated to Pro Dev. Figure 12: Can you quantify in any way the impact of Pro Dev on PS financial performance? Figure 13: TPS Profitability and Ability to Link Pro Dev and Financial Performance. Figure 14: Ability to Quantify the Financial Impact of Pro Dev and Avg. % TPS Revenue Spent on Pro Dev. Figure 1: Incident Volume by Channel. Figure 2: Response and Resolution Times by Channel. Figure 3: Support Satisfaction by Channel. Figure 4: Linksys Web Self-Service Portal. Figure 1: What is your company’s support technology budget? Figure 2: 2008 Technology Budgets for SMB and >$1B Members. Figure 3: Technology Spending by Product Category: 2007 vs. 2008. Figure 4: Technology Spending by Product Category: SMB vs. >$1B. Table 1: Member Adoption Rates for Functional Modules. Figure 5: What Technology Are Members Using for Incident Management? Figure 6: What Technology Are Members Using for Agent Knowledgebase? Figure 7: What Technology Are Members Using for Remote Support? Table 2: Member Satisfaction with Functional Modules. Figure 8: Functional Modules with the Highest Planned 2008 Purchases. Figure 1: Onshore vs. Offshore Support Staff. Figure 2: The Talent Management Lifecycle. Figure 3: Ideal Years of Experience vs. Available Workforce. Figure 4: Rating Criticality of Skill Sets in New Hires. Figure 5: What Do Applicants Look For? Figure 6: Preferred Career Paths for Technical Support Engineers. Figure 7: Real World vs. Ideal Sourcing Ratios. Table 1: Talent Development: Readiness to Specialization. Figure 8: Respondents Rate Time and Effectiveness of Training Programs. Figure 9: Comparing Importance of Subjects with Existing Training Modules. Figure 10: Comparing Duration of Technical and Language Training. Figure 11: Mix of Training Methods Used in New Hire Training. Figure 12: Average Time in Position for Support Engineers. Figure 13: Talent Specialization: Services Marketing, Technical Operations. Figure 14: Talent Specialization: R&D, Business Operations. Figure 1: Path to Recognizing Product Revenue. Figure 2: Navigating 97-2. Figure 3: Are Services Software Related? Figure 4: Rev Rec Math. Figure 5: The Third Question. Table 1: VSOE Categories for PS. Table 2: VSOE Rate Categories. Table 3: Parameters Impacting Review of Product Revenue Recognition. Figure 1: Increase in Purchases/ Sales of Services if Cross-EU Barriers Were Removed. Figure 2: A Shifting Services Business Continuum Model. Figure 3: Risk of the Core Strategic Options. Figure 4: Top Three Services Differentiators (Survey Average). Figure 5: Top Three Services Differentiators (by Sector). Figure 1: 2008 Functional Heat Map Figure 1: What is your company’s support technology budget? Figure 2: 2008 Technology Budgets for SMB and >$1B Members. Figure 3: Technology Spending by Product Category: 2007 vs. 2008. Figure 4: Technology Spending by Product Category: SMB vs. >$1B. Table 1: Member Adoption Rates for Functional Modules. Table 2: Member Satisfaction with Functional Modules. Table 3: Member Satisfaction with Functional Modules. Figure 5: Functional Modules with the Highest Planned 2008 Purchases. Figure 1: Annual Training Time for Reps with >1 Year Experience. Figure 1: SSPA Benchmark Results for Key ACD Metrics. Figure 2: First Contact Resolution Rates Vary by Complexity Figure 1: The Service 50 – Margin Dollars Q405-Q407. Figure 2: Corporate and Business Strategy. Figure 3: Strategy as Source of Service Innovation. Figure 4: Five Functions of PS. Figure 5: Investment in Services Engineering. Figure 6: Margin Breakpoints. Table 1: Impacting Project Margins. Table 2: Impacting Field Margins. Table 3: Impacting Labor Margin. Table 4: Impacting Operating Margin. Table 5: Summary of Sources for PS Innovation. Figure 1: Average Annual Attrition Rates by Geographic Region Figure 1: Product Service Mix Trends. Figure 2: Time Spent on Pre-Sales. Figure 3: Impact of PS on Customer Satisfaction. Figure 4: Compensating on Customer Sat. Figure 5: PS Impact on Renewal Rates. Figure 6: Attach Rates. Figure 1: Service 50 Comparison of Key Metrics for HW and SW Companies Combined, Q405 - Q407. Figure 2: Software Spectrum: % Revenue from Services and Company Net Income. Figure 3: Hardware Spectrum: % Revenue from Services and Company Net Income. Figure 4: Software Companies, Comparison of Above and Below Average % Services Revenue. Figure 5: Hardware Companies, Comparison of Above and Below Average % Services Revenue. Figure 6: Software Companies, Comparison of Net Income and Avg % Revenue from Services. Figure 7: Hardware Companies, Comparison of Net Income and Average % Services Revenue. Figure 8: Service 50 Key Metrics, HW and SW Companies Combined, Q405 - Q407 Comparison. Figure 1: Self-Service Success in Decline. Figure 1: Channel Preference by Age Group. Figure 1: Services IT Infrastructure Functions. Figure 2: How Do You Create More (and Better) Evangelists? Figure 3: Situational Fluency. Figure 1: Most recent year PS growth rates: TPSA Benchmark Study. Figure 2: Three year PS growth rates: TPSA Benchmark Study. Figure 3: Three-year growth rates for PS by size of PS business. Table 1: Core PS Business Model Benchmarks. Figure 4: Net Income Trend. Figure 5: Pure Services Growth and Net Income Trends. Figure 6: Software Growth and Net Income Trends. Figure 7: Hardware Growth and Net Income Trends. Figure 8: Growth and Net Income Trends All Companies. Figure 9: Average Net Income and Service Growth All Companies. Figure 10: Services Revenue and Net Income Delta Trends. Figure 11: TPSA S50 Service Margins: Q306 - Q307. Figure 1: Average Monthly Incident Volume by Industry. Figure 2: Average Incident Volume by Channel. Figure 3: Industry Average Response and Resolution Times. Figure 4: Average Monthly Incident Volume by Industry. Figure 1: The Annual PS Planning Process. Figure 2: Seven Drives to Align Geographies. Table 1: Global Metrics. Table 2: GEO Maturity. Table 3: Global Rate Table. Table 4: Global Services Portfolio. Table 5: The PS Help Desk. Table 6: Global Resource Management. Table 7: Global Compensation. Table 1: TPSA Play Components. Table 2: Technology Market Research Firm Segmentation. Figure 1: Percent of Services Revenues Allocated to Key "Below-the-Line" Functions (All TPSA Companies). Table 3: Service Marketing Spend Categories. Figure 2: Service Marketing Activity Mix (All TPSA Companies). Figure 1: Reichheld’s Hierarchy of Customer Profitability. Figure 2: SSPA Community Member Adoption of Right Channeling. Figure 1: TPSA Service 50 Q207: Net Income Distribution. Table 1: Comparison of Key “Long Tail” Metrics: Q206 – Q207. Figure 2: TPSA Service 50: Net Income Distribution, Q206 – Q207. Table 2: Service 50 Q207: Ranked by Total Services Revenues. Table 3: Service 50 Q207: Ranked by Net Income. Table 4: Comparison of Service 50 Top 10: Revenue vs. Net Income. Table 5: Key Software Companies Metrics: Q206 – Q207. Table 6: Technology Spending Mix: Q206 – Q207. Figure 1: Remote Support Adoption by SSPA Members. Figure 2: Most Useful Tools for Issue Resolution. Figure 3: SSPA Member Average First Call Resolution Rate. Figure 4: SSPA Member Average Talk Time. Figure 5: SSPA Member Staff Allocation by Tier. Table 1: Average Incident Cost by Tier. Figure 6: SSPA Member Average Customer Satisfaction. Figure 1: Iron Triangle of Proposal Success. Figure 2: The PS Hourglass. Figure 3: Expanding the Hourglass. Figure 4: Managing Opportunity. Figure 5: TPSA Benchmark Study: The Most Valuable Training Courses and Certifications for the Success of Delivery Staff. Table 1: Creating an Attribute Inventory. Table 2: Attribute Inventory Template. Figure 6: Impact of Formal Skills Evaluation. Figure 1: Planned 2007 Spending by Technology Category. Figure 2: CRM Spending by >$1B Members. Figure 3: Member Adoption of the 360° View. Figure 1: Proactive Upsell Prompt from Infor. Figure 1: How are eChannel Incidents Handled? Figure 1: Average Monthly Email Volume Increases Dramatically. Figure 2: Service Levels Dramatically Lower for Email Incidents. Figure 3: The Classification Engine is the “Brain” of an ERMS. Figure 4: SSPA Member Adoption of ERMS. Table 1: Utilization Targets by Geography. Figure 1: Utilization Mix by Geography. Table 2: Service Strategy Profiles. Figure 2: Billable Utilization Targets by Service Strategy Profile. Table 3: Utilization by Service Strategy Profile. Figure 3: Service Strategy Profile and Utilization Mix. Figure 1: What percentage of delivery staff is subcontracted? Figure 2: What percentage of your implementation services is outsourced? Figure 3: What percentage of your post-sales support is provided by partners? Figure 4: On average, how long does it take for new delivery staff to become billable? Figure 5: On average, how long does it take for you to source a newly signed service engagement. Figure 6: How do you manage the pool of resources available for delivery? Table 1: Sample Forecasting Table. Figure 7: Warm Pool Recruiting. Figure 8: Shared Resource Pool. Figure 9: Desired End State: GRM Workflow. Figure 10: Self Assessment of Resource Planning Current Capability: TPSA Summit Metaplanning Session, May 2007. Figure 11: Improving Resource Planning: TPSA Summit Metaplanning Session, May 2007. Figure 1: Legacy search tool at Invensys proved unusable for novice agents. Figure 2: Invensys leverages intelligent search from InQuira. Figure 3: Novell’s Global Network of Expert Customer “Sys Ops”. Figure 1: Three Waves of Knowledge Management. Figure 2: KM 2.0: A Knowledge Ecosystem. Figure 1: Three Layers of Speech Technology. Figure 1: Inbound Calls Resolved by Voice Self-Service. Figure 2: SSPA Member Adoption of Voice Self-Service. Figure 1: Talisma’s Supervisor Dashboard. Figure 2: KANA’s Closed Loop Knowledgebase Analysis. Figure 3: eGain’s Self-Service Performance Dashboard. Figure 4: InQuira’s User Intent Analysis. Figure 5: KNOVA’s Website Traffic Analysis. Figure 6: Bomgar’s Reporting Portal Showing Available Report Types. Figure 7: LogMeIn Rescue Session Report. Figure 1: Total Services Revenue, Q405-Q406: Service 50. Figure 2: Revenue vs. Services Margins Q405-Q406: Service 50. Figure 3: Services Revenue, Q405-Q406: Top 10 vs. Rest. Figure 4: Share of Overall Services 50 Revenues, Q405-Q406: Service 50. Figure 5: Average Services Gross Margins, Q405-Q406: Service 50 vs. Top 10*. Figure 6: Average % of Services Revenue, Q405-Q406: Service 50 Segment Comparison. Table 1: Service Top 10 Companies. Figure 7: Services Revenue Growth, Q405-Q406: Service 50. Figure 8: Share of Service 50 Total Revenues, Q405-Q406: Company Type Comparison. Figure 9: Average % of Services Revenue, Q405-Q406: Company Type Comparison. Figure 10: Average Services Gross Margins, Q405-Q406: By Company Type. Figure 11: Average Total Gross Margins, Q405-Q406: By Company Type. Figure 1: Technology Professional Services. Table 1: The Service 50 Selection Criteria. Figure 2: The Service 50 Revenue Mix. Figure 3: Revenue Mix by Company Type. Figure 4: Revenue Mix for Software Companies. Figure 5: Revenue Mix for Hardware Companies. Figure 6: Product-Service Mix Data. Figure 7: Product-Service Mix Trends. Figure 8: Product-Service Mix Trends. Figure 9: Service Gross Margin Trends. Figure 10: Gross Margin Analysis. Table 2: Previous Year Quarter Comparison. Figure 11: Quarterly Trends. Table 3: The Service 50 Calendar. Figure 1: Source of Provider Preferred for In-Home Services. Figure 2: Top Attributes for Selecting In-Home Service Provider. Figure 3: What Price is Appropriate for In-Home Installation? Figure 1: The High Tech Heartbeat. Figure 2: Sun Microsystems Financial Performance. Figure 3: CA Financial Performance. Figure 4: PSE Volatility. Table 1: Parameters for PSE Success. Figure 5: Perceptions of the External Services Candidate. Figure 6: Realistic Assessment of the External Candidate. Figure 7: The Internal Candidate. Figure 8: Product Adoption Rates Reported in the TPSA Benchmark Study. Figure 9: Product-to-Service Ratio. Figure 10: Emerging PSE Requirements. Figure 1: 2007 Purchase Plans for Home Office and Home Theatre. Figure 2: 2007 Home Theatre Spending Plans by Income. Figure 3: Phone, In-Person or Online Purchase Preferences. Figure 4: Phone, In-Person or Online Purchase Preferences. Figure 5: Consumer References for Online Shopping. Figure 6: Price is Primary Influencer for Purchase Location. Figure 1: Deriving Intelligence from Customer Interactions. Figure 1: Planned Service Options: Home Office. Figure 2: Planned Service Options: Home Theatre. Figure 3: Where did you learn about in-home service options? Figure 4: Barriers to Home Services. Figure 5: Why are you considering home installation services? Figure 1: Balancing Quality, Productivity and Revenue. Figure 1: Ad for Japan’s i-pot and Example of Online Usage Report. Figure 1: HP SME Guided Selling Includes Upsell Offers. Figure 2: eGain’s Upsell Offers Appear on Right Side of Self-Service Session. Figure 1: Offer Extension and Accept Rates for Home Theatre. Figure 2: Offer Extension and Accept Rates for Home Office. Figure 1: SSPA Functional Heat Map. Figure 2: Member Adoption vs. Satisfaction. Table 1: >$1B Member Intent to Purchase by Module. Table 2: SME Member Intent to Purchase by Module. Figure 1: SSPA Member Adoption of Quality Monitoring. Figure 2: SSPA Member QM Adoption and Spending Plans. Figure 3: Speech Analytics in eTalk’s Qfiniti Enterprise. Figure 1: InQuira’s User Experience Manager. Figure 2: KNOVA Microsite Example . Figure 3: Sento’s Customer Experience Platform . Figure 4: eBonding Involves Single Customer Portal and Back Office Integration. Table 1: Functional categories from 2006 SSPA Technology Survey. Figure 1: Percentages of packaged vs. internally developed software. Figure 2: Internally developed software by product module. Figure 3: Average satisfaction for packaged vs. internally developed technology. Table 2: Average satisfaction by product module. Table 1: Forecasting Data Streams. Figure 1: Forecasting Data Streams. Table 2: Sample Company Revenue Mix. Figure 2: Growth Rates of PS Business. Figure 3: Growth Rate by Size of PS Business. Figure 4: Product/Service Ratios. Table 3: PS Revenue Requirements for Mature Products. Figure 5: Current Product Revenue Growth. Table 4: PS Revenue Requirements for New Product Offerings. Table 5: PS Forecast Table. Figure 6: PS Revenue Forecast Graph. Figure 7: Three-Year Growth Rate for PS in Fall 2004. Figure 8: Maximum Profitable PS Growth Rate in Fall 2004. Figure 9: Three-Year Growth Rates in PS in Fall 2006. Figure 10: PS Profitable Growth Rates. Figure 1: GPS Enabled Mapping for Internet Browsers and Mobile Devices. Figure 1: Field Service Processes. Figure 2: The Importance of Entitlement. Figure 1: Darty Company Facts. Figure 2: Darty’s Search Screen: By Product Category, Model Number or Symptom. Figure 3: Comet’s Kaidara Advisor Search Screen Table 1: MVS Trends 2003-2006. Figure 1: MVS Incidents Requiring 3rd Party Collaboration, By Segment. Table 2: Examples of Premiere MVS Programs. Figure 2: MVS Incidents Requiring 3rd Party Collaboration, By Segment Figure 1: How Companies Resolve Collaborative MVS Issues Figure 1: Building the Omni-Channel. Figure 2: Average Response and Resolution Times by Technology Segment Figure 1: Members Increasingly Identify as Highly Complex. Table 1: Service Level Metric Trends. Figure 2: Response and resolution times by channel Figure 1: eChannel Volume Catches up to Phone in 2006. Figure 2: Interactions by Channel and Industry. Figure 3: Average monthly incident volume. Table 1: Monthly Average Incident Volume by Channel Breakdown. Figure 4: Monthly Average Incidents by Technology Segment Figure 1: The Project Lifecycle. Figure 2: The Expectations Gap. Figure 3: The Roles Gap. Figure 4: The Capture Gap. Figure 5: The Proposal Triad. Figure 6: Compensation and Customer Satisfaction in Services. Figure 7: Percentage of companies compensating Sales Staff for Project Profitability. Figure 8: Closing the Economic Loop. Figure 9: Engagement Types. Figure 10: Centralized Functions at CA. Figure 11: CA O-Map. Figure 12: Struggles with Review. Figure 13: Formal Project Reviews. Figure 14: Ranking Assets. Figure 15: PLG Survey Results. Table 1: PLG Survey. Figure 1: Technology Professional Services. Table 1: The Service 50 Selection Criteria. Figure 2: The Service 50 Revenue Mix. Figure 3: Revenue Mix by Company Type. Figure 4: Revenue Mix for Software Companies. Figure 5: Revenue Mix for Hardware Companies. Figure 6: Services Revenue Gross Margin Analysis. Table 2: Two Quarter Trends. Figure 7: Quarterly Trends. Figure 8: Product-Service Mix Data. Figure 9: Product Service Mix Trends. Figure 10: Product Service Mix Trends. Table 3: The Service 50 Calendar. Figure 1: Technology Professional Services. Table 1: The Service 50 Selection Criteria. Figure 2: The Service 50 Revenue Mix. Figure 3: Revenue Mix by Company Type. Figure 4: Revenue Mix for Software Companies. Figure 5: Revenue Mix for Hardware Companies. Figure 6: Services Gross Margin Analysis. Table 2: Previous Quarter Comparison. Figure 7: Quarterly Trends. Figure 8: Product-Service Mix Data. Figure 9: Product Service Mix Trends. Figure 10: Product Service Mix Trends. Table 3: The Service 50 Calendar. Table 1: The IAM Glossary. Figure 1: Path to Recognizing Product Revenue. Figure 2: Three VSOE Challenges. Figure 3: Acceptable Pricing Ranges. Table 1: Revenue Allocation Example: On-Demand Provider. Figure 4: Revenue Recognition Process. Figure 5: Pricing Philosophies. Figure 1: The Pyramid. Figure 2: The PS Hourglass. Figure 3: Expanding the Hourglass. Figure 4: Roles & Responsibilities. Figure 5: Pyramid vs. Hourglass. Table 1: Key Tactics Employed to Take the New Service Marketing Approach to Market. Table 2: Product vs. Services Marketing. Figure 1: Engagement Types. Figure 2: Service Life Cycle. Figure 3: Services Development Life Cycle. Figure 4: Services Development Pipeline. Figure 5: PS Position Map. Figure 6: Interfaces for Services Engineering. Table 1: Inputs and Outputs. Table 2: Metrics for Services Engineering. Figure 1: Technology Professional Services. Table 1: The Service 50 Selection Criteria. Figure 2: The Service 50 Revenue Mix. Figure 3: Revenue Mix by Company Type. Figure 4: Revenue Mix for Software Companies. Figure 5: Revenue Mix for Hardware Companies. Figure 6: Services Gross Margin Analysis. Table 2: Two Quarter Trends. Figure 7: Quarterly Trends. Table 3: Gross Margin Trends. Figure 8: Gross Margin Trends. Figure 9: Product- Service Mix Data. Figure 10: Product Service Mix Trends. Figure 11: Product Service Mix Trends. Table 4: The Service 50 Calendar. Table 1: Nine Software Companies. Table 2: Contribution Calculator for Software Companies. Figure 1: The Contribution Shift. Figure 2: Valuation Snapshot. Figure 3: Valuation Perceptions. Figure 4: Product-Service Mix Data. Figure 5: Product Service Mix Trends. Figure 6: Valuation Realities. Figure 7: Three Opposing Forces. Figure 8: EIA Task Force Notes. Table 1: Traditional Scalability Options. Figure 1: ISC Sourcing. Table 2: A Fourth Option. Figure 2: EMC’s Services Revenue Growth. Figure 3: EMC Service Revenues. Figure 1: Corporate and Business Strategy. Table 1: PS Business Model Definitions . Figure 2: Novell Service Mix . Figure 3: Unisys Service Mix. Table 2: Accenture Financial Results. Table 3: IBM Global Services Results. Table 4: Support Services Business Model. Table 5: PS Line Items. Figure 1: Technology Professional Services. Table 1: The Service 50 Selection Criteria. Figure 2: The Service 50 Revenue Mix. Figure 3: Revenue Mix by Company Type. Figure 4: Revenue Mix for Software Companies. Figure 5: Revenue Mix for Hardware Companies. Figure 6: Service Gross Margins for The Service 50. Figure 7: Product-Service Mix Data. Figure 8: Product Service Mix Trends. Figure 9: Product Service Mix Trends. Table 2: The Service 50 Calendar. Table 1: Marketing Mix Categories. Figure 1: Sample Marketing Mix Budget. Table 2: Sample Content Creation Budget.
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