Why/How do they do it?Service Companies Hooked on Software

Refuse to Fail

Doing More with Less?• US Service Sector continues

to show steady if moderate growth• Other sectors remain flat

• But – it depends on how you measure it• Revenue growth? (bottom line)• Expansion in business activity?

(top line)• Service companies are

making more money with less activity

US Census report for 2nd Quarter, 2016

Is Software the Secret Sauce?• There is an argument that

SaaS companies are really just software companies• No to little service staff. No

boots on the ground…• Are they in the same class of

service as a medical clinic? • Or the technical services that

manage the sophisticated medical equipment in medical clinics across a region?

Is Software the Secret Sauce?• How about the medical billing

company that handles patient records, appointments, doctor schedules, service records and supply replenishment?• Or the accounting firm that

manages medical coding verification for insurance billing?• Critically, all these services

have one thing in common…

Software-Driven Services• Services today depend on software• Service companies are becoming software-driven

organizations• If not actual software companies…

• Their revenues depend on reliable, efficient, custom applications that embody their core business models and area of focus• And the medical industry is just one of many

examples. • There are hundreds of others

Software-Driven Services• Consider Uber… What do they actually do?

• They don’t own their cars• Drivers are contractors• Software runs on the Amazon cloud• Driver and passenger mapping is handled by Google Maps APIs• Cellphone text messaging runs on Twillo• Email service for receipts and service records are handled by SendGrid• Payments are handled by Braintree

• Instead of focusing on the mundane services of scheduling drivers, routing taxis to customers and managing payments• They focus on customer experience, optimizing pricing, and innovating

new services and applications that could eventually eliminate drivers

What’s the Lesson?• Shed everything that is “non-essential” and ”non-core”

• Leverage other services to provide those functions – because they have optimized them across several implementations and industries

• Focus like a laser on the issues important to their customers• Service when and where they need it• Mobile service access for summoning a car, providing their destination,

payment and service feedback• For competitors (and now sectors of the cargo industry) Uber’s

deliberate, continuous innovation has been unnerving• But for the service industry it is an important lesson

• Software is increasing customer satisfaction and increasing bottom line revenue for service providers who leverage it wisely

Change is Hard!• This change in focus is one thing for new companies,

driven by the Lean Startup Method• But for existing service companies, this is nothing less

than a “digital transformation” – DX.• And if looked at as one big “boil the oceans” project it is a

scary proposition• How different are the legacy taxi companies compared to

what they were 10, 20, or 30 years ago? They have been standing still in comparison to Uber and changing now is almost impossible

Change is Hard!• Digital transformation isn’t

simply an exercise of tacking applications onto your existing services• It is a great opportunity – if it

makes your company more of a Lean and agile organization. If it enables you to innovate incrementally and continuously in the face of your competition

• Instead of trying to solve every problem you face in one big, never-ending project…

Change is Hard!• Digital transformation isn’t

simply an exercise of tacking applications onto your existing services• It is a great opportunity – if it

makes your company more of a Lean and agile organization. If it enables you to innovate incrementally and continuously in the face of your competition

• Instead of trying to solve every problem you face in one big, never-ending project…

Agile Says: Innovate Incrementally• Realize return-on-investment (ROI) on every increment• And adjust our focus in areas where outcomes do not reach our goals• ROI is realized sooner and positive change builds on itself

• Leveraging positive change brings the organization along with it• Taking the Uber example• Reconsider what is really core to your business• The services your customers “have-to-have and the new services

would need if you could deliver them• Test changes and validate them against your customers’ expectations

• It takes time and effort but – you have to start somewhere if you are going to remain ahead of others in your field

At the Cross-Roads• Today, change is not just

necessary.• Constant, positive

organizational learning, growth and EVOLUTION is absolutely necessary• F0cus on your core value

to your customers is a key mantra in digital transformation

• If you are not a digitally-based service organization• How do you change without

adding another whole arm of your team?

• Go back to the mantra – don’t do what isn’t core to your business• Leverage services and

partners whose focus is those areas and let them take the ball in those areas

Refuse to Fail!• Recognizing your strategic focus, advantage, is key.

• Make the changes necessary that will allow you to focus on your advantage

• Look forward always. Evolve constantly. • We’re Scio Consulting

• We can partner with your organization and take on the work of developing and implementing the initiatives that will help you reach a successful digital transformation

• We provide full outsourced, engineering teams, configured as you require, that can change as you move forward

• We have experience across many industries and many verticals that you can leverage in your next initiative.

• Contact Us.