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

Software

Refuse to Fail Series

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 organizationso 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. oThere are hundreds of others

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

o They don’t own their carsoDrivers are contractorso Software runs on the Amazon cloudoDriver and passenger mapping is handled by Google Maps APIsoCellphone text messaging runs on Twilloo Email service for receipts and service records are handled by SendGrido 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.o And if looked at as one big “boil the

oceans” project it is a scary proposition

oHow 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…

Agile Says: Innovate Incrementally

• Realize return-on-investment (ROI) on every incremento And adjust our focus in areas where outcomes do not reach our goalsoROI is realized sooner and positive change builds on itself

o Leveraging positive change brings the organization along with it

• Taking the Uber exampleoReconsider what is really core to your businesso The services your customers “have-to-have and the new services would need

if you could deliver themo 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-RoadsToday, change is not just necessary.Constant, positive organizational learning, growth and EVOLUTION is absolutely necessary• Focus on your core value to your customers is a key mantra in

digital transformation

• If you are not a digitally-based service organizationo 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 businesso 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

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8920 Business Park Dr Suite 250Austin, Texas 78759

Local: +1 (512) 538 0512Toll free: +1 (800) 642 6134Fax: +1 (831) 309 5803

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Email: info@sciodev.com sciodev.com