Archive for the ‘Metrics’ Category

How are tech companies tracking customer consumption?

November 24, 2014

For the past year, TSIA has been conducting research related to how our member companies understand how their customers are actually consuming technology offers. We call this field of research “Consumption Analytics.”  This field is becoming critical as customers migrate to “technology as a service” business models where they only pay for what they actually consume.

Currently, we are conducting an industry survey on the topic. Below is information on how you can participate and receive the insights from the survey data.

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What metrics should we measure, and how can we leverage that information to improve our services? The choices are many, and it’s a challenge that transverses all service disciplines. If you are actively monitoring and utilizing streams of product and service data, or if you are just starting to create your analytics plan, we invite you to participate in TSIA’s Adoption, Consumption, and Outcome Metrics Survey:

Click here to participate in the survey

This 20-minute, 13-question survey will collect core data on how companies measure purchase, installation, consumption, and outcome metrics; and more importantly, how they leverage these data streams. All participants, regardless of their analytics process maturity, will receive a summary of the data collected and be invited to a private webinar discussing the results.

Deadline for submission is Wednesday, December 17, 2014.

Thank you for your support of this important research initiative. For questions on this research, please contact Jeremy DalleTezze at jeremy.dalletezze@tsia.com.

 

 

 

The Europe Service 20: Webcast

February 25, 2009

On March 5th, I will be hosting a public webcast on The Europe Service 20. To register:

http://webcasts.tpsaonline.com/event/y5t7061dug/tpsahomepg

In this webcast, I will be comparing the results of twenty of the largest technology services providers in Europe to the results we have seen in The Service 50 (a list of fifty of the largest providers of technology services, worldwide). I will also indentify four of the highest performing services organizations based in Europe. Finally, I will be discussing three metatrends that are impacting the European technology solutions marketplace. These trends can be summarized in the figure below:

Three Industry Trends

Three Industry Trends

Want to find out what these trends are and what they mean to technology providers? Come join me March 5th.

Health Check: Technology Services

February 2, 2009

Last Thursday, we delivered our analysis of how fifty of the largest providers of technology services performed in Q4 2008. Companies in our index include hardware, software, and pure services companies. Example companies include:

  • Accenture
  • Cognizant
  • Cisco
  • HP
  • IBM
  • Infosys
  • Oracle
  • SAP

Analyzing the Q4 data, we saw three trends important to every provider of technology services.

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The Service 50 Webcast

January 26, 2009

This is a quick reminder that I will be hosting the quarterly Service 50 Webcast on January 29th at 2:00pm Eastern. This webcast is open to the general public. In it, we analyze the quarterly performance of fifty of the largest providers of technology services. This is perhaps one of our most anticipated snapshots. This webcast is one data point your services organization can use to better understand how the broader technology services industry is performing in the current economic environment. Key questions we answer with The Service 50 dataset include:

1. Who are the largest providers of technology services?
2. Are technology service margins trending up or down?
3. Are net incomes trending up or down?
4. Are hardware and software companies becoming more or less service intensive?

5. What is the product service mix for the most profitable companies in the Service 50?
6. What is the product service mix for the largest companies in the Service 50?

To register, visit:

http://webcasts.tpsaonline.com/event/76vv1kdsez

Sample analyis from are last Service 50 webcast:

Service 50 Example

Service 50 Example

TPS Industry Tracker Live

January 12, 2009

Quick update:

The TPS Industry Tracker is now avialable for TPSA member companies to input their data. Here is the information regarding the survey:

It is time to take the Q1 2009 snapshot that will provide all participants insight on how PS organizations really faired in Q4 and how your peers feel the incredible global economic situation will impact their business in Q1 2009 across all geographies. This is perhaps the most anticipated snapshot we have taken since starting this tracker last year.
We have now automated the data input process. Please provide your information by visiting:
http://survey.confirmit.com/wix/p789079358.aspx

This is a penny in, penny out model. If you complete the online survey by January 19th , I will aggregate the data and send the Q1 deck out by January 23rd. As always, your company name will not be associated with any of the documents I create from this data for the readout.

Remember the following guidelines:

  • Provide answers based on local currency. We do not want fluctuations in currency exchange rates to impact the responses and trend data.
  • Participating companies asked us to break out Japan from the rest of Asia because Japan is a much more mature market than the rest of Asia.
  • The break point between INCREASE and STRONG INCREASE has been modified. Please make sure your responses are reflective of the new break point.
  • Based on feedback, we added backlog as a 7th metric we will be tracking and trending.
  • For your predictions on what will happen this current quarter, you are comparing how this quarter will compare to the previous quarter.

If you have questions on this initiative, please contact me directly.

thomas@tpsaonline.com

New Year’s Anxiety

January 4, 2009

Well, I am back in the saddle for 2009. Usually, I look forward to embracing a new year—and all the new initiatives financed by all of those reloaded annual budgets. However, I cannot recollect a new year in my career when I had more anxiety regarding the resilience of the technology services industry. Will 2009 be a total disaster regarding technology services revenues or will this sector continue relatively unscathed as it did in the first three quarters of 2008? To help answer that question, my eyes will be firmly fixed on two datasets: The Service 50 and The TPS Tracker.

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Calculating Utilization

December 1, 2008

When business slows, PS organizations begin scrutinizing billable utilization with renewed vigor. PS management is under increased pressure to justify both billable utilization rates and how non-billable time is being spent. Clearly, the concept of utilization is one of the key building blocks of any profitable professional services organization and billable utilization is a key indicator of staff productivity. However, professionals in the industry continue to debate the appropriate way to calculate and report this fundamental metric. What number should be used when determining the total available hours for each consultant? Should the total available hours be modified from country to country to accommodate variances in holidays, vacation, and work week policies? If there is no standard way to calculate utilization, how can geographies compare productivity?

As an industry association, TPSA will never completely put to rest the debate surrounding utilization calculation. However, TPSA does provide a recommend practice for the most effective way to calculate utilization across multiple geographies.

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Cisco: The Impact of Services on Product Revenues

November 10, 2008

Last week a TPSA member made me aware of a webcast delivered to Cisco shareholders and available on the Cisco web site by visiting:

http://investor.cisco.com/webcasts.cfm

The investor webcast of interest is titled:Revolutionizing Customer Intimacy. In this webcast, Nick Earle, SVP of Services from Cisco overviews Cisco’s updated services strategy. The eye catching statistic provided in the presentation is related to the influence of service activity on product pull. Cisco states the following fact:

Every $1 of solution architecting services purchased by a customer results in $4 of advanced services that drive $7 of Cisco product sales.
Customers that do not purchase architecting services purchase an average of $3 of Cisco product.

The graphical version of this statement is our image for this entry:

Impact of Services on Product Revenues

Cisco: Impact of Services on Product Revenues

This type of data gets professional services folks very excited. It is exactly the type of evidence that service organizations are always searching for to demonstrate the economic impact of services on product success.

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The Service 50 Q3 2008 Webcast

October 29, 2008

This is a quick reminder that I will be hosting the quarterly Service 50 Webcast on October 30th at 2:00pm Eastern. This webcast is open to the general public. In it, we analyze the quarterly performance of fifty of the largest providers of technology services. Key questions we answer with The Service 50 dataset include:

1. Who are the largest providers of technology services?
2. Are technology service margins trending up or down?
3. Are net incomes trending up or down?
4. Are hardware and software companies becoming more or less service intensive?
5. What is the product service mix for the most profitable companies in the Service 50?
6. What is the product service mix for the largest companies in the Service 50?

Below is a sample of the type of data that will be reviewed during the webcast. To register, visit:

http://webcasts.tpsaonline.com/event/o898vlf743

The Service 50 Dashboard

The Service 50 Dashboard

Now is the Time for Fact–Not Fiction

September 30, 2008

Due to the extraordinary events on the global financial stage, I want to diverge from my normal format and invite both TPSA and non-TPSA members to work together to provide critical facts in a time of business uncertainty.

Right now, service organizations serving all sectors are bracing themselves for the potential impact from the financial crisis gripping the global financial markets. In a PS in a Downturn, I outlined the requests that come the way of PS when revenues go flat or retract. Those requests are coming our way. This is a fact.

However, exactly how the demand for technology service businesses will ultimately be impacted by current events is unclear.  As I highlighted in Tracking TPS, technology professional service organizations have been weathering the 2008 downturn in the financial and retail sectors just fine. Also, we know that in the 2001 implosion that occurred in the tech space, service revenues became a larger portion of total company revenues for both hardware and software companies. Yes, customers may freeze all capital spending, but they still need service assistance to maintain and manage their current technology environments.

 TPSA was formed to help companies separate fact from fiction when making service business decisions. In Q4 2008, I believe one of the most important facts service organizations will need to understand is how demand is trending for professional service offerings. For the past three quarters of this calendar year, TPSA has been taking a snapshot of how PS organizations have been performing and how they feel the upcoming quarter will trend. Before the current financial market challenges, PS organizations surveyed were cautious but optimistic about Q3, as shown below:

TPS Industry Performance Trends

TPS Industry Performance Trends

 In October, we will be taking our Q4 snapshot on PS Industry Performance. In an effort to provide the best visibility possible to PS organizations, we are inviting both TPSA and non-TPSA members to participate in this survey. Companies that provide input by October 15th will be invited to a webcast readout. No specific company data is shared in any forum.

Data can be inputted online by visiting:  http://survey.confirmit.com/wix/p724187046.aspx

Questions about participating in this survey should be directed to thomas@tpsaonline.com.

To better understand the type of data collected, review the information below. (more…)