ManagingSupportasaBusiness.pptVIP

Managing Support as a Business Agenda The Business of Support What is S Business ? Market Trends in the Service Business What Every Service Manager Should Know Support Strategies The Business of SupportA Corporate View The Impact of Support Helps customers accelerate full product deployment and utilization Earns and sustains customer loyalty Contributes to business profitability Provides a source of customer insight The Business of SupportBy the Numbers WHY S-BUSINESS? Services contribute 35% of the computer industry revenues and 60% of the profits. Services deliver 61% gross profit margin and 30% growth rate to top-performing organizations. Services have an average gross margins that are more than 50 percent higher than products. “We have a pretty extensive services business. We have embedded services that go along with the product. Then we have the discretionary services, the professional consulting, SAN (storage area network) design and deployment, application development, managed services--its about a $2.6 billion business for us and growing at roughly double the rate of our product business.” Michael Dell, President and CEO, Dell Computer WHY S-BUSINESS? The current annual growth rate of services is more than double that of products. Services possess the potential to expand revenue 4 to 5 times that of the product purchase. Global 2004 market forecast is $1.4 trillion. S-BUSINESSCUSTOMER SERVICES AND SUPPORT What happens in the market The IT Market shows attractive growth rates S-BUSINESSTHE SERVICES CONTINUUM Pure Services: We provide product support services and/or professional services, but no products. Services-Led: We are a services-driven business that also sells products. Services is a Profit Center, But…Yes, we sell services and try to make some money on them, but our core business and our focus are products. Services is a Cost Center: We aggressively sell products; however we also provide and charge for