UNIT4 had an analyst day last week. FinancialForce is hosting its user conference this week. I missed both due to other commitments but I see lots of tweets from fellow analysts. Good to see both vendors, focused on service sectors, get the attention.
The services sector has been on my mind for several gut-wrenching changes I describe below and I wonder if the use cases of these vendors and other PSA vendors are starting to reflect these new realities
a) Dynamic Changes to Global Delivery model
Just about every SI and outsourcer has moved to a global delivery model with a blend of on-site and offshore resources. This year we are seeing visa reviews, bans on devices on planes start to significantly affect labor mobility across countries, and therefore cause a need to rebalance staff resources across regions. Is your PSA allowing you to model this and drive your HR decisions?
b) Deflationary pricing in some services sectors
Amazon has cut prices of its infrastructure-as-a-service over 50 times in the last decade. If I am a CFO in the managed services sector which is even remotely affected by Amazon I want my ERP to help me re-price my proposals and contracts on a very regular basis. Hopefully I will not need to cut pricing that often but it would be foolish to be unprepared.
c) Smart products and impact on some services
Products with embedded software and services are the foundation of the Internet of Things. Field maintenance services need a complete overhaul in this world where maintenance is predictive and therefore very different from traditional scheduled maintenance. Is your ERP allowing you to keep up with that?
d) Automation pressure
While outsoucers try to convince their clients to try out automation in the form of AI and robotics, there is similar pressure on them to rebalance their own man-machine mix. Is your PSA able to load balance between FTEs (full time employees) and AFTEs (automated full time equivalents)?
I look forward to hearing from my fellow analysts if the functionality in these products is keeping up with a rapidly changing services economy.
