Dynamics within the technology industry are changing rapidly to focus on providing more service-based offerings to customers, but the shift can be both intimidating and slow going without a detailed plan in place. There’s been an industry-wide, 80 billion dollar reduction in revenue, and this can be attributed to both hardware and software companies simply not knowing what steps they need to take in order to become Level 3 and Level 4 suppliers focused on driving customer technology adoption and delivering business outcomes.
TSIA has introduced an expanded service revenue generation (SRG) membership program that now provides coverage for the emerging area of account expansion as well as its traditional focus on service annuity renewal. This addendum to our previous model includes brand-new strategies to help your company evolve and increase service-based revenue.
In this post, we’ll answer some common questions about what you can expect with this expansion and how TSIA can further help guide you down the correct path to developing new organizational capabilities.
Q: What is the expanded SRG program?
A: TSIA’s SRG discipline expansion focuses on easing your company’s transition from a product-based business to building and expanding your service portfolio. We will guide you in creating new services that can stand alone on their own value proposition, further increasing your value to your customers.
Companies who are making this shift might still be lacking the scale and know-how to make the transition toward Level 3 and Level 4 business models. Our goal with the SRG expansion is to use the research in the current market to adjust these strategies to continually grow service revenues and better guide companies through the process of transforming from product “availability” to “customer outcomes.”
In addition, shifts in the industry landscape prompted us to further build upon our existing strategies for customer retention and adoption. Companies need to focus not just on retaining current service revenue, but also on implementing strategies for actively growing both services and product revenue with existing customers.
Q: What strategies can we expect in TSIA’s SRG expansion?
A: Through this expansion, we will guide you through five calls to action to better ease your transition to Level 3 and Level 4 business models.
- Transform from retention to expand selling.
- Evolve from product-attached services to outcome-based services.
- Shift from Cloud 1.0 to Cloud 2.0 business models: monetizing services and new customer engagement models.
- Migrate from a one-size-fits-all approach to effective service strategies in emerging markets.
- Intensify the optimization of recurring service revenues.
Q: Who benefits from this expansion?
A: We will continue to serve all previous titles and job descriptions, but we’ve added some additional supported positions and benefits.
TSIA’s Goals for Members
Your success is our primary goal, and with this in-depth expansion to our current SRG discipline service, our members can expect us to:
- Contribute to profitable revenue growth in Level 3 and Level 4 business models via thought leadership and quantitative research on cost-effective sales models and marketing practices.
- Define the set of new capabilities required to successfully optimize product and service revenues with existing customers.
- Provide best practice insights, metrics, blueprints, and examples of successful implementations.
TSIA’s Top 2014 Initiatives on Capabilities
Along with this expansion, we have even more new updates to our SRG benchmarking and research program scheduled for Summer and Fall 2014.
About the Author
Julia Stegman is vice president of research, Service Revenue Generation, for TSIA. She has over 25 years of experience in the high-technology industry, and is responsible for driving the TSIA research agenda related to the growth of maintenance, SaaS, and managed service revenues as well as the expansion of product revenues with existing customers.