Product variety and ever-increasing competition within the IT world have seen a gradual blurring of the once clearly defined distinction between the three tiers of business management solutions. Companies now expect the full functionality of the top-end products as a basic precedent, and select their technology partners based instead on the quality of people power rather than product strength.
This, says Stephen Howe, divisional manager of Business Connexion`s Mainstream competency, is motivating the drive toward solutions providers seeking to secure business rather than product specialists on their teams.
"With the evolution of business management product software from tiers one, two and three into a less distinct categorisation, many products now offer the same degree of functionality, while the price difference is often substantial. Competitive advantage among solution providers is less dependent on the underlying functionality of the product - which is considered a given - and more on high quality consulting and business advice to complement the product," says Howe.
The path to improving a client`s experience starts with a deeper understanding of his/her needs, which requires a shift in focus from the basic provision of a product to the implementation of a solution. This is based on the execution of a carefully planned business strategy that involves using the solution to achieve competitive advantage for the business.
"Offering the best product has become a prerequisite to the most important facet: understanding the client`s business and target market. Being able to provide specialised advice in all areas of that business is what is clinching deals for solution providers," says Howe.
"For example, a good team will research the real problems that lie beneath a client`s use of the product, and what his/her motivation is - lowering costs, increasing efficiency or improving service to customers. Once the answers are determined, then it`s time to look inward to determine what knowledge, experience and skills can be combined with the product to make it a more complete. The outcome is a unique solution that aligns with the business strategy to best complement the profitability of the client," says Howe.
The conversion of internal knowledge and expertise into value-added services to enhance the core product offering as a solution is the way forward for technology providers. Provision of an all-round service rather than the supply of software becomes especially relevant for smaller companies, which rely on strong technology partnerships to cover the skills sets they lack.
Howe believes a five-person organisation would find it impossible to provide horizontal solutions, and would rely on partnering with larger solutions providers that are able to draw on the depth of expertise and business knowledge in the team to "verticalise" the solution. That way they can add value to their clients through the people they can provide.
"Such people would not be pure product specialists but primarily business specialists. Their main focus is to understand business. They look not only at the problem, but also at the cause of the problem, how it can be reworked and avoided. Companies can get around most solution problems if they have access to the people with the best, widest and most specialised knowledge," says Howe.
Competition among reputed solutions providers is set to grow stronger based not so much on strength of product but on the way in which they`re able to serve their clients. Achieving a deeper understanding of the client`s needs, together with superior client knowledge provides a firm basis for the provision of a professionally implemented solution.
"Successful solutions providers don`t excel because they offer great technology. They excel because they have great people. Highly skilled people can select the right technology for the client, implement it properly and work to integrate it into the client`s business model. Making better use of human resources is the key to success for companies that are laser-focused on priorities," concludes Howe.
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