Service as a P&L debate: Panel discussion at Service Management expo

by NIck Frank on June 28, 2014

Nick at SMe 2014 - PanelI took part in a panel debate on the Service management Expo in London this week. Great fun, especially as fellow panelist, Spencer Earp VP Service Max and Glyn Dodds, MD of Centrex are so knowledgeable about the trends in service. Hosted by Kris Oldland from FSN, we were talking about the influence of technology on driving service towards being a profit centre. We all agreed that for service transformation to flourish, the revenue and cost of the service business need to be extremely transparent and accessible. For many businesses this has meant creating an internal profit centre and for others a stand-alone P&L. But at the end these are tactics that demonstrate the value the service business can bring, as well as giving the service people teams a business focus and meaning.

As for technology? Well the dramatic changes we have seen in the power of service management support tools is definitely helping to drive visibility and transparency. But personally I think we are only just at the beginning of the journey. The digitalisation of products and the internet is enabling a new world where products and services will start to blur. Look at the Aircraft Engine for Rolls Royce, where customers pay for power when they need it. Where does the product end and the service start?  This Internet of Things (and Services) is a really exciting time and will change service in ways we can not imagine. I personally can’t wait to see what will happen in the next 5 years. One thing is for sure, it will be a roller coaster. That’s my take on it, but for anther perspective look at Service Max blog site

Earlier in the week I also presented research I have done with colleagues from Noventum in which we see that the successful high growth companies see Services as a part of the solution to growth and not as a challenge in its own right. And that these companies are also more likely to offer more advanced services such as integrated solutions and customer process improvement. For more detail follow this link

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