top of page
Search

THE POWER OF PRODUCTIZING SERVICES WITH ILAN GENDELLMAN

Updated: Oct 18, 2023

Welcome back to another bitesize version of the Precursive Perspective Podcast. We selected this episode of the podcast to spotlight as the popularity of resources surrounding Productizing Services continues to grow. Guest Ilan Gendellman, Global Head of Professional Services at InfoBlox, a market leaders in computer and network security had the following insights to share on the subject...

You can listen to the full episode below.


 

The Effect of Productization on Professional Services


If you’ve followed us for any significant amount of time, you’ll know that we are big advocates of productization. It is the process of packaging your services to sell them like a product, which can help you achieve more consistent forecasting, accelerate growth and scaling, and can make you receive faster payments. For more information on productization, check out our guide here. Ilan testifies to the benefits of packaging services:


Jonathan: So turning attention now to one of the hot topics in the market is around productizing services or packaging services, depending on where you are at. And by the way, listeners, those are two different things. But if we look at this area for a moment, I know you had some different offerings and structured offerings and things like this in the past. So what were some of the triggers for the PS function when it comes to standing up new service offers or refining the current mix of services provided?


Ilan: Yeah, I'm doing that right now in defining good, better, best packages. I found that if you call them small, medium, and large, they're not as exciting as good, better, best. But the goal really is to figure out what is the MVP? I know everybody uses the term MVP. I like to use a different term called SLC. Small, lovable, and complete. What is the small, lovable, and complete use case that we can get customers to have to implement after they sign? Those are those packages. There are also other packages, like a resident architect that's super beneficial to the customer, but also to the company because the margins are great. Again, focusing on what do we need the customer to achieve and what we think the customer want to achieve and build an offering around that. Another thing that I've used in the past quite successfully is to bundle. Bundle support, bundle education, bundle services in one renewable package, and you can call whatever you want. I call it the pro package in past lives, and customers purchase it and they get better support SLAs, they get professional services packages, and they get education. So all in one, a discounted really great option to move forward.



 

The Key Metrics to Manage Performance in Professional Services


In any part of the business, metrics serve as important benchmarks, offering insight into various aspects of operations. By closely monitoring these metrics, professional service firms can make informed decisions, optimize resource utilization, and enhance client experiences, ultimately driving sustainable growth and excellence in service delivery.


Jonathan: When you think about operating excellence, just help our audience understand what are the metrics that matter when it comes to managing performance for you with a PS function?


Ilan: Operations are key to having a world-class professional service organization. You can't really have good operating organization without clear metrics. Those metrics that I use are bookings, they're billings, margin, utilization, of course. That's the standard. Everybody uses them. But also I'm looking at others, which is time to value. We measure when the project starts, when we can get to completion or to the first value, and of course, ASAP and NPS. There are other metrics that we look, but those are the main ones. Also looking at goodwill spend, which is free services that are provided. I've had a role in the past in which the spend on goodwill was enormous. I can go into that if you'd like and have some lessons learned. But tracking those dollars, those are dollars that in theory, some or most could have been billed and provided for free. That impacts the utilization, that impacts the billable utilization, impacts margin. So keep an eye on the goodwill spend as well.


 

The Role of Professional Services in the Technology Industry


Professional Services play a vital role in the technology industry, acting as a crucial bridge between cutting-edge innovations and practical implementation. These services encompass a spectrum of expertise, ranging from consulting and system integration to custom software development and technical support. By providing specialized knowledge and hands-on assistance, professional services enable businesses to effectively leverage technology, navigate complex systems, and stay competitive in an ever-evolving digital landscape. Ilan discusses how below the impact of professional services from his perspective.


Jonathan: You've been working in PS for a number of years. So as you take a step back, what should the role of PS be in the technology sector? Because I think for some it's ARR enablement. For some it's a well-run business within a business. It's revenue and margin. For others, it's all of the above. What's your perspective?


Ilan: Having worked in startups and more established, larger companies, I think in startups, when they just begin Series A, Series B, it's all about ARR. And often PS has a negative margin because it's really all about the outcomes and doing everything you can to make sure you get to those outcomes and the margin and utilization. That's a second priority. But what I found, and frankly, what I strongly believe in is that the PS organization has to be a well-run business, which is it has to pay for itself at a minimum. And if it has a 5%, 10 % roughly, and the margin, that's a good thing. So the question is, should PS be an AR driver or customer enabler or a well-run business? All the above. And it's hard. It's hard because sometimes you have conflicts. Sometimes you have to do goodwill or free projects to make customers successful because of a variety of issues. But I found that if you focus on outcomes for the customer, make sure that the SWs are really well defined as to what the scope is, and I can talk about that in more detail if you like, and what the expectations are, assumptions, role, responsibilities.


 

Looking for more valuable insight? See our other podcasts here, and be sure to check back regularly to see the latest episodes.


If you'd like to learn more about how Precursive can help you improve your customer success capabilities, book a demo today.

63 views0 comments

댓글


Find out more about the people and company. You can learn more about what makes us tick. 

 

We are passionate about changing the game for the world’s best services teams. 

 

Our mission is to help you improve time-to-value and make every customer a success story.

Asset 27.png

WHY PRECURSIVE.

About Us

Find out more about us including our mission, values and get to know the team

Salesforce Native

Give sales, services, support and customer success teams a single, shared view of the customer

Customers

Hear from customers on why they prefer Precursive to help them scale and grow their business

Professional Services Delivery

Our services team provides expertise in how the best companies improve services delivery

Support & Success Hub

Find the answer you need at our success-hub where you will find a mix of documentation, video assets and training materials

The Precursive Platform is 100% native to the Salesforce platform. Our solutions can be tailored to your needs and support a range of use cases.

 

Learn how we take the pain out of complex service delivery activities. 

 

Do the work, not the admin! 

Asset 22.png

Professional Services Automation

Increase operational efficiency with predictable services delivery and insights on performance

Project Management

Powerful project management capability designed to support high-velocity services delivery

Resource Management

Quickly mobilize your project teams, manage demand and avoid capacity crunches

Customer Workspace

An interactive community portal to collaborate, share dependencies and updates in real-time

Services Billing

Easily manage accurate professional services billing, raise invoices and track payments

Revenue Management

Recognize and forecast revenue with ease and accuracy

Precursive AI ✨

Leverage AI capabilities for better project management and boosting customer success. 

Asset 18.png

Get actionable tips and insight on customer onboarding, resource management and professional services automation via podcasts, blogs, whitepapers, product guide videos and our on-demand webinars.

Blog

A vault of knowledge from in-house & guest writers

Playbooks

Repeatable & scalable insight on a platter

Product Guides

Video guides for the Precursive Platform

Research

Industry trends and benchmarking

Podcast

Listen to all episodes of ‘Precursive Perspective’ with host Jonathan Corrie

Toolkits, templates, tips and more 

Events

Stay in the loop of what Precursive is up to

Webinars

Watch anytime, anywhere, on-demand

BY SOLUTION.

Asset 17.png
PROFESSIONAL SERVICES AUTOMATION

Manage people, projects and revenues in one place

Asset 20.png
RESOURCE MANAGEMENT

Staff projects faster with resource planning

Asset 21.png

PROJECT MANAGEMENT

Improve your implementation experience

Professional Services / Services Delivery

Organize work and collaborate with customers

IT & Professional Services