Hardly any other sector employs as many people worldwide as the service industry. Unit4 has recognized this and develops software solutions specifically for service companies in the B2B sector. But what makes these companies special and why are their business models so unique?
Service companies (also known as professional service organizations or PSOs) usually work on a project basis and generally tackle a specific problem or challenge for their customers - usually other companies. This requires special training and expertise. Service providers, such as architects, accountants, engineers, consultants and financial service providers, therefore need experts who have specific and often rare skills to support their clients with the necessary expertise. After all, they want to satisfy their customers so that they turn to the company again and again and recommend it to others.
In short, service providers use the expertise of their employees to provide their customers with advice and assistance - and thus make a profit.
Key characteristics of service companies:
Employees are the most valuable asset
Service companies rely on the expertise of their employees. They therefore need processes to attract, train and retain top employees. After all, it is the top performers who satisfy their customers and generate profits. Service providers must therefore create an excellent working environment for their employees in order to offer their customers outstanding service.
Strong leadership
There are few industries where leadership is as important as in the service sector. This essentially includes strategy development, corporate planning, goal setting and management. Top executives are educated, intelligent and used to taking the initiative. They will therefore not stay long in a company with below-average managers. SPI therefore advises companies to continuously develop their managers and employees. Potential clients will judge the leadership quality of service providers based on their business practices, processes and consultants' skills. The top performing companies in the industry are successful precisely because their leaders are highly skilled and effective organizational talents, foster a collaborative work environment, focus on innovation and provide strategic clarity throughout the organization.
Marketing experts
Due to the intangible nature of their offering, service providers often struggle to market their services, especially in highly competitive markets. How can you offer your services attractively? How do you differentiate yourself from your competitors? How do you communicate the benefits of your services, your approach and your employees? The challenges are completely different from those faced by product-oriented companies. For service companies, it is essential to stand out from the competition and present all the benefits to potential customers in a convincing way. One way to do this is to optimize back-office technology. This ensures that internal processes are smooth, efficient and transparent. In this way, you ensure an optimized customer experience and are always one step ahead of your competitors.
Marketing of services
Services are marketed in a completely different way to products. Service companies need to know their customers' challenges inside out before they offer them a solution. On the one hand, they need to know how to solve their customer's problem with a customized solution. Secondly, they need to effectively convince their customers that they are better than everyone else. Only then will service providers be able to demonstrate the added value they can deliver from start to finish.
Flexible pricing models
"Pricing strategy is more difficult in the service sector than in product-oriented industries." This is because many factors influence pricing: market demand, competition, service model, project complexity and also the brand. Service providers have to be flexible. Every tender is an opportunity for them to rethink their pricing strategy, their model and their prices. They can offer a fixed price per project or result or use the classic time and material model. But most service companies will realize that unbillable hours are wasted hours. That's why reporting and invoicing need to be extremely precise.
It's obvious: service companies differ enormously from product manufacturing companies. So how can you adapt your processes accordingly?
Technology
Project-oriented working models require long-term customer relationships. Adherence to deadlines and budgets play a very important role here. In addition, those providing these services must have access to data, analytics and workflow models that enable them to deliver world-class work and satisfy their clients.
Service organizations tend to use a variety of systems to track time spent on projects, track project expenses, schedule tasks, record different hourly or daily rates, invoice clients and track tasks to be completed. Service providers need to have an overview of how busy their teams are, how profitable each project is and how many hours are unbilled. They also need to keep an eye on budget and performance.
This is much easier to do when managers have access to the necessary data, reports and even the smallest details. Outdated systems, spreadsheets or manual paper-based processes are prone to human error, double data entry and data silos. If service companies want to satisfy their customers, they will not be able to avoid an integrated ERP solution. Anyone who looks at the various features of an ERP solution will quickly realize that a flexible system ensures greater agility and productivity while reducing disruption and downtime. Changes are no problem for an ERP, so you can act with agility at all times.
More freedom for employees
How can managers ensure that their greatest asset - their employees - are always motivated and able to give their absolute best? To do this, they need to keep an eye on both the present and the future. With the right financial planning and analysis (FP&A) solution, you can get a better overview of your figures. This will give you valuable insights and free up your teams so they have more time to add value to your business. The right tools for HCM and talent management also provide important information, ensuring that your employees feel heard and valued.
Automation is the magic word
By automating processes in a targeted way, service companies give their employees the chance to focus on what really matters: the success of the company and their own development. With our Unit4 PSA solution, you can stay ahead of the competition and focus on customer and employee satisfaction by establishing seamless and intelligent processes. A single application can manage and optimize your entire business processes from start to finish. The solution allows you to easily track communications, costs, expenses and billable hours for each project. This allows you to respond to requests in a timely manner, ensure higher utilization rates and proactively identify and capitalize on new business opportunities. PSA also provides you with key insights into the performance of the entire business, allowing you to make more accurate and flexible forecasts for the future.
Service companies (also known as professional service organizations or PSOs) usually work on a project basis and generally tackle a specific problem or challenge for their customers - usually other companies. This requires special training and expertise. Service providers, such as architects, accountants, engineers, consultants and financial service providers, therefore need experts who have specific and often rare skills to support their clients with the necessary expertise. After all, they want to satisfy their customers so that they turn to the company again and again and recommend it to others.
In short, service providers use the expertise of their employees to provide their customers with advice and assistance - and thus make a profit.
Key characteristics of service companies:
Employees are the most valuable asset
Service companies rely on the expertise of their employees. They therefore need processes to attract, train and retain top employees. After all, it is the top performers who satisfy their customers and generate profits. Service providers must therefore create an excellent working environment for their employees in order to offer their customers outstanding service.
Strong leadership
There are few industries where leadership is as important as in the service sector. This essentially includes strategy development, corporate planning, goal setting and management. Top executives are educated, intelligent and used to taking the initiative. They will therefore not stay long in a company with below-average managers. SPI therefore advises companies to continuously develop their managers and employees. Potential clients will judge the leadership quality of service providers based on their business practices, processes and consultants' skills. The top performing companies in the industry are successful precisely because their leaders are highly skilled and effective organizational talents, foster a collaborative work environment, focus on innovation and provide strategic clarity throughout the organization.
Marketing experts
Due to the intangible nature of their offering, service providers often struggle to market their services, especially in highly competitive markets. How can you offer your services attractively? How do you differentiate yourself from your competitors? How do you communicate the benefits of your services, your approach and your employees? The challenges are completely different from those faced by product-oriented companies. For service companies, it is essential to stand out from the competition and present all the benefits to potential customers in a convincing way. One way to do this is to optimize back-office technology. This ensures that internal processes are smooth, efficient and transparent. In this way, you ensure an optimized customer experience and are always one step ahead of your competitors.
Marketing of services
Services are marketed in a completely different way to products. Service companies need to know their customers' challenges inside out before they offer them a solution. On the one hand, they need to know how to solve their customer's problem with a customized solution. Secondly, they need to effectively convince their customers that they are better than everyone else. Only then will service providers be able to demonstrate the added value they can deliver from start to finish.
Flexible pricing models
"Pricing strategy is more difficult in the service sector than in product-oriented industries." This is because many factors influence pricing: market demand, competition, service model, project complexity and also the brand. Service providers have to be flexible. Every tender is an opportunity for them to rethink their pricing strategy, their model and their prices. They can offer a fixed price per project or result or use the classic time and material model. But most service companies will realize that unbillable hours are wasted hours. That's why reporting and invoicing need to be extremely precise.
It's obvious: service companies differ enormously from product manufacturing companies. So how can you adapt your processes accordingly?
Technology
Project-oriented working models require long-term customer relationships. Adherence to deadlines and budgets play a very important role here. In addition, those providing these services must have access to data, analytics and workflow models that enable them to deliver world-class work and satisfy their clients.
Service organizations tend to use a variety of systems to track time spent on projects, track project expenses, schedule tasks, record different hourly or daily rates, invoice clients and track tasks to be completed. Service providers need to have an overview of how busy their teams are, how profitable each project is and how many hours are unbilled. They also need to keep an eye on budget and performance.
This is much easier to do when managers have access to the necessary data, reports and even the smallest details. Outdated systems, spreadsheets or manual paper-based processes are prone to human error, double data entry and data silos. If service companies want to satisfy their customers, they will not be able to avoid an integrated ERP solution. Anyone who looks at the various features of an ERP solution will quickly realize that a flexible system ensures greater agility and productivity while reducing disruption and downtime. Changes are no problem for an ERP, so you can act with agility at all times.
More freedom for employees
How can managers ensure that their greatest asset - their employees - are always motivated and able to give their absolute best? To do this, they need to keep an eye on both the present and the future. With the right financial planning and analysis (FP&A) solution, you can get a better overview of your figures. This will give you valuable insights and free up your teams so they have more time to add value to your business. The right tools for HCM and talent management also provide important information, ensuring that your employees feel heard and valued.
Automation is the magic word
By automating processes in a targeted way, service companies give their employees the chance to focus on what really matters: the success of the company and their own development. With our Unit4 PSA solution, you can stay ahead of the competition and focus on customer and employee satisfaction by establishing seamless and intelligent processes. A single application can manage and optimize your entire business processes from start to finish. The solution allows you to easily track communications, costs, expenses and billable hours for each project. This allows you to respond to requests in a timely manner, ensure higher utilization rates and proactively identify and capitalize on new business opportunities. PSA also provides you with key insights into the performance of the entire business, allowing you to make more accurate and flexible forecasts for the future.