How To Run A Managed Services Business
Managed Services
How to Structure Your Managed Services Organization
iii min. read
By George Humphrey
One of the top challenges facing today'southward managed service providers is the shape and structure of their managed services system. Whether you're starting or will be starting a new MS business in the near time to come, here'due south an example of an ideal MS organization structure and the functions of each of the key roles.
MS Organisation Structure and Key Functions
The most common, cadre functions of a managed services arrangement are fabricated up of product direction (offer and strategy), sales, marketing, business operations, service delivery and supporting functions. These supporting functions include, just are non limited to, finance, HR, procurement/sourcing, legal, etc. This is how your MS org structure should look:
Production Management
At the nucleus of the MS organization is product management, which is the primary interface into all of the functions required to sustain the success of a managed service business. Product management is responsible for defining an organization'due south business strategy and managing its execution, but also defining offers and building the business organization program for those offers. They must have, at a minimum, basic knowledge of all facets of the MS business, as they need to work with all of the other departments to walk through the entire MS offering journey, from planning stages to market.
Marketing
Though having a marketing function for your MS org might seem like a given, marketing managed services is different than marketing any other technology or service. In a production solution, hardware or software, you're marketing capabilities of a production, such equally features, functions, technical attributes, etc. Managed services, however, is more than tied to outcomes, such as hazard aversion, reduced total cost of ownership, improved uptime, accelerated return on investment, financial predictability of operating expenses, and then on. You will need a marketing team that can fairly communicate the difference betwixt a product P&L and a managed services P&L to other departments and ensure that customer outcomes are at the forefront of marketing efforts.
Sales
Similar marketing, selling managed services is significantly different than selling hardware, software, or traditional services. This is because, different selling technology, the CIO of a company is unremarkablynot the key decision maker, merely a key influencer. Purchasing managed services can be a very strategic decision for a corporation, and the key determination maker is frequently the COO, CFO, and even the CEO. While applied science is withal a gene, it's the intended outcome of the implementation and performance of that technology that can make or pause a deal, which makes them far more circuitous and can take longer to close. Your managed services sales team needs to be able to establish C-Level relationships, demonstrate financial acuity, and sympathize the long-term business goals of their client, too as understand how engineering and operational outsourcing will impact the concern strategy and goals of their customer.
Service Delivery
One time the bargain is closed and the customer is on-boarded, it'south time for the delivery team to accept over. The success of the deal is often determined with the first 90 days of activation, so a strong, process-oriented, scalable operation dedicated to outcomes is incredibly of import. Once your client is under active direction, information technology'south the "Twenty-four hour period 2" team's turn, which includes a service desk (level 1 engineer), and level 2, iii, and 4 engineers. Fortunately, your service desk-bound or level ii technology team tin can resolve most initial customer incidents. Nevertheless, if an effect become chronic or hard to resolve and/or reproduce, the issue is and so handed over to level 3 and level four engineering, which typically consists of your most highly skilled, senior engineers who possess an in-depth noesis of both the products and service portfolio supported by the managed offering.
Business Operations
Business operations handles the non-technical aspects of a managed services organization, such every bit P&L governance, budget planning, resource direction, client management (if not part of commitment), contracting (renewals, upselling), vendor and supplier management and forecasting, only to name some examples. Given the list of responsibilities of this team, it is important that individuals in this role possess good financial judgment. Almost managed services organizations work inside companies that are primarily focused on production revenue, so understanding how different the fiscal governance of MS is compared to products, and even other service lines, is extremely beneficial.
As well, as a result of the need for a different client and contract governance model, many managed service providers have developed a squad inside their organization that is responsible for the caring and feeding of clients. Your business operations team should know that how a customer feels most the performance of the managed service provider is simply every bit important as the data behind the actual technical operation, which will allow them to brand informed decisions based on overall satisfaction.
July 23, 2015
Near Author George Humphrey
George Humphrey is the vice president and managing director of service and commitment research and advisory for TSIA. Given his all-encompassing background, George also directly supports the managed services inquiry practice. He is a networking and communications manufacture veteran with over 25+ years of experience. Throughout his career, he has held several leadership positions in managed services, including global strategy, product line management, marketing, operations, and client management.
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Source: https://www.tsia.com/blog/how-to-structure-your-managed-services-organization
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