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TSIA defines "services convergence" as:
The merging of previously independent service capabilities into organizational structures that improve the customer experience and reduce the cost to deliver.
As TSIA benchmarking substantiates, it has been the common industry practice to establish independent P&Ls for each one of these service lines. This approach forces each service line to optimize their cost structure within the revenue and profit objectives set by the company. Yes, some companies expect to make money on all of these service lines. Other companies are willing to provide services at cost to pull product revenues. Regardless the profit expectations, establishing distinct P&Ls for each service line forces a certain level of fiscal discipline. In multiple articles, TSIA has expanded on the virtues of defining a clear financial business model for a service line and managing to that target model. In general, the approach of establish Independent service P&Ls that align to well defined financial models has served the industry well. Until now.
This article provides the following insights:
Executive Director, TSIA
Publish Date: July 26, 2022
TSIA is well worth the investment. This is the one place where you can come and get a fusion of ideas that you can then marry up to the goals and objectives of your organization and boil that down into several actionable plans that you can implement over the next 6 months to a year.
Peg Rodarmel, SVP, Subscription Services, Infor
The Technology & Services Industry Association (TSIA) is dedicated to helping technology and services organizations large and small grow and advance in the technology industry. Find out how you can achieve success, too. Call us at (858) 674-5491 or we can call you.