In my last blog post, SRP and PSA — There IS a Difference, I discussed the major differences between Services Resource Planning (SRP) and Professional Services Automation (PSA). In short, SRP addresses the capacity and demand issues that drive resource decisions and revenue forecasting, whereas PSA focuses more on the mechanics that drive the quote to cash process, such as order processing, billing, and so on. Both are needed to effectively run a project-based service organization. Most service-driven organizations have the front-end and back-end “mechanics” system (often PSA or a customized ERP system) in place but few have mastered synchronizing demand with delivery capacity. Perhaps this is why so many service-driven organizations struggle when the inevitable swings in demand happen, sending them scurrying to get a handle on their resource situation.
To begin with, let’s look at the typical pain points service-driven organizations tend to experience.
Service-Driven Challenges
In speaking with numerous Operations VPs and staffing directors about their business challenges, the following points hold true in virtually every organization:
- Des prévisions peu fiables signifient que la demande entrante est toujours une surprise.
- Poor visibility of resource utilization; to find the resource information they need they must look in multiple spreadsheets or make multiple phone calls
- Des ressources spécialisées et plus coûteuses sont utilisées pour des engagements et des activités à faible marge.
- Les méthodes d'exécution des projets sont incohérentes, le gaspillage des ressources en matière de remaniement entraîne souvent des retards de livraison et des problèmes de satisfaction du client.
For these organizations, it is critical to be able to optimize the global resource pools because the resources are the business. Specifically, service-driven businesses need to be able to accurately synchronize demand with delivery capacity. They must drive operational excellence and maximize their revenue by optimizing the timing vs. availability vs. profitability equation to improve the management of their global resource pools. The last piece of the puzzle is to establish financial transparency into the true cost of service and project delivery to improve forecasts and develop reliable proposals for future projects. Without these items in place, all of which SRP helps address, the organization is at a disadvantage.
In my next post, we will look at a few real world examples of how different services organizations have struggled with the similar challenges and how Services Resource Planning is changing the way they do business. For more information about Services Resource Planning, download a copy of the latest IDC Executive Brief titled, Service Resource Planning: Systems for Effectively Managing a Project-based Business.
I want to hear from you! What are some of your challenges your organization is facing? Share your experiences by leaving a comment below.
Related post: SRP and PSA — There IS a Difference
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