3 Steps to Managed Services Selling

• … Level 2-type services but across a broad array of technology areas, allowing clients to leverage a single provider to simplify operations and engagement while receiving a full range of infrastructure and application monitoring and support services in a hosted or XaaS mode.
• Technology-enabled advanced managed services: Level 4 adds analysis and support capabilities by leveraging new emerging technologies in APM, data analytics, IoT, DevOps and advanced security, providing deep analysis and development capabilities to anticipate and better respond to critical situations.

How do I determine where to focus? While the evolutionary path looks clean and logical on paper, it can be overwhelming to consider moving down the managed-services path. Where should you start, given limited resources? There are four elements to consider when determining the best direction for your company:

1. Who are my current customers? Evaluate your current base to see where you have strong relationships. Segment customers, and develop slates of managed services that meet particular needs. Consider investment/ROI, and ask yourself: “What are all the services my customers want today and tomorrow?” Make a list. Some of the items on that list may be far afield from your current offerings, while some may be close to the core. Your direction must be practical, it must logical and it must consider where customers will give you permission to play.
2. What managed service areas are adjacent to my core? If a new managed-services space is too far afield from your core capabilities, current customers usually won’t move along into the new space. That’s why it makes sense to focus initially on areas adjacent to the core. This expansion of capabilities can happen through acquisition, through adding on skills or other steps that enable a logical, step-wise progression of capability. Typically, in building out your core capability, close linkage and active dialogue between the professional services team and the nucleus of your managed services team will be important.
3. What existing capability can I build on? For example, you may have a group that’s very good at providing basic reactive customer support and has naturally started to extend their knowledge into proactive customer support. Build on and formalize that capability.
4. What does the business case look like? You know your likely customers, you’ve looked at the managed services areas that are close to your core, and you’ve got a group you can build around. Now the question is, can the current sales team sell these services? What’s the business model? New services require investment — investment in people, in tools, in capabilities and more. Putting together a business plan for the most promising areas can clarify which is the right direction for your company. Typically, the areas with the potential to deliver the highest ROI are the most promising, though also look at future potential upside.

How do I execute the move to managed services? Once you decide where to focus, the next step is to create a road map that will get you from where you are today to where you want to be on the managed-services spectrum. Be very clear on the specific steps that must be launched sequentially to get from point A to point B. This isn’t just about service evolution; it also involves an evolution of skill sets, technology, people, process (how do I organize around this?) and, importantly, …