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The Service Alignment Risk Factor









The Service Alignment Risk Factor: The Real Challenge for HP

Everyone understands that product companies like EMC and HP are aggressively traversing the services path. But there is a critical point. A point that is subtle and is currently being overlooked by the business press. By offering professional services, product companies introduce a new source of risk that they probably are not effectively managing.

What is this risk? The risk of creating and launching professional services offerings that are NOT aligned with the overall business objectives of the company. This is a risk that does not exist when a product company offers Support Services and Education Services, but this is a risk that is inherent when a company offers Professional Services. Why? Because unlike Support Services and Education Services that are centered on core products of the companies, Professional Services offerings are not as tightly aligned. Figure 3 demonstrates where the gap exists. I refer to this potential gap as the Services Alignment Risk Factor (or the SAR factor). This is the risk of creating professional service offerings that are not tightly aligned with the objectives of your company and do not correctly complement the rest of your company portfolio.

from the article: The Services Alignment Risk Factor: The Real Challenge for HP by Thomas E. Lah

Key Points:

This article introduces the concept that many product companies underestimate the hidden risk of creating professional service offerings that are not aligned with the core objectives of the company. Key points include:

  • Introduction of the Service Alignment Risk Factor
  • Overview of 5 types of service offerings made by product companies
  • EMC: Example of a focused solution portfolio
  • HP: Example of a diluted service portfolio
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