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A Revenue Rocket perspective by CEO Mike Harvath.
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The topic of this issue is specialization, or why it's important for IT services executives to focus their companies on specific segments of the market and drive to positions of number 1 or 2 in those markets.
For history buffs, you'll know that the Principle of Specialization has deep roots, going back to ancient Greece and Plato. In The Republic, written in the 4th century B.C.E., Plato first postulated the idea that societies would be better served if everyone had to do what he was good at doing. Specifically, "the result, then, is that more plentiful and better-quality goods are more easily produced if each person does one thing for which he is naturally suited, does it at the right time, and is released from having to do any of the others."
Fast forward, and true to Plato's vision, specialization has taken root in all facets of human endeavor, none more so than professional services, including attorneys, architects, accountants, brokerage firms, engineers, etc. What is it about specialization that makes it such an opportune strategy for IT services?
We think it's because what professional service practitioners are selling is trust and credibility. To the question of who to trust when buying an infrequent product or service that is complicated and expensive, the answer is you trust authority and you trust evidence. The way you command authority and demonstrate evidence is by "doing the one thing for which you are naturally suited and doing no other," and doing it better than anyone else.
The other more practical reason, specific to IT services, is that technology buyers—your customers, the end-users of the products and services you sell—already a skeptical bunch, are taking a harder line when it comes to selecting the IT services companies entrusted with managing their technology investments. In an economic climate that looks to be jittery on the horizon, company executives are playing risk cards closer to their vests than ever before. The IT services companies that get their attention, and to whom they grant an audience and award their business, will be those that can speak from a position of authority, with unqualified expertise and demonstrable proof-of-performance.
In other words, they will listen to the experts, the specialists, because when all is said and done, they're buying the assurance that you can do unto them what you have done for others, with minimum fuss, bother and risk. More often than not they'll pay a premium for this insurance policy, and they'll thank you for helping them sleep better. All-in-all a pretty good day's work, don't you think?
Mike Harvath
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Upcoming Events:
Revenue Rocket CEO Mike Harvath to speak at the 2008 Microsoft Worldwide Partners Conference, July 7-10, 2008.
Following two well-attended and much valued presentations at the 2006 and 2007 Microsoft Worldwide Partners Conferences, Mike Harvath will once again be a featured speaker at the conference in Houston July 7-10, 2008. His presentation entitled, "Applications Managed Services: What’s All the Fuss About" will speak to how IT services executives can learn to migrate over 40% of their project-based application development consulting services revenues to a recurring revenue model.
Mike Harvath to deliver a webinar presentation July 1, 2008.
Mike will deliver a presentation entitled, "A Smarter Way to Work on Your Business and Accelerate Your Growth by Over 30% This Year." The premise of the presentation is that with demand slowing, consolidation intensifying and buyers becoming more selective, now is the time to think national instead of local, specialist instead of generalist, and embrace a full life cycle of service offerings in a more tightly-defined market. This presentation will zero in on strategies to help you work smarter and grow faster. For those interested in attending the webinar, please click HERE to register.
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