The eight services sector mega trends you can not afford to ignore
Posted by Thomas Staven
Digital has shaped a new era of competition, customer expectations and user experience. For those that respond to the eight mega trends in services industry, the rewards will be considerable.
In the Everything as a Service (XaaS), no sector has been left untouched by disruption. The speed of technological adoption has gone from decades to years.
(In enterprise resource planning (ERP) terms, it’s gone from years to months.)
As we stand at this new frontier, the landscape of the services industry is radically transforming before our eyes. The problem is, not everyone has caught up. Many organizations are still using the legacy systems and traditional ways of working, with inflexible, disconnected processes.
We’ve categorized these changes into eight megatrends. For those that ignore them, the impact will be negative and widespread — reduced employee engagement, increased staff attrition; low productivity, ongoing high IT costs; lower customer value, lost trust and upset clients. Going forward, it will be harder to compete, remodel and respond to the changes.
Eight mega trends
Among the organizations that have made changes to their product/services, business model or pricing in response to these mega trends, three out of four have increased income, customer retention, product standardization and marketing personalization, according to research about XaaS.
Here are the eight services sector mega trends you can not afford to ignore.
1. Increased competition
The characteristics of the XaaS economy have enabled increased competition: lower barriers to entry, increased subscription usage and the fluid talent pool of the gig economy, supported by location independence and remote working.
2. New business models
In response to this, people-centered organizations are remodeling their businesses. The results are agile processes, faster delivery models, greater collaboration, and more innovative services.
3. Heightened client expectations
Contemporary, digital-first business models have allowed people-centered organizations to deliver better service, more personalization and more urgency. Just as well, because increased competition means every customer now expects this.
4. Regulation at the speed of digital
Regulators demand more transparency and accountability, more regularly. This has increased the complexity of reporting and integration requirements, making compliance more challenging for organizations without the right tools.
5. The battle for talent is harder to win
The same characteristics of XaaS which increased competition for customers (and lifted expectations from them) have also raised the bar for employers. To be attracted and retained, staff expect an enhanced user experience powered by emerging technologies.
6. People are better matched to demand
Successful people-centered organizations have solved the talent puzzle with the panoramic visibility over constantly changing data afforded by digital ERP. As a result they are achieving superior billable resource utilization rates, meeting heightened client expectations and reducing staff attrition.
7. Microservices have replaced megasuites
The role of ‘IT’ is being redefined; gone are the megasuites and monolithic, on-premises stacks. In their place are platforms with microservices architectures delivering loosely coupled, interoperable services across a common infrastructure with limitless extensibility using emerging technologies.
8. Automation is improving productivity everywhere
Artificial intelligence (AI) and machine learning is driving automation and boosting productivity, staff and customer satisfaction in every industry, from professional services organizations to higher education institutions; non-profits and public services bodies.
AI is only getting faster, more capable, and it’s driving the design of software experiences in our personal and professional lives.
Digital has shaped a new era of competition for customers and staff, revolutionizing user experience, customer service and ways of working and raising expectations from customers, staff and stakeholders.
For those that respond to these trends in the XaaS epoch and understand the changing needs of customers and staff, the rewards will be considerable.