Book review: strategies for service providers.

TITLE: Service Provider Strategy: Proven Secrets of XSPs

AUTHOR: Anne M. Burris

ISBN: 0-130-42008-5

PUBLISHER: Prentice Hall PTR 

PUBLICATION DATE: 2002

LENGTH: 334 pages

PRICE: $44.99

SOURCES: Amazon.com (www.amazon.com)

Service providers come in all shapes and sizes. A service provider may run your mailroom, or microfilm your records, or store your boxes. A service provider in today's Internet-based environment might be an application service provider (ASP), a content service provider (CSP), or an Internet service provider (ISP). According to Anne Burris, who is worldwide xSP strategy manager for Hewlett-Packard, the term "xSP" is broad enough to cover them all: "An xSP is a service provider, coming from any industry, no matter the specialty, that offers goods or services over the Internet for a fee."

What is interesting about Service Provider Strategy is that although it begins by describing ISPs, it quickly points out that the key factors for xSP success are the same as those for traditional service bureaus. Primary to success is finding a company with skills that are critical to an organization's business strategy that the organization does not have available already. The main difference between xSPs and traditional service bureaus is the technology used to provide the service, but the principles discussed in this book are relevant to both.

Service Provider Strategy provides a high-level overview of key business considerations and is written primarily for individuals seeking to enter the service provider industry. It identifies seven operational challenges for the prospective service provider: partnerships/ alliances, organizational structures, entering the market, service delivery, customer care, billing, and infrastructure/availability. It makes liberal use of case studies and includes checklists of questions to consider. The case studies do tend to focus on Internet-enabled service providers. However, it is easy enough to make a comparison to more traditional service providers.

RIM professionals may find two chapters particularly interesting. The first is on partnering and alliances. A checklist provides a good starting point for assessing potential partners and deciding what should be included in the service level agreement. It stresses the point that the relationship must be managed--it is not enough to put a contract into place and assume everything will work smoothly. Both partners must share goals, have the same understanding of the services provided, and agree to the measurements that will be used in monitoring the services and results. Another key point is to identify a method of conflict resolution--if one of the partners fails to provide the expected service, what steps can be taken (short of exiting the contract altogether) to resolve the situation? Another key point is to recognize that both service needs and company strategies change. The result may be a need to terminate the partnership. Therefore, an exit strategy that is fair to both companies should be considered early on. For anyone entering into a contract with a microfilm service bureau or a commercial storage vendor, this chapter and its checklist will be a useful guide.

The chapter on customer care is also of interest. Information management receives the broadest discussion here as a part of the customer relationship management (CRM) trend in business. The goal of CRM is to tie together front- and back-office functions to give a comprehensive view of the customer, resulting in a true competitive advantage.

Unfortunately, because the author has not identified information management as a key operational challenge, the RIM professional will be disappointed in the brief discussion of information management concerns. For example, there is little or no acknowledgement of some critical issues such as:

1. Data security--assuring customers that their data is safe from unauthorized access

2. Limitations on access--assuring customers that only authorized company individuals will be able to retrieve data

3. Data ownership--assuring customers that data will not be sold or given to outside parties without specific permission

4. Privacy--assuring customers that customer privacy will be protected according to the company's requirements

Because these issues are equally important to building trust and loyalty between companies and customers, it is disappointing that they do not receive broader treatment in this book. However, there is one other way for the RIM professional to use this book. RIM professionals should think about their RIM program as a business to be managed. They are, after all, service providers for their companies. If their program is a business, they will be looking at the most cost-effective ways to provide the service. Maybe this does mean outsourcing some functions that are too expensive to run in-house. If that is the case, they will be seeking partners to provide excellent service. They will want to draft contracts that identify clear measurements and expectations for what the service provider will do.

Another aspect of managing the RIM program as a business is gaining and retaining customer loyalty. Wouldn't it be easier if customers came to RIM managers when they wanted to transfer records, rather than RIM managers being in the position of having to force compliance? In this light, the discussion of customer service can be useful.

The author positions this book as a high-level overview. It covers a lot of territory and provides many examples, checklists, and even a sample business plan for the potential service provider. The flip side is that none of the operational challenges are explored in-depth. The reader who is serious about starting such a business will need to find other, more detailed resources. He or she also will need the advice of expert counsel in most areas. In spite of its deficiencies, this book can be thought provoking for the RIM professional.

Diane Carlisle, CRM, is Director of the Professional Resources Department at ARMA International. She may be contacted at [e-mail].