Accenture Outlook Delivering Profitable Services That Make Consumer Technologies Work

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Page 1: Accenture Outlook Delivering Profitable Services That Make Consumer Technologies Work

Discouraged. Confused. Impatient. According to the report “When Technology Fails” from the Pew Internet & American Life Project, those are just a few of the emotions consumers are having as they try to under-stand and take advantage of today’s information and communications technologies.

All those television commercials showing happy people using their mobile phones, computers, digital TVs and home networks? As we know, the reality often isn’t quite so perfect. Consumers are finding it increasingly difficult to set up and use new devices. They’re frus-trated when technology breaks down and they often need help from someone else to fix the problem, according to the Pew report.

However, these consumer challenges also present opportunities for communications service providers, device manufacturers and electronics retailers who understand consumers’ needs and can turn that understanding into a profitable service to help people navigate the complexities of the technology world.

Will consumers actually pay for such a service? Historically, many companies in electronics and tele-communications have answered “no” to that question. They have presumed that the support of consumer technologies is just overhead—one of the many costs of doing business. However, Accenture research sug-gests that increased frustration, combined with an ever-growing number of complex technologies, is driving consumers to look for, and pay, someone to make it all work.

Providing relevant and timely technology solutions to consumers is an opportunity for companies to drive new kinds of revenue growth. To be successful in the premium technology service business, however, provid-ers need the skilled resources and delivery models

to consistently deliver high-quality solutions at a reasonable cost.

A growing dependency on more complex technologiesMobile devices, televisions, DVD players, set-top boxes, video game consoles, digital cameras … the number and types of consumer electronic devices seems to grow each day. Ownership of Web-enabled mobile phones, for example, has more than tripled over the past couple of years.

Yet people are struggling to take advantage of these powerful technologies. Consumers are often bewil-dered by the product and service options available to them as well as by the challenges of getting different devices to work together inside the home.

Companies across the communications and electron-ics ecosystem can certainly help consumers with these challenges, but executives have been justifiably concerned about the associated costs and complexity of providing such a service. However, Accenture research suggests that instead of being a cost drain, technology support is emerging as a service that customers need—and for which they are willing to pay a premium.

Potential opportunities for an array of providersWhat type of company is best positioned to win the competition for premium technology services? In surveys, technology users have pointed to two types of companies—electronics firms and communications services providers—they would prefer to contact for help with their technology issues.

For example, original-equipment manufacturers and broadband providers already have close and trusted

OutlookPoint of View

December 2010, No. 3

Kurt Hogan, a senior executive in Accenture Communications & High Tech, is the Premium Technology Services lead. [email protected]

Communications & High Tech

Delivering profitable services that make consumer technologies workBy Kurt Hogan

Page 2: Accenture Outlook Delivering Profitable Services That Make Consumer Technologies Work

interactions with customers who have various kinds of ongoing dependencies. A broadband provider’s users rely upon the PC as a gateway to the service; a manufacturer provides warranty support for a device in the home. These are important touchpoints that can be capitalized on. Yet, while these service providers are well positioned from the standpoint of existing customer relationships, retailers are the ones often perceived as most effectively meeting con-sumer needs. The absence of an obvious consumer preference in the premium tech-nology services marketplace represents an opportunity for other types of providers to introduce new offerings to technology users.

One thing is clear: Consumers and business customers alike know they want to work with someone they trust. Quality and the ability to work on the terms of the user are critical factors that will create market leaders in premium technology services.

Challenges to improving and monetizing technical service Companies face numerous challenges in developing the capability to deliver premium technology services in an effective yet cost-efficient manner.

A complex technology environment: In many cases, the communications and high-tech marketplace is evolving either without standards or with competing standards. Because both open and proprietary systems exist in the marketplace simultaneously, what serving the needs of consumers really means is managing thousands of different technical configurations, each of which is a constantly moving target.

The breadth of services required: Due to the rapid rate at which the marketplace is evolving, it is difficult for most enterprises to maintain the comprehensive technology platform and network of professionals nec-essary to cost-effectively support such a capability. It becomes difficult to keep skills and tools fresh and relevant; standalone support technology or agent training can become dated as soon as the next new device is deployed.

More demanding customers: Driven in part by their confusion and frustration, consum-ers are becoming increasingly demanding when it comes to how their products and services are supported. Consumers want their technology to be up and running quickly, and then stay that way, without a great deal of time and effort on their part.

Ultimately, consumers are likely to cast their loyalties with companies capable of making things simple. People want easy-to-use devices—and when they need help, they want an easy and effective fix.

Keys to delivering effective premium technology servicesTechnology users—consumers and business customers alike—need consistent and high-quality support across a highly diverse and rapidly changing technology base. To date, traditional customer support models such as call centers or software-driven approaches have been unable to meet the full breadth of users’ technology support needs in a cost-effective manner.

Companies looking to step up to the premi-um technology services opportunity should consider the following:

Think service, not support. Customers want a convenient service to enable a broader capability such as a digital home or the integration of a range of devices, not just tech support for a particular product. Meeting the needs of consumers in today’s digital ecosystem means adopting a systems integration mindset.

Build on the advantages you already have. Approach your customers as part of the natural way they already interact with you; that is, extend the existing touchpoints you have with consumers. This can enhance your core value proposition and increase revenues from your existing base, even as you extend your service to new customers.

Adapt to the distinctive needs of consumers. Technology services must be tailored for each customer’s specific needs. Service offerings should not only accommo-date the broad range of technologies in use by consumers, but also be capable of han-dling the increasing complexity of new products and services.

Ensure high-quality service. A recent Accenture customer satisfaction survey found that consumers are more likely to switch providers because of poor customer service than they are for price reasons alone. To meet customers’ more exacting require-ments for quality and consistency of service, providers must be able to industrialize and scale their capabilities, producing consis-tently high-quality, cost-effective outcomes.

Seek external partners as required. For many companies, building and evolving an

industrial-strength technology services capability using internal resources may not be the right decision, due to the cost of building and maintaining expertise in the rapidly changing area of consumer technol-ogy. External partnerships can help a com-pany quickly develop a technology services capability that leverages its existing custom-er touchpoints.

For example, remote online services offered as part of a spectrum of external capabili-ties can enable a provider to offer timely and cost-effective repair for devices. Instead of service and sales workers repairing com-puters in person on site, highly trained, remotely located technicians can connect to and service computers from low-cost locations.

A new path to growthPremium technology services no longer have to be a cost drain for companies. More than ever, consumers need high-quality, cost-effective support for the broad array of net-worked devices that have become essential elements of their personal and professional lives. To tap into the technology services market, executives need to rethink their business models, structures, processes and systems so that they can help customers sort through the technical complexities of the digital lifestyle—and thus create a valu-able service that can extend the customer base and fuel revenue growth.

Outlook Point of ViewDecember 2010, No. 3Copyright © 2010 Accenture All rights reserved.

The Outlook Point of View series offers insights about leading trends and innovations across all industries.

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