Massaker.Me

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The concept of Time Compression was recently introduced to me by a client at the conclusion of a recent meeting. I was so enthralled by what he taught me that I did some more research that night and found several articles that further elaborated on the concept and what it means for business.

The first article I found, Technology’s Time Compression, is an excellent primer. At the bottom of that article are links to several other articles, all worth reading, but the two that were most interesting to me were It’s Time for Zero Time and We are Literally Trying to Stop Time.

What I got out of the latter two articles is that, at a minimum, we are trying to reach zero time, preferably negative time. The analogy of a track runner is quite appropriate. Track runners are constantly trying to reduce their times, with the ideal time being zero seconds. But can we achieve negative time? I don’t think a runner could, but we might able to as business owners. This is why business intelligence (BI) and dashboards are so hot right now. Dashboards are more than being able to see real time performance – they are about predicting the future and being ready to adapt to it instantly. You might argue that adapting instantly would be a definition of zero time. However, without proper business intelligence, you won’t be able to make the necessary predictions and subsequent preparations for that instantaneous switch. Negative Time is about being able predict when the change will come and changing at that precise moment (because you’re ready for it), versus reacting to the change once it has come to pass – where the first phase of the reaction is planning (what are we going to do?) and execution (doing it) both of which take time and make you late to the race.

Think about how this translates to business in terms of things like response time, resolution time, order time, processing time, or any other operational task where time is “consumed”.

In my business, Carceron, we monitor servers, networks and desktops in attempt to predict failure. These articles tell me that we can probably be doing a lot more with our monitoring and other business processes.

How can you achieve Negative Time in some of your business processes?

Instead of telling you what I think, I want to know what you all think. In a commodity type business, such as IT support, you look for any distinct advantage, any method of differentiation that you can to market your business. It’s tough because there are so many strategies. If you develop a new product or service that no one has in order to differentiate yourself, you will soon be copied and lose that edge. Re-bundle your services, same thing.

When I sat down with our customer advisory council about this, we were told our biggest distinction was our customer service. However, I am finding that difficult to market because I want the message to rise above the status of a platitude. When is the last time you went to a networking function only to hear people say the same old crap:

“We pride ourselves on customer service”

“We the most reliable, dependable, etc.”

blah, blah blah. It’s all talk unless you can prove it.

What I want to market, the story that I want to tell the world, is that we are the best at what we do. Something like:

“Everyone claims to have great customer service, but we can prove it!”

Some of the ideas I have had are:

• Promoting that we are the most recommended IT consulting firm on Linkedin.com (already using this)
• Customer Service Award from the Better Business Bureau or some other type of entity (we have a competitor that has done this

I’m not thrilled with the idea of awards because I think people today realize that many such awards are shallow victories. The chance of you winning an award these days seems to be more about who you know than actually possessing the merit to deserve the honor.

I need a way to prove that Carceron is the best at Customer service and I need a way to spread the word. Can you even market customer service?

P.S. If you have any other ideas around differentiation for a managed IT services business such as mine, I am all ears.

P.S.S. I’m not looking for a marketing consultant, so please don’t reply with a solicitation.

There is some common business wisdom running around that says “Focus on doing what your business does best and outsource the rest”. I could not agree more. When it comes to information technology, this philosophy can be quite hard to comply with because everyone has some level of expertise with IT in today’s world. However, being able to fix a simple printer issue for an employee is a far cry from un-corrupting an Exchange email server database. And yet, it can be the “simple printer repair”-type issues that can eat up so much of your time without you even realizing it, to say nothing of the more complex errors sprinkled throughout this continuum of “Do It Yourself” to “Oh My God, HELP ME, the server is on FIRE!”.

If you are a professional services firm, your product is time. It is “inventory” that once it passes is gone forever (much like an unused hotel room). As such, for employees whom are billable, they need to devote as much of the workday as possible to billable activities. None of this should be very surprising, but if you observe many professional services firms you’ll see these billable employees doing everything from accounting to human resources to IT. If you work in a professional services firm, I encourage you to keep a very detailed log of every minute of your work day to see for yourself. Odds are you are getting caught up in all kinds of stuff that is better handled by someone else… who isn’t billable.

For accounting: get a book keeper or outsourced CFO. For human resources: try a full service PEO firm such as HR Outsourcing. For information technology management: enter into an agreement with a managed IT services provider. Here is why:

1. MSPs Are More Cost Effective: You can outsource the entire support of your network for a flat fee, including: monitoring, unlimited helpdesk hours, anti-virus software, anti-spam service, email archival and more, for only a few dollars per user per day (or less than 10% of one billable hour per day – assumes a network of 100 or less workstations)
2. MSPs Make You More Productive: A managed IT services firm will generally charge a flat fee for services rendered. This means that your firm will be more productive because it is in the managed IT service provider’s best interest to keep the network fully operational (each trouble ticket or monitoring failure eats into their profit margin).
3. MSPs Provide More Value: MSPs frequently bundle many other services into their managed services offering such as monitoring, anti-virus software, anti-spam service, email archival, and off site backup.
4. MSPs Are Better Than an In-House IT Manager: Managed IT service providers cost about ½ – 1/3 the cost of a full time employee. Unlike employees, managed IT service providers don’t get sick, don’t take vacations, come with their own insurance if they screw up, come with their own suite of software and services (e.g. anti-virus, monitoring, etc.) and don’t need to be equipped with laptops, mobile phones, etc. Besides, why would you put something as crucial as your business network in the hands of one man? A managed services provider will also have more skills sets and experience at their disposal.
5. MSPs Are Better Than a One Man Band: As with the In-House IT Manager, “Why would you put something as crucial as your business network in the hands of one man”? There are many talented one-man IT companies. But… What if something happens to him? What if he gets mad at you?  He can’t very well monitor your network if he is helping another client. What if you have a network emergency and he is with another client and can’t come to you right away? A managed services provider will also have more skills sets and experience at their disposal.

In summary, outsourcing management of you IT and other areas of your business can create massive leverage and allow your firm to bill more time. Now who does not want that?

One of the frustrating parts of being in the IT business is quoting computers. I can’t tell you how many clients, prospects and colleagues I run across that complain about how much higher our prices are for computers relative to just going down to Best Buy or Office Depot and buying them off the shelf. It occurred to me to write an article to explain why this is the case as I suspect other computer resellers out there run into the same dilema. It’s not that our cost more, (in most cases we can be cheaper than a retailer), It’s that many people fail to remember all of the other factors that go into making a computer usable for production.

So, here goes:

When you buy that sub-$300 computer from your favorite store it generally comes with a Home Edition of whatever the current operating system is. The problem with this is that Home Edition Windows operating systems cannot connect to Windows domain servers (this is by design). You must have a business edition operating system to accomplish this, in the case of Vista those editions are Business, Enterprise or Ultimate (Enterprise is for larger companies under a Open Value license plan). So if you buy a PC with Home edition, you have to spend $100-$200 on purchasing the upgrade edition to take it from Home to a Business class edition operating system. You can probably do this yourself, but you might have an IT technician do it, which means an additional $100-$300 in labor.

Next: Almost everyone use Microsoft Office. These sub-$300 never come with Office (perhaps a 60 day trial, but that’s it). Office Basic (Word, Excel, & Outlook) will tack on an additional $100+ and the Small Business Edition (what most people use because it also has PowerPoint & Publisher) will tack on another $300. (Sadly, many businesses skirt this by installing the same Office licenses on every PC, which is obviously illegal).

Finally: A new monitor. this component is obviously optional if you are replacing an existing PC and simply want to use the existing monitor, but if you want a new system, the starting price is $150+.

Let’s summarize least and worst case scenarios:

Least Case: For example, replacing an old computer at your business

• Upgrade to Vista Home Premium to Vista Business +$100 (do installation yourself)
• Buy Office Basic $100
• No monitor, (you have a spare)
• Total: +$200

Worst Case: For example, adding a brand new computer that needs a full Office suite

• Upgrade to Vista Business +100
• Buy and install Office Small Business Ed. +$300
• Monitor +$150 (17′ LCD)
• Labor to install Vista Upgrade and Office software: +300
• TOTAL: +$550 w/o labor; +$850 w/labor

So a new PC, if purchased correctly, really costs more like $500 – $1000.

Don’t believe me? See for yourself. This is a Dell Inspiron that I created this morning. The Inspiron is their consumer class, absolute cheapest model (both in cost and quality).