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Issue 60

The job of the IT Consultant / Advisor in the age of Digital Transformation

Mihai Tătăran
Microsoft MVP, Co-organizator ITCamp, GM @ Avaelgo
MANAGEMENT

First of all I should begin with what I do: I manage a 40+ IT consulting, training and software development company, and I work as trainer and consultant for customers in Romania and abroad, dealing mostly with Cloud technology. This article is based on what we do here in Avaelgo.

To set the context, I believe the changes happening in the IT consultant's job are influenced by at least 3 factors:

Today's IT world is evolving very fast and is getting more complex. To quote Mr. Nadella (Microsoft CEO) "Our industry does not respect tradition - it only respects innovation." We are living times with amazing developments in our industry: Cloud, Machine Learning, Artificial Intelligence, Virtual Reality, to name just a few - all game changers, all paradigm shifters in the way business is conducted.

Another aspect is the people involved: an estimate of Gartner says that by 2020 we will have 10 times more servers and 1.5 times more people in IT, which indicates that the current lack of qualified personnel will become deeper and more dramatic. While, at a first glance, this might seem insurmontable problem, this issue actually paves the way to innovation and automation at other levels, including the way we manage large software infrastructures.

The third factor I mentioned is the Customer. Due to technological evolution (e.g. the internet) customers are much more informed about their needs than 10 years ago. A typical buyer journey has changed so dramatically, that by the time customers engage with us as potential suppliers, they have already made up their mind in a percentage of more than 50%.

This means the salesman does not have the upper hand anymore, there is no information asymmetry, there is a lesser chance to "influence" the Customer. This also brings a challenge: what if the Customer is poorly or wrongly informed?

The Consultant's Journey

The consultant's job is not a technical job only, and it never was, but the non-technical aspect is increasing its value more and more. What I propose here is to discuss in detail what a Consultant might do in the real world.

I marked, with a different color, what we typically believe the Consultant's job to be. Now, I would like to explore the other aspects as well.

Value creation

All products and services start here. We sometimes assume what the Customer wants, but we need to better define how we will make it, how we will deliver it, and what will make us special so that the Customer will buy from us. One of the key elements, at this stage, would be to define the Differentiated Value Proposition. Here is a simple schema specifying how to do this:

Marketing: Outbound vs Inbound

Because customer have changed, and they are much more informed than 10 years ago, and because no-one has the time and will to be interrupted with cold calls from desperate salespeople trying to sell something, we also need to approach marketing in a different way. It needs to change from Outbound, where we call out to whoever is at the end of the communication channel when we want, with activities like: telesales, newsletters, user events, etc. to Inbound - try to attract Customers (when they want, on their own time and rules) by posting relevant content about their needs we can fulfill, with actions like: blog posts, videos, slides, social media, conferences presentations, etc.

While both Value Creation and Marketing are marketing jobs, the Consultant can be of great help, because they know best what the company is actually doing during the IT projects. Therefore, the tasks needed from the Consultant would be: write articles, produce short videos, make conference presentations - all about things they encounter during the real projects.

Sales

Many of us already expect that the Consultant would help during the sales phase, with activities like: demos, technical presentations, proof of concepts, etc. What I value a lot in a Consultant is the ability to sell: convince the customer our solution or approach responds better to the Customer's problems.

Now, a huge problem for a Consultant with technical background is that, when trying to sell, the Consultant (and I have done it a lot of times as well) sometimes goes to the Customer and talks about the product or service featuress. Consultants speak of things like: "the bandwith is this or that, the delay is 40 miliseconds" - you get the picture. The Customer couldn't care less about product features: yes, people in the Customer's organization actually care about the delay between their premises and your datacenter, but that is less important than the initial discussion. In other words, there is too much detail for the managers running the business you are trying to help. What they value are things like:

A much better approach to the Customer would be to talk avout Values, as opposed to talking about product Attributes. Here is an example when talking about Cloud projects:

Another very interesting aspect relevant to sales is the Consultant's profile. Thanks to my friends from http://consalta.si/ (a Cloud marketing and sales organization) I found out that there are 5 behavioural patterns of a person, and only one of them has clear advantage. They are:

If you think the relationship builder has the biggest chance to bring more sales, you are like me, and you are wrong. I also thought this in the beginning and found out the hard way that the relationship builder is great as an Account Manager (whose primary task is to keep the Customer happy), but not as a Consultant helping sales. The best would be the challenger:

Delivery

Finally, the Consultant has to work, to do the actual project. This is nothing new to you, so I won't explore this phase. We should always keep in mind, though, that we are not building a project (whatever that might be). We are rather delivering a service to our customer. A very good description of what I am saying here can be found in Peter Leeson's presentation at ITCamp 2017 called "Assembly of Japanese Bicycles Requires Great Peace of Mind".

Recurrence

The project is done, long live the project!

Because of the technology advancements, partially described in the introduction, there is more and more need for companies to buy the IT projects we deliver in a recurrent model as opposed to a transactional model, which dominated the world since the emergence of server Operating Systems, ERP, enterprise scale Database Servers, etc.

Why? IT is being purchased on a recurrent, subcription model basis more an more. It is, by far, more attractive for the Customer to pay as they use (operational expenditure) than purchase in advance inside a multi-year contract (capital expenditure), which also means blocking the price at a certain level without benefiting from the price reduction the big IT vendors make every few months nowadays. There are business models through which a large enterprise can purchase Cloud with a monthly invoice, paying as they use, getting the new prices as the vendor reduces them, and not having to be blocked in a contract for years.

Probably one of the most important ways to make sure a services company stays relevant in a recurrent model is to become a true Advisor. I define an Advisor through these attributes:

This model is pretty new, but it is catching, especially because even the Customer knows that the best IT resources for very specific needs are not in their organization, but outside, in the companies which are specialized in those niches.

Conclusion

Our opinion here at Avaelgo is that the Consultant's job, whom we might now call Advisor, is much more complex than it used to be. I cannot end this better but with the journey from nothing really to recurring business:

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