- The value chain of knowledge services, which produce digital output with no physical raw materials, is very different from those of manufacturing where a lot of effort goes into optimizing the supply chain and inventory level. Typical ERP systems are of little use in this segment, and to cater to this sector a complete rethinking is required
- The cost structure is also very different in the IP based output. The first copy costs the most, and the incremental copy is of marginal cost. The biggest assets include the company’s brand name and track record, and largest contributor to the company’s expenses is its people.
- Most knowledge service organizations are very
lean with very little headcount on the support side of the organization. There
is an effort among to deploy almost everyone in some or other billable project
whenever possible. This makes it difficult to implement a long rollout as
required in typical ERP implementations.
- The number of users varies, depending on active projects
and participants across partners, employees, consultants & client side
members. The traditional practice of charging for a fixed number of user
licenses in not practical in this kind of organizations.
- Knowledge services companies are usually lightly capitalized compared to manufacturing and usually resistant to ideas of big capital investments in systems.
- Integrated solutions specific to the creative & professional services industry needs are getting rolled out over the SaaS (Software-as-a-Service) model. The three key functions of Project Management, Sales & Account Management, and People & Skills Management integrated across the organization over an easy-to-use social layer make an ideal platform for these businesses.
- SaaS removes the requirement for capital expenditure and makes it easier to adopt automation under operational expenses, which can be directly attributed to the specific projects.
- SaaS and Cloud models allow an organization to extend the systems across the organization to employees, consultants and also across the globe. It offers much needed flexibility to assign and remove access/license to extended enterprise participants as per project needs.
- The ability to easily implement the solution across the organization without major training and roll out pains (unlike in ERP implementations before), is typical of SaaS & Cloud systems. Nowadays, you can get your organization start using in days if not in hours
powered systems accessed over mobile devices enables users to be on the top of
the operations without getting tied
down to corporate network and other
limitations & IT department costs.