The intangible benefits of an end to end PSA solution are many and easy to understand. Placing all your business in one place just has to make life easier, improve data quality and unify your processes. The tangible benefits however, are a little harder to get to grips with.
But first, let’s think through the investment side before we get carried away with how wonderful life will be.
Implementing an end to end PSA solution is a project, make no mistake. The size of the project will depend on how large and/or complex the company is, how good its data is, how many existing solutions need to be decommissioned and how much process change is needed to make the best use of the new PSA tool.
These points need to be understood and the price of doing this estimated to ensure you have the reality of what you are embarking on agreed and supported across the organisation. Obviously, add in the price of the new software and any professional services assistance you will need to make the project a success and you have one side of the ROI calculation.
Now the good bit, where does the tangible return on that investment come from?
By adopting Harmony, we would expect all our customers to make tangible returns in many of the following areas:
- There should be some direct and immediate savings from existing software being replaced to offset the cost of the new PSA tool. If you are replacing multiple platforms, this can easily exceed the cost of the new solution
- The straight-through nature of Harmony’s quote to cash processing will help you reduce back-office costs. We’re not saying you will make material headcount savings, but you will see an increase in stretch, the ability to take on more work without increasing non-billable headcount
- You will increase your billable time. Harmony not only makes it easier to record and bill correctly, it encourages your employees to assist you in this and help prevent revenue leakage (doing work for free). You will bill more and miss less
- Indexation on contract renewals. A common issue we see is companies not having a tight grip on their indexation rights in contracts. Harmony forces you to embed these rights in the contract modelling on the order and then prompts you to complete the indexation rate at the right time. You can’t forget, and as a result, you will bill more
- Improved cash-flow. However you look at it, cash-flow costs you money. Harmony’s just-in-time billing of recurring contracts means you bill everything at the earliest opportunity, no more waiting for month-end, or worse, simply forgetting to invoice a service
- Contract service reviews. Knowing exactly how much it costs you to support your customers allows you to have a debate with them about the profitability of the arrangement.
Each of these should deliver a clear financial return. The PSA tool itself won’t increase your sales but implemented properly it will improve both your financial effectiveness and the awareness of the true costs in your business. This is the key to improving profitability and enabling growth.
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About the Author: Harmony Business Systems Ltd., a CloudBlue company, is the business behind HarmonyPSA, the most complete cloud professional services automation (PSA) software on the market. Purpose-built with functionality to simplify every need of MSPs and Professional Services Organisations, HarmonyPSA introduces a state-of-the-art PSA system built for today’s modern service provider. The platform empowers services organizations to scale recurring channel revenue and diminish operational complexity via its advanced product suite, which includes automated billing and reconciliation, an industry-leading customer support center and network operations center (NOC), real-time profitability analysis, and much more. HarmonyPSA is available globally. Follow HarmonyPSA on Twitter, LinkedIn or Website