PSAs for Scattered Brains

Professional services organizations have had remote access in the past, but it was difficult to use in comparison with the newest Web-based tools. It often required special dial-up software on the consultant's laptop. Once the consultant was connected, it was frustrating to access and run applications that were designed for fast corporate LANs rather than slow dial-up connections.
By contrast, "the PSA solutions we are seeing now couldn't exist without the Web," observes David Hofferberth, senior analyst, Aberdeen Group, Boston. With the new Web-enabled PSA solutions, a consultant need only connect to the Internet, type in the appropriate URL, enter a password, and gain access to the firm's PSA applications and data. Through the same Internet dial-up connection, the consultant also could access any Internet data, surf a client's Web site, or send and receive e-mail.
The initial Web-based PSA solutions have tended to focus on time and expense tracking and on resource management, by which the organization can keep track of who is available, and with which particular skills. Most of the vendors will soon be rolling out Web-based opportunity management (sales), collaboration, and engagement management solutions if they haven't already. The trend, suggests Hofferberth, is toward integration of functionality and tools.

For its part, Novient Inc. recently beefed up its own PSA Web solution offerings through the acquisition of WebProject Inc., a project management solution company that offers users  an easy way to capture, access, and share project and enterprise information through a project portal Web page.
There are a number of ways to Web-enable a professional services solution. The newest tools are built from the ground up for the Web. Some are delivered through an application services provider (ASP) via the Web. Still others are conventional client/server tools that support Internet access via a browser.

The thin client debate

Just how Web-enabled a PSA solution is sometimes relies on whether the firm's technology involves thin client technology where the consultants operate with minimal localized software.
"The big question is whether the PSA solution supports a totally thin client," explains Hofferberth. If the application requires additional software on the client, even if it is downloaded in the form of Java applets or other components, there likely are elements of a previous client/server solution still present."

A pure Web solution may not always be desirable. "With a totally thin client, you have the problem of the disconnected user," Hofferberth continues. Thin clients, even those that use dynamically downloaded components, need to be connected with the server to get anything done. However, there may be times when consultants want to use at least parts of the PSA solution completely off-line. This requires some code for the local client. It will also require some mechanism for synchronization when the client comes back on-line.
Web PSA tools typically follow one of two deployment models, an enterprise application or a Web-hosted (ASP) application. The enterprise application is similar to the client/server solutions of the past, in that the organization licenses the software and installs it on a corporate server. Users can connect with the application over the corporate intranet or extranet or the public Internet, provided appropriate security measures are in place.
The Web-hosted model has the vendor running the application on its servers. The application is licensed on a per-user basis, although there may also be an initial setup fee. Users log on to the application-hosting Web site and, after gaining the proper security authentication and authorization, access the consulting firm's applications and data.
The Web-hosted model usually is less expensive, since the cost of maintaining the server and managing the application is spread across multiple customers. It also completely frees the consulting firm's internal IT group from any responsibility for supporting the application. Just give the consultants a browser and let them run. For small firms or young, rapidly growing firms, the Web-hosted model allows the company to focus all its resources on the business and ensures a predictable cost as it adds consultants (usually a lower one, due to volume discounts). On the downside, there may be limits to how much personalization, configurability, and customization are possible. Also, integration with the consulting firm's internal back-end systems, such as financials, may be problematic.
"Most of these players are building solutions from an interface on backwrd. We think we have more of the back-office infrastructure already in place and can now be quicker and more responsive as we build out," says Jay Fulcher, executive vice president of PeopleSoft Consulting. Fulcher believes many of the professional services firms that have partnered with PeopleSoft inside the ERP arena will find the vendor's maturing PSA offerings attractive because of their inbred back-office functionality.

Going live with resource management

Although vendors increasingly offer both options, most professional services firms appear to be opting for the enterprise model despite the higher costs.
 "We run Portera on our own set of servers because we have experience in product implementation," says Toby Younis, vice president, Inventa Corp., Redwood Shores, CA. Inventa currently uses Portera to manage relationships among employees, skills, projects, and clients. Down the road, it expects to implement Portera's knowledge base, project management, and forecasting capabilities.
Given the expected growth in the PSA market, the field is attracting a large number of players. "There are over 30 different vendors in this area already," notes Hofferberth, and more pop up seemingly every day. These range from long-established ERP and CRM vendors who have just awoken to professional services as a new growth opportunity to a slew of new Internet players. Among the market leaders, notes Runyan, are Account 4, Evolve, Niku, Computron, Changepoint, Portera, and Novient. Other emerging players to watch include Business Engine, Skills Village, Planview, Opus 360, eRoom, Quick Arrow, Replicon, and Encentris.

Today, many consultancies have begun to establish their own criteria for selecting from the growing multitude of PSA offerings.
"We began by looking at over a dozen different offerings and completed an internal valuation where we scored them, allowing us to narrow the number down to four," says Emerald's Mitchell.
"Account 4, Niku, Evolve were up to the final cut. … But the bottom line was that Changepoint had nine years' experience in the project management area," says Mitchell, who indicated  that Emerald management preferred doing business with established industry veterans rather than those that might be perceived as relative newcomers.
Deciding which product is right for your organization is tricky. "Remember, you are trusting your operations to these applications," warns Runyan. In addition to price, which is always a consideration, look for flexibility, ease of integration with your back-end systems, scalability, and ease of use. Finally, and possibly the most difficult to assess, is the vendor's vision: Does the vendor see and understand the professional services world the way you do? And if so, is that understanding reflected in the PSA solution?

For example, SE Technologies, Stamford, CT, went live with Niku's resource management solution in January, replacing a spreadsheet-based approach and reliance mainly on what was in people's heads to keep track of its 400 consultants. "An opportunity would come up and we'd have to fire e-mails around to see if we could fill it," recalls Ajay Jain, vice president. Sometimes, the company lost an opportunity it could have filled. Other times, it hired contractors it didn't need.
With Niku, when an opportunity arises, "we just go onto the Web and see what skills we have and who is available," Jain explains. One salesperson already credits the system for making a sale by allowing him to find the appropriate resources fast. The company intends to expand its use of Niku, which it runs on its own server, by implementing time and billing, expense, and knowledge management capabilities and integrating them with its Oracle financials system.

Stuart White, director of finance for Emerging.com, says that his company is enjoying new revenue growth after deploying a solution from QuickArrow.
"We believe two factors — utilizing resources better and capturing more billable hours — have helped us to increase revenues five to ten percent almost immediately," he says.
CNC Professional Services, Chicago, opted for Account 4 to manage 20 full-time professionals and over 100 subcontractors. It uses the Web-based system to track time, projects, and skill sets. Previously, it used homegrown tools based on Lotus Approach and spreadsheets. "The key for us is ease of use and ease of access. With Account 4, we just need a browser connected to the Internet," explains Steven Banke, CEO.
The payback from Account 4 came fast. Where it had previously taken the company 45 days to chase down all the time records and get out an invoice, the firm now gets out invoices in two days. "We had thousands of dollars in billing just waiting for people to enter their time," Banke recalls. Now such waiting is a thing of the past.

Lante Corp., Chicago, turned to Evolve's ServiceSphere to manage opportunities and allocate resources based on a centralized skills inventory. "It lets us better manage customer demand and improve delivery by keeping better tabs on projects," says Anil Bhojwani, Lante's IS director.
ServiceSphere runs on Lante's server. Consultants in the field access the server over the Internet through a browser. "The Web provides better, easier access," notes Bhojwani. Besides, he continues, "we are a Web consulting firm. We are expected to use the Web." The same can be said by an ever increasing number of consulting firms.

PowerPoints:
• Although away from the home office much of the time, consultants still need to access their firm's PSA functionality. Web-based PSA solutions allow scattered professionals to access the same functions and data wherever they are.

• Web-enabled tools eliminate the hassle of deploying, maintaining, and supporting rich client software on each consultant's laptop. In the case of fully Web-enabled tools, the consultant only needs a Web browser.

• Web PSA tools typically follow one of two deployment models, an enterprise application or a Web-hosted (ASP) application. Although the vendors increasingly offer both options, most professional services firms appear to be opting for the enterprise model despite the higher costs.