By Company News
Published on November 24, 2022
Why did you choose to work with POPX as your ServiceNow partner?
Having run digital transformation projects many times before, using both internal and Professional Services (PS) teams, I have an acute understanding of how difficult the endeavour is and have the battle scars to prove it. You can usually tell when an IT service provider is struggling with their internal IT systems or failing to transform them because it’s not unusual for their financial performance to suffer as a result. I didn’t want that type of distraction for our business. The way we look at transformation at Arrow is with a strategic vision for the future that encapsulates all our people, processes and the underlying systems and tooling that support them. It is an investment into every aspect of our organisation and is manifested in continuous improvements in everything we do; from the career development we offer our staff, the services we offer our customers, as well as the way we serve and support them.
This strategic vision meant we had a bias away from the usual route to transformation, which typically puts the full risk and accountability on our internal team, even if we commission the assistance of a Professional Services (PS) firm. The problem I see with this is, the subject matter experts at the PS company only stick around long enough to get a solution implemented and then their work is either done or they are just too expensive to retain any longer, so they move on to the next project. Also, everything is costed in time and materials, so you go into a project without ever knowing what the full price is really going to be, unless you get the scoping work done up front down to the last millimetre, which would take many months and we would probably still be doing that work now. We did speak to PS organisations about implementing ServiceNow, but the full scoping exercise doesn’t start until they are engaged and working for you, so any idea of cost can quickly spiral out of control after you start.
From the very beginning, I had determined that this approach had significant limitations but there aren’t many alternatives. The idea I had in my head was a long-term managed services partner, that would share the risk and responsibility of the project and then work with us over the years to continuously optimise our operations and create value. People in the industry were talking about POPX because they have a very different approach that addresses many of the issues I’d experienced in the past and wanted to avoid. When I spoke to the team at POPX it was clear to me they understood our business and our needs, and they very quickly ticked the boxes of what I was looking for. Their ability to de-risk our investment and the all-inclusive fixed price made the final decision an easy one and sealed the deal.
You said: "Too much work in our industry is delivered by committed people using manual, isolated processes and aged tooling." Why do you think this has happened in the industry?
It’s not unusual for Managed Service Providers (MSPs) to focus first and foremost on the needs of the customer and each department will then invest in point solutions to solve specific internal issues. When growing a business, this is probably the right thing to do. However, this has its limitations and there will always come a point in the growth of an MSP where the internal systems and processes become so fragmented and chaotic that they struggle to keep up and scale with the changing demands of the business. This negatively impacts the cost to serve and, if left unchecked, will ultimately reduce both the quality of service and profitability. You cannot just throw more people at a problem and expect it to go away when what you really need is smarter ways of working, supported by streamlined processes that are always accurate and require less resources to scale, not more.
The key is to find a way to support accelerated growth without exponentially increasing costs and to do that effectively you must embrace service automation. Growth and investment are often the trigger points to address many of these issues and at Arrow, we are lucky that we have had both positive influences. This brings us to the point today where we can invest in multiple transformation initiatives that will future-proof our business, including the adoption of a company-wide service management platform. Working with POPX, we can now set operational standards across all our acquired businesses, and that can also be adopted by any assets we acquire in the future.
How quickly do you expect the integration to happen?
We have pushed aggressive timescales to get things done with minimum delay and expect to complete the final integrations during Q2 of 2023. There is little chance we could have achieved this without working with a partner like POPX, who can accelerate the process by combining their MSP-ready Platform with the sector expertise of their team.
How will POPX enable you to scale?
It’s not about scaling at any cost, but rather about scaling while better controlling our costs. To do this we must put the right processes in place and the right tools in the hands of our employees. By improving the employee experience with advanced service management techniques, we directly improve the customer experience, as it is one single value chain that connects everything. Again, service automation takes a leading role, allowing us to work accurately and efficiently. In this way, we can serve our clients quicker and better with minimal manual intervention, which mitigates errors that require rework.
The more any IT service provider can get things right the first time the happier the customer will be, and the less resource is then required to go back and fix costly mistakes. By standardising operations across all our acquisitions, we can continuously optimise them and increase efficiency. In addition, we constantly review our product catalogue to develop new services and solutions, and because we have better control of our cost base, we will deliver those new services at the right price for the customer and our business.
How has Arrow grown so much in recent years?
Arrow has grown significantly through multiple acquisitions over a short number of years, but we also have healthy organic growth. We are in the advanced stages of integrating these acquired businesses into one organisation with a common operational standard. We have been fortunate to be associated with private equity firms that have seen the opportunity in our business model and invested in it.
What are your hopes for Arrow for the future and how will POPX help?
With many thousands of customers, it is impossible to serve every individual need via telephone and email. For this reason, our hopes for the future centre around the enhanced digital engagement of our customers. This comes through many different channels, such as service automation, our new self-service customer portal, the use of bots, the use of an extensive knowledgebase, improved personalisation and any other form of enablement we can leverage to better serve a growing and ever-demanding customer base with complex needs.
We are utilising technology to free up more time to enhance personal interaction with our customers. The team at POPX is central to guiding us on this journey and will help us determine how we extract the maximum value from our investment in ServiceNow. This will help us to double in size in a cost-effective and profitable way while delivering the very best responsive customer experience the industry has to offer.
How will POPX affect the day-to-day running of the company?
The purpose of the multiple transformation initiatives we are undertaking is to secure our strong position in the market by putting the building blocks in place for our continued growth and success. One of those strategic building blocks is the internal assurance, governance, and development function I am creating within the business, which will allow us to continually develop services and keep us ahead of the game. The main benefit of working with POPX is that their fully managed service means we are not distracted from running our business and focusing on what is important to the customer, while always having access to the resources we need. For example, creating our own in-house software development team would have been prohibitively expensive, and conflicted with our identity as a service provider as opposed to a software house. Nor do we need to hire expensive and scarce ServiceNow subject matter experts.
Thanks to POPX, we have the appropriate access to all the additional resources we need but don’t necessarily want to hire. Because we work seamlessly as one team, POPX has broadened our capability and capacity to do more. I’m lucky to be working with a brilliant team at Arrow, but what we have with POPX is a bit like having access to a supercharger that tunes and refines the power of an already excellent engine. This is a collaborative partnership in the true sense and because we complement each other, the extended team operates at a higher level. The team at POPX understands and shares our goals, and we work as trusted partners to realise the precisely articulated strategic vision that acts as our North Star, without which none of this would be possible.
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