{"id":4442,"date":"2019-10-02T05:19:47","date_gmt":"2019-10-02T05:19:47","guid":{"rendered":"https:\/\/cinode.com\/how-a-consulting-firm-can-become-a-cloud-service\/"},"modified":"2019-10-02T05:19:47","modified_gmt":"2019-10-02T05:19:47","slug":"how-a-consulting-firm-can-become-a-cloud-service","status":"publish","type":"post","link":"https:\/\/cinode.com\/en\/blog\/consulting\/how-a-consulting-firm-can-become-a-cloud-service\/","title":{"rendered":"How a consulting firm can become a cloud service"},"content":{"rendered":"\n<p><strong>Am I the only one who dreams about being\nable to offer consultancy services as a SaaS company?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Delivering anywhere at any time, to any number of clients, without needing to think  about price pressure or hourly rates.<\/strong><\/li><li><strong>Bringing in clients as subscribers. The clients are onboarded and are billed on an ongoing basis, completely automatically based on how they use the services.<\/strong><\/li><li><strong>Focusing on developing better services instead of repeating the same work tasks and selling projects on a per-hour basis.&nbsp;<\/strong><\/li><\/ul>\n\n\n\n<p><strong>Is this a utopia? Is it possible to develop a consulting firm into a digital delivery machine characterised by scalability and on-demand services?<\/strong><\/p>\n\n\n\n<!--more-->\n\n\n\n<p>I believe it is at least possible to get a\nlot closer to the above situation than where we are at present. By challenging\nexisting models and work methods, we can reach our clients in new ways.\nDigitalisation facilitates more methods of delivery, and when we develop our\ndeliveries and utilise the technology available, we can update our business\nmodels.<\/p>\n\n\n\n<p>Consulting firms are generally<a href=\"https:\/\/www.linkedin.com\/pulse\/konsultfirmorna-och-risken-med-att-vara-f%25C3%25B6r-fat-happy-wallquist-\/\">&nbsp;<\/a><a href=\"https:\/\/www.linkedin.com\/pulse\/konsultfirmorna-och-risken-med-att-vara-f%25C3%25B6r-fat-happy-wallquist-\/\"><em>fat and happy<\/em><\/a><em>&nbsp;<\/em>and\nare not particularly inclined to update their delivery model or business model.\nSelling on a per-hour basis is a proven consultancy concept that works, at\nleast for now. The risk, however, is that new concepts, for example readily\navailable and highly competent project resources who work at distance and at a\nlower price via <a href=\"https:\/\/www.linkedin.com\/pulse\/i-gig-ekonomin-blir-alla-konsulter-framg%C3%A5ngstips-johan-wallquist-\/\">gig platforms<\/a>, will\nbegin taking a larger slice of the cake.<\/p>\n\n\n\n<p>When clients realize\nthat they can access awesome resources at a lower price from these\ngig-platforms, it is likely that certain consulting firms will find it increasingly\ndifficult to compete.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What\nis SaaS?<\/strong><\/h2>\n\n\n\n<p>SaaS stands for Software as a Service, and\nreally only refers to companies that sell software. There are, however, many\nother services that use the same model, in other words delivering a service\nover the internet (the cloud).<\/p>\n\n\n\n<p>Think about all the apps and services you\nuse on a daily basis for work and in private life. You share documents, manage\nproject plans, pay for train tickets, swish a friend, watch something on Netflix,\nbill a client, etc.&nbsp;<\/p>\n\n\n\n<p>As consultants who offer and provide our\nservices to other companies (B2B), we focus on these types of SaaS offers.\nOffice 365, Salesforce, Googles G Suite, Hubspot, Workday, Mailchimp and&nbsp;<strong>Cinode<\/strong>&nbsp;are\nall examples of SaaS companies from which we draw inspiration.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Updating\nthe sales process \u2013 with online funnels and automation<\/strong><\/h3>\n\n\n\n<p>At present within the consulting sector,\nmost client acquisition takes place through traditional sales processes. Senior\nconsultants use their contact network and offer the firm\u2019s services as a\nsolution to the prospective client\u2019s problem. When the client changes\ndirection, the consulting firm is able to follow suit.<\/p>\n\n\n\n<p>If we were a SaaS company instead, we would work more with the client\u2019s buyer journey and identify potential new clients during their own online research prior to purchase. <\/p>\n\n\n\n<p>As a SaaS company, we would help them to understand the problem at a more in-depth level, by offering downloadable guides, webinars and microtools. Thereafter, when our marketing automation system indicates that they have read about our solutions and have visited our pricing page three times during the past week, we send them an email and book a meeting (or perhaps we are still a little old school and call them instead!). The client is then delighted to hear that we can help them with their problem, not to mention surprised at how well we already understand them.<\/p>\n\n\n\n<p>The more\nadvanced&nbsp;<em>cloud consulting companies&nbsp;<\/em>don\u2019t even need to send an\nemail or make a call. They have functions on their site which allow the client\nto test\/purchase the service straight away. It could be an online training\nmodule, a digital assessment tool or an executive coaching session online.<\/p>\n\n\n\n<p>The consulting firm works in this manner in order to gain a more in-depth understanding of the client, which then enables additional relevant services to be offered, either digitally or during a meeting. <\/p>\n\n\n\n<p>It is bound to be easier to book a meeting with a new client if the client has already taken part in a valuable training session online. In certain cases, we do actually need to get together face-to-face and talk about the sizeable projects. This also makes the process more pleasant and personal. Not everything should be handled digitally \u2013 but a lot could. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Delivery\nand value proposition in the cloud?&nbsp;<\/strong><\/h2>\n\n\n\n<p>These days, consulting firms offer and\nprovide competence, time and human resources. Some of the reasons clients choose\nto engage our services include the fact that we:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>have expertise within a certain field<\/li><li>can spread knowledge<\/li><li>act independently\/objectively<\/li><li>can implement change in project form, outside of the line organisation<\/li><\/ul>\n\n\n\n<p>By streamlining\nand digitalizing projects and the delivery process, consulting firms can\nemulate cloud services to a greater extent. In many cases the consulting firm\u2019s\nspecialized expertise can be integrated with a digital solution so that at\nleast certain parts are not delivered by the hour. Some areas to begin with\ninclude:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Repetition<\/strong>&nbsp;\u2013 in many projects there are elements of repetition for the consultants. It could, for example, have to do with client training. In large projects, many people are affected, and the project teams provide information and training to organizations to ensure that they will be able to adapt the change in the best possible manner. It is not particularly efficient to hold the same workshop ten times when it could be arranged just once at larger scale. There is also a risk that the quality of the delivery will vary from occasion to occasion due to human factors.<\/li><li><strong>Communication&nbsp;<\/strong>\u2013 meetings and workshops can be enjoyable and can      create an enhanced rapport and team feeling, although there are other occasions that are better suited to achieving such goals. When it comes to change projects, it is important to collaborate and communicate clearly. This is often done in the form of countless meetings, and information is shared via available channels (email, intranet, etc.), which means that the projects obtain only limited input. It becomes unclear who has received what info, and who has actually taken the information on board as intended. The lack of traceability makes it difficult (if not impossible) to monitor and follow up, provide support where needed or know whether the organization is ready for the next step in the project.<\/li><li><strong>Inclusion<\/strong>&nbsp;\u2013 all people are different. Certain individuals are particularly good at communicating their own ideas and making their opinions heard. Sometimes this can mean that other people\u2019s ideas take a backseat during workshops and meetings. We know that, generally, the results will be better when consideration is given to more ideas, more input and many perspectives. Now we also have the digital tools to ensure that everyone\u2019s voice can be heard (<a href=\"https:\/\/skills.centigo.se\/p\/digital-facilitation\">read      more<\/a>).<\/li><li><strong>Effect\/quality<\/strong>&nbsp;\u2013 many failed projects do not fall short due to poor delivery, but rather the fact that the receiving organization was not ready for the change. People must be informed and engaged in order      to be willing to implement and accept the change. This is often the reason for projects being delayed.<\/li><li><strong>Travel&nbsp;<\/strong>\u2013 why fly or drive to all sorts of locations, when the meetings can often be held digitally? Even workshops are held in a hybrid environment to a larger extent (some people attend digitally). Just do it <a href=\"https:\/\/skills.centigo.se\/p\/digital-facilitation\">right<\/a> and it becomes a win-win.<\/li><\/ul>\n\n\n\n<p>Ask yourself these\nquestions: What areas, processes and methods are you mastering as a consultant,\nbut your clients are not? Is it possible to create a service around that, and allow\nyour clients to access that capability digitally? Could it be transfer of\nskills and knowledge online, or methods built into digital tools, remote coaching\nsessions or a paywalled expert community?&nbsp;Start small and test something,\nsee if it sticks!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A consulting firm\nwith APIs as a SaaS company?<\/strong><\/h2>\n\n\n\n<p>A significant\nstrength of today\u2019s cloud services is the integration possibilities they\nprovide. Different services can be connected together to utilize shared data\nand functions through APIs (Application Programming Interface).<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>A consulting firm should  be able to connect to other platforms that also work with client projects,  for example gig-platforms. By synching available consultants with the  assignments that turn up on the gig and freelance platforms, the consultants can quickly be assigned to relevant projects. This benefits the consulting firms, the platforms and the clients themselves.<\/li><li>Furthermore, consulting firms would be able to broaden their field of operation and take a greater overall responsibility in existing client projects by bringing in subcontractor experts via the platforms.<\/li><\/ol>\n\n\n\n<p><strong>New payment models<\/strong><\/p>\n\n\n\n<p>Imagine transitioning\nfrom hourly reporting to subscriptions with automatic billing and card payments\n\u2013 my favorite area!<\/p>\n\n\n\n<p>For a long time\nnow, the consultancy sector has charged by the hour, which feels about as\nexciting as a landline phone!<\/p>\n\n\n\n<p>By digitalizing\nyour offers and delivering online, it is also possible to charge your clients\nin other ways, for example per user and month. 100 SEK (about 10 Euro) per user\nand month might not sound a lot, but if you have major clients with thousands\nof employees it can quickly add up.<\/p>\n\n\n\n<p>The nice thing\nabout scalability is that you can benefit from re-use of your service and can\ncontinually add new clients. As long as your service delivers value, your clients\nwill keep using it. After a while you might have ten clients with an average of\n1,500 users.<\/p>\n\n\n\n<p>Let us consider a\nsimple equation: (1,500 users * 10 clients * 100 SEK * 12 months) = 18 million SEK\nper year. How much do you normally bill as a consultant per year? =)<\/p>\n\n\n\n<p>In the online\nworld, card payments rule, and there is a reason for that. With a cloud service\nyou can usually test out the solution by registering your details and your\ncredit card within just a few minutes. Naturally, the chances of becoming a\nlong-term client are increased if it is possible to test out the solution\nstraight away.<\/p>\n\n\n\n<p>This also opens\nthe possibility of bypassing some of the bureaucratic procurement processes. If\nyou sell an online training module within your field to many people, they will\nthen report their participation, which contributes to your brand awareness and\nincreases the likelihood of landing larger deals in the long term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenging old\nwork methods<\/strong><\/h2>\n\n\n\n<p>SaaS companies are\nan awesome source of inspiration, and even if consulting firms might not be\nable to directly replicate all of the models they use, there are definitely\nparts that are worth experimenting with.<\/p>\n\n\n\n<p>I am involved in\nboth external client assignments and internal initiatives where we successfully\nchallenge old work methods and business models. One example is something that\nwe at Centigo call Skills (<a href=\"https:\/\/skills.centigo.se\/\" target=\"_blank\" rel=\"noreferrer noopener\">skills.centigo.se<\/a>). Skills acts as\nan umbrella under which we gather several digital initiatives for aspects such\nas the transfer of skills and knowledge, digitalizing workshop facilitation and\nmore efficient work methods in client projects. It has also paved the way for\nnew business models, new partnerships and new career paths. For you as a\nconsultant, I would highly recommend that you take a closer look at the way we\nconduct workshops more digitally (read more&nbsp;<a href=\"https:\/\/skills.centigo.se\/p\/digital-facilitation\">HERE<\/a>). It is a quick way of\ndigitalizing some of your operations already today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Am I the only one who dreams about being able to offer consultancy services as a SaaS company? Delivering anywhere at any time, to any number of clients, without needing to think about price pressure or hourly rates. Bringing in clients as subscribers. The clients are onboarded and are billed on an ongoing basis, completely [&hellip;]<\/p>\n","protected":false},"author":144,"featured_media":3489,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[73],"tags":[],"class_list":["post-4442","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consulting"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How a consulting firm can become a cloud service - Cinode<\/title>\n<meta name=\"description\" content=\"Discover key insights on How a consulting firm can become a cloud service from the leading consultancy blog.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cinode.com\/en\/blog\/consulting\/how-a-consulting-firm-can-become-a-cloud-service\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How a consulting firm can become a cloud service\" \/>\n<meta property=\"og:description\" content=\"Discover key insights on How a consulting firm can become a cloud service from the leading consultancy blog.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cinode.com\/en\/blog\/consulting\/how-a-consulting-firm-can-become-a-cloud-service\/\" \/>\n<meta property=\"og:site_name\" content=\"Cinode\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Cinode\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-02T05:19:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cinode.com\/wp-content\/uploads\/2021\/02\/JOhan_Wallquist_foto-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"946\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Guest blogger \u2013 Johan Wallquist, management consultant at Centigo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Guest blogger \u2013 Johan Wallquist, management consultant at Centigo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/how-a-consulting-firm-can-become-a-cloud-service\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/how-a-consulting-firm-can-become-a-cloud-service\\\/\"},\"author\":{\"name\":\"Guest blogger \u2013 Johan Wallquist, management consultant at Centigo\",\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/#\\\/schema\\\/person\\\/f8585cae6c1c48782ffc34c9310b6463\"},\"headline\":\"How a consulting firm can become a cloud service\",\"datePublished\":\"2019-10-02T05:19:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/how-a-consulting-firm-can-become-a-cloud-service\\\/\"},\"wordCount\":1884,\"publisher\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/how-a-consulting-firm-can-become-a-cloud-service\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cinode.com\\\/wp-content\\\/uploads\\\/2021\\\/02\\\/JOhan_Wallquist_foto-1.jpg\",\"articleSection\":[\"Consulting\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/how-a-consulting-firm-can-become-a-cloud-service\\\/\",\"url\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/how-a-consulting-firm-can-become-a-cloud-service\\\/\",\"name\":\"How a consulting firm can become a cloud service - 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