Security Business

FEB 2019

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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30 Security Business / / February 2019 Your Business The Path to Aftermarket Service Success Software may be the key to unlocking greater profits for security integrators By Charles Rathmann According to a survey, there are few software options that empower field technicians to upsell or sell new service contracts. Photo: Holmes Security The race is on for security integrators to realize revenue growth in aftermarket service – and software that enables digital service contract management may be a critical factor in balancing competitive contract pricing, profitability and customer satisfaction. The specialty trade contracting sector has seen revenue growth of 4.4 percent in the last five years, according to business research firm IBISWorld; however, with forecasts for 2018-2023 anticipating lower revenue growth of 2.5 percent, it is important that contractors look to make their operations as profitable as possible. In response to this, integrators who sell, install and support security and fire protection systems have begun to offer advanced aftermarket services to their customers. This is supported by research firm IHS, which finds that even as far back as 2015, service/maintenance made up 24 percent of worldwide security integrator revenues and was the fastest growing segment in the security integrator sector (read more at IFS, a company that develops enterprise software for service-focused operations, manufacturers and distributors, conducted a study that suggests there are significant gaps in how well contractors in HVAC, electrical, plumbing, security, roofing and other trades can execute on contracts for aftermarket service. Among the study sample, 22 percent were involved in security and fire protection/sprinkler system contracting; of those, 35 percent say they face gaps when it comes to the ability to handle customer-specific contracts with unique rather than standard payment terms or service level agreements. Tom DeVroy, Senior Product Evangelist for IFS, says the task of planning for services required during the lifecycle of a product today should be largely automated. “Companies should be able to use field service software to automatically generate all planned maintenance as a result of a contract,” he says. “This should include specific model or equipment-based tasking, including compliance or inspection activity, materials usage, part usage and performance standards.” Empowering Subcontractors Technology barriers also prevent full realization of revenue from field service – in fact, just 15 percent of technologies empower field technicians to upsell or sell new service contracts, and only 25 percent enable them to issue new estimates. While 89 percent of trade contractors in the study indicated that they use subcontractors, a little more than 10 percent give their subcontractors a

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