| | By Mick James
Consultancy is an industry in constant flux and one of the interesting things to follow is the move of different firms along the so-called value chain, which leads from strategic advice to implementation and eventually running client operations. For some firms consultancy has been their starting point – for others it is a destination.
Softlab is a case of the latter. Originally founded as a software company in 1971, it became a world leader in the supply of CASE (Computer Aided Software Engineering) tools. Since its acquisition by BMW Group in 1992, it has moved radically away from products to a "total growth strategy" focused on services and systems integration.
Although BMW is a major client, 80% of Softlab's business comes from external clients. The move into consulting is a natural outgrowth of this move up the value chain, and it now accounts for 30% of Softlab Group revenues.
Germany is naturally a major market and now | |
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| | the company is trying to replicate that strength with a major expansion of its consultancy operation in the UK.
"It's important that we are not seen as a me-too," says chief executive officer Gareth Thomas. "One of the reasons we feel we can punch above our weight in the UK is that we have this wealth of experience in Germany to draw on."
While the consultancy arm can provide stand-alone advice, the key for Softlab is the provision of end-to-end services.
"Not many people provide this end-to-end capability," says Thomas. "What's key for us is that our implementation capability needs to – and does – fit to the consulting capability, and that we have the right level of business and processes consultancy to provide implementation that is real."
Unsurprisingly, given its heritage, manufacturing is Softlab's biggest sector, closely followed by financial services and a growing presence | |
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| | in telecoms/media and insurance. The vision for Softlab is "upwards and outwards".
"We want to move up the value chain and to provide the customer with more IP at the beginning of the process," says Thomas.
In the UK the company has established a strong foothold in the area of customer management, and to build on this it has recruited Peter Cantor, formerly with IBM Global Business Services, to build the consultancy offering.
"Consultancy is intended neither to be a massive change to our culture, nor to be a bolt-on, but integrated," says Cantor. "What has changed is how we go to market. We're now looking to take on the end-to-end project."
Initially, Softlab will be looking for organic growth by providing consultancy advice to both existing and new clients.
"I believe there is a space in the market to provide 'Big Four' level of advice in a different environment," says Cantor. "Our initial pitch is | |
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| | operationalising strategy. We would like to work with you to make sure your strategy can be delivered, to make sure you can deliver the benefits."
Cantor believes the difference comes not only in the quality of advice offered but the grounding in reality afforded by Softlab's implementation capability.
"When you give advice, clients say that's very interesting, now tell me what you think is really going to happen," says Cantor. "We can't afford to pretend, we can't afford to have a pipeline of work that isn't going to happen – our advice has got to be based on reality and the here and now."
This feeds through to the kind of people Softlab recruits.
"Implementing software is bloody hard work – but that doesn't mean anyone is going to use it," says Cantor. "The other hard bit of the equation is making sure people change their behaviours too."
Cantor says he is looking for people of the same calibre as that | |
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| | of largest firms, but who want to work in a "more energised and self-motivated" environment.
"We are very selective and we stick to our guns," he says. "We're very keen to hire people who want to join Softlab and not just leave their previous employment."
Cantor says he is looking for people with the skills and experience to deliver Softlab's end-to-end promise to customers.
"We are not a purist consultancy. We are always looking to how we can help people implement something as long as that's the right decision for the customer," he says. "We want someone who has an opinion on a particular aspect of CRM, someone who knows something about a certain topic and has the skills to back it up. If you haven't got an opinion you're not much use."
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