As we enter the fourth industrial revolution, the challenges facing Government IT vendors increase exponentially. The customers are weighed down by antique systems while budgets are light years beneath the need. So how can contractors become like the alchemists of ancient lore. And transmute leaden Government budgets into rich system solutions?

Competing in the New Era

Like never before, Government customers demand solutions that help them better accomplish their mission at lower cost. Getting positioned to provide such solutions is the central task before industry. Following below are some of the primary factors in the new customer service equation:

1. Being able to offer attractive solutions means developing competency in those new technology niches that best leverage your past performance and core strengths.
2. Obviously, this includes cloud, mobility, cybersecurity, data analytics, etc.
3. Of special interest is the just arriving concept, “Everything as a Service” (EaaS), which lets the cash-strapped customer have the contractor provide the upfront capital and bear the risk while getting paid for the service on a monthly fee basis.
4. Retooling to provide EaaS services even at best case has a cost — that can be financed through (a) retained earnings, (b) a loan (c) an investor, (d) a partner, (e) an acquisition; or (f) a Government agency willing to grant limited rights in a system being developed.

Winning Proposals in the New Era

Proposal personnel are facing a seismic shift in the approach / skills needed to win contracts. Following below I provide a hint of what is beginning right now:

1. Business development and capture personnel need to more extensively understand the customer’s functional requirements, operational constraints, and measures of effectiveness.
2. Capture and technical personnel must educate the customer as to their company’s technology, solution, and contract vehicle.
3. With the agencies using more statements of objectives (SOOs) and less statements of work (SOWs) the burden to develop the solution and its forecasted benefits devolves on proposal teams.
4. The shift to EaaS for technology delivery causes a fundamental change in the technical solution, management, pricing, warranty, terms and conditions (Ts&Cs), contract, etc. The solution that was once was developed over time now becomes more of a “plug and play” capability-delivery-now operation.

The Huge Opportunity

The companies that can best understand their customer and plan, finance, develop, and deliver the new services will be the heroes of tomorrow. Others may perish.