A case for local integrators
The integrator is not selling equipment — but selling advice. Often, the client is willing to pay for calculations that local operators can do in their heads.
Consolidation of market segments continues to be the norm in telecommunications. This gives rise to the questioning of the role of local operators and shop owners in the future.
It would be conventional wisdom to declare this class of businesses as obsolete or unprepared for the changes likely to be wrought in the future. But such high-handed dismissal does not reflect the changing nature of small business operators.
Rather than minimizing the role of local operators, one should look beyond the headlines and stock reports of the Wall Street dandies and focus on the strengths, challenges and changing nature of the local entrepreneur. By carefully observing the relative strength of the local operator, you will discover that local operators are amply positioned for changing times and changing roles.
Despite the market strength of large, publicly traded corporations, these same corporations lack the ability to comprehensively distribute the foremost demanded service: information.
Customers and users of wireless services are seeking customized solutions to on-site problems, not theoretical models of operation. As customer sophistication grows, customers can discern operational differences between their communications networks and the perceived advantages enjoyed by other firms.
Undoubtedly, a large industrial concern can garner enough attention to merit a visit from a representative of an equally large equipment manufacturer. However, many midsize firms do not receive the same attention, and smaller companies are given only “plug-in” solutions to unique situations.
The industry suffers from a lack of equipment and service integrators that can review the on-site challenges of a business and devise customized solutions — without concern for specific product lines.
Enter the local experts
One of the perennial challenges that I have faced is how to convince local operators that they possess a greater knowledge of products and services than most, if not all, representatives of any specific equipment or service. Most significantly, local operators normally either give away this knowledge to customers — or simply never provide it.
The knowledge possessed by local operators spans product lines. A two-way shop owner knows whether Kenwood or Motorola or DX Radio or whoever, is producing the wireless product that would reliably serve an individual company’s needs.
Local operators know pricing, delivery history, interoperability and market acceptance regarding both equipment and associated technologies. It is a sure bet that a local operator would be well-positioned to review invoices, installation performance and operational results to determine whether a customer got what it needed, at a competitive price, to solve a particular problem.
Expertise — nearby
Local operators are experts in telecommunications, from the most sophisticated wireless equipment and interconnection capacities to a simple base-and-five. With this expertise and proximity to companies demanding such information, local operators are well-positioned to become the integrators of service, a role that is sorely needed now and one that will become increasingly important over the next decade.
The role of integrator is perfectly suited to local operators. Many manufacturers’ representatives have echoed this sentiment and have attempted to encourage local operators to fill this vacuum. However, this culture change is only slowly coming to market, as local operators begin to realize the potential in providing this service.
The role of a telecommunications integrator is multifaceted. The integrator must be able to interview a customer to determine the customer’s objectives, while recognizing that the customer may not possess ample knowledge to articulate all of its objectives. Therefore, the ability to discern information or draw out responses from a customer is important.
Based on a determination of the customer’s objectives, the integrator would review the present status of the customer’s communications requirements. If an overhaul is needed — the customer requires a new network of equipment and services to reach the objectives — the integrator would make time, material and cost estimates, including recommending certain manufacturers’ products that would provide the desired services at reasonable prices.
If an upgrade is necessary, the integrator would provide a plan for moving the in-place network toward the upgrade, again, providing cost and time estimates.
The best analogy for the services to be provided by an integrator is one of architect or, perhaps, general contractor. By providing to a customer a written report, and sometimes an illustration of the revised network, an integrator is giving the customer a perspective view of the communications system to be built or upgraded.
He is, in effect, providing the drawing and specs and cost estimates that a company requires to understand its needs and the investment required to fulfill its needs.
The integrator is not selling equipment but selling advice.
Feasibility study
As someone who has been in the “advice business” for about 20 years, I can tell you that companies often require concrete assistance and budget numbers before they can commit to a path. And they are often willing to invest in a study to determine feasibility of various alternatives.
Oddly, the estimates that the company is willing to pay for are those calculations that a local operator can often do in his head.
One of the biggest hurdles for local operators who want to offer integration services is the devaluation of their skills and knowledge. People tend to think that if it’s not difficult for them to do, they should not charge much for it. Many lawyers, for example, do not know where to draw the line between friendly, free advice and giving away the store.
Remember, gathering what you know took years of learning, work, experience and mistakes. You had to study tech manuals, attend seminars, keep up with manufacturer developments, experiment with new equipment and touted solutions, and invest time and money into what works and what does not.
That knowledge is valuable when it is applied to benefit a customer who lacks information from any source other than a sales rep trying to turn a deal.
If integration requires knowledge you do not have, subcontract that portion. Find a vendor in your area (say for telephone systems), that will subcontract that portion of the integration report that discusses possible landline upgrades. Talk to a computer outfit that will assist in adding its expertise regarding upgrades of data transfers.
You will quickly discover that a number of experts in your area are willing and able to provide additional value to your consulting agreement. Then put them under contract to you so that you control their use, cost and methods to ensure that estimates made to businesses for combined consulting services are realistic — and met.
Again, do not be afraid to market and charge for this service. You will find that providing this service will increase your local networking capacity, give you greater clout with equipment vendors, make you evaluate your product lines in a more objective way, and provide sources of revenues that you did not have in the past.
There will still be local operators who are not comfortable selling anything that doesn’t beep, squawk or light up. The shifting of one’s product line from only “hard” goods to service products can be a difficult culture change. But remember, you have actually been doing this for years. You call it airtime.
Schwaninger, MRT’s regulatory consultant, is the principal in the law firm of Schwaninger & Associates, Washington, which is counsel to Small Business in Telecommunications. Schwaninger is also a member of the Radio Club of America.
