Network News Volume 45 Issue 1
Special points of interest:
- Bulletin Board—Partnering Opportunities
- SIA Conference 2003, March 1—4, 2003 Mirage in Las Vegas
- A Letter from the President
- White Paper
- New Members
- Sponsors
- Membership Dues Change
Benefits of Competition in High Tech Service,
the focus for SIA
By: Claudia J. Betzner
Over
the last few months we have been focusing on why we exists as “the
association promoting customer choices.” This resulted in the development
of the White Paper for Benefits of Competition in Medical Service,
which is now on our website and we welcome you to copy it and include
it in your proposals if you are a Medical Service Provider. The
arguments will be much the same for the second part of the plan promoting
Competition in the Marketplace—a white paper outlining the benefits
of competition in Computer and Copier Service but will have different
financial and empirical data which we are collecting now with the
help of The Gartner Group.
The Computer Service White paper will also be available to you and you will begin to see promotion of the “benefits of competition” throughout the year. An additional point we will be discussing in the Computer Service paper will include “Outsourcing benefits vs. Self–Maintenance,” an issue which continues to be discussed with independent service providers. I also invite you to view the presentation made on this subject and the entire 2002 SIA Conference Agenda on the secure portion of the website. You of course, will need your password and ID to access the “member only” portion of the web. While you are in the “Member Only” portion of the web, why don’t you promote your needs in the “Discussion Forum.” Those members who have used the new section of the web have benefited by finding a subcontracting partner in a geographic area they do not support, finding a new Service Director, and selling parts, just to mention a few.
Just in case you missed the last newsletter, which listed some of the benefits of competition in the high tech service marketplace, I list the Benefits of Competition, Executive Summary, on page four. A special Thanks to the SIA Board for the development of this paper.
Presentation’s
from SIA Conference 2002 now on web in “Member Only” section.
In other news…..
The SIA Conference, held in Miami March 10—12 had excellent content
and according to the attendees, included even more networking than
ever before. The attendance was disappointing, but those that did
attend tell us the financial benefit to them through increased networking
as a result of less people increased the financial reward. We are
not suggesting we want fewer people but those that made the trip and
spent the time found there really is no replacement for face-to-face
contact with their peers in the industry and since this is a major
fundraiser for the association, we hope you will decide to attend
next year. The SIA Conference 2003 will be back in Las Vegas. A
vote by the attendees showed overwhelmingly our members like Las Vegas.
Mark your calendar now...March 1—4, 2003 at the Mirage. Our rate will
be $148.
A special thanks to our Sponsors, Speakers, Vendors, Board of Directors and Anco, as an event sponsor, for all the time, energy and effort in making SIA Conference 2002 a big success.
New Sponsor & New Members
New
Sponsor
Doug Stephens, CBET Pres. & Founder
Lakeview, AR
888 785 2638
Stephens International Recruiting, Inc., a health care technical recruiting agency, provides quality Radiology Service Technicians and Managers, Biomedical Equipment Technicians (BMETs), Clinical Engineers and Managers, Field Service Technicians, Health Care Administrators and Executives, and other Health Care Support Professionals on a contingency fee basis. Specializing in military-OEM trained technicians and managers. Temporary/Contract Staffing Services for Biomedical Technical and Management positions available. “Dedicated To Providing Quality People & Quality Service.”
New Members:
Renova Technology
Jonathan Pine, President
Atlanta, GA
770 448 4778
Integrity Medical
David Denholz, President
Ft. Meyers, FL
941 454 9555
PartsSource
A Ray Dalton, Pres. CEO
Cleveland, OH
440 735 5060
New Members in 2001:
Antenna Software
ARC Services, Inc.
DITEC, Inc.
Olympus America, Inc.
Penn Biomedical Support
Triangle Technology Srvs.
Barrister Global Srvs.
CADx Medical Sys., Inc.
Grace Consulting, Inc.
NovaMed Corporation
Valencia Technical Srv.,Inc.
Braun Consulting
Morse Medical
Radiology Srvs. of PR
ServTechUnited
Membership Drive
If you sponsor/sign up a new member -you can receive $100 credit
for each new member which you can use toward the 2003 conference
or your membership dues.
Do you have an associate that could benefit from SIA?
Call me...619 221 9200 or have them register on our website and complete
the portion “how heard about SIA” with your name included and you
will receive $100.
SIA Membership Dues Restructure
About four years ago SIA restructured the Membership Dues in an effort to help smaller companies less fortunate with smaller budgets. As a result, many companies simply switched from the $750 rate to the $295 rate, creating working capital dilemma's. We still want to help the small companies which someday will become larger companies but we are restructuring. We also have a need for an individual rate for those with one or two employees. Therefore, we have restructured the rates accordingly and are changing the annual billing date for optimal timing after the conference so we can put the plans in place for added membership benefits and promotion of “benefits of competition.”
Some of you have increased number of employees over the years but your membership dues have remained constant. Therefore, the restructure addresses these issues and increases the category from three to five possible rates. If you have decreased or increased substantially, you will need to contact the SIA office so your profile can be updated or simply go to the website and complete a new profile “as if you were a new member.” I will then bill you accordingly and your record will be updated correctly on the web.
Here are the rate categories
Effective June 1:
| Employees | New rates |
| 1 -2 | $ 375 |
| 3 -9 | 500 |
| 10 -50 | 850 |
| 51 - 99 | 1,000 |
| 100 + | 1,250 |
Sponsor fees by level of benefit
Platinum $20,000
This level sponsor can design his own benefit program but Benefits
could be unlimited conference attendance, Exhibit at conference, unlimited
ads in Newsletter, Prominent on first page of Website with hotlink
and ad, Permanent member of the Executive Advisory Board, Prominent
listing in all PR and conference program. Insert in Conference Program.
Permanent banner on first page of Web stated Platinum Sponsor and
one line of text – whatever they are promoting. One day advance notice
of “Service Request” from web.
Gold Plus $10,000
All Benefits from Gold plus an additional six people attending the conference and more prominent exposure on web, hotlink on first page, ½ day advance notice of “Service Request” from web.
Gold $6,000
Benefits include 4 ads per year in newsletter, hotlink on website and listed as a sponsor, listed in Newsletter and Conference Program. Exhibit space at conference plus one attendance. Permanent member of Advisory Board. Each additional person attending conference receives an additional $100 discount or currently $395.
Silver $3,000
Benefits would include two ads per year in Newsletter, listed on web with hotlink, listed in Newsletter and conference program, tabletop at conference, insert in program, plus ad in program, plaque.
Bronze $1,750
Benefits include two ads per year, listed on web with hotlink, plaque and tabletop display including one conference attendance to man the space.
It’s Just a Conversation—Keynote Address
(Several articles are available by Scott on the secure portion of the SIA website and also on Scott’s website at www.relationshipisthekey.com).
If you missed the keynote address delivered by Scott Hunter, you missed some very innovative thinking about our conversations we have with “ourselves.” According to Scott, our basic way of perceiving, thinking, valuing and doing associated with a particular vision of reality is “Just a Conversation” we have with ourselves. Our Conversation with ourselves is transmitted through culture and to succeeding generations through direct experience rather than our being taught. Some of us may not even notice that our life is a conversation and that conversation in our mind is going on all the time, sometimes several conversations at once, weighing alternatives, etc. Scott went on to explain the various ways of communicating and listening and how we can change our way of communication to improve the environments in which we run our businesses.. His suggestions: (1) Empty the files—don’t be preoccupied with what you are going to say and have your mind already made up based on pre-conceived “Paradigms.” Adam Smith wrote in “Power of the Mind” a Paradigm is a shared set of assumptions, the way we perceive the world. A paradigm explains the world to us and helps us predict its behavior. Listen attentively—stop the clock when you are listening. (2) Speak without Judgment. Once people realize the importance of truthful communications, the next step is responsible speaking. People must speak honestly and direct but with compassion and respect for the other half of the communications. (3) Listen proactively. According to Scott, one of the biggest challenges to laying aside the accumulated files is in learning how to listen. Set aside Judgment interpretation and “just be there” for the other person. Just get the communication—don’t be preoccupied with how you look, sound, your own knowledge, etc. Hear what the other person is saying. See the other person as your partner in communications. Don’t take what the other person is saying personally, even if it is personal. Don’t get defensive, don’t react. Ninety Nine percent of the time their frustrations have absolutely nothing to do with you but with themselves and the “Conversation” they are having with themselves. (4) Apologize and forgive. Once communication is complete and all file are emptied, apologize to one another when appropriate and forgive. An apology is not an expression of sorrow or an admission of guilt—when used most powerfully , an apology is simply an acknowledgement of one’s impact to another and a statement of responsibility in the resulting upset. It is also an invitation for the other to forgive. True forgiveness wipes the slate clean, destroys the mental files and starts the relationship anew. I will leave you with one question — What is the purpose of language? A clue, the word “conversation” is involved and it has nothing to do with anyone outside yourself.
Computer
& Medical Service Group Report
Computer Service Group
By: Randy Parks
I am pleased to report that the 2002 Conference in Miami was a great success to the IT services companies in attendance. The content was great and networking opportunities abundant. There will be some great presentation information posted on the SIA website from our sessions, be sure to review this.
One of the topics discussed at the conference was the preparation of a White Paper on the benefits Independent Service Organizations bring to the IT services marketplace. The Medical Service Group has already completed their White Paper. Much of the focus on the Computer Group paper will be on issues such as ISO’s being vendor neutral and unbiased and keeping costs from OEM’s competitive. Unlike OEM’s and self maintainers, we don’t have products to sell or “jobs and territory” to protect.. If you have any thoughts or comments that you’d like to see included in this White Paper please send an email to randyparks@aol.com or to Cbetzner@servicenetwork.org. When completed it will be a great document to distribute to potential customers when competing with OEM’s or for self maintained accounts.
I’d also like to remind you that there is a membership referral commission programs in place. You can receive a credit towards your SIA dues for referring new members to SIA. Call Claudia to discuss any potential new members whether they are service companies or vendors you utilize.
If there is anything we can help your business with in the Computer Services arena please don’t hesitate to call or email. My contact number is (561)707-5020.
Medical Service Group
By: Rory Scheving
The 2002 SIA Conference in Miami was a real success; the weather and scenery were not bad either. The meetings this year were exceptional and very informational. I spoke to many of you regarding the conference and I received very positive feedback regarding the programs and the speakers. Many thanks go out to Doug Stephens, from Stephens International, for assisting us by agreeing to join the panel of industry leaders as the medical keynote speaker, “Making Money in Turbulent Times”. I would also like to thank board member David Reihl for his presentation on the process he has taken his company through to move to the next level of customer service while increasing productivity, “Wireless Field Service Automation”. This presentation was timely as we all have to find ways to increase productivity and reduce waste, especially in a capped market. The group was very interested in the design process that David went through to go from a customer service response center with paper, pagers and cellular phones to a paperless system using wireless PDA’s and wireless printers. This new wireless system reduces waste, reduces the billing cycle, increases productivity, and best of customer satisfaction has increased because of reduced downtime. Tom Quinn’s presentation on the FDA and CFR-21 created a lot of good questions regarding manufactures documentation and the liability the service company assumes if they do not have the manufactures service literature. Tom also went on to give us an update of some of the changes that are happening at the FDA, which could include long needed reform of the current system. I want to thank all of you who attended this year’s conference and I want to invite all of you to make the 2003 Conference in Las Vegas, because it is going to be great!
The Benefits of Competition in the Medical Equipment Service Marketplace (An SIA White Paper)
Understanding the medical technology environment and the role service plays provides a basis for discussing the benefits.
The United States, being the biggest spender in terms of per capita expenses and the share of the Gross Domestic Product (GDP) devoted to healthcare, is experiencing a continual increase in healthcare expenditures. To keep up with this growth, new technology is in constant demand. The purchase of new technology can actually reduce the cost of medical care but only if it improves efficiency or the utilization of healthcare resources. Another important consideration when purchasing equipment is the after-warranty service decision. While independent and in-house alternatives to manufacturer service can often save money and provide flexibility, the manufacturers have continued to make it difficult to obtain parts and technical information.
When
there is after-market competition, service pricing is more competitive.
Competition between healthcare facilities has a negative effect on hospital costs, meaning that as competition increases, so does cost. When price competition exists, suppliers compete to serve customers whose main objective is to acquire the maximum value for their dollar. Manufacturers have tried to monopolize the after-warranty service market to control the price levels. However, the consumers want variety and choice in determining their service offerings.
One of the striking features of the U.S. healthcare economy to date is how little value-for-money competition exists in the delivery of patient services. Delivering high-quality service is essential for success and survival in today’s competitive marketplace. The savings that maintenance insurance alone has attributed to the healthcare community is upwards of a quarter of a billion dollars.
When there is after-market competition, manufacturers lose the ability to render a product obsolete by arbitrarily terminating after-sale support.
Access to non-manufacturer service provides the consumer with the ability to continue using a piece of equipment that they already own for as long as its performance continues to be acceptable to them. However, there is a downside to this concept. Equipment manufacturers’ businesses grow with more frequent sales, and the open after-market service takes away from sales. After all, it’s usually cheaper to repair than replace.
When there is after-market competition, quality of service becomes a service differentiator.
Quality service is in the perception of the consumer and whether or not the value equals the perceived service quality. Satisfied customers result in loyal customers, leading to increased profits through enhanced revenues. While it has been proven that complex high-tech devices that experience complicated problems usually experience shorter downtime with manufacturer service, more than 80 percent of service calls do not require special expertise. With factors of quality and price to be considered, end-users should be allowed choices for their service needs.
Non-manufacturer services have other important characteristics.
Non-manufacturer services providers are vendor neutral, more likely to be crossed trained on many different brands of equipment, and more likely to be able to support and fix a facility’s entire equipment inventory. Also, in-house equipment maintenance departments should recognize that they have many interests in common with independent service organizations and should be equally opposed to any attempts by an equipment manufacturer to perpetuate their traditional hold on after-market service.
The evaluation of after-market competition is often complex and involved, but the results can provide invaluable insights and value.
It appears that the U.S. has become, or at least has made great strides in realizing, a post-industrial society, with services assuming the paramount role in the economy. The service sector in the U.S. accounts for about 75 percent of all employment and more than two-thirds of the GDP. The Resourced-Based View (RBV) states that firms can gain an advantage over competitors by using bundles of resources which are subject to mark inefficiencies. When market inefficiencies surround a competency, the result is uniqueness. The RBV is an insightful perspective in that it points to the object of a firm’s focus. Determining uniqueness to differentiate competition is the fundamental idea behind service competition.
Legal Update
Grace Consulting, Inc.(www.gracetech.com), an SIA Member and a third party software maintenance and consulting company based in Parsippany, New Jersey has filed a $75 million Antitrust lawsuit in New Jersey Federal Court against Geac Computer Systems (www.geac.com). Geac, a Canadian Software conglomerate, owns the packaged mainframe software products formerly known as Management Science of America (MSA) and McCormack & Dodge (M&D). These two popular software packages (MSA & M&D) were purchased from Dun & Bradstreet Software at a time when these products, combined, represent over 60% the mainframe financial application market. They are industrial strength applications that process payroll and accounting for many of the largest companies in America.
Grace recently won a 7 year litigation in which Geac had charged that Grace’s competing maintenance services violated Geac’s copyrights. A jury trial in 2000 in Federal Court in NJ found that Grace’s services did not violate Geac’s rights. An appeal is pending in that case.
Grace charges that Geac has attempted to monopolize the market for servicing and maintaining these software packages and that Geac, in spite of the verdict finding that Grace’s services are legal, has interfered with Grace’s prospective signing of new maintenance customers. Grace asserts that the original software agreements gave customers the right to modify and self-maintain the software and to hire consultants for assistance in doing so. Grace further asserts that Geac has changed its policies and practices in an attempt to stifle lower-priced service providers, such as Grace, and to force Geac licensees to use only Geac’s services.
Grace’s attorney, Maxwell Blecher states “Geac has brazenly attempted
to monopolize the service market for the M&D and MSA mainframe
software by using its intellectually property rights in an attempt
to control the service market. Their actions violate our antitrust
laws and have both harmed competitors
and forced customers to pay far more than they should for services.”
Maxwell Blecher of Blecher & Collins, Los Angeles, is one of the
foremost antitrust attorneys in America and has won substantial victories
in other similar service related antitrust cases. Co-counsel representing
Grace is Andrew Kyreakakis of New Jersey.
| Service Industry Association 518 San Andres Drive Phone: 619 221 9200
The Network
for High Technology Service Promoting Customer Choices
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Service Industry Association is a non-profit organization made up of high technology service companies promoting customer choices. |
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Sponsors & Board Sponsors Masterplan Board of Directors: Computer Service Group Business Products Group Medical Service Group Advisor to Board: Paul Thomas, President & CEO
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