GE Access Exec: Solution Providers Need To Change Their Ways

"IT itself is not a competitive advantage. How IT is used to support new business models is a competitive advantage," said Michael Minard, executive vice president of GE Access, Boulder, Colo., during a keynote address.

Minard cited airline company JetBlue as one example how a differentiated business model can lead to success. While other airlines have struggled in the last year, JetBlue revenue increased 109 percent in the second quarter and earnings increased 93 percent, Minard said.

"How do they do it? It starts with mind set. The JetBlue CEO describes the company not as an airline, but as a services company. It's invested millions in IT infrastructure, but it's how it spent its money. When you call JetBlue to make a reservation, the agent is not sitting in a call center somewhere, they're sitting at home," Minard said.

JetBlue hired 300 experienced agents to work from home offices, which tapped an underutilized labor pool and cut overhead, he said.

"Two months ago, JetBlue went wireless at JFK [Airport in New York. They can check you in anywhere now, inside, outside. JetBlue is doing business differently and the bigger airlines are scrambling to remain competitive. There's nothing wrong with trimming costs, but real wealth is for those who create new business models," Minard said.

One opportunity for solution providers is to offer business assessment services.

"Customers will look to you for advice and for new solutions. But before you sell an IT solution you have to solve a business problem," Minard said. "Identify customers' pain points. Uncovering real opportunity requires delving a little deeper. Even if the cash register still rings around products, one of the existing tools you can lead with is assessments. Help them evaluate their existing infrastructure to increase their business effectiveness. You've become a trusted advisor. Assessments uncover opportunities."

For example, a customer may have increased their storage capacity, but a business assessment may show that the existing network cannot support that capacity, he said.

"We have a solution practice mentoring program. We can show you how to use Sun [Microsystems' storage assessment tool. We'll show you how to engage our professional services team if you don't have the bandwidth yourself," Minard said.