Engagement

SERVICE OPERATIONS IN THE B2B WORLD From the trenches Debleena Roy

Engagement

DIGITAL DISRUPTION DRIVING NEED FOR B2B SERVICE INNOVATION TO…

SIMPLIFY PERSONALIZE INSTITUTIONATLIZE

Why Service Innovation is an increasing Trend in B2B

Craft New Revenue Streams

Create Differentiation

Improve Loyalty and Customer

Experience

Why Services in B2B?

Craft New Revenue Streams

Create Differentiation

Improve Loyalty and Customer

Experience

Sysco offered free consulting service, Business Review to engage customers and allow the largest foodservice distributor in North America to thrive in an industry where products have become increasingly commoditized

LinkedIn started offering free resume services as an aggregator services model started off with linking recruiters with recruits; charging for power search Now differentiated with Publishing, Lead Nurturing etc.

BlackRock started offering Risk Management Solutions post 2008 crisis through its Aladdin offering Got new customers who beyond the usual mutual fund customers

Your Sales Data on the Cloud A Few Success Service Model Innovations: Guess Who

• Challenged the existing legacy CRM systems

• Created the concept of software as a service for CRM systems

• Sold multiple levels of software along with customization in services

• Trained salespeople through videos, bootcamp, stories

• Recognized as one of the most innovative companies by Forbes

• Recently survived a takeover bid by a global Technology company

Selling Stories A Few Success Service Model Innovations: Guess Who

• Started off as a news provider for start-ups

• Initial reaction: No one will pay for this

• Rather than structure as a blog, website structured as newspaper

• Focus on Entrepreneur stories from different types of entrepreneurs

• Gradually started conducting events for entrepreneurs

• After years of bootstrapping, just raised money themselves

• Now venturing into creating multi-language entrepreneur guides and stories

B2B or Not 2B

SERVICE OPERATIONS

Manage Service Operations

Design Service Operations

CUSTOMER EXPERIENCE

INTERNAL EXPERIENCE

Sat Sun

Why bother with Customer Experience in B2B?

Why Customer Experience Matters

Where’s the Problem then?

The Changing B2B Dynamics

How Customers are Buying

Engage

Discover

Explore

Buy

Use

Ask

It starts with Customer Experience but what goes behind?

Customer Experience

Enterprise-wide CRM

The Multi-Function View for Designing Service Operations

Digital Customer Experience

Learnings from Digital Commerce

Support a variety of channels. To offer true omnichannel capabilities, eCommerce platform must support a variety of channels, and be able to support product cross-sell and upsell opportunities Need to offer multi-channel fulfillment and inventory tracking Tailor experiences for different users. service multilingual and multinational audiences. platform to provide user account management to help personalize the experience — for example, through tailored price lists and product recommendations. Leverage reporting and analytics to measure effectiveness. provide reporting and analytics of transactions, customer interactions, and the effectiveness of marketing campaigns

Learnings from Customer Service

Complaints to indicate areas where your product needs to be improved or that your content isn’t doing a good job in educating your customers Customers won’t directly reach out your business through email or telephone - use social listening tools such as, SocialMention, GoogleAlerts, or Mention, to get a better idea of what people are saying about your business publicly. Recurring trend in questions, or even complaints, this can indicate areas that may be unclear to your audience in your advertising, website copy, or sales pitch. If an outside source is creating content on how people should best use your products, it could indicate an area where you should be creating more content to inform your customer needs with how-to or tutorial content. This could also mean that your product is too complicated and potentially alienating some of your potential audience.

Conversations between sales

and leads

Complaints

Social Media Comments

Third party Tutorials

Learnings from Marketing: Using Content

Attract Convert Close Delight

Strangers Visitors Leads Customers Promoters

Blog SEO Social Media

Calls-to-Action Landing Pages Forms Contacts

Email optimization Workflow Lead Scoring CRM Integrations

Social Media Email Workflows Measure

Inbound: Marketing with a MAGNET not a SLEDGEHAMMER

Improving Customer Experience with Innovation

Innovations in B2B Customer Service Design

Human touch to online

interactions

Teleconferencing equipment company installed cartoon based chat bot to answer queries

Office Supplies retailer uses chat and co-browsing to increase online sales

Immediate Interaction

Simply called offers mobile screen sharing promises to reduce customer service costs with more efficient customer-rep service interaction

Mobile to the rescue

HeyWire’s enterprise-class text solution, customers can send SMS messages to company landlines and connect with a live agent who can answer questions in real-time via text

Testing the text

Innovation in Website Functionality

EMAIL MARKETING: MAILCHIMP

CRM SYSTEMS: SALESFORCE

Innovation in Website Engagement

Background: B2B Security Vendor Webroot was receiving low customer conversions from its website product pages Audience: Security Heads of businesses Solution: Added video reviews to Product Pages Results: 3.4 times more conversions from earlier

Innovation in use of Content

Background: Multi-channel campaign to improve customer engagment for disaster recovery services Audience: Revenue greater than $50 million Title of director level or above Company fitting into SunGard's key vertical Solution: A digital manual about surviving the zombie apocalypse that was focused on SunGard's business continuity disaster recovery services. Email campaign tied into the theme with messaging including, "We haven't heard from you in a while. Are you among the walking dead?“ Call-to-action, a landing page where registrants would get physical "zombie survival kit.“

Continued…

The "IT Availability Cloud" email campaign achieved 1.2% higher click-to-open (CTO) among director level, and above average rates in global, large and medium enterprises. The "Disaster Recovery/Managed Recovery Program" campaign created a 3% increase in CTO among president or owner titles. The retargeting email reactivated 2% of contacts who had not interacted with SunGard within the previous six months.

Innovation in Customer Experience Tracking

• Multiple ways including surveys, social listening, customer effort score etc.

• NPS is a key metric. B2B companies have seen customers who were Promoters (as defined by Net Promoter Score) had a 25 to 30 percent higher renewal rate than Detractors.

• Cisco's "ease of doing business," determined via analysis as the top driver of customer and partner loyalty. The company employed feedback tools as annual relationship surveys and monitoring of social media to quantify the areas affecting perceptions of ease of doing business

• Action: Undertook improvements, and let customers know how it is addressing specific issues through a "We're Listening" blog. Bottom line: fix such things as navigation issues with its support website, ordering rules, and difficult tools that delayed invoicing – all of which saved a whopping $750 million each year, in addition to improving customer experience.

Loyalty

Customer Satisfaction

Ease of use Speed of resolution

Net Promoter Score

…Across Transcations

…Specific elements

Not very far in the Future

Does Analytics Help?

How Analytics helps

Mobile

Page views Source Time spent

Web data

Survey response

Reviews Blogs

Transactional data

Marketing response

2. Product Purchase

3.Marketing efforts

4. Repeat Purchases

5. Customer servicing cost

6. Customer Churn

1. Contact Acquisition

Customer

Transactional data

Support data

Social media

Integrate customer touch-points data and create metrics to…

Measure and Recommend

Measure & track customer satisfaction

Identify key drivers to customer satisfaction

Recommend actionable insights

• Who are the dissatisfied customer?

• What are the main pain points faced by customers?

• How is customer experience trending over time?

• What is the preferred channel to reach out to customer?

• What is impacting customer experience?

• Who are the best customers?

• Which customers are at risk and needs immediate attention?

• What are customer sentiments, needs, and preferences?

• How to optimize service cost?

• What product features to enhance?

• How to improve service agent productivity?

• How to sale at the point of service?

30 30

assess pain points in customer experience

through analysis of social media

posts and comments

Measuring and reacting to IT user experience across

email, chat and surveys

assess key drivers of volume &

dissatisfaction with support instances

track various engagement indices and correlate with visit , spend share and social media

trends

User Experience from emails and surveys

Customer Support Log analysis

Customer Loyalty Tracking

Social Media Feedback analysis

Using Data from Different Sources

• Agent notes are textual, and contains many spelling issues. Publicly available lexicons & dictionaries are used to enable this

• The history of conversations were broken into single discussions to allow separate analysis

• Semantics based text mining methods are used to segment discussions into various topics which allowed to identify various reasons for calls.

• Analysis of service instances needing multiple calls provided insights on key bottlenecks in the claim management process.

• Analysis of time taken to resolve various issues helped to set right expectations with customers

Internal unstructured query logs from call centre Agents

The Client is a large provider of group insurance especially in the US. Hundreds of queries regarding claims and other related service are made by customers at the company’s contact centre every day. The objective of the project was to analyse the huge volume unstructured texts in contact centre agent comment to assess the key drivers of service call volume and other related aspects .

Objective

Data Structuring Identify Key topics Analyze drivers of delay

• Insights obtained from the exercise helped the insurance company identify key bottlenecks in the process and conceptualize measures to significantly decrease the service instances as well as improve customer satisfaction.

An Example using Unstructured Data Analysis

Customer Journey Map

Why you need a Customer Journey Map

WHO

WHY?

WHEN?

WHAT?

WHERE?

Engage

Discover

Explore

Buy

Use

Ask

PERSONA

BENEFIT

CONTENT

CHANNEL

Crafting a Customer Journey Map: Who

Buyer Persona: Busy CEO reaching for an CeX Analytics Solution

Seller Persona: CeX Start-up offering 360 degree Customer Experience tracking dashboards

Benefit: Why?

• Have multi-channel Customer Experience Data • Need one single solution to track all Customer Experience • Need a dashboard that will integrate the customer information • Need predictive triggers to identify service improvement opportunities • Need customizable engagement model that can be scaled with the

business

Customer Buying Journey Decides (content): What C

om

ple

xity

of

Solu

tio

n

Complexity of buyer’s buying journey

SHOW ME Solution Trends Success Stories

ENLIGHTEN ME Thought Leadership Business Challenge

SERVE ME Product benefits How to guides Differentiators

GUIDE ME Tips and Techniques Evaluation models Benefits

Co

mp

lexi

ty o

f So

luti

on

Complexity of buyer’s buying journey

SHOW ME Sales Rep Analysts

ENLIGHTEN ME Conferences Peers

SERVE ME Vendor website Social networks Online chat

GUIDE ME Inside Sales Vendor SME

And Channel to Optimize Service Operations: Channel

Crafting a Customer Journey Map: When Customer Process

Internal Process

Experience

Improvement and key

learnings

Search for vendors

Compare vendors

Website SEO Email marketing

Shortlist vendors

Float RFP

Choose Supplier

Too many vendors No differentiation

Mobile responsive website Contact Form on every page Solution case studies

Price list not clear

CEX ROI calculator on website Video testimonials Online chat

Free trial period Services plus model for customization

Website Events Sales Reps

Need customization in CeX dashboard

Website Events SalesReps

Incomplete documents Inflexible engagement

Sales Operations Solutions Delivery Quality

Flexible contracting model using SAAS Tiered pricing model based on usage

MATCH

Create Initial Map

Persona Key trends Attitudes and Emotions Support Needed

Evaluate

Evaluate Attributes Prioritize Focus Determine Impact

Clarify Needs and drivers Examine Capabilities (roles and Processes)

Explore Brainstorm Design New Experience

Desired Transformation Brainstorm Innovation Build Design Canvas

Reality Check Redesign Experience

Steps to Develop a Customer Journey Map

A Typical Customer Journey Map

Awareness

Website Advertising Trade Press CSR Sponsorship Company Reps Employees Customer Referrals

Interest

Prospect Material

Promotional Offers Existing Product

Lines Key

Advisors Cold

Calling Customer

Service lending

Decision

Proposal Face-to-

face visits Agreement Negotiation

Site Visit Ongoing contract

Service set up

Site Visit Welcome

Call Account Creation

Credit check SLA

Handover First order

Regular contract

Service delivery

Phone/ mail

Delivery Account manager

visit Invoice

Follow up Service

call/mail

Relationship strengthening

Additional product installs

Customer Tracking

Free services Promotion

support

Concern

Complaints Price Rise Missing/

failed deliveries

Late Installs

Staff Churns

Leave/ Return

Stop order Debt

recovery Alternative

Supplier AM

Contract plan

Lapsed customer

call

Let’s Play

Company Background: Established start up looking to disrupt the talent sourcing and HR space for small and medium size businesses in a variety of industries. Since the purchase also requires significant internal process change, it takes time for to build trust and buy-in across the involved stakeholders (including HR and functional business leads). The marketing team develops detailed product content, white papers, and client testimonials for use by sales during the sales cycle. Challenge: The end-to-end sales cycle is long (over 18 months) and increasing. Each deal is considered high risk. To raise the chances of winning deals, marketing has focused most recently on producing content to support the sales process and streamline deal conversion. Need to focus on attracting and capturing targeted traffic to improve the overall ‘funnel health’ while continuing to support sales efficiency. increase the closure rates. Buyer Needs and Concerns: The key decision maker for their solutions is typically the COO or VP Human Resources, but they rarely are involved through the entire buying process. Since outsourcing talent and HR is a complex decision – with consequences touching every employee -- potential customers often have many stakeholders involved in the process, but most don’t know much about the solutions available to them. While all buyers realize this is an important company investment, most stakeholders lack the time (and interest) to get deeply involved in the details of decision making criteria and supplier comparisons.

Choose Persona, Create Customer Journey and Service Design

Choose Persona, Create Customer Journey and Service Design

Buyer

Seller Issue Impact

Issue New Attitude New Behaviour

New Experience

What? When? Enabled By? (Service Operations) Will Solve?

Why is Service Operations Important in B2B?

B2B or Not 2B

SERVICE OPERATIONS

Manage Service Operations

Design Service Operations

CUSTOMER EXPERIENCE

INTERNAL EXPERIENCE

Sat Sun

A Day in the Life…

And another?

Where’s the Problem then?

A Classic Story

Lessons from Boeing: Failing to Fly

Situation Objective How? Result

Losing market share to Airbus (owned by EADS) in the late 1990s

Reduce costs (and the selling prices) of its existing aircraft? Or…. Innovate with a new aircraft that would generate revenues by creating value for customers.

Use outsourcing to reduce 787 development time from six to four years and development cost from $10 to $6 billion Improve their travel experience for passengers. Change from (aluminum), to composite material (carbon fiber, aluminum and titanium) to allow increased humidity and pressure in the passenger cabin, improving flying experience. Would enable nonstop flight between any pair of cities without layovers. Aimed to improve value for its immediate customers (the airlines) by improved efficiency to bring 20% less fuel and cost-per-seat mile 10% lower. Reduce airlines’ maintenance and replacement costs.

was the opposite. The project is billions of dollars over budget and three years behind schedule

Choosing an Outsourced Activity

Strategic Planning Supplier Selection and

Contracting Implementation and

Monitoring

Activity Selection

Location Selection

Entry Mode Choice

Supplier Selection

Security Requirements

Contract Negotiation

Transition Management

Ongoing Project Management

To Design an FMEA

Strategic Planning

Supplier Selection and Contracting

Implementation and Monitoring

Causes Risks Effects Corrective Action

The coordination risk No on-site support for its suppliers. In fact, it explicitly delegated this responsibility to sub-contractors. When the subcontractors didn’t perform the necessary coordination, Boeing had to provide the support anyway. “Boeing sent hundreds of its engineers to the sites of various Tier-1, Tier-2, or Tier-3 suppliers worldwide to solve various technical problems that appeared to be the root cause of the delay in the 787′s development. Ultimately, Boeing had to redesign the entire aircraft sub-assembly process.” The result? Huge additional expense, that should have been planned for and included in the project’s costs from the outset.

The innovation risk The 787 involved not merely the outsourcing of a known technology. It involved major technological innovations unproven in any airplane. Would the carbon fiber composite survive the rigors of international flying? Could lithium-ion batteries, which are notorious for overheating and causing fires that are difficult to put out, be safely used? No one knew for sure. The 787 also contains multiple new electrical systems, power and distribution panels. The interactions among these novel technologies, introduced simultaneously, also exponentially increased the risk of innovation. The innovation risk implied a greater involvement by Boeing in the development and manufacture of the aircraft. Astonishingly, Boeing opted for lesser involvement, delegating much of the detailed engineering and procurement to sub-contractors. The result? Unexpected problems have kept occurring that have delayed the project and increased its cost.

The outsourcing risk Complicated products like aircraft involve a necessary degree of outsourcing, simply because the firm lacks the necessary expertise in some areas, e.g. engines and avionics. For the 737 and 747 it had been at around 35-50 percent. For the 787, Boeing planned to increase outsourcing to 70 percent. The 787′s supply chain was envisioned to keep manufacturing and assembly costs low, while spreading the financial risks of development to Boeing’s suppliers.” Outsourced the engineering and construction of the plane long before the product was defined and the relative costs established. Boeing’s 787 project is many billions of dollars over budget. The delivery schedule has been pushed back at least 7 times. The first planes were delivered over three years late. The risk of tiered outsourcing Unlike Boeing’s earlier aircraft, in which Boeing played the traditional role of integrating and assembling different parts and subsystems produced by its suppliers, the 787′s supply chain is based on a tiered structure that would allow Boeing to foster partnerships with around fifty Tier-1 strategic partners. These strategic partners were to serve as “integrators” who assemble different parts and subsystems produced by Tier-2 and Tier-3 suppliers. Tier-1 strategic partners did not have the know-how to develop different sections of the aircraft or the experience to manage their Tier-2 suppliers. Result: To regain control of the development process, Boeing was forced to buy one of the key Tier-1 suppliers (Vought Aircraft Industries) and supply expertise to others. Boeing also had to pay strategic partners compensation for potential profit losses stemming from the delays.

The offshoring risk Some degree of outsourcing in other countries—i.e. offshoring—is an inevitable aspect of manufacturing a complex product like an airplane, because some expertise exists only in foreign countries. For example, the capacity to manufacture Lithium-ion batteries lies outside the US. Boeing had no choice but to have the batteries made in another country. More than 30 percent of the 787’s components came from overseas. By contrast, just 5 percent of the parts of the 747, were foreign-made. While there is nothing in principle wrong with necessary offshoring, the cultural and language differences and the physical distances involved in a lengthy supply chain create additional risks. Mitigating them requires substantial and continuing communications with the suppliers and on-site involvement, thereby generating additional cost. Result: Boeing didn’t plan for such communications or involvement, and so incurred additional risk that materialized.

The risk of communications by computer Rather than plan for face-to-face communications and on-site communcations, Boeing introduced a web-based communication tool called Exostart in which suppliers were supposed to input up-to-date information about the progress of their work. The tool was meant to provide supply chain visibility, improve control and integration of critical business processes, and reduce development time and cost. Instead of people communicating with people face-to-face, the computer itself was supposed to flag problems in real time. Not surprisingly, the tool failed. Suppliers did not input accurate and timely information, in part due to cultural differences and lack of trust. Result: neither Tier-1 suppliers nor Boeing became aware of problems in a timely fashion. Boeing’s reliance on computer communications contrasts sharply with face to face, agile communication ensure that everyone is on the same page.

The labor relations risk Maybe had a desire to circumvent difficult labor relations in Seattle. The approach backfired, as labor relations worsened as a result of the outsourcing decisions and a costly strike ensued. The project management skills risk Boeing’s original leadership team for the 787 programdid not include members with expertise on supply chain risk management. Without the requisite skills to manage an unconventional supply chain, Boeing was undertaking a huge managerial risk in uncharted waters. The risk of a disengaged C-suite Boeing’s CEO was in Chicago, strategizing about the future of Boeing and discussing civic goals with CEOs from other companies, the managers back in Seattle were making business decisions about tiresome “how-do-you-design-an-airplane stuff” that would determine whether there would be a firm to strategize about.

Building a Shared Services

Focus &

Organize

Capture

Expectations

Build on

demand Expand

Build

Credibility

Operational Excellence

Strategic Planning

Operations Human Resources Financial Others

Level of face-to-face Interaction Availability of skill set

• Availability of labor pool in low cost country

Labor cost differential

Regulatory requirements

• Onshore and offshore

Level of creativity Level of training new resources

required

• Training time required

Quantity of position

• Availability of resources in offshore country

Security requirements

• Data privacy

Value in centralization and standardization

• Time and materials

Level of training existing resources required

• Level of training required for change in process and positions

Opportunity for re-engineering

• High opportunity – high cost savings

Enable new services/markets

• New market opportunity not existing before

Repeatable process

• Level of "re-engineering" current processes to accommodate

• Discrete nature of activity

Career implication

• Exposure for continuing evolvement of onshore position and process

• Workforce development

Measurable output

• qualitative and quantitative

Employer of choice

• Reputation on shore vs. offshore

Technology required to support

• Complexity of workflow management

Current job concentration

• (high -> easier to share)

Geographical concentration

• (high -> easier to share)

• Economics of scales

• Stakeholder acceptance •

Cost savin

gs

•R

evenue o

pport

unity

Shared marketing services

Shared Services Structure

• Dashboard design

• Ad-hoc Reporting

• Trend Analysis

• Multivariate Analyses

• Segmentation

• Predictive Modeling

• Forecasting

• Optimization

• Market Intelligence

• Competitive Benchmarking

• Strategy & Planning Support

• Survey Design

• Sample Design

• Web-survey support

• Survey Reporting & Analysis

Reporting & Performance

Analyses Modeling & Optimization Business Research Primary Research

Data & Design Services

• Creative Services • Operations Help-desk • Content Mgmt.

Lean Regional Opportunity Management Group

Technical Team for Designing Solutions

Strategy &

Planning

Product

Management

Marketing Program

Mgt Marketing Comm Industry & Solutions

Supplier Selection and Contracting

Implementation and Monitoring

Key Requirements in Offshoring

Activity Selection

Activity Selection

Key Requirements in Offshoring

Allocation of Projects

Estimation of Demand

• Understand demand and prioritize

• How many people are available

• How much time are they available for?

• Estimate resourcing

• High level breakdown of work

• What skills are required to do the work

• Complexity of planned work

• Interdependencies • High level risks

Resource Planning Methodology

Why it Fails

General Motors created a stir when it announced it decision to insource a majority of its IT operations to delivery centers in the U.S

• Failure to meet expectations • Need for in-house expertise • Marketplace pressures • Lack of financial segmentation • Lack of modular service operations • Retained team skills

MarketPlace Failure Learnings

Background: Establish virtual services for the consulting sector, such as Synergy catalog, a directory with information on companies offering advisory services in Slovakia and an e-marketplace for paid advisory services where businesses with a need for advisory services could describe their problems and advisory firms could propose solutions and submit bids. Synergy’s services were supposed to be financed by registration fees and commissions to be paid by the advisory services providers. What happened: After one and a half years only 150 advisory firms had been listed in the catalogue. The events on the e-marketplace amounted to only a few dozen. As a consequence, business activities were stopped at the end of 2003. The internet platform is still online, but in sleeping mode. Why it failed: First, the home market in Slovakia appears too small for the provision of virtual consulting services. It cannot provide the footprint necessary to make such offers viable. Secondly, industry-specific business and communication processes have not been reflected well enough by the platform. Price transparency is not greatly appreciated by the providers of advisory services. Many customers of advisory services prefer to stick to already established relationships. The platform, however, was not designed to support existing relationships.

Service Operations Innovations

Managed Services in B2B

• Pending upgrade to an enterprise application (e.g., ERP, core banking system or

• other) • Support global expansion into new markets • Divestiture, merger or acquisition • Need to reduce IT costs • Desire to consolidate multiple B2B programs onto a single platform • Improve business process efficiency in supply chain, payment

processing, etc. • Need to replace/retire aging B2B platform with modern capabilities • Improve customer experience (e.g., accelerate on-boarding times, offer

more flexibility) • C-Level strategy to outsource more IT functions

Need

Managed Services in B2B

Background: Arcelor Mittal wanted to reduce the support and maintenance cost of mainframe based applications that had been designed before

Solution: GXS has taken over the management of routing and translation for more than 100,000 EDI messages each month to and from ArcelorMittal’s different trading partners around the world Impact: takes away the need to maintain low-level expertise in B2B technology in-house and provides efficiency improvements that make core business processes smoother and more reliable

MarketPlace Learnings

Background: The market: Translation services required by companies The initial Model: Marketplace for connecting buyers and sellers at the cheapest price Result: Failure. The customer need was not to find cheapest translator but the one best suited for the requirements Solution: • Add project management and consulting services • Each client has own project manager who could understand requirement and

find the best translator • Knowledge management system with prior projects done for client to get an

idea of style requirements

Innovations worth spreading

SATMAP, for example, is a software solution that uses advanced analytics to improve service in call centers. It helps companies match callers to service agents with appropriate personalities, resulting in higher rates of customer satisfaction and service-to-sales conversion

Pervasive machine-to-machine (M2M) connectivity is already facilitating real-time service delivery in a number of B2B applications, such as the sensors GE uses in aircraft engines to monitor performance and improve the efficiency of maintenance

Help field technicians in densely populated urban areas balance their workloads in real time. The app acts as a sort of clearinghouse for service calls: when technicians realize that they may be late for the next visit, they can trade it to a nearby technician who has just finished a job early

Mobile Analytics Internet of things Workflow for

work

Does Analytics Help?

Using Data and Analytics

Objective: Drive Efficiency

Understand and Visualize

performance

Forecast based on past trends

Optimize Performance and

Utilization

Simulation and what-if analysis

Predict performance and increase efficiency and effectiveness of available resources based on optimal allocation given the business constraints

Resource Planning and Optimization

Using Data and Analytics

Disparate Data

Descriptive Information Technology

Operational Analytics

Survey Data Customer

support data

Social data

• Why are Customer Satisfaction metrics not reflecting the slide?

• Are we measuring our performance right? • What do we do to reverse the slide?

Business Questions?

Rich incidence as well as account level satisfaction

scores

All transcribed customer support data across

calls/email/chats

Reviews/ Blogs/ Opinions/ Expert Analysis

Using Data and Analytics

Query across 360 degree customer data view

Identify drivers of customer experience

from customer interactions

Prioiritize key actions to focus on

Data Integration Platform

360 degree Customer View

Key Driver Analysis Insights and

Recommendations

Incidence rate

10% Adoption Rate

10% Support Satisfaction

14%

Using Data and Analytics

Business Objective: Identify opportunities to minimize supplier cost

Analytics: Use transaction data to segment spend into various categories, analyze supplier distribution, spend coverage etc. Segmentation and Text Analysis used Outcome: Process and frameworks to proactively reduce cost

Using Data and Analytics

Business Objective: Supplier consolidation

Analytics: Analyze spend, supplier performance, rate variation, dependence across categories Variance Driver analysis used Outcome: Better compliance and cost management

Using Data and Analytics

Business Objective: Opportunities to optimize contract terms

Analytics: Analyze rebates, payment terms Augment data from supplier financials, contracts to create Dashboard and forecasts Outcome: Supplier scorecards

Let’s Play

Exercise

• A global Insurance company is struggling with declining profit margins • You are asked to look at the Service Desk Operations of the Company that is

currently being handled internally • They feel the need for increasing efficiency and improving bottom line by 5% • The entire Service Desk sits out of Birmingham, London • The company is a global firm and has operations in 15 countries including in

India, China, Latin America • And they also give you some sample data from a team • What more information would you look for? • What are the Service Management options you would cover? • Justify the chosen model and suggest innovations for managing it

Exercise

Measure (Team Averages) January February March April May June July August September October November December

Tickets Closed (Number of Incidents and Service

Requests) 119 111 74 102 99 121 101 96 91 103 95 84

Incidents (Number) 81 76 49 58 75 76 77 59 59 74 55 60

Service Requests (Number) 38 35 25 44 24 45 25 37 33 28 40 24

Ticketing Quality Score (Percent) 90% 90% 100% 97% 90% 97% 90% 97% 97% 83% 100% 97%

Customer Satisfaction (Percent) 97% 97% 97% 98% 98% 97% 97% 97% 91% 89% 79% 79%

Surveys Received (Number) 23 33 26 19 28 24 36 27 30 27 22 24

Call Handle Ratio (Percent) 98% 100% 98% 95% 99% 98% 99% 98% 92% 98% 99% 95%

Abandonment Rate (Percent) 2% 3% 2% 2% 2% 3% 2% 1% 1% 2% 3% 3%

Call Availability (Percent) 83% 89% 91% 87% 89% 84% 91% 88% 91% 89% 87% 89%

Calls Handled (Number) 55 51 45 48 55 58 52 40 34 40 46 42

Average Talk Time 125 119 122 143 117 126 122 111 127 112 123 139

Unplanned Absence (Hours) 3 0 5 0 3 3 0 8 0 6 1 1

Planned Absence (Hours) 13 0 3 21 5 13 0 3 8 3 0 8

Remember the parameters

Operations Human Resources Financial Others

Level of face-to-face Interaction Availability of skill set

• Availability of labor pool in low cost country

Labor cost differential

Regulatory requirements

• Onshore and offshore

Level of creativity Level of training new resources

required

• Training time required

Quantity of position

• Availability of resources in offshore country

Security requirements

• Data privacy

Value in centralization and standardization

• Time and materials

Level of training existing resources required

• Level of training required for change in process and positions

Opportunity for re-engineering

• High opportunity – high cost savings

Enable new services/markets

• New market opportunity not existing before

Repeatable process

• Level of "re-engineering" current processes to accommodate

• Discrete nature of activity

Career implication

• Exposure for continuing evolvement of onshore position and process

• Workforce development

Measurable output

• qualitative and quantitative

Employer of choice

• Reputation on shore vs. offshore

Technology required to support

• Complexity of workflow management

Current job concentration

• (high -> easier to share)

Geographical concentration

• (high -> easier to share)

• Economics of scales

• Stakeholder acceptance •

Cost savin

gs

•R

evenue o

pport

unity

Shared marketing services

Stories no one will hear with Service Operations at the helm

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”