toronto, canada may 30, 2013 contact center · reduced call center costs. project cost comparisons....

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Connect 1 1 © 2012 Cisco and/or its affiliates. All rights reserved.

Toronto, Canada

May 30, 2013 Contact Center A New Phenomenon And A Transformation

Frank Kicenko

Consulting Systems Engineer

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2 Cisco Confidential Cisco Connect 2 © 2012 Cisco and/or its affiliates. All rights reserved.

Background

• Application Developer (QNX / Astra Networks)

• Mind Computer Manufacturer (BIOS / R & D)

• MetroNet Communications / AT&T / Allstream (Lead Network Engineer)

• Ceridian Canada (Network Architect)

• Ceridian USA (Global Network Architect / Manager Contact Centers)

• Cisco Systems

Agenda

The Case Study – Business Processes

The Implementation - Finesse

The Implementation - IVR

The Implementation - Video

Q & A

Business Process Transformation: Contact Center

Challenges

• Understanding the requirements from 8 different

business units

• Producing a business plan showing a significant

NPV that will enable funding for the project

• Converting a Cost Center to a revenue contributor

Solution

• Map out a functional roadmap as a starting point

• Utilize Six Sigma to align the business units with the

end customer and produce reliable and repeatable

processes

Results

• Solid business plan that held up under financial

leadership scrutiny

• Confidence and buy-in from all business units

• Transform business processes to utilize the latest

technologies to produce higher customer satisfaction

Case Study

Contact Center Case Study

London Canadian (2)

Benefits

Scotland

Manila

India

Dominican

Republic

Mauritius

Payroll

Lifeworks

• 8 Business Units

• 6000 Agents

• 7 countries

Consider the Business Issues, challenges and requirements “hand in hand” with technical strategies and capabilities aligned with the overriding

IT Strategy and produce a roadmap

Roadmap Methodology

• Six High Level Phases

Define

Projects

and

Programs

Roadmap

Dev. Prioritize

Definition

Of

Initiatives

End State

Definition

& Goals

Current

State

Discovery

In other words, 1. What do I have today, and what projects are running? 2. Where do I want to be, by when? 3. What is going on that will affect/influence my path? 4. What is most important and what will deliver the greatest benefit? 5. How do I turn this input into a roadmap? 6. What Programs and/or Projects will implement the steps in my roadmap?

Roadmap Methodology – Detail Steps 1-3

Definition

Of

Initiatives

End State

Definition

& Goals

Current

State

Discovery

Installed base of Contact Centers

Current and planned CC Projects

Current Changes, Incidents and Problems


Definition

Of

Initiatives

End State

Definition

& Goals

Current

State

Discovery




Business Requirements

Key Infrastructure Projects

IT Strategy

Technical Options

Industry & Market Trends


Definition

Of

Initiatives

End State

Definition

& Goals

Current

State

Discovery






IT Strategy

Technical Options


Key Infrastructure Project Detail

Related Project Portfolio

Key Business Drivers & Objectives

Roadmap Methodology – Deliverables

Definition

Of

Initiatives

End State

Definition

& Goals

Current

State

Discovery

1. Contact Center Inventory

3. CC Project Portfolio

2. Summary of current issues, changes and problems

4. Current Cost Overview



IT Strategy

Technical Options





Roadmap Methodology – Deliverables

Definition

Of

Initiatives

End State

Definition

& Goals

Current

State

Discovery

Business Requirement Definition

List of Key Infrastructure Projects that are related to Contact Centers/Telephony

Assessment of related sections of The IT Strategy

Description/Scope of Tech Capabilities

Description and Impact of Industry & Market Trends




1. Contact Center Inventory 2. Summary of current issues, changes and problems 3. CC Project Portfolio 4. Current Cost Overview

Stage 1 : Current State Description

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 13

Begin Six Sigma Request an expert for:

The need to fully

understand the business

View the end customer within every process

The need to fully

understand our

customers

Influence our Content Roadmap:

What Are We doing…

General background statement to define the nature of the work:

Current telephony systems are based on a legacy Time Division Multiplexing (TDM) technology that requires its own infrastructure and support mechanisms. Extensive electronic components are required to facilitate this infrastructure and is not conducive to Moves , adds and changes. These systems also require separate FTE's to maintain. The legacy systems are aging and their availabilities are directly impacting our internal and external SLA to a point where are external customers are at risk. The inherent infrastructure is costly and doesn't allow us to take advantage of great cost savings due to consolidation and centralization. Yearly maintenance costs are exceeding $1.2M and rising due to the age of the systems.

Define 1. Identify the major source problem areas that are impacting customer SLA's. Identify major cost savings by replacing the aging systems. Map each of these areas out. 2. Survey individual Business Units and map out impacting areas of concern. Measure

3. Map out the Critical to Quality (CTQ) Characteristics behind these problems.

4. Establish performance standards for each CTQ.

5. Conduct Measurement System Analysis.

6. Define baseline performance levels.

7. Define process capabilities.

Analyze

8. Identify the causes behind errors and defects through testing.

9. Apply specific techniques such as FMEA

Improve

10. Develop and evaluate solutions.

11. Design a To Be Process and Test Pilot.

12. Submit Full Scale Improvement Plan.

Control

13. Design a Control Plan

14. Summarize and Communicate Best Practices.

15. Develop Operating Procedures and Training Modules.

16. Create a Project Summary Document

What's Wrong?… Pareto Chart Impact of Telephony Systems Failures on Internal / External Customers (JAN /09 - JUNE /09)

Contributor % Impact Notes

I3 PBX Software

Failures49%

Telecom Human Error 25%

I3 PBX Hardware

Failure18%

Telecom Circuits 8%

Total 100%

49%

25%

18%

8%

0% 0% 0% 0% 0% 0%0%

10%

20%

30%

40%

50%

60%

I3 PBX SoftwareFailures

Telecom HumanError

I3 PBX HardwareFailure

Telecom Circuits

Basic Steps for Pareto Chart:1. Quantify the Impact of Each Defect

2. Rank in Descending Order

NOTE: You should have at least three types of defects. If you have too many, then you may w ant to group them together.

This Pareto Chart simply looked at different types of Telephony Faulures and how do these relate to Customer Satisfaction.

** These stats w ere derived from the 2009 HS UPTIME MONTHLY MASTER REPORT and their associated RCA's.

Measure the Customer Experience… Critical to Quality Characteristics (CTQC)

Call Center Telephony Project

< - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Operational Definition - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - > Continuous

No CTQ per Diagram Performance Standard Measurement Test Measurement Results or Discrete

1 Redundant / Reliable Telephony Systems - Internal

Customer / Internal SLA's are measured daily

and weekly and are within acceptable levels

Telephony system avalability is measured as

uptime for a customers service within a BU Service Desk Outage Reporting Discrete Broken

2 Diverse / Redundant Telecom PSTN - External

Customer / Internal SLA's are measured daily

and weekly and are within acceptable levels

Telephony system avalability is measured as

uptime for a customers service within a BU Service Desk Outage Reporting Discrete Broken

3 CTI / Web Self-Service Integration

Higher customer satisfaction levels and

reduced Call Center costs.

Project cost comparisons. Call Center Cost

reductions and improved customer service levels.

Key KPI measurements

Business Unit measurement of monthly KPI's

and SLA's Discrete Broken

4 IVR Quality Programming

High deflection rate (calls satisfied within the

IVR) Customer SLA and KPI Measurements


and SLA's Discrete Broken

5 Telecom System Administration

Quicker time to market for projects resulting

in lower project costs and higher customer

satisfaction. Telecom FTE Cost analysis GNS Monthly Run Rate Analysis Continuous Broken

6 Automated Processes

Lower telephony operating costs and Call

Center administration Call Center Cost analysis


and SLA's Continuous Broken

Preliminary Testing and Reviews for each CTQ listed above:

1. Compare the current availabilities of our telephony system and its direct affect on the end customer's SLA.

2. Compare the current Telecom Circuit availabilities and its direct affect on the end customers SLA

3. Compare the active Telecom group personnel and Professional Service outsourcing to support the telephony systems and the BU

3. Contact the BU to analyze current % of customers utilizing these features and their availabilities

4. Contact the BU to determine current deflection rates and % of calls completing within the IVR

Based on the four tests above, one of three grades was assigned to the CTQ:

Working - The process related to CTQ appears to meet the performance standard defined.

Broken - The process related to the CTQ appears to be broken and needs improvement.

U T D - Unable to Determine; need to sample and test the population data.

This preliminary review should assist to determine the scope and downstream work required for this project.

Preliminary

Testing Results

Process Mapped to A Customer (Internal/External)

AT & T / Sprint 1-800-# Automatic Number Identifier (ANI) Inbound Call Detail Records Call Center Operations Team

Dialed Number Identification Service (DNIS)

Ceridian's Customer Social Security Number (SSN) Call Processing Record Call Center Operations Team

Account Number Call Deflection Record

Menu Selection Average Speed of Answer (ASA)

Web Self Services Records BU Managers, GIS Teams

Ceridian CRM Customer Account Information

Callers Call History

Customers Priority

Call Center Supervisors Call Handling Information Monthly Performance Reports COO, BU Managers

First Call Resolution (FCR) GIS Teams

Average Handle Time (AHT) Quality Team

Customer Survey After Call Work (ACW) COO, BU Managers

Customer Satisfaction Record Quality Team

SIPOC DIAGRAM - High Level

► ►

Call Center and Telephony Project

► ►Supplier Input Process

Inbound Call

IVR Processing

CTI Integration w/CRM

Queueing

Routing

Output Customer

CSR

After Call Work

The Voice of the Customer Customer Benefits Requirements Rank Measure

Direct internal

Service / Call Center Operations

Phone Agents

Agents are aware of the current

call flows and the KPI metrics at

all times

Dashboard Statistics 6

Supervisors

Streamlined Call Centers with

predicabilities. Ability to control

agent counts. Dashboard

reporting and tight WFM QA

allows better selection of agents

and training.

Quality systems with high

availability. Call Center

Dashboards. First Call

Resolution

9

Management

Cost controls. Superior SLA's

and customer retention.

Processing more contacts with

less and a higher percentage of

FCR. Virtualization.

CTI integration as well as

Multi-channel (inbound email

and chat). Complete

IVR/ACD and Web self

service is essential

6

Call Center Service Delivery

Workforce Mgmt

Higher levels of training. Better

control of agent scheduling and

suggestive training processes to

achieve better customer

satisfaction. Better reporting and

QA. Higher rate of FCR.

Complete integration with

Verint Blue Pumpkin with

Scheduling. Incorporation of

Speech Analytics to aid in

FCR

9

Quality Team

Better understanding of

customer calls. Higher training

quality. Results are higher

customer satisfaction and

retention

Implementation in a global

Quality Management

features including Score

carding, Audio Capturing and

Screen Capture

6

Reporting Analyst

Reduction in time spent in

formulating reports. Reports are

more accurate and concise.

Automated dashboards from

agent level to executive level

provide "finger on the pulse"

monitoring

Full Suite of Reporting with

integrated links to the QM

modules for Quality scoring

and historical reporting.

6

Voice of the Customer Grid

How To Map End Result Back

End Customer Experience

Justifying the Investment At Start Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative

Of Project 2008 Forecast Jan-12 Jan-13 Jan-14 Jan-15

Revenue Inflows $0 $0 $0 $0 $0 $0 $0

Adj Revenue to CF from Accounting basis 0 0 0 0 0 0 0

Total Inflows $0 $0 $0 $0 $0 $0 $0

Outflows

Total Expenses P&L Above (525,000) 306,177 2,630,324 2,630,324 4,550,324 4,550,324 14,142,472

Add: Depreciation 0 1,920,000 1,920,000 1,920,000 0 0 5,760,000

Adj OT deferred cost to CF from Accounting basis 0 0 0 0 0 0 0

Deduct: Capital purchases (4,000,000) (1,760,000) 0 0 0 0 (5,760,000)

Cashflow before Tax (4,525,000) 466,177 4,550,324 4,550,324 4,550,324 4,550,324 14,142,472

Tax payments (301,384) (1,109,349) (1,267,979) (1,379,020) (1,456,749) (5,514,481)

Total Outflows ($4,525,000) $164,793 $3,440,975 $3,282,345 $3,171,304 $3,093,575 $8,627,991

Net Operating Cash Flow ($4,525,000) $164,793 $3,440,975 $3,282,345 $3,171,304 $3,093,575 $8,627,991

Is this an acquisition where a terminal value will apply?

If YES, enter revenue multiple factor for estimating terminal value: 1.20

Estimated Minimum Terminal Value:

n/a

n/a

Minimum Terminal Value A or B above n/a

Intangible Capital Residual Value based on NBV at end of year 5 $0

Tangible Capital Residual Value based on NBV at end of year 5 $0

39%

4,879,998$

n/a

-$

4,879,998$

NPV of Capital at end of project:

Total Net Present Value (NPV)

NPV of Terminal Value at end of project:

Internal Rate of Return (IRR)

Operating Cash Flow Statement For Project

A) Residual Value Based on Free Cash Flow at end of year

B) Residual Value Based on Revenue Multiple at end of year

NPV of Operating Cash Flows from project:

Understanding the Investment

2008

Forecast Jan-12 Jan-13 Jan-14 Jan-15 Total

$0 $0 $0 $0 $0 -

6,138,677 7,319,324 7,319,324 7,319,324 7,319,324 35,415,972

(4,437,500) (2,769,000) (2,769,000) (2,769,000) (2,769,000) (15,513,500)

(1,920,000) (1,920,000) (1,920,000) 0 0 (5,760,000)

(218,823) 2,630,324 2,630,324 4,550,324 4,550,324 14,142,472

($301,384) ($1,109,349) ($1,267,979) ($1,379,020) ($1,456,749) (5,514,481)

(218,823) 2,630,324 2,630,324 4,550,324 4,550,324 14,142,472

0 0 0 0 0 -

1,920,000 1,920,000 1,920,000 0 0 5,760,000

0 0 0 0 0 -

(5,760,000) 0 0 0 0 (5,760,000)

-

(301,384) (1,109,349) (1,267,979) (1,379,020) (1,456,749) (5,514,481)

(4,360,207) 3,440,975 3,282,345 3,171,304 3,093,575 8,627,991

12

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Total

$0 $0 $0 $0 $0 $0

6,138,677 7,319,324 7,319,324 7,319,324 7,319,324 35,415,972

(4,437,500) (2,769,000) (2,769,000) (2,769,000) (2,769,000) (15,513,500)

(1,920,000) (1,920,000) (1,920,000) - - (5,760,000)

(218,823) 2,630,324 2,630,324 4,550,324 4,550,324 14,142,472

(301,384) (1,109,349) (1,267,979) (1,379,020) (1,456,749) (5,514,481)

(218,823) 2,630,324 2,630,324 4,550,324 4,550,324 14,142,472

0 0 0 0 0 -

1,920,000 1,920,000 1,920,000 0 0 5,760,000

0 0 0 0 0 -

(5,760,000) 0 0 0 0 (5,760,000)

0 0 0 0 0 -

(301,384) (1,109,349) (1,267,979) (1,379,020) (1,456,749) (5,514,481)

(4,360,207) 3,440,975 3,282,345 3,171,304 3,093,575 8,627,991

4,879,998

39.4%

Call Center Re-design

Total Net Present Value (NPV) @ 12.5%

Internal Rate of Return (IRR)

Fiscal Year Starting at Project Initiation

Expense Reduction

Operating Expense

Depreciation/Amortization

Operating Profit (Loss)

Calendar Year Starting

Deduct Cap Purchases

Adjust for non-cash prepaid

Taxes Payments

Net Cash Flow

P&L Impact

Revenue

Technology Services Group

Revenue

Adj Rev-Cashflow from Accounting basis

Adj OT Costs-Cashflow from Accounting basis

Tax @ 36%


Add Depreciation

Cash flow

Call Center Re-design

Taxes Payments

Net Cash Flow


Add depreciation and Amort

Deduct Cap Purchases

Adjust for non-cash prepaid

Adj Rev-Cashflow from Accounting basis

Adj OT Costs-Cashflow from Accounting basis

(Linked to Financial Worksheet)

IMPACT SUMMARY

Expense Reduction

Operating Expense

P&L Impact

Cash flow

Depreciation/Amortization


Tax @ 36%


We started this project thinking that we knew everything….

We discovered early on that we didn’t know anything!

Because we acknowledged this… we succeeded, where

failure was imminent…

• Understand The Business from the CEO down

• Understand the End Customer Fully

• Understand The Contact Center Agents

• Understand the Contact Center Supervisors

• Understand the Finances

What Did We Learn?


Implement For Success – Get The Most From Technology

Agent Desktop – The Finesse Factor

IVR – The Intelligence

Video – Bring the Contact Center Alive


Start thinking about creativity without a thick

client. Web 2.0 coupled with Google Gadgets and

CTI Integration puts ultimate power into the

hands of your agents…

• Complete Control and Live Stats

• Fully Customizable In House

• Complete 3rd Party Gadget Repository

Agent Desktop - Finesse







• Deploy Internal Training Modules

• Auto Configure Priority Queuing

• Streamlining Process by Pushing to Agents

• Be In Control







• Integrate Cisco CIM

• Full Email and Chat

• Universal Queuing

• Integrated KB, Articles, History and WebEx


The Intelligence between you and your customer. IVR – Critical To Success

Long Distance (800) Carrier

CUCM Cluster

Generic PG

Rogger

AW/HDS/D

DS

CUIC

SIP Dialer

MR PG

CTI OS

CUCM PIM

VRU PIM

CTI Server

Proxy GW

CUSP

Combo GW

Conference

DSPs

T1s

VXML CVP Call Server

VXML Server

Media Server

Router

Logger

Campgn Mgr

SIP

SCCP

(DSPs)

SIP

SIP

HTTP

(VXML)

SIP (dialer)

JTAPI

SCCP or SIP

GED.125

TDM

Agent Supervisor

HTTP

HTTP

Internet

AC

E

CVP

Reporting

Server

JDBC

JDBC

CVP Ops

Console

OAM&P

CCMP

Active Directory

App Server

Database


The Intelligence between you and your customer. IVR – Critical To Success

Long Distance (800) Carrier

CUCM Cluster

Proxy GW

CUSP

Agent

1

2

3

4 5 6

7

8

9

10

1. Inbound call arrives at TDM gateway

4

Combo GW

Conference

DSPs

T1s

VXML

CVP Call Server

VXML Server

Media Server

Generic PG

SIP Dialer

MR PG

CTI OS

CUCM PIM

VRU PIM

CTI Server Rogger Router

Logger

Campgn Mgr

2. TDM gateway sends SIP INVITE to CUSP

3. CUSP proxies INVITE to CVP

4. CVP requests route instruction

5. CVP sends new SIP INVITE to CUSP

6. CUSP proxies INVITE to VXML Browser

7. Browser fetches VXML page using HTTP

8. When agent becomes available, CVP drops call

to browser (legs 5 and 6), and sends re-INVITE

to CUSP

9. CUSP proxies INVITE to CUCM

10. CUCM delivers call to agent

SQL

Customer Datar

WWW 3rd party web

services

7B

7A

7A. CVP engages SQL servers for caller data

7B. CVP engages Web Services for caller data


IVR – Video


IVR – Video

Expert Location

Customer

Agent at Contact Center

Database

Lookup

Performed

4

Expert

Accepts Offer

YES

Call Passed to

Expert

6

Customer

Identifies

Need

Customer

Needs Expert

1

Customer

Satisfaction

Survey

8

Call Placed to

Queue

3

Product

Expert Is

Requested

2

Data Center

Starts

Collaborative

Session

7

Is Expert

Available?

5

Customer

Sent to

Contact

Center

NO

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toronto, canada may 30, 2013 contact center · reduced call center costs. project cost comparisons....

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