Which Contact Center Technologies For Customer Service Deliver The Most Business Value?

Kate Leggett

We know that the contact center solution ecosystem that customer service organizations use is made up lots of complex technologies, as highlighted in our  latest TechRadar™report. So how do you know what technologies are the right ones to invest in — the ones that will deliver real business value?

To figure this out, Forrester partnered with CustomerThink to survey customer service organizations to understand the adoption rate of 18 contact center technologies. We also looked at the business value that these technologies deliver as defined by three questions: 1) How critical is each to business success? 2) What is the technology’s market reputation for value? and 3) How difficult is it to implement and use? Here are our highlights, and you can find actual statistics in our report:

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2012: The End of The World Or The Year Of Banking Platform Mergers And Acquisitions?

Jost Hoppermann

Some people say that the old Maya calendar predicts that the world will end in the year 2012. Will this happen? Most likely no. Without judging anybody’s beliefs in this ancient calendar: Some experts say that the Maya calendar is like a five-digit odometer in your car: When it reaches 99,999 kilometers or miles, it will restart at 0. However, 2012 is beginning to show the ingredients of the long-expected stronger consolidation in the banking platform space.

While it is not yet clear whether Misys and Temenos will merge to move out of the gap between gorillas and antelopes, French software and services company Sopra announced “a project to acquire a majority stake in the Belgian company Callataÿ & Wouters (C&W).” For obvious reasons, it is too early to provide any detailed comment on this announced merger. However, I see two initial areas of interest:

  • Sopra’s ability to integrate the new capabilities technology-wise and organizationally. Sopra has acquired firms in the past. However, its acquisition speed has accelerated enormously: It acquired Delta-Informatique in October 2011 and proposed the acquisition of Tieto Corporation’s UK financial services product business and the UK subsidiary of Business & Decision on February 13 — just four days ago.
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To Be (To Cloud) Or Not To Be (Not To Cloud) BI

Boris Evelson

My colleagues and I have just completed yet another engagement with a large client — one of dozens recently — who was facing a to be or not to be decision: whether to move its BI platform and applications to the cloud. It’s a very typical question that our clients are asking these days, mainly for the following two reasons:

  1. In many cases, their current on-premises BI solutions are too inflexible to support the business now, much less in the future.
  2. The relative success of cloud-based CRM (SFDC and others) solutions may indicate that cloud offers a better alternative.

These clients put these two statements together and make the reasonable assumption that cloud BI will solve many of the current BI challenges that cloud-based CRM solved. Reasonable? Yes. Correct? Not so fast — the only correct answer is “It depends.”

Let’s take a couple of steps back. First, let’s define applications or packaged solutions vs. platforms (because BI requires both).

Packaged solutions

  • Subscribe to a solution-like CRM
  • Provide standard business functions to all customers (which makes it different from “hosting;” see below)
  • Difficult to tailor to specific needs
  • Usually are used synonymously (but incorrectly, see below) with software-as-a-service (SaaS)

 Platforms for building solutions

  • Subscribe to tools and resources to build solutions like CRM
  • Provide standard technical functions to developers
  • Contain limited, if any, business application functionality
  • Usually labeled either as platform-as-a-service (PaaS) or infrastructure-as-a-service (IaaS).
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Three CXM Trends For 2012

Stephen Powers

As I recently celebrated my fifth anniversary as a Forrester analyst, I reflected on how my coverage area has changed. For the past five years I've covered the web content management (WCM) market. This has been a healthy market, and I still get plenty of interest from my clients on this topic.

But the context of that interest has changed markedly, particularly over the past year. When clients used to ask about WCM, they wanted to know about WCM and WCM only. But these days, they ask about WCM in the context of other technologies supporting customer experience, such as commerce, CRM, and analytics. Our clients have reached a logical conclusion: WCM isn't the end-all-be-all for digital experiences but instead is one piece of the customer experience management (CXM) puzzle.

And the market will continue to evolve in 2012. In particular:

  • Watch for an avalanche of acquisitions, both big and small. Though larger vendors have multiple pieces of the CXM puzzle, no one has yet put together a complete portfolio. Vendors are still missing some critical pieces, such as rich media management (IBM), commerce (Adobe), and testing and optimization (Oracle, SDL). Watch for the CXM vendors to compete to fill these gaps. High-reaching best-of-breed WCMs such as Sitecore may not remain independent for long.
  • Contextualization will become the byword. Forget complicated business rules and template schemes. Technology to contextually adapt customer experiences based on user segment, browsing behavior, locale, and device will be high priority. Vendors will make strides so that customers can increasingly take an "automate + optimize" approach: automating contextualization for most experiences and manually optimizing it for a few high-profile experiences, such as home pages.
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Two Truths And A Lie: Software Development In 2020

Kyle McNabb

When getting introduced to a new subject or new people, we sometimes play a game called "two truths and a lie." The basics of the game are simple: Anyone introducing a subject - or themselves - states two truths and one lie. The audience then has to identify what the lie is. 

Below, you will find three bullets related to our future of software development research. Two are truths as identified by our research, one is a lie: 

  • Software's fueling today's disruption, becoming embedded in everything to make technology useful, usable, and desirable.  
  • Software development expertise will increasingly be centered on Java, .NET, and proprietary development and application platforms. 
  • The U.S. Bureau of Labor Statistics projects software-development-related roles and jobs to increase at double the national average through 2020. 
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Oracle Moves Solidly Into SaaS With Taleo Acquisition

Paul Hamerman

Oracle Corporation announced its purchase of Taleo for $1.9 billion on Feb. 9, 2012, signaling a major shift in its stance on software-as-a-service (SaaS) and talent management applications. The transaction is expected to close midyear 2012, subject to regulatory and stockholder approvals.

Oracle has long held a “we can build it better” position on talent management, learning, and recruitment applications but struggled to compete with best-of-breed talent management vendors like SuccessFactors (recently acquired by rival SAP), Taleo, Kenexa, Cornerstone, and SumTotal Systems. Oracle has been reticent to offer these (or any other) applications via SaaS, preferring a licensed/on-premises business model that provides early revenue recognition versus the deferred revenue model of SaaS.

In fact, Oracle CEO Larry Ellison has been outspoken in his anti-SaaS stance in recent years, changing his posture somewhat with the Oracle Public Cloud announcement at last October’s Oracle OpenWorld conference. Meanwhile, the HR apps market shifted overwhelmingly to the SaaS (subscription-based) deployment model, which has become virtually ubiquitous in recruitment, learning, and talent management and is also growing in core HRMS via ADP, Ultimate Software, and Workday.

By acquiring Taleo, Oracle puts itself back in the game for SaaS recruiting and talent management. Taleo is a market leader in recruitment automation and has a competitive portfolio of products across performance, compensation, and learning management. The $1.9 billion deal price is more than six times Taleo’s 2011 annual revenues of $309 million, a high premium but substantially less than the $3.4 billion and 11-times revenues that SAP recently paid for SuccessFactors.

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The Merger Of Misys And Temenos — Moving Out Of The Gap Between Gorillas And Antelopes

Jost Hoppermann

Less than a week ago, initial information became public that Misys and Temenos may intend to merge. On February 7, 2012, a press release stated that “Temenos and Misys today confirm that they have reached agreement in principle on certain key terms and are in continuing discussions regarding a possible all share merger of the two groups.“ Now Misys and Temenos have about one month to finalize their merger — or abandon it. It is obvious that this merger has the ingredients to become one of the most significant mergers in the banking industry in the past few years. With the probability of the merger now sufficiently high, here is my initial take.

There are two obvious reasons for this potential endeavor of Temenos and Misys (let’s call the combined company MIsys-TemeNOS [“MiNos”] for the time being to avoid terms such as “new company” or “NewCo”):

  • A broader and deeper product portfolio for banking and capital markets. While Temenos has been a Global Power Seller in Forrester’s global banking platform deals survey for years, Temenos has so far struggled to win a large number of major banks as customers for its banking platform. The combined portfolio could make “MiNos” more attractive for larger as well as smaller potential customers — with an even broader set of point solutions as well as integrated apps offerings such as banking platforms.
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Cloud Adoption In Asia Pacific: Strong Signs Of Progress, But Not Everywhere

Michael Barnes

As of late 2011, more than half the organizations we surveyed in Asia Pacific excluding Japan (APEJ) are either currently using or actively planning cloud initiatives — 52% in fact. This number has nearly tripled since 2009.

But adoption rates alone don’t tell the whole story. Vendor strategists should also be closely tracking how organizations evolve from ad hoc, disjointed cloud projects to well-defined, effectively managed cloud procurement. Our recent survey results indicate a surprising degree of maturity across the region — along with some clear areas for growth.

  

Highlights: 

  • Centralized IT procurement of cloud services varies widely across the region. Australia (82%) and India (83%) currently lead in driving centralized procurement and management of cloud services through IT. Both markets are well above the regional average of 74%. This is no surprise for Australia, which is the most mature market for cloud computing in the region. But the strong results for India are surprising, and indicate the strong potential for a sharp increase in demand for cloud services over the next six to 12 months as early projects begin delivering positive returns. Only 66% of respondents in China are currently centralizing cloud procurement and management — not unexpected given the relative lag in cloud adoption in China relative to other APEJ markets.
  • Organizations in China are least likely to have a formal cloud strategy in place. Fifty-six percent of respondents in China currently see unsanctioned buying by the business outside of IT. This is the highest rate in APEJ by far, where the average is 35% and there are lows of 23% in Australia and 25% in Singapore.
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Poor Data Quality: An Often Overlooked Cause Of Poor Customer Satisfaction Scores

Kate Leggett

Customer service managers don’t often realize that data quality projects move the needle on customer satisfaction. In a recent Forrester survey of members of the Association of Business Process Management Professionals (ABPMP), of the 45% who reported that they are working on improving CRM processes, only 38% have evaluated the impact that poor-quality data has on the effectiveness of these processes. And of the 37% of respondents working on customer experience for external-facing processes, only 30% proactively monitor data quality impacts. That’s no good; lack of attention to data quality leads to a set of problems:

  • Garbage in/garbage out erodes customer satisfaction. Agents need the right data about their customers, purchases, and prior service history at the right point in the service cycle to deliver the right answers. But when their tool sets pull data from low-quality data sources, agents don’t have the right information to answer their customers. An international bank, for example, could not meet its customer satisfaction goals because agents in its 23 contact centers all followed different operational processes, using up to 18 different apps — many of which contained duplicate data — to serve a single customer.
  • Lack of trust in data negatively affects agent productivity. Agents start to question the validity of the underlying data when data inconsistencies are left unchecked. This means that agents often ask a customer to validate product, service, and customer data during an interaction — increasing handle times and eroding trust.
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IBM Lotusphere 2012 – What's In A Name?

Michael Barnes

So I made the trek from Singapore to Orlando for Lotusphere the week of January 15th and it proved well worth the time and effort. It was actually one of the best events of its kind I’ve attended in years — and I’ve attended loads. IBM expanded the focus well beyond the “legacy” Lotus brand. In fact, this was a social business event from start to finish, with IBM linking its much broader social computing portfolio to business process improvement and value creation.

The focus and scope has clearly grown beyond the current event branding. But putting event naming issues aside for the moment, below are some key takeaways:

  • Evolving into a social business applies to all organizations — any process that relies on people will fundamentally change. IBM made a solid case that business transformation is not only possible but mandatory. A social business excels at discovering and sharing new ideas — fundamentally changing how people work and therefore how companies operate. Companies not embracing this change will get left behind.
  • IBM’s vision for social business — business process disruption is inevitable. Focusing heavily on a process-centric view, IBM downplayed tools and technology. Per IBM, social business is the intersection of social technologies and front-office business processes — as significant to top-line revenue growth over the next decade as SOA has been to back-office business processes and bottom-line cost savings over the last decade.
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