Choosing The Right Metrics For Your Customer Service Operations

Kate Leggett

Measuring the success of your customer service by using a single metric is impossible. It’s like flying a plane by just looking at your speed without taking the altitude into account. You need to measure a set of competing metrics to make up a Balanced Scorecard that includes the cost of doing business and customer satisfaction. Service operations that have sales responsibilities should also track revenue generated. And in industries with strict policy requirements, like healthcare, insurance, and financial services, compliance with regulations is yet another set of metrics to track.

Choosing the right set of metrics to measure also depends on the stakeholders that use this information. For example:

  • Service managers need operational data that tracks activities, while executives want strategic KPIs that track outcomes of customer service programs.
  • Service managers need granular, real-time data on their operations, while executives need to see only a small number of KPIs on a periodic basis.  

I always think of it as a two-step process to pinpoint the right metrics for all your stakeholders:

  1. Understand the strategic objectives of your company; choose the high-level KPIs for your contact center that support your company’s objectives. These are the metrics you will report to your executives.
  2. Choose the right operational activity metrics for your contact center that map to these KPIs and which the customer service manager uses on a daily basis to manage operations. Here’s an example of this mapping:
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The Multichannel Organization Revisited

Jost Hoppermann

In 2006, Forrester found that organizational structure, internal enterprise goal systems, and most urgent business requirements were key obstacles on many firms’ journey toward broad multichannel solutions with rich cross-channel capabilities. At that time, a few advanced firms tried to establish a multichannel organization, an organizational layer to coordinate multichannel requirements and solutions between the different business groups and the IT organization. Has this changed over the past five years?

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It's The Dawning Of The Age Of BI DBMS

Boris Evelson

Over the years we’ve learned how to address the key business intelligence (BI) challenges of the past 20 years, such as stability, robustness, and rich functionality. Agility and flexibility challenges now represent BI’s next big opportunity. BI pros now realize that earlier-generation BI technologies and architecture, while still useful for more stable BI applications, fall short in the ever-faster race of changing business requirements. Forrester recommends embracing Agile BI methodology, best practices, and technologies (which we’ve covered in previous research)  to tackle agility and flexibility opportunities. Alternative database management system (DBMS) engines architected specifically for Agile BI will emerge as one of the compelling Agile BI technologies BI pros should closely evaluate and consider for specific use cases.

Why? Because fitting BI into a row-oriented RDBMS is often like putting a square peg into a round hole. In order to tune such a RDBMS for BI usage, specifically data warehousing, BI pros usually:

  • Denormalize data models to optimize reporting and analysis.
  • Build indexes to optimize queries.
  • Build aggregate tables to optimize summary queries.
  • Build OLAP cubes to further optimize analytic queries.
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Crowdsourcing In Vermont Engages - And Empowers - Citizens

Jennifer Belissent, Ph.D.

[Co-authored with Charles Green]

In my last blog I asked the question, “What’s it take to be a smart city?” One of the critical elements lies in smart governance. Smart governance takes leadership, coordination, and collaboration. (Take a look at my recent report, "Smart City Leaders Need Better Governance Tools.") Part of this leadership is finding innovative and cost-effective solutions to intractable problems – and that often lies in engaging constituents for input on the problems and feedback on the solutions.  As Charles and I were working on another project, we came across a great example of a US state looking outside the box to solve a real and frustrating problem faced by its citizens.

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Cisco Makes The Charts – Now No. 3 In Blades

Richard Fichera

When Cisco began shipping UCS slightly over two years ago, competitor reaction ranged the gamut from concerned to gleefully dismissive of their chances at success in the server market. The reasons given for their guaranteed lack of success were a combination of technical (the product won’t really work), the economics (Cisco can’t live on server margins) to cultural (Cisco doesn’t know servers and can’t succeed in a market where they are not the quasi-monopolistic dominating player). Some ignored them, and some attempted to preemptively introduce products that delivered similar functionality, and in the two years following introduction, competitive reaction was very similar – yes they are selling, but we don’t think they are a significant threat.

Any lingering doubt about whether Cisco can become a credible supplier has been laid to rest with Cisco’s recent quarterly financial disclosures and IDC’s revelation that Cisco is now the No. 3 worldwide blade vendor, with slightly over 10% of worldwide (and close to 20% in North America) blade server shipments. In their quarterly call, Cisco revealed Q1 revenues of $171 million, for a $684 million revenue run rate, and claimed a booking run rate of $900 million annually. In addition, they placed their total customer count at 5,400. While actual customer count is hard to verify, Cisco has been reporting a steady and impressive growth in customers since initial shipment, and Forrester’s anecdotal data confirms both the significant interest and installed UCS systems among Forrester’s clients.

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Follow The Conversation From Forrester's IT Forum 2011

Alex Cullen

Today we’re kicking off Forrester's IT Forum 2011 at The Palazzo in Las Vegas. Prepare for three exciting days of keynote presentations and track sessions focused on business and technology alignment. Use the Twitter widget below to follow the Forum conversation by tracking our event hashtag #ITF11 on Twitter. Attendees are encouraged to tweet throughout the Forum and to tweet any questions for our keynote presenters to #ITF11.

Follow The Conversation From Forrester's IT Forum 2011

Sharyn Leaver

Today we’re kicking off Forrester's IT Forum 2011 at The Palazzo in Las Vegas. Prepare for three exciting days of keynote presentations and track sessions focused on business and technology alignment. Use the Twitter widget below to follow the Forum conversation by tracking our event hashtag #ITF11 on Twitter. Attendees are encouraged to tweet throughout the Forum and to tweet any questions for our keynote presenters to #ITF11.

Is Moore's Law Still Valid?

Brian  Hopkins

Has anybody noticed that processor speed has stopped doubling every 18 months? This occurred to me the other day, so I took some time to figure out why and draw some conclusions about Moore's law and the impacts of continued advances in chip technology. Here what I've come up with: 1) Moore's law is still valid, but the way processor power is measured has changed, 2) disk-based memory is going the way of the cassette tape, and 3) applications will move into the cloud.

We have pushed semiconductor technology to its physical limits, including our ability to cool chips and the speed of light. As a result, chip manufacturers have turned to multicore processing technology rather than pure chip and bus speed. Now the power of a microprocessor is judged by the number of cores it contains — and the number of cores on a single chip will continue to increase for the near future.

So what? Extra cores per chip means more parallel processing to speed through operations — so parallel is the future.

Two other trends are also important to understand my conclusions:

  1. RAM keeps getting more powerful and cheaper.
  2. As the number of cores in a chip goes up, its ability to process data begins to exceed bus technology’s ability to deliver it. Bus speed is governed by Moore’s law.
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PMOs – Think Outside Of The Box. Will Kanban Work For You?

Margo Visitacion

Gaining visibility into the big picture of an IT portfolio feels like one of the unsolvable challenges, and it’s not for lack of trying. Dashboards abound, and PPM tools are becoming more user friendly all the time, but do these tools really provide transparency into what’s really going on? Sometimes I think these tools provide MORE information than what you need, akin to telling you how to build the watch when all you want is the time. After reading Dave West’s “Why Kanban Matters,” I think more and more about how Kanban will provide project management offices with the information they need so that it can feed the portfolio more efficiently.

Example:

At a glance, the PMO knows where everything is in its cycle, what’s in the pipeline, and a brief status of what is important or in the need to know. Depending on the information that bubbles up in the brief status line, the PMO can determine where there may be resource constraints or where demand is driving the next steps . . . and it enables executives to get a visual of how demand is affecting current projects and supports the PMO’s need to communicate status without flooding dashboards with useless information. This can drive valuable conversations based on clear, concise information — it’s hard to miss what on tap and what is being delayed. It’s a process whose time has come.

Have you thought about leveraging Kanban above the project level? I’d love to hear your comments.

Q&A With Michael Ali, VP & CIO, Harman

Sharyn Leaver

Michael Ali, VP & CIO, Harman InternationalI am so looking forward to hearing from our keynoters next week at the Forrester's IT Forum 2011. Poised to be one of the most informative – and entertaining – will be Michael Ali, VP & CIO, Harman International. Michael will discuss how integration, not alignment, is the ultimate goal for CIOs who are determined to get the most out of IT investments for the benefit of their businesses. Rumor has it that he’ll also toss out some zinger lessons learned that will help us all avoid common pitfalls as we move beyond alignment. I asked Michael a few questions to get some insight on his IT organization and his experience with IT transformation. His answers point to both the fundamental shifts that will characterize the empowered BT era and some perennial truths of IT. We hope you can make it to Las Vegas to hear more . . .

 

Sharyn: To move beyond business-IT alignment, Forrester believes organizations must drive innovation. How is the IT organization at Harman doing that?

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