The Services Research Company

The Role of Contact Center in Omnichannel Strategy

An HfS Webcast, 25th August 2016

Host:

PhilFersht,CEO&ChiefAnalyst,HfSResearchphil.fersht@hfsresearch.com@pfersht#hfsresearchWeb:www.hfsresearch.com |Blog:www.horsesforsources.com

Overview:• 20years’businessexperienceintheglobalITandbusinessprocess

outsourcingandsharedservicesindustry• Coinedthe“As-a-ServiceEconomy”in2014• Industryanalyst,author,speaker,strategistandblogger• Advisedandcogitatedon100’sofglobalITservices,BPOandshared

servicesengagements• Meddleswiththelargestglobalnetworkofenterpriseservicesand

operationsprofessionals

CareerExperience:• PracticeLead,ITServices&BPOResearch,Gartner,Inc• GlobalBPOMarketplaceLeader,DeloitteConsulting• ConsultingPracticeLead,IDCAsia/Pacific• ITMarketsPracticeLead,IDCEurope

Education:• BSwithHonorsinEuropeanBusiness&Technology,CoventryUniversity,

UnitedKingdom• DiplômeUniversitairedeTechnologieinBusiness&Technologyfromthe

UniversityofGrenoble,France

phil.fersht@hfsresearch.com

Phil Fersht, Founder, CEO and Analyst, HfS Research

©2016HfSResearch Proprietary│Page3

Our Webcast Panelists Today…

PeterRyanVPCustomerandMarketSolutionsConduitGlobal

AmitShankardassExecutiveVicePresident,MarketingTeleperformance

Mandeep SinghKwatraCXConsulting&GlobalSolutions &CapabilitiesLeaderHGS

MelissaO’BrienResearchDirector,HfSResearch

Unbridled Opinion… Simply Calling It How It Is

www.horsesforsources.com

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…With a More Serious Side Too! www.hfsresearch.com

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The HfS Service Buyers Summits…next up New York

www.hfsevents.com/new-york-2016

The As-a-Service EconomyAnd The “Intelligent OneOffice”

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Senior Management Driving Customer First ThinkingPleaseindicatewhetheryouagreeordisagreewiththefollowingstatementsaboutYOURIntelligentOperationsmind-settoday

Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371

31%

34%

38%

42%

47%

48%

53%

55%

53%

50%

46%

45%

16%

11%

9%

9%

7%

7%

Sourcingofexternalas-a-ServicemodelswillbedeliveredbytheexistinglandscapeoftraditionalIT

Serviceproviders

Sourcingofexternalas-a-Servicemodelswilllargelybedeliveredbyaconstellationofnewbreedproviders

Sourcingofexternalas-a-Servicemodelswillbedrivenbyanoperations-first,or“processfirst”strategy

MovingtoIntelligentOperationswillallowourprocessinteractioncoststodecreasedramatically

MovingtoIntelligentOperationswillallowustobettersegmentandorganizeworkandworkprocesses

Sourcingofexternalas-a-Servicemodelswillbedrivenbya“customerfirst”strategy

Agree Neutral Disagree

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The “Intelligent OneOffice” will emerge from Digital + Automation

TheDigitally-DrivenFront

OfficeMobile,Social/Interactive,Real-timeactionabledata,

DesignThinking

DigitalUnderbellyIntelligentAutomationofmanualprocessesDigitizationofdocumentsIoT

IntelligentDigital SupportFunctionFrontoffice-alignedIT,Finance,HR,Procurement,SupplyChain

IntelligentDigitalProcessesPredictive&OperationalAnalytics,Cognitive.

TheCustomer-firstDigitalOrganization

TheEnablingIntelligentOneOffice

The Nervous System, incepting & Processing

all Inputs

The Neural System

The Circular System

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The Service Providers will bifurcate into two groupings

BackOfficeOutsourcersEfficiency,Automation,LaborArbitrageandScalability

OneOfficeEnablersDataOrchestrationandHumanCollaboration

Our Webcast Panelists Today…

PeterRyanVPCustomerandMarketSolutionsConduitGlobal

AmitShankardassExecutiveVicePresident,MarketingTeleperformance

Mandeep SinghKwatraCXConsulting&GlobalSolutions &CapabilitiesLeaderHGS

MelissaO’BrienResearchDirector,HfSResearch

What role does the contact center play in an omnichannel strategy?

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Customer Facing Functions are the Most Ambitious Targets for Intelligent OperationsWhichofyourbusinessfunctionsarethemostmatureintermsofintelligentoperationsnow?Wherewouldyoulikethemtobein3years?(Scale1-5,just4&5)

Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371

19%

19%

19%

23%

25%

25%

25%

26%

41%

44%

45%

50%

50%

54%

53%

50%

FinanceandAccounting

HumanResources

Procurement

SupplyChainandLogistics

ITapplicationmaintenance&development

ITandNetworkinfrastructuresupport

CustomerService

Sales/Marketing/CRM

Targetfor3years MaturityNow

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The Omnichannel Shift is Underway

Multi/Cross-Channel

• Multiplechannelsavailableforcustomerinteraction

• Channelpairingwithcontextpreservedbetweenchannels

• Interactionscanpivotbetweenchannels

• Greatercustomerconvenienceandpersonalization

Omnichannel

• Abilitytosupportallpotentialchannelsforcustomerinteractionandagilitytoaddchannelsasneeded

• Customercanusevariouschannelssimultaneouslywithcontextintact

• Developsintelligenceaboutcustomerpreferencesandusespreferredcontactmethods

• Greatercustomerconvenienceandpersonalization,includingproactiveengagement

• Understandscustomer’sintent

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What is Digitally- Enabled Contact Center?

Digitallyenabledcontactcenterisnotjustaboutsupportingthedigitalchannelsthemselves,it’sthedesignandstrategyabouthowdigitalimpactsthewayenterpriseshandlecustomerserviceina“customerfirst”organization.

Trademarksofadigitallyenabledcontactcenter:• Useofdigitalchannels• Useofautomation• Designofhowdigitalchannelsfitintocustomerjourney• Talentthatcanhandlecommunicationondigitalchannelsaswellastakecontextual

datafrommultiplesources• Analyticsforchannelmix/usageandselfservice• Ultimately,adigitallyenabledcontactcenterisonethatsupportsIntelligentOneOffice

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Contact Center Operations Needs to Mature in Order to Fully Support Omnichannel Strategies

IDEAL NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALLPERVASIVE

WriteOffLegacy 2016

DesignThinking 2016

Brokers ofCapability 2016

CollaborativeEngagement 2016

IntelligentAutomation 2016

Accessible&ActionableData 2016

HolisticSecurity 2016

Plug andPlayDigitalBusinessServices

2016

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86%

63%

50%

13%

13%

13%

88%

69%

88%

69%

50%

69%

84%

83%

74%

53%

47%

34%

88%

91%

86%

76%

67%

49%

BPOisaforceforinnovationandchangewithinbusiness

MyBPOroleisfundamentaltobusinessperformance

IamexcitedaboutthefutureofBPOasanindustry

BPOtodayisanexcitingcareerchoice

TherehasbeenabigrecentshiftintherecognitionofacareerinBPO

BPOhasadefinedcareertrackandacertainfuture

The Talent Challenge: Providing a Career Path for Contact Center BPO

Towhatextentdoyouagree/disagreewiththefollowing?(byyearsexperience)

<2Years 2to5Years 5to10Years >10Years

ExcitementaboutBPOasaforceforchange

Notfullytranslatingintosustainabilityasacareerfor

thosenewtoit

Source:TheBPOProfessionin2015,HfSResearch,April2015EnterpriseBuyers=121;Advisors/Consultants=158;ServiceProviderExecutives=229

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Top skills in 2020 shift to critical thinking, creativity and Emotional Intelligence…

What needs to happen to enable a successful omnichannel strategy?

What’s working and what’s not?

How are BPOs changing to enable omnichannel

strategies?

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Source: “Making that leap from effective to strategic BPO/BPM" Study, HfS Research 2016Sample: 343 Industry Stakeholders (Enterprise Buyers = 115, Advisors = 55, Service Providers = 173)

Changes to Importance of Service Provider Capabilities

25%

27%

28%

71%

86%

95%

89%

91%

89%

10%

30%

31%

71%

83%

90%

72%

90%

83%

14%

16%

17%

34%

39%

43%

44%

47%

48%

Deliverycenterlocations

On-siteaccountmanagers

Sourcing“fresher”talent

Continuousimprovementprograms

Consultingskillsforprocessredesign/reimagining

Datascientistsandanalyticsskills

Cognitivecomputingplatforms

Processautomationtools

Designthinkingcapability(e.g.,methodologies,…

Whichcapabilitiesforserviceproviderswillbemoreimportanttomuchlessimportantin2018?(Moreimportantormuchmoreimportant)

Buyers Advisors ServiceProviders

How does omnichannel change the metrics and relationship within BPO

engagements?

What’s next to move the omnichannel from a conversation into a

reality?

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Source: “Making that leap from effective to strategic BPO/BPM" Study, HfS Research 2016Sample: 343 Industry Stakeholders (Enterprise Buyers = 115, Advisors = 55, Service Providers = 173)

What would you change about the BPO industry if you had one wish?

4%

10%

14%

22%

5%

18%

10%

19%

13%

3%

13%

20%

10%

10%

20%

10%

3%

6%

8%

10%

11%

14%

24%

25%

Other(pleasespecify)

Nomorevisaissues

Eliminateratecards

LessPowerPoint

Badqualityteleconferencelines

Lesshypearoundautomation

Clients/servicebuyerstellingtheirstories

Morewomeninleadershiproles

Ifyoucouldchangeonethingaboutthisindustrywhatwoulditbe?Buyers Advisors ServiceProviders

Questions?

Appendix

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