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The Services Research Company™
Making Cognitive Real - The Transformation Of Service Agents
WebinarincollaborationwithIPsoftMarch23,2017
PhilFersht,CEO&ChiefAnalyst,[email protected]@pfersht #hfsresearch
TomReuner,SVP,[email protected]@tom_reuner #hfsresearch
MelissaO’Brien,ResearchDirector,[email protected]@MelissaJaneOB #hfsresearch
©2017HfS Research Proprietary│Page1
Our Panellists
©2017HfS Research Proprietary│Page2
Overview:• Industry analyst, author, speaker, strategist, entrepreneur and
blogger• 20 years’ in the global IT and business process outsourcing and
shared services industry spanning analyst and consulting roles• Coined the “As-a-Service Economy” in 2014• Coined the “Digital OneOfficeTM” in 2017• Advised and on 100’s of global IT services, BPO and shared
services engagements• Overseas the largest global network of enterprise services and
operations professionals Career Experience:• Founded HfS Research in 2010, overseeing an unprecedented
growth story in the analyst industry • Practice Lead, Global IT Services & BPO Research, Gartner, Inc• Global BPO Marketplace Leader, Deloitte Consulting • Consulting Practice Head, IDC Asia/Pacific• European IT Markets Practice Lead, IDC EuropeEducation:• BSc. Honors in Business & Technology, Coventry University, UK• Diplôme Universitaire de Technologie in Business & Technology,
University of Grenoble, France
@pfershtWeb:hfsresearch.comBlog:horsesforsources.com
Phil Fersht, Chief Analyst and CEO, HfS Research
©2017HfS Research Proprietary│Page3
©2017HfS Research Proprietary│Page4
HfS Research Has Been Writing About Intelligent Automation for 5+ Years
©2017HfS Research Proprietary│Page5
Cognitive is all about Service Orchestration
triggerbased
Characteristicofprocess
rulesbaseddynamiclanguage
rulesbasedstandardizedlanguage
Structured
Characteristicofdata/information
UnstructuredwithoutpatternsUnstructuredpatterned
DataCenterAutomation:
RunbookScriptingSchedulingJobcontrolWorkloadautomationProcessorchestration
SOAVirtualizationCloudservices
RPAArtificial
Intelligence
BPMWorkflow
ERP
AutonomicsCognitiveComputing
©2017HfS Research Proprietary│Page6
VirtualAgent
Desktopautomation
Integration of heterogenousdata and information
Screen scraping Data extractionProcess studio
Conversational services
Self-learningSelf-remediation
Execution
Enhancement of data
Chatbot
OpenSpanJacadaCiceroNICE
Staples “Easy ButtonAmazon “Dash Button
RBS LuvoKik
Slack
SiriCortanaAlexa
Google Assistant
IBM WatsonIPsoft AmeliaLivingActor
VirtualAssistantRPA
Blue PrismUiPath
AutomationAnyw.Jidoka
Voice focusedservices
Front office Back office Internet Mobile phone OneOffice
Conversationalinteraction
Processexecution
Augmentation of human agent Substitutionof human agent
The Evolving Landscape of Service Agents
©2017HfS Research Proprietary│Page7
User Journey from Unstructured Request to Execution
Customerrequests VirtualAgent Standard
transactionsSelf-service
formsDynamicCaseFlowMgt.
• Unstructured forms of requests
• Different media
• Conversation• Knowledge
infusion• Natural
language processing
• Analytics
• Transactions that comply with standard operating procedure
• Knowledge base
• Interactive forms
• Service catalogue
• Governance
• Orchestration of interactions and workflows
Bots
Chat
Knowledgedatabase
NLP
• Extraction of data
• Execution of requests
• Scheduling
abc 123 xyz
123xyz
abc123 abc
xxx123
xyz789789
xyzabc123
xyz789
abc
xxx 123
123abc xxxxyz
xxx 789
123
789
xxx
123123
abc
123
xxx123
789 abc
789abcxxx123789
abc
123xxx
xyz
xyz789
xxx123
abc
abc xxx789
abc
abc123
789
123
xyz
©2017HfS Research Proprietary│Page8
“Cognitiveagentsarethefuture…..it’sasmuchaboutqualityofserviceasitisaboutcost.”
Increase volume of interactions at a lower cost
Ability to securely handle customer requests, flex to demand
Potential to open doors for employees to do higher- value work
Cost
Scalability and Security
Augmenting Talent
The Impact of Cognitive in the Contact Center
Ultimately the goal is to improve the customer experience
Customer Experience
©2017HfS Research Proprietary│Page9
How do Virtual Agents Bring Intelligence to Interactions?
• Understanding natural language and the relationshipbetween concepts.
• Learning skills and new knowledge through naturallanguage
• Creating an answer based on experience
Dr. Mary C. Lacity
Curators’ Distinguished Professor – UMSLVisiting Scholar – MIT CISR
Nicolas Moch
Head of Information, Strategy & Architecture – SEB
Copyright©LacityandWillcocks2017AllRightsReserved 11
Table 1: SEB’s Cognitive Virtual Agent Adoption at a Glance
Customers Live
deployment date
Services Channel Initial Results
Internal Customers
August 2016
Identity Access Management and
Knowledge Management
(IT Service Desk)
Web and mobile app
• Software executed 50% of calls without human intervention, representing 15% of call volumes;
• Services were delivered up to five times faster
• Services were more consistent
External Customers
December 2016
Customer queries Web app Preliminary Results
ExternalcustomeraccesstoIPsoft’sAmeliaCopyright©LacityandWillcocks2017
AllRightsReserved
DidAidahelpyou?
HowlikelyisitthatyouwilluseAidaagain?
Doyouhaveanyothercomments?
Copyright©LacityandWillcocks2017AllRightsReserved 15
FasterserviceresolutionImprovedserviceconsistencyRound-the-clockavailabilityMulti-channeldelivery
SHAREHOLDER VALUE
EMPLOYEEVALUE
CUSTOMERVALUE
CompetitiveadvantageIncreasedscalabilityIncreasedagilityOperationalefficienciesIncreasedcomplianceLong-termROI
MoreinterestingworkLearnednewskillsIncreasedemployeesatisfaction
Copyright©LacityandWillcocks2017AllRightsReserved 16
1. TreatCVAasalearningproject…
Business Projects
“Learning” Projects
R&D/Innovation Projects
OwnedbycentralinnovationgroupGeneralgoals,nomeasuresControlledinternalexperiments
Co-owned,businessandinnovationgroupCleargoals,nomeasuresLiveexperiments
OwnedbybusinessoperationsClearbusinesscasewithconcretegoals,measuresandexpectedROILivedeploymentsaftertesting
Copyright©LacityandWillcocks2017AllRightsReserved 17
1.TreatCVAasalearningproject2.Developcriteriaforfindinghighimpactusecases3.Decideoptimaltimetoescalatecallstohumans4.Designthemachine’strainingprogram5.Sincecognitiveautomationtoolsaretrained(notprogrammed),comparetrainingtohumantrainingtosetexpectations6.GainC-suitesupportwithoutoverselling7.Invitecustomerstotrytheautomation,butkeepotherchannelstocustomersopen8.Envision,communicateanddelivervaluetoemployees9.Assessemployeeperformancebasedonservicequality,notproductivity
Copyright©LacityandWillcocks2017 18
http://www.umsl.edu/~lacitym/LSEOUWP1701.pdf
DigitalOfferingsConnectedwith
DigitalEcosystem
Digital Maturity Curve
Digital DarwinismWhere Do You Wish to Be?
STRA
TEGY
Informed
Catalyst
Leader
FastFollower+Automation
+Adaptability
+Analytic
+Cognitive
Minimal
VeryHigh
MajorityofCompaniesToday
RefocustheBusiness
ReduceOperationsCosts
RETURNSAXIS
DeliveraDifferentiatedEnd-to-EndDigitalCustomerExperienceWithFractional
Costs
CHANGEAXIS
DigitizedSelectedSegmentsofBusinessProcesses
• Prioritizewhichsegment:mostvalue• Addresspeopledynamics• Build2-speedIToperatingmodel• Digitizeprocesses• Connecttoecosystem
RiskCurve
Amelia is your new Digital Employee
Her missionDeliver best-in-class service to your customers, fully automating
human-to-human interactions and process execution
Her five core capabilities1. Services your customers in natural language, answers their
questions or executes a service or sales process
2. Knows how to operate all your IT systems
3. Monitors your client’s sentiment and adapt accordingly
4. Learns best practices directly from your top employees
5. Provides you instant scalability
www.ipsoft.com
©2017HfS Research Proprietary│Page21
Questions?
©2017HfS Research Proprietary│Page22
About HfS ResearchHfS ResearchisTheServicesResearchCompany™—theleadinganalystauthorityandglobalcommunityforbusinessoperationsandITservices.Thefirmhelpsorganizationsvalidateandimprovetheirglobaloperationswithworld-classresearch,benchmarkingandpeernetworking. HfS Researchwasnamed"IndependentAnalystFirmoftheYearfor2016"bytheInstituteofIndustryAnalystRelationswhichvotedon170otherleadinganalysts.HfS ChiefAnalyst,PhilFersht,wasnamedAnalystoftheYearin2016forthethirdtime.
HfS coinedtheterms"TheAs-a-ServiceEconomy"and"OneOffice™",whichdescribeHfS Research'svisionforthefutureofglobaloperationsandtheimpactofcognitiveautomationanddigitaltechnologies.HfS' visioniscenteredoncreatingthedigitalcustomerexperienceandanintelligent,singleofficetoenableandsupportit.HfS’ coremissionisabouthelpingclientsachieveanintegratedsupportoperationthathasthedigitalprowesstoenableitsorganizationtomeetcustomerdemand- asandwhenthatdemandhappens.WithspecificpracticeareasfocusedontheDigitizationofbusinessprocessesandDesignThinking,IntelligentAutomationandOutsourcing,HfS analystsapplyindustryknowledgeinhealthcare,lifesciences,retail,manufacturing,energy,utilities,telecommunicationsandfinancialservicestoformarealviewpointofthefutureofbusinessoperations.
HfS facilitatesathrivinganddynamicglobalcommunitywhichcontributestoitsresearchandstagesseveralOneOffice™Summits eachyear,bringingtogetherseniorservicebuyers,advisors,providersandtechnologysuppliersinanintimateforumtodevelopcollectiverecommendationsfortheindustryandadddepthtothefirm’sresearchpublicationsandanalystofferings.
Nowinitstenthyearofpublication,HfS Research’sacclaimedblogHorsesforSources isthemostwidelyreadandtrusteddestinationforunfetteredcollectiveinsight,researchandopendebateaboutsourcingindustryissuesanddevelopments.
HfS wasnamedAnalystFirmoftheYearfor2016,alongsideGartnerandForrester,byleadinganalystobserverInfluencerRelations.