HfS Webinar: Making Cognitive Real - The Transformation of Service Agents

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


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

[email protected]

@pfershtWeb:hfsresearch.comBlog:horsesforsources.com

Phil Fersht, Chief Analyst and CEO, HfS Research



HfS Research Has Been Writing About Intelligent Automation for 5+ Years


Cognitive is all about Service Orchestration

triggerbased

Characteristicofprocess

rulesbaseddynamiclanguage

rulesbasedstandardizedlanguage

Structured

Characteristicofdata/information

UnstructuredwithoutpatternsUnstructuredpatterned

DataCenterAutomation:

RunbookScriptingSchedulingJobcontrolWorkloadautomationProcessorchestration

SOAVirtualizationCloudservices

RPAArtificial

Intelligence

BPMWorkflow

ERP

AutonomicsCognitiveComputing


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


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


“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


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?


FasterserviceresolutionImprovedserviceconsistencyRound-the-clockavailabilityMulti-channeldelivery

SHAREHOLDER VALUE

EMPLOYEEVALUE

CUSTOMERVALUE

CompetitiveadvantageIncreasedscalabilityIncreasedagilityOperationalefficienciesIncreasedcomplianceLong-termROI

MoreinterestingworkLearnednewskillsIncreasedemployeesatisfaction


1. TreatCVAasalearningproject…

Business Projects

“Learning” Projects

R&D/Innovation Projects

OwnedbycentralinnovationgroupGeneralgoals,nomeasuresControlledinternalexperiments

Co-owned,businessandinnovationgroupCleargoals,nomeasuresLiveexperiments

OwnedbybusinessoperationsClearbusinesscasewithconcretegoals,measuresandexpectedROILivedeploymentsaftertesting


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


Questions?


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.