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2018 - 2019 Workforce Management Product and Market Report

ABSTRACT

© 2018 DMG Consulting LLCwww.dmgconsult.com 2

Please contact Deborah Navarra at deborah.navarra@dmgconsult.com or 516-628-1098 with any questions. To order your copy of the report, visit www.dmgconsult.com.

DMG Consulting’s 11th annual Workforce Management Product and Market Report

presents the most thorough coverage and insightful analysis of this changing technology

sector. The 416-page Report contains detailed and comprehensive vendor, product, trend, price

and market data to help leaders in the contact center, back office and branches select the right

WFM solution for their organization. The Report also provides best practices for a successful

implementation and achieving a rapid ROI on a WFM investment.

© 2018 DMG Consulting LLCwww.dmgconsult.com 3

Workforce management (WFM) is one of the most important and impactful productivity tools in contact centers. It helps keep staff-related costs down in these people-intensive environments by optimizing schedules and the allocation of resources. WFM also helps companies anticipate and match the needs of incoming transactions to the skills and availability of agents. To achieve this goal, contact centers need insights into the nature of the transactions as well as the individuals who initiate the contacts. Current generation WFM solutions use algorithms to predict the future. NewGen WFM solutions will use real-time adaptive capabilities combined with machine learning and artificial intelligence (AI) to improve the accuracy of forecasts and schedules.

The WFM sector has never been healthier; most of the growth is from sales to contact centers, but adoption of WFM solutions is picking up in branches and back offices. The market is experiencing a major technology refresh due to the transition to the cloud and digital transformation. The cloud has enabled small and mid-size contact centers to more easily adopt WFM solutions, and they are rapidly getting on board. The strong momentum in the WFM market is encouraging vendors to make substantial investments in upgrading their platforms and functionality, but changes to the underlying architecture, data models and databases are needed to deliver NewGen real-time adaptive solutions.

Real-time adaptive capabilities will be instrumental in the future of WFM solutions. There is great opportunity to build a new generation of WFM solutions that are more closely tied to the routing engine of the contact center infrastructure solution. In the meantime, adding real-time adaptive capabilities to an existing WFM solution will dramatically improve the benefits, as it allows the solution to adjust to changes as they occur throughout a business day.

Besides the opportunity to transform and revolutionize WFM in contact centers, there is an even bigger opportunity to sell these solutions to back offices and branches. The opportunity is there and waiting for a vendor who delivers a solution built from the ground up, supported by vertically-oriented professional services and packaged offerings.

DMG expects the WFM sector to continue to grow at a strong rate for a mature market. The number of WFM seats is expected to increase by 9% in 2018 and 2019, and by 10% in 2020, 2021 and 2022. However, the rate of growth will be substantially stronger if some of the opportunities mentioned above break open.

The 2018 – 2019 Workforce Management Product and Market Report provides an in-depth analysis of the contact center WFM market, the competitive landscape, product suites, technology and innovation. It analyzes the service, business and management trends that are redefining staffing paradigms, management practices, and how enterprises and their contact centers view and interact with their customers, prospects and employees. This Report provides an analysis of WFM market activity as well as 5-year market projections. It also explores back-office and branch WFM market opportunities and applications.

Seven leading and contending vendors are featured in the Report: Aspect, Calabrio, Genesys, NICE, Teleopti and Verint. Intradiem, who specializes in intraday management and automation solutions, is covered at a higher level. The Report provides details about the vendors and their offerings, so that leaders in contact centers, back offices and branches, and the enterprise can differentiate between the solutions and select the right functionality and partner to meet their organization’s current and future WFM needs

© 2018 DMG Consulting LLCwww.dmgconsult.com 4

Overview of workforce management market segments and vendor-supported activities

Service deployment options for WFM solutions

Functional building blocks of contact center WFM suites, including core, value-added and optional modules

Business, service and management trends and challenges that are driving enterprise investments and influencing vendor innovation

WFM market innovation, including a review of recently introduced functionality and what is planned for the next 12 – 18 months

Insightful discussion of the impact of the digital transformation on WFM innovation, including omni-channel forecasting and scheduling, mobility and globalization

Explanation of how real-time adaptive scheduling is the future of WFM

Examination of how WFM is critical in creating an engaged and productive workforce

Update on the developing back-office and branch capabilities of the featured WFM suite providers

Analysis of long-term strategic planning capabilities, including hiring management and workspace allocation

WFM market activity analysis, adoption rates and 5-year market growth projections

Review and assessment of the WFM competitive landscape

Overview of the 7 leading and contending WFM vendors, including company snapshots, WFM suites, packaged solutions and small and mid-size business (SMB) offerings

WFM benefits and return on investment (ROI) analysis

Implementation analysis, including vendor methodology, best practices, maintenance and support, workshops, training and professional services

Vendor pricing for 250-seat on-premise and cloud-based WFM implementations, including incremental costs for optional modules

Comprehensive customer satisfaction survey results that measure and rank ratings across 21 product components, 13 effectiveness categories and 10 vendor categories

Detailed company reports for the 7 leading and contending WFM vendors, analyzing their products, functionality and future product development plans

Comprehensive WFM Vendor Directory

Key Reasons to Buy this Report

© 2018 DMG Consulting LLCwww.dmgconsult.com 5

• Real-time adaptive forecasting and scheduling will be a core component of NewGen WFM: The market is hungry for new and improved WFM

solutions with more flexibility and accuracy. When these new capabilities are tied to the routing engines of ACDs, their effectiveness will improve dramatically.

This represents a major transformation for contact centers and a huge opportunity for market innovation and disruptive products.

• New solutions are necessary to break open the back-office and branch WFM opportunity: Instead of retro-fitting contact center solutions, cost-

effective new offerings must be built from the ground up, supported by vertical-specific professional services. These new offerings must be able to handle

the unique needs of the back office, including deferred work, backlog, and overseeing work that spans multiple people and departments.

• AI is the future of servicing: Today’s WFM solutions help companies forecast and match their available staff resources to the volume and type of incoming

interactions. In the future, AI will help by creating a dynamic and self-learning routing process where service adaptations are driven by nuanced changes in

volume and resources throughout each work day.

Report Highlights

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WFM Building Blocks

SAMPLE FIGURE

Source: DMG Consulting LLC, March 2018

© 2018 DMG Consulting LLCwww.dmgconsult.com 7

1. Executive Summary 2. Introduction 3. DMG Consulting Research Methodology 3.1 Report Participation Criteria 4. Workforce Management Market Segments 5. Vendor Service Delivery Models 5.1 DMG Service Delivery Definitions 5.2 Vendor Service Delivery Options 6. Workforce Management Functional Building Blocks 6.1 Core, Value-Added, Optional 6.2 Vendor High-Level WFM Suite Characteristics 6.3 Integration capabilities 6.4 Security 6.5 Dashboards, Reporting and Analytics 7. Workforce Management Trends and Challenges 7.1 Workforce Management Trends 7.2 Workforce Management Challenges 8. Workforce Management Market Innovation 8.1 New Product Features 8.2 Future Enhancements 9. WFM for the Digital Age 9.1 Omni-Channel Forecasting 9.2 Algorithms 9.3 Omni-Channel Scheduling 9.4 Omni-Channel Customer Experience 9.5 Mobility 9.6 Globalization 10. Intraday Management and Automation 11. Shrinkage 12. Real-Time Adherence 13. Real-Time Adaptive Scheduling Bridges the Staffing Gap 13.1 What is Adaptive Real-Time Scheduling? 13.2 Adaptive Real-Time Scheduling ≠ Intraday Management 13.3 Benefits of Adaptive Real-Time Scheduling 13.4 Adaptive Real-Time Scheduling Decision Framework 13.5 Vendor Adaptive Real-Time Scheduling Capabilities 14. An Engaged and Productive Workforce 14.1 Agent Self-Service 14.2 Time-Off Management and Work/Life Balance 14.3 eLearning/Meeting Management 14.4 Gamification 15. Planning for Long-Term Success – Strategic Planning 15.1 Vendor Long-Term Strategic Planning Capabilities 15.2 Hiring Management Capabilities 15.3 Workspace Allocation Capabilities 16. Back-Office WFM 16.1 Back-Office WFM

TABLE OF CONTENTS 1 of 2

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17. Workforce Management Market Activity Analysis 17.1 Validating Market Numbers 17.2 WFM Market Share Analysis 18. Workforce Management Market Adoption 19. Workforce Management Projections 20. Contact Center Workforce Management Competitive Landscape 20.1 WFM Vendor Summaries 21. Workforce Management Vendors and Solutions 21.1 Company Snapshot 21.2 Vendor High-Level WFM Suite Components 21.3 Packaged Solutions 21.4 SMB Offerings 22. Workforce Management Benefits and Return on Investment 22.1 Vendor WFM Benefit Categories 22.2 WFM ROI Analysis 23. Implementation Analysis 23.1 Implementation Process 23.2 Implementation Best Practices 23.3 Training and Professional Services 23.4 Maintenance and Support 24. Pricing 24.1 Premise-Based Price Range, by Solution 24.2 Premise-Based Pricing 24.3 Cloud-Based Pricing 25. WFM Vendor Satisfaction Analysis 25.1 Summary of Survey Findings and Analysis: Vendor Categories 25.1.1 Vendor Satisfaction by Sub-Category and Customer 25.2 Summary of Survey Findings and Analysis: Product Categories 25.2.1 Product Satisfaction by Sub-Category and Customer 25.3 Summary of Survey Findings and Analysis: Product Effectiveness 25.3.1 Product Effectiveness by Sub-Category and Customer 25.4 Customer Background and Insights 25.4.1 Customer Background 25.4.2 Top Challenges to Solve with a WFM Solution 25.4.3 Strengths of WFM Solutions 25.4.4 Product Enhancements 25.4.5 Additional Comments 26. Company Reports 26.1 Aspect Software, Inc. 26.2 Calabrio 26.3 Genesys 26.4 Intradiem 26.5 NICE 26.6 Teleopti 26.7 Verint SystemsAppendix: Workforce Management Vendor Directory

TABLE OF CONTENTS 2 of 2

© 2018 DMG Consulting LLCwww.dmgconsult.com 9

1 of 3TABLE OF FIGURES

Figure 1: WFM Market SegmentsFigure 2: Vendor Supported Market SegmentsFigure 3: Service Delivery Models, Advantages and DisadvantagesFigure 4: DMG’s Service Delivery DefinitionsFigure 5: Vendor Service Delivery OptionsFigure 6: WFM Building BlocksFigure 7: High-Level WFM Suite CapabilitiesFigure 8: Integration CapabilitiesFigure 9: Security Figure 10: Dashboards, Reporting and AnalyticsFigure 11: WFM Trends for 2018Figure 12: WFM Challenges for 2018Figure 13: New Product Features, by VendorFigure 14: New Product Features, by CategoryFigure 15: Future Enhancements, by CategoryFigure 16: Omni-Channel FunctionalityFigure 17: Omni-Channel ForecastingFigure 18: Algorithms Figure 19: Omni-Channel SchedulingFigure 20: Omni-Channel Customer ExperienceFigure 21: Mobility Figure 22: Globalization Figure 23: Intraday Management and AutomationFigure 24: Shrinkage Figure 25: Real-Time AdherenceFigure 26: Adaptive Real-Time Scheduling DefinedFigure 27: Intraday Management vs. Real-Time Adaptive SchedulingFigure 28: The Benefits of Real-Time Adaptive SchedulingFigure 29: Adaptive Real-Time SchedulingFigure 30: Agent Self-ServiceFigure 31: Time-Off Vacation ManagementFigure 32: eLearning/Meeting ManagementFigure 33: Gamification Features to Promote Agent EngagementFigure 34: Gamification Figure 35: Long-Term Planning and BudgetingFigure 36: Hiring ManagementFigure 37: Workspace AllocationFigure 38: Back-Office/Branch

© 2018 DMG Consulting LLCwww.dmgconsult.com 10

2 of 3TABLE OF FIGURES

Figure 39: WFM Market Activity, as of December 31, 2017Figure 40: Intraday Management Market Activity, as of December 31, 2017Figure 41: Total Number of Intraday Management Customers and Seats, 2014 – 2017 TrendsFigure 42: WFM Market Share by Number of Seats, as of December 31, 2017Figure 43: WFM Market Share by Number of Seats, as of December 31, 2017Figure 44: Total Number of WFM Seats and Customers, 2017 vs. 2016 ComparisonFigure 45: Total Number of WFM Seats, 2008 – 2017 TrendsFigure 46: WFM Seat Projections, 2018 – 2022Figure 47: WFM Market Vendor Framework Figure 48: Company InformationFigure 49: High-Level WFO Suite ComponentsFigure 50: Packaged OfferingsFigure 51: Small and Mid-Sized OfferingsFigure 52: Vendor WFM Benefit CategoriesFigure 53: WFM ROI AnalysisFigure 54: Implementation, Professional Services, Training and SupportFigure 55: Implementation Best PracticesFigure 56: Training and Professional ServicesFigure 57: Maintenance and SupportFigure 58: 2018 Premise-Based Price Ranges, by Solution Figure 59: Premise-Based Pricing for Forecasting and Scheduling for a Single-Site, 250-Seat Contact CenterFigure 60: Premise-Based Pricing for Incremental WFM Modules for a Single-Site, 250-Seat Contact CenterFigure 61: Cloud-Based Pricing for Forecasting and Scheduling for a Single-Site, 250-Seat Contact CenterFigure 62: Cloud-Based Pricing for Incremental WFM Modules for a Single-Site, 250-Seat Contact CenterFigure 63: Customer Survey Rating CategoriesFigure 64: Average Satisfaction Ratings, by CategoryFigure 65: Current Product Satisfaction Ratings, by CustomerFigure 66: Implementation Satisfaction Ratings, by CustomerFigure 67: Training Satisfaction Ratings, by CustomerFigure 68: Professional Services Satisfaction Ratings, by CustomerFigure 69: Ongoing Service and Support Satisfaction Ratings, by CustomerFigure 70: Planned Product Innovation Satisfaction Ratings, by CustomerFigure 71: Pricing Satisfaction Ratings, by CustomerFigure 72: Responsiveness to Product Enhancement Requests Satisfaction Ratings, by CustomerFigure 73: Vendor Communication Satisfaction Ratings, by CustomerFigure 74: Overall Vendor Satisfaction Ratings, by CustomerFigure 75: Product Satisfaction Ratings by Category Figure 76: Omni-Channel Forecasting Satisfaction Ratings, by CustomerFigure 77: Multi-Skill Scheduling Satisfaction Ratings, by Customer

© 2018 DMG Consulting LLCwww.dmgconsult.com 11

3 of 3TABLE OF FIGURES

Figure 78: Intraday Management Capabilities Satisfaction Ratings, by CustomerFigure 79: Real-Time Adherence Features Satisfaction Ratings, by CustomerFigure 80: Agent Self-Service Features Satisfaction Ratings, by CustomerFigure 81: Vacation/Time-Off Management Features and Functionality Satisfaction Ratings, by CustomerFigure 82: eLearning/Meeting Management Capabilities Satisfaction Ratings, by CustomerFigure 83: Long-Term Strategic Planning Capabilities Satisfaction Ratings, by CustomerFigure 84: Budgeting/Cost Management Capabilities Satisfaction Ratings, by CustomerFigure 85: Timekeeping and Payroll Management Features Satisfaction Ratings, by CustomerFigure 86: Back-Office/Branch Functionality Satisfaction Ratings, by CustomerFigure 87: Reporting/Dashboards Satisfaction Ratings, by CustomerFigure 88: Ease of System Configuration/Set-Up/Use Satisfaction Ratings, by CustomerFigure 89: Ease of Integration with Third-Party Applications Satisfaction Ratings, by CustomerFigure 90: Mobility Features Satisfaction Ratings, by CustomerFigure 91: Hiring Management Satisfaction Ratings, by CustomerFigure 92: Workspace Allocation Satisfaction Ratings, by CustomerFigure 93: Gamification Satisfaction Ratings, by CustomerFigure 94: Performance Management Satisfaction Ratings, by CustomerFigure 95: Desktop Analytics Satisfaction Ratings, by CustomerFigure 96: Robotic Process Automation Satisfaction Ratings, by CustomerFigure 97: Product Effectiveness Ratings by CategoryFigure 98: Ability to Forecast Accurately Satisfaction Ratings, by CustomerFigure 99: Ability to Schedule Efficiently and Effectively Satisfaction Ratings, by CustomerFigure 100: Ability to Improve Agent Utilization/Occupancy Satisfaction Ratings, by CustomerFigure 101: Ability to Improve Agent Adherence Satisfaction Ratings, by CustomerFigure 102: Ability to Automatically Identify and Automate Real-Time Intraday Management Adjustments Satisfaction Ratings, by CustomerFigure 103: Ability to Manage Planned and Unplanned Shrinkage Satisfaction Ratings, by CustomerFigure 104: Ability to Support Agent Self-Scheduling and Scheduling Preferences Satisfaction Ratings, by CustomerFigure 105: Ability to Support Complex Global Work Rules Satisfaction Ratings, by CustomerFigure 106: Ability to Support Flex-Scheduling Satisfaction Ratings, by CustomerFigure 107: Ability to Streamline Administrative Processes Satisfaction Ratings, by CustomerFigure 108: Ability to Create Long-Term Staffing Plans at the Skill Level Satisfaction Ratings, by CustomerFigure 109: Ability to Improve Supervisor Real-Time Oversight Satisfaction Ratings, by CustomerFigure 110: Ability to Improve Contact Center Performance Satisfaction Ratings, by CustomerFigure 111: What channels do you use your WFM solution to support?Figure 112: What were the top 3 - 5 challenges you wanted to solve with the WFM solution?Figure 113: Please tell us the top 3 - 5 strengths of your WFM solution.Figure 114: Please list the product enhancements you would like to see.Figure 115: Additional comments about your experience with the vendor and/or product.

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