Digital Transformation Begins and Ends with the Customer

Being a consumer today can be frustrating. We are armed with uber powerful, smart devices that encourage multitasking from anywhere there is a connection. But the one obstacle continues to be the companies, small and large, we want to do business with via these devices. For the most part, these companies are not yet as smart as our smart, handheld devices.

It almost feels like being the first fax machine owner. It must have been a terrific feeling, but who could you talk to?

Is the gap between consumers’ smart devices and the digitization of the companies we want to do business with ever going shrink? Or will the consumer’s device always be smarter?

Smart devices have been around for a long time. In 2016 we would not consider ourselves early adopters. However, when comparing smart device adoption to corporation’s adoption of digital engagement technology, many corporation’s global infrastructures are still not as smart as our handheld devices. Case in point, last year Dimension Data reported that two out of five companies say that their current digital channel systems don’t meet current needs and less than half of those companies believe their digital infrastructure will deliver against future needs. With smart phone subscriptions expected to surpass basic phone subscriptions this year, companies are clearly struggling—and already predicting that they will continue to struggle—to keep up with their customers’ digital needs and expectations, starting with true mobility.

Think about that: the consumer experience is ahead of what most companies’ IT can deliver today and your smart device can do things for you that a global IT infrastructure, with all it scale and cost, can’t. It’s a very strange reality.

The reality for these companies is that investments in upgrading and modernizing to digitize an entire infrastructure takes budget, time, planning, and most important, commitment. Yet, not digitizing fast enough can be detrimental to the bottom line if your customers, partners, suppliers can’t interact with you as easily as they can your competitors.

Where to Start a Digital Transformation

After a company has determined that digitizing their infrastructure is an urgent matter and can no longer wait, the next challenge is planning where to start—all the while, your customers are continuing to get smarter devices. Every function, from human resources to procurement to sales to marketing, will benefit. But the truth is that the need to modernize the infrastructure originated with the customer. So doesn’t it make sense that the modernization starts where the customer interacts most—the customer experience center?

I willfully admit that may be an obvious answer coming from the CTO of Avaya. But as a customer myself, I want to do business with companies that prioritize me as a customer, and invest accordingly. I don’t want to read in the press how great their IT is if I cannot get my questions answered or my requests fulfilled and have a poor or lukewarm customer experience.

This goes back to the basics of business success. The basics that are often overlooked in the fast paced, digital world we live in: the customer is always right. The customer is the priority. The customer is why we’re in business. Treat customers as you would want to be treated. Customer. Customer. Customer. You can’t go wrong putting the customer first. User experience is king.

Unfortunately many companies who have, or are undertaking a digital transformation in order to survive, have forgotten that it’s the customer’s experience that is most important, not the company’s experience. Sure the company benefits from a digital transformation—the CAPEX and OPEX benefits are many. Employees will be more efficient, productivity will be up, performance will be easier to assess and modify. But the focus must still be about how the transition will affect the customer’s experience with the company from beginning to end.

Furthermore, the practice of contact center technology management has enabled teams to perfect how to evolve the services associated with the voice channel. Voice is often considered the most complex, technologically challenging channel—voice quality matters, and issues are immediately perceptible. As an industry, we have spent years studying and understanding how to improve upon the quality and delivery of voice to the customer experience. This same ongoing attention to detail, planning and understanding of quality needs to be applied to every additional touch point made available to the customer to connect with you. This is the humanization of going digital.

A Case for Retailers

Take traditional retailers for example. Any traditional retailer that started out as brick and mortar then needed to evolve to online sales in order to survive is compared to the king of online, digital retail: Amazon. One thing Amazon knows is that being a digital retailer is not just about putting products and services online and making them available for purchase. The real value is in defining the actual customer experience of the online shopper, and increasingly the online mobile shopper.

  • Is the online, mobile experience the same experience customers have when they visit a store or better?
  • Is the process for returning an online purchase the same experience as returning at the store or better?
  • If there is a problem with the product after it’s been purchased, is the online, voice, video, chat, omnichannel customer service experience the same as in store or better?
  • Is the customer punished for purchasing online by having to pay added shipping fees?

Notice that none of these questions ask: is the company’s experience the same or better?

This is why starting a digital transformation with the customer experience center, aka the contact center, is the logical starting point. The contact center will never be pure digital because customers expect some human interaction at some point. Add to that, that more often than not, employees—subject matter experts—outside the contact center are more actively involved with customer experience. As a result, every scenario or use case for human interaction needs to be considered and planned for during a digital transformation. Maybe the human interaction is not during the shopping process or the purchasing process. But having the ability—the option—to connect with another human being when questions or doubts arise before, during, or after the purchase is a key part of any customer journey. It builds loyalty and a long-term digital relationship with the customer.

Hidden Benefit of Customer-focused Starting Point

A hidden benefit of starting with the customer experience is that you already have people excited and ready to help you through the transition. I’m not talking about your vendor—obviously they will be there with a plan in place to partner with you through every step—if not, then you have the wrong vendor. I’m talking about your contact center agents.

Many companies when they start this transition have learned that their agents, as customers themselves and in their personal lives, are very comfortable working on multiple channels in addition to talking on the phone. In fact, the learning curve for the agents is often not as time intensive as originally anticipated. They’re excited to be able to engage with customers on any channel and create an integrated, omnichannel experience. More importantly, they understand the benefits of being able to see the customer’s entire experience history with the company—from in-store, to online, to social, to experience with products and services, etc.

That said, for social channels, more than half of companies will typically have a dedicated social response team in place to respond to customers on social channels. But having access to the customer’s history of interactions with the company across all channels, including social, is a relief to any customer interaction agent—contact center or in store. One of the top complaints by agents is not having a complete view into all of the customer’s interactions with the company. No one likes to feel stupid when trying to calm down and possibly save an unhappy customer. Having a complete view of the customer across all channels including an historical view should be a priority. Yet 79% of companies still don’t have this view today.

Many companies will say that the delay in providing their agents with a complete customer journey view is because they are still trying to leverage legacy investments through their digital transformation. Managing a digital transformation of the customer experience center by keeping legacy investments in place, while completely understandable, is not without risk. With more than 2.6 billion global users of smart phones, the risk in delaying a full digital transition is quickly losing business to competitors who are digitizing their entire infrastructure without looking back.

Once the decision to go digital is made and communicated, going digital starting with the customer experience is exciting. It means being able to be more efficient, which makes people more productive. The ability to have each customer’s historical record of interactions across all channels readily available means the agents are better informed about each customer, which allows the agents to do a better job with each customer. It also provides a single location for analytics to work its magic—but analytics is important enough on its own to be the focus of a separate blog at a later date. This is where and how customer loyalty and customer satisfaction start to go up.

It is clear to me that the level of excitement is directly correlated to the fact that your agents/employees are also customers themselves. They are smart device users. They know from experience how painful it is to try to interact with a company that is not yet digitally transformed.

And we’ve come full circle. The customer—more than 2.6 billion smart device users—is the real focus of a digital transition. On behalf of customers everywhere, please don’t forget that.

 

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Secure IoT Deployments with Avaya SDN Fx™ Architecture Solutions

Let’s look at how to deploy the IoT in a safe and sane manner—a top-of-mind business challenge. Before diving into the technology, let’s remember why secure IoT deployments are so important. The Yahoo breach is a lesson learned: Yahoo CEO Marissa Mayer lost $12M in bonuses over the Yahoo data breach and Yahoo paid $16M to investigate the breach and cover legal expenses as of March 2, 1017. It’s clear that the cost of not building a safe infrastructure is much more than the cost to build one.

Software Defined Networking (SDN) is sometimes over-hyped. At a base level, separating the control plane from the data plane makes sense (if one understands the definitions of a data plane and control plane). In a practical sense, it means the network infrastructure doesn’t need to be managed on a node-by-node basis (i.e., logging into network devices on each end of the cable to make complementary changes to configure a network link). This is where SDN can be over-hyped. The SDN solution automates the process of making the changes to each end of the cable, making the network easier to manage. But, it doesn’t reduce the complexity, increase the resiliency (other than reduce outages due to typing errors), or make it easier to troubleshoot or expand.

Avaya SDN FxTM Architecture is based on fabric, not network technology. The architecture was designed to be managed as an entity of subcomponents and not a bunch of nodes that are interconnected to create a larger entity. In other words, it’s like designing something to manage a forest, as opposed to managing the trees. Would you really want to manage a forest one tree at a time?

How SDN Fx Architecture Benefits the IoT

Although the SDN Fx network architecture wasn’t specifically designed for the IoT, it works well for providing a solid foundation to deploy IoT solutions. These are the key components of the SDN Fx Architecture that benefit the IoT:

Avaya Fabric Connect is Avaya’s implementation of Shortest Path Bridging (SPB/IEEE 802.1aq). SPB replaces the traditional network stack, greatly simplifying network configuration, management and security. Three key benefits of Fabric Connect apply directly to IoT deployment use case:

  • Hyper-Segmentation: SPB supports 16 million+ network segments. In theory, every IoT device on a network could have its own segment. More realistically, every device type can have its own segment. For instance, HVAC could be one network, security cameras could be on another, employees on a third, guests on a fourth, etc. It’s worth noting that the NSA sees segmenting IoT networks as a key to limiting exposure of IoT deployments. (In my next blog, I’ll examine how Avaya solutions provide security between devices on the same segment.)
  • Automatic Elasticity: Services in SPB are provisioned at the edge without touching the core of the network. This makes it very straightforward to provision network services for the hundreds or thousands of IoT devices that the business wants up and running yesterday. Plus, edge provisioning makes moving devices simple. When a device is disconnected from the network, the network service to that port is disabled and eliminates open holes in the network security. When the device is connected to the same or different port, the device is authenticated and services are automatically configured for the port.
  • Native Stealth: SPB operates at the Ethernet, not the IP layer. For example, if a would-be hacker gains access to one segment of a traditional network, they can go IP-snooping to discover the network architecture. A traditional network is only as secure as the least secure segment/component. With Fabric Connect, if a security loophole is overlooked in a less important network project, there isn’t a back door to access the rest of the network and the corporate data.

Avaya Fabric Extend provides the ability to extend an SPB fabric across a non-fabric network, such as IP core, between campuses over Multiprotocol Label Switching (MPLS), or out to the cloud over WAN. IoT deployments enable the phased adoption of SDN Fx so that IoT projects can gain the values above, without ripping and replacing significant network infrastructure or affecting non-IoT workloads.

Avaya Fabric Attach automates the elasticity of the SPB fabric for IoT devices and other devices supporting Automatic Attachment (IEEE 802.1Qcj). Fabric Attach allows the device to signal the network that it needs in order to connect to a service. If the device is authorized, the service is automatically provisioned. When the device is disconnected, the service is terminated. If the device is moved to a different network port, the service will be provisioned automatically to the new port. This makes deploying and moving Fabric Attach-enabled devices very simple. For a real-world example, see how Axis Communications is starting to deploy Fabric Attach in their IoT devices.

Avaya Open Networking Adapters—an Open Network Adapter is a small device that sits in-line with an IoT device to provide programmable security for IoT devices that lack adequate network security. One component of the solution is Fabric Attach, which provides automated service provisioning and mobility to devices that don’t have the auto-attach capability. (I’ll explore more about the power of Open Networking Adapters in an upcoming blog.)

The Avaya Identity Engines Portfolio provides powerful tools for managing user and device access to a network, commonly referred to as Authentication, Authorization, and Accounting. In the IoT use case, Identity Engines authenticate a device by MAC address or MAC address group and use predefined policies for the device type to dynamically configure services. For instance, a camera could be assigned to Video VLAN 30 and provisioned for multicast, while a phone would be authenticated, assigned to VLAN 20, and configured for SIP communications. This provides security for unauthorized devices joining the network and provides automatic segmentation based on device type and service requirements.

I’m not sure if there ever was a time when network design and implementation was static, but there was a time when the devices connected to the network could be predicted: servers, printers, storage, PCs, etc. With IoT, IT is being asked to design networks for devices that haven’t been thought of yet. The old network technologies were designed for mobility by work order, and IT was able to list the number of device types that wouldn’t work on the network. SDN Fx provides a true software-defined network and not software-defined automation on old network constructs. A fabric network has the intrinsic flexibility and security required for tomorrow’s IoT projects, today.

In my recent blogs about the IoT, I’ve looked at how the IoT enables Digital Transformation and examined a business-first approach to IoT technology adoption. Next in this blog series, I’ll explore the newest component of the SDN Fx solution for the IoT, the Avaya Surge™ Solution.

Customer Journey Analytics vs. Traditional Analytics—Know the Difference

It’s expected that 60% of all large organizations will develop customer journey mapping capabilities by 2018. Why? Because the average consumer isn’t so average anymore. Consider that a typical customer now owns three personal mobile devices, each with anywhere from 10 to 20 downloaded apps. This individual owns an average of five social media accounts, nearly three of which are actively used. Additionally, the average office worker receives up to 121 personal emails per day. Just imagine what these figures look like for consumers on the high end of this engagement spectrum.

To get a snapshot of my own activity, I followed these simple instructions to figure out how many emails I receive. It’s 10 a.m. and I show 59 emails received (up from 47 just two minutes ago). And tweets average around 6,000 per second—I have 1,175 in my queue based on who I am currently following. The question is: How do you bring your email, tweet, post, or blog to my attention amid all the clutter?

When we look at what this means to customer experience it is worth noting that we’ve reached a point where over 40% of customers now use up to seven different channels to interact with brands, from live chat to email to social media to SMS. Businesses increasingly understand this fact, and they’re taking the necessary steps to ensure they can deliver consistent, contextualized experiences across various channels and devices.

Each of the devices and channels offers its own set of diverse scenarios for linking to other devices and channels, making no two customer experiences the same. The not-so-good news is that businesses are still grappling to understand customers’ actions across these various touchpoints. They need to leverage data but, in fact, 43% of companies currently obtain little tangible benefit from their data, while 23% admit they derive no benefit whatsoever. Organizations are struggling to create a data strategy that delivers the insights needed to drive anticipatory engagement and repeat spending.

The bottom line is that a business can support virtually every interaction channel. However, without a comprehensive view of the data generated and shared across those channels organization-wide, it will fail. Supporting an array of channels is simply not enough. Businesses must gain an inherent understanding of how customers are using these channels so that they can adapt, evolve and change as needed. This is where the ability to understand your data—specifically, customer journey analytics—becomes vital.

The solution here may be simple to describe, but implementing it isn’t. Adopting customer journey analytics means businesses must now support a powerful, real-time visualization of the customer journey across all lines of business, not just the contact center. They need a roadmap to continually reinvent key processes and fine-tune organizational behavior. They must harness real-time and historical data across all channels and devices to intuitively understand customer needs and optimize business outcomes. Most challenging of all, they must do this in a way that shows tangible ROI and improves TCO.

To make customer journey analytics work, businesses must take a critical step from ideology to implementation—a move that can often feel like a leap of faith.

But there’s good news: technology has evolved to a point where companies can now easily, effectively and cost-efficiently achieve these core data objectives. The key is investing in an extensible, omnichannel customer engagement solution.

Your customer engagement solution should boast simple capabilities. It should be pretty easy to create and manage dynamic, multi-touch customer journeys. And you need a built-in, flexible analytics and reporting platform to deliver a single, comprehensive view of customer data across all sources, both internal and external. This lets you compete using customer journey analytics, and also easily add third-party data sources to amplify their strategy.

A customer engagement platform redefines the way businesses engage with digital consumers. Here’s how customer journey analytics stand apart from traditional reporting and analytics:

  • Obliterates Siloes: A siloed environment is the greatest barrier to data success, and it’s affecting more businesses than we realize. According to Deloitte’s 2017 “Contact Center Benchmarking Report,” nearly 60% of customer channels are currently being managed in silos. Analytics integration is vital for competing on customer experience (CX), an initiative that traditional analytics tools simply can’t support.
     

    Built on open, extensible architecture, a customer engagement platform has unparalleled flexibility for gathering transactional information from numerous different channels (IM, co-browsing, SMS, phone, email, IoT) and devices (phone, mobile/tablets, branch, desktop, kiosks). This enables companies to flexibly collect, process and analyze all real-time and historical data. They gain a rich visualization of their customer journey enterprise-wide. This means consistent, contextualized experiences no matter where and when interactions begin, end, continue—and no matter how many company agents are communicating with the customer.

  • Seamlessly combines internal and external data sources: The open nature of a customer engagement platform enables companies to combine internal data with that of virtually any other business intelligence (BI) tool. For example, insights collected internally can be combined with data from visualization tools from leading providers like MicroStrategy, Oracle, SAP and Tableau. This lets managers maximize the return on their existing investments, while driving their potential beyond what was initially imagined.
     

    Furthermore, this unique ability lets managers generate cradle-to-grave customer interaction reports, enabling them to identify innovative new ways to meet consumers’ evolving needs. Chances are you’re not going to get this with traditional reporting and analytics platforms.

  • Transforms the agent experience: A holistic customer engagement platform redefines agent and supervisor experiences by allowing companies to easily create, customize and integrate key applications for specific work groups. Supported by an advanced software development kit, companies can build their own contact center apps, or embed specific functions into their existing apps, to customize desktops for any unique customer/agent configuration. The solution represents a revolutionary way to serve digital consumers. And, it offers managers a new avenue for analyzing performance metrics for all ways customers are served.

With customers using more digital channels than ever, it’s clear that now is the time to adopt customer journey analytics via a customer engagement platform.

Interested in learning more or chatting about transforming your analytics environment? Contact us. We’re here to help and would love to hear from you.

A Business-First Approach to Digital Transformation

In part I of this series, we explored the definitions of Digital Transformation, IoT, and Smart Enterprise.

Digital transformation goes beyond normal organizational evolution. It is a metamorphosis enabled by new sources of information and new ways to interact with an organization’s eco-system. It’s said that “necessity is the mother of invention”—meaning we are satisfied with the status quo until some external force motivates us to change. An evolutionary breakthrough requires an external force that threatens organisms’ very existence—they must adapt or die. The Ice Age was a massive external force that caused many organisms to change. Likewise, today digital transformation is forcing change in businesses. And note that today’s external forces behave more like an incoming meteor than a slow-moving glacier. Slow evolution will not work here.

Over the last three decades, we have seen organizations change with the Information Age. The Data Warehouse phase illustrated valuable information existed in operational financial data that could be used to improve efficiencies within organizations. While working for EMC (now DellEMC), I had a lot of conversations with customers about building storage infrastructures for data warehouses. When sizing a storage infrastructure, knowing how much data is going to be written and how long the data will be stored is required. I was always amazed at how little guidance was provided to IT organizations from the sponsoring Business Unit as to the amount of data needed to be stored in the warehouse. The BU didn’t know what data they were going to collect, nor did they have any idea how long the data would need to be stored. We were often faced with sizing a project to collect everything and keep it forever. Bottom line: the BU didn’t have a clear set of objectives and believed if they didn’t jump on the data warehouse bandwagon, they would be destined to fail.

I am of the opinion that many organizations today are facing similar situations with IoT. Amara’s Law states, “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” Gartner’s research methodology, based on Amara’s Law, portrays its curved Hype Cycle in five phases. We may never know exactly where we are on the Hype Cycle—we can only tell where we were. For example, we can’t identify the peak until we see a decline.

I think we are somewhere on the left-ascending slope with inflated expectations and believe we have yet to reach the peak. I also consider the trough is an industry phenomenon and one that individual organizations don’t necessarily have to experience. It is the old story of missing goals: was the goal too high and, therefore, unattainable or was the goal appropriate and execution was faulty? Accurate goals are predicted by experiences. New technologies, by their nature, are hard to accurately predict since we don’t have the experience to base the prediction upon.

A Digital Transformation Game Plan

Just because we are early in the hype phase doesn’t mean organizations shouldn’t be investing in IoT, but they should think business first and technology second. For example, when data warehouse customers approached their projects with a clear set of business challenges and objectives in mind, their projects were more successful than those who led with technology. This doesn’t mean that organizations that started with technology first weren’t eventually successful; they just spent more time and resources getting there.

A smart enterprise is one that looks at their place in the world today, seeks to understand how their environment is changing, determines how they need to evolve, and looks to technology, people, processes and data to determine how to reach their goals. As I point out in my blog about data loss, if you defined yourself in the 80s as being in the record business, you had a short life expectancy. But, if you defined yourself as being in the music business and were able to take advantage of the digital transformation at the time, your brick and mortar storefront could have evolved into a worldwide enterprise. As history showed, it was the new businesses that profited from the digital music industry emergence.

An Illustrative Example

Let’s take a look at a couple of anonymous hoteliers—Property A and Property B. Both properties are full-service five-star providers catering to business and leisure travelers. Both are seeking to improve their on-premises guest experiences. Marketing at Property A has determined their customers want star treatment. Their customers are looking for a high-touch experience, where the staff and employees know their names and can anticipate their every need (based on past experience). Property B determined their customers want a fully-automated experience—minimizing staff interaction, while maximizing guest independence. Both organizations:

  • Set clear objectives
  • Identified the loyalty app on their guests’ smart phones as the key to providing the desired guest experience

When a guest arrives at the front desk at Property A, the concierge greets them by name with their room reservation already pulled up on the console. The guest’s loyalty phone app identified the guest with the property’s wireless location-based service, prompting the guest’s photo to be displayed on the concierge’s console. When the guest stepped up the desk, the concierge selected the correct picture to get the guest’s information displayed on the screen. To the guest, it appears the concierge personally recognized them like they were a sports or entertainment star.

When a guest arrives at Property B, the guest’s loyalty phone app signals the wireless location-based service that the guest has arrived. The guest is checked into the hotel automatically. The guest room number and electronic key is pushed to the app on the phone and the guest goes directly to their room without ever talking to property personnel. The app may even provide turn-by-turn directions for the guest to get to their room in order to avoid asking for directions.

Both properties are similar with two different business goals. Looking at the two solutions from the Internet of Everything (IoE) perspective presented in part one of this series:

  • IoT: In these examples, an app on the smart phone is the networked device.
  • Data: The high-touch model requires photos of the guest and/or their family members. Property B needs to tie PCI information to the app with requisite data protection requirements.
  • Processes: These solutions need to tie the new functionality into the existing systems. If these properties belong to chains, how will information be updated and shared with the other properties. Will data be replicated locally on-demand when guests book a reservation? How long will it take for data to be updated? If the guest books a reservation from the parking lot or cab, will the data be ready when the guest walks into the lobby?
  • People/Personnel: Property A needs to train the desk clerks and other personnel that are expected to provide the star treatment to guests. Sensitivity training on how to handle the guest accompanied by a woman that does not look like his wife would be valuable. Property B personnel need to be trained how to respond when the app doesn’t work correctly and how to interject themselves into the process with minimal impact and maximum efficiency to the guest.

For more about digital transformation in hospitality, read the Avaya blog Five Ways Hotels Can Build a Successful Digital Strategy.

IoT and other emerging technologies, like artificial intelligence, are providing the capability to respond to environmental pressures and business opportunities in significantly new ways. I propose that while everyone will be successful with IoT (eventually) or become extinct, the enterprises that start with business requirements first and apply technology (old and new) second, will become smart sooner and last longer.