Saturday, September 11, 2010

Of Contact Centers and CRM Evolution

A contact center’s objective is to combine all customer communications to provide a consistent and complete customer experience. Irrespective of the channel that the customer chooses to pursue: whether it is via a website or a discussion forum, a chat message, a short message service (SMS) or even a telephone call, the agent needs to be empowered to experience the customer request.

The contact center today is not there with this yet and will therefore have to develop multichannel capabilities that will need to be delivered as a standard feature and not as a complex customization. Online communities support need to proliferate. Blogs, discussion boards, social networking (with special emphasis on feedback management), wikis and collaboration tools to enable customer self service. And knowledge solutions, real-time analytics and decision support to enable the agent better serve the customer.  Customer data integration is an important requirement here that will enable a 360 degree view of the customer and her/his experiences.

Lets take a look at what technology, a contact center needs. A contact center has essentially the following components to it and some of them can be rather tightly coupled with the others.

   1. The Customer Interaction Management (CIM) suite of business applications that will manage the customer interaction process. Some amount of Business Process Management (BPM) will have to be inbuilt into the CRM for workflow management.
   2. Contact Center infrastructure, not restricted to Interactive Voice Response (IVR) systems, Computer Telephony Integration (CTI), SMS and Payment gateways alone.
   3. Optimization tools for the Contact Center such as call recording solutions, back-office software, training and quality assurance tools.
   4. Analytics tools to gather business intelligence and customer insight.

CRM applications are increasingly becoming more complex. Automated proactive alerts, BPM and integration support for multiple interfaces are now becoming standard features. While most CRMs today are primarily being used for handling service requests and as knowledge-base solutions, social networking support and predictive analytics are fast catching up.

Though it is a well known fact that any hosted CRM needs to have some sort of SaaS support for it to be successful, pure-play SaaS-based CRMs still have a long way to go before they can start dominating the CRM market. Today, Salesforce CRM is available only as SaaS. Microsoft Dynamics has now gone online and offers a cloud version as well. However, SaaS based CRMs have historically worked great for low-volume and simple contact centers and therefore there is a dying need for SaaS CRMs to have more complex and customizable features.

A paradigm shift is therefore waiting to happen with SaaS based CRM solutions. Gone are the days when the contact center was only about blended solutions, simple CRMs that primarily handled service requests, and IVRs. The market is out there and the future is waiting. After all, the objective of a good Contact Center is always to enhance the customer experience, isn’t it?

Monday, September 6, 2010

Why Do Indian Tech Product Companies Struggle?

This was in the news last week: technology product companies are coming of age in India. I was just wondering, we have been a software services powerhouse for quite some time and Bangalore is even known as India’s Silicon Valley. Hell, I even worked in one of the World’s largest software services company for almost 8 years. But how come, we don’t have a lot of technology product companies that are famous enough to be recognized worldwide? I then took up a stab at this and came up with the following:

The first and most obvious answer has to do with talent. While we have some of the best and brightest engineers all right, most of them would rather work at a large software services provider than work at a small unknown product startup. As if hiring wasn’t difficult enough already, the typical Indian mentality is to progress up to a non-technical path very quickly. After all, if I as a software programmer ever told my to-be in-laws that 10 years into my job, I am still into software programming and working for an unknown product startup, then it would simply be a matter of shock to them.  After all wasn’t I good enough to become an account manager or delivery manager at a TCS, Infosys or Wipro by then, or at least a project manager at one of these companies perhaps?

Having experienced and great software programmers in your technology product company is extremely critical to building good products. While not everyone has to be a superstar, you have to have the right mix of them.  Product companies also have a very strong engineering led approach that is missing in most service companies that typical have a very strong marketing driven approach.

Secondly, we never quite had the Steve Jobs, the Bill Gates and the Larry Elisions. These visionaries were extremely important in the advocacy that was required for a market to be created. The software services industry on the other hand had people such as a Narayana Murthy and a FC Kohli.

Thirdly, Indians also exhibit another typical behavior. We are more to do with think small and then scale up. We are true conformists to tradition. So therefore most of us have never been trained to think disruptively. This is essential to building a successful global products company and Zoho has done this so well with their SaaS strategy which they did much before Google and Microsoft could launch their office products online.

Fourthly, regulation and infrastructure has still catching up to do. A 512 Kbps Internet bandwidth connection is still un-available in some of India’s tier 2 and 3 cities and even if it is, it is either not extremely affordable or reliable. On the telephony front, regulations have been a constant inhibitor to inhibition. Coming from a customer services solutioning standpoint, these 2 stand out to me first: 3G is yet to take off on a serious note and VoIP calling to telephones are still a strict no-no.

However for people who understand all this, India clearly has the cost advantage. Much lesser capital is required to launch a product startup today in India than in most other developed countries. Also if you are launching a product company in India that Is specific to Indian requirements only, which is actually a great idea to pursue given that the Indian economy is doing better than any other developed countries currently, then you need to make the markets work for you in India by adding localization to your products.