1: Cloud Contact Centers — New Rules of the Game

This article is part 1 in the series “Adjusting your Cloud Product Deployment/Offer to a Coronavirus Driven World”. You can find the Introduction to the series here.

In the introduction, I outlined an approach to analyze the complex scenario that decision-makers face. I highlighted the importance of being clear about what we know and don’t know. Let's expand on these points using the Fox Model¹.

Figure 4. Fox Model Rules of the Game

The Fox model has 4 quadrants:

• Quadrant 1: Variables that are certain, but remain outside of our control. This quadrant describes your operating environment. It is your departure point.
• Quadrant 2: Things that are both uncertain and beyond our control. They will impact on how you test your business model and business case.
• Quadrant 3: options that are within our control, but there is still a level of uncertainty.
• Quadrant 4: describes the decisions we can take, both certain and within our control.

Only once you have examined 1 & 2 do you have the information to frame your options in 3. You can then make the decisions needed to adjust to our new reality. This article unpacks quadrant 1, the rules of the game for a cloud contact center product.

The Business Model Canvas (see fig 3. in the introduction) is great for framing the rules of the game. The specific areas in the canvas to consider are:

• Customer Segments: your target market
• Channels: your route to market and
• Relationships: building and maximizing your relationship with your customers to drive mutual success
• Cost structure and Revenue streams

Figure 5. Business Model Canvas focus areas for Rules of the Game

The global coronavirus pandemic has disrupted existing business models and forced change. Gartner describes how organizations move through phases as they react and adjust how they operate.

Figure 6. The New Normal, Four Phases for leading in a Disruptive Crisis (Gartner)

As lockdowns start to be relaxed, and people start to go back to work, it is reasonable to assume that most organizations are moving between phase 2 and phase 3. Product managers and decision-makers should take a close look at what the “new normal” may look like and what rules of the game have changed.

In this cloud contact center example it is easy to see the obvious customer (segments) changes to consider:

• Remote working will change your operating model and business proposition
• The shift from on-premise platforms to cloud contact centers has accelerated.
• Recession will have a commercial impact on how customers buy
• Change to how to evaluate proposals
• High levels of uncertainty will force the consideration of different scenarios for your business case.

Remote Working

Many, if not most contact centers have used a remote agent model to maintain operations during the lockdowns. While some may view this as temporary, remote working has proven to be very successful.

A hybrid office-based/remote agent working model is key to agent safety, efficiency and delivering great service to customers. Examples of the impact on working practices in the contact center include:

• Split shifts for agents
• Staggering of agent start and end times
• Changes in agent team structure due to social distancing requirements
• Increased use of outsourcing

These principles can apply to all parts of an organization and the design of operational processes. It is reasonable to assume that this mode of working will remain in place for some time to come.

Cloud Adoption is Increasing

The shift from on-premise deployments to the cloud is not new. Sheila McGee-Smith, a well-known technology analyst, highlighted in a recent presentation that before the pandemic, cloud contact center seats were forecast to grow from 17% (2019) to 38% in 2024². Based on her observations, she predicts that it is more likely that it will grow to 50% in 2024. This is in line with anecdotal adoption data here in the UK. Higher adoption drives scale. If you consider this with the other changes, it is easy to see that a change in the service delivery model is required.

Commercial Constraints

Economic recession will be a reality for every country, vertical segment and organization. This will impact budgets and purchasing power. Given the high level of uncertainty, usage-based commercial models will be high on the agenda.

There are 3 models for usage-based charging to consider:

• minutes based charges
• committed usage level plus a variable usage charge to accommodate seasonality
• variable usage charge — pay only for what you use

There are pros and cons to each. This is a topic covered in more detail in a separate article.

Relationship with your Customer

How customers test and score proposals will certainly change in the short to medium term. This changes the rules of the game. In a socially distanced world, you have to consider how to build a trusted customer relationship to ensure a successful bid.

In a “normal” contact center procurement cycle, organizations tend to focus on the feature set of a specific vendor platform first. In the current climate, the focus has to shift to the contact center agent. The enablement of a remote agent, how they will use the tools they need, how they operate and how to manage them, will be critical.

Figure 7. How customers evaluate things will be changing

The agent has now become the first area of focus. In effect, this has turned the evaluation model inside out. This change places far more importance on the service operating model. How agents connect to the contact center, how you onboard them and how you support day to day operations, will be fundamental to success.

Channel Partners / Resellers / Solution Providers

The role of a channel partner changes when considering a cloud vs on-premise deployment of a contact center. This requires a review of processes and engagement models that existed before. This is important from the view of the buyer and the provider. This is covered in more detail in a separate article.

Uncertainty

There is a high degree of uncertainty when trying to consider what will happen as countries lift the lockdowns; how this will impact how a product offering needs to change or how it is consumed. This does not mean that you cannot assess it and plan a response. It needs a structure for evaluation and recognition of different potential scenarios.

Figure 8. Fox Model Key Uncertainties & Scenarios to consider

I take a look at this in more detail in parts 2 and 3.

You may be wondering if Porter’s 5 Forces framework works here? You have hit the nail on the head. It works perfectly for summarizing the rules of the game.

I have found it helps me to address key uncertainties before you come back and summarize the rules of the game. Clearly separating the two ensures that they don't get mixed up. I will come back to Porter’s 5 Forces in more detail in part 2.

The changes to the rules of the game that I have highlighted are not exhaustive. There are many that I have not included, it would take too long to document them all here. If you want to discuss them in more detail, please feel free to reach out to me.

If you feel that you want to comment, agree, disagree, make an observation; please post a comment. I will respond. Or you can connect with me on LinkedIn.

Next: Part 2: Cloud Contact Centers — Key Uncertainties to Consider

References:

1. “The Mind of a Fox” (Illbury & Sunter, 2011).

2. Enterprise Connect Conference, 2020. Presentation: Market Report: The Cloud Contact Center Challenge — Transition, not Technology