Tag Archive | CEBP

CEBP: What Does it Mean to You?

The faster technologies evolve, the more overwhelmed we become with acronyms and technology terms we can hardly understand and pronounce, let alone remember, evaluate and properly implement. CEBP is one of those terms that has been around for a while and is frequently part of UC discussions, but is still poorly understood.

My colleagues Melanie Turek and Robert Arnold took it upon themselves to take a closer look at current vendor CEBP strategies and assess the market potential for CEBP solutions. They defined CEBP as follows:

“Communications Enabled Business Processes (CEBP) connect people, processes and information with the objective of reducing inefficiencies within business processes. CEBP solutions automate and optimize business processes by bridging the silos that exist between various business applications, and between communications and business software. These connections make information from multiple sources accessible, manageable and actionable to users within the context of workflows. By embedding communications capabilities into business applications that are part of the workflow, CEBP automates the connection of people to processes and information. The embedded communications functionality empowers users to take action and make decisions based on information provided within the context of their business processes.

Communications integrated into business applications is not synonymous with CEBP. The former usually consists of click-to-communicate or displaying user presence/ availability status within an application (i.e., word processing, email, CRM, ERP, etc). Such applications are commonly utilized in ad-hoc, unstructured ways that lack the ability to create contextual links between business processes and communications. CEBP is also not the same as BPA, BPO, BPM, self service or outbound messaging. Rather, any and all of these can be incorporated as part of overall CEBP solutions which enhance well-defined, structured workflows by providing users with contextual access to communications and information.”    

However, as Rob points out in his blog post, “Our most immediate discovery was that CEBP continues to be ill-defined. In a sense the concept and terminology has become like UC, a catch-all marketing term that has been overly used and in many cases abused. It has become watered down to the extent that it now describes a very loose and broad array of solutions and capabilities.”

The key value of CEBP is in accelerating decision making, reducing human latency, increasing worker accountability, and meeting compliance regulations. Therefore, it is considered most appropriate for people-centric, heavily regulated industries such as healthcare, financial services, government and education.

However, to make CEBP most effective for their organization, businesses need to gain good visibility into their business processes and identify process bottlenecks and inefficiencies. Unfortunately, many businesses skip this very important step in assessing and deploying advanced technologies. In a recent conversation with Bill Vass, former CIO of Sun Microsystems, he shared the following:

“You need to spend a bit of time on the business architecture. I can’t tell you how many companies don’t understand it. I go to so many places, where I hear “Our IT systems don’t do what we need them to do”; and every time it turns out they have not taken the time to understand their business architecture and what their business is. So you start with the business architecture, and then you do a system architecture, and then you do a technical architecture. What most businesses try to do is jump right into the technical architecture, because that’s what they understand and they leave their business hanging around, and they claim their systems don’t do what they need them to do, and they are totally mis-communicating.”

Rob and Melanie identified some additional factors deterring CEBP adoption, such as the lack of formalized CEBP offerings and programs from the leading communications and collaboration vendors, complex marketing messaging, lack of interoperability and pre-built product integrations, and the need for extensive (and expensive) professional services.

Yet, they recommend that businesses leverage CEBP to gain a competitive edge. There is a significant opportunity for a first-mover advantage with CEBP, since few companies are doing it. Further, businesses need to think strategically when developing communications and IT investment plans and seek to improve internal communications and collaboration, employee productivity and efficiency, and customer relationships through investments in advanced communications and collaboration technologies.

Vendors are engaged in a more fierce competition than ever before. Customers can exploit this opportunity to require exceptional value for their money. They need to explore various packages and bundles that can provide them with a broad set of features and capabilities at a very reasonable cost. A free trial, a small-scale pilot, etc. could be helpful in making a final decision.

Businesses should look to their current providers first when investigating CEBP. Through the existing relationship the incumbent is likely to have greater insight into the customers business culture, cycles, processes, budgets, staffing resources as well as longer term plans with respect to communications and IT tools. Such a foundation can allow solutions to be planned, implemented and expanded/modified over time at a measured pace. Additionally, customers should request references of other businesses that have implemented CEBP solutions to address similar pain points. Certifications and qualifications for providers should also be checked out.

For further insight into CEBP strategies and solutions offered by Avaya, BT Global Services, IBM, Interactive Intelligence, and NEC Corporation of America, please check out our recent study titled: “CEBP Takes Shape to Address an Emerging Opportunity.”

Siemens Strikes a Partnership with Netlink

On September 2, 2009, Siemens Enterprise Communications Group (SEN Group) announced a partnership with Netlink, one of the fastest growing U.S.-based providers of IT solutions. As part of the arrangement, Netlink will acquire SEN Group’s product and service portfolio in 27 countries around the world.  The agreement is valued at €204 million ($308 million) and includes Netlink’s acquisition of SEN Group’s local assets in the following countries:  Estonia, Latvia, Lithuania, Finland, Sweden, Ukraine, Greece, Switzerland, Turkey, Ireland, Hungary, Bosnia, Bulgaria, Croatia, Slovakia, Slovenia, Serbia, Romania, Singapore, Malaysia, Thailand, Ecuador, Peru, Portugal, Venezuela, Chile and Canada.  

According to the press release “customers will enjoy full continuity of service while benefiting from the broader portfolio of capabilities that the relationship delivers”. The understanding is that SEN products will still be offered under the SEN brand, but Netlink will acquire any local SEN legal entities as well as all inventory, staff and other assets, and will take over the delivery of services for SEN’s products under its own (Netlink) brand. 

According to Ross Sedgewick, Director of Global Marketing for Siemens Enterprise Communications, the partnership is part of SEN’s global strategy of improving SEN’s market reach via channel partnerships and driving revenue growth while ensuring customers are served effectively.  

Most likely, SEN’s penetration in some of these markets has been less than satisfactory. Netlink’s market positioning and global structure are expected to enable it to more successfully market and support SEN’s products in these countries. Netlink’s existing product and service skills will be complemented by those of local SEN staff, thus ensuring a certain degree of business continuity. By partnering with a single entity, rather than multiple resellers, SEN expects to more cost-efficiently transfer the assets and also ensure that the selected partner will be more engaged and can fully develop the operations without worrying about competition. 

Ever since the Gores Group acquired 51% stake in SEN, the new entity has been committed to growth. Many analysts, including myself, believe that for Siemens to be able to get on a faster growth path, it needs to make some changes to its services strategy and grow its indirect channels. From that point of view, this partnership seems like a move in the right direction. As is seen from the list of countries included in this partnership, these are mostly emerging markets, many of them small countries. For a global vendor such markets typically present a challenge. Building local presence takes time and investment; yet, the return is limited and it’s difficult to gain economies of scale.  

For a vendor such as SEN seeking to grow in a down economy and in a consolidating market, it seems prudent to find a partner that can take over parts of the business that are not run as efficiently as desired. In the event that Netlink is indeed successful in growing the business in these 27 countries, SEN can expect to realize some benefits as follows: 

  • Grow its brand awareness and installed base in a number of currently under-penetrated countries
  • Grow product revenues
  • Retain some control over product and service delivery through a master partnership with a single, more engaged entity
  • Focus on primary target markets such as Germany (mature, yet key for SEN), USA (maybe its top growth objective), Brazil, China and some countries in Central Europe and APAC

The biggest disadvantage to SEN is the foregone opportunity to develop these operations on its own and generate greater revenues and margins, while retaining full control over its brand. Obviously, the worst outcome would involve Netlink failing completely in all these markets, which is somewhat unlikely since Netlink will have a vested interest to generate return on its investment. Further, Netlink is a fast-growing company with a structure and processes in place that make it a suitable master partner for a communications vendor such as SEN.

What should customers expect? There may be some bumps during the transition, but SEN products and related services will continue to be offered in these countries and, most likely, they will be marketed with renewed vigor and maybe even more consistency than before. There is always a chance that, in some countries, Netlink may be less successful than in others and maybe even less effective than SEN used to be. But I believe that Netlink is more likely to commit efforts and resources to develop the business. 

What could make Netlink more successful? Thorough knowledge of SEN’s product portfolio and a deep understanding of its overall market positioning in view of evolving market trends will be critical for its success. Marketing SEN’s solutions will have to take into account the communication vendor’ shifting focus towards delivering applications and services for comprehensive, end-to-end unified communications (UC) environments. Proper training of all local resources will be key in ensuring that they are prepared to address customer concerns both throughout the transition and going forward. Given its product portfolio (IT, business applications, etc.) and specific expertise, could Netlink be well positioned to develop CEBP solutions for business customers leveraging SEN communications technology? That could make a compelling value proposition if the technologies are in place and a strong marketing message is sent to the market.

Business Process Inefficiencies: Communication Technologies to the Rescue

On June 22, Interactive Intelligence launched Interaction Process Automation (IPA) – a communications-based process automation tool (see the press release here). It leverages Interactive Intelligence’s proven unified communications (UC) and contact center technologies as well as some document and workflow management capabilities originally developed by AcroSoft, acquired by Interactive Intelligence earlier this year (see announcement here).

What is IPA?

The following Interactive Intelligence UC platform capabilities have been incorporated in the new IPA solution:

  •  Contact center-style queuing and routing are used for accurate and flexible prioritization and distribution of process work.
  • Enterprise presence becomes “process presence,” indicating availability for a work assignment and speeding processing time.
  • Automated escalation functionality ensures that service level goals are met.
  • Recording becomes an essential part of compliance for business processes.
  • Real-time monitoring provides management visibility into every step of the work process.
  • End-to-end reporting delivers the ability to manage and measure each process attribute.
  • VoIP provides complete location-independence, enabling employees to participate in businesses processes from anywhere in the world.

With the IPA solution Interactive Intelligence offers a unique perspective on the use of communication technologies for automating business processes. While we have all, jointly and severally, managed to overhype unified communications before we could even define the concept properly, and have also coined the term communications-enabled business processes (CEBP) before any major examples were even commercially available, Interactive Intelligence has managed to identify an opportunity for UC and contact center technologies to provide tangible value to businesses suffering from inefficient business processes.

The Business Challenge

While manufacturing has been pretty much automated since the invention of the assembly line, business processes involving office workers are frequently pretty manual even though a lot of the information retrieval and input are handled using modern computing technologies. It is the hand-off of work items, tasks and responsibilities that is still quite manual (in the sense that it is initiated and handled by humans) and is therefore somewhat random and unpredictable and prone to latency and error.

Just picture a typical day in the life of an ordinary office worker and you will see that it is characterized by information and communications overload and demanding schedules and deadlines, and very much impacted by the efficiency and diligence (or lack thereof) of others. Frequently, the result is poor productivity, management and customer dissatisfaction, stress and, ultimately, a waste of revenue and individual financial reward (bonuses, etc.) opportunities.

Office Worker Inefficiencies

Office Worker Inefficiencies

There are multiple horizontal business processes – MIS support, new employee on-boarding, etc. – that are very repetitive and fairly simple and can be significantly facilitated and accelerated through some degree of automation. There are also vertical-specific processes such insurance claims, loan applications, etc. that also involve repetitive activities and a hand-off among multiple individuals that make them suitable targets for automation.

A Creative Solution

One of the few office worker processes that has been decently automated is customer care. From the ever-annoying interactive voice response systems (IVRs), which, however, provide some real value to the company, to call queuing and automatic call distribution (ACD), to intelligent call routing, to computer-telephony integration (CTI), to call monitoring and recording, communication technologies have enabled contact centers to make customer care at least somewhat reliable and predictable. These technologies ensure that a customer call reaches the right person (based on skills, time zone, availability, etc.), that the caller receives some preliminary information from the IVR, and that the call center agent receives as much information as possible about the caller.

Interactive Intelligence seems to have found an interesting approach in the application of contact center technologies and UC (mostly presence) for the automation of business processes beyond the contact center. The IPA solution seems well positioned to provide significant value to businesses of multiple verticals facing various inefficiencies. It is, however, mostly a framework and requires quite a bit of customization for each application. If Interactive Intelligence manages to identify the pain points of each vertical and also create an eco-system of application developers that can freely design and test (in a “sandbox”-type environment) easily deployable solution modules and prepackaged applications for different business processes, this solution can help many businesses recover more rapidly from the economic downturn that entailed pervasive workforce reduction and probably left many businesses unable to grow or even satisfy existing customer demand.

Conclusion

Let’s not forget that any business is as strong as its weakest link, which is its most inefficient process. Therefore, each business should take a long and hard look at where latencies and errors occur most frequently and whether certain tasks or activities can be automated for greater efficiency and productivity. After all, our business processes determine our competitiveness and ability to grow – by either improving the productivity and quality of output of existing resources or re-purposing resources for more efficient resource utilization.

Business decision makers should, however, apply a structured approach to business process automation. First they need to map their processes, separate the critical from the non-critical ones, identify the resources involved and the major stages in each process, etc. Then they need to find the weak links and set their improvement objectives in terms of specific return on investment (ROI) and measures of performance (MOPs). Finally, they need to carefully evaluate existing (deployed and those available on the market) technologies and solutions in order to select the one(s) that best addresses their needs.

For more information on the IPA solution and business process automation, please join us for this webinar on June 25, 2009.

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