Workforce Management Moves To the Cloud

The adoption of cloud-based software has been steadily increasing for several years, led by such companies as Workday and Salesforce, which already has more than 100,000 customers.

According to a CRN survey, SMB spending on cloud computing will reach $100 billion by 2014. Other companies from Gartner to Merrill Lynch report similar findings, though the numbers vary by a billion one way or another. What is clear is that the market for a cloud infrastructure for applications like workforce management (WFM) is already large and still growing quickly.

Why? There are a number of reasons, starting with cost savings. By handling WFM in the cloud a call center doesn’t have to budget for the purchase of hardware, software, database or data center infrastructure.

There are also advantages in ease of use, deployment and ROI. The WFM application can be accessed anywhere at any time via the Internet. A lower investment means a more rapid return on the investment made in the cloud application, and updates and upgrades can be delivered automatically as they become available. For more details, please read our Workforce Management in the Cloud whitepaper.

As with any other business, call centers are discouraged from having all of their system data housed in one physical location. But with cloud computing, there is never a question of redundancy if a server breaks down or become overloaded. There are environmental benefits as well, as information is stored in a climate that minimizes energy usage. And because servers can be shared in a virtual environment, the result is fewer servers and a reduction in the power required to operate and cool them.

Are there any drawbacks to moving your workforce management to the cloud? The one cited by some industry professionals is security. So when choosing a WFM solution, this is the area to focus your questions on – what are the company’s security standards, and what certifications has the application received? If the appropriate testing and network/application/data security is in place, your call center should enjoy the benefits of cloud-based workforce management software without any heightened risk of a breach. 

What is cloud-based workforce management software?

Cloud computing is a web-based delivery model that enables users to connect with applications on-demand from any computer with Internet access. A cloud-based workforce management solution provides the highest ROI and savings of any WFM strategy due to its low upfront investment and low operating costs. Cloud-based WFM software puts call centers in unprecedented control, enabling dramatic cost savings and making scheduling far more efficient. Compared with traditional workforce management software, a cloud-based WFM solution allows companies to:

• Reduce upfront costs: Eliminate the significant investment just to get started. From purchasing hardware, databases, and software licenses to the high costs of installation and IT staff to support the system, the traditional model simply doesn’t make sense. In stark contrast, cloud-based workforce scheduling software saves both time and money because there are no infrastructure costs.

• Get started faster: Rather than having to ramp-up to a six- to twelve-month (or more) implementation, WFM solutions enable companies to start managing their workforce in the cloud within a matter of weeks. And, since the solution is web-based, integrating the software with existing systems reduces time and costs.

• Connect anywhere:  The software is hosted by the workforce management firm so companies can access the software anywhere—whether on the other side of town or the other side of the world. All they need is a computer and a standard web browser.

• Minimize ongoing costs: Cloud-based WFM software doesn’t just save money during the implementation phase. Companies save time and money in the long-term as well. The WFM firm supports all maintenance of the system, including free software upgrades and troubleshooting. Companies also benefit from the ability to quickly customize or add modules via a single, web-based interface.

• Pay-as-you-go: One of the most attractive features of the solution is the pricing model. Companies only pay for the capacity and infrastructure that are actually used, typically based on number of users. This usage-based, pay-as-you-go subscription pricing approach not only saves businesses money,  Web-based workforce scheduling software also enables them to quickly scale to manage the demands of changing call center sizes.

Cloud-based WFM software lowers the initial infrastructure costs and ongoing maintenance costs of traditional WFM software. This on-the-fly WFM solution also gives call center managers the tools to schedule the right number of agents at the right skill level at the right time, increase overall schedule adherence, boost service levels, and improve both agent and customer satisfaction. To learn more about this topic, please download our What is cloud-based Workforce Management whitepaper.

What is unified workforce optimization for call centers?

In the last few weeks, we did several webinars about unified workforce optimization in the cloud. We talked about the need for a unified WFO solution and also demonstrated our new offering Monet WFO Live. We received tremendous interest and we would like to thank all who joined us. We are planning to do a few more webinars in January, please stay tuned. Here are some highlights from the webinar:

• Most of the organizations have several different functions and technologies that they would ideally like to work together, so they can balance customer satisfaction and revenue, with the cost of customer service. Typically one group focuses on scheduling and deploying staff, and one focuses on recording and measuring performance. There are also people who analyze and investigate opportunities for change, closing skill gaps and establish goals to measure against.

• As much as we may want these people to work together, today they are forced to make isolated decisions and often act independently because they have limited access to information outside of their area or function. They don’t have visibility into or it takes too long to get to key pieces of information, leaving them to make decisions too slowly and in silos.

• We believe a large part of the problem is that they don’t have access to a unified integrated technology supporting these groups to help bring them together.  They need immediate access to information traditionally found in other areas and they need information automatically passed to them to eliminate slow, error-ridden manual processes.

• With a unified WFO solution you get unique business integrations that can let your organization make faster, more informed decisions with a new level of visibility into workforce performance, customer service processes and customer intelligence across the enterprise.  You can quickly get to the right information to drive a new level of performance improvement.

• Through these integrations users can drill to information traditionally found in other applications and information can be automatically passed between functions to eliminate manual processes.

• In addition, you get a single workforce optimization framework that brings these functions together with features like a single graphical user interface and central administration. Having a single graphical user interface let’s people easily navigate in areas that they don’t spend a lot of time in. 

If you don't want to wait for the next webinar, you can read more about workforce optimization on our website or you can read an article about WFO in the Customer Interaction Magazine.

What to look for when buying hosted or cloud-based workforce management software

In addition to the core questions regarding functionality and capabilities that address your unique business needs, there are a few additional questions that need to get evaluated especially for hosted and cloud-based solutions. Here are the questions to consider:

The difference between hosted and cloud-based workforce management software
In our last blog post we have clarified the difference between "hosted" and "cloud-based" workforce management software.It is important to understand the difference and the implication on costs, usage and overall risk.

All inclusive pricing (maintenance, support and upgrade)
When comparing offerings, it is key to evaluate costs and pricing for the overall software application life-cycle, such as, purchase, installation, set up, training, maintenance, support, and upgrade.

• Are there any initial costs for set up, training, etc.?
• How high are the monthly/yearly subscription fees for usage?
• Are there any additional maintenance fees?
• Are there any additional customer support fees
• Are there any additional upgrade fees for new versions
• Are there any other fee for additional storage, higher performance, etc.

Integration to other call center software systems
Just as the ACD/PBX systems should be integrated to workforce management software to achieve better forecasting and real-time schedule adherence, it is important to look at other integration points. For example, an integrated workforce optimization solution connects all aspects of scheduling, skills, call quality, metrics and compliance to better meet customer needs and deliver more effective customer service. You can easily identify patterns and analyze metrics at various levels for training and quality assurance purposes and establish quality standards and best practices. In addition, you can combine quantitative and qualitative information for a complete assessment of contact center performance. Only an integrated WFO suite allows you to “connect the dots” to get the whole picture that allows you to impact the bottom line. And today's cloud-based solution make it often more easy to integrate or even offer the integration "out of the box".

Hosted Workforce Management Software versus Cloud: What's the difference?

As many companies have discovered in recent years, the Cloud-based model of delivery has numerous advantages over the traditional hosted models of the past. Both offerings are often confused with each other but, not addressing the fundamental differences, have a huge impact on your call center business.

The traditional hosted model is simply hosting a client server or web application on a set of servers at the vendor’s site or computer center. The vendor then provides an application that was not originally designed to be delivered over the web, with a few changes, and delivers it to each customer via a single, dedicated server. It lacks a multi-tenant architecture and requires separate servers and installations for each customer. Much more costly and less scalable, it also requires support for multiple releases, which is very resource intensive. Typically, vendors who sell on-premise software may also offer a hosted model for on-demand options and sometimes call it "cloud-based".

The Cloud-based model uses a totally new multi-tenant architecture that was designed to efficiently and securely deliver web-based applications at the lowest possible cost. It focuses on fast set up, low operating costs through shared services, highest security for web-based deployment and high performance and scalability through instant and seamless scaling of computer resources (also called “elastic cloud computing”). This ensures available computing capacity when you need it and only when you need it, at the lowest possible cost.

Why should a customer care about the difference? Simply because cloud-based workforce management software offers many advantages:

• Low cost and fast implementation
• Multi-tenant architecture with “elastic cloud computing” platform for maximum scalability
• Architected and optimized for web based security model
• Automated upgrade procedures
• New web based interface with focus on ease of use without training

7 Reasons for Call Center Forecasting and Scheduling in the Cloud

Almost everyday, you can read analyst reports and magazine articles about the adoption of cloud-based solution in all areas of business, including call center forecasting and scheduling. Here are 7 reasons why companies move to the cloud:

1. Easier to use: Cloud-based solutions are designed to be easy to use for fast adoption, without a lot of training. Think ROI!
2. Lower investment: Traditional software requires a substantial upfront investment for software licenses, hardware and additional software. The cloud model eliminates that.
3. Faster implementation: Have you experienced long and painful software implementation projects? Cloud-based software has changed this. Instant account creation and easy configuration and self-service makes it possible to roll-out and use solutions in weeks.
4. Less maintenance: The IT team in your company has to make sure that the software is working, servers are running, do back-ups, etc. Again, with cloud, this is all done by the solution provider.
5. Always newest version: Do you use an older software version simply because it is too expensive or too painful to upgrade? Typically, cloud solutions automatically deploy new features and versions. Customer can easily take advantage of new functionality.
6. Access from anywhere: Do you have call centers at multiple locations and a pool of flexible home agents? Providing a consistent infrastructure is a challenge. Cloud computing delivers “software” over the Internet - it's easier to deploy, more consistent and easier to use and support.
7. More flexibility and scalability: As you grow your call center and as your needs change, it is often easier to add functionality, capacity and additional modules using the cloud model.  

Bottom line: Lower cost, lower risk and faster adoption are convincing more and more call centers to "go cloud". To learn more, please watch a demo of cloud-based call center scheduling.

Workforce management and optimization in the cloud

The Cloud-based model for workforce management software uses a new multi-tenant and scalable architecture that was designed to efficiently and securely deliver web-based applications at the lowest possible cost. It focuses on fast set up, low operating costs through shared services, high security for web-based deployment and high performance and scalability through instant and seamless scaling of computer resources (also called "elastic cloud computing"). 

• Lower operating costs: With the Cloud provider managing the IT infrastructure, costs are lowered by securely sharing IT infrastructure and resources, avoiding "hidden costs" for hardware replacements, upgrades, and IT operation resources that are typical for premise-based software.
• Ease of use: The new web-based user interface of Cloud-computing solutions focus strongly on usability, ensuring an easy to use software. This helps to drive fast user adoption within your organization.

For more information, please download our cloud-based workforce management whitepaper.

Apple iCloud surges past 100 million users. Lessons for call center software.

A recent article in Forbes reports about the tremendous growth of Apple's iCloud. Here is a quote from the article: "That’s 100 million iCloud users in four months, or about 25 million per month—and that’s coming awfully close to 1 million new iClouders every single day". Well, that kind of user adoption is only possible through cloud-computing and its unique characteristics:

• Easy to use (obvious, self-service)
  
• Scalability (storage and performance)
  
• Instant set up of an account (no software, not hardware to install)
  
• Low cost (subscription based or even free)
• Low risk (if you don't like it you can turn it off without a big upfront investment)
  

The same principles are true for enterprise software in the cloud. If you are in the process of selecting new call center software or are not getting the value you expected from your current software - think about how the cloud-based model could be the right alternative for your call center.

Call Center Scheduling in the Cloud: It's No Longer "If", It is "When"

In 2012, "cloud computing" will continue to move full steam ahead. More and more call center software solutions such as CRM, PBX/ACD, and workforce management are delivered through the cloud, and call centers are adopting these solutions. And here are a few compelling reasons why companies move to the cloud:

• Ease of use: Have you experienced enterprise software that gets hardly used or not used at all, because it is too difficult to learn/use? Think about ROI?! In comparison, cloud-based solutions are designed to be easy to use for fast adoption, without a lot of training.
  
• Low investment: Traditional software requires a substantial upfront investment for software licenses, hardware and additional software. The cloud model eliminates or dramatically reduces that investment (and the the associated risk) and is typically based on a monthly subscription (pay-as-you-go model).
  
• Fast implementation: Over the years, many companies experienced long and painful software implementation projects. Often, the business requirements have changed before the software was rolled out to the user community. Cloud again, has changed this paradigm. Web- based applications with instant account creation and easy configuration and self-service makes it possible to roll-out and use solutions in weeks.
  
• No maintenance: Somebody in your company has to make sure that the software is working, servers are running, do back-ups, etc. - that requires resources and money. Again, with cloud, this is all done by the solution provider.
  
• Always latest version: There are probably many companies out there that use an older software version simply because it is too expensive or too painful to upgrade to the latest version. Typically, cloud solutions automatically deploy new features and versions to their customers with minimal or no downtime. Customer can easily take advantage of new functionality.
• Virtual call centers: Today, many call centers have multiple locations around the world and a higher percentage of flexible home agents. Providing a consistent infrastructure to all agents and centers is a challenge. Cloud computing helps deliver call center software to every agent over the Internet - it's easier to deploy, more consistent and typically easier to use and support.

And there is one more reason for increased interest in cloud-based offerings. Many cloud solutions offer a trial, so you can check out and evaluate the solution before you commit. That's something traditional on-premise software usually cannot provide.

ROI of Workforce Management Software in the Call Center

If you are in the process of selecting a workforce management solution for your call center, you might be interested in learning about the key ROI (return on investment) drivers.

• Time savings in forecasting and scheduling activities leaves more time for supervisors and managers to coach and train their teams
• More accurate forecasting and scheduling helps avoid over- and understaffing - resulting in improved service levels and reduced payroll costs. Better schedules also lower the cost of turn-over due to higher agent motivation and avoidance of burn-out.
  
• Improved schedule adherence improves call center productivity and helps achieve or exceed your service level goals.
• Dependent on the type of call center, the above productivity gains could also lead to increased revenues (= agent have more time for selling).
  

In addition to the WFM solution capabilities that reduce cost, save time or increase revenues, the overall ROI is also driven by other factors such as:

• Ease of use and user adoption: If people don't use it you won't get the benefits of the solution.
• Investment: The ROI is higher the greater the benefits and the lower the costs are. Therefore, the ROI is also driven by the amount of the upfront investment for the software and the implementation. Traditional on-premise software is typically characterized by a large upfront investment. In comparison, cloud based solutions have no and very low up-front costs, helping to get to an ROI faster, typically in months, versus years.

It is important to include all aspects into the ROI calculation when making a decision.

What is Cloud Computing?

Everybody talks about cloud computing, but do you really know what it is, how it works, if it might be something for your business and how it could benefit your call center. There is a great video on YouTube that explains What is Cloud Computing - posted by Salesforce.com. Obviously, this video focuses on CRM, however, the principles are the same for call center software such as workforce management and scheduling.

Call Center in the Cloud: Is it cheaper and simpler?

In a recent article in InformationWeek "Call Center in the Cloud: Cheaper and Simpler" there are some interesting customer case studies, interviews and research that summarize the key benefits of cloud computing in the call center. Some highlights from the article:

• Call centers convert on-premise IT systems to cloud-based systems for flexibility, scalability, ease-of-use and substantially lower cost.
• They need to scale up and down and want to unify service across multiple sites
• Besides relieving contact center operators of IT maintenance, they also avoid the capital expense of IT hardware
• Cloud-based call centers can save large enterprises as much as 50% compared to on-premise systems

The article also contains some research by Frost & Sullivan. Please click here to get to the article.

Apple's iCloud announcement - what are call center managers waiting for?

With Apple's iCloud announcement, cloud computing is really going mainstream. Reading the iCloud announcement makes it so obvious that cloud computing is the future in the connected world. Cloud computing is easier to integrate (any device) and it's easier to scale (almost unlimited storage and performance), it's easier to set up (just turn it on) and it is lower cost (shared infrastructure) . In a recent post we compared workforce management software in the cloud versus on-premise. Here are some additional considerations regarding call center software in the cloud:

1. If your call center uses spreadsheets or other manual means for forecasting/scheduling:

• The increasing complexity of call centers makes it more difficult to efficiently manage forecasting, scheduling and adherence using traditional ways - see recent post about call center shrinkage.
  
• Typically, the monthly savings of using a cloud based WFM solution are higher than the cost of the solution, so you should save money from the get go.
  
• In addition, you can improve service levels and other key call center performance indicators by using a more robust and flexible scheduling solution, compared to spreadsheets.
  

2. If your call center uses on-premise WFM software:

• Traditional WFM software is often complicated to use and therefore does not get fully leveraged, meaning you are not getting all the benefits from the software to realize cost savings and performance improvements.
  
• Calculate what you pay for yearly maintenance of your WFM software, including the internal costs of operating/upgrading servers. Just these costs can be higher than the monthly fee for an all inclusive WFM in the cloud offering.

There are many reasons to switch to the cloud. We hope we inspired you to think about it.

Call center workforce management software in the cloud

In case you have missed our "cloud-based WFM" webinar, we have posted a short version as a video "Advantages of call center workforce management in the cloud" on YouTube. Learn about the key advantages of a cloud-based workforce management solution for call centers and how it compares to traditional, on-premise workforce management software.

Misconceptions about hosted call center solutions

A recent paper by the research firm DMG Consulting discusses five top misconceptions about hosted call center solutions. We would like to add to this from the “cloud computing” perspective. So, here are the misconceptions and our comments:

It's only for small contact centers: Actually, with the cloud based approach it is easy to scale and address the needs of larger centers and/or larger organizations. The required computing power can easily grow (and shrink) based on the customer needs – this is called “elastic computing”. There are many cloud computing companies (e.g. salesforce.com) that successfully provide cloud solutions to very large enterprises.

Limited functionality: Since many cloud based solution are already in the 2nd or 3rd version, they offer very rich functionality. Often, they are easier to use and provide an fast way to add new features through automated upgrades.

Not flexible and customizable: Cloud computing solution were designed with lots of users and different customer needs in mind. Therefore, they have a more flexible architecture and often allow customization and configuration without programming.

Implementations and integrations are more difficult than premise-based initiatives. Cloud based solution have a more flexible architecture and they were designed with “inter-connectivity” in mind, knowing that “island” solutions won’t be successful.

Hosting has a higher total cost of ownership than premise-based solutions: If you do a "total cost of ownership" comparison, the cloud based solutions have a clear advantage. In addition to avoiding the overall investment risk of a large upfront capital expenditure, there are costs that are often hidden, sich as: upgrades, hardware, ongoing operation, additional software (database, etc.), backup solutions, and IT staffing.

Cloud versus On-Premise WFM Software - Part 2

Last week we posted the first part of our article cloud versus on-premise workforce management software - here is the second part.

5. Software upgrades
Cloud: Painless and automated upgrade procedures ensure that customers are always on the latest version. Upgrades and new features are made available on an on-going basis, typically at no cost.
On Premise: Manual upgrade processes often get postponed (or avoided) by the customers due to the effort and costs. New features won’t be available to users.

6. Implementation success
Cloud: Typically, a cloud based vendor has a bigger financial incentive to make customers successful, solve issues and maintain them as a long term customer (subscription model).
On Premise: The on-premise software model is characterized by a high upfront license fees as key motivator, and potentially a lower financial motivation to make the solution work as fast as possible.

7. Usability
Cloud: New web-based user interface often have a stonger focus on usability and ease of use, similar to consumer based web applications such as amazon.com or ebay.com.
On Premise: Traditionally, older client-server software were not always optimized for usability, making it more difficult for the user to take advantage of the software features.

8. Investment risk
Cloud: Lower risk - if a customer is not satisfied with the solution they might be able to cancel the agreement or switch to another vendor.
On Premise: Typically, higher risk due to upfront investment. The associated "switching" costs are higher in case the software doesn't meet the needs of the customer.

Cloud versus On-Premise WFM Software - Part 1

More and more companies discover that the "Cloud" or "SaaS" (Software-as-a-Service) based model has advantages over the traditional premise-based solutions. The following two part blog post compares the two models in more detail and illustrates how the differences can impact the cost, implementation, usage and success of the Workforce Management solution in your organization.

1. Set up and implementation
Cloud: Typically faster set up by simply creating a new customer account, loading of data and system configuration that only takes days or weeks.
On Premise: Installation of hard- and software that can take several months to purchase, install and configure.

2. Upfront costs
Cloud: No upfront investment for software and hardware - offered through a monthly subscription fee that typically includes training, support, maintenance and upgrades.
On Premise: Large upfront investment - purchase of hardware and software, cost for installation, configuration and implementation by IT consultants. Can add up to a 5 or 6 digit capital expenditure.

3. Operating costs
Cloud: Lower operating costs through shared services infrastructure, dramatically reduces the cost for the individual customer.
On Premise: Costs for running your own server operation, including back ups, maintenance, upgrades and hardware replacement that is often not accounted for.

4. Scalability and performance
Cloud: High scalability through multi-tenant architecture and "elastic cloud computing" platform that allows for maximum scalability of data-intensive scheduling scenarios.
On Premise: Scalability limited through server installed and operated by customer.

Please stay tuned for part 2 of this comparison.

Advantages of cloud-based workforce management software

We often get asked about the difference between cloud-based, web-based, hosted and SaaS-based workforce management software and how it compares to the on-premise software model. In order to provide some guidance on this, we decided to offer a webinar about this topic: The 5 Advantages of Cloud-based Workforce Management Software. If you are interested in more details or have any questions please let us know or register for the webinar, which will be held on Wednesday, March 17 at 9 a.m. PST.