Cloud Computing – Where does IVR fit in?

Posted on May 3, 2011 by admin

The buzz and discussion around cloud computing continues to heat up and generate ever increasing levels of interest. It seems there are as many definitions of cloud computing as there are vendors offering their services in the “Cloud”. In order for a company to take advantage of the many offerings, it makes sense to understand the fundamental components that make up the “Cloud”. So we thought it might make sense to take a step back and look at the basics of cloud computing.

The National Institute of Standards and Technology (www.nist.org) provides a comprehensive definition of Cloud Computing. It can be summarized as:

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.

The definition goes further indicating this cloud model promotes availability and is composed of five essential characteristics:

1 – On-demand self-service,

2 – Broad network access,

3 – Resource pooling,

4 – Rapid elasticity, and

5 – Measured Service

And finally there are three service models to this definition:

1 – Cloud Software as a Service (SaaS),

2 – Cloud Platform as a Service (PaaS), and

3 – Cloud Infrastructure as a Service (IaaS)

We will focus on the Software as a Service (SaaS) since it is the model level IVR services are offered.

The original concept of SaaS can actually be traced back to the early IBM mainframe days where the concept of time-sharing first developed. Obviously a major difference between time-sharing and SaaS is that the service was delivered primarily through hardwired connections as the internet did not exist at that time. With the internet expanding in the 1990s, another acronym came into being, the ASP (Application Service Provider). Centralized computing resources were utilized to provide software hosting services of specialized software applications. The intent of this service was to reduce the overall cost through centralized administration of hardware and software systems. SaaS is an extension of this original ASP model.

The SaaS acronym is said to have first appeared in an article called “Strategic Backgrounder: Software as a Service”, published in February 2001 by the Software & Information Industry’s (SIIA) eBusiness Division. ¹

However you wish to define it; IVR Hosted Services or IVR as a SaaS, IVR functionality is a great application to deploy to the Cloud. Why?

First, one of the key benefits of a SaaS model is to provide services in a “one to many” model. That is a single or central service providing services to many end-users. IVR applications have a long history of doing just that even when not deployed in a hosted services or SaaS model.

Second, IVR systems are well suited to a centralized support environment for software upgrades, hardware upgrades, operating system upgrades, and specialized system software upgrades. In many cases, IVR systems deployed in a SaaS model will bring upgraded and improved system features before many users could afford it if they had purchased the equipment directly. In effect they benefit from piggybacking on the requirements of other customers whose needs drive the necessity for improved or enhanced features more rapidly.

Third, IVR application development requires very specialized development skills. These specialized skills apply not only in the application coding effort, but also in the area of requirements analysis, call flow development, vocal user interface (VUI) development, specialized stress or load testing, and post implementation application tuning. Due to the nature of most IVR applications, these skills are not typically needed throughout the enterprise once the application(s) have been deployed, and therefore are expensive resources to keep on hand if not utilized fully.

Fourth, some applications are only needed for a short time or when demand spikes significantly. A few examples include specialized surveys, special event announcements, temporary emergency service offerings, new product support efforts, seasonal surveys, or service outage coverage. The need for speed of rapid development and deployment most often exceed the capabilities of I.T. development staff members who do not specialize in IVR application development.

Fifth, is scalability and elasticity. Sometimes demand for a service exceeds expectations and let’s hope that is a good thing. Not being able to respond quickly enough can be a bad thing. Being able to scale capacity up or down based on demand while only paying for actual needed capacity is a powerful benefit. With few exceptions, accurately predicting demand, ordering needed additional equipment, increasing network capacity, and installing and testing the application(s) rarely take place in a scheduled or orderly manner if increasing demand is stressing the organization.

And finally, the cost of incremental capital equipment comes into play. In some cases the need to scale a system may only be marginally greater than existing installed equipment. However, it is not always possible to scale a system to just the level desired, and you can be forced to scale a system based on minimum equipment upgrade paths. That can be hampered further if you have an older installed system with an application that works well, but the IVR vendor no longer supports an upgrade path for your existing system.

IVR is a proven and powerful tool in increasing customer support functions, enhancing call center operations, and providing quick and easy retrieval of highly repetitive or common information retrieval tasks. Deploying IVR systems in a Saas or Hosted Services model is another step in the evolution of increasing the ROI on IVR usage and allowing greater flexibility for the users of IVR applications

¹– “Software as a Service Strategic Backgrounder” , Software and Industry Information Association, Washington, D.C. February, 2001

IVR Extended Life Maintenance

Posted on April 27, 2011 by admin

A challenge faced by almost every customer with IVR equipment is system obsolescence. Servicing the IVR industry since 1993, we have seen our fair share of client companies looking for effective ways to minimize the operational and financial impact of equipment obsolescence.

Typically, IVR system obsolescence occurs in four primary areas:

Operating System
System software
Hardware
Security

Notice anything really important missing? How about Application Obsolescence?

Our experience has shown (with few exceptions) that application obsolescence alone rarely drives the need for new equipment purchases. So if the application seems to work great and last a long time, what options exist to extend the life of an IVR system when the original system vendor no longer provides hardware or systems support?

You basically have three choices:

1. Buy new equipment. The system vendor will love you, but it’s really not the solution you were looking for.
2. Move to an IVR hosted service / cloud computing service provider like Acclaim Telecom.
3. Engage a 3rd party firm, such as Acclaim Telecom with expertise extending the hardware and systems software for IVR systems.

Over the years our clients have expressed the following reasons for considering the decision to choose extended life maintenance support for older IVR systems:

1. Current system(s) are performing well and the customer wishes to maximize the value of their investment for many more years.
2. Preservation of (potentially scarce) capital $$ for other more pressing corporate needs.
3. Customer is trimming expenses.
4. Manufacturer has discontinued hardware, software or operating system support for their installed equipment.
5. Manufacturer’s upgrade path is very expensive and the customer is looking for alternatives.
6. Customer is moving to a new IVR manufacturer’s system and needs short-term support on the current system.
7. Customer is considering moving to a hosted solution and wants to continue to run their existing applications until the migration is complete.

So how do you determine if the choice of IVR extended hardware maintenance is a viable option? In most cases it is a straightforward process.

If the hardware is stable, the existing or new application needs do not require the latest and greatest features of new IVR capabilities, and the operating system can be upgraded to accommodate the corporate IT security requirements, you are probably a good candidate. If you would like to learn more about our IVR Extended Maintenance Services or discuss your specific need, we would be happy to share our experiences with you. Give us a call at 1-866-324-6416 or email us at atsi_ sales@acclaimtelecom.com.

How Much Do Customer Relationships Matter?

Posted on March 11, 2011 by admin

Take a look around — from Internet shopping, to ATM banking, to self-service checkouts at the grocery store, to self-service check-ins at the airport, customers are taking care of themselves in more and more parts of life. A big part of this comes from the fact that automation is often cheaper for companies, sure. But it’s also simply preferred by customers in many situations, which makes telecom solutions like our hosted IVR applications smart, satisfying investments for both companies and customers.

In fact, studies are beginning to show that many companies have overestimated how much of a relationship their customers expect from them.

This “less-is-more: trend might seem counterintuitive for businesses that have invested heavily in manned customer service. So exactly what kind of relationship do customers want from companies? How important is customer service to loyalty?

The Harvard Business Review (HBR) and the Customer Contact Council have been exploring exactly those questions, and have come up with two conclusions relevant to your approach to IVR:

1. Customers reward competency more than attention.

Sure, a charming, top-notch sales representative might make a unique connection with a caller and leave a warm, lasting impression that makes the customers more likely to return in the future. But more likely is that a customer will punish a company for poor customer service, making the uncertainty and inconsistency of non-automated customer service a risky venture.

According to HBR:
Consumers’ impulse to punish bad service—at least more readily than to reward delightful service—plays out dramatically in both phone-based and self-service interactions, which are most companies’ largest customer service channels. In those settings, our research shows, loyalty has a lot more to do with how well companies deliver on their basic, even plain-vanilla promises than on how dazzling the service experience might be.

With IVR systems, you can invest in an intuitive, effective system that’s not reliant upon a customer service employee performing at a high level from call to call to call.

2. Customers want you to make things easy for them

More than anything else, people really just want their problems solved, whether its via a friendly person on the other end of the line, or an automated application that’s been tested and tested to make sure it’s clear, informative, and capable of providing solutions. (No offense to the lonely souls out there really just calling your customer service reps looking for a little bit of conversation.)

In many ways, IVR can do that job better than a human rep. An effective IVR application includes:

Less room for misunderstanding and miscommunication.
Less stress for the caller having to accurately communicate their problems and needs.
Less social pressure for the caller to be friendly and cordial, and to “connect” in a way a human rep might try to with them.
Less dependency on consistent customer service from a representative, who’s prone to fatigue, mistakes, and irritability.
More ability to test and retest the application for thorough effectiveness.

And, of course, you can always include an easy opt-out option that lets confused callers seek help from a human representative.

At Acclaim Telecom, our IVR hosted services include comprehensive turnkey development, deployment, and support for your IVR needs. We’ll help you develop a system that saves you customer service costs, and saves your customers the stress of not getting what they need.

Old Lesson, Eternal Value

Posted on December 3, 2010 by admin

A few weeks ago I had an unexpected, but pleasant experience in creating customer loyalty. In fact, I had the good fortune to experience this twice in just a few short weeks. And it was a great feeling. Interestingly enough, the experience was not due to any technological advancement that took the user experience to an all time high. The experience was due to service delivered for car repairs of all things. But the lesson in customer service is universal in its application, especially for companies relying on technology to help support their customer service efforts.

The first occurred when my wife took her car to a small yet established auto repair shop, Euro Connection in Dallas. A turn signal lamp had burned out, and due to the make of car I was not able to easily perform my shade tree mechanic repairs I like to do. The dealership wanted $65 to change the bulb (almost all labor). So off to the independent shop she went. The owner Nino Papadopoulos said he would fix it while she waited, and so she did. But when all was said and done, he would not take any money for his efforts, not even for the cost of the bulb! “No big deal” he said “it’s only a light bulb.” You can bet I will remember him the next time I need auto repairs.

The second came a few weeks later when a neighbor accidentally backed into my son’s parked car. Big Ford Expedition, meet little Honda Civic. Round one goes to the Ford with Honda being the loser. With 120,000 miles on the Honda, there were already a number of dents and dings in other areas we had decided not to fix, even though the car was in great mechanical shape. Estimated cost to repair the accident damage; $1900. With damage appraisal in hand (and insurance company check), off we went to another local independent repair shop, Orbit Automotive owned by Curtis McCarty in Dallas. No problem, they will take care of it. They also cut me a deal to repair the other areas of damage at a reduced personal cost since those repairs were not part of the accident. It was only a couple of hundred dollars additional.

One week later we pick up the Honda, looking better than when we bought it. And when it came time to pay for the extra repairs, the owner would not take the additional money. “Don’t worry about it”, he said. While I hope to never need his fine body repair services in the future, you can safely bet they will be the first I call if necessary.

One act of customer service was rather small, the other slightly bigger. Yet each significantly impressed me.

Neither required Herculean effort on their part, but the undeniable theme was to do a little extra for the customer. As a company providing IVR hosted services and mobile solutions we constantly ask ourselves what can we do to improve our customer’s satisfaction. And in many cases it really comes down to the small items. A tweak to a custom report, a referral to another company for a need outside our core competencies, or just a suggestion on how to improve a speech recognition application based on work performed for another client.

Sometimes these small acts have as much impact as a large-scale effort or even a business concession. Typically selfless acts, no matter how small, almost always pay dividends going forward.