Strategic Information Management phần 10 pot

Information Technology and Customer Service 559 as the electronic economy makes such customer support levels more the rule than the exception. The customer support challenge at Storage Dimensions Storage Dimensions is a vendor of high-availability disk and tape storage for client/server environments. It was founded in 1985 in the heart of Silicon Valley in Milpitas, California, and went public in March 1997. Its 1996 sales were $72 million. The company designs, manufactures, markets, and support hardware/software products that provide open systems storage solutions for mission-critical enterprise applications. Its high-end storage solutions are targeted to organizations with enterprise-wide client/server networks that must keep mission-critical data protected and available 24 hours a day. The company’s customer base is mainly Fortune 1000 companies in information- intensive industries that live and die by their data. These include airlines, banking, finance, insurance, retail, utilities, and government agencies. Storage Dimensions products are sold through distributors and resellers in the USA, Europe, and the Pacific Rim. The company also has a direct sales force to more effectively serve its key vertical market customers. More detailed Figure 19.1 Rising customer support levels for complex products 560 Strategic Information Management information about the company and its products can be found at www.storagedimensions.com. Storage Dimensions’ products fall into three main categories: high- availability RAID disk storage systems, high capacity tape backup systems, and network storage management software for multi-server networks. RAID (Redundant Array of Independent Disks) is a fault-tolerant disk subsystem architecture that provides protection against data loss and system interruption and also provides improved data transfer/access rates for large databases. This protection ranges from simply mirroring data on duplicate drives to breaking data into pieces and ‘striping’ it across an array of three or more disks; if one drive goes down, the controller instantly reconstructs the lost data and rebuilds it on a spare drive. Other features include a combination of redundant hot- swap hot-spare power supplies, fans, and disk drive components to ensure non-stop operation and continuous access to data. Following a 1992 buyout from Maxtor, company management refocused Storage Dimensions to become a higher-end and faster-response industry player. It was clear that exceptional customer support would be essential to success, and a customer-support-focused corporate strategy was put in place. The customer support process was reexamined and it was apparent that it was becoming inadequate for the growing customer base and expanding product line. Furthermore, with increased globalization the customers were dispersed geographically and in different time zones. The customer support process was too slow (as much as two to three hours to return a phone call in some circumstances), too haphazard (no organized online knowledge base for repeat problem solutions), too expensive (repeat problems frequently escalated to development engineers, long training periods), and very stressful to both support personnel (overloaded) and managers (little visibility for the what, who, why, when). Top management saw the need for a radical solution. Given the mission-critical nature of its customers’ network environments, the company expended much effort in providing exceptional customer support. It differentiated itself in the market by helping customers minimize their total life-cycle cost of ownership for network storage in the context of mission-critical applications. A storage system’s total life-cycle cost-of- ownership is much more than the purchase price. Service, support, and downtime for RAID storage systems account for 80% of the total cost over the life of the system as per a Gartner Group study – and downtime is especially critical to customers. A Computer Reseller News/Gallup Organization 1994 study found that hourly losses due to network downtime in Fortune 1000 companies were $3,000 to $5,000 per hour (median), could often be $10,000, and sometimes $100,000 or more (6% of companies). Storage Dimensions instituted several customer support programs and innovations to enhance this lower total life-cycle cost-of-ownership customer support strategy. [For additional information on Storage Dimensions, see Chabrow, 1995.] One key Information Technology and Customer Service 561 element of that strategy was TechConnect, an online technical support system. The development of TechConnect is described in the next section. The development of the TechConnect support system As the customer support process was being reexamined in mid-1992, it became apparent to the management team that an IT-enabled solution with an artificial intelligence component had to be part of the remedy. They put their commitment behind it and a project was initiated. The core management team for the project consisted of the executive VP for marketing and customer service (who was also the project sponsor), the director of customer service and support, and the director of information systems (Figure 19.2 shows the organization chart). In addition, a cross-functional task force was formed consisting of three people: one from the customer support group, one from the IS group, and one from engineering. Together, and with input from both customers and others in the company, the management team and the task force came up with a list of the top operational objectives (see Table 19.1) and key technical usability requirements (see Table 19.2) for what they generically referred to then as the customer support management system. They then Figure 19.2 Organization chart for Storage Dimensions 562 Strategic Information Management Table 19.1 Top 10 operational objectives of customer support management system in mid-1992 1 Provide consistent, accurate responses to customer inquiries 2 Document and track all known problems and proven solutions 3 Create centralized sources of information about customers, known problems, solutions 4 Assist in developing solutions to new problems 5 Create a closed loop escalation process 6 Promote cross-training of support staff 7 Provide remote access for customers of problem solutions 8 Improve call tracking and problem reporting 9 Improve accountability and responsibility with clear audit trails 10 Improve productivity of customer support staff Table 19.2 Technical usability requirements of customer support management system in mid-1992 IT Infrastructural/compatibility requirements 1 Multi-user, runs off current Ethernet network lines 2 Works under Microsoft Windows with a GUI interface 3 Dial-in capability for remote user access 4 Provides initial access for 25 users, expandable to 50 within one year 5 Must interface with cc:Mail for notification purposes 6 Must have data import/export capability Usability Requirements 1 Call tracking capability 2 Problem/solution tracking capability 3 Keyword search for problems/solutions 4 Must have a method for assisting technical support staff with answering calls (Al or other) 5 Must have a report generator with user-definable reports without generating programming code or a script 6 Ability to create and define call queues 7 Have at least five user-definable fields 8 Have automated call escalation process 9 Must have a closed loop problem solving process 10 Provides call audit trail 11 Tracks and reports customer configuration data Information Technology and Customer Service 563 searched the market for software packages that could help meet those requirements. The search included various types of artificial intelligence shells, database managers, call management packages, and help desk software – most of which were not the least bit suitable and were quickly eliminated. Only four packages in the help desk software category came close, and these were evaluated in detail. These help desk software packages were not an off-the- shelf fit to the application context. First, the approaches of the packages and vendors were geared mostly to internal help desks rather than external customer support with different customer types. Second, the knowledge capture/update and keyword search capabilities (if any) were too primitive for complex products that changed quickly and had interactions with other vendors’ products. Third, Storage Dimensions had a fairly sophisticated client/server network, and it wanted to link the customer support system to its e-mail and to its internal information systems and databases in other functional areas. As the help desk software vendors themselves acknowledged at the time, this would be a stretch. The comparative analysis among the four help desk software packages was made based on how the software features fit the operational requirements. The Apriori GT help desk software from Answer Systems (since 1995 a part of Platinum Technology Inc.) was selected mainly based on its unique ‘bubble- up’ technique that could prioritize likely problem solutions (discussed in more detail later in this section), its good incident management capabilities, its good reporting capabilities, and its technical compatibility with Storage Dimen- sions’ client/server network infrastructure and the Windows graphical user interface. Other Apriori GT capabilities at the time included call tracking, incident escalation, various search and retrieval features, custom notification and routing, e-mail and fax integration, accountability features, and tailor- ability for application integration. While no programming changes would be made to the source code, there was much work to be done in structuring Apriori GT to fit the complexity of the Storage Dimensions environment and linking it (through Perl scripts and macros) to the internal information system infrastructure and e-mail. For the next 90 days the task force worked together with the software vendor to install, customize, script, and test the customer support application. Simulta- neously, the customer support process and the way it was managed was being reengineered to take advantage of this new technology. Much input was sought and enthusiastically received at that stage from various parts of the company, and a pilot was run with selected customers. Fortunately, implementation was successful both technically and organizationally. Tech- Connect was online in late 1992. The TechConnect system was set up on a Sun Sparc 670 MP server and cost $160,000 for hardware and software. It costs $15,000 to maintain per year. Customer Customer inquiry Dispatch Incident Technical Support Engineer Resolved problem RMA Resolved problem by document Escalated incident Applications Engineer Engineer problem resolution New document Resolved problem by document Escalated incident PTR Manager Level 1 problem resolution Level 2 problem resolution Level 3 problem resolution 564 Strategic Information Management The cost justification for TechConnect was not difficult based on out-of- pocket expenses. In the first year alone the reduced call-backs (due to higher problem resolution rate on first customer call) saved about $70,000 in long distance phone bills. In addition, the productivity gains obviated the need to hire more technical support engineers to handle the growing customer support load, saving another estimated $150,000. The new IT-enabled customer support process TechConnect enabled the redesign of the customer support process such that it could be more effective and better managed. Some key aspects of how this new online customer support process was managed follow. • Improved escalation paths for problem management: A simplified diagram of the three-level escalation sequence is shown in Figure 19.3. After dispatch, the customer call goes to a level 1 technical support engineer. He/she tries to resolve the problem through an on-line TechConnect solution document. If it includes a request for material authorization, then an appropriate customer service representative is notified through TechConnect. If the problem is not resolved at level 1, it is automatically escalated and queued (path depends on the operating system used by the customer’s client/server network hardware) to a level 2 applications engineer who is more skilled and who investigates it thoroughly. If the applications engineer is unable to resolve it, then it is Figure 19.3 Escalation sequence in customer support process Information Technology and Customer Service 565 automatically escalated to the problem tracking request (PTR) manager who verifies the problem and must decide whether to escalate it to a development engineer. • Closed loop problem resolution: As the incident moves along the escalation path, both the caller and the customer support staff (and manager) always know who has the incident and what its status is. The process also ensures that the customer is informed in a timely manner. TechConnect keeps track of all the information related to the incident and stores it in the TechConnect database. • Analysis and reporting capabilities: TechConnect provides a multitude of management and activity reports that help manage the customer support process and identify bottlenecks. It is possible to automatically flag unusual events and for customer support staff to spend more time on proactive rather than reactive customer support. • Automatic cross-triggering capabilities: TechConnect is integrated into the Storage Dimensions network of information systems to automatically flag other business areas or information systems via e-mail based on problem incidents. This facilitates cross-functional coordination between customer support and other departments. • Amplified shared knowledge creation: The intensity of shared knowl- edge creation through customer interactions around the customer support process is greatly amplified through TechConnect. The continuous production of online solution documents steadily creates a valuable knowledge base that is accessible to all: everyone can be an expert, and everyone can contribute to the learning. That transforms the way that the customer support process is carried out and managed, as does its knowledge-creating capacity. That critical aspect is discussed in more detail in the next section of the chapter. With the use of the TechConnect system and a transformed customer support process, the customer support department has remained at the same size despite increasing sales volume. The group consists of eight technical support engineers, three applications engineers, and one manager. They work a basic 11-hour shift between them and also have a 24 hour on-call system. TechConnect as an adaptive learning IT infrastructure The TechConnect system is based on a knowledge base software architecture that adaptively learns through its interactions with users. It is based on a unique software-based problem resolution architecture (patented in 1995 by Answer Systems) that links problems, symptoms, and solutions in a document database. All problems or issues are analyzed through incident reports, and resolutions are fed back into the online knowledge base in the form of solution Customers Technical support staff Development engineers Product managers Other vendors TechConnect Solution Documents Knowledgebase Online access Internet access New problems/solutions 566 Strategic Information Management documents. The software is able to link one master solution or solution-in- progress with variants of multiple symptoms. This unique many-to-one relationship allows the help desk to update the solution in a single place in the knowledge base and communicate meaningful updates to users automatically. The way that the TechConnect knowledge base learns is through the very well-structured dynamic feedback loops that are managed by the problem resolution architecture. As problems are analyzed and resolved by technical support specialists, development engineers, and customers, the results are integrated into the knowledge base as solution documents, and new knowledge is created and synthesized (see Figure 19.4). As a result, solutions are consistent and readily available to support specialists and customers alike. Solutions are ‘fresh’ (up-to-date), accurate, and based on the latest experience of customers (200 new data points per week). At this writing, support specialists and customers have access to information from over 35,000 relevant incidents. In total, 1,700 solution documents are currently available electronically. Because 80% of incoming calls are repeat problems, existing solution documents often provide resolutions within minutes. Another key feature of the TechConnect system is the Bubble-Up solution management technology (see box below) that enables the TechConnect knowledge base to adaptively learn through its interaction with users. It automatically prioritizes solution documents based on ‘usefulness/frequency Figure 19.4 TechConnect’s dynamic feedback loop for knowledge creation Information Technology and Customer Service 567 of use’ in resolving specific problems, and the higher priority ones rise to the top of the list. This helps less experienced inquirers to see the most useful solutions and speeds up problem resolution. The Bubble-Up process also adaptively changes the structure of the knowledge base and adapts it continuously to new knowledge. In combination, the problem resolution architecture and the Bubble-Up software make it possible for the knowledge base to change its structure dynamically ‘on-the-fly’ as it gains new knowledge from those who interact with it. TechConnect can learn quickly from anyone who interacts with it: customer support specialists, development engineers, and customers. Fur- thermore, the knowledge is always fresh and usefully organized for rapid problem resolution for less-experienced users. The TechConnect support system allows self-help by customers. It can be directly accessed by customers 24 hours a day through e-mail or through the Internet via the Storage Dimensions Website (http:storagedimensions/support/ techsupport/). To access the knowledge base via the Internet self-help route or e-mail, customers complete a TechConnect search request form that includes symptom identifiers. Within two minutes, TechConnect automatically sends back a related list of solution documents from which to choose. Thus, through What is Bubble-Up™? Bubble-Up is a patented problem resolution technology that is embedded in the Apriori product. It enables an indexing scheme and intelligent filter that causes the most-used solution documents to rise to the surface of the volume of solution documents that are stored in a problem resolution knowledge base. The index structure of the knowledge base has multiple roots and is not strictly hierarchical. Moreover, it uses a proprietary algorithm to automatically modify the structure of the knowledge tree based on ‘most-used’ knowledge elements in the tree. ‘Most- used’ is based on a statistical weighting of both the actual usefulness and popularity of a solution document in solving a problem rather than just access (i.e., incorporates a voting heuristic). It can do this at any level of the index structure thus enabling selective filtering. A flowchart illustrating how the Bubble procedure works internally is shown in Figure 19.5. How it affects TechConnect from a user perspective is explained through an example in the next section of the chapter. As new solution documents are created and/or their usefulness in solving problems changes (through user voting when accessed) the knowledge base is able to adaptively learn and automatically change its structure without any programming, and in a way that is transparent to the user. It is thus able to self- modify through use and learn as new problems, solutions-in-process, or solutions are added. Bubble-Up was patented by Answer Systems in 1994. It won the 1995 Harold Short Jr. Innovations in Service Awards that recognizes tools and services that have a far reaching effect on service delivery. Define user problem Log in Provide user access to tree to solve problem View document list at current index level Record tree path Traverse tree path Is a document relevant? Select and view relevant document Edit document Has bottom of tree been reached? Traverse tree path Edit current tree New problem Was document useful? Set ‘useful’ indicator Record path and increment usage counter for relevant document to access file Set ‘not useful’ indicator Yes Yes Yes No No No 568 Strategic Information Management an e-mail or web page request, TechConnect is able to search for solutions in the knowledge base, select and rank order them based on usefulness, and post them back to the web page. While technically possible, the structure of the knowledge base is not updated on-the-fly through the self-help route in order to protect the integrity of the database from spurious information. New knowledge from self-help incidents are first checked by technical support specialists before being submitted as updates. The TechConnect knowledge base provides detailed information on installation, compatibility, troubleshooting, and support for Storage Dimen- sions’ systems, as well as related products from other vendors (servers or operating systems or backup software). The customer support web page also has hot links to those vendors. Of course, for such a system to work effectively, it must be integrated into a very well-structured organizational customer support process that is well-managed. That was a crucial consideration in the redesign of the customer support process at Storage Figure 19.5 Flowchart of Bubble-Up procedure. (Adapted from Answer Systems) [...]... Sloan Management Review, Summer 1996, 53–65 El Sawy, O A Minding Your Own Business Processes: The BPR LearningBook, McGraw-Hill, New York, forthcoming 1998 586 Strategic Information Management Entex White Paper ‘Vendor Relationships: Trends, Options, Issues,’ Entex Information Services, New York, 1994 Evans, B ‘Numbering Success,’ Information Week, 12 February 1996, 6 Haeckel, S ‘Managing the Information- Intensive... and its Implications for the Design of Information Technology,’ Management Science (41:12), December 1995, 1900–1921 Sampler, J and Short, J ‘An Examination of Information Technology’s Impact on the Value of Information and Expertise: Implications for Organizational Change,’ Journal of Management Information Systems (11:2), Fall 1994, 59–73 Savage, C 5th Generation Management: Co-Creating Through Virtual... existing management approaches dividing firms into very high or very low performers This analysis has been supported by later work by Strassman (1990), who also found no correlation between size of IT expenditure and firms’ return on investment Subsequently, a 1994 analysis of the information productivity of 782 US companies found that the top 10 spent a smaller 594 Strategic Information Management. .. Third, despite the high levels of expenditure, there is widespread lack of understanding of IT and Information Systems (IS – organizational applications, increasingly IT-based, that deliver on the information needs of the organization’s stakeholders) as major capital assets 590 Strategic Information Management While senior managers regularly give detailed attention to the annual expenditure on IT/IS,... Dimensions Builds the Virtual Help Desk,’ Information Week, June 12, 1995, 54–56 Chase, R B and Garvin, D ‘The Service Factory,’ Harvard Business Review, July-August 1989, 61–69 Child, J Information Technology, Organizations, and the Response to Strategic Challenges,’ California Managment Review (30:1), 33–50 Davenport, T Process Innovation: Reengineering Work Through Information Technology, Harvard Business... 572 Strategic Information Management specified, then the new problem report will be assigned to the last index visited during the Bubble-Up search The owner of that index (the applications engineer) will then be notified that a new problem has been submitted The applications engineer will then review the new problem and check that no problem/solution document or pending problem exists, that all information. .. the World Wide Web,’ Information Systems Management (13:3), Summer 1996, 37–44 Nonaka, I and Takeuchi, H The Knowledge Creating Company, Oxford University Press, New York, 1995 Pine, III, J., Peppers, D and Rogers, M ‘Do You Want to Keep Your Customers Forever? Harvard Business Review (73:2), March-April, 1995, 103 –114 Pitt, L., Watson, R and Kavan, B ‘Service Quality: A Measure of Information Systems... reputation for the company as a customer support leader • Vigilant and proactive management of customer support process: TechConnect collects much data related to problem reports, activity levels, and customers It easily provides ad hoc management reports for spotting process problems It flags problems that require quick management attention and alerts of longer term capacity and service-level issues... customer inquiries, through the ‘trigger’ feature it has become automatic to pass on any sale leads as well as provide new knowledge for marketing strategy 576 Strategic Information Management 8000 7000 Number of incidents 6000 5000 4000 3000 2000 100 0 Figure 19.9 • • Q1 CY96 Q4 CY95 Q3 CY95 Q2 CY95 Q1 CY95 Q4 CY94 Q3 CY94 Q2 CY94 Q1 CY94 Q4 CY93 Q3 CY93 Q2 CY93 Q1 CY93 0 Change in number of incidents... frequently with 578 Strategic Information Management customers The company is currently implementing an intranet system with a standard browser coupled to a customized search engine for salespeople Through this new application the approximately 25 Storage Dimensions salespeople will be able to gain access while on the road to the latest versions of sales-related documents (such as competitive information, . support management system. They then Figure 19.2 Organization chart for Storage Dimensions 562 Strategic Information Management Table 19.1 Top 10 operational objectives of customer support management. More detailed Figure 19.1 Rising customer support levels for complex products 560 Strategic Information Management information about the company and its products can be found at www.storagedimensions.com. Storage. CY93 8000 7000 6000 5000 4000 3000 2000 0 100 0 Q2 CY93 Q3 CY93 Q4 CY93 Q1 CY94 Q2 CY94 Q3 CY94 Q4 CY94 Q1 CY95 Q2 CY95 Q3 CY95 Q4 CY95 Q1 CY96 576 Strategic Information Management • Global expansion strategy