Service Transformation in the Public Sector

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1 Service Transformation in the Public Sector

2 Overview SUMMARY Oracle has the products and experience to help organisations transform their customer services Oracle products: Can securely implement cross- Government identity management and information sharing Support cost-effective contact and channel management Promote the creation and use of customer insight to enhance service provision The Transformational Government Strategy sets out three key goals: the transformation of public services designed around the citizen and business; the transformation of shared services in front and back-office systems; and greater professionalism in IT management and delivery. Perhaps the most important of these is the transformation of public services, as set out in Sir David Varney s Report of December Oracle has the capability to support public sector transformation by providing world class customer relationship systems, integrating front and back-office systems and enabling pan-public sector strategies, including identity management, secure information sharing and maximisation of the information asset.

3 THE KEY ELEMENTS OF SERVICE TRANSFORMATION Implementing Transformational Government, including the recommendations in Sir David Varney s Report, is high on the agenda for those public sector organisations that provide services to citizens and businesses. Now is the time to: Ensure that real customer insight is driving service design Challenge delivery models to reduce duplication and non-value-adding customer contact Optimise channel management to make use of cheaper digital channels where appropriate Bring performance of web, contact centre and face-to-face services into line with best practice standards and benchmarks Fundamental to achieving transformation is a cross-government approach to aid identification of customers both as citizens and businesses. Without this, there cannot be reliable sharing of customer information, or effective delivery of truly joined-up services. Making improved citizen information available to government contact centres is only part of the story. Many contact centres in the public sector are too small to be operated cost-effectively. The quality of service they provide, such as one-call fulfillment, is often below the level routinely achieved in the private sector. Better systems are needed to enable the desired step-change in performance. In addition to a pan-government identity strategy, Varney also highlighted the need to maximise cross-government customer insight and to rationalise and professionalise service channels to help deliver sustainable service transformation and value to the tax payer. Identity and Information Management Varney has acknowledged identity management as being the front end of service transformation. The vision for 2010 is for citizens and businesses to have a single identity to underpin all their dealings with government through a secure, robust and trusted approach that enables wide access to joined-up services throughout all stages of life. The ultimate aim is for a common registration system birth to death, migration to emigration underpinned by secure, identity management processes that maintain the core identity data. The trust of citizens and businesses is crucial to the sustainability of a crossgovernment strategy and Varney therefore recommends that the government s data sharing policy distinguishes what identity data should be shared. EVOLUTION FROM ORGANISATION-CENTRIC GOVERNMENT... Multiple Touch Points Unsynchronised Channels Programme Focused Departments Inconsistent Business Processes Duplicated & Inconsistent Customer Data Citizen or Business Unaligned Employees Siloed Applications

4 Customer Insight Delivering citizen and business centric public services must start with an understanding of citizen and business needs. The Report highlights the value of insight in understanding the customer and recommends the appointment of Contact Directors to create and exploit insight as a strategic asset. Varney recognises the role of the Customer Insight Forum. He recommends that their work continues with a focus on the pan-government customer information asset, which provide a holistic view of the citizen and business needs as opposed to interpreting requirements at a single point of contact or transaction. Contact and Service Channel Management Many of the recommendations contained within the Varney Report are based around contact and interaction with the citizen or business and the channels through which contact and services are delivered. The recommendations can be broadly grouped into the rationalisation, performance and optimisation of contact and service channels. Rationalisation of contact centres and web sites will not only simplify and improve the service to the customer, but will release significant efficiency savings providing value to the tax payer. Varney also advocates the use of a single non-emergency number that has been widely adopted in the United States and argues for the establishment of performance indicators to measure both the cost and effective delivery of services. There are a variety of channels, both traditional (face-to-face, contact centres) and e-service channels (web, mobile etc.), that the Government can use to interact with customers and to deliver services. However, these multiple channels should be underpinned by a single process that offers an integrated service. Varney recommends a pan-government channel strategy based on channel optimisation to deliver services that are intuitive, easy to use and simple to deploy....to CUSTOMER DRIVEN GOVERNMENT Integrated Multi-channel Strategy Customer-Focused Best Practices & Services Citizen or Business Synchronised Business Intelligence and Analytics Single View of the Customer Employee Alignment Process and Data Integration

5 ORACLE CAN HELP YOU IMPLEMENT SERVICE TRANSFORMATION Implementing the recommendations of the Varney Report presents a huge challenge for all public sector organisations. It is important to take a consistent approach and work effectively in partnership with other public sector bodies and the Government s strategic IT suppliers. Oracle s technology and applications are designed to work together to support front and back-office transformations. Our consulting services and extensive partner network will help you gain maximum value from our software and make the most of the changes you need to introduce. Oracle has a wide range of products that address various aspects of the Varney Report. These include: Oracle Identity Management allows enterprises to manage the end-to-end lifecycle of user identities across all enterprise resources, both within and beyond the firewall. Oracle solutions interoperate with all major systems to ensure enterprise-wide security for all your applications. Oracle Master Data Management enables information to be sychronised across multiple systems to get an accurate, consistent 360-degree view of the customer data and provide a real-time, consistent, single source of truth, for highest data quality. Oracle Business Intelligence & Analytics includes a comprehensive analytical customer relationship solution that provides organisations with an up-to-date overview of customer service effectiveness. By spanning real-time and historical data and providing pre-built and ad-hoc analytic reports, the application delivers complete customer insight and improves overall customer satisfaction. Oracle Customer Relationship Management helps organisations deliver quicker, better and more efficient customer service and provides insight to the right person at the right time, leading to faster, better informed decisions. It also provides an integrated view of performance and usage across all service channels enabling organisations to optimise their channel management. Oracle Mobile Solutions connect mobile service professionals with accurate, up-to-date information. Deployed over wireless phones, pagers, laptops and handheld computers, it gives mobile staff complete access to customer information, corporate knowledge bases and much more. Oracle Fusion Middleware provides a foundation infrastructure to complement existing applications and legacy systems that enables integration, secure information sharing, web services and multi agency working. Further detail as to how Oracle products can be used to support an organisation s service transformation can be found in the brochure inserts. WORLD-CLASS PUBLIC SERVICES THAT USE ORACLE As the Report recognised, there are admirable examples within the UK and around the world within public services that deploy technology in imaginative ways to enable excellence to be achieved. In the UK, the Pension Service an Oracle customer is widely acknowledged as one of the best technology-enabled services, with well-balanced use of telephone and web channels. A leading example of a single non emergency implementation using Oracle Siebel solutions is New York City visit:

6 Contact and Channel Management SUMMARY Delivery of government services across multiple channels of communication Comprehensive knowledge management tools that enable rapid resolution of problems and information requests Secure collaboration and information sharing amongst multiple departments and agencies Real time integration of data across systems enabling front and back-office integration Customers expectations of public services are changing, with an increasing comparison to services delivered by the private sector. New digital technologies offer new, cheaper, faster self service options for service delivery that are used widely in the private sector. Varney recommends some guiding principles so that a certain standard can be expected with every contact, irrespective of the channel used. His recommendations can be broadly grouped into those around improving the performance of each contact, rationalising and simplifying the number of contact points and optimising the use of channels to deliver cost-effective as well as quality services. Oracle is the leading supplier of Customer Relationship Management solutions that enable both private and public sector organisations to deliver a top class service. CONTACT MANAGEMENT IN THE PUBLIC SECTOR Citizens and businesses judge the quality of public services they receive with each contact and will compare the ease of access and the level of service offered by the private sector. A key challenge of the Government is to deliver a consistently high quality of service across all public sector bodies irrespective of the channel used. There is wide variation of service delivery across the public sector and the Varney Report puts forward a number of recommendations based around performance to improve the service provided. These include the adoption of best practice guiding principles and the use of benchmarking. With simplification, standardisation, sharing of best practice and accreditation of contact centres, Varney suggests that performance improvements would reduce costs by 25% as well as improve the level of service provided. The Pension Service, an Oracle customer, is cited within the Report as an exemple for first call resolution, whereby 45% of callers applying for State Pension or Pension Credit on the telephone had their needs assessed and their application dealt with in one-touch. With 750 contact centres and hundreds of web sites in use in the public sector, additional, significant savings can be made through the rationalisation and adoption of a shared service culture. Oracle s software supports sharing of all kinds and our experience with shared services both within the public and the private sector gives us unrivalled credentials to support the government s move to front office shared services. There are a number of examples such as Staffordshire Connects, an Oracle customer, where frontoffice shared services has not only enabled significant savings to be made, but has also increased customer satisfaction levels and enabled out-of-hours services to be provided.

7 Varney also recommended the rationalisation of help lines and use of a single non-emergency number, as used within the United States. New York New York s single non emergency number project - brought together 40 different call centres, 14 pages of phone numbers and a host of help lines from dozens of different agencies into a single service centre and one memorable phone number. The service provides a single point of contact for 8 million residents for all non emergency city services. The call centre is open 24 hours a day, 365 days a year and provides a service in more than 170 languages. There are a number of different channels that can be used to interact with citizens and businesses and to deliver services. A good channel strategy should provide accessibility to services and offer the flexibility that modern day consumers have come to expect. Whilst recognising that citizens have differing needs, it should be acknowledged that certain services may be more suited to specific types of contact channel. There is a need therefore, to understand what the customer preferences are, what the different channels can offer and the cost of service delivery across each of these channels. A co-ordinated channel strategy should focus on offering an integrated service with multiple channels around a single process, thus removing duplication and easing integration into the back-office systems to enable real efficiencies to be gained. Channel optimisation should focus on driving customers to use the most cost effective and relevant channel for a specific service. A COMPLETE SOLUTION FOR CONTACT AND SERVICE CHANNEL MANAGEMENT Oracle has been recognised as a leader within contact centre and service solutions and provide comprehensive Customer Relationship Management solutions that enable organisations to offer effective and efficient services to their constituents across multiple channels of communication. The applications provide optimal resource deployment, speedy issue resolution, one-and-done request handling and powerful tracking and analytics capabilities. Communicate Effectively with Citizens and Businesses Oracle s consolidated constituent service system ensures that government agencies are effectively communicating and serving their citizens and businesses and providing quick, seamless access to government services and information. Traditional channels (such as face-to-face and contact centres) and e-service channels (web, mobile phone, digital TV) are supported as part of an integrated channel management offering. Provide Knowledge Management & Information to Resolve Calls Oracle s use of guided call scripts and embedded processes with a comprehensive solution and knowledge base enable call agents and self service users to resolve calls at first contact. Measure Effectiveness and Increase Accountability Oracle s analytical capabilities enable government agencies to measure performance and increase accountability for service provision. The solutions provide visibility into operations which help officials to identify and target areas for improvement. Route Incidents & Requests to Appropriate Departments Incidents and requests for services can be routed, resolved or escalated by single or multi-agency support. Integrated mobile technologies can be used to provide more flexible and productive use of available resources. Provide Comprehensive Case Management Oracle s comprehensive case management facility enables more complex cases to be initiated and managed through the same application, providing a seamless service to the citizen and business. Increase Awareness Through Targeted Outreach Segmentation and campaign targeting facilities are provided to enable the identification of target populations, design and execution of outreach campaigns and increased awareness of local or central initiatives. ADDITIONAL INFORMATION Additional product information can be obtained from: , Oracle. All rights reserved. Oracle, JD Edwards, PeopleSoft and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. Additional information on Oracle s response to the Varney Report can be obtained from: rachael.hartley@oracle.com

8 Customer Insight SUMMARY Customer insight is key to delivering customer centric services within the public sector It requires both a business and an information technology strategy that goes beyond a traditional CRM solution Oracle provides a world class Customer Insight Solution delivering significant benefits The Varney Report recognises that true service transformation delivered by sustained efficiencies and improved service delivery is dependent on a greater focus on the management and governance of the Government s Information Asset. Varney identified customer insight and information around citizens and businesses as the key to engaging customers and developing services based around their needs. Customer insight requires a unified, reconciled single view of high quality customer data. Oracle s customer insight strategy is based around establishing a foundation for information excellence to provide high quality customer data on which to develop a customer centric business. THE VALUE OF CUSTOMER INSIGHT Customer insight is one of the key requirements for transforming service delivery and is fundamental to the delivery of customer centric services. The qualified understanding of customer behaviour can be used to deliver an enhanced, personalised service. Customer insight drives the right behaviour and can be used to remove a contact that has no value and can ensure that only services that are relevant and easy to use are provided. Customer insight is valuable in the planning and prioritisation of services and the allocation of resources. Customer insight can help to: identify and understand the customer identify and map their relationships with other public sector bodies manage the relationship and maximise interactions with the customer raise awareness of their current and future needs identify use of, and preference for, different service channels and communication methods provide a single, holistic view of the customer across government This requires centralised, master customer identity, active data quality management, synchronisation with multiple data sources and an easy-to-use facility to visualise and analyse all customer information.

9 Using Oracle s Customer Insight Solutions allows us to determine which products should be offered to a customer based on sophisticated analysis of that customer s profile. As a result, each customer gets less but more clearly targeted offers. Sharon Sibigtroth Managing Director of AXA Financial With advanced business intelligence capabilities, we take our commitment to the customer to the next level designing services and programmes that provide the greatest value. Ann Ardizzone Managing Director of Marketing Programmes, Alaska Airlines Oracle s Customer Insight Solutions helped us realise measurable business benefits in numerous areas, including improving our average customer response time by 27%, leading to a 30% improvement in customer satisfaction. Darryl Carroll Director of Sales and Marketing, Honeywell Aerospace As highlighted by Varney, there are many examples where the private sector has gained significant value from customer insight. Oracle has been helping companies to gain benefit from their customer insight to deliver a proactive customer service. BT Retail implemented customer intelligence to 400 users in 3 months and increased contact data quality by 20% which led to the quote below: What a joy I can see everything now, DANNY MCLAUGHIN BT Retail Major Business. ORACLE S CUSTOMER INSIGHT SOLUTION Oracle s Master Data Management and Customer Intelligence facilities provide a complete customer insight solution that delivers integrated customer data management with reporting and analysis capabilities. It enables organisations to know their customers, improve data quality, utilise customer insight during all customer interactions, comply with privacy and regulatory requirements and reduce data management costs. Integrated, End-to-End Solution Oracle s comprehensive solution provides the necessary platform/foundation, analytical tools for the delivery of customer information. The components are fully integrated which means the customer doesn t need to spend the time, money and resources to integrate customer and analytic data. Pre-Defined Data Model Oracle s architecture includes a customer master repository that consolidates and synchronises all disparate customer data across multiple sources. Once consolidated, clean customer data is then integrated with other measurement data to form the foundation for key business indicators and user-defined metrics. Data quality is assured by data cleansing, de-duplication, enhanced and synchronisation across all operational systems. Specialist Systems Customer Intelligence & Analytics Customer Insight Open The components adhere to industry standards and are built in a modular fashion so that they can co-exist and integrate with existing legacy systems. Operational Systems Quick and Easy to Deploy Oracle s integrated, modular and open design allows the customer to pick only the functionality needed for the initial requirements, then add functionality as required over time. All the efforts and resources can then be focused on the business aspects of customer insight. ADDITIONAL INFORMATION 2007, Oracle. All rights reserved. Oracle, JD Edwards, PeopleSoft and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. Additional product information can be obtained from: and Additional information on Oracle s response to the Varney Report can be obtained from: rachael.hartley@oracle.com

10 Identity and Information Management SUMMARY Identity management is central to service transformation and the joining up of services An identity management strategy needs to identify both the customer and those who wish to access their records Oracle provides a comprehensive solution for all aspects of identity management The Varney Report recognises identity management as the front end of delivering better public services and that a common approach across Government to identity management can act as the cornerstone to service transformation. Varney s goal is to have a single identity for citizens and businesses for all their dealings with the Government, which is managed by a common registration system. A clear policy on the sharing of identity information is crucial to gaining public acceptance of such a scheme. Oracle s comprehensive identity management solutions provide facilities to manage the allocation and maintenance of unique citizen and business identifiers as well as providing facilities to manage the security of the data and the identity of those who are accessing it. THE NEED FOR IDENTITY MANAGEMENT Within a year, the average citizen will need to prove their identity to the Government at least 11 times. The Home Office alone has 20 verification procedures and 25 unique numbers. There is substantial scope for efficiency savings by reducing the number of databases holding and managing basic personal information, and the number of identity management systems. Varney highlighted the need to shift focus away from the transactional view of a customer, to a more holistic, pan-public sector view of the citizen or business. The customer would then have a single identity for all their dealings with public services which would be used by the Government to provide a more efficient and joined-up service based around common themes or life events such as births and deaths. A common registration system would be central to providing a change of circumstance service, a key recommendation of the Varney Report, where the onus is on the Government to join-up the service by sharing change of circumstance data between the different government bodies. Adoption of standard processes to check and verify individuals and their relationships is only part of a successful identity management strategy. It is vital that customers have trust in any pan-government strategy and that information shared about a person s identity respects their privacy. Identity management must therefore extend to managing the identity and authentication of individuals accessing personal data dependent on their role and purpose of access. There is need for a robust system that enables secure sharing of data between partner institutions and ensures that the services of one organisation can be delivered by another.

11 A COMPLETE SOLUTION FOR IDENTITY MANAGEMENT To date, identity management has been treated as a separate management solution to be bolted on to applications after they have been deployed. This is changing. Oracle is leading a new phase in identity management whereby identities are managed within applications as part of the business process, whilst preserving the benefits of a centralised identity management system. Oracle believes that identity management should be application-centric, integrated out of the box with existing applications, readily deployed for new applications and architected for a future service-orientated architecture (SOA) environment. In a SOA environment identity management will be delivered as a re-usable service, so it can be used by any application across an organisation delivering significant business efficiencies, enhanced security and lower administrative and development costs. Oracle s best-in class identity management suite is a complete set of products that addresses all aspects of identity management: Oracle Directory Services Oracle offers the highly scalable Oracle Internet Directory implemented on the Oracle Database. The Oracle Virtual Directory provides a consolidated LDAP view of directory information from multiple sources, whether the sources are other LDAP directories, databases or web services without the need to hold information centrally. Identity Administration Identity administration helps reduce security risk by governing how digital identities, groups and organisations are created, maintained and leveraged throughout an organisation. It does so by providing a simple, controlled means to change user, role, group and organisation information that dynamically affects access privileges. Authentication, Authorisation and Single Sign-On Web access controls improve security by managing who has access to what information and when. Single sign on delivers dramatic cost savings by reducing the time spent with thousands of users, whether customers or employees, addressing password re-set and update issues. Federated Identity Federated identity management provides a means to link internal employees to external portals, or external constituents and customers to internal portals, without the burden of managing their identity and credential information in both places. This drastically reduces the costs and complexity of managing partners users. User Provisioning User provisioning automates the tedious process of adding, updating and deleting users from multiple applications and directories. As roles, rules and policies evolve, the rights and attributes of users can change and a workflow-controlled, automated provisioning process can significantly improve the efficiency of managing those changes. Web Services Management In Service Oriented Architecture, web services expose business applications and information to the internet for use by customers, partners and employees. A robust, secure framework is critical for managing access control, monitoring and auditing of these services. ADDITIONAL INFORMATION Additional product information can be obtained from: , Oracle. All rights reserved. Oracle, JD Edwards, PeopleSoft and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. Additional information on Oracle s response to the Varney Report can be obtained from: rachael.hartley@oracle.com

12 ADDITIONAL INFORMATION Additional product information can be obtained from: Additional information on Oracle s response to the Varney Report can be obtained from: rachael.hartley@oracle.com Oracle Corporation UK Limited Oracle Parkway Thames Valley Park Reading Berks RG6 1RA