First Generation Outsourcing of Customer Communications Management

Transcription

1 White Paper First Generatin Outsurcing f Custmer Cmmunicatins Management Reginal Asian Fcus

2 Abstract Glbally, the utsurcing f nn-cre business activities is a wellaccepted strategy t increase business agility, lwer expenses and prvide imprved custmer experience and service quality. This is particularly the case fr transactinal and direct marketing custmer cmmunicatins where the verwhelming majrity f rganisatins arund the wrld have been utsurcing custmer cmmunicatin fulfilment activities successfully. Within the Asian regin, rganisatins have been slwer t adpt this trend. Hwever, Fuji Xerx has nted a significant upturn in the number f rganisatins seeking t utsurce essential custmer cmmunicatins services. This whitepaper is intended fr rganisatins that are cnsidering utsurcing Custmer Cmmunicatins Management ( CCM ) activities fr the first time (first generatin utsurcing). It prvides backgrund infrmatin t CCM and highlights the key cnsideratins and activities that shuld be cnsidered when rganisatins are utsurcing CCM fr the first time, with a particular fcus n the activities required t successfully utsurce within the Asian regin. What is Custmer Cmmunicatins Management? Custmer Cmmunicatins Management ( CCM ) is cncerned with the delivery f capabilities that enable businesses t cmmunicate effectively with their custmers. CCM includes creative design; data integratin and transfrmatin activities; custmer cmmunicatins frmatting; multi-channel delivery including printing and nline services; and the strage and retrieval f histrical custmer cmmunicatins. Custmer cmmunicatins that are typically fulfilled via CCM slutins include statements, bills, renewals, plicy dcuments, letters, marketing dcuments and many ther custmer cmmunicatins. Figure: Fuji Xerx Custmer Cmmunicatins Management (CCM) Platfrm The ability t quickly adapt custmer cmmunicatins t suit evlving business strategies, changing regulatry requirements and t deliver n marketing gals is critical. Many industries have been fast t embrace the delivery f CCM services under an utsurced mdel as it prvides the pprtunity t access mre advanced systems and platfrms than they culd therwise have achieved independently. This ensures that their rganisatinal gals can be mre easily achieved, gaining the best pssible return frm their custmer cmmunicatins and prviding an imprved custmer experience. Glbal trends twards an increasingly digitised wrld als mean that the number f delivery channels is increasing, leading t increased fragmentatin f cmmunicatin channels. Cnsumers will chse channels that are mre respnsive. Fr businesses interested in delivering a psitive custmer experience, supprting the delivery channels thrugh which their custmers want t cmmunicate with them is critical t bth custmer retentin and acquisitin. At Fuji Xerx Dcument Management Slutins ( Fuji Xerx ), CCM als includes the handling f respnses and ther inbund custmer servicing requests. The delivery f an integrated utbund cmmunicatin and inbund respnse handling platfrm prvides the mst significant pprtunity fr efficiency gains fr ur clients. Hwever, in this whitepaper, we are nly fcussing n utbund custmer cmmunicatins. Cmmercial in Cnfidence 2

3 Why d rganisatins utsurce CCM activities? The decisin t utsurce is mst ften driven by the fllwing brad factrs: reductin f expenses, gaining f access t increased capability and innvatin, imprvements in custmer experience and shifting f fcus t cre business activities that will enable market grwth. Typical reasns cited fr pursuing an utsurcing f CCM activities include: Leverage ecnmies f scale t access shared capacity and resurces. Fuji Xerx has made significant investment in peple, technlgy, plant and equipment t ensure that they can ffer their clients an imprved CCM capability at a mre cst effective price than can be justified internally under an insurce mdel. Fuji Xerx is cnstantly assessing and updating ur technlgy platfrms t deliver the best CCM capability pssible. This includes bth purchasing and deplying best f breed prducts and als develping new and innvative capability t address any market gaps. Minimise capital investment and cnsume services as a predictable peratinal expense. Tday, majr rganisatins are required t find ways t minimise capital expenditure t meet financial bjectives. Fuji Xerx has already made the investment in slutin platfrms that can meet rganisatins CCM requirements tday and fr the future, enabling rganisatins t access this capability as an peratinal expense with minimal capital investment required based n a pay-as-yu-cnsume service mdel. Obtain business imprvements withut cmpeting fr internal resurces and pririties. In tday s business envirnment, there are always mre prjects with psitive returns than peple t deliver n thse prjects. Outsurcers scale their business t meet their custmers demand, enabling new prjects, initiatives and changes t be implemented quickly. Gain access t specialised capabilities, technlgy and resurces than therwise wuld have been pssible internally. This minimises internal investment int nn-cre peple and systems. Prvides a higher quality f service. Reputable utsurcers such as Fuji Xerx have made significant investments in technlgies and prcesses that enable the highest level f quality t be prvided. This includes investments in significant recnciliatin, reprting and quality management systems, including the implementatin f sphisticated filebased integrity systems fr physical mail insertin that minimise the likelihd f errrs. Manage cntent delivery channel prliferatin challenges and imprve custmer experience. There is currently a prliferatin f new cmmunicatin channels. Sme f these channels will succeed and sme will fail. Organisatins need t decide between supprting their custmers preferred way f cmmunicatins with them r frce their custmers t cmmunicate thrugh nn-preferred channels. Innvative utsurcers such as Fuji Xerx can prvide easier access t these delivery channels t supprt rganisatins relatinship with their custmers, and in a mre cst-effective way than internal prjects. Leverage best practices, cntinuus imprvement and ptimisatin, gaining the shared benefits f the cre business fcus n CCM that a specialist utsurcer prvides. Enable business t respnd quickly t changing needs t meet bjectives and achieve speed t market Avid technlgy dependence and legacy prduct issues Cmmercial in Cnfidence 3

4 Why CCM is a strng utsurcing candidate Outsurcing ccurs when a custmer rganisatin transfers the wnership and peratin f a business prcess previusly perfrmed inhuse t a service prvider in return fr the service prvider supplying services back t the custmer n agreed terms. The transfer f the business prcess t the service prvider nrmally invlves the transfer f sme r all f the staff, assets and cntracts used t run that 1 business prcess frm the custmer t the service prvider. are minimised and that ur capabilities are the strngest in the market. With this in cntext, first generatin utsurcers f CCM t Fuji Xerx ften has an pprtunity t imprve the quality f service delivered and address and minimise risks that may already be present within their business as part f the migratin t an utsurced slutin. Histrically within Asia, the market has been slwer t utsurce CCM services than glbal trends. Hwever, with rganisatins nw needing t increase their fcus n cre business activities t drive grwth, ensure custmer privacy and maximise data security, Fuji Xerx is nticing a significant uplift in the interest fr utsurcing CCM services within the regin. Custmer Cmmunicatins Management is a strng candidate fr nging delivery under an utsurced mdel. Unlike many ther utsurcing activities, Fuji Xerx is nt aware f any first generatin utsurcer f CCM that has transitined the fulfilment aspects f CCM back t an in-huse mdel. This is because many f the inherent risks that are ften present in IT and business prcess utsurcing activities are minimised thrugh the engagement f a suitable CCM utsurcing partner, including: Significant knwledge f business and back ffice prcesses specific t businesses are nt required. Whilst all rganisatins differ in their business apprach, the actual prductin prcesses fr designing, creating and fulfilling custmer cmmunicatins are very similar fr each rganisatin and are repeatable. Fuji Xerx has built a CCM platfrm that can be cnfigured t meet each client s unique requirements, whilst including strng data integrity prcesses, reprting and recnciliatin activities. CCM data prcessing activities can be highly autmated and the minimisatin f human invlvement in the prcess reduces the pprtunity fr errrs t ccur. Transfrmatinal utsurcing t achieve a higher quality utcme, increased capability and lwer expenses can be relatively easily achieved in cmparisn t a traditinal IT lift and shift utsurce apprach. The printing and mailing prductin prcess is fundamentally a manufacturing prcess. In this regard, within Fuji Xerx, lean manufacturing techniques are implemented t access significant cst and quality imprvements that are difficult t achieve withut the scale that is ffered by an utsurcer. Regardless f whether the delivery channel is physical r nline, the CCM delivery prcess can be fully recnciled and easily measured against agreed service levels. Cnsidering frm a glbal perspective, mst rganisatins with a significant vlume f custmer cmmunicatins have already very successfully utsurced their Custmer Cmmunicatins Management services t third party rganisatins. Fuji Xerx is a significant prvider f utsurced CCM services, with almst a billin custmer cmmunicatin items prcessed per annum. Fuji Xerx has used ur scale and experience acrss multiple industries t make significant investments in systems and technlgy t ensure that utsurcing risks 1. 1 Pinsent Masns Outsurcing Guide: Cmmercial in Cnfidence 4

5 Mitigating Outsurcing Risks Tday, the mst significant factr in chsing an utsurcing partner by far is the minimisatin f risk, in particular risks cncerning data security, cmpliance and business cntinuity. Fuji Xerx takes significant steps t minimise these risks and address any bstacles that may prevent ur clients frm achieving their gals thrugh the utsurcing f CCM activities. The primary gals fr Fuji Xerx are the prtectin and integrity f custmer data and cntinued peratin f services t meet ur clients requirements. Data security is very imprtant t us - it is ur client s reputatin and it is als ur reputatin. Our clients include sme f the wrld s largest banks and they expect the highest level f data security. Many f them audit ur plicies, prcedures, test ur systems & cntrls and audit ur data centres t ensure we meet best practice standards. Fuji Xerx uses a cmbinatin f security cntrls t ensure the prtectin f ur client s data, including but nt limited t; Physical security, Cntrls ver persnnel and cntractrs, Data strage and encryptin, Infrastructure, sftware and netwrk cntrls, Plicies, standards and prcedures. Organisatins that chse t utsurce services remain respnsible fr ensuring that the service is perfrmed in a rbust and cmpliant manner. The selectin f an apprpriate utsurcing supplier that understands this bligatin is therefre critical t ensure that the bligatins f the rganisatin are met with regards t prtectin f custmer privacy and rganisatinal reputatin. Organisatins that are new t utsurcing will benefit frm Fuji Xerx s past and n-ging significant investments int servicing its existing client base. Organisatins utsurcing fr the first time can be cnfident that Fuji Xerx services are prvided with the highest pssible integrity and security, verified nt by us but by all f ur clients wh cntinue t use us fr their critical custmer cmmunicatins. T ensure that ur standards meet r exceed ur clients wn internal standards, Fuji Xerx takes the fllwing steps t safeguard the services ffered t ur clients: Fuji Xerx attained ISO27001:2006, Infrmatin Security Management System (ISMS) certificatin frm SAI Glbal in 2006 and achieved re-accreditatin in Our systems are prtected by leading firewall systems in use at majr banks. Vulnerability scans are perfrmed regularly, as are annual penetratin tests. Our netwrk is segmented by firewalls. Internal and external user access is limited by segment. A business cntinuity capability is in place including secndary data centres, redundant infrastructure and services, data replicatin and nightly backups. The minimum data strage standard fr data is RAID5. Fuji Xerx utilises managed file transfer technlgy with apprpriate 2048 bit encryptin as a standard. Secure data transfer is achieved thrugh reputable industry prtcls including TLS r SSL, HTTPS and Secure FTP. Where there is a requirement, data is encrypted at rest and n all back-ups. Cmmercial in Cnfidence 5

6 Managing Transitin Risk Fr first-generatin utsurcers, the ability t minimise transitin risk is a key factr t address, nt just in terms f the minimisatin f peratinal risks, but als with regards t hw change is managed fr the existing persnnel within the rganisatin perfrming the CCM activities under the in-huse mdel. Fuji Xerx has transitined clients frm in-huse CCM peratins t utsurced facilities many times. This experience has enabled Fuji Xerx t build a transitin framewrk that enables the fast and efficient delivery f a fully utsurced CCM platfrm with minimum disruptin t existing CCM activities and the persnnel that currently perfrm thse functins. The Fuji Xerx transitin framewrk includes: A business case template fr rganisatin t use internally fr justifying the transitin frm an in-huse slutin t an utsurced facility. Standard data cllectin questinnaires that can be used by rganisatins internal stakehlders t cllect all necessary infrmatin t frm a cst f transitin and nging peratinal cst estimate. A third party ITSM audit certificate / statement f Fuji Xerx s IT and peratinal facilities t use in rganisatins internal risk assessment. A standard Statement f Wrk detailing all f the inclusins, exclusins and assumptins that Fuji Xerx has used in the frmatin f the slutin platfrm t meet businesses requirements. A standard Prject Management Plan that defines Fuji Xerx s apprach t the implementatin and transitin f CCM activities t Fuji Xerx custdianship. In additin t these activities, Fuji Xerx als rutinely cnsiders: Purchasing existing systems and equipment that may be used within existing businesses t fulfil CCM activities Offering rles within the Fuji Xerx business t existing technlgy and peratinal persnnel within businesses that are experienced with their CCM systems and prcesses. The transitin framewrk and ther activities wrk t minimise the risk and timelines required t transitin CCM activity t Fuji Xerx, in particular in terms f gaining the expertise that existing persnnel have with regards t day-t day-ccm jbs and activities. Outsurced Custmer Cmmunicatin Management Services There are many cmpnents f a cmplete CCM slutin fr utbund custmer cmmunicatins. The Fuji Xerx apprach invlves integrating best-f-breed slutin cmpnents t prvide the mst flexible and pwerful slutin t meet clients requirements. The integrated slutin envirnment is cnfigured t meet client requirements using a platfrm that allws client slutins t be cnfigured quickly withut the need fr significant develpment and integratin. This apprach has a number f benefits: it limits implementatin csts fr deplying a client t the platfrm, it allws the slutin platfrm t evlve t meet emerging client requirements withut the need t be dependent r behlden n a single vendr and it means that slutins can be cnfigured accrding t the client s requirements. All these enable clients t chse nly thse CCM cmpnents that make sense fr their particular business. Althugh the list f services that can be prvided can be very significant, the fllwing services are the primary prductin activities fr a typical CCM service: Data transfrmatin and enrichment services Cmmunicatin design and creatin services Pre-frmatted cmmunicatins pst-prcessing services Multi-channel distributin and cntent management capabilities Tw ther key cmpnents t a successful CCM platfrm are a dedicated team f knwledgeable and specialist experts and enabling systems and infrastructure t supprt and manage the services prvided t clients. Expertise. A significant challenge fr the cntinued peratin f inhuse CCM services is the ability t attract and retain suitable human expertise in a variety f rles including analysis, creative, prgramming, applicatin specialists, testers, prductin peratrs, warehuse staff and s n. CCM Outsurcers have the scale, variety and vlume f wrk t ffer career paths t their persnnel and in ding s, attract and retain the necessary talent fr their businesses. Enabling systems, infrastructure, prcesses, plicies and standards. Beynd the prductin services that are prvided t deliver custmer cmmunicatin services, a range f ther capabilities are required t supprt a CCM platfrm, including MIS and jb tracking systems enabling jbs t be tracked and reprted n, IT rchestratin systems enabling jbs t be apprpriately cnfigured fr autmated prcessing, standard reprting envirnments, standard recnciliatin systems, warehusing and lgistics platfrms and s n. Cmmercial in Cnfidence 6

7 Key Cnsideratins when Outsurcing CCM in the Regin Depending n the industry that an rganisatin perates within and the cuntry where its custmers persnal data riginates frm, there will be different criteria that must be met befre the rganisatin can utsurce CCM services. Key cnsideratins when utsurcing: Regulatry versight. Many industries have specific regulatry bdies and framewrks that rganisatins must adhere t if they wish t cntinue prviding services within that industry. The mst stringent authrities are ften within the financial services market, whereby regulatrs insist that any utsurcer meet the minimum standards within the banking sectin. Fr the financial services market, assessment and permissin frm the relevant authrity will ften be required befre services can be utsurced t prve that the utsurcing rganisatin has the apprpriate cntrls in place t effectively manage an utsurcing vendr. Such authrities include Hng Kng Mnetary Authrity (HKMA), Mnetary Authrity f Singapre (MAS) and s n. Fuji Xerx has significant experience in assisting rganisatins meet the requirements f regulatrs and can wrk with yur rganisatin t streamline this prcess. Data svereignty. In many cuntries, it either is r is becming cmpulsry fr all custmer infrmatin t reside in the custmers cuntry f residence (fr example, in Taiwan, data svereignty laws cme int play in April 2016). This has a significant impact n reginal rganisatins that may in the past have cnslidated CCM prcessing t a single cuntry, r fr thse rganisatins that used ther cuntry capabilities fr disaster recvery and business cntinuity purpses. Fuji Xerx can assist businesses t cst-effectively address emerging data svereignty requirements by prviding access t in-cuntry utsurced CCM services thrughut the Asia Pacific. Persnal data privacy prtectin. Several cuntries in the regin have relatively recently implemented persnal data prtectin laws that bligate cmpanies that manage persnal data t prtect that data against accidental r unauthrised access. Secure prcessing f cnsumer data whether prvided thrugh internal r third party capability is critical. Chse a strng reginal prvider f services. If yur rganisatin perates acrss the regin, the direct and indirect csts f vendr management are significant. The selectin f a single strng prvider f services fr reginal activity prvides an pprtunity t reduce direct csts under a single master services agreement with agreed cmmercial rates and als prvides pprtunities t ptimise pstage csts in each cuntry. Indirect vendr management csts and the ability t standardise services, deliver imprvements t CCM reginally and cnslidate reprting acrss the entire regin are als significant benefits that prvide real cmpetitive advantage. Fuji Xerx is already a significant prvider f utsurced CCM services and is further extending its in-cuntry capabilities thrughut the Asia Pacific regin. The capabilities and ftprint f Fuji Xerx prvide the best pprtunity fr rganisatins t achieve success when utsurcing CCM activities fr the first time. Cmmercial in Cnfidence 7

8 Abut Fuji Xerx Dcument Management Slutins A divisin f the Fuji Xerx Grup, Fuji Xerx is a cmpany with a fcus n managing the ttal custmer experience enabling ur clients t deliver exceptinal custmer interactins in all their cmmunicatins, whilst reducing the cst f delivery and increasing sales. Our technlgy fr print and mail, electrnic dcument presentment, multi-channel delivery, dcument imaging and wrkflw management is recgnised as wrld class. Our systems, prcesses and technlgy nt nly supprt current business requirements but als prvide a framewrk fr business transfrmatin int the next generatin f digital services. Fuji Xerx manages ver 60% f Australia Pst s cmmercial mail vlumes, ver 30% f Hng Kng Pst s business transactinal mail, makes ver 3 billin dcuments available nline fr ur clients and ur clients custmers and delivers mre than 120 millin electrnic dcuments via web and annually. Fuji Xerx is expanding its services thrughut the Asia Pacific regin, taking advantage f the significant in-cuntry presence f the Fuji Xerx Grup already present in every cuntry in the regin. Fuji Xerx Dcument Management Slutins have been prviding utsurced CCM services fr ur clients in the Asia Pacific regin fr ver 30 years. During that perid f time, Fuji Xerx has helped many clients transitin frm insurced CCM slutins t best-f-breed utsurced CCM services. We lk frward t partnering with yu and helping yur rganisatin achieve its business gals. Visit us at Fuji Xerx Dcument Management Slutins Pty. Limited Fuji Xerx Dcument Management Slutins Asia Limited Fuji Xerx C., Ltd. Xerx,Xerx and Design, as well as Fuji Xerx and Design are registered trademarks r trademarks f Xerx Crpratin in Japan and/r ther cuntries and are used under license Fuji Xerx C., Ltd. All rights reserved.