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03.06.06


Risk of Investment

By Paul Doughty

The standard definition of the word ‘risk' is "the possibility of loss or injury." However, an alternative meaning that is much more relevant to the world of enterprise software is "the variability of returns from an investment." There isn't a single organization that authorizes a technology purchase without some assurance of ROI and yet the majority of companies fail to properly identify and minimize risks in order to maximize return. These risks come in a variety of forms - internal risks, vendor risks, IT risks, market risks, etc. - and each needs to be carefully evaluated as part of the overall ROI equation.

This is particularly important when evaluating customer service solutions, as they extend across numerous applications and departments across the enterprise. By moving beyond a single, dogged focus on costs, companies can more accurately calculate the return on their investments. Key risk assessments include:

Organizational risks. This involves assessing the company's own ability to undertake the project. First, consider implementation timing in terms of available resources and skill sets. Next, take an objective look at organizational readiness. A customer service strategy may involve an evolving business model through a chain of various processes and organizations with the company, from HR to accounting to marketing to distribution. Be sure the company is ready to undertake the magnitude of change required for this far reaching a project. Solicit input from senior managers and strategic planners to ensure the project is congruous with the objectives of the organization. Aligning customer service goals with overarching corporate goals lessens the chance of project dollars being pillaged for other initiatives.


Another important consideration often overlooked is user acceptance. Lack of user commitment occurs when employees aren't convinced of the need for a customer service technology strategy and implementation. Gaining user buy-in is a good way to ensure that all critical processes are incorporated into the software. In addition, users that are involved early on often become the greatest advocates, adopting the new technology immediately.

The likelihood of acceptance can be difficult to gauge up front. Fortunately, there are many steps you can take to minimize organizational risk. One large financial company took numerous proactive steps to ensure a commitment across multiple departments. First, the implementation was accompanied by a high-profile internal communications campaign, which included a count down calendar designed to build anticipation ahead of the go-live date. More importantly, employees were invited to visit the physical space where the customer service system was being set up so they could see firsthand what was being implemented and why. Staff members were given a chance to navigate around the software, which was customized to reflect the well-known look and feel of the existing business, and provide instant feedback and new ideas. Team feedback sessions were held four weeks prior to go-live to make sure all necessary solutions were deployed.

To manage customer service projects effectively, set tangible benchmarks and keep stakeholders informed as each are met. Follow a phased approach to implementation. This has two benefits. First, it gives users an opportunity to learn and adapt to new processes in stages. Second, and more importantly, it provides an opportunity to demonstrate early successes as incremental metrics are achieved.

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About the Author:
Oneupweb is the only two-time winner of the ClickZ award for "Best Search Engine Engine Marketing Firm". StraightUpSearch´s blog authors include experts from Oneupweb´s natural SEO, pay-per-click campaign management, research, marketing, design, and sales departments.

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