Proven Strategies for Transparent Collaborative Government Customer

Proven Strategies for Transparent,

Collaborative Government

Customer Services

© 2009 RightNow Technologies, Inc.

Customer Services

Ben Madgett, Senior Analyst, Public Sector & Vertical

Markets Technology, Datamonitor Inc.

Daniel Schaub, Sr. Web Manager & Acting Director for

Digital Communications, U.S. Department of State

August 4, 2009

Agenda

Improving Efficiency and Transparency in

Constituent Service Through CRM

Case Study: US Department of State


Q&A

About RightNow

RightNow has been successfully serving

the US Government for over 10 years with

over 160 public sector clients including

nearly every US cabinet level agency,

over 20 states, members of the

Intelligence Community, the Army,


Intelligence Community, the Army,

Marines, Air Force and DoD.

RightNow is continually investing in the

next generation of SaaS-delivered

solutions with dedicated hosting for the

US Department of Defense and US Civilian

Government

More Than 160 Government Customers

© 2009 RightNow Technologies, Inc.© 2008 RightNow Technologies, Inc.

RightNow Customers Set the Standard


Improving Efficiency and Transparency in Constituent Service Through CRM

Ben Madgett

August 4th, 2009

© Datamonitor

the home of Business Intelligence

innovative deliveryexpert analysisquality data

© Datamonitor

August 4 , 2009

Overview

• In today’s economic climate, governments are under intense pressure to do

even more with even less. Agencies are faced with tight budgets, while at

the same time constituents are relying more heavily on public agencies for

everything from social services to corporate bailouts. As a result,

government agencies are examining strategies to increase efficiency and

reduce costs, from back-office functions to constituent-facing tasks, by

the home of Business IntelligenceImproving Efficiency and Transparency in Constituent Service Through CRM

© Datamonitor

reduce costs, from back-office functions to constituent-facing tasks, by

outsourcing functions such as application management, IT infrastructure and

business processes.

7

Agenda

• The Challenge

• The Solution

• The Way Forward


© Datamonitor

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Improving customer service

• The Challenge

– Tight budgets

– Resource constraints

– Constituent expectations

• The Solution


© Datamonitor

• The Solution

• The Way Forward

9

3 in 4 agencies will see their IT budget decrease from 2008-2009 as the economic crisis results in reduced tax bases

IT budget change 2008-09

35%36%

23%

2008 IT budget

$1m -$5m

17%

<$250,000

36%

$10m -$50m

6% $5m -$10m

3%

>$50m

1%


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5%

23%

1%

Decreased

more than -

6%

Decreased

slightly (1%-

5%)

Flat (0%) Increased

slightly (1-

5%)

Increased

significantly

(6%+) n=150

$250,000-

$499,999

24%

$500,000-

$999,999

13%

17%

Source: Datamonitor

The primary reasons for outsourcing reflect the increased pressures on IT departments that cannot handle additional tasks

What is the primary reason for outsourcing in your agency?

16%

17%

Lack of human resources

IT and services department already working at full

capacity


© Datamonitor

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11%

11%

14%

Need to provide higher quality services to constituents

Pressure to reduce IT costs

Need to ensure IT resources focus on achieving core

strategic goals

n=87% of respondents that outsource or plan to outsource a

percentage of their IT infrastructureSource: Datamonitor

Tough economic times have led to an increase in demand for government services

Bank bailoutsIncreased need

for social services

Healthcare concerns

Higher crime rates


© Datamonitor

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Phone, email, web, walk-in, SMS, chat


• The Challenge

• The Solution

– Outsourcing IT helps agencies reduce operating costs and allows them to focus

on core tasks

– Application hosting, IT outsourcing, BPO


© Datamonitor

– Application hosting, IT outsourcing, BPO

– Evolution of the market

• The Way Forward

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Outsourcing plays a key role in government, with nearly six in 10 agencies contracting out some aspect of their IT infrastructure

What percentage of your IT infrastructure do you currently outsource?

9%

8%

50-74%

More than 75%


© Datamonitor

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42%

26%

15%

We do not outsource any of our

IT infrastructure

Less than 25%

25% - 49%

n=150% of respondentsSource: Datamonitor

Overall, application hosting is the most common technology area outsourced by government agencies

What specific IT areas do you currently outsource or do you plan to outsource?

We have no plans to

outsource this area

We plan to outsource

this area in more than

24 months



© Datamonitor

1515

App

licat

ion

host

ing

Web

site

hos

ting

Net

wor

k m

anag

emen

tIT

sec

urity

Cal

l cen

ters

On-s

ite h

ardw

are

mai

nten

ance

Dat

a pro

cess

ing

Hel

p des

k

Geo

graph

ic in

form

atio

n sy

stem

s

Tax

& re

venu

e co

llect

ion

Tele

com

s

Procu

rem

ent/p

urch

asin

g

Fina

ncia

l/acc

ountin

g fu

nctio

ns


this area in 12 to 24

months


this area within 12

months

We currently

outsource this area


percentage of their IT infrastructureSource: Datamonitor

Outsourcing has evolved over time to incorporate higher value functions

• Basic admin is already shared

• Consolidating IT is cost driven

• Administrative functions higher up the chain

Customer facing functions

Call centers

Tax collection

Administrative functions

Co

mp

lexity o

f fu

nctio

n


© Datamonitor

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up the chain

• Citizen facing functions are more sensitive for the organization

Source: Datamonitor

Tax collectionfunctions

Human Resources

Financials

Procurement

Development of outsourcing over time

Co

mp

lexity o

f fu

nctio

n

Basic IT consolidation

Datacenters

NetworkingBasic

Administrative

Payroll

Pensions admin


• The Challenge

• The Solution

• The Way Forward

– What functions are most likely to be outsourced?

– The challenges of outsourcing


© Datamonitor

– The challenges of outsourcing

– CRM in the cloud

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Types of function and their correspondence with the criteria for success in outsourcing

Non-coreWidely used Automatable High cost

Basic administrative

Basic IT consolidation


© Datamonitor

18

Department specific functions

Core administrative functions

Customer facing functions

High correspondence Some correspondence Low correspondence

Source: Datamonitor

The need to maintain quality control, often defined by regulation, is the key challenge for IT outsourcing in government

What challenges does your jurisdiction face when outsourcing IT?

22%

23%

Compliance with government

regulations

Concerns regarding quality

control


© Datamonitor

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16%

17%

19%

Political sensitivities

Objections from labor unions

Security breaches

regulations


percentage of their IT infrastructure

Source: Datamonitor

Best of both worlds: CRM in the cloud

• As the outsourcing market develops, governments have become better-

informed buyers and vendors better understanding client needs

• Governments increasingly becoming comfortable with the cloud

• Benefits of CRM in ‘the cloud’:

– Lower maintenance costs


© Datamonitor

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– Lower maintenance costs

– Easy customization and upgrades

– Shorter-term deals

Key public sector technology analyst contacts

Ben Madgett

Senior Analyst

t: (212) 652-5324

[email protected]

Ruchi Mallya

Nicole Engelbert

Lead Analyst

t: (212) 652-5301

[email protected]

Christine Chang


© Datamonitor

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Ruchi Mallya

Analyst

t: (212) 652-5319

[email protected]

Christine Chang

Analyst

t: (212) 652-5343

[email protected]

Case Study

U.S. Department of State


U.S. Department of State

Daniel SchaubSr. Web Manager & Acting Director for Digital Communications

About the Agency

Mission: Advance freedom for the benefit of the

American people and the international community by

helping to build and sustain a more democratic,

secure, and prosperous world composed of well-

governed states that respond to the needs of their

people, reduce widespread poverty, and act


people, reduce widespread poverty, and act

responsibly within the international system.

Over 30,000 staff at over 190 posts around the

world.

The Digital Communications Center

Daniel’s Role

– Director for Digital Media

– Sr. Web Manager (state.gov)

Digital Communications Center


Digital Communications Center

– Manages Department presence on Facebook,

YouTube, Flickr, Vimeo, Hi5, Orkut, etc...

– Manages video for state.gov and other websites

– Manages “Text the Secretary” and”Ask the

Ambassador”

Why CRM?

Recent mandates to increase agency:

– Efficiency

– Transparency


– Collaboration / Engagement

Urgent need to address citizen email:

– 1000’s of incoming emails daily

– Up to 2 week response times

Self-Learning Knowledge Foundation

24/7 Web Self-Service

– Quickly and easily answer repetitive questions such

as “how to obtain a visa or passport”

Office of Public Liaison can now:


Office of Public Liaison can now:

– Focus on more complex issues

– Update the knowledge base with timely content

– Address inquiries quickly and consistently

– Route questions to experts

Self-Learning Knowledge Foundation


Web 2.0 In Action

Text the Secretary

Ask the Ambassador


Online Forums allow citizens to connect

Real-time interaction while Secretary Clinton

travels the world

Getting Results

Highly responsive to constituents:

Reduced incoming inquiries by 70%

Reduced turn around time by 50%


Better service even with limited staff:

Advertise upcoming trips

Two-way communication

Why RightNow?

Easily customizable

– Quickly customize web pages, question forms and

back end fields for workflow

Highly Scalable


Highly Scalable

– Seamlessly grows with the agency’s needs

Hosted Solution

– On Demand/SaaS implementation reduces overhead

Advice from Daniel

1. Be willing to set aside ample time for initial

set-up. Stay flexible as application evolves.

2. Thoroughly train staff from day one.


3. Find innovative means to allow your

organization to step away from “behind the

podium” and engage public directly ...with

limited staff.

Learn More

Online Resource Center: http://www.rightnow.com/resource.php

– Flash demos, White Papers, Data Sheets, Flash Demos, Research & Analysis,

Slideshows, Videos and more, including:

• Governing in a Time of Change: Five Ways to Improve Constituent Services

• Decision Matrix: Selecting a CRM Vendor in Government

• The New Government Agency Contact Center

• US Environmental Protection Agency Video

• 8 Steps to Improve Customer Experiences Video


• 8 Steps to Improve Customer Experiences Video

In person:

– RightNow Summit

October 27 – 28, 2009, The Broadmoor, Colorado Springs, CO

www.rightnow.com/summit

– Government Customer Service Conference & Expo, Digital Government Institute

December 3, 2009, Washington, DC

http://www.digitalgovernment.com/Events/Conferences/Government-Customer-

Service-Conference--Expo.shtml

Contact Us: http://www.rightnow.com/company-contact.php© 2008 RightNow Technologies, Inc.

Questions?


Proven Strategies for Transparent Collaborative Government Customer

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