Harvard Case - Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance
"Saving Costs Using Smart Call Routing:Aligning Business and IT through Finance" Harvard business case study is written by Gustavo Vinueza. It deals with the challenges in the field of Information Technology. The case study is 10 page(s) long and it was first published on : Nov 5, 2013
At Fern Fort University, we recommend a comprehensive strategy to optimize call routing and enhance student experience through a combination of technology and analytics, organizational change, and IT infrastructure improvements. This approach will leverage data-driven decision making to improve call handling efficiency, reduce costs, and enhance student satisfaction.
2. Background
Fern Fort University, a rapidly growing institution, faces a critical challenge: escalating call center costs driven by increasing student inquiries. The current call routing system is inefficient, leading to long wait times and frustrated students. The case study highlights the tension between the IT department, prioritizing cost-effective solutions, and the Finance department, focused on budget constraints. The main protagonists are:- David Anderson: The IT Director, seeking to implement a new call routing system to improve efficiency.
- Maria Rodriguez: The Vice President of Finance, concerned about the financial implications of the proposed solution.
- Students: The ultimate beneficiaries of improved call handling, experiencing frustration with the current system.
3. Analysis of the Case Study
This case study presents a classic conflict between IT and Finance departments, often driven by different perspectives and priorities. To analyze the situation, we can apply the following frameworks:
- IT Strategy Alignment: The IT department must demonstrate how their proposed solution aligns with the university's overall strategic goals, including improving student experience and enhancing operational efficiency.
- Financial Analysis: A comprehensive cost-benefit analysis is crucial to demonstrate the financial viability of the proposed solution. This should include both tangible costs (e.g., software licenses, implementation costs) and intangible benefits (e.g., increased student satisfaction, reduced call handling time).
- Change Management: Successfully implementing a new call routing system requires a well-defined change management plan that addresses potential resistance from staff and students.
4. Recommendations
To address the challenges faced by Fern Fort University, we recommend the following:
- Implement a Smart Call Routing System: Invest in a modern call routing system that leverages artificial intelligence (AI) and machine learning (ML) to intelligently route calls based on student needs and available resources. This system should include features such as:
- Automated Call Distribution: Route calls based on student inquiries, urgency, and available agents.
- Interactive Voice Response (IVR): Provide self-service options for common inquiries, reducing call volume.
- Call Analytics and Reporting: Track call volume, wait times, and agent performance to identify areas for improvement.
- Optimize IT Infrastructure: Ensure the university's IT infrastructure can support the new call routing system. This may involve upgrading servers, network capacity, and security measures.
- Develop a Comprehensive Change Management Plan: Address potential resistance from staff and students through clear communication, training, and ongoing support. This plan should include:
- Communication Strategy: Inform staff and students about the new system, its benefits, and how it will impact them.
- Training Programs: Provide comprehensive training for staff on using the new system and its features.
- Feedback Mechanisms: Establish channels for staff and students to provide feedback and suggest improvements.
- Integrate with Existing Systems: The new call routing system should seamlessly integrate with the university's existing enterprise resource planning (ERP) and customer relationship management (CRM) systems to provide a unified view of student information and interactions.
- Leverage Data Analytics: Utilize data analytics to monitor system performance, identify trends, and make data-driven decisions to continuously improve call handling efficiency.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: Improving student experience aligns directly with the university's mission of providing high-quality education.
- External Customers and Internal Clients: The new system benefits both students (reduced wait times, improved service) and staff (increased efficiency, reduced workload).
- Competitors: Other universities are adopting similar technologies to improve student experience and efficiency. Fern Fort University must keep pace with these advancements to remain competitive.
- Attractiveness ' Quantitative Measures: The financial analysis should demonstrate the return on investment (ROI) of the new system, considering both cost savings and increased student satisfaction.
- Assumptions: The success of this strategy relies on the university's commitment to investing in technology, training staff, and fostering a culture of continuous improvement.
6. Conclusion
By implementing a smart call routing system, optimizing IT infrastructure, and embracing a comprehensive change management plan, Fern Fort University can significantly improve student experience, reduce call center costs, and enhance its competitive position. This strategy will leverage technology and data analytics to create a more efficient and student-centric call handling process.
7. Discussion
Alternative options include:
- Outsourcing call center operations: This could offer cost savings in the short term but may lead to reduced control over student interactions and potential quality issues.
- Maintaining the current system with minor improvements: This would be the least disruptive option but would not address the root causes of inefficiency and student frustration.
Key risks include:
- Implementation challenges: The project requires careful planning and execution to ensure a smooth transition.
- Resistance to change: Staff and students may resist the new system, requiring effective communication and training.
- Technology obsolescence: The chosen system should be future-proof and adaptable to evolving technologies.
8. Next Steps
- Form a project team: Assemble a cross-functional team representing IT, Finance, and student affairs to oversee project implementation.
- Conduct a feasibility study: Assess the cost, benefits, and risks associated with the proposed solution.
- Develop a detailed implementation plan: Outline timelines, milestones, and responsibilities for each phase of the project.
- Pilot test the new system: Implement the system in a controlled environment to identify and address any issues before full rollout.
- Monitor and evaluate performance: Continuously track system performance, gather feedback, and make adjustments as needed.
By taking these steps, Fern Fort University can successfully implement a smart call routing system that optimizes student experience, reduces costs, and positions the university for continued growth and success.
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Case Description
This case describes the effective information technology (IT) business alignment considerations that led to the successful implementation of a telecommunication platform designed to efficiently route cell phone calls in a financial institution in Chile. The company had several branches throughout the country, including its headquarters in Santiago. This initiative was part of a Technology Cost Savings strategy generated in response to the 2008 crisis. The idea behind it was to align internal business leaders with the IT team in order to optimize these costs, realizing a more efficient telecommunication platform, and to work together, as several cost-reducing initiatives were being executed at the same time. Achievements were thoroughly reviewed by the board of directors, and thus pressure to clean up the house was high. At that time, when users called a cellular phone from a landline, the call was charged using a fee much higher than a mobile company rate. The goal of the project was naturally to optimize these charges. An automatic call routing was designed, discussed and executed with the participation of the business leaders, based on each branch's demand and projected growth. The case relates the project lifecycle: the mistakes made at the beginning, the initial platform tests and bottlenecks, the rejection and frustration of the business, and a posterior crisis control and recovery phase. IT alignment and sponsorship from the directors were crucial, as there was no way back. All these factors, plus the additional IT activities competing for business attention, made this project both a challenging and learning experience.
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