ABSTRACT Workforce Management Product and Market Report

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1 ABSTRACT 2016 Workforce Management Product and Market Report 1

2 DMG Consulting s 9th annual Workforce Management Product and Market Report provides the most thorough and detailed overage of this technology sector. The 381-page report contains comprehensive vendor, product, trend and market data to guide contact center, back-office and IT leaders in selecting the right WFM solution for their organization, and explains how to achieve a successful implementation and a rapid ROI. Please contact Deborah Navarra at or with any questions. To order your copy of the report, visit 2

3 2016 is poised to be a breakthrough year for the workforce management (WFM) market vendors are introducing innovation and end users are investing in their future year was a good one for the WFM market. The number of WFM seats increased in 2015 by 10.6%, and the number of customers by 7.7%. The market is positioned for even greater growth in 2016, as a new generation of WFM solutions comes to market with capabilities and features that address the traditional needs of contact centers as well as the requirements of back offices and branches. Another factor driving market growth is the availability of WFM capabilities in the cloud, making these solutions attractive and easy to access for businesses large and small, in all verticals. In a global economy, where customers and employees may be located in many sites across the globe, business needs are increasingly complex. Enterprises are employing workers in multiple geographies, some with unique work rules and region-specific staffing requirements. Customers from around the world are reaching out to companies in an expanding number of channels. They expect an easy and high-quality user experience, and companies have to be staffed with highly skilled employees who can address customers needs in their channel of choice. Sophisticated omni-channel WFM solutions are a must-have to address the need for a seamless experience and consistently outstanding journey for customers, regardless of the medium of communication. There is a tremendous opportunity to use WFM in back offices and branches. These environments have unique needs that cannot be properly addressed with traditional contact center WFM solutions. The new generation of WFM offerings is using algorithms and functionality tailored to address issues like deferred work and backlog, which are characteristic of back-office activities. The WFM vendors are developing work allocation and management modules that track work as it flows through back-office departments. Making this data available to WFM systems enables companies to forecast future volumes correctly and staff their back and front offices appropriately. WFM solutions are evolving to meet the needs of the Millennial workforce. Innovative features are helping address this generation s need for work/life balance. Self-service capabilities are empowering employees to take an active role in managing their schedules. Intraday management capabilities allow companies to remain fully staffed with skilled resources, despite any last-minute changes in employee schedules and workload. These solutions also help to optimize frontand back-office activities by taking advantage of downtime in contact centers. Enhanced flexibility in scheduling, a hallmark of the new WFM solutions, increases employee engagement and satisfaction and improves productivity for companies; everyone wins employees, enterprises and customers. DMG expects the number of seats in the WFM market to increase by 11% in 2016, 2017 and 2018, and by 12% in 2019 and It s possible that the revenue in the WFM sector will grow more quickly than seats, as vendors introduce and sell innovative capabilities like intraday management and mobility to the market. The greatest potential for revenue expansion comes from sales of back-office and branch WFM solutions. If the vendors figure out how to communicate the benefits of using WFM in these operating areas and can open up these market opportunities, the growth rates will likely exceed DMG s expectations. The 2016 Workforce Management Product and Market Report provides an indepth analysis of the contact center WFM market, competitors, suites, competitive landscape, innovation, end-user satisfaction, as well as market, business and servicing trends and challenges. It also analyzes WFM market activity and provides 5-year market projections. The Report explores the growing back-office and branch WFM market opportunities, and applications that will drive future market growth. Nine leading and contending vendors are covered: Aspect, Calabrio, incontact, Interactive Intelligence, Intradiem, NICE, Teleopti, Verint and WorkFlex. incontact, Intradiem and WorkFlex are covered at a higher level. 3

4 Key Elements of This Report Overview of the enterprise WFM market segments Explanation of the characteristics and capabilities of the core, value-added and optional components of the top WFO suites, including a high-level comparative analysis of the WFM suites offered by the 9 featured solution providers Review of service delivery options available for WFM solutions, and the advantages and drawbacks of each Discussion of recent innovations in WFM functionality, as well as enhancements that are planned to be delivered in the next months Examination of the trends and challenges that are driving investments by enterprises and WFM vendors, including staffing for a global economy and the needs of the Millennial workforce Exploration of the top market, business and servicing trends including omnichannel environments and the push for agent engagement and empowerment and how WFM is addressing these needs Analysis of the new WFM intraday management capabilities and their ability to provide enhanced scheduling flexibility Examination of forecasting accuracy, and how the solutions are handling the differing needs of front and back offices Analysis of the back-office and branch capabilities of the featured WFM suite providers WFM market activity and market share analysis, adoption rate, and 5-year projections for Review of the WFM competitive landscape Company snapshots and product overviews for the 6 featured WFM vendors, including a high-level functional and technical summary Analysis of the return on investment (ROI) and the benefits enterprises should expect to realize from a successful WFM implementation Implementation analysis, including vendor best practices, maintenance and support policies, workshops, training and professional services Comprehensive vendor satisfaction survey results that measure and rank vendor approval ratings across 24 product components and 11 vendor categories Vendor pricing analysis for on-premise and cloud-based 250-seat WFM implementations In-depth, side-by-side comparative analyses of the key functional and technical capabilities of the 6 leading and contending WFM vendors covered in detail in this Report Company reports for the 9 leading and contending vendors, analyzing their products, functionality and future product development plans Comprehensive WFM Vendor Directory, featuring contact center and back-office WFM competitors 4

5 Report Highlights Market momentum is strong and expected to increase: In 2015, the number of WFM seats increased by 10.6%, and the number of customers by 7.7%. DMG expects the market to increase by 11% in 2016, 2017 and 2018, and by 12% in 2019 and Enterprises large and small appreciate the importance of using WFM solutions that help them better engage and satisfy their employees while improving productivity and customer satisfaction. Forward-thinking companies are investing in their future, particularly now that they can acquire WFM capabilities much more easily in the cloud. Innovations in WFM are addressing the needs of the Millennial generation: The work/life balance is of critical importance to Millennial workers. WFM solutions that incorporate self-service and intraday management features provide a competitive advantage in hiring and staff satisfaction by offering flexibility in scheduling and enabling employees to manage their shifts. Mobility features that address the needs of today s global, on-the-go workforce empower employees to control their own scheduling destiny. These innovations are enhancing productivity and can make organizations employers of choice. Vendors are recognizing the critical importance of providing an outstanding user experience throughout the customer journey: Customer loyalty and retention are critical business goals, particularly in a challenged economy. WFM solutions can enhance the customer experience by ensuring that organizations have the right resources to deliver an outstanding omni-channel service experience. And the benefits are even better when WFM solutions are extended to back-office and branch networks. 5

6 SAMPLE FIGURE Contact Center WFM Building Blocks Source: DMG Consulting LLC, March

7 TABLE OF CONTENTS 1 of 2 1. Executive Summary 2. Introduction 3. DMG Consulting Research Methodology 3.1 Report Participation Criteria 4. Workforce Management Market Segments 4.1 WFM Vendor-Supported Market Segments 5. Workforce Management Functional Building Blocks 5.1 Core, Value-Added, Optional 5.2 High-Level Technical Summary Security System Administration Integration Capabilities 6. Vendor Service Delivery Models 6.1 DMG Service Delivery Definitions 6.2 Vendor Service Delivery Options 7. Workforce Management Trends and Challenges for WFM Trends for WFM Challenges for Workforce Management Market Innovation 8.1 New Product Features 8.2 Emerging Capabilities 9. WFM Fundamentals 9.1 Forecasting 9.2 Scheduling 9.3 Intraday Management 9.4 Intraday Management Automation 9.5 Shrinkage 9.6 Real-Time Adherence 9.7 Long-Term Planning and Budgeting 9.8 Dashboards and Reporting 10. The Mission-Critical Role of WFM in Enterprises 10.1 Globalization 10.2 Omni-Channel Operating Environments 10.3 Algorithms to Support Omni-Channel Forecasting 10.4 Multi-Skill 11. The Engaged and Empowered Workforce 11.1 Self-Service 11.2 It s Time to Empower Your Agents with Scheduling Autonomy 11.3 Gamification 11.4 Work/Life Balance Management 11.5 Employee Feedback Management 11.6 Self-Directed Performance Management 7

8 TABLE OF CONTENTS 2 of The Back-Office Becomes Front-of-Mind 12.1 Benefits of Back-Office/Branch WFM 12.2 Back-Office WFM ROI 13. Workforce Management Market Activity Analysis 13.1 Validating Market Numbers 13.2 WFM Market Share Analysis 14. Workforce Management Market Adoption 15. Workforce Management Projections 16. Contact Center Workforce Management Competitive Landscape 17. Workforce Management Vendors and Solutions 17.1 Company Snapshot 17.2 Vendor Offerings and Products 17.3 SMB Solutions 18. Workforce Management Benefits and Return on Investment 18.1 Contact Center WFM Benefits 18.2 Contact Center ROI Analysis 19. Implementation Analysis 19.1 Implementation Process 19.2 Implementation Best Practices 19.3 Training and Services 19.4 Maintenance and Support 20. Pricing 20.1 Premise-Based Price Range, by Solution 20.2 Premise-Based Pricing 20.3 Cloud-Based Pricing 20.4 Cloud-Based Pricing for Incremental WFM Modules 21. Workforce Management Vendor Satisfaction Analysis 21.1 Summary of Survey Findings and Analysis 21.2 Detailed Survey Findings and Analysis 21.3 Customer Insights 22. Company Reports 22.1 Aspect Software Inc Calabrio 22.3 incontact, Inc Interactive Intelligence, Inc Intradiem 22.6 NICE Systems 22.7 Teleopti AB 22.8 Verint Systems 22.9 WorkFlex Solutions LLC Appendix: Workforce Management Vendor Directory 8

9 TABLE OF FIGURES 1 of 3 Figure 1: WFM Market Segments Figure 2: WFM Market Segments Supported, by Vendor Figure 3 Contact Center WFM Building Blocks Figure 4: High-Level Technical Summary Figure 5: Security Figure 6: System Administration Figure 7: Integration Capabilities Figure 8: Service Delivery Models, Advantages and Disadvantages Figure 9: DMG s Service Delivery Model Definitions Figure 10: WFM Vendor Service Delivery Options Figure 11: 2016 WFM Trends Figure 12: 2016 WFM Challenges Figure 13: New Product Features, by Vendor Figure 14: New Product Features, by Category Figure 15: Future Application Enhancements, by Category Figure 16: Forecasting Figure 17: Scheduling Figure 18: Intraday Management Figure 19: Intraday Management Automation Figure 20: Shrinkage Figure 21: Real-Time Adherence Figure 22: Long-Term Planning and Budgeting Figure 23: Dashboards and Reporting and Analytical Capabilities Figure 24: Globalization Figure 25: Omni-Channel Functionality Figure 26: Omni-Channel WFM Capabilities Figure 27: Algorithms Figure 28: Multi-Skill Capabilities Figure 29: WFM Features that Promote Engagement and Empowerment Figure 30: Flexible Scheduling Practices Figure 31: Agent Self-Service Figure 32: Gamification Figure 33: Work-Life Balance Figure 34: Employee Feedback Figure 35: Self-Directed Performance Management Figure 36: Back-Office Share of US Gross Domestic Product Figure 37: Back-Office WFM Solution Building Blocks Figure 38: Back Office/Branch WFM Capabilities Figure 39: Back-Office/Branch WFM Benefits Figure 40: Back-Office WFM Benefits Figure 41: Return on Investment (ROI) Figure 42: WFM Market Activity, as of December 31, 2015 Figure 43: Intraday Management Market Activity by Vendor, as of December 31,

10 TABLE OF FIGURES 2 of 3 Figure 44: Intraday Management Market Activity by Vendor, 2015 vs 2014 Comparison, as of December 31, 2015 Figure 45: WFM Market Share by Number of Seats, as of December 31, 2015 Figure 46: WFM Market Share by Number of Seats, as of December 31, 2015 Figure 47: Total Number of WFM Seats, 2015 vs Comparison Figure 48: Total Number of WFM Seats, Trends Figure 49: WFM Projections, Figure 50: Company Information as of December 31, 2015 Figure 51: Product Modules Figure 52: Small and Mid-Sized WFM Offering Figure 53: Benefits of WFM Solutions Figure 54: Return on Investment (ROI) Figure 55: Return on Investment (ROI) Figure 56: Implementation Analysis Figure 57: Implementation Analysis Figure 58: Training, Documentation and Professional Services Figure 59: Maintenance and Ongoing Support Figure 60: 2016 Premise-Based Price Ranges By Solution Figure 61: Pricing: Enterprise Pricing for a Single-Site, 250-Seat Contact Center; Premise-Based WFM Solution Figure 62: Pricing: Enterprise Pricing for a Single-Site, 250-Seat Contact Center; Premise-Based WFM Solution Figure 63: Pricing: Enterprise Pricing for a Single-Site, 250-Seat Contact Center; Cloud-Based Figure 64: Pricing: Enterprise Pricing for a Single-Site, 250-Seat Contact Center; Cloud-Based Figure 65: Customer Survey Rating Categories Figure 66: Average Satisfaction Ratings, by Category Figure 67: Product Satisfaction Ratings, by Category Figure 68: Ease of System Configuration and Set-up Satisfaction Ratings, by Customer Figure 69: Ease of Ongoing Use and Maintenance Satisfaction Ratings, by Customer Figure 70: Ease of Integration with Third-Party Applications Satisfaction Ratings, by Customer Figure 71: Ability to Customize the User Interface Satisfaction Ratings, by Customer Figure 72: Forecasting Accuracy Satisfaction Ratings, by Customer Figure 73: Scheduling Features and Effectiveness Satisfaction Ratings, by Customer Figure 74: Omni-Channel Forecasting and Scheduling Satisfaction Ratings, by Customer Figure 75: Intraday Management Capabilities Satisfaction Ratings, by Customer Figure 76: Real-Time Adherence Features Satisfaction Ratings, by Customer Figure 77: Agent Self-Service Features Satisfaction Ratings, by Customer Figure 78: Time-Off Management Features and Functionality Satisfaction Ratings, by Customer Figure 79: Mobile Capabilities Satisfaction Ratings, by Customer Figure 80: Gamification Capabilities Satisfaction Ratings, by Customer Figure 81: Long-Term Planning Capabilities Satisfaction Ratings,by Customer Figure 82: Budgeting/Cost Management Capabilities Satisfaction Ratings, by Customer Figure 83: Timekeeping and Payroll Management Features Satisfaction Ratings, by Customer Figure 84: Back-Office/Branch Functionality Satisfaction Ratings, by Customer Figure 85: Dashboards Satisfaction Ratings, by Customer Figure 86: Reporting Satisfaction Ratings, by Customer 10

11 TABLE OF FIGURES 3 of 3 Figure 87: Figure 88: Figure 89: Figure 90: Figure 91: Figure 92: Figure 93: Figure 94: Figure 95: Figure 96: Figure 97: Figure 98: Figure 99: Figure 100: Figure 101: Figure 102: Figure 103: Figure 104: Figure 105: Figure 106: Figure 107: Figure 108: Figure 109: Figure 110: Figure 111: Figure 112: Figure 113: Figure 114: Figure 115: Figure 116: Figure 117: Figure 118: Figure 119: Globalization Features Satisfaction Ratings, by Customer Product Effectiveness Ratings, by Category Ability to Improve Agent Utilization/Occupancy Satisfaction Ratings, by Customer Ability to Improve Productivity Satisfaction Ratings, by Customer Ability to Automatically Identify Optimal Solutions to Intraday Issues and Variances Satisfaction Ratings, by Customer Ability to Manage Shrinkage Satisfaction Ratings, by Customer Ability to Identify Agent Performance Opportunities Satisfaction Ratings, by Customer Ability to Improve Agent Engagement and PerformanceSatisfaction Ratings, by Customer Ability to Reduce Overstaffing/Understaffing Satisfaction Ratings, by Customer Ability to Route Interactions to the Right Agent at the Right Time Satisfaction Ratings, by Customer Ability to Identify Agent Skill Gaps and Project Agent Skill Requirements Satisfaction Ratings, by Customer Ability to Support Complex and Varied Global Work RulesSatisfaction Ratings, by Customer Ability to Support Blended Channels Satisfaction Ratings, by Customer Ability to Support Agent Preferences Satisfaction Ratings, by Customer Ability to Support Recruitment/Hiring/Training Capabilities Satisfaction Ratings, by Customer Current Product Satisfaction Ratings, by Customer Implementation Satisfaction Ratings, by Customer Training Satisfaction Ratings, by Customer Professional Services Satisfaction Ratings, by Customer Ongoing Service and Support Satisfaction Ratings, by Customer Product Innovation Satisfaction Ratings, by Customer Responsiveness to Product Enhancement Requests Satisfaction Ratings, by Customer Vendor Communication Satisfaction Ratings, by Customer Pricing Satisfaction Ratings, by Customer Overall Vendor Satisfaction Ratings, by Customer What activities do you use your WFM vendor to support? What channels do you use your WFM vendor to support? What are the top 3 5 challenges that you were hoping toovercome with the WFM solution? What are the top 3 5 benefits you have gained from using the WFM solution? Please tell us the top 3 5 strengths of your WFM solution. Please tell us the top 3 5 challenges of your WFM solution. What product enhancements would you like to see? Please feel free to provide any additional comments about your experience with the vendor and/or product. 11

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