Customer Service Software System Business Case Lead Officer:
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- Norma Curtis
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1 Agenda item: 17 Committee: CABINET Date of meeting: 21 November 2012 Subject: Customer Service Software System Business Case Lead Officer: Head of ICT Portfolio Holder: Resources - Councillor T Oliver Link to Council Priorities: All Exempt information: None Delegated status: For Resolution Key decision: N/A EXECUTIVE SUMMARY: The council has a vision of what customer services will look like at Elmbridge by A key enabler for this vision will be the successful implementation of a new Customer Relationship Management (CRM) software system. A CRM system is critical for customer services because it provides the tools to support the customer service centre, online transactions via the Council website, face to face transactions via the reception desk and brings together numerous council services in a single location. As part of the ICT Development Programme for 2012/13 the Head of ICT submitted a capital bid for the implementation of a new CRM system, this was agreed subject to approval through a business case. The Council has earmarked 250,000 capital investment for CRM in This reports sets out the business case for the CRM investment. RECOMMENDATIONS: THIS REPORT RECOMMENDS THAT CABINET ENDORSE THE FOLLOWING: (A) THE BUSINESS CASE FOR A CUSTOMER RELATIONSHIP MANAGEMENT SOFTWARE SYSTEM; (B) USE OF CAPITAL FUNDING AS SET OUT IN THE INVESTMENT PROFILE; (B) PROCUREMENT OF A PARTNER TO IMPLEMENT MICROSOFT DYNAMICS CRM USING A GOVERNMENT PROCUREMENT FRAMEWORK REPORT: 1. The Development of Customer Services in Elmbridge 1.1 The vision for customer service in Elmbridge is to move from a service provider focus where customers have to make multiple contacts to get the services they need to a customer focus where services join up so that customers can get the services they need in a single contact
2 This enables the Council to deliver brilliant customer service every time. Change is essential because the current council cost base is likely to become unsustainable in the medium to long term. In addition, we need to become more resilient and agile for the challenges ahead. Most local authorities have moved to CRM type systems or developed their own. In this respect, Elmbridge is a late adopter of the available technology. The customer service developments will deliver the following benefits to our Customers: One reception desk Offers a clear and simple single point of access Improving consistency and quality of service Reducing repetition and wasted multiple contacts Quicker response for some basic queries Provide a single view of services and interactions with the Council Ability to access services online 24 hours a day, 7 days a week, 365 days a year Eliminates need for face to face basic queries Brings together information about the Customer from multiple sources in the Council into a single place helping us to help our customers 1.2 What is CRM? One telephone number One Council One postal address One website CRM is a software application that gives the Council a customer centred perspective where all information and services are personalised and built around the needs of the customer. It does this by integrating with back office systems so that the Council gets a joined up view of all transactions between the Council and its customers. CRM is used by staff who are in direct contact with the customer in order to log contacts, known as service requests. The CRM system can post service requests to the back office electronically. This means that contact centre staff can log calls on behalf of all departments to provide information, process faults via contractors, make diary appointments, such as Building Control Inspections or Pest Control. CRM will also integrate with online services to ensure the Council has a complete overview of all access channels (channel route a customer uses to contact the council such as web, phone or reception)
3 1.3 Why is CRM Critical? CRM will sit at the heart of the customer service set-up as follows: Customers Reception Website Phone Post Applications CRM Customer Service Support Apps:, GIS, Website, Intranet, Document Management... Corporate Apps: Financials, HR, performance management Back Office Apps: Council Tax, Planning, Building Control, Environmental Health etc. Service Delivery: Partners Service Delivery: Council CRM will deliver the following benefits to the council: Single view of the customer so we can provide a range of services, in partnership with council departments. This includes a single view of the interactions a Customer as with the Council. Ability for the customer to track service requests and check for updates without the need to phone/visit Linking to the council s address gazetteer (Local Land and Property Gazetteer - LLPG) so we know all about services provided to a property (e.g. refuse and recycling) and any issues reported. Rationalisation of IT systems and the use of tools like spreadsheets and databases. This will make it much easier to manage how we support customers and provide a joined up view across the council
4 Automation of business processes which will improve the service we provide to our customers and facilitate cost savings. Channel migration and integration Using the website and integrated online forms directly with council services. Having improved information about our customers and the access channels that they are using. Improved Information Management and Security reducing the number of systems, spreadsheets and databases reduces the risk of data loss. Improved information about our customers. Provide the ability to deliver personalised services to customers making them feel valued. Cross promotion of Council Services to provide the ability to suggest other services based on information known about our Customers. 1.4 What are the key requirements for CRM? Key CRM requirements for Elmbridge will include: Confidence for the council that the CRM solution will deliver: o Required functionality at an affordable price fit for purpose o An excellent experience for those using the system o A comprehensive training package o Clarity about the total cost of ownership o Improved Customer Service for Residents/Business. o A consistent approach to customer services across the Council - eg the use of standard Service Level Agreements for key processes o A flexible reporting and information management to deliver specific performance outcomes for the Council Comprehensive support and development model offering: o A wide choice of partners from whom Elmbridge will be able to source assistance for support and development of the CRM o Lower cost development o Options for how support and development is done (e.g. in-house, in partnership with other Councils or by using a third party) Integration to include: o Any CRM needs to be a good fit for the technology set-up at Elmbridge o The CRM needs to be able to integrate in a straightforward and cost effective way with other Council systems o Good links to existing online services, in particular Achieve Forms and public website o Decisions for integration to be based upon business cases to ensure that spend is targeted to the highest impact processes. Opportunities for partnership working: o Continuing the work with the Shared Head of ICT with Epsom and Ewell o Making the most of shared development, support and hosting opportunities in partnership with other councils
5 1.5 What are the options for Elmbridge? The Council has two options for CRM solutions: 1. Purchasing an established package solution 2. Developing an in-house solution from scratch or customising an open source solution Whilst a number of Councils have either developed their own CRM or customised a shared system, and this approach can be successful it relies on a large in-house support and development team. It would therefore not be appropriate for Elmbridge. A number of London Boroughs and neighbouring boroughs have implemented or are implementing Microsoft Dynamics CRM. Microsoft CRM is a lower cost product (when compared to alternatives in the marketplace). The Council will have the choice of a range of development partners. Also, there will be an opportunity to learn from the experience of other Surrey Districts (e.g. Guildford, Epsom and Ewell and Reigate & Banstead) who have adopted Microsoft CRM. The solution is also an excellent fit to the ICT set-up at Elmbridge. It also provides the Council with the ability to customer processes specifically for its services. The Shared Head of ICT has already undertaken a full competitive tender exercise at Epsom and Ewell for a CRM system. A wide range of CRM systems and suppliers were part of this process and the team at Epsom spent a lot of time analysing the responses, taking up references and site visits. The result of this was that Microsoft Dynamics through a company called Optevia was the clear winner for the Council. It is therefore proposed to build upon this experience and progress with a Microsoft Dynamics solution for Elmbridge Council. Gartner are a worldwide independent research organisation that advise on information technology. In a recent review of the local government CRM marketplace, they regard Microsoft CRM as a positive option for councils. It represents a sound choice for the business as well as the IT service; Local and regional governments that need to quickly automate frontend processes at an affordable price [should consider Microsoft CRM]. IT departments that have already installed Microsoft Office, Outlook and SharePoint will be able to take advantage of Dynamics CRM interfaces with those packages; they will also be able to leverage familiarity with Microsoft configuration and deployment tools, and the Microsoft licenses that they already purchased will reduce the initial cost of acquiring the software. Gartner MarketScope for Local Government CRM Products (2011) Recommendation: This report recommends that the Council implement Microsoft Dynamics CRM. It is the best solution that will meet the council s business requirements to deliver Brilliant Customer Service every time and fits well within the Council s ICT Infrastructure
6 2. Procurement Route 2.1 There are two key elements of the project in terms of procurement. Firstly the Microsoft Software Licenses for the CRM these would be an addition to the Council s Microsoft Enterprise Agreement that was purchased through a Local Government framework. The Second element is the expertise to implement the software. There are two procurement options available to the Council for the implementation of Microsoft CRM. The options are as follows: 1. Elmbridge joins a partnership arrangement established by another local authority 2. Elmbridge uses a framework There are opportunities to partner with other councils or leverage existing contracts for a CRM system. This could be explored in more detail, especially with the arrangement with the Shared Head of ICT who is currently implementing Microsoft Dynamics at Epsom and Ewell. However, care would be needed to ensure that options available to the council would meet Elmbridge s business needs. By using the Shared Head of ICT s experience with Epsom and Ewell having selected Dynamics it is proposed to using a Government Framework for the expertise to implement Dynamics. There are cost and time savings for the Council by following this model and not repeating a full tender exercise. Recommendation: Using a Government Framework (such as Sprint 2) allows the Council to specify and procure a solution which meets its business needs within a timescale that complies with the requirements of the customer service project. It is recommended that the council take this approach and tenders using a Government Framework for a partner to implement Microsoft CRM. 2.2 Implementation The Elmbridge customer service transformation is a rolling programme over the next 2-3 years. The first two phases of the CRM implementation will be led by business priorities as follows:
7 2.3 Phase 1 o Environmental Health & Licensing and Environmental Care Telephones to be answered by the Customer Services Team o Reception Desk open on ground floor to include SCC, EBC and Surrey Police o Reception calls handled by Customer Service telephony team Phase 2 o Planning Services moved into the Customer Services team o All other general frontline queries answered by the team The following gives a high level view of the implementation approach for each new service area that will join into the CRM. This approach will be led by the business priorities of the council. Business Change CRM Implementation Confirm business processes & priorities Confirm CRM requirements Review processes and design new set up Tender for CRM Confirm roles and responsibilities for new set up System scoping and design Restructure (including consultation) Implementation and testing Go live for new customer service set up Training and go live 2.4 The CRM implementation will be joined up with developments on the council website, reception area and telephones. For example, online forms will integrate with the new CRM and the phone system will be linked to the CRM. The links to the telephone system will be critical to ensuring that calls can be channelled effectively and efficiently. A budget allocation has been made within this business case to make the configuration changes necessary to support the CRM, but this will need to be worked through in more detail
8 3. Data Quality 3.1 Data quality is the foundation of a successful CRM implementation. A critical building block is a comprehensive and accurate set of addresses using the BS7666 standard. Each address will have a unique identifier (UPRN Unique Property Reference Number), which will allow the CRM to reference property data in back office systems. All systems must adopt this standard. Data quality will be particularly important for services like refuse/recycling, grass cutting, street sweeping and other aspects of street care. If the council customer service staff do not have access to high quality information about Council services, this could have a negative impact on our reputation. As a result of giving incorrect information to the public. The CRM implementation also links into other ICT Projects currently running such as the BITES (Business Improvement Through Efficient Systems) project in Planning which is improving the data held on properties and planning within the Borough. 4. Customer Data Hub Single Version of Information 4.1 The vision for the council is that CRM will become a single version of Information. This means that when customers contact the Council, customer service staff will have a high level view of all interactions with that customer. The level of detail available will be subject to what is appropriate for the required business process as well as the constraints of confidentiality and data protection. 4.2 Departmental systems across the Council currently operate in isolation. Whilst we hold information about the same people in a number of different systems (e.g. Council Tax, Electoral Registration and Planning), we do not have a joined up view of all the services for a particular individual. This is because there aren t any links between the different systems. 4.3 As part of the CRM project, the Council will need to implement a customer data hub to bring together information from back office systems into a single bucket of data which is the basis of the CRM customer database. This data hub will be based on the council property gazetteer (Local Land and Property Gazetteer LLPG). 5. GIS Integration 5.1 The Council use the Astun ishare web application for GIS. This will integrate seamlessly with CRM systems such as Microsoft Dynamics CRM. GIS will integrate with both online forms and the new CRM. In addition, the same map layers will be made available to colleagues and partners providing services on the front line. 5.2 The technology challenges with GIS integration are relatively straightforward and this has been delivered successfully by other local authorities. As explained above, a key risk when implementing CRM is the quality of the information held within the
9 GIS. For example, if information about parks, refuse routes and other services is not maintained properly, this will have a very negative impact on the delivery of customer services. The information will also allow improved management decisions being made using information mapped from the CRM, such as the location of Hot Spots of where to direct services for example if an area has lots of graffiti. 6. Centralised database of all routes and schedules 6.1 A number of Council services like street sweeping, grass cutting and refuse collection operate using routes and schedules. 6.2 As part of the CRM implementation, it is proposed that Elmbridge will establish a central database of all routes and schedules. It will then be accessed by customer service staff and the council website via the CRM. There will also be scenarios where the CRM will update this database directly. For example, if a customer successfully applies for a green waste collection service, this will be recorded in the database. There must also be the option for updating these if delayed by snow/rain etc. 7. Links to Document Management The new CRM will interface with the council document management system idox. This will be especially important so that customer service staff will be able to see all information relating to a person, property or reported issue. For example, if the customer service team can see correspondence relating to a planning application, they will be able to answer straightforward questions without needing to refer callers to the planning department. 8. Resources Required for the CRM Project The Council will need to dedicate significant people resources to the CRM project. This will be alongside resources provided by the supplier for the implementation. Resource requirements will be as follows; Initial Implementation o Project management
10 o Systems configuration (e.g. servers, and intranet) o Systems development and integration o In-house resource to design and implement the processes o Translation of business requirements into technical specifications Ongoing Support o Support for the CRM set-up (e.g. servers, database etc.) o In-house resource to work with the supplier to resolve issues o Day to day support for the customer service team and online services Further development o Development resource to work with the supplier to develop additional services o Support for the development management information 9. Management Information Being able to measure performance will be critical to the operation of the new customer service function at Elmbridge. CRM systems like Microsoft CRM provide a mixture of real time dashboards, advanced search tools and traditional reports. Reports will be very useful to stakeholders throughout the Council. For example, the CRM will be able to provide real time information about how well services like refuse and recycling are performing from the perspective of the customer. 10. Channel Shift 10.1 The Council uses Achieve Forms for online services. It is proposed to continue using this system and integrate it with the new CRM. The content of the online forms will be refreshed as part of the business process review. Also, the forms will make more use of the council LLPG (Local Land and Property Gazetteer) and GIS (Geographical information Systems) For some transactions, customers like to see how their service request is progressing. In order to provide this information online, some form of authentication (password) will be required. The details about how this will be implemented will
11 depend on which CRM is selected and the council requirements for data protection and confidentiality SOCITM (The SOCiety for IT Managers) has published work in the past to try and put a cost to the various different access channels with face to face at 8.62, telephone at 2.83 and web at 0.15p. Some services will be more efficient and some less so. But just looking at these basic figures trying to encourage Customers to the Website has financial benefits for the Council. It is estimated that approximately 85% of our residents would be receptive to accessing services and information online (Mosaic - Experian, 2010). This is supported by the current usage of our online services, for example, 32,385 e- payments transacted in 2011, and an average of 70,000 unique visitors to our website in a month. Our Residents' Panel results for 2012, also demonstrated that, of those respondents that contacted us in the previous twelve months, only 9% chose to contacted us in person. 11. Back office use of CRM 11.1 Staff working in service departments will need access to CRM for transactions that do not integrate fully with existing systems. For example, the Street Smart team could use CRM to pick up reports about graffiti. As they update the CRM on progress, this information will be shared with the customer service team at the same time Where services have a well-established back office system (e.g. Council Tax), the CRM will integrate with that application. Transactions such as a request for a discount or exemption will be sent from CRM directly to the back office system for processing by the department. When the back office processing is complete, CRM will be told automatically so the customer service team is aware of progress. Staff will be able to extract performance and information management information to ensure that the Council can target service delivery more effectively and enable cross selling of Council Services. 12. Mobile working Some Councils use CRM for mobile working. In its simple form, this involves picking up CRM jobs via on a smart phone. Other councils run CRM on mobile devices and support real time logging of tasks as well as updating progress. The extent to which mobile working is used will depend on the financial business case for each process and access to robust mobile internet departments will need to demonstrate significant savings and other benefits in order to implement mobile working. 13. Integration between CRM and Council systems Many councils use integration between CRM and back office departments or contractors to deliver significant savings. Integration bypasses staff in the back office and distributes tasks to those on the ground providing the service. This gives an opportunity for efficiency savings as processes are streamlined
12 However, integration can be expensive to implement. The business case for each service will be validated thoroughly before any investment in integration. This links into the ICT Strategy which includes further work on improvements to infrastructure and systems. 14. Hosting options and Shared Services 14.1 Some councils share the investment costs and pooling products to get more value from CRM. The current harsh economic climate has encouraged Councils to work together. Councils have learnt valuable lessons from egovernment partnerships about how to work effectively Partnerships can deliver significant benefits including: Not reinventing the wheel by making the most of work done by other Councils. Learning about how other Councils have delivered process improvements. Making the most of the limited pool of resources by sharing them Savings for ongoing support However, when entering into a partnership, the council needs to be mindful of potential issues: Partnerships always move at the pace of the slowest To get maximum efficiency savings through the partnership, you need to run on identical infrastructure or (preferably) joint infrastructure. To get mutual benefit, you need shared priorities at the same time There are a number of opportunities for partnership working amongst local authorities in Surrey and the Council will explore this. Quick wins could include joint developments and sharing expertise. This would rely on Elmbridge selecting the same solution (Microsoft CRM) as other Surrey local authorities. However at this stage further work to explore the options would be needed. 15. Integration with social media 15.1 Increasingly, our customers will want to use social media to do business with the Council. This will include tools like Facebook and Twitter. Whilst council activity is relatively low at the moment, we anticipate this will grow significantly. Any CRM solution selected by the Council must be able to integrate with social media and have a clear roadmap for its development
13 15.2 Use of social media is not restricted to our customers contacting the council. The council will also use tools like Twitter and Facebook more to get in touch with our customers. 16. Capital Spend Profile Area Microsoft Dynamics Licences Budget What will be delivered 20,000 Software licences assuming 100 users Telephone work 20,000 Configuration of the telephone system to support the CRM system Third Party Implementation Other Integration Costs ICT Development Assistance 100,000 Third party to assist Council in the delivery of the application and integrations 35,000 Budget to integrate into other ICT systems as appropriate 50,000 One Year Fixed term contract to assist in implementation Contingency 50,000 Contingency budget Total 250, Annual Revenue Spend Profile Area Dynamics Licences Dynamics 3 rd Party Support Budget Total 30,000 What will be delivered 15,000 Software licences 15,000 Support and maintenance
14 18. Return on Investment Area Budget Notes Capital Spend 250,000 Implementation of the systems Revenue Spend (5 Years) TOTAL COST (5 Year) Payback over 5 years 150,000 Support and Maintenance 400,000 ICT System Savings 25,000 Reduction in the number of systems Anticipated Staffing Savings 480,000 ( 120,000 per annum) Total Payback 505,000 By supporting the Council s Brilliant Customer Services Every Time initiative there will be full process reviews into how the Council delivers services. Assuming average salary for the Council is 30k ( 25k +20% on-costs), that we save an estimated 4 FTEs in the Council and that savings are made from year 2. This is primarily a reduction in maintaining and supporting various databases and systems. It is expected that further savings can be made as the project progresses. It is clear from the above table that the business case for this investment is strong and has a clear payback within a 5-year period. It is worth reiterating at this point that the financial element is only half the story with a CRM system implementation. An equally important aim of the investment is to increase the levels of Customer Service and the overall customer experience generally, which cannot be quantified financially
15 Financial implications: The capital funding allocated to CRM is 250K for Assuming the CRM procurement can be completed successfully by the end of February, the profile is likely to be as follows; Financial Year Investment Required What will be delivered ,000 Software licences and initial installation ,000 Implementation of first two phases of CRM To be determined in ICT Strategy Implementation of additional CRM phases depending on the preparation of individual business cases The Head of ICT is currently finalising the ICT Strategy for the Council and it is anticipated that further capital investment will need to be allocated to the project to ensure that it continues to meet the Councils expanding requirements for Brilliant Customer Services Every Time. Environmental/Sustainability Implications: The use of CRM will have a number of positive environmental benefits; Less travel will be required by our customers as more transactions will be carried out online or by phone Together with existing infrastructure in the Virtual Desktop Infrastructure staff will be able to use tools including CRM more flexibly including from home/on the move so may travel less to council offices CRM and GIS can help service departments by planning the most efficient route to avoid unnecessary travel. Legal implications: None for the purpose of this report. Equality Implications: None for the purpose of this report
16 Risk Implications: Risks Risk Probability Impact Mitigation CRM procurement delays impact on CRM implementation and customer service projects Red All requirements to be clearly specified as quickly as possible. Budget isn t sufficient once all supplier costs become clear Clarity is needed about all costs as soon as possible Fixed price approach needs to be used throughout. Poor data quality for some council services delays the project or impacts on customer service delivery Data quality will be prioritised in the CRM project. Clear responsibility will be assigned as needed so issues are resolved. Integration takes longer than expected, is more expensive, not technically possible or fails to deliver Early specification of requirements and working closely with all suppliers. Resources in the Council are too limited to get all required elements of the project delivered in time Early identification of resource requirements to identify any gaps. Supplier doesn t have the capacity to deliver the project within required timescales Tight specifications and project management will be required to ensure supplier is aware of what s needed to get delivered as planned. Communications to Residents, Staff and Managers Communications plan and work-stream within the Project Board to ensure that groups are communicated with effectively
17 Community Safety Implications: There are no direct community safety implications as part of this report. Principal Consultees: Corporate Management Board Heads of Service Internal Audit Background papers: None for the purpose of this report Enclosures/Appendices None. Contact details: Strategic Director & Deputy Chief Executive, Head of ICT , mlumley@elmbridge.gov.uk
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