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Deloitte Digital QBCC White Paper

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This paper reviews the customer transformation program at the Queensland Building Construction Commission against the broader context of digital disruption in the public sector in Australia.

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Deloitte Digital QBCC White Paper

  1. 1. Building a single view of the customer AN AUSTRALIAN GOVERNMENT TRANSFORMATIONAL CASE STUDY How the Queensland Building and Construction Commission’s cloud-enabled customer service transformation is demonstrating that government is rising to the digital challenges in Australia By David Tan, Matt Campion and Callam Porch Deloitte Australia
  2. 2. We live in dynamic times, one underscored by a hyper-connected world where the population expects the ability to engage business and government services at any time, via many channels. Service transformation has indeed reached the public sector. This increase of customer expectations is at a time when many governments and agencies across the world, and certainly here in Australia, have reduced finances and resources from which to deliver to these services. This paper sets out to discuss the global trends and drivers affecting public sector and demonstrate how the Queensland Building and Construction Commission (“QBCC”) has tackled the digital service transformation challenge head on. In early 2015, the Honourable Prime Minister, Malcolm Turnbull, who was at that time the Communications Minister, collaborated with Salesforce Executive Vice President and former US Government CIO, Vivek Kundra who visited QBCC late in 2015. They co-authored a blog post for Salesforce in which they describe this landscape as: “Even in non-traded parts of the economy, like government, digital disruption is placing pressure to deliver the types of services that users have come to expect from other industries. Governments can respond in two ways: they can continue with the status quo, making incremental gains here and there, or they can be more ambitious, taking a leadership role in the digital economy by transforming every aspect of service delivery. The approach of governments to date has been to tell citizens “there’s a form for that.” Well, it’s time they start saying “there’s an app for that.” 1 The QBCC as an organisation has taken on this challenge. By sharing their story and how they embraced customer- focused design and process change enabled through new technologies, the intent is to provide a rich example of how digital transformation in the public sector is gaining momentum here in Australia and making an impact. DAVID TAN, PARTNER Deloitte Digital Executive Summary 2 Building a single view of the Customer – Deloitte Customer Practice 1. Salesforce Australia, March 30 2015, Government Services: Where’s The App For That, https://goo.gl/7bDt0l
  3. 3. There is no doubt that the twenty- first century has seen a dramatic rise in the rate and pervasiveness of change and technology advances within societies around the world. From Uber in the transportation sector disrupting public policy and regulation, to the advent of crowd-sourcing within public sector; governments are becoming a conduit for social change rather than the driver. These changes can be attributed to several global trends such as financial constraints triggered by economic crises, increasing populations and shrinking resources. These developments are against the backdrop of an ever- racing consumerism where constituents’ expectations are continually rising with the pace of technology advancement. In short, the public’s expectations of government services are increasing whilst resources and relative funding decreases. This paper explores these global and national challenges before a review of a local Australian case study of the Queensland Building and Construction Commission (“QBCC”). This case study is examined as a working example of how challenging drivers and trends in the public sector can be addressed with a customer-centric approach leveraging ‘as-a-service’ technologies. 1.1 ECONOMIC AND SOCIETAL DRIVERS Economic and societal drivers of change in the public sector will accelerate over the coming years due to hyper-connectivity, population density acceleration and fiscal pressure. Coupled with these challenges of understanding how best to efficiently and effectively deliver public services, governments must also continue to embrace the openness and empowered citizens that the digital age facilitates. 1. Challenges in the Public Sector A recent Deloitte Access Economics report, found that there are an estimated 811 million transactions at the federal and state government levels each year in Australia. Approximately 40% of these transactions are still completed using traditional channels such as face- to-face, post and phone, which on average, have been estimated as significantly more expensive than digital online channels.2 Table 1: Average cost of transaction by channel CHANNEL COST3 Face-to-face $16.90 Telephone $6.60 Postal $12.79 Online $0.40 This report further estimated that a reduction of 20% over a period of ten years would equate to efficiency and productivity gains in the order of $17.9 billion (in real terms). Based on the economic modelling, it was suggested that the benefits of a large-scale digital transformation would be estimated at around 4 times the cost. Table 2 below illustrates the current transactional volume for the three largest Australian government departments with a ten-year projection of annual volumes. Clearly, future volumes will require greater efficiency to meet operational and quality expectations. 2. Deloitte Access Economics (2015) Digital Government Transformation, http:// deloi.tt/1T5IFTb. 3. Based on estimated total transaction volume for the three largest federal departments and state level transactions 3 Building a single view of the Customer – Deloitte Customer Practice
  4. 4. Table 2: Volume by Channel for 3 largest federal agencies CHANNEL TOTAL ANNUAL VOLUME (MILLIONS)3 FORECAST CHANNEL VOLUME IN TEN YEARS (MILLIONS)4 Face-to-face 84.1 42.6 Telephone 139 70.3 Postal 97.4 49.3 Online 490 648.4 Total 810.6 810.65 Service channel costs aside, consumerisation of digital services in the commercial sector is changing public expectations and thus driving demand for government transformation. This juggernaut of citizen’s personal life “going digital” has reset expectations of how they engage with their governments in an equally digital way. Previously, Government had a monopoly of public services, however many start-ups are challenging this and we are now seeing disruption in sectors such as transportation, education and healthcare which have a heavy government footprint. “Targeting transformation opportunities that materially address customer pain-points is key for Governments in a digital age” BRUCE MCGREGOR EXECUTIVE DIRECTOR, QBCC Deloitte is not the only consulting firm which sees this area progressing. McKinsey has recently released an article “Digitizing the delivery of government services”6 in which it details how the Danish Business Authority transformed and moved from paper to a digital registration process. This led to over a 50% reduction in the average call to solve customer questions and a drop from total number of applications requiring support from 70% to 30%. Deloitte’s recent research explores the Future of Government in 2020 and identifies a number of megatrends.7 A particularly relevant megatrend for the Australian Government and the QBCC is leveraging technology and data to provide more personalised services and experiences. This has been encapsulated in the trend “billion to one” by our Gov2020 research. The following from our global Gov2020 research succinctly highlights the impact this trend could have on how governments could deliver highly tailored services in the future, “…equipped with crowd-based insights and continual feedback from its citizens, governments [can] shift from providing services to more personalised citizen ’experiences’ using behavioural nudges and data analytics. This creates an adaptive system in which the services continually evolve based on insights garnered from citizen feedback loops.” 1.2 TECHNOLOGICAL DRIVERS In many ways, technology is now inherent with the term disruption and transformation. Be it the rise in cloud-computing8 , the ubiquitous phenomena of mobile computing or social media, technology is everywhere. Further, it is difficult to extract technology from the discussion of economic and societal change. Included in this paradigm is a mix of advances in technology, the volume and sophistication of data analytics and the scale of the technology innovation across a burgeoning world of billions of consumers. Deloitte Gov2020 research cites all of these factors as contributing to a much-changed society in the future. One in which innovation will drive leaps forward in public sector related areas such as health-sciences, manufacturing and managing market competitiveness. 4. Based on estimates of only 20% of total transactions being required through traditional channels in ten years from 39.5% based on trend digital channel growth from AGIMO (2011). 5. Deloitte Access Economics analysis is about the benefits from a shift in channels on existing transaction levels. 6. McKinsey (2016) Digitizing the delivery of government services, http://goo.gl/NCRvk1 7. Deloitte (2015) Gov2020: Explore the Future of Government, http://deloi.tt/1WVG4dv 8. Deloitte Gov2020 Cloud Computing driver lists a number of projected statistics to highlight the relative impact magnitude. Firstly, in 2020, the cloud computing market could be worth $241 billion, which is twice the amount China spent on arms in 2011 (CIO Systems). Secondly, the use of cloud computing by 2020 cuts data centre energy use by 38 percent (Environmental Reader). Finally, in 2020, 5,200 GB of digitized data is available per person, 15 percent of which resides in the cloud (CIO NZ). 4 Building a single view of the Customer – Deloitte Customer Practice
  5. 5. A very simple and powerful example of the possible change we could see in the future is the prediction that by 2020 more than 80 percent of consumers could collect, track, barter or sell their personal data for savings, convenience and service customisation, making information a currency in the truest sense. Furthermore, the production and use of troves of data could encourage “citizen innovators” to transform open data into solutions and applications.9 The role mobile technology plays today in improving the functioning of society is dramatically different from 2010. This comparison will be further dwarfed by the rate of change between 2010 and 2020 where it is predicted that the wireless traffic increase will be a factor of 88 times.10 One government specific example of the rise of the use mobile technology will be in the utilities segment to enable the mobile workforce to better respond to customer service demands whilst decreasing costs. This is viewed as an area of major opportunity11 to be enabled through agile cloud-based technologies. Deloitte Gov2020 research also suggests that in 2020 there will be a mixture of approaches to cloud computing leveraged by the public sector, these include: • Hybrid Clouds – a mix of internal government and external private clouds • Open Clouds – built on open standards and protocols to enable sharing data with citizens and driving innovation • Inter-clouds – an à la carte selection for government from cloud components from various vendors. These approaches will be coupled with increasingly cloud-based modular software development allowing real-time cloud-application changes without taking services and applications offline. Furthermore, cloud- based analytics maturity will further influence cross- government sharing of data, driving down costs and advancing connected whole-of-government insights.12 However, many governments are still facing challenges associated with legacy systems before transitioning to cloud-based technology landscapes can become a reality. If it is acknowledged that these drivers are established and set to increase in efficacy, the public sector must consider when and how to undertake digital transformation efforts here in Australia. The leadership team at the QBCC were quick to recognise these challenges in 2013 as part of a broader organisational realignment. As Steve Randall, QBCC Service Delivery 15 Program Manager, highlighted “don’t put transformation off… it will only get harder the longer you leave it”. 9. See Data Currency Asset in Gov2020: Explore the Future of Government at http://deloi.tt/1WVG4dv 10. See Mobile Technology in Gov2020: Explore the Future of Government at http://deloi.tt/1WVG4dv 11. Deloitte Gov2020 Mobile Technology driver suggests that the mobile- enabled workforce in the utilities sector could double to 2.4 million, improving customer service and achieving superior cost efficiencies (Energy Digital). 12. See Cloud Computing in Gov2020: Explore the Future of Government at http://deloi.tt/1WVG4dv 5 Building a single view of the Customer – Deloitte Customer Practice
  6. 6. 2. The QBCC Service Delivery Transformation A local Salesforce case study with a customer-centric approach The QBCC is the regulatory authority providing information, regulation and also enforcement of Queensland’s building and construction related legislation for the industry. The organisation’s core services focus on three key areas. Firstly, licensing building and enforcing building standards are met, secondly resolving disputes and lastly issuing building insurance and resolving related claims. The organisation reported approximately $170 million AUD in revenue and has a pivotal role with the Queensland economy. The building and construction industry employs around 10 percent of the 4.6 million people living in Queensland and contributes approximately $60 billion AUD a year to the state’s economy.13 Like many public sector organisations in Australia, the QBCC has had to face challenges associated with macro trends such as the rise of the digital citizen and increasing expectations of digital public services, financial constraints, navigating data privacy and security concerns, whilst continuing to deliver excellent customer service. Since 2014, the QBCC has been on a transformation journey to achieve a vision of being recognised by their customers as the best and most respected regulatory service provider in Australia. As Bruce McGregor, Executive Director Customer Service at the QBCC, summarises “…we recognised that to deliver on our vision of being the most respected regulator in the country we had to embark on a transformation across our culture, processes and technology that had our internal (QBCC employees) and external (homeowners and builders) customers at the heart of it all. Keeping true to our vision throughout of making it simpler and easier to work at, and with, the QBCC has been our overarching touchstone.” The effort and commitment to that vision have paid dividends for QBCC with the organisation recently taking out the 2015 National and Queensland Award for achievement in service excellence for a state or federal government agency at the Australian Service Excellence Awards. QBCC is now leading the way in Queensland and across Australia in terms of implementing customer- centric, cloud-first strategies for public sector. However, a journey of this scale has taken leadership, time and an unwavering commitment. Deloitte has been assisting the QBCC since 2014 as a trusted advisor and implementation partner. This section discusses the QBCC cloud-enabled customer- centric transformation case study by highlighting elements that were contributory towards success. These include core non-technology related factors such as an adaptive timeline supported by the executive leadership team, customer-based design and agile teams comprised of cross-functional blended resources, and finally, key ‘as-a-service’ technologies that have enabled a scalable and flexible solution. 2.1 A DIGITAL ADAPTIVE TIMELINE In 2014, a number of business challenges were identified that resonate across the Australian public sector. Specifically, the QBCC leadership team acknowledged the following concerns: 1. An inconsistent customer experience across channels 2. Inwards focus, instead of customer focused operating model 3. Disconnected business processes 4. Fragmented legacy systems and data. Furthermore, within Queensland a number of legislative reforms were foreshadowed and would impact the QBCC. 13. QBCC Annual Report 2014-2015 6 Building a single view of the Customer – Deloitte Customer Practice
  7. 7. The QBCC piloted a number of smaller initiatives to provisionally address these challenges. However, it quickly became apparent that a comprehensive program of work focused not just on technology, but people and processes was needed across the organisation. The Service Delivery 2015 (SD15) program was launched in early 2015 with a view to build on the successful Salesforce Service Cloud pilots and implementation of Social Studio.14 Furthermore, the SD15 program was to focus on four key financial benefits that would provide a significant return on investment for the QBCC. These desired financial benefits included: 1. Reducing the cost-to-serve by shifting services towards digital 2. Rationalising technology to reduce risk, complexity, and cost 3. Reducing the time to conduct and report on-site building inspections 4. Overall business process efficiencies. The enterprise-level investment portfolio reprioritisation and adaptation was only achieved through unified commitment from the executive leadership team of the QBCC to this digital transformation. “We learnt some early lessons and decided that to really transform we had to deliver new processes on new technology guided by customer insights. Simpler and easier became not just our vision, but our daily motto.” BRUCE MCGREGOR EXECUTIVE DIRECTOR QBCC The QBCC’s unwavering commitment to customer-first and value-driven investment decisions have facilitated the necessary guidance to shape the digital transformation over-time as emerging contextual factors became apparent. After 18-months, the SD15 program has delivered the following milestones: • A Common Case Framework to standardise processes and statuses • Numerous end-to-end transformations for business units from legacy systems • A single view of customers across multiple stakeholder-types • A Customer Relationship Management (CRM) enabled digital self-service portal, myQBCC. 14. As the industry’s social pioneer, Radian6 as part of Salesforce Social Studio in the Marketing Cloud, allows organisations to quickly and efficiently track, monitor and react to comments, questions and complaints as they happen on social platforms. This product can facilitate tapping into over 650 million sources from Twitter, Facebook, YouTube, blogs, news and more to “socially listen” for what’s being said. Then, provide the options to action by routing important social media posts to any user across an organisation for insight or follow-up. 7 Building a single view of the Customer – Deloitte Customer Practice
  8. 8. The SD15 program has not concluded yet, however, as a program it has set-up the foundation for other potential investments beyond the 2016+ horizon, when the QBCC will have options to increase its scope of services. There are three key aspects to this foundation that will be discussed in the next sub-sections, starting with Customer-based Design. 2.2 MAKING IT ‘SIMPLER & EASIER’ Taking a Customer-based Design (“CbD”) approach to re-inventing the business processes to ensure they focus on delivering an outstanding customer experience has been fundamental in the overall mindset of the digital transformation. The original customer personas developed by Deloitte where enriched and embedded through a unique approach, in which, QBCC engaged an agency to invest in training a group of internal business team members in a CbD approach to enable this design capability. The result has been a customer design capability that has been critical throughout the entire program, ensuring that all design decisions reflect the goal, described by Bruce McGregor as “making it simpler and easier for our employees to do their job every day.” The QBCC added to this vision by uniquely recognising their approach needed to be balanced in considering both the internal (staff) and external (public) customers. It had to work for both. The distinction of employees as ‘customers’ might be considered subtle, however, in creating an internal QBCC government employee customer voice, the program was able to effectively empathise and prioritise internal transformation improvement opportunities. This unique perspective that Bruce McGregor and the extended QBCC leadership team championed throughout the digital transformation journey has been a contributing factor to success. As an employee, it was critical that the processes and systems enabled collaboration across organisational departments through connected data, automation where possible and focusing on their experience as internal customers. Critically, prior to the SD15 program employees did not have a single-view of QBCC external customers and their history. Ultimately, hearing and addressing internal customer needs (i.e. making it ‘simpler and easier’ for them) has assisted in delivering greater customer service across multiple channels. Close collaboration with deeply-passionate QBCC product owners (see Section 2.3) and championing continuous improvement cycles were critical to enabling this internal customer voice to be heard and acted upon. For the external customer, an integral component of the CbD approach was the development of visual customer journey walls. Steve Randall, SD15 Program Manager, provided the insight that “project teams and wider- business stakeholders started to really empathise with customers when QBCC’s process interactions, emails, letters, durations and emotions were displayed visually.” Steve said that customer journey walls assisted to solidify the design philosophy to be ‘customer-first’ and “led to a design that met the customers’ demands, which has been built on real world data – not internal assumptions.” Figure 1 – QBCC Digital Transformation Timeline 8 Building a single view of the Customer – Deloitte Customer Practice
  9. 9. Importantly, customer empathy maps did not just start at the first interaction with the QBCC, which is a common oversight for private and public organisations alike. For the QBCC, when a customer has a residential building dispute case they may have been grappling with this issue for some time before deciding to make contact. They want someone within the Government to know who they are, make it easy for them and demonstrate a proactive disposition during the unfolding processes. This can only be gained through close collaboration with your actual customers and continuously referencing back towards guiding principles during the design process. In our view, a set of CbD principles are of significant importance in maintaining a consistent vision throughout digital transformations. Such principles communicate the experience that people, processes and systems, such as Customer Relationship Management (CRM) software, will deliver for customers, employees and extended stakeholders. Furthermore, they provide fundamental goals that decisions can be measured against. An example visualisation of our Deloitte reference CRM design principles are displayed visually in Figure 2. The outcome of taking such a comprehensive CbD view at the QBCC has been a reinvention of customer focused business processes on a new technology platform, which in aggregate has provided the opportunity for greater effectiveness and efficiency. However, the iterations and feedback cycles associated with this approach could only be managed through an agile delivery methodology as discussed next. “The teams were highly aware of the customer and how their work improves the customer’s emotional journey. This added meaning and purpose to the team’s work which has led to a high level of ownership, pride and quality.” STEVE R ANDALL QBCC SD15 PROGR AM MANAGER 9 Building a single view of the Customer – Deloitte Customer Practice
  10. 10. Figure 2 - Deloitte Reference CRM Design Principles KNOW MY CUSTOMER STORY MAKE IT SIMPLER & EASIER FOR ME BE PROACTIVE & HELPFUL THE POWER OF CONNECTED DATA AUTOMATE EVERY WHERE EXPERIENCE IS EVERY THING SINGLE VIEW OF CUSTOMER 2.3 AN AGILE DELIVERY APPROACH Tightly coupled with the CbD approach has been the “agile delivery” method employed by the program in a highly controlled and regulated environment. The SD15 Program Manager and Agile Coach, Steve Randall, has worked in close collaboration with Deloitte to refine this approach after it was used in pilot projects. Refinement efforts were focused on deliberately evolving to a hybrid agile-waterfall method for alignment with the QGCIO ICT Program and Project Assurance Framework15 and additional governance arrangements introduced by the enterprise Program Management Office (PMO). A successful balance between project ideologies was found and contributed to the overall program successes. This balanced style represents a pragmatic and increasingly popular approach to the challenges and constraints that exist within organisations and cultures. Recent Forrester research on the state of Agile found that 35% of all firms surveyed were using a hybrid approach, and specifically 47% of large organisations used it.16 Furthermore, Forrester found that 65% of agile ‘expert’ organisations are deliberately choosing to mix agile with other methodologies and consider this a mandatory success factor. 15. For more information please see the Queensland Government CIO Policy, https://goo.gl/S9UKQf 16. Forrester (2015) The 2015 State of Agile Development: Learn from Agile Expert Firms. 10 Building a single view of the Customer – Deloitte Customer Practice
  11. 11. “By adapting an agile delivery approach we have been able to deliver SD15 within the QGCIO framework while building a better product through close engagement with the business stakeholders. This approach enabled the team to change delivery focus based on emerging business priorities without impacting schedule or budget.” STEVE R ANDALL QBCC SD15 PROGR AM MANAGER Hybrid agile-waterfall approaches balance the application of adaptive agile concepts, such as adherence to the agile manifesto, and techniques in traditional predictive structured waterfall projects. This approach became critically important for the QBCC, as the enterprise initiated a number of other transformational projects outside of the SD15 program under direction from the PMO. Typically, such an approach involves the following four high-level phases, as noted on our Agile@Deloitte blog and Figure 3.17 1. Plan: Develop a high-level plan upfront for a project, which helps mitigate a fear of failure by providing a degree of comfort, confidence and compliance to stakeholders. 17. For more information please see http://blog.deloitte.com.au/agile Figure 3 - Hybrid-Agile Project Delivery Approach 2. Analyse & Design: Prioritise business requirements and develop high-level solution designs. This ensures an overall understanding of the problems and approach to focus on prioritising business value. 3. Build & Test: Complete and test functional elements of the solution through time-boxed agile sprints. Included in this phase are any detailed technical designs as required. There are a number of ‘ceremonies’ that form a predictable cadence during development sprints, these include planning sessions (story point poker estimations and backlog story refinement), daily stand-ups, reviews (demonstrations of working features) and retrospectives (see Figure 4). 4. Final Testing & Deployment: Conduct a final round of integration, regression and user acceptance testing before scheduling deployment to production environments in a controlled manner. Steve Randall summarises that for SD15 there were a number of critical factors that underpinned successful implementation of this hybrid approach. Firstly, creating the role of product owner and co-locating them with the project teams in a collaborative space without physical walls or partitions. Steve attributes this to “increasing the value of features being delivered and assisting with change management efforts to embed value for the business.” Secondly, the encouragement of ‘entrusted leadership’ and ‘self-managed, no-blame’ team philosophies helped drive high performance. Steve notes that teams took ownership of, and had pride in, the outcomes. Furthermore, an emphasis on “goals not roles for individuals and teams”, resulted in what Steve describes as “above and beyond behaviours”. 11 Building a single view of the Customer – Deloitte Customer Practice
  12. 12. A number of benefits were observed from utilising this approach at the QBCC. Firstly, issues were identified and resolved early through regular reviews and feedback cycles within the team and with business product owners. Secondly, the ability to accelerate high priority features resulted in ensuring delivery of the highest value elements within the overall constraints and dependencies. Thirdly, there was a notable enhancement of team collaboration by providing time-boxed focus for disparate groups and functions during sprints. This was particularly important at the QBCC where the extended delivery team consisted of multiple vendors, contractors and QBCC employees. “The diverse team quickly unified and progressed from forming to performing and onto the utopia of ‘self-managed high-performing’ under the agile-hybrid approach. They are now receiving universal acclaim due to the calibre and collaboration of the amazing team members from the QBCC and multiple vendors. Deloitte continue to be a major influence on this outcome.” STEVE R ANDALL QBCC SD15 PROGR AM MANAGER Fourthly, there was an increase in transparency and feedback as stakeholders (and primarily the product owner) was directly involved in Build and Test sprints and their related cadences (See Figure 4). This supported a continuous feedback dialogue between the SD15 teams and the QBCC business. Finally, the hybrid-agile approach supported the ability to rapidly prototype solutions, and thus the project team could confirm requirements as needed within short time-boxed predicable time periods at the QBCC. Ultimately, this approach resulted in the delivery of a better quality solution and the ability to pivot direction when needed. 2.4 SCALABLE & FLEXIBLE SOLUTION DESIGN Facing a complex, ageing legacy system landscape and the challenge of meeting rising demands for increasing services through digital channels, 18 months ago QBCC was at a technology cross-road. They required solutions that would provide opportunities to rationalise some of the 100+ disparate systems within their ICT Portfolio and provide a measure for ongoing agility. Cloud-based Software-as-a-Service solutions were considered in alignment with the broader technology direction of the Queensland Government through the Queensland Government’s Chief Information Officer’s (“QGCIO”) ‘cloud-first enterprise’ framework. This framework principally establishes a working model for cloud adoption for government departments and agencies. Through alignment to this approach, the QBCC would fundamentally shift their existing ICT risk profile and operational burden and began a technology solution journey that would enable many of the customer experience and business improvement objectives. 01 Monday Tuesday 02 Wednesday 03 Thursday 04 Friday 05 Tuesday 07 Friday 10 Monday 06 Wednesday 08 Thursday 09 10-day Sprint Cadence Sprint Planning Daily stand-up meetings & product development effort Sprint Review & Demo Sprint Retrospective Backlog refinement & prioritisation Figure 4 – Typical 10 Day Time-boxed Sprint Cadence 12 Building a single view of the Customer – Deloitte Customer Practice
  13. 13. Salesforce Service Cloud allows organisations to seamlessly manage CRM and customer service workflow across an entire organisation via any channel. Building a single view of the Customer – Deloitte Customer Practice13
  14. 14. After due-diligence and a pilot project with the Salesforce platform, QBCC decided to invest further in ‘Service Cloud’ and leverage it across the entire business as their central customer and case management system. That included 300+ users across nine regional offices throughout the state of Queensland including the head office and contact centre in Brisbane. Salesforce Service Cloud allows organisations to seamlessly manage CRM and customer service workflow across an entire organisation via any channel.18 QBCC partnered with Deloitte to design and deliver a solution which leverages Service Cloud to gain a single view of customer information and follow a common service process to complete customer cases. QBCC has now delivered a single view of customers on the Salesforce platform which allows anyone in the business a centralised overview of customer information and case history. This has resulted in faster processing of customer queries. Salesforce Service-Cloud is now the one enterprise-wide platform across the business which delivers a Common Case Framework that standardises case management to seven common statuses (See Figure 5). Ultimately, this means that all customer enquiries are processed essentially in the same method. This has delivered process efficiencies, reporting consistency and overall simplified operating procedures. “Our common case framework, underpinned by the solution design, and has resulted in simplification, less customisation, less risk and complexity and consistent measurement throughout the business.” BRUCE MCGREGOR EXECUTIVE DIRECTOR QBCC With these foundations in place, the QBCC has been able to extend the platform by implementing a digital self-service customer portal, myQBCC, enabled by Salesforce customer Community Cloud. This Salesforce- enabled portal provides the capability for customers to register, update their details, create cases and then track their status during investigation all on the one platform. Furthermore, Salesforce’s two-sided platform orientation facilities access to a greater solution capability, at lower costs, through their extensive AppExchange where third- party features and solutions can be procured and easily provisioned.19 18. There are a number of cloud offerings from Salesforce including Sales, Service, Marketing, Community, Analytics and Apps. For more information, please see http://www.salesforce.com/au/products. 19. The AppExchange is a business app marketplace for the Salesforce platform. AppExchange apps customise and extend Salesforce through an extensive ecosystem. For more information see, https://appexchange.salesforce.com Deloitte is Global Implementation Partner for Salesforce and has been named a leader for this vendor by both Gartner and Forrester, for more information, please see http://www.deloitte.com/salesforce. Figure 5 – QBCC Common Case Framework 14 Building a single view of the Customer – Deloitte Customer Practice
  15. 15. At the QBCC, when the agile development team faced technical challenges or requirements to accelerate delivery, the Salesforce AppExchange assisted in providing options and reducing risk. However, selection of such additional features needs to be undertaken in a structured and considered process to ensure commercial and technical due diligence is completed. “Our new processes and services now have a continuous improvement capability; that is a working solution which is continually iterated… this has been underpinned by the scalable and flexible Salesforce solution that also enables tracking the tangible benefits on dashboards, providing greater insight into our performance and where to invest in enhancements.” BRUCE MCGREGOR EXECUTIVE DIRECTOR QBCC Behind the scenes, the flexible and scalable solution architecture that Deloitte has advised on involves integration to core back-end systems through the MuleSoft integration platform.20 MuleSoft is a market- leading integration Platform-as-a-Service (iPaaS), which was listed as one of the Top 500 fastest growing companies in North America in 2014 by Deloitte and Gartner labelled them as visionary leaders in their iPaaS Magic Quadrant for 2015. Their Anypoint Platform includes support for: 1. Service-Orientated-Architecture (SOA) for connecting on premise systems and data with extended cloud, device and API-enabled assets. 2. Software-as-a-Service (SaaS) connectivity for integrating cloud-based applications with each other. 3. Application Programming Interface (API) Management to accelerate design, development and management of new interfaces. As Bruce McGregor stated recently, “as an integration platform-as-a-service, MuleSoft Anypoint Platform decreased the complexity of connecting to disparate systems and applications, on-premises and in the cloud. It was a critical component for enabling us to fully take advantage of new technologies, such as Salesforce, and shift to digital channels to serve our customers in new ways”. From a program delivery perspective, Steve Randall observed that the utilisation of flexible and scalable cloud-based solutions, such as Salesforce and MuleSoft, had a dramatic impact to the overall release process by reducing it from 5-10 days to less than 3 hours. Furthermore, Leon O’Brien, QBCC Enterprise Architect, reflected that “by following the SD15 program example to rationalise and adopt ‘as-a-service’ models of delivery, it will enable the CIO to plan for redirection of operational expenditure into value creating services and activities; services that add value to the business, rather than keeping the lights on.” 20. Deloitte is a MuleSoft global implementation partner and can provide hybrid integration solutions that accelerate digital transformation initiatives to unlock critical data, enable rapid application development and provide continuous mobile experiences. 15 Building a single view of the Customer – Deloitte Customer Practice
  16. 16. The program has been running for 18 months delivering through an agile customer-centric approach combined with the right technology, which have been critical to its success. The new customer Disputes process solution went live on November 1, 2015. The following highlights some of the outcomes that the program has delivered to date: • 165% increase in the number of successfully completed Digital submissions • 67% favourable response in the new application and quality of data received by staff • 96% decrease in manual re-work and processing of a transaction, this represents a saving of up-to 28 weeks per annum in labour • Transaction ‘cost to serve’ has decreased up to 80% • Some case closures were 49 days, which have now been reduced to 26. These early data points outlined above are encouraging and indicate positive trends. Further analysis will be undertaken as a greater data set is collated to track the long-term benefits. However, it is evident that the shift to digital channels is having a material benefit for the organisation in helping deliver greater customer satisfaction through digital channels which is increasing customer experience at a lower cost. Furthermore, as Steve Randall highlights, “the QBCC is now focused on the customer and customer outcomes. The underlying technology solution has been refreshed, and most importantly, has the capability to grow with the QBCC and their customer focus for years to come.” 3. Conclusion “We have seen a significant reduction in resolution timeframes along with cost to serve through increased digital channels, whilst our single customer view for our team empowers the team to provide the right advice consistently to customers.” BRUCE MCGREGOR EXECUTIVE DIRECTOR QBCC 16 Building a single view of the Customer – Deloitte Customer Practice
  17. 17. Contact us DAVID TAN Partner, Deloitte Digital – Customer Technology Tel: +61 2 9322 3033 Mob: +61 413 887 220 davitan@deloitte.com.au MATT CAMPION Director, Deloitte Digital – Customer Technology Tel: +61 7 3308 7313 Mob: +61 404 810 623 mcampion@deloitte.com.au CALLAM PORCH Manager, Technology Advisory – Strategy & Design Tel: +61 7 3308 7424 Mob: +61 409 347 790 cporch@deloitte.com.au 17 Building a single view of the Customer – Deloitte Customer Practice
  18. 18. GENER AL INFORMATION ONLY This presentation contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this document, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this presentation. ABOUT DELOIT TE Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www. deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence. ABOUT DELOIT TE AUSTR ALIA In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit Deloitte’s web site at www.deloitte.com.au. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited © 2016 Deloitte Touche Tohmatsu Limited Pty Ltd

This paper reviews the customer transformation program at the Queensland Building Construction Commission against the broader context of digital disruption in the public sector in Australia.

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