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DIGITAL
CUSTOMER SERVICE
Toward a Seamless Customer Experience
© Operational Excellence Consulting. All rights reserved.
© Operational Excellence Consulting
LEARNING OBJECTIVES
2
Acquire knowledge and
the key concepts of Digital
Customer Service
Highlight the pitfalls to
avoid and success factors
for Digital Customer
Service
Describe the approach,
practices and skills for
delivering efficient and
effective Digital Customer
Service
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg
© Operational Excellence Consulting
CONTENTS
3
INTRODUCTION &
KEY CONCEPTS OF
DIGITAL CUSTOMER
SERVICE
01
APPROACHES &
PRACTICES OF
DIGITAL CUSTOMER
SERVICE
02
TECHNIQUES &
SKILLS FOR HUMAN-
SUPPORTED
DIGITAL CHANNELS
03
PITFALLS TO AVOID
& FACTORS FOR
SUCCESS
04
© Operational Excellence Consulting
Companies now are increasingly inclined
toward altering their business models to
accommodate the changing customer
demands.
DRIVEN BY TECHNOLOGY, DIGITAL IS THE NEW WAY OF THINKING AND
DOING THINGS
4
© Operational Excellence Consulting
DIGITAL CUSTOMER SERVICE FORMS A CRUCIAL PART OF BUSINESS
MODELS TODAY
5
Surprisingly, this change is not driven by the
business ecosystem. Instead, it is the customers
changing behavior that forms the core of this
shift towards digital customer service.
© Operational Excellence Consulting
EXAMPLES OF TOUCHPOINTS ALONG A DIGITAL CUSTOMER
EXPERIENCE JOURNEY
6
Viewing social
media ads, e.g.
Facebook
Testing out a promo
code in the
checkout
Logging in to their
personal account
Reading customer
reviews
Viewing a website
on mobile
Receiving an order
confirmation email
Completing an
online transaction
Browsing through
products online
Processing a
return/refund online
Messaging with an
AI chatbot for
assistance
Posting a product
review on social
media
Receiving a
return/refund
confirmation email
© Operational Excellence Consulting
80%
of customers now prefer to get a response in one hour or less,
which makes it vital for you to cater to customer requests coming
from all directions.
7
Source: Salesforce Research, 2021
© Operational Excellence Consulting
THE EVOLUTION OF COMMUNICATION – THE SLOW MARCH TOWARD
SPEED
PONY
EXPRESS
POSTAL
SERVICE
PHONES EMAILING
8
INSTANT
MESSAGING
Increasing speed of communication
© Operational Excellence Consulting
SOME FACTS ABOUT DIGITAL CUSTOMER SERVICE
9
Sources: Salesforce Research, 2021
Of customers expect
companies to accelerate digital
initiatives due to COVID-19
Of customers expect to do
more online shopping after the
pandemic than before
Of business buyers expect to
conduct more business online
Of customers say they are
online more often than not
Of customers say it generally
feels like sales, service, and
marketing don’t share
information
Of customers expect consistent
interactions across
departments
88% 58% 80%
68% 54% 76%
© Operational Excellence Consulting
INCREASED DEMAND FOR DIGITAL CUSTOMER SERVICE
10
Customer
Preferences
Customers demand their
channel of choice,
whatever that channel
may be, to engage with a
company.
Competition
Customer service
organizations are rapidly
adopting digital channels
and capabilities to meet
customer needs and set
them apart from their
competition.
Cost
Live channels such as
phone, chat, and email are
much more costly than
digital channels, and many
companies are under
pressure to reduce the cost
to serve customers.
Scaling
Scaling resources to meet
increased demand,
especially from consumers
that instinctively reach for
their mobile device to
engage with companies
throughout their entire
purchase.
© Operational Excellence Consulting
WHAT IS DIGITAL CUSTOMER SERVICE?
11
Digital customer service (DCS) is a company’s
collective efforts to engage customers through
digital means. This includes delivering support and
marketing processes over digital channels, like live
chat, email, video chat, chatbots, or text messaging.
© Operational Excellence Consulting
WHAT CHANNELS DOES DIGITAL CUSTOMER SERVICE INCLUDE?
12
Social
Video
Email
Self Service
Messaging
Voice
AI & Chatbots
Co-
Browsing
Digital Customer
Service
© Operational Excellence Consulting
WHAT DIGITAL CUSTOMER SERVICE IS NOT
13
Only for
e-commerce
companies
For millennials and
Gen Z who demand
online experiences
Creating a support
ticket
Adding a dumb
chatbot or other
digital silos
Replacing human
support with AI
Automation or
buying a new CS
system
Doing away with
personalization
Bouncing
customers from
channel to channel
© Operational Excellence Consulting
WHY IS DIGITAL CUSTOMER SERVICE IMPORTANT?
14
Improved operational
effectiveness
Improved customer
journey
Differentiation from the
competition
Increased customer
engagement
Lower cost to serve
Increased revenue Reduced agent attrition
Higher customer
satisfaction
© Operational Excellence Consulting
THE IDEAL CUSTOMER SERVICE – BALANCING THE HUMAN TOUCH OF
TRADITIONAL CHANNELS AND THE EFFICIENCY OF DIGITAL
15
TRADITIONAL CHANNELS DIGITAL CHANNELS
VS
Examples: phone and face-to-face Examples: social media and live chat
Labor intensive Require less manpower
Talk to one person at a time Serve multiple customers at a time
Require human support Require less/no human support
Higher cost to serve Lower cost to serve
Low efficiency High efficiency
© Operational Excellence Consulting
CONSUMERS EMBRACE DIGITAL BUT STILL CALL FOR SUPPORT
16
Source: BCG-NICE Consumer Survey, 2016
82
60
46
Web Interactive
voice
response
Mobile app
Self-serve
82
46
30 28
Voice agent Live chat Community
forums
Social media
Human assisted
In a survey, 82% of consumers in a sample from advanced economies
use a web self-service channel. However, the survey also found that
82% of consumers still call contact centers to speak with agents.
The continued dependence on human assistance indicates that companies and
their customers are not fully capturing the benefits of digital customer service.
© Operational Excellence Consulting
WHY DOES DIGITAL CUSTOMER SERVICE FAIL?
17
By adding new digital silos, many companies
have created disjointed islands of context,
knowledge bases, and automation.
© Operational Excellence Consulting 18
EXCELLENT DIGITAL CUSTOMER SERVICE ENTAILS PERSONLIZATION
AND EMPATHY
Source: Adapted from Salesforce Research
Customers demand digital-first
convenience and are leaning on brands
to innovate like never before. They’re
seeking not just more personalized
experiences, but empathetic ones.
Simon Mulcahy
Salesforce Chief Innovation Officer
“
”
© Operational Excellence Consulting
OMNICHANNEL IS A PREREQUISITE FOR A GREAT CUSTOMER
EXPERIENCE
19
● Omnichannel support allows
customers the ability to reach out
on a variety of channels such as
email, live chat, social media,
mobile app messages and voice
● An omnichannel support system
enables customers to contact you
on their preferred channel, and the
conversation continues between
channels, ensuring all the relevant
information stays in one place
Call Center
Social
Retailer
e-Commerce
Web Portal
Mobile
Kiosk
Web Chat
OMNI-
CHANNEL
© Operational Excellence Consulting
BENEFITS OF BUILDING AN OMNICHANNEL EXPERIENCE
20
Customer
satisfaction
Dealing with a company
across multiple channels
is smoother, simpler, and
more intuitive. There are
fewer hoops to jump
through, and the business
does the work for them.
Saves time and
money
For businesses, the
smooth efficiency of an
omnichannel strategy
immediately delivers a
return on investment by
saving money and cutting
down on time and
resources associated with
organizational silos.
A better view of the
customer journey
An omnichannel
experience strategy gives
you a bird’s-eye view of
your customer’s journey,
however they choose to
interact with you. Insights
can be gathered from the
data and improvements
can be made.
A stronger
brand
Over time, a powerful and
lasting benefit develops
from omnichannel
commerce – a stronger
brand. Happy customers
are more likely to develop
brand loyalty and
recommend the business
to others.
Better employee
experiences
Employees have better
experiences at work and
feel more empowered in
their jobs, because
they’re working within a
system based on multiple
channels that are robust,
flexible, and effective.
This improves retention
and engagement.
© Operational Excellence Consulting
“
It takes 20 years to build a
reputation and 5 minutes
to ruin it. If you think about
that, you’ll do things
differently.”
WARREN BUFFET
21
© Operational Excellence Consulting
STRATEGIES FOR BUILDING AN EFFECTIVE DIGITAL CUSTOMER
SERVICE
22
Give customers self-
service options
Understand which
channels your customers
use
Make sure customers can
always reach a human
being
Give agents the resources
they need for success
Train agents so they can
deliver the best digital
customer service possible
Monitor analytics
© Operational Excellence Consulting
HOW CAN YOU DEVELOP AN OMNICHANNEL APPROACH?
23
Design for users, not channels
2
Integrate around a centralized
system
3
Identify and break up
organizational silos
1
Take a journey-level approach
5
Apply analytics to the entire
dataset
6
Standardize measurements
4
© Operational Excellence Consulting
DIGITAL CUSTOMER SERVICE CHANNELS
24
Email Mobile Messaging
Live Chat Chatbot Social Media
“Contact Us”
Form
Phone Support
Knowledge Base Video Chat Social Groups &
Online Communities
© Operational Excellence Consulting
COMMON MISTAKES TO AVOID IN SOCIAL MEDIA SUPPORT
25
Criticizing the
customer or making a
confrontational reply
Not managing
negative feedback
Sending out over-
abbreviated tweets
and too many
#hashtags
Sounding like a robot
and forgetting to be
human
Not providing a reply
or taking too long to
respond to customer
feedback
Lack of empathy with
customer issues
Not providing
personalized
customer service
Not apologizing for
mistakes or providing
an explanation
© Operational Excellence Consulting
DIGITAL CUSTOMER SERVICE – DO’S
26
Provide self-service
options, e.g. FAQs
Practice good
messaging etiquette
Develop support team
capacity and skills
Resolve the customer
problem in the first
touchpoint
Offer multiple support
channels
Provide personalized
customer service
Simplify automated
phone systems
Promptly respond
to social media
comments and posts
Provide human
support
Be empathetic to
customer’s challenges
Collect and analyze
customer feedback
Thank the customer
for their time and
feedback
© Operational Excellence Consulting
ONBOARDING SERVICE AGENTS TO DIGITAL CUSTOMER SERVICE
27
Implement a
training program
Teach digital
media etiquette
Create a
feedback
mechanism
Provide
knowledge and
resources
Provide a knowledge base
where information is
consolidated and readily
accessible, and make sure
agents know who to talk to
if an issue arises.
Give agents a chance to
familiarize themselves with
new tools and technology.
If possible, consider a
shadowing program where
new agents can observe
someone who has already
been trained.
Digital channels,
especially social media,
have their own rules. Help
your agents learn the
nuances, such as the
meaning and usage of
popular emojis.
Provide regular feedback
from the start, taking
advantage of customer
feedback to provide
specific examples and
opportunities for
improvement.
© Operational Excellence Consulting
TOP FIVE SKILLS TO IMPROVE YOUR DIGITAL CUSTOMER SERVICE
28
Attentiveness
Pay attention to detail
when juggling multiple
chats or emails at the
same time. Agents need
to read carefully, so they
can fully understand the
customer’s issue and
identify how to help.
Responsiveness
Customers expect
companies to respond in
an hour or less. Digital
customer service agents
need to have a sense of
urgency in everything
they do.
Good written
communication
Great email support
requires strong writing
skills. You need to be
able to summarize
issues clearly and
concisely without
including unnecessary
information that could
confuse the customer.
Social skills
On digital channels, it
takes more effort for your
personality to shine
through. Add emojis,
gifs, or friendly banter to
elevate your digital
customer experience
and make it more
enjoyable for the
customer.
Empathy
Agents need to actively
listen to understand
what’s going on with the
customer. Emotions,
both good and bad, can
be harder to identify in
written communication.
Agents should always
assume good intent, and
show empathy for the
customer.
© Operational Excellence Consulting
FOUR IMPERATIVES TO PROMOTE SUCCESS IN DIGITAL CUSTOMER
SERVICE
29
Understand customer
behavior by analyzing
data across all
channels
Co-opt the contact
center to support
digital services
Integrate digital self-
serve and human
support
Reduce failure points
by analyzing human
and digital contacts
Source: BCG, 2017
© Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING

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Digital Customer Service

  • 1. DIGITAL CUSTOMER SERVICE Toward a Seamless Customer Experience © Operational Excellence Consulting. All rights reserved.
  • 2. © Operational Excellence Consulting LEARNING OBJECTIVES 2 Acquire knowledge and the key concepts of Digital Customer Service Highlight the pitfalls to avoid and success factors for Digital Customer Service Describe the approach, practices and skills for delivering efficient and effective Digital Customer Service NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg
  • 3. © Operational Excellence Consulting CONTENTS 3 INTRODUCTION & KEY CONCEPTS OF DIGITAL CUSTOMER SERVICE 01 APPROACHES & PRACTICES OF DIGITAL CUSTOMER SERVICE 02 TECHNIQUES & SKILLS FOR HUMAN- SUPPORTED DIGITAL CHANNELS 03 PITFALLS TO AVOID & FACTORS FOR SUCCESS 04
  • 4. © Operational Excellence Consulting Companies now are increasingly inclined toward altering their business models to accommodate the changing customer demands. DRIVEN BY TECHNOLOGY, DIGITAL IS THE NEW WAY OF THINKING AND DOING THINGS 4
  • 5. © Operational Excellence Consulting DIGITAL CUSTOMER SERVICE FORMS A CRUCIAL PART OF BUSINESS MODELS TODAY 5 Surprisingly, this change is not driven by the business ecosystem. Instead, it is the customers changing behavior that forms the core of this shift towards digital customer service.
  • 6. © Operational Excellence Consulting EXAMPLES OF TOUCHPOINTS ALONG A DIGITAL CUSTOMER EXPERIENCE JOURNEY 6 Viewing social media ads, e.g. Facebook Testing out a promo code in the checkout Logging in to their personal account Reading customer reviews Viewing a website on mobile Receiving an order confirmation email Completing an online transaction Browsing through products online Processing a return/refund online Messaging with an AI chatbot for assistance Posting a product review on social media Receiving a return/refund confirmation email
  • 7. © Operational Excellence Consulting 80% of customers now prefer to get a response in one hour or less, which makes it vital for you to cater to customer requests coming from all directions. 7 Source: Salesforce Research, 2021
  • 8. © Operational Excellence Consulting THE EVOLUTION OF COMMUNICATION – THE SLOW MARCH TOWARD SPEED PONY EXPRESS POSTAL SERVICE PHONES EMAILING 8 INSTANT MESSAGING Increasing speed of communication
  • 9. © Operational Excellence Consulting SOME FACTS ABOUT DIGITAL CUSTOMER SERVICE 9 Sources: Salesforce Research, 2021 Of customers expect companies to accelerate digital initiatives due to COVID-19 Of customers expect to do more online shopping after the pandemic than before Of business buyers expect to conduct more business online Of customers say they are online more often than not Of customers say it generally feels like sales, service, and marketing don’t share information Of customers expect consistent interactions across departments 88% 58% 80% 68% 54% 76%
  • 10. © Operational Excellence Consulting INCREASED DEMAND FOR DIGITAL CUSTOMER SERVICE 10 Customer Preferences Customers demand their channel of choice, whatever that channel may be, to engage with a company. Competition Customer service organizations are rapidly adopting digital channels and capabilities to meet customer needs and set them apart from their competition. Cost Live channels such as phone, chat, and email are much more costly than digital channels, and many companies are under pressure to reduce the cost to serve customers. Scaling Scaling resources to meet increased demand, especially from consumers that instinctively reach for their mobile device to engage with companies throughout their entire purchase.
  • 11. © Operational Excellence Consulting WHAT IS DIGITAL CUSTOMER SERVICE? 11 Digital customer service (DCS) is a company’s collective efforts to engage customers through digital means. This includes delivering support and marketing processes over digital channels, like live chat, email, video chat, chatbots, or text messaging.
  • 12. © Operational Excellence Consulting WHAT CHANNELS DOES DIGITAL CUSTOMER SERVICE INCLUDE? 12 Social Video Email Self Service Messaging Voice AI & Chatbots Co- Browsing Digital Customer Service
  • 13. © Operational Excellence Consulting WHAT DIGITAL CUSTOMER SERVICE IS NOT 13 Only for e-commerce companies For millennials and Gen Z who demand online experiences Creating a support ticket Adding a dumb chatbot or other digital silos Replacing human support with AI Automation or buying a new CS system Doing away with personalization Bouncing customers from channel to channel
  • 14. © Operational Excellence Consulting WHY IS DIGITAL CUSTOMER SERVICE IMPORTANT? 14 Improved operational effectiveness Improved customer journey Differentiation from the competition Increased customer engagement Lower cost to serve Increased revenue Reduced agent attrition Higher customer satisfaction
  • 15. © Operational Excellence Consulting THE IDEAL CUSTOMER SERVICE – BALANCING THE HUMAN TOUCH OF TRADITIONAL CHANNELS AND THE EFFICIENCY OF DIGITAL 15 TRADITIONAL CHANNELS DIGITAL CHANNELS VS Examples: phone and face-to-face Examples: social media and live chat Labor intensive Require less manpower Talk to one person at a time Serve multiple customers at a time Require human support Require less/no human support Higher cost to serve Lower cost to serve Low efficiency High efficiency
  • 16. © Operational Excellence Consulting CONSUMERS EMBRACE DIGITAL BUT STILL CALL FOR SUPPORT 16 Source: BCG-NICE Consumer Survey, 2016 82 60 46 Web Interactive voice response Mobile app Self-serve 82 46 30 28 Voice agent Live chat Community forums Social media Human assisted In a survey, 82% of consumers in a sample from advanced economies use a web self-service channel. However, the survey also found that 82% of consumers still call contact centers to speak with agents. The continued dependence on human assistance indicates that companies and their customers are not fully capturing the benefits of digital customer service.
  • 17. © Operational Excellence Consulting WHY DOES DIGITAL CUSTOMER SERVICE FAIL? 17 By adding new digital silos, many companies have created disjointed islands of context, knowledge bases, and automation.
  • 18. © Operational Excellence Consulting 18 EXCELLENT DIGITAL CUSTOMER SERVICE ENTAILS PERSONLIZATION AND EMPATHY Source: Adapted from Salesforce Research Customers demand digital-first convenience and are leaning on brands to innovate like never before. They’re seeking not just more personalized experiences, but empathetic ones. Simon Mulcahy Salesforce Chief Innovation Officer “ ”
  • 19. © Operational Excellence Consulting OMNICHANNEL IS A PREREQUISITE FOR A GREAT CUSTOMER EXPERIENCE 19 ● Omnichannel support allows customers the ability to reach out on a variety of channels such as email, live chat, social media, mobile app messages and voice ● An omnichannel support system enables customers to contact you on their preferred channel, and the conversation continues between channels, ensuring all the relevant information stays in one place Call Center Social Retailer e-Commerce Web Portal Mobile Kiosk Web Chat OMNI- CHANNEL
  • 20. © Operational Excellence Consulting BENEFITS OF BUILDING AN OMNICHANNEL EXPERIENCE 20 Customer satisfaction Dealing with a company across multiple channels is smoother, simpler, and more intuitive. There are fewer hoops to jump through, and the business does the work for them. Saves time and money For businesses, the smooth efficiency of an omnichannel strategy immediately delivers a return on investment by saving money and cutting down on time and resources associated with organizational silos. A better view of the customer journey An omnichannel experience strategy gives you a bird’s-eye view of your customer’s journey, however they choose to interact with you. Insights can be gathered from the data and improvements can be made. A stronger brand Over time, a powerful and lasting benefit develops from omnichannel commerce – a stronger brand. Happy customers are more likely to develop brand loyalty and recommend the business to others. Better employee experiences Employees have better experiences at work and feel more empowered in their jobs, because they’re working within a system based on multiple channels that are robust, flexible, and effective. This improves retention and engagement.
  • 21. © Operational Excellence Consulting “ It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently.” WARREN BUFFET 21
  • 22. © Operational Excellence Consulting STRATEGIES FOR BUILDING AN EFFECTIVE DIGITAL CUSTOMER SERVICE 22 Give customers self- service options Understand which channels your customers use Make sure customers can always reach a human being Give agents the resources they need for success Train agents so they can deliver the best digital customer service possible Monitor analytics
  • 23. © Operational Excellence Consulting HOW CAN YOU DEVELOP AN OMNICHANNEL APPROACH? 23 Design for users, not channels 2 Integrate around a centralized system 3 Identify and break up organizational silos 1 Take a journey-level approach 5 Apply analytics to the entire dataset 6 Standardize measurements 4
  • 24. © Operational Excellence Consulting DIGITAL CUSTOMER SERVICE CHANNELS 24 Email Mobile Messaging Live Chat Chatbot Social Media “Contact Us” Form Phone Support Knowledge Base Video Chat Social Groups & Online Communities
  • 25. © Operational Excellence Consulting COMMON MISTAKES TO AVOID IN SOCIAL MEDIA SUPPORT 25 Criticizing the customer or making a confrontational reply Not managing negative feedback Sending out over- abbreviated tweets and too many #hashtags Sounding like a robot and forgetting to be human Not providing a reply or taking too long to respond to customer feedback Lack of empathy with customer issues Not providing personalized customer service Not apologizing for mistakes or providing an explanation
  • 26. © Operational Excellence Consulting DIGITAL CUSTOMER SERVICE – DO’S 26 Provide self-service options, e.g. FAQs Practice good messaging etiquette Develop support team capacity and skills Resolve the customer problem in the first touchpoint Offer multiple support channels Provide personalized customer service Simplify automated phone systems Promptly respond to social media comments and posts Provide human support Be empathetic to customer’s challenges Collect and analyze customer feedback Thank the customer for their time and feedback
  • 27. © Operational Excellence Consulting ONBOARDING SERVICE AGENTS TO DIGITAL CUSTOMER SERVICE 27 Implement a training program Teach digital media etiquette Create a feedback mechanism Provide knowledge and resources Provide a knowledge base where information is consolidated and readily accessible, and make sure agents know who to talk to if an issue arises. Give agents a chance to familiarize themselves with new tools and technology. If possible, consider a shadowing program where new agents can observe someone who has already been trained. Digital channels, especially social media, have their own rules. Help your agents learn the nuances, such as the meaning and usage of popular emojis. Provide regular feedback from the start, taking advantage of customer feedback to provide specific examples and opportunities for improvement.
  • 28. © Operational Excellence Consulting TOP FIVE SKILLS TO IMPROVE YOUR DIGITAL CUSTOMER SERVICE 28 Attentiveness Pay attention to detail when juggling multiple chats or emails at the same time. Agents need to read carefully, so they can fully understand the customer’s issue and identify how to help. Responsiveness Customers expect companies to respond in an hour or less. Digital customer service agents need to have a sense of urgency in everything they do. Good written communication Great email support requires strong writing skills. You need to be able to summarize issues clearly and concisely without including unnecessary information that could confuse the customer. Social skills On digital channels, it takes more effort for your personality to shine through. Add emojis, gifs, or friendly banter to elevate your digital customer experience and make it more enjoyable for the customer. Empathy Agents need to actively listen to understand what’s going on with the customer. Emotions, both good and bad, can be harder to identify in written communication. Agents should always assume good intent, and show empathy for the customer.
  • 29. © Operational Excellence Consulting FOUR IMPERATIVES TO PROMOTE SUCCESS IN DIGITAL CUSTOMER SERVICE 29 Understand customer behavior by analyzing data across all channels Co-opt the contact center to support digital services Integrate digital self- serve and human support Reduce failure points by analyzing human and digital contacts Source: BCG, 2017
  • 30. © Operational Excellence Consulting Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg ABOUT OPERATIONAL EXCELLENCE CONSULTING