Theoretical Foundations and Research Directions

Question: The Chief Executive Office and Chief Information Officer was impressed by analysis of the contact centre. They would like you to explore the solutions a little further by analysing how to potentially adopt some of your digital innovation recommendations into the organisation. They are interested in understanding which technology needs to be adopted, how it can be integrated, any structural or managerial changes which are needed and how to build digital trust within the community and market place. The organisation does not have a lot of additional capital and as such requires a detailed cost benefit analysis to be performed and KPIs to be identified to ensure the digital innovation is being integrated in an efficient and effective manner. Answer: Introduction: There are several technologies which are coming ever next day with some or the other innovative feature. The customers are fascinated with the latest technological products and services. Therefore the Chief Information Officer and the Chief Executive Officer both are planning to implement digital innovation in their organization i.e. a contact center. Technology is one of the most important factor which drives growth and development in the organizations. The companies which take use of innovative technologies are high in brand awareness as well as in profits (Yoo, et al., 2012). There are several competitive benefits which the organizations achieve if they take use of technology and digital innovations in the processes and operations (Yoo, Henfridsson and Lyytinen, 2010). Following is the information related to the adoption and integration of the new digital innovation as well as of the Cost benefit analysis of the selected technology. Adoption and Integration The CEO and CIO want to implement such digital innovation by which the contact center can be developed into a customer interactive engagement center. For this there is a need of adding human touch in the technological and digital experience. The companies are taking use of such technologies so that they can achieve higher benefit of differentiation and to develop an association with the customers. This human touch or customer engagement can be adopted and integrated in the organization by various digital innovations. From the contact center the organization is required to develop its segment to customer engagement (Fichman, Dos Santos and Zhiqiang (Eric) Zheng, 2014). This will be done by developing an interactive support center. This support center will have two side communication i.e. interaction with the customers as well. There will be installation of programmes which will enable the interaction of the customers and having their views and queries related to the services of the co ntact center (Davey, 2015). Cost Benefit Analysis The Cost benefit analysis is highly essential to be performed of any other technology, product or service before their purchase or integration. This analysis will help in understanding the relative benefit or value the customer will get after expending a specific amount over the purchase of that particular product or technology. The primary objective of this analysis is to know whether the costs incurred for the installation of the technology are high or the benefits attained by the adoption of the technology are more. The comparison will provide the result which will help in the decision making of the organization regarding the adoption of the technology or not. As the budget of the organization is not so high so there is a need to analyze the cost and benefits thoroughly (Watkins, n.d.). Costs Amount (Per annum) Benefits Amount (Per annum) Technical Experts $70, 000 Profits because of increased customer base $200,000 Installation costs $100 (one time) Increase revenues because of brand awareness $50,000 Maintenance cost $50 Total $70,150 $250,000 Net Profit which can be achieved through the adoption of technology: $250,000- $70,150= $179,850. After the analysis of the technology it has been evaluated that there are several benefits of implementing and integrating this technology in the contact center such as this will have higher customer involvement, increased customer base, up surge brand awareness and high profitability. The most and the vital benefit which will be achieved through the implementation of the technology is the saving of time (Davenport, 2013). From the cost benefit analysis there has also been analyzed what all costs will be there for the adoption and integration of the digital innovation. There will be limited costs posed over the company such as the research and development costs, labor cost i.e. the technical experts who will install the programs for having greater customer engagement and the maintenance cost (Van Doorn, et al., 2010). Thus on the scale of cost benefit analysis it can be evaluated that the digital innovation is appropriate according to the small budget of the organization as well as there are high number of benefits which the technology will provide to the organization presently as well as in the longer time frame. Organizational structure To implement or integrate any technology there is a significant need to identify the structure of an organization. Here the organization is a medium size enterprise with average investments and assets with approximately 250 employees. The contact center has good reputation in the regional market. The organization is developing with a continuous growth every year. To implement any digital innovation thereis a need that all the employees or the organizational structure must not have negative implicationsof that technology (Teece, 2010). Thus there will be several sessions and programs for making the organizational structure ready to adopt the digital innovation in the organization. In the present scenario there are several issues related to cyber security. People do not have reliability and trust over the various small organizations and websites a there are high chances of fraud and hacking. Because of the increased online transactions and online banking there are several cases registered on daily basis of breaking of cyber security (PWC, 2013). In an organization related to contact center this is one of the biggest issue which is required to be resolved. The cases of injured cyber security give rise of customer detachment from the organization and the wrong brand image in the industry (Accenture, 2017). Thus it is one of the primary responsibility of the companies to build the digital trust of the customer that there data is secured and encrypted so that no third party can misuse their data. Thus the contact centers take use of digital innovations and technologies for securing and safeguarding the customers data and information (Bijmolt, et al., 2010). Conclusion The report basically provides the increasing use of digital innovations in the organizations for achieving higher growth, success and competitive advantages. From this report it can be concluded that the use of digital innovation is a must ting for the organization having improved processes and revenues. In present scenario there are several contact centers but the actual recognition is achieved when there ate high security and customer engagement programmes in those centers. The contact centers are now changes and are more the customer engagement centers where the customers can also be involved invarious things. The organizations must have an analysisof the organizational structure as well as the cost and benefits of the technology which is going to implement in the organization so that appropriate actions can be took for improvement in the operations. It can also be concluded that to have increased brand recognition the contact centers must develop higher digital trust among the cu stomers. The greater the digital trust will be the higher will be the customer base. Thus from an overall analysis and the report it can be concluded that to achieve competitive benefits and to have a long term sustain ability the organizations must have adoption and integration of digital innovation in its various operations and processes. Recommendations There are few recommendations which can be provided to the organization or to the CEO and the CIO of the company for achieving better results from the integration of digital innovation. There is an extensive need to develop a digital identity in the market so that the customers can be fascinated by the products and services of the company. Thusthe companies must adopt new technologies and digital innovation on a continuous basis to have higher customer base (Jaakkola and Alexander, 2014). By building high amount of digital trust the company will be able to maximize its revenues and growth potential as well as it will also able manage its risks in various opportunities present in the digital age (Blanger and Crossler, 2011). The organization must also prepare its organizational employees of the technology and must be comfortable in using the digital innovation in their work. References Accenture, 2017, How to secure your customer's digital trust, Accessed on: 10th January, 2017, Accessed from: https://www.accenture.com/in-en/insight-cybersecurity-digital-trust-2016 Blanger, F. and Crossler, R.E., 2011. 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