HFS Top 10: Digital Associates Services L Accenture

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HFS Top 10: Digital Associates Services Service provider solutions: using conversational tools for business outcomes Excerpt for Accenture January 2021

HFS Research author: Melissa O’Brien, VP Research “Taking a OneOffice approach to enterprise operations requires a shift to focus on both the human elements of business and intelligent technology to “support human experiences. We’ve been following the development of automated conversational tools and their role in this shift for several years, but this discussion has recently accelerated and matured. Advanced conversational tools in the enterprise are ‘digital associates’ that work for and with people to create better experiences, and focus on business outcomes, across their stakeholder ecosystems.”

Melissa O’Brien, Research VP, HFS

2 Executive summary 12

3 Top 10 results: Digital associates services 2020 15

4 Provider profile: Digital associates services 2020 19

5 About the author 22 Introduction, methodology, and definitions Introduction—What are digital associates, and why do they matter?

● Digital associates services are at the top of the building blocks of conversational tools, which are client-focused, use various pieces of the ecosystem, and are typically developed as part of a broader business or IT services relationship (as distinguished from the many products and platforms that are less customized). This is not about design and implementation only - but solutions that are embedded in management/BPO deals. Slide 6 provides an overview of the digital associates ecosystem. ● Why “digital associates”? – This report updates the Cognitive Assistant Services Top 10 of 2018. We have shifted the nomenclature for several reasons. First, the term “cognitive” is over-used and often a misnomer. Second, “cognitive” capabilities are not always necessary for effective business outcomes. ● Many of the enterprises we spoke to are building from the bottom up, seeking assistants with the potential to be more cognitive. At the moment, many solutions address more mundane and repetitive elements. ● There is a range in the sophistication of the conversational design and ability to incorporate AI and analytics. (See slide 8.) – Digital associates are an essential element of sharing information, insight, and, most importantly, communication between all of an organization’s stakeholders. They are an important tool in the OneOffice for enabling augmented employee experience (EX) and customer experience (CX). (See slide 7.) ● For the HFS Top 10: Digital Associates Services report, we assessed 17 service providers for how well they are helping their clients embrace and realize results from deploying digital associates services in a wide array of business and IT functions. ● This report rates how well each provider performed across a defined series of execution, innovation, and voice of the customer criteria, showcasing the overall leaders and top 10 performers by sub-category. We’ve included detailed profiles on each provider showcasing their performance, strengths and development areas, and key facts.

Client-focused, using various pieces of the ecosystem and a combination of internal and partner tools, typically Service developed as part of a broader provider Service providers profiled in this business or IT services relationship solutions report, logos on slide 9

Focused on specific geographies, Niche vendors industries, or use cases

Products and Broad-based packaged digital Enterprise software platforms * Levelcustomization of and associates products products (Profiled in separate

specificity to industry or process or industry to specificity Top 10 report)**

Primarily cloud providers focused on customizable NLU capabilities Developer-focused tools and and libraries platforms

*Logos for illustrative purposes, not exhaustive **See Digital Associates Products Top 10 2020 Page 6 © 2021, HFS Research Ltd Excerpt for Accenture The digital workforce is a critical pillar of the HFS OneOffice™ Digital associates are a huge part of HFS’ OneOffice, particularly as it affects EX as part of the augmented workforce and CX across all of the elements of digital, touchless, personalized engagement.

“Digital associates are augmenters of the human experience for both customers and employees. The more sophisticated (and embedded) they become, the more value they add to a OneOffice experience and mindset.”

—Phil Fersht, Founder and CEO, HFS Research

● HFS developed the Triple-A Trifecta to provide a framework that unifies how digital transformation change agents work together to deliver business outcomes. The Trifecta consists of automation, Exponential smart analytics, and artificial intelligence. Two critical points to note are Automation value – The Trifecta elements intersect with each other. While each element of the Trifecta has a potential distinct value proposition (automation drives efficiency, smart analytics improves decision- • Superpower: Increases making, and AI solves business problems), there is increasing convergence between the efficiency and productivity three elements. For instance, smart analytics are increasingly reliant on AI tools such as • Tech examples: RPA, RDA, natural language processing (NLP) to conduct search-driven analytics, neural networks for data exploration, and learning algorithms to build predictive models. BPM, scripts, macros, rules – The Trifecta is nonlinear and without a definite starting point. Transformation is not a linear engines, low code/no code progression. Enterprises can start anywhere across the Trifecta. It is not necessary to start development platforms with basic automation and then advance to AI-based automation. However, it is critical to understand the business problem that you are trying to solve and then apply the relevant value lever or a combination of value levers.

● All of the above applies to the development of digital associates. Not all of the use cases we reviewed for this report fully leverage the potential value of all three elements, but, as an ideal, digital associates will have a fundamental capability of all three. Analytics AI – Automation: Even the most simplistic rules-based chatbots are automation tools aimed at • Superpower: Improves • Superpower: Solves increasing efficiency. decision making business problems – AI: More sophisticated conversational chatbots will leverage NLP (natural language processing) to improve the user experience, to handle more complicated customer queries, • Tech examples: Data • Tech examples: and to understand intent or informal language. ingestion, reporting and Machine learning, – Analytics: Often, digital associates will leverage embedded analytics to help with visualization, predictive computer vision, natural personalization or aid in decision making, for example, when a live sales or customer service and prescriptive modeling, language processing, agent uses a DA to determine the next best action or what product to cross-sell or up-sell to decision support, process digital associates, deep a customer. intelligence learning Digital associates that make use of all three legs of the Trifecta stool are better poised to be power-packed tools for solving business problems.

This report relied on myriad data sources to support our methodology and help HFS obtain a well-rounded perspective on the digital associates capabilities of each of the 17 service providers covered in our study. Sources are as follows:

RFIs and briefings Reference checks HFS surveys Other data sources

• RFIs—Each participating • We conducted reference • Each year, HFS fields multiple • Public information such as vendor completed a detailed checks with 43 active clients demand-side surveys in which press releases and web sites. RFI. of the study participants via we include vendor rating • Ongoing interactions, • Vendor briefings—HFS detailed phone-based questions. For this study, we briefings, virtual events, etc., interviews. drew on more than 2,100 with in-scope vendors and conducted briefings with their clients and partners. executives from each vendor. vendor ratings from 2020 enterprise demand-side surveys.

We assessed and analyzed each of the criteria outlined below specific to digital associates’ offerings

Execution—33% Scale and maturity (33%) Breadth of services (33%) Delivery capabilities (33%) • Clients—number and scope of relationship • Global presence for digital associates (consumption) • Flexibility and ease to work with • Revenues • Services functions and use cases • Use of digital associates internally • Headcount • Industries served • Talent and resources Innovation—33% Vision and roadmap (33%) Design for business outcomes (33%) Technology enablement (33%) • Growth • Design capabilities • Cultivation of proprietary IP • Thought leadership • Co-innovation and collaboration approaches • Use of partners to develop digital associates • Investment in R&D • Delivery of business outcomes • Embedding intelligence into digital associates • Patents • Outcome-based commercial models • Articulation of roadmap Voice of the customer (VOC)—33% • Direct feedback from enterprise clients via reference check interviews • HFS Voice of the customer rating data • Referenceability: provision of references and responsiveness

Digital associates are most effective when leveraging the full power of the Triple-A Trifecta. Not all of the use cases we Digital associates are a key reviewed for this report fully leverage the potential value of all three elements, but, as an ideal, digital associates will element of emerging tech have a fundamental capability of all three.

Digital associates were a clear superhero in the COVID-19 pandemic due to their ability to handle volumes of Digital associates were on interactions when human associates were not available or in flux to work-from-home situations. COVID-19 accelerated the roadmap, but COVID-19 put them in the fast lane these digital initiatives and created a wave of cost reduction initiatives, both trends that digital associates were prime to assist with. (See slide 14.)

Most of us think of virtual or digital assistants in the way we use them in our own personal (consumer) lives, but digital Digital associates are at work across the enterprise associates are working across many enterprise functions, ranging from typical customer service use cases to procurement, HR, IT helpdesk, finance, accounting, and much more.

We assessed 17 service providers across execution, innovation, and voice of the customer criteria. The top five leaders are 1. Accenture, 2. IBM, 3. Cognizant, 4. TCS, and 5. Infosys. These providers had significant client base maturity and The winners delivery capabilities, significant partnerships and proprietary IP, and a solid client base, which is seeing solid business outcomes from the services. We conducted 43 reference interviews for this study and looked at over 75 case studies. User expectations are Voice of the customer: Customer needs are fueling expanding and accelerating, and the depth of the tools customers require has increased. The projects to deliver digital increasing complexity associate solutions are becoming more complex, requiring expertise in diverse disciplines such as design thinking, mobility, IoT, integration, data modernization, behavioral analytics, data science, security, and privacy. This complexity is a marked increase over our 2018 assessment.

Which of the following statements most accurately captures the current sentiment for your organization? Percentage of respondents We need to accelerate digital initiatives as COVID-19 becomes the 43% 17% 8% burning platform to change We need to drive profits with a purpose that impacts broader 25% 7% 7% stakeholders beyond shareholders We require a new wave of “cost reduction” as we enter a 13% 15% 11% recessionary economy We now have a real opportunity to manage the enterprise technical debt 8% 17% 10% We need to focus on virtual consumer experiences for the new 3% 13% 17% digital world We need to de-risk our supply chain to ensure that it is far more 3% 9% 17% resilient We need to adapt and change our business model to have a 3% 7% 19% better chance to come out stronger at the other end We need to focus on process debt (wasteful activities) 2% 15% 10% Rank 1 Rank 2 Rank 3 Sample: 150 C-level executives across the Global 2000 enterprises Source: HFS Research, 2020

Top 10 results: Digital associates services 2020 Digital associates services—summary of providers assessed in this report

Provider (alphabetical) HFS point of view on digital associates services capabilities Accenture Leading with a wide breadth of innovative services targeting industry use cases and key customer outcomes CSS Corp A steadily expanding acumen for services utilizing “digital co-workers” Cognizant An experience-focused digital associates innovator Concentrix A customer experience expert empowered by workforce innovation DXC An industry-focused digital associates approach EXL Domain-focused digital associates provider leading with analytics excellence Genpact Combining data and industry expertise for process improvements HCL A unique product focus with a breadth of implementations across enterprise functions IBM Innovation powerhouse with digital associates at scale across a wide breadth of services Infosys A solid and skilled partner with innovative ideas LTI A holistic AAA-focused strategy for business outcomes with digital associates Sitel A customer experience expert with brand voice prowess for digital associates Sutherland Bringing digital associates to life with human-centric experience design TCS Vast breadth of digital associates services focused on “conversational experience” TELUS International A flexible customer experience expert for digital associates solutions TTEC An employee experience-focused approach to digital associates WNS A collaborative CX digital associates provider focused on outcomes

HFS Winners Circle Top 5 providers overall across execution, innovation, and voice of the customer criteria #1 #2 #3 #4 #5

Execution powerhouses Innovation champions Outstanding voice of the customer Top 3 providers on execution criteria Top 3 providers on innovation criteria Top 3 providers on voice of the customer criteria #1 #2 #3 #1 #2 #3 #1 #2 #3

Other notable performances ● Concentrix ranked #2 for delivery capabilities ● Genpact ranked #2 on design for business outcomes ● Infosys ranked #2 for vision and roadmap and #3 for breadth of services and design for business outcomes • Sutherland ranked #1 on design for business outcomes • TELUS International ranked #1 on service delivery

Execution (33.3%) Innovation (33.3%) Overall HFS Top 10 Voice of the Delivery Vision and Design for business Technology position Scale and maturity Breadth of services Overall execution Overall innovation customer (33.3%) Rank capabilities roadmap outcomes enablement

#10

Notes: HFS Top 10 Digital Associates 2020 report assessed and ranked 17 service providers across execution, innovation, and voice of the customer criteria. The inputs to this process included detailed RFI responses and structured briefings with service provider leadership as well as interviews and surveys from their clients. In order to drive objectivity to our research methodology, we interacted with reference clients provided by the service providers as well as non-reference clients sourced through our own network for each vendor assessed. The companies assessed in this report include (in alphabetic order): Accenture, Cognizant, Concentrix, CSS Corp, DXC, EXL, Genpact, HCL, IBM, Infosys, LTI, Sitel, Sutherland, TCS, TELUS International , TTEC, and WNS.

Page 18 © 2021, HFS Research Ltd Excerpt for Accenture Provider profile: Digital associates services 2020 How to read the provider profiles Logo Summary statement about digital associates services capabilities

Dimension Rank Strengths Development opportunities ● Approach to digital associates services. Description of capabilities in terms of leadership, organization, offerings, GTM • What to continue. HFS Top 10 position approach, and identifiable investments in strategy. • Other next steps for development. ● Key differentiators. • Customer critiques. From references, HFS surveys, and ● Impact to clients’ business. Proof points that exemplify digital associates’ impact on business outcomes. enterprise interactions. Ability to execute ● Technology innovation. Notable partnering approach, IP, R&D, etc. ● Customer kudos. From references, HFS surveys, and enterprise interactions.

Scale and maturity

Breadth of services and use cases Sections and headings are standardized for all digital associates services profiles Delivery capabilities Key clients Innovation capability • Key clients utilizing digital associates (preferably named, but in some cases anonymized for client confidentiality purposes)

Key partnerships Notable proprietary IP Highlights and recent developments Vision and roadmap • Must be directly relevant to digital associates • The key points of proprietary IP • Examples include new capabilities developed, new client wins, highlights of case • Includes only most significant partners in studies, or other newsworthy items. Design for business production with client engagements outcomes

Tech enabled capability

Voice of the customer

Dimension Rank Strengths Development opportunities ● Approach to digital associates services. Accenture has invested significantly in developing a full suite of AI assets designed for rapid implementation. With over • What to continue. Industry-leading HFS Top 10 position #1 2,000 dedicated staff, a catalog of assets, and partnerships with technology vendors, Accenture’s global conversational AI practice brings a wealth of experience. thought leadership, impressive R&D Most recently, Accenture is focusing on a set of precision plays supported by a salesforce that is dedicated to digital associates services. It also leverages a and other investment, and network of R&D labs and innovation centers to develop these solutions across the Americas, Europe, and APAC. developing an ever-widening Ability to execute #2 ● Key differentiators. Accenture demonstrated a tremendous breadth of digital associates services by industry, process, and services capability. Aside from the breadth of solutions across digital impressive services ranging from design/build to ongoing service operations like AIOps and Knowledge Engineering services that drive continuous value associates services. realization, thought leadership and messaging stand out as top of the class. Its acquisitions of creative and digital assets, starting with design firm Fjord over seven • Other next steps for development. years ago, help Accenture craft messaging that is meaningful and compelling to attract clients and cement its mindshare in the space. The digital associates space is often Scale and maturity #3 ● Impact to clients’ business. Accenture’s data-driven approach to developing digital associates solutions for clients helps turn insights into action. For example, an ill-defined and confusing to buyers. Intent Discovery Tool uses AI and NLP to help clients understand why their customers are getting in touch. Using a sample of around 20,000-50,000 voice calls, Accenture continue to should work Accenture can draw detailed insights from existing data. These insights help organizations maximize the value of their contact channels and identify where toward becoming the leading voice Breadth of services automation and customer service improvements would be most impactful and drive better business results. Combined with the conversational AI platform plug in a space with confusing and over- #1 and use cases and play offering which helps to make this a reality in a short amount of time. hyped messaging. ● Technology innovation. Accenture has an impressive breadth and depth of proprietary IP developed to assist clients with a wide variety of use cases. Accenture’s • Customer critiques. Customers Conversational AI and SYNOPS platforms are also a boon and complementary solution to digital associates services as it enables delivery of automated business would appreciate a more proactive Delivery capabilities #5 operations services using a data-driven platform to track performance and workflows. and flexible approach at times. ● Customer kudos. Accenture’s Liquid Studios across the world do a lot of prototypes and demonstrations, which helps open clients’ eyes about the design and potential solutions. Clients are very complimentary about the level of expertise, ingenuity, and design capabilities of Accenture’s digital associates solutions Innovation capability #1 Key clients Vision and roadmap #1 • Avianca, Irish Revenue, Vodafone, Sprint, Changi Airport, Enbridge, Texas Unemployment Agency, AgeUk, UK Housing associations

Key partnerships Notable proprietary IP Highlights and recent developments Design for business #4 outcomes • Major technology players: Google Dialog Flow & • Intent Discovery Tool • Collaboration with Amazon to develop HomeCare, a highly advanced voice-controlling CCAI, AWS Lex & Connect, Microsoft Luis & Power • Accenture Conversational AI Platform home assistant that enables the elderly to stay connected with loved ones and medical VA, IBM Watson, Alibaba • HomeCare / Intient professionals during the pandemic. Tech enabled • Specialist players: Nuance, Genesys, Salesforce, • Omnichannel Analytics Services: A • Q Voice, which Accenture collaborated on, won a Beazley design award. #1 capability Pegasystems, Oracle, Contact Engine, Ipsoft Amelia, complementary suite including intent analytics, • Continuous additions to its portfolio of over 600 patents, with innovations on machine Artificial Solutions, Liveperson, Xsell, ASAPP, Five9, customer journey models, intent optimization, learning and advanced audio analytics for voice. boost.ai omnichannel analytics, industry cartridges, and • Became a provider of digital associate services at Texas Workforce Commission and Bright Voice of the customer #2 • Academic: UC Berkley, Stanford, MIT, DFKI, The Alan intent library. Horizon, to name a few. Turing institute, NSF • Synops

Melissa O’Brien Research Vice President [email protected]

Melissa O'Brien is Research Vice President, Customer Engagement, Retail and Travel Strategies at HFS Research. Melissa leads HFS’ research initiatives for digital front office services, including customer engagement operations, digital marketing, cognitive agents and CX design and consulting, focusing on the trends and change agents that are driving customer experience across the enterprise. In addition, her industry research focuses on key dynamics within retail, CPG, travel and hospitality, with regards to customer-centric strategies, intelligent operations and service delivery.

The HFS mission is to provide visionary insight into major innovations impacting business operations, including: automation, artificial intelligence, blockchain, Internet of things, digital business models, and smart analytics. HFS defines and visualizes the future of business operations across key industries with our Digital OneOffice™ Framework.

HFS influences the strategies of enterprise customers to help them develop OneOffice backbones to be competitive and to partner with capable services providers, technology suppliers, and third-party advisors.

Read more about HFS and our initiatives on www.HFSresearch.com or follow @HFSResearch.

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