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					CUSTOMER PROS                                        SOW




                    CUSTOMER PROS.

                 STATEMENT OF WORK




                  Pat Maigler, Bob Parker,
                Jordan Smith, Angela Widjaja

                       March 7, 2010




Ver. 2.0                  11/24/2007           Page 1 of 10
CUSTOMER PROS                                                           SOW


                           APPROVAL SHEET

                       PREPARED BY CUSTOMER PROS:




                _____________________________________________
                                Pat Maigler




                _____________________________________________
                                Bob Parker



                _____________________________________________
                                Jordan Smith



                _____________________________________________
                               Angela Widjaja




                              APPROVED BY




           ____________________________________________________
                        Joe Blow, VP of Client Relations




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1.0 Introduction _________________________________________________________4
  1.1 Background _____________________________________________________________ 4
  1.2 Technical Goals and Objectives ____________________________________________ 5
  1.3 Project Clients and End Users ______________________________________________ 5
  1.4 Responsibilities __________________________________________________________ 6
  1.5 Revision History _________________________________________________________ 6
2.0 Business Requirements ________________________________________________6
  2.1 Project Deliverables ______________________________________________________ 6
     2.1.1    Technical Deliverables _____________________________________________________ 6
     2.1.2 Non-Technical Deliverables _____________________________________________________ 6
  2.2 Other Project Activities ___________________________________________________ 7
  2.3 Project Standards ________________________________________________________ 7
     2.3.1   Internal __________________________________________________________________ 7
     2.3.2   External _________________________________________________________________ 7
  2.4 Funding Source __________________________________________________________ 7
  2.5 Project Conceptual Estimate _______________________________________________ 7
     2.5.1   Project Size ______________________________________________________________ 8
     2.5.2   Project Critical Computer Resources ___________________________________________ 8
     2.5.3   Project Effort and Duration __________________________________________________ 8
     2.5.4   Personnel Resource Estimates ________________________________________________ 8
     2.5.5   Project Cost ______________________________________________________________ 8
  2.6 Schedule Requirements/Constraints _________________________________________ 8
  2.7 Resource Requirements/Constraints ________________________________________ 9
  2.8 Project Assumptions and Alternatives _______________________________________ 9
     2.8.1 Assumptions _________________________________________________________________ 9
     2.8.2 Project Alternatives ___________________________________________________________ 9
  2.9 Risk____________________________________________________________________ 9
3.0 Project Success Criteria _______________________________________________10
Attachments ___________________________________________________________10




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1.0 Introduction

1.1 Background

Scope
Problem: Our financial services firm is losing customers to competitors, and while
making a profit, is not as profitable as competitors. In a recent industry survey of
financial institutions, our company scored 68 out of 100, which was over 10% lower than
any of our competitors on the question, "How Well Do You Know Your Customer?"
According to the industry journal's research, customer retention, profitability, and
referrals, are all closely correlated with customers' impressions of how well the firm
knows their specific situation, so this metric is closely watched.
        Our firm has 100,000 customers nationally, and 100 support employees in one
location in a call center. Currently, it is difficult for employees to assess how to handle a
call and to direct a customer, once the initial concern is addressed, as there are separate
systems to review customer email history, customer order history, customer payment
history, and customer service incident history.
        In addition, each of these systems produce separate reports, which are used by
different managers to make decisions about customers. As a result, it is difficult to form
a coherent segmentation strategy, and to accurately forecast revenues, costs, and profits.
One administrative assistant spends most of her time combining data from these separate
reports and systems to create summary reports for executives. Data about individual
customers from different systems is never aggregated or compared.

Objective: Provide a coherent representation of a customer’s satisfaction and
profitability. These factors drive how an associate should interact with a customer, so
this information must be presented in such a way that the associate can rapidly assess and
use this information to guide the customer conversation. A visual representation utilizing
colors, shapes, and axes is a likely solution.

In addition, the system should be able to report on data pulled from multiple systems for
individual customers and groups of customers. This should help managers to tie
individual incidents to trends, and help executives to segment customers further and to
create appropriate long-term strategies.

The increase the effectiveness of customer profiling and segmentation due to the new
system will be measured through the following:
     Up-sell attempts: goal increase 20%
     Up-sells successes: goal increase 10%
     Referral rates: goal increase 10%
     Save-rates: goal increase 10%
     "Know Your Customer Score"
           o Goal: 80+/100 (over 17% increase)
           o Pass at least 1 competitor in next increased customer satisfaction ratings


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          Increased Profit: goal 10%

Proposed Solution: Feed applicable data from existing systems into an operations
database in order to create historical customer profiles, with primary dimensions of
profitability and satisfaction. In addition, utilize real-time data from the IVR/PBX (or
other real-time communication channel, like IM) to augment the historical profile.

Graphically display this real-time profile on the associates’ monitor. The system will
incorporate data from the phone system, and past customer history recorded in the CRM,
such as survey results, products and associated revenue, cost of support (from emails,
calls, and follow-up), length of customer relationship, family and friends: potential for
referrals. We will also track the profile over time, to assess trends and further segment
(e.g. route to a different call center, or sell those accounts).

Further, the software will allow groups of customers to be combined and a single profile
created from their average. This may be useful to evaluate the severity of calls waiting in
a queue.

In addition, the software will track sales associates up-sell success rate as compared to the
associated client profiles. This will help to track associate effectiveness


1.2 Technical Goals and Objectives

1) Combine Data from following systems into a single interface
     CRM (Customer Relationship Management System)
     IVR (Interactive Voice Response)/Phone System
     Email Systems
     Costing/Accounting System (for average cost of support for calls/emails)

2) Calculate and Segment
Pulling Data into Tables in a Database and Performing Profit Calculation from projected
revenue less projected costs and Satisfaction Algorithm from past data and current call
data. Store both historical customer profile, and real-time only profile, as well as
combined profile. Provide ability to group customers into a single profile, and to track a
profile over time.

3) Display Graphically
Create a 2-D (or possibly 3-D) graph using dimensions of profitability and customer
satisfaction and ideally allow associate to animation of relationship from start (or project)
to present, or allow time slices (on the same graph).


1.3 Project Clients and End Users




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Project Client: Client Relations Vice President (oversees call center operations)

End Users: Sales and support associates in a financial services call center will be the
primary users, especially of the real-time data. However, call center managers, human
resources managers, sales strategist, and marketing professionals will likely use the
aggregated data more.

1.4 Responsibilities

The project sponsor, Joe Blow, VP of Client Relations is responsible for funding the
project. Telecom manager, John Doe will provide expertise on the phone system. Jane
Dow will be the developer on the project.

Angela Widjaja will be the Business Process Analyst for the project. Project Manager
Jordan Smith and Bob Parker the Solution Delivery Manager, will provide project
management and oversight and will ensure the code is developed per the needs of the
client by the IS development staff. All project documentation will be produced by IS.
Pat Maigler will server at the Systems Analyst and perform primary design work.


1.5 Revision History

   Version           Date              Author                  Reason for Change
                  Modified
           1     10/7/2007     CUSTOMER PROS            Initial issue
           2     11/24/2007    CUSTOMER PROS            Professor Jennex Feedback


2.0 Business Requirements

2.1 Project Deliverables

    Technical Deliverables

          Software Requirements Specification
          Functioning Application

    2.1.2 Non-Technical Deliverables

          Statement of Work (SOW) (this document)
          Software Development Plan (SDP)
          Test Plan/Scripts




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2.2 Other Project Activities

Regular project meetings will be held weekly in order to track the progress of the
development and any changing requirements.


2.3 Project Standards

           Internal

           No internal standards have been established.

           2.3.2   External

           This project uses the IEEE standards technical implementation, with slight
           modifications.

           The Rapid Application Development (RAD) Life Cycle
               Requirements Planning
               Implementation with a graphical language
               User Evaluation/Requirements refinement/ Reconstruction
               Final approval/testing
               Cutover to a final platform
               Final implementation



2.4 Funding Source

Joe Blow, VP of the Client Relations division has committed to sponsor and fund this
project in its initial phase. The reporting function of the application will replace the
manual effort required by a full time employee, so that employee is free to work on other
tasks. This cost savings will be attributed to the project's ROI. In addition, this project
should generate significant increases in future revenue through up-sells, referrals, and
saves.


2.5 Project Conceptual Estimate

Dates, costs and other estimated items listed below are conceptual estimates based on
current knowledge of the call center and associated metrics. These estimates are only
expected to be within ±50% of the actual project costs. More refined project estimates
will be conducted at future project stages, and those estimates will also account for the
ongoing maintenance costs, which are not included here. Conceptual level estimate
worksheets are attached to the SOW as an appendix.


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           2.5.1   Project Size

           End-user count: 100 sales associates and 20 managers
           Project Team Size: 6 people, as identified above
           Project Cost: $146, 250

           2.5.2   Project Critical Computer Resources

           An additional application server, and an additional database. Tomcat application
           configuration on Linux OS servers and Oracle DB will be used in production, but
           not in our model.

           2.5.3   Project Effort and Duration

           Using feature point analysis the project effort is estimated to be 2000 hours with
           an expected duration of 4 months. The estimate is provided as Attachment 1. A
           breakdown of activities is as follows:

           Construction                  600
           Analysis                      600
           Design                        240
           Formal Reviews                30
           System Testing                240
           Configuration Management      30
           Project Management            60
           End-User Training             200
           Total                         2000 hours

           2.5.4   Personnel Resource Estimates

           The following resources are needed:

              Developer – 1
              Systems Analyst – 1
              Business Process Analyst – 1
              Project Manager -1
              Solution Delivery Manager – 1
              Telecom Manager – 1
              VP Client Relations – 1

           2.5.5   Project Cost

              Developer: $60/hr salary + overhead x 450 =                     $27,000
              Systems Analyst: $60/hr salary + overhead x 400 =               $24,000


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              Business Process Analyst: $50/hr salary + overhead x 400 =         $20,000
              Project Manager: $70/hr salary + overhead x 350 =                  $24,500
              Solution Delivery Manager: $75/hr salary + overhead x 250 =        $18,750
              Telecom Manager: $70/hr salary + overhead x 100 =                  $7000
              VP Client Relations: $100/hr salary + overhead x 50 =              $5000
                  Sub-Total for Personnel Costs                                   $126,250

           Hardware Costs
               Application Server:                                               $10,000
               Database Server:                                                  $10,000
                 Sub-Total for Hardware Costs:                                    $20,000

                  Total                                                           $146,250
2.6 Schedule Requirements/Constraints

The project schedule should be completed by the end o the second fiscal quarter 2008, as
no funding has been budgeted beyond then.

2.7 Resource Requirements/Constraints

The only resource restraints are associated with personnel. The project assumes the
above listed personnel are available for the project.

2.8 Project Assumptions and Alternatives

           2.8.1 Assumptions

           The basic assumptions made that impact the success of the project are the
           availability of critical personnel and the ability to extract or export data from the
           IVR and CRM systems.

           2.8.2 Project Alternatives

           The alternative would be the status quo where individual reps make choices on
           how to handle customers, or attempting to pursue the same strategy with each
           customer.

2.9 Risk

There are three potential risks. These, with their mitigating actions are as follows:

   Unavailability of Personnel – this is mitigated by cross-training personnel to share
    responsibilities.



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   Scope creep due to unexpected desires of the client – this is mitigated by thoroughly
    assessing these standards and including them in the design document.
   No immediate improvement in profitability is recognized– this is mitigated by
    implementing training, and evaluating customer satisfaction and retention changes.
   System is not user friendly and disrupts the sales and support processes – this is
    mitigated by rolling out the project to a test (Beta) group first and then tweaking it,
    and ensuring that it is successful before full implementation.

3.0 Project Success Criteria

The project will be deemed successful if the Beta group, selected by VP of Client
Relations, Joe Blow, on average, assess that 95% of the testing plans laid out after the
design stage were successfully completed. In addition, mitigation strategies must be
developed for any items that do not pass UAT (User Acceptance Testing) before the
project will be deemed complete. Any additions, deletions, or deviations from the testing
success criteria must adhere to a formal change request process, with written approval
and confirmation from both parties.

Attachments

Attachment 1 –Cost Estimate




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