CASE IN POINT

Using Simulation as a Decision-Making Tool in the Customer Service Operations of LEXIS-NEXIS

LEXIS-NEXIS is the world's leading provider of enhanced information services and management tools. As part of its service, LEXIS-NEXIS provides on-line phone support to all of its customers, helping them find the most effective way of using the system. Due to increases in sales volume, the LEXIS-NEXIS customer base had grown, resulting in an increased number of phone calls, which demanded greater resources. LEXIS-NEXIS had to determine how to continue to be responsive to its customers, while managing costs.

Ann Beeson, Business Information Services Strategy Development Manager, was responsible for developing a customer service strategy that could both anticipate and respond to a wide range of changing business factors which, according to Beeson, were "complex and inter-related." Beeson also wanted to determine the impact proposed software changes would have on productivity.

Steve Gabbard, Director of Business Strategy, recommended that Ann contact Greg Hansen, President of CAPI (Computer Aided Process Improvement), to investigate the use of simulation and modeling using Extend + BPR™ visual simulation software. "I was trying to understand how to manage all the variables that impact customer service," said Ann. "I was grappling with the question of 'How am I going to know how the variables are related, and how can I determine what the outcome will be if one or more of the variables change?' We had gotten to the point where we said, "Let's really understand this."

When Greg met with Ann, he demonstrated how he could tie together all of the parameters that affect a process and how the changes to the process could be tested all at once, one at a time, or some at a time. Says Beeson, "I immediately recognized how this technology would allow me to address the complexity of the customer service process and analyze a variety of scenarios. Prior to creating process models, we had conducted focus groups and had investigated what data was available to help in the analysis of the process. But there was no good way to analyze the data in a meaningful way. Here was the solution we needed. And when Greg demonstrated the model, I truly had what I call an 'ah ha experience.' "

After developing and running the model, the results were rather surprising. The model showed that the software changes being considered would have very little, if any, impact on productivity. Instead, the model pointed to the need for policy and procedural changes, and management concluded that, indeed, software changes weren't the answer. According to Beeson, "Before the model we thought the 'pay-out' on the software was going to be great. However, the results derived from the simulation and modeling prevented us from making an unnecessary investment in time and technology. If we hadn't used modeling, I'm sure we could have arrived at other conclusions, made other decisions and spend money needlessly." Concludes Beeson, "The big advantage of using a tool like Extend+BPR and working with a consultant like Greg is that not only can we determine the impact of process changes before they are made, but we can make the right decisions about process changes -- those with positive customer impact. This effort will help LEXIS-NEXIS continue its high level of customer satisfaction."

View of the Simulation and Description of How Data is Obtained

Output Showing Utilization of Workers, Percentage of Calls Answered Within 30 Seconds, etc.