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Hello and welcome to CX Today.
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One of the most significant shifts happening in customer experience technology right now is the ongoing shake-up in the CCAS market.
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You know, vendor consolidation, rapid AI innovation, changing customer expectations, and increasing pressure to modernize are all creating new challenges and opportunities for enterprise buyers.
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So to help us make sense of what this means in practice, I'm joined by Martin Taylor, co-founder and deputy CEO of Content Giro.
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Thank you for joining us, Martin.
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Pleasure to be here.
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So let's start with the big picture.
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You know, the CCAS market seems to be changing faster than ever.
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What's happening right now?
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You know, and why should buyers really be playing paying close attention?
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I suppose we're now in about stage three, I suppose, of the age of AI.
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Um and obviously as as CCAS uh vendors and people in the the CX space, we're right at the forefront of all of that.
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Because as we know, CX is the ideal place to introduce AI and scale it.
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So we've really got uh two major aspects that that the CCAS players are looking at.
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One is augmenting the human agent.
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So that's things like translating, transcribing, summarizing, uh, and then a lot of those uh, I suppose, offline features such as automated quality management, uh further automation around the workforce management, and so on, to increase efficiency.
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Um of course the other side is increasing the scope of automation, uh, and that's what's leading us from the kind of stage two gen AI into the stage three uh agentic AI, where you can have much more of an extensive dialogue to get to uh the bottom of a query and and hopefully resolve it all within the automated environment, but also the collecting of data for the human.
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So it that's really the the background at the moment.
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It's this uh transition, I suppose, from uh the augmenting into the the automating.
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Of course, why automation is important is that the human aspect to the contact centre is well over 90% of the cost.
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Sure.
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So you know Gartner, their stat is that I think the contact centre uh industry is worth$420 billion, which that's a fantastically big number.
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Uh obviously, not if you're Elon Musk, but for everyone else it's a big market.
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But then if we consider what's the the tech component of that market, it's a much smaller number.
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Uh and uh a stat I like from just a long time ago now, 2024 from Opus, uh, was that the tech component is only 2.4% of spend, 97.6% uh was in the the human component.
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But that by 2032, 58% of that human component would have been automated.
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So that I suppose increase in the in the total share that goes to to tech is great, obviously, if you're in in tech.
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And actually by last year, that uh 2.4% had become 4.6%.
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So we can see it's increasing.
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Uh and when I was at the NVIDIA GTC conference in San Jose back in March, uh Jensen Huang's keynote uh pretty much opened with the the customer uh service market, as he called it, uh will shortly be worth$35 billion a year, which is a significant uplift, around a quadrupling of the market size.
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So it's both uh a great opportunity, uh, but also a threat.
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If you're not keeping up, then that share of the uplift, which would be the the majority of the value, uh, would be taken by new entrants.
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So, of course, in CCAS uh we've got years now of understanding the business processes that we seek to automate.
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And of course, yeah, we we've been in this automation phase for for many years before AI came along.
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We like to look at someone like UK Power Networks, where we automate 94% of all of the inquiries completely.
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Um that's really pre-AI.
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So CCAS are good at doing this, uh, and you know, we're we're gonna be doing more and more of it.
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So that's really the the scene as we see it.
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Sure.
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And then within that context, you know, you've got obviously a lot of changes happening and consolidation as well.
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And you know, for for customers, it kind of might feel like moving platforms is this major effort that they're not quite sure how to tackle.
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So, you know, if an enterprise is is running on you know a legacy contact centre platform, um, it what is the the cost, as it were, for them to stay where they are?
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Yeah, I suppose it's like that old analogy of the frog in a slowly heating pan of water.
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Uh and I I've never known anyone actually test the theory.
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Does the frog boil or yeah, though supposedly if it it moves suddenly, it will jump out, otherwise it will slowly boil to death.
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So the the temperature in the pan is is getting uncomfortably warm now.
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Uh, and you know, people are worrying not just that they might not be keeping up, because obviously, let's remember, customer experience is the single biggest differentiator and source of competitive advantage for organizations.
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You've got this increasingly fickle consumer uh who will, yeah, we're told, often move off after years of brand loyalty, they'll be gone after one bad experience.
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So their expectations are set by the best consumer experience that they've ever come across.
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Uh so whoever you are, uh whatever type of organization, that's the consumer expectation that they're coming to the party with.
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At the same time, whilst uh perhaps most organizations have migrated their contact centers of the cloud, the big ones, uh large enterprises, governments, they're the ones who tend not to have made that migration.
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So actually, another Gartner stat is that 70% of contact center workers are working in a legacy on-premises environment today, uh, which might surprise many.
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So that's actually the work environment of the majority of people who work in these contact centers.
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So clearly that's because there are a lot of processes that would need to be changed if you are to migrate.
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So I think you've got a lot of people who are afraid of making that leap.
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In the early days of cloud, it was quite easy to say, well, uh, this cloud isn't safe.
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It's the internet.
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Uh, I can't move my data there, it's sensitive, we've got regulatory concerns, there's safety to worry about.
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Uh, and you could get away with that as an IT manager for for some years.
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But uh cloud has long been enterprise grade now.
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So I think those arguments are have gone away.
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Uh, but you know, let's face it, you've got some complex migrations, and we we do a lot of those at Content Guru.
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So there was a big one we did last year, and uh it was a large national service, uh critical infrastructure, et cetera.
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Um, and it was also the amalgamation of eight organizations into one.
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So uh that that some MA, as it were, had taken place over some years, but you know, we needed to consolidate all that infrastructure.
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And we needed to do a big data migration and data cleanse to a new customer data platform all at once.
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So that's that's a typical scenario for a large organization with embedded legacy infrastructure.
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Uh, but they want to not just offer a good service, they want to attract and retain the best people to deliver that service.
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Uh and yeah, they want to be working in a modern environment too.
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Yeah.
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So there are many, many good reasons to be doing it.
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Not least because when the CEO says, where's your your AI then?
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Uh, if you're not already modernized and in the cloud and you've got this omni-data and omni-channel environment already in place, you're simply not going to be in a position to deliver this promised land of AI, the the C level.
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And actually, beyond them, the board are demanding that you deliver and all the efficiency gains that they're wanting to see.
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Uh never mind replacing the people.
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Um how about just making them, say, one-third more efficient in an already heavily optimized work environment?
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And a lot of the time that's what our customers are asking for.
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We're saying, look, we've got increasing demand.
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Uh, we don't want to just uh people our way out of it.
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Uh we need to be more efficient and effective.
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And we want to bring together the silos.
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So it's we're not just talking about voice calls, of course.
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Many people think omni-channel's a done deal, but yeah, the majority of large organizations are still only multi-channel.
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So things like the social, the email, uh, will be and the chat will be happening on different platforms.
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So you've got different experiences going on.
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You're not amalgamating that data effectively.
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Uh, and yeah, so these are all challenges that the the the the the people who want these things to take place uh are uh having to consider.
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Yeah, exactly.
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And you mentioned that that pressure um, you know, to to be seen to be doing something with AI, um, but also, you know, in the context of the current Care Shakeup, you know, what does that mean for organizations that want to adopt a genetic AI?
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Yes, well, agentic, I suppose, uh learning the lessons of generative.
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So uh many people plowed into generative with great gusto.
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Some went too early.
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We all remember Klarna uh from 23, I think it was, where they said, right, we're gonna get rid of everybody, uh, we're doing this deal with OpenAI, and it's all gonna be agentic.
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And then you know, hurriedly they're having to hire everyone back because you know the customers didn't like it, it didn't work properly.
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So some have gone too soon uh in the agentic, uh in the regenerative, rather.
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Uh so IBM uh put out a stat that only 25% of Gen AI projects had generated ROI.
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Uh and actually that that goes with a lot of experiences that that we've seen around the industry.
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MIT put out an even more pessimistic uh note back in uh August of 2025 that 95% of Gen AI projects were failing because they weren't delivering ROI.
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So, in terms of a genetic, you've got to establish what is it we're actually trying to achieve here?
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What are the objectives?
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So, you know, a lot of the time people in the previous round of AI just plowed on because you know we've been told to do AI.
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Now it's a more thoughtful approach.
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So what are we actually trying to achieve here?
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Uh and also baselining the existing service so that the ROI as a delta between the baseline and the new way of doing things can be demonstrated.
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One of our customers is a city council, for example, and we did our AI uh generative demonstration.
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I loved it, it was great.
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Um we talked about where to introduce it, and initially they said we'll do it in this new service, uh, which is waste food waste collection.
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Uh and whilst that was great, because it was a new service, we argued that it wouldn't be possible to definitively prove that the AI way was better than doing it any other way.
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So in the end we applied it to the switchboard because that was well baselined.
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So we knew how many calls, how long, where they went, cost per call, cost per route, and so on.
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So when you then apply the regenerative version, and a lot of it is then contained uh and resolved, yeah, it's it's very straightforward to make that business case.
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Sure.
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And um, you know, when buyers are looking at all kind of all the options laid before them, you know, there's a lot of competing claims from vendors, you know, it can be like a complex process to choose a replacement platform.
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So, you know, when they begin this evaluation process, what would you suggest would be kind of the non-negotiable things they need to consider?
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I would look at the vendor's experience, I think, first.
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Uh so everyone can do a demo, uh, and it's not that difficult to put the the customer's website in as the source of information, and it looks like a great, it could pretty much do everything out of the box.
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The reality is is a lot more complex than that.
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So I would be looking at do does this vendor really understand what it means to operate the business processes that I'm seeking to automate, uh, or is it we've just come to it as a kind of idea and we're doing some prompt engineering.
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So experience, uh security, data sovereignty, that's a big factor now.
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People want to know where is my data and my customers' data being processed, uh by whom, what kind of uh jurisdiction uh is it subject to?
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Could it be seized and taken overseas uh according to some primary legislation affecting the vendor?
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So these are items to consider.
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Um also understanding uh the processes that you're looking to replace.
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So people always underestimate the the cost of how they do it today.
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And then, of course, you can't have AI without good data.
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So I always talk of the the cycle of data discovery, validation, and deployment.
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So they need to look at the automation in the frame of data first.
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Is my data in a state uh to do this agentic automation?
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Um you might well need a customer data platform in place to orchestrate your many systems of record.
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I think the days where everyone said, well, we're gonna get a CRM and everything is gonna be on the CRM, it's just not realistic now.
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Uh most organizations have multiple core systems of record, often multiple CRMs.
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So if you gather and orchestrate that data within a customer data platform, that is the environment where your agentic AI will succeed and get its information and deposit its information.
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And then the existing systems of record that your workers in your many different departments use day to day, those will be automatically and securely updated in the background.
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So look beyond the demo, really.
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Had they done this sort of thing before in our sector, what's their record of complex migrations?
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Because you don't want to be taking reckless experimental risks with your customers.
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Because as I just explained, we're a fickle bunch nowadays.
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Yeah, exactly.
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And you touched on orchestration, um, but particularly you know, moving into a gentic and having multiple AI agents, you know, doing multiple things, sometimes overlapping, working together.
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So, how does AI orchestration factor into a migration decision?
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Yeah, it's a bit like data orchestration.
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So whilst there's no single CRM to rule the world, uh similarly uh in terms of AI, different AI vendors with LLMs, small language models and things are continually leapfrogging one another, pulling ahead.
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It's a very fast-moving space with new entrants coming along at regular intervals.
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So therefore, I think the the job of your provider of the communication side of things is to overlay all of the uh leading model makers so that you've got access to the best models, the most appropriate models, and also the horizon scanning is taking place for you.
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Uh and yeah, we often find with our customers that we're replacing models, we're replacing engines in the background the whole time as the new uh and better products come along.
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So don't nail your colours to one mast because it may be today's leader, but it probably won't be tomorrow's leader.
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That's what I would advise there.
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Yeah, absolutely.
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Um so you know, we've covered a lot of ground here, but if you could leave enterprise buyers with one practical piece of advice, you know, as they navigate this period of change in the CCAS market, what would it be?
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I think it would be think you know widely about what it is you want to achieve.
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So it's a C-level decision, really.
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Often you'll find the requirements are being set too low down in the organization.
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The ambitions aren't there.
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They're just wanting to replace an existing process and modernize it a little bit.
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Think big.
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So think of the objectives you're looking to achieve.
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Think of baselining your existing services uh and understanding them properly.
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Um and just don't be swayed by a single flashy demo.
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Uh think through do these people understand uh my business processes, my sector?
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Do I have experience?
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Do I have the security accreditations that I'll be looking for?
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Um and then you know, proceed with caution and excitement at the same time.
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Yeah, absolutely.
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I think that that's a great place to leave it for our viewers to think about.
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So thank you, Martin, for sharing your insights and you know, helping us to understand what this market transition means.
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Absolute pleasure.
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And thanks to everyone for watching.
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Um, if you'd like to learn more about how organizations can approach CCAS modernization and AR adoption, visit contentguru.com.
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And for more videos, interviews, and news articles, head on over to cxtoday.com.
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And also you can find us on LinkedIn.
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So thanks for watching, and we'll see you next time.