1. UBUSO “The Face of Eskom” A Case Study on Eskom’s Customer Relationship Management Solution By: Hugh McGibbon (Divisional Customer Service Manager) Kevin von Berg (Senior Consultant (Customer Service)) (Presenter) Distribution Division, Eskom Holdings Ltd 18 May 2005

2. Topics Background The aim of CRM (in a regulated Utility with a Captive market) Selection of an appropriate CRM solution for a utility company Essential foundations as a base for a CRM solution Implementation project - lessons learned Improvement in performance Benefits tracking Future vision

3. Over 3,7M Customers Eskom’s Customer Service environment VIRTUAL FRONT OFFICE Contact Centre Campaign Mgt Outbound Telephone, SMS Service Agents Contact Centre Campaign Mgt Outbound Telephone, SMS Service Agents 7 x Contact Centre Front Office Inbound Telephone, SMS, Email, Fax, Mail Service Agents 7 x Contact Centre Front Office Inbound Telephone, SMS, Email, Fax, Mail Service Agents EAT Face to face, Telephone, Email, Fax, Mail Service Agents EAT Face to face, Telephone, Email, Fax, Mail Service Agents 99x Walk in Centres Inbound Face to Face Service Agents 99x Walk in Centres Inbound Face to Face Service Agents Service Reps Inbound Face to Face Service Reps Inbound Face to Face Service Reps Customer Execs Inbound Face to Face Customer Execs Inbound Face to Face Customer Execs Self Service Inbound IVR, CSOnLine Automated Self Service Inbound IVR, CSOnLine Automated VIRTUAL CC VIRTUAL BACK OFFICE Hundreds of locations Risk Management Back Office Handling of routed Work Items CRM Workflow Admin / Processing / Service Resolution Risk Management Back Office Handling of routed Work Items CRM Workflow Admin / Processing / Service Resolution Contact Centre Back Office Handling of routed Work Items CRM Workflow Admin / Processing Contact Centre Back Office Handling of routed Work Items CRM Workflow Admin / Processing CS Area Back Office Handling of routed Work Items CRM Workflow Admin / Processing CS Area Back Office Handling of routed Work Items CRM Workflow Admin / Processing Workflow Management / System Admin 3 x Account Operations Back Office Handling of routed Work Items CRM Workflow Admin / Processing / Service Resolution 3 x Account Operations Back Office Handling of routed Work Items CRM Workflow Admin / Processing / Service Resolution Wires Business 4 million Customer Contacts a year (270000 per month), 7 languages, 24x365 Internal Workflow 65% Electricity Supply Problems 20% Accounts, Payments & Meters 5% Applications 5% Credit Management Internal Workflow 65% Electricity Supply Problems 20% Accounts, Payments & Meters 5% Applications 5% Credit Management

4. The aim of CRM in Eskom To Reduce Cost through efficiency, while improving Customer Service Electricity Supply Problems Accounts, Payments & Meters Applications Credit Management Electricity Supply Problems Accounts, Payments & Meters Applications Credit Management Aim is 75% First Contact Resolution (Immediate resolution) Aim is 75% First Contact Resolution (Immediate resolution) Aim is 95% One Contact Resolution (Only 1 inbound contact from the customer) Aim is 95% One Contact Resolution (Only 1 inbound contact from the customer) CASE MANAGEMENT (Tracking, & Escalation (if necessary)) Multiple outbound contacts (as required) Inbound customer contact (Service Request) EXCEPTIONS (Overdue or repeat customer contact) Escalated to Customer Accountable AND Task Accountable people) Resolved (with Escalation) (Aim is Zero never resolved) Resolved (with Escalation) (Aim is Zero never resolved) CASE MANAGEMENT (Case closed immediately)

5. Pure Framework Solution (as opposed to a Package or Hybrid Solution) to match Eskom’s processes exactly to fit in with our CIS Billing package Flexibility REDs Scalable Able to integrate with all billing and engineering systems All major electronic interfaces (telephone, e-mail, SMS and the Internet) Speed of Implementation Maximise Existing Investments Existing Value Chains and business processes Compatibility with existing IT investments Low Business Impact Training No disruption on switch over Easy to use Selection of a CRM solution

6. Essential foundations to implement CRM Achieving a Win-Win balance between Customer Expectations & Cost STEP 1 - VISION (1995) Geographic accountability to a person All interactions possible electronically Move to remote contact Single virtual Contact Centre Full contact history No cash handled by Eskom Process focus Customer choice of channels / media STEP 2 – PROCESSES DEFINED (2000) Value Chains (Manage Revenue Cycle, Optimise Customer Interaction, Acquire Customer, Manage availability of supply, Network Asset creation) Bench marking / World Practices Process ReEngineering ARIS modelling STEP 3 – CORE SYSTEMS Virtual Contact Centre Infrastructure / Multimedia (2002) CIS (2003) Field Service Management –Work Management / Scheduling / Despatch (2000) –Mobile Data Terminals (2001) –Cellphone / PDA (2004) STEP 4 – CRM FRAMEWORK SOLUTION Ubuso Project – The Face of Eskom using Framework CRM solution

7. Overall picture 3,7M customers 7 Contact Centres 99 WICs 3 Acc Ops CSDCCSDC Accountability 1 Virtual Workforce 7 languages 4 services CRM PROCESS MANAGEMENT CISFIELD MANAGEMENTCASE HISTORY MDT Disconnect Cell/PDA’s

8. How CRM fits in: Business System Architecture CRM Solution: Agent desktop Scripting Knowledge Mgt Multimedia Queue (Fax, Email, SMS) Case Management Workflow CIS / Billing: Billing Credit Management Payments Field Work Management: Wires business Work scheduling Enterprise Workflow Document Management eMail & SMS: In & outbound Contact Centre Telephony: Call Routing Voice Mail Voice Logging IVR Outbound Dialling CS OnLine: Web Self Help IVR: Self Help services Account Balance Fault info CTI: Computer-Telephony Integration Call control from Agent Desktop Calling Line ID Dialler: Call campaigns

9. Technology Architecture – Integration bus Wires DB CRM DB iBus CRM Project Mgt CIS GIS CIS DB SMSEmailFax Data Mining (Reports) XAI I V RDialler Fault Mgt Work Mgt Legend: iBus adapter CRM Service Object Point-to-point interface CTI PSTN Switch CTI PSTN Switch CTI PSTN Switch CTI PSTN Switch CTI PSTN Switch CTI PSTN Switch CTI PSTN Switch Regional

10. Case Management: Workflow Customer has request Additional work required on case Case Closed Case History CRM Workflow GTX Inbound Inbound agent opens a customer case CRM Workflow Configuration KPI configuration Routing configuration Workflow Rejections Escalations EAT Work items External System Rejections (Maximo) External System Rejections (Maximo) External System Rejections (Maximo) Workflow Management Route to Department Location and Position Workflow History Responsible position in department Resolve Accountable position in department Monitor User rejects work assigned to them. Work is routed to the CCDC who either does a follow up or re-allocates the work. When EAT Work Item are sent, the Regional CS Manager, Area Manager and Task Accountable Manager of the applicable region are notified. Engineering Work Item is rejected. Follow-up done by person who views Maximo rejections. Work item is followed- up or re-logged. If KPI is exceeded, the work item becomes overdue and the person’s manager is notified.

11. Proactive Service: Campaign Management Campaign built by an administrator CRM Campaign Management Received campaign from external system Extract E-Mail Create and send e-mails on the execution date Dialler Calls sent to Agent via Dialler Phone Calls assigned to back office Agent to complete Create and send SMS message to customer on the execution date Campaign Execution CRM Campaign Management

12. Task Accountable and Customer Accountable Escalation Front Office “Contact Logger” And “Case Opener” Back Office “Workflow Recipient” And “Work Doer” CRM Work Flow Manager / Supervisor (Accountable for Task) Area DC / Customer Exec (Accountable for Customer) Escalation when task overdue 1=“Task” escalation to the Doer’s boss to chase the work 2=“Customer” escalation to the person accountable for the customer to advise him in case proactive intervention / customer feedback is necessary Notes: Could be the same person eg an Area DC is accountable for the customer AND is accountable for his service agent doing the work - in this case the person will get both views. Could be to 2 different people – eg the Billing Mgr gets the task escalation and the Area DC gets the Customer escalation when the Billing clerk fails to deliver the work on time. The customer accountable person is the NAMED person accountable for that specific customer. 1 2 “VIP / Sensitive” customers Principles: a)Workflow is identical as for non- vip / sensitive customers b)The only addition is notification to the customer accountable person that a case has started Notification of new case opened

13. Fit to generic CRM Functions 1) MARKETING – Campaign Management for : Service Availability (Planned / Unplanned) Credit Management New Service Activation audit checks Ad hoc Sales campaigns 2) SALES – No focus (future) 3) SERVICE: Multichannel (Web / Contact Centre / SMS) Resource Planning & Optimisation (Work Force Management across 7 CC’s) Case Management (Logging / Workflow / Escalation / Monitoring up to Regional Manager level / Segment differentiation (VIP flow)) 4) ANALYTICS (Reporting): Service Levels / Overdue Interaction Types trends Costs Channel trends

14. Fit to generic CRM Functions 5) AGENT DESKTOP: >Case Logging>Scripting >Fault Analysis>Electronic Contracting >Case History>Dashboard >Case Based reasoning>Knowledge Management Toolbox 6) SELF SERVICE: Account Balance (IVR) / Web site / Fax & Email 7) FIELD SERVICE MANAGEMENT: Mobile Data Terminal – Mile 1,2A, 2B, 3 Cell / PDA – Disconnect / Reconnect Work Orders 8) DATA MANAGEMENT: Customer Details Customer / Network Link / GPS Sales Info - Follow up on No Sales for theft

15. Learning Points - Process Aggressive timeline of a year worked well (trimmed scope to fit) Phased implementation with a core at each site and overlap with old system worked well Extensive user involvement in design and testing proved valuable (workshops, SMEs, Testing, secondments) Framework solution easy to fine tune & change processes Workflow structuring is excellent down to Person level and easy to maintain Workflow co-ordination / administration roles required Dashboard Reporting is good - Generating analytical reports requires a good report writer tool

16. Learning Points - Technology Pilot use of iBus technology, lack of skills and experience. Multiple major initiatives in the business (726, CDX upgrade, etc) Too many External Dependencies –13 different teams involved Integration effort took much longer than estimated Training database performance not good (hardware capacity) Full infrastructure requirements (Dev/QA/Training) unknown upfront Multiple sessions open impacts licence usage Client and workflow kernel crashes Not enough upfront DR planning

17. Learning Points – Change Management Training on Framework System with familiar processes was easy Extensive line involvement during development and testing created strong ownership and knowledge/experience Implementation structure with team members deployed to support regions was very successful – Change Management Missionaries Extensive project communication involving many channels and addressing all levels of stakeholders created a “pull” from the business. Strong business involvement and ownership of Change Stream Strong sponsor involvement and direction across all streams Dual system usage had both positive and negative effects.

18. Benefits description Service / Process Efficiency: Efficiency resulting from reduction of average handling time, by presenting all relevant information in a timely manner Efficiency from first contact resolution (reduction in despatched items) Efficiency from self service channels Efficiency from improved Case Management Efficiency from one contact resolution (reduction of repeat calls) Increase in service levels by being able to handle more requests in shorter timescales and reduced number of repeat calls Reduced growth in manpower due to efficiencies in all areas (e.g. reduced call volumes, better case management, efficiency from self- service channels, reduced AHT, etc.) Secondary Benefits: Reduction in training costs (reduction in agent training time due to the intuitive nature of the CRM System Solution) Efficiency from flexibility for process changes Ongoing benefits in terms of process improvement to continually increase efficiency and customer service.

19. Benefits Tracking Reduced cost of service by 25% (cost per customer) since 1995 Improved Customer Service New indicators: –One Contact Resolution –First Contact Resolution –Average Handling times –Manpower costs / count –Training costs / days

20. 6 Months after Go Live Contact Centre Staff say it is a huge improvement Account Ops Staff love it and use it actively Wires Works Management Centre say it is an improvement Area staff are extremely enthusiastic and say it has reduced their work load CS Deliver Controller says: “It is fantastic. I can sit at my desk and see the status of all customer issues my remotely located service agents are handling.” Service Agent at remote locations love it. Such a positive reaction to a new major system is unique in Eskom, especially after only 6 months during which time performance was interrupted at times

21. Future Vision Flexibility of Framework Solution –To integrate many legacy systems from Municipalities and Eskom into Regional Electricity Distributors (REDs) –To provide economy of scale across 6 independent REDs –Variations and phased versions of the above Interaction Automation Personalisation Relationship Management via People Interface Expansion into Sales & Marketing Enquiries: kevin.vonberg@eskom.co.za Making Eskom “Easy to do business with”