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Günter Dahm | Director Telco Solutions | Microsoft EMEA Munich, GermanyJanuary 2006 Josmar Tuszik | Solution Sales Specialist | Microsoft Deutschland GmbH
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Telco Business Trends Cost Reduction Price Erosion Wireline Churn Mobile Saturation fixed-Mobile Substitution Fixed-Mobile Convergence – Hybrid Offerings VoIP Offerings – New Service Providers Complete Replacement of Circuit Switched Networks by IP till 2015 Highly Competitive / Low Margin Markets: The Critical Essentials here are: –Time2Market –Sales Execution / Winning Customers –Service &Brand Differentiation –Customer Experience & Customer Care –Customer Retention & Churn Reduction It‘s about managing increasing complexity and adapting to change!
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The Complex Challenge for Customer Care hybrid convergence services and „pick&pack“ offerings increase the complex challenge of customer care –T-Mobile Web&Walk –BT Fusion (convergence handy: wireline @ home, Vodafone, WLAN, Bluetooth ==> automatic search for best & cheapest connection) –Freenet ip1 (VoIP phone @ home and mobile phone) –Sipgate F1000 (mobile internet phone on WLAN) –Skype RTX (mobile VoIP home phone)
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O2 Surf@Home – fixed/mobile substitution
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Avoid White Elephants! The logical answer sounds like massive investments into further complexity –New/additional billing systems/capabilities –Re-vamping of CRM systems –EAI –Multi-Channel Contact Centers –Portals (internal/external), Content Management –Business Process Management / Workflow Management –Customer Knowledge Management Systems –Implement a backend SOA –… –But does that really help me to manage the increasing complexity and adapting to continuous change? –What is really the impact of these investments to my business? –Does that really make a difference? –What is the risk to get it up & running?
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Lessons from retailing: What consumers expect? 1. Convenience 2. To be treated as individuals (4. Sometimes an affordable luxury) 3. Reasonable prices & good quality
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Retailing example: New MVNOs with strong brand and customer loyalty
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In „high-speed“ competitive environments you better start moving fast!
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How to become a category killer in Customer Care ?
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Part II: What is that mysterious enabling technology? CCF is about competitive advantage by providing a cool and consistent customer experience for all customer touch points.
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CCF opportunities for competitive advantage CCF A new integration approach for managing the complextiy of customer care backend and multi-channel information integration. The only technology that combines all existing integration approaches using „Smart Client“ technology being designed for adapting to continuous change. CCF Automates the delivery of customer information across multi- channel environments, resulting in a vastly improved overall customer service experience.
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CCF cost reduction and new revenue generation IT OPEX & CAPEX reduction Reduced training costs Target Revenue Additional new contacts Current revenue Current costs Product bundling & Cross -Selling Churn rate Higher ratio of successfully closed contacts Decreased call handling costs Reduction in input errors Target Costs + EUR x - EUR x + EUR x RevenueCosts
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3-step approach to proof 1.Vision Scope Workshop (5 days) –Status Quo roles in the call center / customer care –Status Quo use cases for the roles –Get the customer to define the vision for their customer care operations and write it down –Future use cases –Target architecture –Risk matrix 2.CFO approach (5-10 days) –Interviews –Data collection –Assumptions and data validation –NPV calculation 3.PoV / PoI (Proof of Value / Proof of Impact) –Incl PoC
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The impact of CCF on KPIs Examples Best channel utilization with regards to churn risks Customer intimacy (360° view) Target zones Churn reduction Cost reduction per customer R&D cost reductions Pricing improvement New customer acquisitions Using the best channels for customer interactions Removing redundant tasks Leveraging customers’ portfolio for each incoming channel Enhancing customer satisfaction Leveraging best channels for marketing campaigns Bringing customer knowledge and campaigns to any available channels Customer care cost reduction Revenue increase per customer Financial Impact Developing new products through better customer knowledge Launching new products with low IT investments Tracking customer purchase lifecycle through multi-channel coordination Leveraging incoming channels to roll-out new sales campaigns 12345 12345 12345 12345 12345 12345 12345 12345 12345 12345 12345 12345 Low ImpactHigh Impact
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Deliver strong additional cash flows due to an increase in productivity and upselling potential (ex.) Cum NPV EUR Mio: Payback (months): IRR (%): ROI (%): 6.8 8 231 151 Key financial indicators 0.51.01.52.02.5 Years 2 6 8 4 0 Cumulative NPV for a medium-sized mobile operator -2 Mio Euros ExampleRange* *for successful projects, otherwise negative values are possible too Break-even End of business case period Peak funding N/A 6-12 0-500 16-1.000
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17 Microsoft Confidential Solution Overview CCF is a flexible and modular solution framework to accelerate the development, integration, and roll-out of customer care CCF displays a unified view of customer information (360°) –User-friendly and customizable interface CCF seamlessly integrates with underlying business applications –No changes to existing systems –Web services-based service-oriented architecture (SOA) CCF solutions are very competitive on price –Windows – total cost of ownership (TCO) –.NET – speed to market –Extensible Markup Language (XML) Web services CCF provides self-service portal framework –Gives the customer options for obtaining service using mechanisms such as e-mail or smart devices CCF provides real-time synchronization between self-service solutions (portals, speech/interactive voice response [IVR]) and contact centers by providing a complete vision and unified architecture for all customer care channels.
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18 Microsoft Confidential Solution Review CCS Solution Overview What is Microsoft Customer Care Framework? –Client and server framework software –Documentation and white papers Architectural white paper Design details Developer guide Pilot deployment guide –Services experiences
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19 Solution Goals Dynamically share customer information among multiple LOB applications –Provide a single user interface –Reduce training costs –Reduce customer wait times –Reduce requirements to transfer calls –Expand customer care options “One-touch” installation and transparent updates from a server –Reduce support cost for updating agent applications
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20 Microsoft Confidential Architecture Overview Client Components –Agent desktop module –CTI module –RTC module –AIF module Middle-Tier Components –Microsoft Windows Server™ 2003 –SQL Server –Active Directory® directory services –BizTalk Server –Microsoft Host Integration Server –Microsoft Content Management Server –Microsoft Speech Server –Microsoft Office
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21 CCF Self-service Portal Framework Maintaining user account registration, authentication, and authorization Presenting user account and service profile information Generating targeted alerts and promotional information based on profile Providing access to billing information Offering service order, trouble-ticket generation, and status checking
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22 Web Services & Offline/Online support Device Adaptability Tough to Deploy Heavy Footprint DLL Hell Network Dependency Poor User Experience Complex To Develop Rich User Experience Developer Productivity Responsive Broad Reach Easy Change Management Ease of Deployment Smart Client Technologie
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23 Component Overview CCF Agent Desktop Context Management Workflow Call Management (CTI integration) Existing Applications Integration Active customer sessions with navigation tracking Microsoft Confidential RTC Integration RTC Integration
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24 Component Overview CCF Middle-Tier Components CCF Core Component or Reference Implementation Provided CCF Custom Component External Component Web Services Data Abstraction and Caching Layer SOA-Based CCF Middle-Tier Real Time Communication (RTC) and Skills- Based Routing for RTC Active Directory and User Profile Configuration Service Context and Application Integration Services CTI Abstraction Layer Application Integration Framework (AIF) Hosted Application 1 Hosted Application 2 Application Host Third-Party Telephony API (TAPI) Implementation Third-Party Telephony Service API (TSAPI) Implementation Third-Party Telephony Implementation TAPI TSAPI Other LOB Application 1 LOB Application 2 LOB Application 3 LOB Application 4 Microsoft Confidential Web-based TN 3270 X.11 / motif ActiveX and legacy Windows Applications.NET Framework (WinForm) Applications Citrix Applications Others
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25 Features and Benefits (1 of 2) Comprehensive story building on desktop, server, and tools –Leadership in XML Web services –Acceptance of Microsoft desktop and UI leadership –Integrated innovation Competitive pricing (Windows TCO) and speed to market (.NET) –Microsoft platform and XML Web services result in faster time to market and less expensive customer solutions Complete vision and unified architecture for all customer care channels –Agents, portals, integration capability, and so on Lower risk for customers –No “rip and replace” reliance on Microsoft
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26 Features and Benefits (2 of 2) Microsoft Active Directory directory service –Integrated security — no need for separate logon –Hosted applications assigned to Active Directory groups –Integrated security to Web services tier Windows XP shell –Optional replacement of Microsoft Internet Explorer.NET Framework –Easier to deploy and maintain –.NET zero/transparent deployment –Configuration information accessed through Web services –Hosted application components and scripts centrally stored Collaboration –Instant messaging –Call control features and address book –Access to external applications
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27 Proof Points and Evidence Increased Efficiency = Decrease Costs Customers prefer choice of channel By offering multiple channels beyond in-person and telephone, companies can address customer needs less expensively Cost of customer channels/ per customer: –In-person= $ 100 –Phone= $ 50 –Email= $ 5 –Chat= $.50 –Web self-service= $.05 Enhanced Revenues (Profits) The time savings on a call can be used to create a targeted sales opportunity –A 10 percent increase in up-sells for a 500 agent center = a 20 percent increase in profits –When customers call with questions, they are an easy target for sales Lower Costs If a contact center can reduce average call duration by even one second, that would create a savings –A contact center with 35,000 agents reducing the average call duration by one second, would create a savings equivalent to $1 million annually –One second = $1 million Speed to Market Sample project to roll CCF out to 19 customer service centers Eight-week proof of concept Eight-week usability study Five-month implementation Three-month rollout
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Return On IT Infrastructure Flexible interoperability Lower total cost of ownership Support heterogeneous environment Market leading manageability, performance, integrity ClientServicesServer Business Value of CCF Satisfied Customers will reduce Churn Respond quickly and well First Call Resolution Consistent customer treatment across all channels Return On Relationships Unlock data for better support and resolution Drive productivity Enable and empower Build on existing skills, familiarity Return On People Intrinsic integration, open standards Faster time and lower cost to benefit Brokered.NET services Reinvigorate existing systems, processes Return On Process
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CCF Customers
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CCF representative results CCF customer quotes: “20% reduction on Average Call Handling times” “10% increase in upsell & crosssell opportunities” “10% cost per call reduction by steamlining order process” “Up to $10M/year reduction on hardware server costs (migration of 100 unix servers)” “45% decreased training costs for CSRs” “CSR retention improved from 60% to almost 100%” “20% faster delivery of customer facing functionality in client’s call center”
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Customer Background Decrease Costs – Improve call centre efficiency by driving down call time. Improve Customer Satisfaction – Provide reps with integrated customer data. 8,000 telephone sales agents Internal and remote call centers Each agent uses 17 disparate applications (out of 40) - Green Screen 3270 - Web Applications - Desktop Applications - Telephony Integration Components Results/Benefits Benefits. +40% margin, 16x expected ROI -10% call duration, -45% training. Integrated view of the customer through Sales, CRM, Tech Support Tools.. Streamline order process. Browser Migration to Windows Forms.NET Service Oriented Architecture Provides access to data and applications used to serve customers. Smart client Complements SOA to deliver new Integrated Dell Desktop sales tool. Solution Dell: Integrated Dell Desktop
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Integrated Customer Desktop
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Integrated Dell Desktop
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CSR Dashboard Real-Time Operational Data Mood Chocies Unread Messages Team Logo Dashboard Tabs (Dailyperformance,Qua lity,etc...) Dashboard Messenger (Displays operational messages and notes)
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Team Leader Dashboard Team Mood and Dashboard Usage Statistics Team Leader Dashboard Tabs Real-Time Operational data by service or segment Team member details, statistic,moods and Dashboard connection status
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Customer Care Framework www.microsoft.com/ccf www.microsoft.com/germany/telmed Josmar Tuszik | JoSmart@microsoft.com |+49 2131 708 221
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© 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.
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