Günter Dahm | Director Telco Solutions | Microsoft EMEA Munich, Germany January 2006 Josmar Tuszik | Solution Sales Specialist | Microsoft Deutschland GmbH
Jan 13, 2016
Günter Dahm | Director Telco Solutions | Microsoft EMEA
Munich, GermanyJanuary 2006
Josmar Tuszik | Solution Sales Specialist | Microsoft Deutschland GmbH
Telco Business TrendsTelco Business TrendsTelco Business TrendsTelco 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 ReductionIt‘s about managing increasing complexity and adapting to change!
The Complex Challenge for Customer CareThe 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)
O2 Surf@Home – fixed/mobile substitutionO2 Surf@Home – fixed/mobile substitution
Avoid White Elephants!Avoid White Elephants!Avoid White Elephants!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?
Lessons from retailing: Lessons from retailing: What consumers expect?What consumers expect?Lessons from retailing: Lessons from retailing: What consumers expect?What consumers expect?
1. Convenience
2. To be treated as individuals
(4. Sometimes an affordable luxury)
3. Reasonable prices & good quality
Retailing example: New MVNOs with Retailing example: New MVNOs with strong brand and customer loyaltystrong brand and customer loyalty
In „high-speed“ competitive environments In „high-speed“ competitive environments you better start moving fast!you better start moving fast!In „high-speed“ competitive environments In „high-speed“ competitive environments you better start moving fast!you better start moving fast!
How to become a category killer How to become a category killer in Customer Carein Customer CareHow to become a category killer How to become a category killer in Customer Carein Customer Care
?
Part II: What is that mysterious Part II: What is that mysterious enabling technology?enabling technology?Part II: What is that mysterious Part II: What is that mysterious enabling technology?enabling technology?
CCF is about competitive advantage by providing a cool and consistent customer experience for all customer touch points.
CCF opportunities for competitive advantageCCF 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.
CCF cost reduction and CCF cost reduction and new revenue generationnew revenue generation
IT OPEX & CAPEX reduction
Reduced training costs
Target Revenue
Additional new contacts
Current revenue
Current costs
Product bundling& Cross -Selling
Churn rateHigher ratio of
successfully closedcontacts
Decreased call handling
costs
Reduction in input errors
Target Costs
+ EUR x
+ EUR x
+ EUR x+ EUR x
- EUR x
- EUR x- EUR x
- EUR x
- EUR x
+ EUR x
Revenue Costs
3-step approach to proof3-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
The impact of CCF on KPIsThe impact of CCF on KPIsThe impact of CCF on KPIsThe impact of CCF on KPIs
ExamplesExamples
Best channel utilization with regards to churn risks
Customer intimacy (360° view)
Target zonesTarget 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 ImpactFinancial 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
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Low Impact High Impact
Deliver strong additional cash flows due to an Deliver strong additional cash flows due to an increase in productivity and upselling potential (exincrease in productivity and upselling potential (ex..))
Cum NPV EUR Mio:
Payback (months):
IRR (%):
ROI (%):
6.8
8
231
151
Key financial indicators
0.5 1.0 1.5 2.0 2.5Years
2
6
8
4
0
Cumulative NPV for a medium-sized mobile operator
-2
Mio Euros
Example Range*
*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
17 Microsoft Confidential
Solution OverviewSolution 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 ofcustomer information (360°)
– User-friendly and customizable interface
CCF seamlessly integrates withunderlying 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 portalframework
– 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.
18 Microsoft Confidential
Solution ReviewCCS Solution OverviewSolution ReviewCCS 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
1919
Solution GoalsSolution 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
20 Microsoft Confidential
Architecture OverviewArchitecture 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
2121
CCF Self-service Portal FrameworkCCF 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
2222
Web Services &Offline/Online
support
DeviceAdaptability
Tough toDeploy
HeavyFootprint
DLL Hell
NetworkDependency
Poor UserExperience
ComplexTo Develop
Rich UserExperience
DeveloperProductivity
Responsive
BroadReach
Easy ChangeManagement
Ease ofDeployment
Smart Client TechnologieSmart Client Technologie
2323
Component Overview CCF Agent DesktopComponent Overview CCF Agent Desktop
ContextManagement
Workflow
Call Management(CTI integration)
Existing ApplicationsIntegration
Active customer sessions with
navigation tracking
Microsoft Confidential
RTCIntegration
RTCIntegration
2424
Component Overview CCF Middle-Tier ComponentsComponent 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
ConfigurationService
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
2525
Features and Benefits (1 of 2)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
2626
Features and Benefits (2 of 2)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
2727
Proof Points and EvidenceProof 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
Return On IT InfrastructureReturn On IT Infrastructure
Flexible interoperability Lower total cost of
ownership
Support heterogeneous environment
Market leading manageability, performance, integrity
Client Services ServerClient Services Server
Business Value of CCFBusiness Value of CCF
Satisfied Customers willreduce Churn
Respond quickly and well First Call Resolution
Consistent customer treatment across all channels
Return OnReturn OnRelationships Relationships
Return OnReturn OnRelationships Relationships
Unlock data for better support and resolution
Drive productivity Enable and
empower Build on existing
skills, familiarity
Return OnReturn OnPeople People
Return OnReturn OnPeople People
Intrinsic integration,
open standards Faster time and
lower cost to benefit Brokered .NET
services Reinvigorate
existing systems, processes
Return OnReturn OnProcess Process
Return OnReturn OnProcess Process
CCF CustomersCCF CustomersCCF CustomersCCF Customers
CCF representative resultsCCF 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”
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 DesktopDell: Integrated Dell DesktopDell: Integrated Dell DesktopDell: Integrated Dell Desktop
Dell: Integrated Dell DesktopDell: Integrated Dell Desktop
Integrated Customer DesktopIntegrated Customer Desktop
Integrated Dell DesktopIntegrated Dell Desktop
CSR DashboardCSR Dashboard
Real-Time Operational Real-Time Operational
DataData
Mood Chocies Mood Chocies
Unread MessagesUnread Messages
Team LogoTeam LogoDashboard Tabs Dashboard Tabs
(Dailyperformance,Qua(Dailyperformance,Quality,etc...)lity,etc...)
Dashboard Messenger Dashboard Messenger (Displays operational (Displays operational messages and notes)messages and notes)
Team Leader DashboardTeam Leader Dashboard
Team Mood and Team Mood and Dashboard Usage Dashboard Usage
StatisticsStatistics
Team Leader Team Leader Dashboard TabsDashboard Tabs
Real-Time Operational Real-Time Operational data by service or data by service or
segmentsegment
Team member details, Team member details, statistic,moods and Dashboard statistic,moods and Dashboard
connection statusconnection status
Customer Care Framework
• www.microsoft.com/ccf• www.microsoft.com/germany/telmed
Josmar Tuszik | [email protected] |+49 2131 708 221
© 2006 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.