Transcript Ovum Template

The Role of Customer Experience in
Telco Transformation
Clare McCarthy, Evan Kirchheimer
[email protected]; [email protected]
September 2012
1
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Agenda
2

Drivers for innovation and transformation

Telco investments to improve the customer experience

The telco as an enterprise, and as a service provider
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Market drivers: Enterprise telco revenues migrate to
professional and value add services
Change
management
Project
management
IP
expert
Intelligent
network
Hosting
Information
services
Professional
services
Data
management User portals
NPM tools
3
Basic
Port/ services
bandwidth
connectivity
IP telephony
Mobile remote access/CRM/
Equip sales (Cisco)
MPLS VPN
Conferencing
Applications centric networking
IP
services
Enterprise apps management
Fixed voice/GPRS/LAN VPN/
LAN IPT/LAN-based VPN
PSTN/SOS calls
Maintenance (Co-branded)/
Mobile/VoIP (vendor)
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Competition from telco peers: The shift to enterprise
ICT services has competitive implications
Snapshot from Ovum’s Telco-led ICT Services Deals Database
4
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Mapping SI competitive positioning
= successful execution
Service Line:
IBM
HP
= strategic importance
TSI
Fujitsu
CAP
CSC
Atos
Workplace
Remote Infrastructure
Management
Managed Data Center
Services
Managed Storage
Services
BC/DR
Managed Security
Managed Networking
Technical Support
Services
IaaS
5
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Pressure from the customer - CIOs
Source: Ovum survey, Business and investment trends for IT, June 2011. What are you business priorities for the next 12 months
6
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Pressure from the customer – consumerization drives
enterprise expectations
Consumer as
Connected
Customer
The consumer as a connected
participant in a process,
whose context & behaviour
can be influenced & derived by
a combination of location
intelligence, transactional
footprint, and network
of sensors.
7
Consumer
embedded in
business
process
The consumer as a smart,
connected customer of
personalized services,
social engagement and
dynamic context. The media
is the application, the CMO
is a data miner, and the
CIO acts as marketing technologist
Consumer as
Employee
The employee brings
consumer technology
into the workplace as a
preferred tool, opting
for enterprises with
BYOD policies, mobile apps
and data strategies – but
protected with effective
security & governance
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Commoditization of core services
8

Telcos cannot justify premium charges for core service. Consumer
and enterprise customer expect more features and value-add for the
same price regardless of the rise in cost to service

Our tracking of telcos contracts shows they are bundling more in to
the deals with their suppliers.

Telcos are turning to their suppliers for greater support.
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On the one hand - bundling
Fastweb has announced new business
offerings for SMEs. It has launched a
managed HD video service,
VideoPartecipa, in collaboration with
Cisco and a unified communication
service, ComunicaCon. It has also
announced a small business fixed
telephony and internet service, which
includes hosting, two voice lines, all
fixed-line national calls, unlimited
internet and up to 100 MB of web space
at no extra cost. In a promotional offer,
Fastweb is offering this at a starting
price of €50 per month with an additional
voice line free indefinitely. Fastweb has
launched an initiative that provides a
bonus of up to €3,000 for companies that
decide to replace their old PBX with IPbased technology.
Telefonica's VoIP service provider,
Jajah, has announced plans to include
voice calling to Microsoft Lync Online, a
cloud-based next-generation
communications and collaboration
service. Telefonica will market the joint
Microsoft-Jajah service to its business
customers globally. The service will be
available later this year through
Microsoft and Telefonica sales networks.
Deutsche Telekom has launched
DeutschlandLAN, a service, based on
the Ericsson Business Communication
Suite and combining fixed and mobile
telephony, a 10Mbps SDSL connection,
VoIP, hosted PBX and a hosted
Exchange service, with support for up to
20 simultaneous calls and eight IP
addresses.
UPC has given more details of its service bundle aimed at
SMEs which integrates Internet telephony with Microsoft's
Office 365, giving customers access to online versions of
Exchange, SharePoint, Office Programs and Lync. The
option of access to Office 365 services will be added to
UPC's existing broadband and voice bundles and the
portfolio will also include managed voice services in the
form of a hosted PBX. The new service bundle will be
available first in five of the ten European countries where
UPC operates. The service is already available in Ireland,
Switzerland and Austria, and is expected to be made
available in Poland and the Netherlands by early 2012.
Telefonica's mobile arm Movistar has unveiled a series of offerings in unified communications specifically for SMEs.
Announced in a road show called "Entre Professionales", they include a one-number PBX extension service for mobile
phones called Puesto de Voz en Red Total (PVR Total), GPS tracking of company mobiles for organizations with field
forces or sales forces that need managing, a videoconferencing service called Spontania and Oonair, a mobile app that
turns a phone into a video camera to transmit moving images to a network (also called Oonair) where all the other users on
the network can see the footage.
O2 has launched a service called IP-Voice-Plus combining an SHSDL connection, flat rate domestic voice and data and mobile
telephony in a single package for businesses. Prices start at €129.00 per month, or €139.00 with flat rate data, or €154.00 with flat
rate mobile.
9
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On the other – cutting prices
Telefonica will take part in a €100m
program of joint public and private
funding for start-ups in the ICT
segment, It is part of public-private
initiative, under which the government
plans to allocate €300 million towards
development of businesses across a
variety of industry sectors. This
program is not only good PR for
Telefonica, but also should enable it to
cherry-pick future acquisition targets
in ICT, as well as helping to shape the
things start-ups are developing to
make them relevant for its cloud
offerings,
Telefonica has announced a scheme
whereby SMEs and the selfemployed can start a business,
acquiring all their IT requirements
with a 40% payment up front, paying
another 10% of the cost over the next
18 months, then the other 50% in the
19th month, provided they contract
all their communications services
with the carrier. With Spain in a
difficult economic situation, this
move by Telefonica is a good way of
stimulating new business
10
CosmOTE has introduced a program
for business customers which includes
unlimited intra-company calling, fixed
monthly fees and low-cost domestic
call rates. With Greece headed into
economic misery thanks to the
government's austerity plans, it is
clearly a good moment to offer special
programs to keep business customers
loyal.
Blueface is offering three phone
packages based on Panasonic
hardware including a fixed reception
phone and a choice of either two,
four or six cordless desk phones.
This new deal, targeted at cashstrapped Irish small businesses
needing to upgrade or possibly startups buying their first PBX, is not
really a partnership - just voice
bundled with a Panasonic PBX. It
shows just how low prices for voice
have fallen.
BT Business has announced the
launch of a new finance scheme, Kick
Start, that allows start-ups to get up to
£15,000 worth of technology on lease.
The main aim of this scheme is to help
small businesses raise funds in a
challenging economic climate and
avoid over-dependency on banks. The
scheme is open to businesses under
three years old.
Dutch MVNO Simpel has launched a new
SIM-only subscription, Simpel Business,
for very small businesses and the selfemployed. The plan allows businesses to
prepay bundle costs and postpay running
costs. This is an interesting offer from
Simpel, who is targeting the potentially
large number of small businesses with no
payment record - Simpel will not be doing
credit checks. It looks a fairly low-risk
approach with a combination of
prepayment, two-year contract and
maximum size.
O2 has announced a workspace in the
O2 retail store in Central London for
local entrepreneurs and small
businesses. This workplace provides
the businesses that have relinquished
their own office space due to the
economic crisis, with open
workstations, meeting rooms, free WiFi access and even technical advice
services. The new workplace can cater
for up to 75 visitors and has open
workstations for up to 10 people. This
looks like a good marketing idea from
O2.
Virgin has announced a connectivity
trail with THECUBE. Virgin will provide
a dedicated 1Gbps internet access,
which will be available to start-ups to
use on flexible commercial terms. It
will be free of charge for one year.
During this time, the incubator will
explore a range of commercial models
and packages. This looks like a smart
move. On the one hand Virgin gets
good PR from supporting UK small
start-up high tech businesses at a time
of economic hardship and on the other
hand it gets its partner/reseller to test
out new commercial models.
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Agenda
11

Drivers for innovation and transformation

Telco investments to improve the customer experience

The telco as an enterprise, and as a service provider
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CIO Survey: IT budget split by functional area in 2011
What share of your overall IT and technology budget in 2011 is spent on the following
system components?
CRM, contact center, and
customer care systems
8%
Service assurance and network
management systems
8%
10%
Services from systems integrator or
IT outsourcer
8%
9%
Billing systems
6%
15%
5%
13%
Customer provisioning systems
4%
15%
Business intelligence systems
4%
Internal and field-force workforce
management systems
4%
8%
Inventory management systems
3%
9%
Internal networking and communications 3%
infrastructure operations
9%

12
32%
39%
29%
27%
38%
18%
32%
28%
43%
27%
28%
13%
34%
41%
13%
35%
41%
20%
20%
16%
23%
18%
>30%
34%
30%
25%
10%
24%
29%
20%
13%
23%
32%
20%
9%
Internal installation and maintenance 1% 6%
0%
25%
27%
15%
Data warehouse and storage systems
Revenue assurance 1%
29%
33%
27%
30%
20% to 30%
40%
46%
50%
10% to 20%
60%
70%
5% to 10%
80%
90%
100%
<5%
The functions directly impacting customer experience received the greatest share of IT spend in
2011. CRM, contact center, customer care, service assurance, network management, billing, and
provisioning systems all featured at the top of the list.
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CIO Survey: IT investment targets telco customer
experience problem areas
Within these domains, which are the most important investment areas?
CRM
Single view of the customer
38%
Service personalization
20%
Multi-channel integration
16%
BSS
Billing – converged (pre & postpaid)
24%
Charging – converged (pre & postpaid)
24%
Billing – converged (fixed & mobile)
16%
Charging – converged (fixed & mobile)
16%
OSS
42%
33%
42%
20%
10%
9%
18%
29%
52%
20%
High Priority
30%
40%
Mid-high priority
50%
Low-mid priority
70%
Low priority
80%
6%
5% 0%
3% 0%
3% 0%
22%
60%
1%
9%
15%
51%
22%
0%
10%
24%
44%
4%
6%
47%
24%
1%
6% 3%
28%
29%
Activation
9%
34%
33%
Network and service policy management
6%
22%
42%
Testing, fault reporting, probes, and alarms
5% 0%
22%
47%
Provisioning/fulfillment
4% 0%
33%
38%
23%
1% 0%
23%
46%
33%
Fraud management
18%
53%
Charging – Realtime/dynamic/intelligent
13
43%
5% 0%
90%
100%
N/A

The areas within telco IT that impact customer experience the most are billing problems and poor provisioning.
As a result, both feature strongly in the list of investment priorities.

Within CRM, obtaining a single view of the customer is the most important objective for the majority of telcos.
This also supports the need to move to the unified, cross channel view
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Investing across all sales and support channels is key
(1)
1.
Having visibility into the entire customer journey regardless of channel
2.
The ability to track the customer through a potentially complex labyrinth of
interactions across multiple channels in a single session.
3.
Understanding customer channel preferences, behavior and context.
Social
Phone
Preferences
Web
14
IVR
Web
Agent
Behavior
Context
Callback
Store
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Investing across all sales & support channels is key (2)
Portals and web chat are increasingly important, but speaking with an agent,
emails, IVRs and stores all feature prominently
Two years ago
Today
Phone call with CSR
Email
Phone automated touchtone system
Web self-service
Phone automated speech recognition system
Store
Web chat
Paper mail
Text messaging
Social media (Facebook, Twitter)
Fax
Video
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Note: The survey included 2,000 respondents from France, Germany,
the UK, and the US.
15
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Enterprises need to consider every aspect of the customer
experience across the lifecycle…
Engagement
process
Marketing &
acquisition
• Product catalog
• Product and price
plan comparison
Provisioning
• Configuration
• PCRF
• Service activation
• Mediation
• Customer
management
Channel
Service usage
Billing
Customer
management
• Customer management
• Rev mgmt
• Account management
• CRM
- charging & billing • Care, retention &
• Self help
- settlement
loyalty programme
• Device mgmt
- mediation
• Network management
• Service assurance & mgmt
• Diagnostics and fault
resolution
TV,
TV,Internet,
Internet,web
webportal,
portal,social
press,
media
press,
billboards,
billboards,
High Street
High Street
storesstores
Web,
Web,contact
call centres
centers, social media
Help Forum,
Web site, contact
call centres,
centers,
post,
post,
banks
banks
16
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Customer behavior is evolving …
17
Social
Mobile
Experience
Customers have
access to information
from their peers.
Smart phones and
social media are
becoming pervasive.
Customer expectations of
Customers can easily
share opinions with
the large digital
communities and the
world.
Mobile devices have
dramatically changed
the dynamic between
the enterprise and the
customer.
service, price and
delivery are
rapidly changing.
Customers want access
to support from every
location and device.
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Tomorrow’s priority is the ‘customer experience’
Percentage of respondents
100%
Which metrics are the most important in determining
the success of your service & support organization?
80%
Most important today
Most important in 2 - 3 years time
60%
40%
20%
0%
Customer
Satisfaction
First Call
Resolution
Average Handle
Time
Wait Time
Net Promoter
Score
N = 103
18
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CRM and social media monitoring are top investment priorities
Which of the following technologies are you looking to implement or upgrade
within your service and support organization in the short- or mid-term?
Short-term priority
CRM
Surveys
Analytics
Social media
monitoring
Mid-term priority
Case management
Online chat
Short-term (2012)
Mid-term (2013-2015)
Remote support
0%
10%
20%
30%
Percentage of respondents
19
40%
N = 103
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Pulling social information into the contact center

Track online customer behavior

Pull information back



Educate agents
Update the knowledge base
Alert customers of improvements
But is there a danger we are training
customers the wrong way?
20
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Impact of mobile on service

Inbound customer service calls
in developed markets
A genuine mobile strategy will take
into account:

the underlying data and call
routing connections between a
mobile application and a contact
center or other self-service tool
such as web chat or IVR

the process of authenticating a
mobile user as an identified
customer,

the shared costs (among customer
care and marketing departments,
among others) of deploying and
maintaining service via different
mobile contact channels

the KPIs that will indicate the
success of a mobile care program
100%
80%
Home landline
60%
Office landline
Non-smartphone
Smartphone
40%
PC and tablet (voice)
By 2016, 36% of customer service
calls will be made from smartphones
20%
0%
2011
21
2012
2013
2014
2015
2016
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The smart, connected interactions (SCI) model
Level 4
Transforming
Level 3
Enhancing
Level 2
Supporting
Smart, connected
interactions
Mobile applications
Level 1
Basic
Features
Brochureware
Transactional
Design
No mobile-specific
design
Basic mobile design
User acceptance
Availability
One smartphone
platform
Voice
Standard voice
2.5–3.5 stars
Two to three
smartphone platforms, one
tablet platform
Enhanced voice
Multichannel
Basic email
Basic multichannel
Context
awareness
Little or no
context
Basic callback
Experience
continuity
22
<2.5 stars
One-off mobile
application
Aligned, loosely integrated
Engaging
Current design
elements
3.5–4.5 stars
Multiple platforms,
rich mobile web
Downstream
multi-modality
Unified messaging
Rich context with
clickstream
Data and workflow
sharing
Transformational
Leading-edge design
elements
>4.5 stars
All major devices and
form factors
Two-way multimodality
Unified messaging with
resource-dependent
escalations
Seamless switching
across channels
Realtime switching,
lossless state transfer
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Agenda
23

Drivers for innovation and transformation

Telco investments to improve the customer experience

The telco as an enterprise, and as a service provider
© Copyright Ovum. All rights reserved. Ovum is an Informa business.
Telco actions to improve customer experience and
service
Software-driven, customer centric systems and business processes are required
Product centric
Customer centric
Multiple logins, passwords, phone # to access information
Sales, service & info organized by product/access type
Hard-coded options and processes for
services
Contact centers with limited RFT resolution
ability, so multiple handoffs
Retail outlets focus on sales
Static FAQs on web sites
controlled by operator
Good deals avail to
new customers
24
1 login, 1 #
Integrated account info and
usage of solutions
Software driven, agile
service processes
Consistent customer information
available across channels
Retail outlets for service and support
Dynamic FAQs run by online communities and QA’ed
by operator
Good deals available to most valuable and existing customers.
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Trends in telco enterprise services
Managed networks 
intelligent networks
Ubiquity - access
Managed mobility
services
Collaboration/UC&C
25
The network as a
platform
Data center
M2M
Customer
Experience Services
“Applications”
(including cloud)
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How telcos are approaching cloud/SaaS
IaaS
PaaS
Telco cloud offers
Typical customers
Public cloud
SME
Virtual private cloud
Large enterprise
Private cloud
Government
Development tools
Applications developers
Business apps
SaaS
one-stop shop
UC&C
26
Examples
SME
All businesses
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Wrap-up
1. In the face of new competitive threats, telcos are moving up the ICT
service stack, bundling services, and differentiating on customer
experience.
2. The medium-term challenges for differentiating are integrating social
media and ‘smart’ mobile interactions in a service strategy.
3. Customer experience delivery should be channel and device
agnostic.
4. The more virtual the architecture, the more agile the delivery.
5. There is an opportunity to commercialize internal customer
experience services and expertise.
27
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Thank you

Clare McCarthy, Practice Leader, Operations

Evan Kirchheimer, Practice Leader, Enterprise
 [email protected]
 [email protected]
28
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References

Slide 4 - Global Services Deals Analysis 2H11: Value in the Middle


Slide 5 - This is part of a report which has not yet been published.


If you'd like to speak to the author, Thomas Reuner, he can be reached at
[email protected]. The report should be out next month. You can search by his
name on our knowledge center.
Slide 6, 12, 13 - Ovum survey, Telco Business and Investment Trends for IT

http://www.ovumkc.com/Products/Telecoms/Telco-Operations/Telco-Business-andInvestment-Trends-for-IT/Ovum-Slide-Pack#id_112961

Slides 18, 19 - These were from a consulting project we did which we have not yet
published. It was a contact center director survey. I will see if I can source the deck.

Slides 21-22 - The Future of Customer Service in a Mobile World: Smart, Connected
Interactions

29
http://www.ovumkc.com/Products/Telecoms/Enterprise/Global-Services-Deals-Analysis-2H11Value-in-the-Middle/SUMMARY
http://www.ovumkc.com/Products/Telecoms/Customer-Experience-and-Interaction/The-Futureof-Customer-Service-in-a-Mobile-World-Smart-Connected-Interactions/SUMMARY
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Outsourcing – where will telcos’ ‘core skills’ go?
Primary Vendor
Client Name
Announcement Date
Contract
Length(M)
TCV ($M)
IBM Corp
Etihad Etisalat
(Mobily)
06 Aug 2012
60
280.0
Alcatel-Lucent
Nokia Siemens Networks
Nokia Siemens Networks
Ericsson
Ericsson
Ericsson
Huawei
Nokia Siemens Networks
Alcatel-Lucent
Ericsson
Nokia Siemens Networks
Nokia Siemens Networks
Cellular South Inc
Optus
TeliaSonera
Fastweb
MTN Group
China Mobile
Du
Zain
Chunghwa Telecom
T-Mobile
T-Mobile
Hrvatski Telekom
02 Jul 2012
31 Jul 2012
31 Jul 2012
30 Jul 2012
25 Jul 2012
19 Jul 2012
14 Jul 2012
06 Jun 2012
04 Jun 2012
08 May 2012
07 May 2012
26 Apr 2012
36
36
36
84
36
36
60
36
36
60
60
36
60.0
60.0
30.0
70.0
75.0
60.0
50.0
45.0
36.0
1250.0
1250.0
36.0
Source: Ovum
30
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Outsourcing – it’s not just about the network
IT Service Type
Application development and support; Infrastructure management; Maintenance/support
Network integration; Network management
Application management; Maintenance/support; Network integration; Offshore contracting; Training
Application management; Helpdesk management; Infrastructure management; Maintenance/support
IT Consulting; Maintenance/support; Systems integration
Maintenance/support; Network integration; Network management
Maintenance/support; Network consulting; Network integration; Network management; Systems integration;
Training
Maintenance/support; Network management
Maintenance/support; Network integration; Network management
Maintenance/support; Network consulting; Network integration; Network management; Systems integration
Maintenance/support; Network consulting; Network integration; Network management
Maintenance/support; Network consulting; Network integration; Network management
Application development and support; Maintenance/support; Network integration; Network management
“European telcos spent over $15bn on infrastructure and application
services in 2011, and are on track to spend over $18bn by 2016. By 2016,
half of that spend will be on application services.”
Source: Ovum
31
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