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Integrated Customer ManagementEnabling Stronger, More Profitable Customer Relationships
Integrated Customer ManagementEnabling Stronger, More Profitable Customer Relationships
Michael CoutureVP, SolutionsAmdocs
October 2004
Michael CoutureVP, SolutionsAmdocs
October 2004
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AgendaAgenda
> Criteria for success is changing
> Strategies are changing to meet new criteria
> Integrated Customer Management (ICM) strategy & Case Studies
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The Criteria for Success is Changing The Criteria for Success is Changing
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What’s Changing?From Familiar Territory What’s Changing?From Familiar Territory
Hundreds of Services
Rapid Innovation
Low barriers to entry
High end-user expectations
High Penetration for basic connectivity
Converging lines of business
New competition
Broadband access/mobility growth high
Stable innovation
High barriers to entry
Low end-user expectations
Distinctive lines of business
Well known competition
Focus: Customer acquisition & top-line
A few services
Divisional autonomy
Stable business/operating environment
Product centric
Characteristics of a successful strategy were:
Mobile Operator Telco
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Hundreds of Services
Rapid Innovation
Low barriers to entry
High end-user expectations
High Penetration for basic connectivity
Converging lines of business
New competition
Focus: Customer retention & profit
Characteristics of a successful strategy are:
Corporate alignment
Agile business/operating environment
Customer centric
What’s Changing?To the New World: Convergence, Ubiquity, CompetitionWhat’s Changing?To the New World: Convergence, Ubiquity, Competition
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Changing Market DynamicsChanging Market Dynamics
New Value Chain& Routes to MarketNew Value Chain
& Routes to MarketNew Products
& ServicesNew Products
& ServicesNew Market
PlayersNew Market
Players
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Answer: Let’s Bundle!Answer: Let’s Bundle!
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The Quest for a Bundle: The Customer PerspectiveThe Quest for a Bundle: The Customer Perspective
3 weeks21 interactions
4 technician visits6+ hours on the phone
7 different welcome letters!1 Bill – Priceless?
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Is your business ready to change?
Is your business ready to change?
“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”
--Charles Darwin
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Strategies are Changing to Meet the New Criteria Strategies are Changing to Meet the New Criteria
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The Change is Upon Us“Not Telecom as Usual”The Change is Upon Us“Not Telecom as Usual”
“Customers today expect more from us. They want to pay less yet get greater value.”
“Our #1 goal is to delight our customers. This earns us the privilege of continuing to serve; every interaction is an opportunity to win loyalty…”
“I am determined to make Nextel the first telecommunications company that draws customers because of — not despite — the quality of both our network and our customer service”
Timothy Donahue, CEO, Nextel
“This is not telecom as usual. Barriers are disappearing; traditional industry lines are blurring…We stepped away from our traditional product focus.”
“We’re changing to get closer… simpler as an organization…more aligned with our customers…. Michael Sabia, CEO, Bell Canada Enterprises
Arun Sarin, CEO, Vodafone
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Back OfficeSystems & Processes
Front OfficeSystems & Processes
Back OfficeSystems & Processes
Front OfficeSystems & Processes
Back OfficeSystems & Processes
Front OfficeSystems & Processes
Back OfficeSystems & Processes
Front OfficeSystems & Processes
Back OfficeSystems & Processes
Front OfficeSystems & Processes
Data /Content
LocalVoice
LongDistanceVoice
WirelessVoice Video
Organizational ImplicationsOrganizational ImplicationsOld World - Line of Business SilosOld World - Line of Business Silos
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Organizational ImplicationsNew World – Business Organized Around the CustomerOrganizational ImplicationsNew World – Business Organized Around the Customer
One StrategyOne Customer
One Company One Brand
Any Product Any Service
Agile
Aligned
CustomerCentric
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ICM is the Strategy for SuccessICM is the Strategy for Success
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Integrated Customer ManagementDefinition
Integrated Customer ManagementDefinition
A way of doing business where…> The focus is on delivering an
intentional, differentiated, and profitable customer experience
> All corporate resources are agileand aligned
The result is the creation & capture of maximum value.
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Factors for SuccessWinners in the environment will:Factors for SuccessWinners in the environment will:
Build agility and efficiency into the business
Leverage & align resources to deliver maximum value
Place customer at the center of the business
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Factors for SuccessPlace the Customer at the Center of the BusinessFactors for SuccessPlace the Customer at the Center of the Business
> Ensure delivery of the intentional customer experience
> Ensure customer experience as the driver of business processes, not a by-product
> Differentiate through customer intimacy to maximize value
> Leverage customer information to deliver mass personalization to deliver the 1-1 experience
> Enable a comprehensive customer lifecycle strategy
> Coherent and consistent management across the whole lifecycle: Analyze, Target, Acquire, Deliver, Bill, Support
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> Problems:> 11 databases> 14 legacy systems> Difficulty implementing
national programs > High-churn> Lengthy bill production
times> Excessive call handling
times
> ICM Results: Customer focus> 1 database, 1 system> Industry leading churn rates
and customer satisfaction levels> Reduced call handling time from
7 minutes down to 5 minutes> 20% reduction in infra costs> Reduce bill production time to
industry best> Not Done yet! Touch point
strategy underway
“Amdocs…saves us time, money, and gives us the ability to deliver products successfully to our customers.”
Dick LeFave, Senior VP & CIO, Nextel, US
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Factors for SuccessBuild Agility and Efficiency Into the BusinessFactors for SuccessBuild Agility and Efficiency Into the Business
> Reduced time to market> Create a faster, reusable product development lifecycle and
infrastructure: Innovate, Develop, Test, Launch and Retire
> Design/Implement infrastructure for varying lifecycle lengths
> Own the entire product lifecycle even when delivered by a third party
> Be flexible and fast in response to changing market conditions
> Adapt your infrastructure so you can anticipate product, pricing needs and to be better designed for change
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> Problems:> Service-built systems
designed for “never ending” PLC
> Processes oriented to inhouse developed network services
> No way to charge and extract value at reasonable cost
> ICM Results: Agility> Reduced cost and time to
market for new services> New content partners
added in as little as 2 days> Enabled pay-per-use &
subscription charging for better profitability
> Bell becoming the partner of choice for leading content providers
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Factors for SuccessLeverage & Align Resources to Deliver Maximum ValueFactors for SuccessLeverage & Align Resources to Deliver Maximum Value
> Align strategies and objectives across departments and divisions to deliver maximum benefit
> Implement business metrics that span the organization, balance priorities and motivate employees accordingly
> Align processes to meet strategic goals > Evaluate and evolve processes to ensure capture of value for the
organization and for the customer (i.e. ensure processes are aligned with strategic objectives)
> Align IT investments to support process goals> Lower IT TCO by aligning investments with corporate goals and
leveraging systems and process across the organization
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> Problems:> Network-centric view
of business and operations
> IT projects not always aligned with business
> No overarching BOSS roadmap
> Redundant systems and processes
> ICM Results: Alignment> Standardize & automate
ordering, fulfillment, & support processes
> Reduced costs £20 million a year & improved productivity by 10%
> Reduced manual intervention & costs for initiating services
> Enabled rapid change> Now rolling-out across BT
Yankee Group, Sharon Ballard. July 2004
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The Value of Integrated Customer ManagementThe Value of Integrated Customer Management
Customer focus AlignmentAgility
Value for the Customer
SimplicitySimplicity ConvenienceConvenience ValueValue
Value for the organization
EfficiencyEfficiencyLoyaltyLoyalty InnovationInnovation
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Organizational ChallengeCuts across all aspects of the enterpriseOrganizational ChallengeCuts across all aspects of the enterprise
Net
wor
kN
etw
ork
Dat
aD
ata
Proc
ess
Proc
ess
IT S
yste
ms
IT S
yste
ms
Organizational Strategy
Touc
h Po
ints
Touc
h Po
ints
AlignmentAgility
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Where to Start?Where to Start?
> Target: ICM as a way of doing business> Increment towards target – Get started
> TTM for new services and bundles> Standardize service management / order management> Next gen contact center / unified desktop> Self-care; eChannels> Consolidate mediation across services
> ROI at each step> Top down commitment – already there?> Business unit Get on the bandwagon> Path to ICM different for every company
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SummarySummary
> Fundamental changes in our industry> Decision makers devising new strategies to
compete> The key elements for success
> Customer at the center of your business > Operational agility > Resource alignment> Get started!
INTEGRATED CUSTOMER MANAGEMENT
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Integrated Customer ManagementIntegrated Customer Management