integrated customer management - postechdpnm.postech.ac.kr/papers/tmw/tmw2004-longbeach/tmw3024...

© 2004 - Proprietary and Confidential Information of Amdocs

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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









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

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etw

ork

Dat

aD

ata

Proc

ess

Proc

ess

IT S

yste

ms

IT S

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ms

Organizational Strategy

Touc

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ints

Touc

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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

integrated customer management - postechdpnm.postech.ac.kr/papers/tmw/tmw2004-longbeach/tmw3024...

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