Build the ‘Right Software’ to Delight Your Customer · Customer Delight Index (CDI) Customer Delight Time to Respond (50%) (100%) Customer Friendly (50%) Resolution (50%) Training

© 2004 EMC Corporation. All rights reserved. 111

Build the ‘Right Software’ to Delight Your Customer

Unmesh GundewarJanuary 19, 2005


“The best way to predict

the futureis to

create it.”─ Peter Drucker


Agenda

What Is Right Software?What We Asked, Heard, and Learned Customer Delight – Leading IndicatorsGoal Question Metric (GQM) Predicting Customer Delight

– Customer Delight Index (CDI)

Summary


Operational Definitions

Building the Software Right– Building software that meets specifications,

but may not meet the need

versus

Building the Right Software– Building software that exceeds customers’ expectation


Most Quality Initiatives Focus on Software Right!

Capability Maturity Model – CMMSix Sigma – DMAIC

– Define– Measure– Analyze– Improve– Control

Product Delivery Process Improvement InitiativesProduct Quality Initiatives

? Product Quality

?

Customer Delight Components


Quality AwardsCriteria

Sources of Input for Right Software

IndustryResearch

CustomerSatisfaction

Survey

CMMAssessments

EMC Cross-Functional

GroupsProduct Quality?

?



Agenda

What Is Right Software?What We Asked, Heard, and LearnedCustomer Delight – Leading IndicatorsGoal Question Metric (GQM) Predicting Customer Delight


Summary


What We Asked

What are we doing to delight our customers?How are we currently measuring customer satisfaction?What are our top areas of concerns?

Quality AwardsCriteria

IndustryResearch

CustomerSatisfaction

Survey

CMMAssessments

EMC Cross-Functional

GroupsProduct Quality

?

?



What We Heard – Striving for Customer Delight

Customer and market knowledge – Listening & learning strategies

Customer relationships and satisfaction processes

– Acquiring new customers– Retaining existing customers– Developing new marketing opportunities – Managing complaints

Customer-focused results – Analyzing how well organization has been

• Satisfying customers • Delivering product and service quality

Customer Loyalty and Repeat Business

? Product Quality?

Quality Awards Criteria

?


Malcolm Baldrige

National Quality Award:

3 out of 7 areas

pertain to customers

RESULT:


What We Heard – Engineering

Driving toward delighting customers by improving products and services– New functionality– Ease of doing business– Ease of use– Reliability– Serviceability

Right Features, Product, and Service Quality

Our first and foremost goal should be to delight

our customers

─ EVP, Software Development

? Product Quality? EMC Cross-

Functional Groups

?

Customer Delight ComponentsRESULT:


What We Heard – Global Services

Driving toward delighting customers by improving

– Product quality– Faster service – Loyalty

Reducing time to resolve problemsImproving ease of use, functionality, and supportFocusing on customer relationship and retention

Effectiveness, Customer Loyalty, and Repeat Business


Functional Groups

?



What We Heard – Customer Service

Driving toward delighting customers by improving Quality of Service– Investing resources where most needed– Involving customer service up front in the EMC corporate product lifecycle– Conducting focus groups– Improving test coverage across all products

Responsiveness, Product, and Quality

When the customer does not have to call EMC,

that’s delight!

– Director of Customer Service


Functional Groups

?



What We Heard – Corporate Quality

Driving toward delighting customers by – Improving

• Customer relationship• Perceived value • Customer satisfaction• Robustness of EMC solutions

– Increasing profitability of • EMC• Customer

Perceived Value, Loyalty, and Repeat Business


Functional Groups

?



Agenda

What Is Right Software?What We Asked, Heard, and LearnedCustomer Delight – Leading IndicatorsGoal Question Metric (GQM) Predicting Customer Delight


Summary



ResponsivenessEffectiveness

AvoidingDefects

Right featuresLoyalty & repeat businessPerceived value

Customer Relationship

Product Quality

Service Quality

?

?



Agenda

What Is Right Software?What We Asked, Heard, and Learned Customer Delight – Leading IndicatorsGoal Question Metric (GQM)Predicting Customer Delight


Summary


CustomerRelationship

Right Features

Loyalty & RepeatBusiness

Perceived Value

ServiceQuality

Responsiveness

Effectiveness

ProductQuality

Avoiding Defects

Customer Delight – Leading Indicators


GQM (Goal Question Metric)

Goal(s)

Questions

Indicators

Measures

GoalsBusiness => Sub goals => Measurement

Mission Vision

SLOC Staff Hours Trouble Reports Milestone Dates

Definition ChecklistDefinition Checklist

InfrastructureAssessmentInfrastructureAssessment

QuestionsWhat do I want to know or learn?

How do I know if I have met my goal?(Success Criteria)

Indicators

Indicator TemplateObjectiveQuestion

InputsAlgorithmAssumptions


Customer Relationship Goals


Customer Relationship Product

Quality

Service Quality




Customer Requests - Prod Requirements

60 7090

5040 50

90

40

020406080

100

Prod A Prod B Prod C Prod D

Products

# of

R

eque

sts/

Req

uire

men

ts

Cust Requests Requirements

What percentage of the customer requests actually turn into product requirements?

Goal: Improve Right Features

Customer Servicability Requirments

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Prod A Prod B Prod C Prod D%

of R

equi

rem

ntsWhat percentage of customer

serviceability requirementsactually turn into product features?

What percentage of the high-priority requirements are implemented?

Customer High Priority Requirements

0

50

100


Products

% o

f Hig

h Pr

iorit

y R

eque

sts

Cust High Priority Requests Cust Reqts Implemented

'Right' Features - Known, Unarticulated, Unknown,

0%20%40%60%80%

100%

Prod A Prod B Prod C Prod D% o

f Req

uire

men

ts

Known Needs Unknown Needs Unarticulated Needs

What percentage of the requirements fall into the categories of known needs, unarticulated needs, & unknown needs? –


Service Retention Rate

0

20

40

60

80

Prod A Prod B Prod C Prod D Prod E

Cont

ract

s

Current Contracts Renewed Contracts

What percentage of service contracts are being renewed?

− By business units− By products

Goal: Increase Loyalty and Repeat Business

Products Repurchased

0%20%40%60%80%

100%

Prod A Prod B Prod C Prod D%

of C

ust -

R

epur

chas

e EM

C

Prod

ucts

% of cust Q2 03 Purchase % of cust Q4 03 Purchase

How many customers are purchasing additional EMC products?

How many customers are truly loyal to EMC?

─ By business units─ By products

Truly Loyal Customers by Product

0.00%

20.00%

40.00%

60.00%

80.00%

Q2 03 Q4 03% o

f Sur

veye

d C

usto

mer

s

Prod A B Prod A B


Goal: Perceived Value

How long did it take to realize ROI?How effective was EMC at meeting customers’ expectations?


Service Quality Goals



Product Quality

Service Quality




Goal: Improve Responsiveness

How quickly does EMC customer service respond to customers?How long (weeks /months) does a new service representative require to come up to speed?

– On average and by product

Response Time

05

101520


Ave

rage

Tim

e

Avg. Response Time (Minutes) Avg. Resolution Time (Days)Avg. Learning Time (Days)


Goal: Improve EffectivenessResolution Time

05

101520


Ave

rage

Tim

e

Avg. Response Time (Minutes) Avg. Resolution Time (Days)

Avg. Learning Time (Days)

How long does it take to resolve customers’ questions and issues?


Product Quality Goals



Product Quality

Service Quality

Avoiding Defects



Goal: Improve Installability

What percentage of the installability requirements are identified vs. implemented?

Customer Reported Installability Requirements

020406080

Identified Planned Implemented

# of

Req

uire

men

ts

Prod A B C Prod A B C Prod A B C

What percentage of the customer reported installability Issues are being addressed?

Customer Reported Installability Issues

020406080

% o

f Cus

tR

equi

rem

ents

Prod A B C Prod A B C Prod A B CRaised byCustomer

Planned Implemented


Ease of Use Requirements

0204060


f Req

uire

men

ts

Planned Actuals

What percentage of the planned ease of use requirements are actually implemented?– By product– By business units

Goal: Improve Ease of Use


Goal: Improve Interoperability

What percentage of the Interoperability requirements are planned and implemented?

– By product– By business units

Interoperability Requirements

0

2040

60


f Req

uire

men

ts

Planned Actuals


Agenda

What Is Right Software?What We Asked, Heard, and Learned Customer Delight – Leading IndicatorsGoal Question Metric (GQM) Predicting Customer Delight


Summary



‘Right’ Features– Known Needs– Unarticulated

Needs– Unknown Needs

Loyalty & RepeatBusiness– Contract Renewals– Truly Loyal

Perceived Value– Cost– Benefits

ServiceQuality

Responsiveness– Time to Respond– Customer Friendly

Effectiveness– Resolution– Training Ramp-up

Time

ProductQuality

Defects– Bugs– Ease of Use– Interoperability– Installability– Reliability

All areas are potential Six Sigma opportunities

Customer Delight – Leading Indicators


Customer Delight Index (CDI)

CustomerDelight(100%)Time to Respond (50%)

Customer Friendly (50%)

Resolution (50%)Training Ramp-upTime (50%)

Bugs (20%)Ease of Use (20%)Interoperability (20%)Installability (20%)Reliability (20%)

Customer Renewals (50%)Truly Loyal (50%)

Known Needs (25%)Unarticulated Needs (35%)Unknown Needs (40%)

Cost (50%)Benefit (50%)


(40%)

ServiceQuality(35%)

ProductQuality(25%)

Loyalty & RepeatBusiness

(40%)

Right Feature(40%)

Perceived Value(20%)

Defects(100%)

Responsiveness(50%)

Effectiveness(50%)


Defects (100%)

7.20

Bug (20%) 6

Ease of Use (20%) 8

Interoperability (20%) 8

Installability (20%) 8

Reliability (20%) 6

Responsiveness (50%)

3.25

Time to Respond 8

Customer Friendly 5(50%)

Effectiveness (50%)

Resolution (50%) 7

Training Ramp-up 6Time (50%)

3.25

=

=

Customer Delight100% = 10

6.80

+

+

Product Quality25%1.80

+

+

Service Quality35%2.28

Customer Relationship40%

2.72

Customer Relationship =(2.9 + 2.6 + 1.3) x 40% = 2.72

Goal-Driven (Indicator) Measurement Process

Perceived Value Percentage = [(5 X 50%) + (8 X 50%)] X 20% = 1.3

Right Feature (40%)

Known Needs (25%) 8

Unarticulated Needs (35%) 7

Unknown Needs (40%) 7

Loyalty & Repeat Business(40%)

Customer Renewals (50%) 5

Truly Loyal (50%) 8

Perceived Value (20%)

Cost (50%) 5

Benefits (50%) 8

1.30

2.90

2.60


Summary

You can predict how your software will delight customers by measuring leading indicators

before your product is released!


Product Quality

Service Quality



Build the Right Software


AvoidingDefects



Product Quality

Service Quality




Addendums


Sources of Input for Right SoftwareQuality Awards Criteria

– Malcolm Baldrige National Quality Award

– Massachusetts Quality Award

EMC Cross-Functional Groups– Engineering, Global Services,

Customer Services, Corporate Quality

CMM Self-Assessments Customer Satisfaction SurveyOther EMC ReportsIndustry Research

– AT&T Value Model– AgileTek– Quality Progress Periodical (February

2003)– The Loyalty Effect – Frederick F.

Reichheld

Goal-Driven (Indicator) Measurement Process

– Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven Measurement Techniques, by Wolfhart Goethert and Matt Fisher, October 2003

Massachusetts Quality Award– (Covers 7 areas, 1 which pertains to

Customers)• Customer Focus and Satisfaction

– Know customer’s current and future needs

– Evaluate processes for analyzing customer needs

– Measure 'ease of doing business'

– Timely follow-up after recent sales and transactions

– Compare customer satisfaction results with competitors’

– Analyze trends from customer satisfaction data

Right Features, Product Quality

Documents

Build the ‘Right Software’ to Delight Your Customer · Customer Delight Index (CDI) Customer Delight Time to Respond (50%) (100%) Customer Friendly (50%) Resolution (50%) Training