Innovation in Private Sector Verticals

Innovation in Private Sector Verticals

Sandy Janes Director, Vertical Solutions Marketing

Mitel | Confidential June 2007 slide 2

Key Verticals Addressed

Private Sector

Retail and Finance are the focus areas

of this presentation

Public Sector


Overview

Retail 201 Finance 101

Positioning Solutions in Retail

Winning Examples

What‟s Available For You …

Retail Banking

Capital Markets


Retail


Foundation of a Retail Solution

We do not force you into a generic „retail‟ category


The Evolution Process of VoIP as Experienced by Mitel‟s Retail Customers

Platform High-Touch

Applications Multi-Site / Network

Network Management and Maintenance

Physical Infrastructure and Power

Productivity Gains

2002

New Revenue Generation

Initial VoIP installs where justified

based on these factors alone.

Improve Operating Efficiencies

Reduce TCO

2004 2006


(Lunn Poly)

Viglen

Retail Wins


Defining the Customer Driven Store: Mobility in Big Box, Department and Grocery Stores

Deli

Pharmacy

Deli, Bakery

SKILLS BASED ACD

increases the

functionality

of wireless by sending

calls directly to the

right associates

MOBILE EXTENSION

allows both phones

to ring simultaneously

YA SOFTPHONE allows District managers

to bring their extension with them to ANY

location – inside, or outside of the network

HOT DESK at corporate

i640 handset is

built for rugged

usage

Consider this:

Portable phones save

managers 15 to 26

minutes a day in time

previously spent walking

to and from a

conventional phone

5302 POS phone


Many Opportunities Outside of Big Box Stores Using Teleworker in Small Store Locations

Store #1

Large Store Format

Store #2

Small Store Format

Corporate Campus

Warehouse

Contact Center

Mobile Employees


A Sample of a Few Recent Additions

Social Responsibility

– Enable employee mobility

– Help the environment

– Save ~ $500,000 per year

Will allow 1/4 of its head office staff to occasionally work from home

3300 ICP, Teleworker, Mobile Extension, Audio Conferencing, Mitel Your Assistant, Mitel Messaging Server, Mitel Customer Interaction Solutions

Driver


Opportunities Outside of the Store

Missed Calls Lead to Missed Revenue

Consider These Facts:

“Customers who use 3 [different shopping] channels spend 4

times more than customers who only use 1 channel.

Source: Gartner, August 2005

”

13% of calls are abandoned on average according to a new study

from Dimension Data. Yet, it is not uncommon to lose upwards of

25% of calls in retail. What would this cost you in revenue?Source: Gartner, August 2005

”

“


Retail Customer Patterns Findings From a Recent Mitel Study

Phone calls are the preferred method of contact

– 37% prefer the phone as compared to 29% store visits and 28% email

Over 50% of callers inquire about product availability and store hours

53% of people are not willing to wait more than 1 minute for a retail inquiry

– 45% report 1 to 4 minutes on hold

Common frustrations include:

– Not knowing how long you will wait 80%

– Listening to hold music 72%

– Being bounced around departments 72%

Ask Retailers: “What is your abandoned call rate?”


Call Routing Options

Interactive Auto Attendants

Intelligent Routing

Sales Associates Reach

Understanding

Call Patterns

Call Accounting Software

Hold Options

Embedded Music-on-hold

Dynamic Messaging

85% of callers prefer to hear information

while on hold. With silence, 60% will hang up

after one minute. And over a third of those

callers won‟t ever call back.

Don‟t Leave Revenue on Hold Options Available to Retailers

Source: USA Today

“

”


In-store customer service or management #4

Back-up in-store department or provided customer with the option of requesting a

queued callback #3

Computer H/W and Home Office Associates in originating store #2

The “Global Store” Concept

Saturday 2:25PM

In Store shopper needs

to find a specific product.

Saturday 2:35PM

The shopper is

unable to find any

sales assistance.

Saturday

2:38PM

The shoppers

questions are

answered.

Centralized CustomerServices #1


A Look at Lost Opportunities

Fashion and grocery retailers lose £2.7bn a year because they are not responding to customers‟ buying signals

48% of customers will go to a competitor if the in-store wait time is longer than 2 minutes (Mitel Commissioned Study, May 2007)

How can you change this picture?

Source: Envision Retail, October 2006

19% convert

to buyers

81% non

buyers

Conversion Drivers

28% of shoppers who hold up a

garment against themselves on the

sales floor can be converted to

purchasers.

This jumps to 71% if the customer is

persuaded to use a changing room.


In-Store Customer SolutionSolution in Progress

Text message and / or canned voice

Wireless device rings and / or vibrates OR an overhead page is made

Manual or auto escalation

Associate acknowledges receipt

Associate arrives at call origin and presses “cancel”

Sporting GoodsAisle 8

“ Consider this:

50% of people will

avoid a store

because of

someone else‟s bad

experience. Source: IBM at NRF „07

”


Marketing Activities In Retail

Brand Creation

Integrated Solutions for Retail Magazine

Extended Retail Solutions

1to1 Magazine

Content

End User Presentation

Backgrounders

Handouts, Article Reprints

White Papers

– Don‟t Keep Revenue on Hold

– Telepathic Store

– Mobility in Retail

– Extending the Customer-focused Contact Center


Finance


Banking Sector Segments

Federal Reserve Banks

Commercial Banks

Savings Institutions

Retail Banks

Credit Unions

Financial Holding Companies

Mitel‟s solutions fit each of the

3 key finance sectors. This

presentation focuses on

providing industry information

on the Banking Segment.

Banking Capital Markets Insurance


Retail Banking Opportunity in the U.S.

Retail Bankers are heavily committed to IT spend

– According to IBM, the consumer banking sector spent an estimated US$104 billion on technology globally in 2004 – a number that is expected to grow at a rate of 5.2% annually

The foundation is in place

– Banking enterprises have invested in electronic solutions for increasing communications speed, but have neglected to launch holistic, productive and effective communications initiatives

Banks are aggressively pursuing innovative consumer-centric solutions. Communications solutions are paramount to achieving this mandate

Additional key focus areas include a renewed focus on improving employee productivity and training, while maintaining a low cost structure

Mitel solution is well suited for small to mid tier banks


Banking Challenges at Every Level

External Pressure

Market is opening up / barriers to competition are

getting lower

Industry Pressure

Regulatory Environment

Risk and Capital Management

Reporting and Compliance

Business Operations

Customer growth, cross selling

Customer satisfaction (responsiveness, accuracy and protection)

Costs to manage

Shareholder value to create

Keep employees current

Fraud reduction (50% of fraud is internal)


Is IT the Answer? Banking IT Investment

400

380

360

340

320

3002003 2004 2005 2006 2007 2008 2009

Time scale

Bil

lio

ns

Global technology budget for new and

upgraded retail banking solutions

Source: IBM 2004 Report

“Transforming the Retail Banking Environment”

“Global IT investment will exceed

US$380B in 2009.

Source: Gartner, August 2005”

“35% of spending will be invested

in front-end technology.

Source: Tower Group”

“30% of all IT investment is now

in channels (with most of that

going to the branch).

Source: Gartner”


Banking Channels from the Customer‟s Viewpoint

The phone is the

preferred channel to

get information on

high value services,

yet banks invested in

automated telephone

banking at the expense

of personal telephone

banking.

Banks need to increase emphasis

on personalized telephone

banking services to catch up to

customer expectations

Banks recognize that branches

are the key channel for closing

critical service transactions

13%23%11%31%24%9%Managed fund

13%20%5%40%45%14%Credit card

8%23%11%49%49%19%Personal loan

3%12%9%35%49%18%Home loan

7%18%7%10%71%13%Savings / transactions

SaleInfoSaleInfoSaleInfo

InternetPhoneBranch

Consumer Channel Preference

(% responded affirmative)

Source: Booz Allen Hamilton


The Renaissance of Today‟s Bank Branch

Good Internet capability and personalized telephone banking are core capabilities, but the branch is experiencing a renaissance

Branches ranks as the 2nd most important customer channel, but is most critical up-selling opportunity

Key branch initiatives:

– Retail stores are becoming models for new bank branches – designed to entice a customer to enter, spend time and make a purchase

– To encourage face-to-face visits, banks are extending branch hours

– Banks are building new branches to expand to new markets. VoIP and reduced cabling costs will appeal to this sector

– Banks evaluating various communications technology, including Web kiosks and video technology

Branch visits are still high regardless of customer age

Key branch initiatives include expansion, refurbishment, modernization and extended store hours


Learnings from Video Case Studies

78% of opportunities discussed via video resulted in customer action

Australian bank claims to have doubled its market share in mortgage lending over three years in large part due to customer‟s satisfaction with the banks services

Cross-sell opportunities increased by roughly 10% (as a result of video)

Saved three days of driving

Source: Financial Insights


Call Center Challenges

Automated telephone banking has proved unpopular with clients

Banks are moving to personalized telephone banking

Presents contact center staff with challenges in recruitment, training, working hours, motivation and remuneration

Banks are not excluded from the challenges of retaining staff and have been burdened with turnover rates

Banks are always balancing the number of staff required with the ability to maintain exceptional customer service – the agent on demand model works well for this sector


IT: Veto Power

Where Are the Decisions Made?

Consumer Bank

Consumer Finance

Corporate Bank

Private Bank

International

President

Lines of Business Central Support HR

External Affairs

Legal Counsel

Risk

Audit & Compliance

Corp Finance

Information Technology

Finance & Administration

Operations

Chairman

MarketingSource: © 2007 The Tower Group Inc.

Finance: Influences decisions

LOBs: Decision Makers. Set requirements and pay. Some have independent IT

Marketing: Influence decisions on customer knowledge

Operations: Heavy Influence


Customer Centric Bank Experience

Potential customer

is surfing the web

for a new bank.

Call back request

is made.

Customers‟ contact details are

sent into a predictive dialer.

Customer is called by a contact

center agent who answers a few

questions and sets up an appointment

for the next day at the branch.


Customer arrives and is

greeted by a receptionist.

Receptionist calls the branch manager.

Branch Manager is not at his desk, but gets

the call on his mobile phone with Mitel‟s

Mobile Extension.


The customer and manager proceed to his office

Receptionist checks to see that the retirement planning expert is available


The customer asks the

manager a mortgage

question that he cannot

answer.

He looks to see if an expert

is available to answer the

question.


Joanne, the mortgage expert, is brought into the meeting.

Once the question is answered, they add the retirement

planning expert via quick conferencing.

The group decide to have a video and data collaboration

session. The client‟s files are shared with everyone.



A Different View of Finance Capital Markets

Hedge Fund Distributed Sites DR Sites

Increased number of smaller trading sites, Hedge Fund / Boutique,

geographic expansion or merger, DR sites that require continuous,

efficient, client-facing tools that streamline costs

Consolidation


The Result:

Smaller trading environments remain confined to in-house solutions

consisting of generic enterprise solutions and basic IP phones

The Problem

Today‟s finance IT environment focuses on large, single site customers

Solutions consist of many closed, specialized networks

This is expensive and does not converge front to back office personnel


Mitel Capital Markets PortfolioInnovative Communication Solutions for the Smaller Trading Floors and the Offices that Surround it

Front Office

Endpoints

Mobile Trading /

Work

Continuous

Availability

Converged Voice

and Data solution

High Performance

Teaming

Flexible

Migration

Thank you

Sandy Janes Director, Vertical Solutions Marketing (212) 798-1897

The information conveyed in this presentation, including oral comments and written materials, is confidential and

proprietary to Mitel and is intended solely for Mitel® employees and members of Mitel‟s reseller channel. If you are

not a Mitel employee or a Mitel reseller, you are not the intended recipient of this information and are not invited to

the conference, and cannot participate in or listen to and/or view the presentation. Please delete or return any

related material. Mitel will enforce its rights to protect its confidential and proprietary information, and failure to

comply with the foregoing may result in legal action against you or your company.


Backup Slides


Financial IndustryMarket Overview

Similar to the IT sector

– Turmoil over past 5 years has caused significant change

– Convergence is driving merger and acquisition activity

– Infrastructure development largely limited to „essential‟ spend

– Many knowledge workers / team working / collaboration

Consists of 4 very different sub-sectors

– 3 require a specific solutions focus

– Vertical sales approach will play a crucial role

Significant opportunity across all sectors


Front Office Endpoint Options Highlights

IP Navigator (Researchers/ Analysts)

Simplified task navigation

Automatically stop of all audio and video streams

5340 Client Interface Device

Sales, light trading

Transforms the desktop into an automated CRM portal

IP Trading Appliance

Purpose built to address the needs of traders in smaller trading environments

Research Relationship

Manager

Trading/

Execution

Dealing Room


Front Office Endpoint Options Key Features

Ring Down (RD) Circuits

Global Free Seating (Hotdesking)

Voice Recognition

Record a Call

Seamless Internal Communication

Research Relationship

Manager

Trading/

Execution

Dealing Room


5340 Client Interface Device

Endless integration options

– Device comes with a built-in HTML toolkit

Enhance customer relationships / empower CRMs

– Display client‟s „profile ID‟ on the desktop

– Pull key data from CRM database (recent trades, account numbers, balances) with every incoming call.

Deliver mission critical information

– Emergency broadcasts / Regulatory updates

– Response-based (provides acknowledgement receipt)

Minimize “fat finger syndrome”

– Self-guided soft keys assist users with requests

Extend the energy and „presence‟ of your front office to branch or home office locations

– Expand presence capabilities to monitor the trading floor in any location from the 5340


Mitel IP Trading Device Applications

Call History

Conferencing

Personal / Corporate Directory

Direct and Group Paging

Teleworking

Mobile Extension

XML to the Display

Web-based Configuration

Built in HTML toolkit enables

BPI through application

integration


Mitel Capital Markets Portfolio

5340 “Client

Interface Device”

Mitel Turret

Trading Solution

Navigator

Analyst Assistant

Front Office Endpoints Mobile Trading/Work Continuous Availability High Performance

TeamingFlexible Migration Intelligent Data

Facilitation

S

k

j

D

12

34

56

y

W

Tiered Coverage:

Appl.Resiliency

Flexible Work

DR Site

Rapid Response

Stop Gap

Solutions that

address the

evolving needs:

Scheduled

Ad Hoc

Instant

Near Light Speed

“Agent anywhere”

Home

Temp

Road Warrior

Corridor Warrier

Content Routing

Consolidated

Data

Desktop

Facilitation

Architectural

Interoperability

Protocol

Interoperability

Open Interface &

Management

Custom

Interworking

Innovative communication solutions for

the smaller trading floors and the offices

that surround it.


The Value of Video in Retail BankingVideo Technology Adoption Timeline at Retail Banks

Deliver Higher Quality Customer Service

Support FirmWide BusinessOperations

EnhanceCollaborationand Communication

Replace ExistingFace-to-FaceMeetings

Key

Business

Objective

Stage 1 Stage 2 Stage 3

“End Goal”

Stage 4

Current level of bank penetration

High Medium Low Low

Source: Financial Insights, 2005


Increased Emphasis on Live Help

In a recent survey by KPMG, it was found that:

– Internet banking was identified as the most important channel

– Banks performance in this area is mixed

– Delays in service launch, access problems and security - significant ongoing issues

– Provision of automated telephone banking is the only area where banks believe they “over-deliver”. Suggests that past IT investments in this area overstated client expectations

– Trend is moving away from automated systems towards personal telephone banking services

– Perceived under-delivery in this area may reflect the significant operational challenges in delivering live assistance

Personalized telephone banking support as important as the branch

and ATM networks in the delivery of good customer service.

Documents

Innovation in Private Sector Verticals