Upload
grahame-lynch
View
1.324
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Enabling a Differentiated Enterprise Customer Experience –A Solutions-Based Approach
Citation preview
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
An Oracle White Paper
July 2012
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
Executive Overview ........................................................................... 1
The Enterprise Market Opportunity .................................................... 1
The Analyst Perspective .................................................................... 2
Oracle’s View of the Enterprise CE Lifecycle ..................................... 3
First Step – Defining Your Enterprise CE Strategy ............................ 3
The Need for a Holistic, Flexible, Solution-Based Approach .............. 4
What’s Achievable – Addressing Key CE-Impacting Business KPIs .. 5
Balancing CE with Customer Profitability ........................................... 7
Partnering with Oracle to Enable a Differentiated Enterprise CE ....... 8
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
1
Executive Overview
Enabling an empowered customer experience (CE) for enterprise customers is critical to
growing the top line, yet enterprise customer’s business expectations – often set by consumer
experiences in other industries like retail and finance – are not being met. This deficit provides
Communications Service Providers (CSPs) with a unique opportunity to differentiate their
brand and grow their enterprise market share.
This paper outlines the market opportunity and the analyst view of what is required to succeed
with enterprise customers. It then discusses how a solutions-based approach can deliver on
these requirements, key performance indicators (KPIs) that are achievable and how CSPs can
also maximize enterprise customer profitability as part of the overall business strategy.
The Enterprise Market Opportunity
With consumer revenues flattening, CSPs are focusing on the enterprise segment to
accelerate their business and financial growth. Ovum forecasts that service revenues from
enterprise services alone will exceed USD280 billion by 2015 with:
• 28% Compounded Annual Growth Rate (CAGR) from Managed and Hosted IT services
• 13% CAGR from Carrier Ethernet
• 25% CAGR from SME Cloud services
To capitalize on this opportunity, CSPs need the right platforms. Rapid growth in enterprise
services drives the need to scale efficiently, support rapid time-to-market for next-generation
services and enable converged offers seamlessly.
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
2
The Analyst Perspective
What is required to succeed? Telecommunications analyst firm Ovum states the following in
their white paper “Improving the customer experience for the enterprise segment” (July 2012):
• “Enterprise customers challenge their CSPs to address the current CE deficit by improving
the levels of service and support to deliver greater business benefits. In response, CSPs
must standardize and unify systems, and deploy automated and software-driven business
processes. The outcome will deliver tangible benefits internally, assure future revenue
streams and improve the customer experience for the valuable enterprise segment.”
• “A single platform will deliver the unified view of services and customer data, whilst
automating key touch points in the customer lifecycle will allow accurate order capture,
faster processing and offer design and delivery and coordinated customer support across
multiple channels.”
• “Operators can at the same time enhance the enterprise CE and business model if they
focus on improving product profitability through on-demand bundling, reducing the cost of
sale, and improving the order-to-cash time.”
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
3
Oracle’s View of the Enterprise CE Lifecycle
A positive enterprise customer experience is the biggest driver of top line enterprise services revenue
growth. As shown in Figure 1, the enterprise CE lifecycle involves multiple and ongoing interactions
between the enterprise and the CSP during both the buying and owning stages. By exceeding
expectations at each touch point, CSPs can enable a virtuous circle of continuous upselling for existing
business customers as well as drive new business customers to the brand through positive testimonials.
Figure 1: Enterprise Customer Lifecycle Touch Points
Telecoms and connected IT services are business enablers for enterprises. As such, enterprises are
looking for a flexible, responsive and partnership-based relationship with the CSP that can address all
their current and emerging needs.
First Step – Defining Your Enterprise CE Strategy
Before looking at IT investments, CSPs need to first define their enterprise CE strategy. What are our
top five CE objectives? How do they differ between consumer, SME, large enterprise, industry
verticals and wholesale segments? This analysis will define the priorities; highlight where there is
overlap and need for specialization; and in turn identify the business processes and IT platform
requirements needed to support the strategy.
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
4
Next steps involve drilling deeper to shape the plan:
• Frame the problem of the enterprise CE deficit within the context of the customer lifecycle touch
points: buying (identifying a need, researching, selecting and purchasing) and owning (receiving,
using, maintaining and recommending).
• Identify what are the key enterprise requirements for each phase. You can then translate these
requirements into specific enterprise CE KPIs that can be measured.
• Identify the barriers preventing you from addressing the enterprise CE requirements. This requires
an analysis of systems, people (skills) and process contributing to the enterprise CE deficit.
• Identify top-level business processes required to improve enterprise CE. You can then determine the
appropriate systems, organizational structure and skills required to enable the new, more customer-
centric approach.
• Identify quantifiable enterprise CE and business benefits that will be realized. These benefits provide
the business and financial justification for moving forward with the action plan.
Through this analysis, the CSP can ensure a holistic and aligned approach, while at the same time target
the highest priority areas first where the CE and business pay offs are the greatest.
The Need for a Holistic, Flexible, Solution-Based Approach
Once CSPs have outlined their enterprise CE strategy, they need to identify the right platform to
succeed. The platform needs to support a holistic approach given:
• the overlap between consumer, enterprise and wholesale market segments and services
• the need to balance CE objectives with other key business requirements such as maximizing
customer profitability and reducing costs
Through a solutions-based platform, as shown in Figure 2, CSPs can enable key end-to-end customer-
centric and business-driven processes, including:
• Concept-to-cash
• Lead-to-quote
• Quote-to-order
• Order-to-cash
• End-to-end customer lifecycle management
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
5
Figure 2: Oracle’s End-to-End Solutions-based Approach
A solutions-based approach provides a common set of tools and language for
• Ensuring a common understanding of the account across all teams and channels
• Driving much greater organizational alignment around key customer-impacting business processes
To ensure flexibility and business agility, the platform must be:
• Modular to ensure that the CSP can flexibly target their highest pain points first as well as leverage
legacy investments when appropriate
• Standards-based and software-driven (i.e. favor configuration over coding) to future-proof IT
investments and deliver much greater business agility, process optimization and re-use.
Benefits of Oracle’s flexible, software-driven solutions-based approach are outlined in the next section.
What’s Achievable – Addressing Key CE-Impacting Business KPIs
To get started, CSPs need to identify which CE-impacting business KPIs are essential to their business
and then prioritize them. Table 1 identifies key business KPIs for improving the CE, explains why they
are important to both enterprises and the CSP, and highlights benchmarks that are achievable with the
right approach.
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
6
TABLE 1: TOP 10 CE-IMPACTING BUSINESS KPIS
CX-IMPACTING
BUSINESS KPIS
ENTERPRISE REQUIREMENTS CSP BUSINESS VALUE INDUSTRY
AVERAGE
WITH ORACLE
Bring Products to
Market Quickly
“We want to deal with a
market leader and leverage
the latest technologies to
drive new competitive
advantage.”
• Upselling to existing
customers
• Attracts new customers to
the brand
• Competitive differentiation
Months Days/Weeks
Create Custom
Bundles
On-Demand
“We have unique
requirements that are
continually changing. We
only want to pay for what we
need.”
• New revenue streams
• Faster revenue recognition
• Strategic customer
relationship
Days/Weeks Minutes/Hours
Flexible, Cross-
Channel Support
“We want to decide how and
when to interact with our
communications partner.”
• Multiple touch points
enhances revenue potential
• Faster resolution, low-cost
channels lower costs
Channel-
dependent view of
account
Takes hours/days
to cross-reference
multiple records.
Single view of the
account across all
channels
Seconds/minutes
to access common
records.
Reduce Sales
Quotation Time
(Lead to Quote
Time)
“We need to reduce the time
and cost in selecting and
purchasing complex ICT
services.“
• Faster revenue recognition
• Reduces the cost of sale
Weeks/Months Minutes/Hours
/Days
Improve Order
Capture Accuracy
(Right First Time)
“Our communications partner
must turn up our services on
time and as promised.
Unforeseen down-time can
cost our business money.”
• RFT critical to CX
• Reduces order fall-out costs
Fall-out rates of
30%-50%
99.9% Right First
Time
Support In-Flight
Order Changes
“Updates to our orders are
the norm. They shouldn’t cost
our business time or to go to
the back of the queue and
delay our commercial plans.”
• Faster revenue recognition
• Increases contract
profitability
Days – Requires
cancelling and re-
submitting order
Minutes/Hours
Reduce Order
Cycle Time
“We need these services now
to support revenue-
generation, reduce costly
down-time and retain our
competitive position.”
• Faster revenue recognition
• Phased billing for long-lived
orders
• Lower OPEX
Days/Weeks
/Months
Minutes for on-net
services and soft
changes to
complex services
(IP VPNs)
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
7
CX-IMPACTING
BUSINESS KPIS
ENTERPRISE REQUIREMENTS CSP BUSINESS VALUE INDUSTRY
AVERAGE
WITH ORACLE
Provide Web-
based
Self-Care
“We need self-care so we
can update services on-
demand and ensure
predictable costs.”
• New revenue potential (i.e.
iVPN BoD)
• Fast, low-cost resolution
resolution to common
requests
Limited to basic
functions, swivel
chair self-care for
complex services
Supports IP VPN
Bandwidth on
Demand showing
commercial cost
Meet Delivery
SLAs
“Down-time is costly. We
need guarantees that our
services will be delivered on
time and as promised.”
• Reduces contract risk
• Competitive differentiation
Network-centric
SLAs focused on
network issues
Business-centric
SLAs covering
customer lifecycle
Predictable and
Accurate Billing
“We need predictable costs
and confidence that the bill is
accurate. Billing disputes is
costly to our business.”
• Reduces churn/ costs
related to bill
shock/disputes
• Faster bill payment
improves cash flow
• Reduces revenue leakage
60% of support
requests are
billing issues
<20% of support
requests are
billing requests
Balancing CE with Customer Profitability
Finally, many CSPs have won large multi-million dollar enterprise contracts only to later record a loss
due to lack of visibility, flawed costing processes and the inability to efficiently manage the complexity
of highly custom, long-lived orders. CSPs must look at how to enable CE while at the same time
control costs and minimize risk to ensure overall profitability and healthy margin growth.
TABLE 2: MAXIMIZING ENTERPRISE CUSTOMER PROFITABILITY
KEY PROFITABILITY
KPIS
REQUIREMENTS
Product
Profitability
• A modular product model that enables flexible and low-cost repackaging of product variants for different
verticals and business markets
Cost of Sale • Strong governance for sales operations, including full visibility of sales costs required for deal closure
Contract
Profitability
• Tools to measure contract profitability, including accurate bid costing , margin analysis for each quote and
visibility on sales compensation to third party suppliers and partners
• Strong governance for service delivery, including project-costing for long-lived orders
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
8
KEY PROFITABILITY
KPIS
REQUIREMENTS
Order-to-Cash
Time
• Accurate order capture (RFT) to avoid time-consuming errors and billing disputes
• Flow-through automation for complex, converged orders including IP/Ethernet VPNs
• E2e order view to identify bottleneck and enable process optimization
• Multi-phased billing for bundled, long-lived orders including multi-site VPNs
Partnering with Oracle to Enable a Differentiated Enterprise CE
As CSPs focus on the enterprise segment to accelerate growth, they need to move quickly and astutely
to make the right investments to grow revenues in an increasingly competitive market. This requires
working with a trusted partner. Only Oracle has
• A comprehensive end-to-end solution that delivers a world class customer experience across
the entire customer lifecycle
• A flexible, software-driven and solutions-based platform designed to enable customer-
centricity, business agility, process optimization, order transparency and re-use
• Extensive experience in enabling enterprise offers for multiple enterprise markets
• Leads the market in setting industry benchmarks for key enterprise services business KPIs
As a next step, CSPs should contact their Oracle representative to set up consultative workshop to
discuss your business objectives and requirements in more detail.
Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach
9
White Paper Title
[Month] 2012
Author: [OPTIONAL]
Contributing Authors: [OPTIONAL]
Oracle Corporation
World Headquarters
500 Oracle Parkway
Redwood Shores, CA 94065
U.S.A.
Worldwide Inquiries:
Phone: +1.650.506.7000
Fax: +1.650.506.7200
oracle.com
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only and the
contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other
warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or
fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are
formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any
means, electronic or mechanical, for any purpose, without our prior written permission.
Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.
Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and
are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are
trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group. 0612