Enabling a Differentiated Enterprise Customer Experience - Oracle

Enabling a Differentiated Enterprise Customer Experience – A SolutionsBased Approach

An Oracle White Paper July 2012



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, SolutionBased Approach .............. 4

What’s Achievable – Addressing Key CEImpacting Business KPIs .. 5

Balancing CE with Customer Profitability........................................... 7

Partnering with Oracle to Enable a Differentiated Enterprise CE ....... 8


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 solutionsbased 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 timetomarket for nextgeneration services and enable converged offers seamlessly.

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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 softwaredriven 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 ondemand bundling, reducing the cost of sale, and improving the ordertocash time.”

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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 partnershipbased 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.

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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 toplevel 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, SolutionBased 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 solutionsbased platform, as shown in Figure 2, CSPs can enable key endtoend customer centric and businessdriven processes, including: •

Concepttocash

•

Leadtoquote

•

Quotetoorder

•

Ordertocash

•

Endtoend customer lifecycle management

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Figure 2: Oracle’s EndtoEnd Solutionsbased Approach

A solutionsbased 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 customerimpacting 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

•

Standardsbased and softwaredriven (i.e. favor configuration over coding) to futureproof IT investments and deliver much greater business agility, process optimization and reuse.

Benefits of Oracle’s flexible, softwaredriven solutionsbased approach are outlined in the next section.

What’s Achievable – Addressing Key CEImpacting Business KPIs To get started, CSPs need to identify which CEimpacting 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.

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TABLE 1: TOP 10 CEIMPACTING BUSINESS KPIS CXIMPACTING

ENTERPRISE REQUIREMENTS

CSP BUSINESS VALUE

BUSINESS KPIS

INDUSTRY

WITH ORACLE

AVERAGE

Bring Products to

“We want to deal with a

Market Quickly

market leader and leverage

the latest technologies to

• Upselling to existing

“We have unique

• New revenue streams

requirements that are

• Faster revenue recognition

OnDemand

continually changing. We

• Strategic customer relationship

need.” “We want to decide how and

Channel Support

when to interact with our communications partner.”

• Multiple touch points enhances revenue potential • Faster resolution, lowcost channels lower costs

Reduce Sales

“We need to reduce the time


Quotation Time

and cost in selecting and

• Reduces the cost of sale

(Lead to Quote

purchasing complex ICT

Time)

services.“

Improve Order

“Our communications partner

Capture Accuracy

must turn up our services on

(Right First Time)

time and as promised.

Minutes/Hours

• Competitive differentiation

Bundles

Flexible, Cross

Days/Weeks

the brand

Create Custom

only want to pay for what we

Days/Weeks

• Attracts new customers to

drive new competitive advantage.”

Months

customers

Channel

Single view of the

dependent view of

account across all

account

channels

Takes hours/days

Seconds/minutes

to crossreference

to access common

multiple records.

records.

Weeks/Months

Minutes/Hours /Days

• RFT critical to CX

Fallout rates of

99.9% Right First

• Reduces order fallout costs

30%50%

Time


Days – Requires

Minutes/Hours

• Increases contract

cancelling and re

Unforeseen downtime can cost our business money.” Support InFlight

“Updates to our orders are

Order Changes

the norm. They shouldn’t cost our business time or to go to the back of the queue and delay our commercial plans.”

Reduce Order

“We need these services now

Cycle Time

to support revenue generation, reduce costly downtime and retain our competitive position.”

profitability

submitting order


Days/Weeks

• Phased billing for longlived

/Months

orders • Lower OPEX

Minutes for onnet services and soft changes to complex services (IP VPNs)

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CXIMPACTING

ENTERPRISE REQUIREMENTS

CSP BUSINESS VALUE

BUSINESS KPIS

INDUSTRY

WITH ORACLE

AVERAGE

Provide Web

“We need selfcare so we

based

can update services on

SelfCare

demand and ensure

predictable costs.”

Meet Delivery

“Downtime is costly. We

SLAs

need guarantees that our

services will be delivered on

Limited to basic

Supports IP VPN

functions, swivel

Bandwidth on

• Fast, lowcost resolution

chair selfcare for

Demand showing

resolution to common

complex services

commercial cost

• Reduces contract risk

Networkcentric

Businesscentric

• Competitive differentiation

SLAs focused on

SLAs covering

network issues

customer lifecycle

• New revenue potential (i.e. iVPN BoD)

requests

time and as promised.”

Predictable and

“We need predictable costs

60% of support