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Oracle whitepaperEnabling a Differentiated Enterprise Customer Experience –A Solutions-Based Approach


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Enabling a Differentiated Enterprise Customer Experience –A Solutions-Based Approach

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Oracle whitepaperEnabling a Differentiated Enterprise Customer Experience –A Solutions-Based Approach

  1. 1. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based ApproachAn Oracle White PaperJuly 2012Enabling a DifferentiatedEnterprise Customer Experience –A Solutions-Based Approach
  2. 2. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based ApproachExecutive Overview ........................................................................... 1The Enterprise Market Opportunity .................................................... 1The Analyst Perspective .................................................................... 2Oracle’s View of the Enterprise CE Lifecycle ..................................... 3First Step – Defining Your Enterprise CE Strategy ............................ 3The Need for a Holistic, Flexible, Solution-Based Approach .............. 4What’s Achievable – Addressing Key CE-Impacting Business KPIs .. 5Balancing CE with Customer Profitability ........................................... 7Partnering with Oracle to Enable a Differentiated Enterprise CE ....... 8
  3. 3. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based ApproachExecutive OverviewEnabling an empowered customer experience (CE) for enterprise customers is critical togrowing the top line, yet enterprise customer’s business expectations – often set by consumerexperiences in other industries like retail and finance – are not being met. This deficit providesCommunications Service Providers (CSPs) with a unique opportunity to differentiate theirbrand and grow their enterprise market share.This paper outlines the market opportunity and the analyst view of what is required to succeedwith enterprise customers. It then discusses how a solutions-based approach can deliver onthese requirements, key performance indicators (KPIs) that are achievable and how CSPs canalso maximize enterprise customer profitability as part of the overall business strategy.The Enterprise Market OpportunityWith consumer revenues flattening, CSPs are focusing on the enterprise segment toaccelerate their business and financial growth. Ovum forecasts that service revenues fromenterprise 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 servicesTo capitalize on this opportunity, CSPs need the right platforms. Rapid growth in enterpriseservices drives the need to scale efficiently, support rapid time-to-market for next-generationservices and enable converged offers seamlessly. 1
  4. 4. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based ApproachThe Analyst PerspectiveWhat is required to succeed? Telecommunications analyst firm Ovum states the following intheir 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.” 2
  5. 5. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based ApproachOracle’s View of the Enterprise CE LifecycleA positive enterprise customer experience is the biggest driver of top line enterprise services revenuegrowth. As shown in Figure 1, the enterprise CE lifecycle involves multiple and ongoing interactionsbetween the enterprise and the CSP during both the buying and owning stages. By exceedingexpectations at each touch point, CSPs can enable a virtuous circle of continuous upselling for existingbusiness customers as well as drive new business customers to the brand through positive testimonials.Figure 1: Enterprise Customer Lifecycle Touch PointsTelecoms and connected IT services are business enablers for enterprises. As such, enterprises arelooking for a flexible, responsive and partnership-based relationship with the CSP that can address alltheir current and emerging needs.First Step – Defining Your Enterprise CE StrategyBefore looking at IT investments, CSPs need to first define their enterprise CE strategy. What are ourtop five CE objectives? How do they differ between consumer, SME, large enterprise, industryverticals and wholesale segments? This analysis will define the priorities; highlight where there isoverlap and need for specialization; and in turn identify the business processes and IT platformrequirements needed to support the strategy. 3
  6. 6. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based ApproachNext 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 targetthe highest priority areas first where the CE and business pay offs are the greatest.The Need for a Holistic, Flexible, Solution-Based ApproachOnce CSPs have outlined their enterprise CE strategy, they need to identify the right platform tosucceed. 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 costsThrough 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 4
  7. 7. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based ApproachFigure 2: Oracle’s End-to-End Solutions-based ApproachA 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 processesTo 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 KPIsTo get started, CSPs need to identify which CE-impacting business KPIs are essential to their businessand then prioritize them. Table 1 identifies key business KPIs for improving the CE, explains why theyare important to both enterprises and the CSP, and highlights benchmarks that are achievable with theright approach. 5
  8. 8. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based ApproachTABLE 1: TOP 10 CE-IMPACTING BUSINESS KPIS CX-IMPACTING ENTERPRISE REQUIREMENTS CSP BUSINESS VALUE INDUSTRY WITH ORACLE BUSINESS KPIS AVERAGE Bring Products to “We want to deal with a • Upselling to existing Months Days/Weeks Market Quickly market leader and leverage customers the latest technologies to • Attracts new customers to drive new competitive the brand advantage.” • Competitive differentiation Create Custom “We have unique • New revenue streams Days/Weeks Minutes/Hours Bundles requirements that are • Faster revenue recognition On-Demand continually changing. We • Strategic customer only want to pay for what we relationship need.” Flexible, Cross- “We want to decide how and • Multiple touch points Channel- Single view of the Channel Support when to interact with our enhances revenue potential dependent view of account across all communications partner.” • Faster resolution, low-cost account channels channels lower costs Takes hours/days Seconds/minutes to cross-reference to access common multiple records. records. Reduce Sales “We need to reduce the time • Faster revenue recognition Weeks/Months Minutes/Hours Quotation Time and cost in selecting and • Reduces the cost of sale /Days (Lead to Quote purchasing complex ICT Time) services.“ Improve Order “Our communications partner • RFT critical to CX Fall-out rates of 99.9% Right First Capture Accuracy must turn up our services on • Reduces order fall-out costs 30%-50% Time (Right First Time) time and as promised. Unforeseen down-time can cost our business money.” Support In-Flight “Updates to our orders are • Faster revenue recognition Days – Requires Minutes/Hours Order Changes the norm. They shouldn’t cost • Increases contract cancelling and re- our business time or to go to profitability submitting order the back of the queue and delay our commercial plans.” Reduce Order “We need these services now • Faster revenue recognition Days/Weeks Minutes for on-net Cycle Time to support revenue- • Phased billing for long-lived /Months services and soft generation, reduce costly orders changes to down-time and retain our complex services • Lower OPEX competitive position.” (IP VPNs) 6
  9. 9. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach CX-IMPACTING ENTERPRISE REQUIREMENTS CSP BUSINESS VALUE INDUSTRY WITH ORACLE BUSINESS KPIS AVERAGE Provide Web- “We need self-care so we • New revenue potential (i.e. Limited to basic Supports IP VPN based can update services on- iVPN BoD) functions, swivel Bandwidth on Self-Care demand and ensure • Fast, low-cost resolution chair self-care for Demand showing predictable costs.” resolution to common complex services commercial cost requests Meet Delivery “Down-time is costly. We • Reduces contract risk Network-centric Business-centric SLAs need guarantees that our • Competitive differentiation SLAs focused on SLAs covering services will be delivered on network issues customer lifecycle time and as promised.” Predictable and “We need predictable costs • Reduces churn/ costs 60% of support <20% of support Accurate Billing and confidence that the bill is related to bill requests are requests are accurate. Billing disputes is shock/disputes billing issues billing requests costly to our business.” • Faster bill payment improves cash flow • Reduces revenue leakageBalancing CE with Customer ProfitabilityFinally, many CSPs have won large multi-million dollar enterprise contracts only to later record a lossdue to lack of visibility, flawed costing processes and the inability to efficiently manage the complexityof highly custom, long-lived orders. CSPs must look at how to enable CE while at the same timecontrol costs and minimize risk to ensure overall profitability and healthy margin growth.TABLE 2: MAXIMIZING ENTERPRISE CUSTOMER PROFITABILITY KEY PROFITABILITY REQUIREMENTS KPIS Product • A modular product model that enables flexible and low-cost repackaging of product variants for different Profitability verticals and business markets Cost of Sale • Strong governance for sales operations, including full visibility of sales costs required for deal closure Contract • Tools to measure contract profitability, including accurate bid costing , margin analysis for each quote and Profitability visibility on sales compensation to third party suppliers and partners • Strong governance for service delivery, including project-costing for long-lived orders 7
  10. 10. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach KEY PROFITABILITY REQUIREMENTS KPIS Order-to-Cash • Accurate order capture (RFT) to avoid time-consuming errors and billing disputes Time • 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 VPNsPartnering with Oracle to Enable a Differentiated Enterprise CEAs CSPs focus on the enterprise segment to accelerate growth, they need to move quickly and astutelyto make the right investments to grow revenues in an increasingly competitive market. This requiresworking 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 KPIsAs a next step, CSPs should contact their Oracle representative to set up consultative workshop todiscuss your business objectives and requirements in more detail. 8
  11. 11. Enabling a Differentiated Enterprise Customer Experience – A Solutions-Based Approach 9
  12. 12. White Paper Title Copyright © 2012, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only and the[Month] 2012 contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any otherAuthor: [OPTIONAL] warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability orContributing Authors: [OPTIONAL] 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 anyOracle Corporation means, electronic or mechanical, for any purpose, without our prior written permission.World Headquarters500 Oracle Parkway Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.Redwood Shores, CA 94065U.S.A. Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license andWorldwide Inquiries: are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo arePhone: +1.650.506.7000 trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group. 0612Fax: