The new world starts and revolves around the digitally enabled consumer: Very demanding and high expectations True, seamless, single view of the customer accessed via multi-channels Leverage “high loyalty” and minimise chum – product of choice and service that delights the customer 40% of phone support by 2016 will be resolved be peer-to-peer community interaction on the internet (Gartner). 1/3 of us already access social media today for customer service advice. Focus on: Single view of the customer Seamless Multi-channel Web Chat support Mobile applications and access Social media analytics & pro-activeness Sales through service – Profit centre and Sales culture
This is the slide that shows why you “buy” and don’t “build” your future “Digital Store” There is a divergence between: Vertical industry expertise (Client domain); and Horizontal channel expertise (IBM domain). Given the investment now needed to be at leading practice for channel expertise, particularly as the channel migrates to the complete “Digital Store”, the partnering (outsourcing) business model becomes more compelling – reference SCION and Watson as examples ! Talking through this slide, the focus needs to be on “what has IBM down for which client” in each area, showing our demonstrated delivery capability at leading practice for referenceable clients: Ben and Jennifer to action Maybe colour code the different IBM solutions to each molude / client, eg: GPS, GBS, Software, etc.
A slide to explore the client’s appetite for how they want to engage with IBM … no right answer and very client specific. Models are consulting (GBS) in the top two boxes and outsourcing (GPS) in the bottom two boxes. Clients can move across boxes, switch in & out of models, eg: Consult, operate and then transition back (BOT) Manage my operation (Managed services), being a mix of consult and operate
This is (fairly) new material in positioning value based pricing models. The traditional and outcome models are established, with client references, eg: Apple, TRUEnergy, etc. The Equity model has, historically, not been IBM’s preferred contracting model, but there are many precedence's in Asia (eg: Japan) where it is the client’s preferred model and so IBM has proceeded. I see this type of arrangement becoming a regular request / expectation with the GMU client base. In line with the “Digital Store” and the related profit centre nature of the operation, however, I think there is a great opportunity for IBM to share in this value creation and deliver unrivalled value to clients by contracting to a commission funded model. The concept is that IBM is compensated with a “commission” on the incremental value that our “Digital Store” generates, in terms of both winning new customers and generating more revenue from existing customers, cross- and up-sell. This is IBM “putting its money where its mouth is !”. The concept is that by using our analytics, multi-channel and operating a leading practice digital store, we shall be able to generate significant incremental value for the client and, therefore, a profitable level of commission based payment for IBM. This has already been tabled in two proposals last year, JetStar Call Centre and Qantas Loyalty, with the exception that the base customer value was calculated into the 100% value funded fee, rather than a higher gearing and leverage of just any incremental value being the basis for financial compensation.
Smarter Commerce Digital Store
Increased Revenue and Profitability By Smarter Commerce in the “Digital Store”
Differentiated customer experiences across channels Revenue and Profitability Customer insight Cost reduction and operational excellence HIGH QUALITY INTERACTIONS HIGH QUALITY EXECUTION Leveraging technology for competitive advantage Associated with innovation Increasing brand equity Enabling enterprise for the future Complicated service and support needs Multi-channel active Complex service activation High loyalty and high degree of churn CUSTOMER VALUE OF TECHNOLOGY ENTERPRISE VALUE OF TECHNOLOGY DIGITALLY-ENABLED CONSUMER CUSTOMER BUSINESS OUTCOMES ENTERPRISE BUSINESS OUTCOMES A new generation of objectives drives the smarter Telecom company
The “Digital Store” requires comprehensive and integrated technology Document Imaging OCR/ICR & Forms Processing Document Management Forms (eForms, HTML forms) BPM Desktop Automation Corre- spondence Template Analytics Dashboard Text Analytics / Text Mining Corporate Brand Awareness Tool Decision Management Social Networking for Predictive Modeling Speech to Text Transcription Speech Analytics Advanced Analytics (Data Mining) Predictive Call Routing Real Time Customer Insight Predictive SLA Management FOUNDATIONAL / CORE MULTI-CHANNEL CUSTOMER LIFECYCLE ANALYTICS INFRASTRUCTURE & SECURITY DOCUMENT WORKFLOW AUTOMATION OPERATIONAL ANALYTICS Channel optimisation Voice of the customer Desktop Skills Based Routing Telephony (virtual contact centre) LAN/WAN and Cloud (hosting) Physical, Process, HR & Technology security Backoffice Productivity & WFM BPR & Lean 6-Sigma Work Queues Employee Engagement Agent Training Assessment DELIVERY EXCELLENCE (EPIC) CUSTOMER ANALYTICS Pre-sales support Customer acquisition Customer on-boarding Service & support Revenue Growth & Retention Talent profiling & acquisition Training delivery & management Knowledge management Troubleshooting / diagnostic Quality management Performance management Workforce management Case management IVR Txt Chat Email Web Social Media Mobile Voice Retail Apps Virtual contact centre - GR Billings & Collections
Multi-Channel, Customer Centric Strategies Drive Self-Service Adoption Optimized Business Processes Operational Reporting & Analytics Content Authoring & Maintenance Design & Usability Enhancements Design, Develop & Deploy Applications Applications, Operate Systems, Technology Platforms & Architecture (On-Premise, Managed Services, Hosted Environments) Skilled Human Capital Contact Centres Operational Diagnostics & Initiative Roadmaps IVR Social Networks Web, Chat, SMS Define System Architectures Operational Improvements Analytical Driven Improvements Agent Voice, Chat & Email Services Home Agent Knowledge Management Global Shared Services IBM offers different ways to bring your “Digital Store” to Leading Practice DECIDE WHAT TO DO BUILD IT RUN IT TUNE IT
This is the unit price that is applied on the time for which the FTE is logged in to the system and is available to process calls and transactions. LOG IN HOUR PRICE This is the unit price that is applied on the time to process a transaction or call. PRODUCTIVE MINUTE PRICE This is the price that is applied on the number of transactions performed / customers supported PER TRANSACTION/ CUSTOMER VALUE TO THE CLIENT RISK AND REWARD POTENTIAL TO THE PROVIDER Client and IBM work together to improve operations and share in the benefit. GAIN SHARE Traditional Pricing Models Outcome Based Pricing Models This is the price that is applied on the base and the incremental increase of the value and number of customers supported COMMISSION FUNDED MODEL Value Based Pricing Models This is modeled on a franchise or joint venture, equity and profit based remuneration system EQUITY MODEL Our commercial options reflect the spectrum of value we provide <ul><li>Client business objectives aligned with IBM commercial objectives </li></ul><ul><li>Confirms IBM’s commitment to a long-term relationship, providing improved business results </li></ul><ul><li>Allows client focus on industry expertise and IBM to focus on “Digital Store” channel expertise </li></ul>