2009. TMForum, Bystriansky

Online Customer Self-Service
Maximizing the Customer Experience

© Emeldi Proprietary, All rights reserved
High Level Summary
2
 The objective of this presentation is to:
 Summarise why it is increasingly more important to maximise the quality of the
customer buying experience over online web channels
 Outline what challenges this poses for Telecom IT solutions
 Offer suggestions how these challenges should be addressed
 Case study of implementation of Fixed / Mobile convergent e-shop in
Telefonica O2, Czech Republic – very first in the region.
 The first section covers current market conditions and drivers
demanding online ordering and self-care channels.
 The main section deals with the self-care solution challenges
encountered on the way
 The last part shows evaluation of realised benefits

Why Customer Experience is important
3
 Gartner research shows 80% of executives think customer experience is more
important now than three years ago.
 A customer can only judge the quality of a company’s products/services based on
inferences made when evaluating the quality of their customer service (customer
experience).

Excellent Customer Experience means…
4
 Increased loyalty
 Customers want higher levels of control and access over increased number of
value offers
 Their perception of this control is governed by the face (online self-care channel)
 The easier, more intuitive the interface, the greater the customer experience
 The higher feeling of control they perceive, which all translates to loyalty and
retention
 Increased Revenue
 The more options which are clearly and easily exposed to the customer the more
revenue will be attained
 Prevented churn:
 If a customer perceives a lack of control or options they will seek business
elsewhere
68% of Customer defections occur because customers perceive "An
Attitude of Indifference“ . Customer Experience Accounts for Everything.

© Emeldi Proprietary, All rights reserved5
Why anything called “self” makes sense
 Market Saturation, stagnating ARPUs, global economic slowdown /
crisis
 Telco Operators want to:
 reduce cost to operate while maintaining quality of service
 increase revenue through differentiation
 Telco Customers (end-users) demand:
 higher purchasing flexibility (e.g. create their own bundles)
 shopping convenience (anytime, anywhere),
 highest standards of service delivery
 service independence from network (anyhow)
 Internet penetration is reaching mass market
 Network and service convergence developments
Fertile ground for web-based self-care and web-based shopping

….but
Only reliable, resilient and fault-tolerant web-based solutions
enhance customer experience
 Before the arrival of internet, economy customers could only share their
experience with the people they knew.
 Now, one customer can publish a story about a single bad experience with
the touch of a button, all easily accessible to millions of people.
 While the internet has been empowering customers, companies have been
distancing themselves from them – less face-to-face interactions.
 Web-based shopping and self-care is convenient for customers and cost
effective for companies, but can be disastrous if something goes wrong…
 The probability that something will go wrong with web-based shopping and
self-care is very high.

New Telefonica O2 e-shop - Background
7
 Telefonica O2 Czech Republic is a major Tier 1 operator providing both fixed
and mobile services
 Broadband penetration in Czech Republic (2008 figures)
 Telefonica O2 Czech Republic, operated several e-shop applications that
were implemented in the former fixed and mobile operators before the
merger in 2006
Technology Subscribers in
000
Percentage
DSL 681 35
TV Cable (CATV) 360 19
CDMA and UMTS 217 11
Wi-Fi and other FWA 572 30
Fiber (FTTx) 100 5
Total 1930 100

New Telefonica O2 e-shop - Background
 In 2008, Telefonica O2 initiated a project “Delivery process
improvement” aiming to improve and increase level of automation
and process efficiency for all components of delivery sales
 The main business drivers of this effort included:
 significantly increase end-to-end process efficiency
 increase ratio of activated products out of total orders sent to logistics
 shorten total order-to-activation time
 improve customer experience
 provide a flexible and integrated (fixed-mobile) e-shop front-end,
capable:
 of cross-selling / up-selling
 targeting specified customer segments

New Telefonica O2 e-shop
- Business Goals
9
 Offer Fixed, Mobile and FM convergent services over web
channel
 Enhance customer experience by offering a personalized and
compelling service.
 Longer term take-over target – assume new service activations
from consumers total:
 15% postpaid, 25% prepaid,
 20% mobile prolongations, 20% transfers,
 25% ADSL, 20% O2TV
 Reduce dependence on indirect sales channels
 Realize savings through dealer commission avoidance (e.g. 10%
postpaid via e-shop translates into annual savings of EUR 1 mil.)

Enticements for customers to go e-shop
10
 Crazy weeks (special / discounted bundle offers)
 Campaign products (LCD TV, MS Office for EUR 15, etc.)
 Gifts for free (SMS for free, digital thermometer, etc.)
 Direct links from other O2 web portals – to concrete
scenarios, to concrete products, etc.

New Telefonica O2 e-shop – IT Goals
11
 Replace old version of Mobile e-shop
 no content management system
 absence of flexible product catalogue, no synchronization
 no connection to O2 back-end systems – each order was processed manually
 ordering scenarios were not user friendly
 Consolidate fixed and mobile web ordering applications and create
one convergent e-shop to support entire portfolio of O2 residential
services
 Implement new order management back-end process and integrate
with convergent e-shop
 In next phase, connect e-shop solution to self-care portals
(integrated for fixed and mobile services)
 Various COTS packages were evaluated, Emeldi was chosen to
deliver application development and systems integration services

Customer self-care solution challenges
 Unification of diverse web based portals within Telco operator
system map
 Common and centralised framework
 Single Sign On (SSO)
 Product catalogue issues:
 Single vs. distributed
 Master / slave principles
 Business logic issues
 centralized vs. distributed
 Solution to contain intuitive and personalized features
 Resilience of front-end solution from back-end systems
 Solution components to be:
 Portable
 Vendor independent

Addressing these challenges (1)
 Allowing flexibility regarding Enterprise Product Catalogue concept:
 Single vs. distributed
 Master / slave principles
 For lower development costs, and product rollout times, we observed optimal
solution is to design a product catalogue to assume both master and slave
modes simultaneously
 some sections of the product catalogue may act as master while others may
import their data from various other external systems
 System supports on/off line synchronization
 Internal Product Catalogue (Master) retains only data required for support of
functions necessary within the scope of its local business processes.

 Allowing flexibility regarding business logic issues
 centralized vs. distributed
 Solution to contain intuitive and personalized features
 Easy navigation, fewer steps to the order
 Shopping experience is fun
 Solution to support multi-branding
 Multi-currency support
 Multi-language support

 Resilience of front-end solution from back-end systems
 Independent from availability of back-end systems
 Order parking - possibility to suspend and resume an order during any step

e-shop Integration Architecture
16

e-shop Implementation
17
 The project to re-develop Telefonica O2 e-shop started in June
2008
 There were integration challenges along the way
 New convergent e-shop was launched in November 2008
 It works now as a single ecommerce platform for fixed line services
(e.g. ADSL, IPTV, VAS services, hardware) and mobile services
(e.g. phones, tariff plans, data plans, hardware, mobile VAS
services, contract extension, mobile number portability)

….and some e-shop statistics
18
 Average number of completed fix orders doubled
 Average number of completed GSM orders increased by 50%
 Telefonica O2, Czech Republic has about 150 stone shops, e-
shop produces about 15-20% of daily orders (it means it replaces
30 stone shops)
 Peak hours / days
 10 am - 11 am (15% of all orders),
 5 pm - 6 pm (20% of all order)
 Peak during week: Monday (18% of all finished orders)
 0,29% of all orders that are going online are rejected by the back-
end Order Management system

Summary messages
19
 Current market condition and technological advancements create
a fertile ground for web-based self-care and web-based shopping
 Web is an important ordering and customer-care channel with
numerous opportunities to enhance the customer experience
 It works anytime and anywhere
 Web can not only serve customers, but also dealers and even
stone shops
 …but the probability that something goes wrong with web-based
shopping and self-care is very high
 Only reliable, resilient and fault-tolerant web-based solutions
enhance customer experience

Thank you for your attention
For questions and/or more information please contact
dusan.bystriansky@emeldi.com
+420 777 813 317

2009. TMForum, Bystriansky

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