This document discusses improving customer experience through better network and IT quality management. It proposes a three-level framework to: 1) fix basic technical issues, 2) align network/IT workflows with customer perspectives, and 3) exceed customer expectations through predictive analytics. The approach considers both improving customer experience and agent work conditions. Incremental benefits are gained at each maturity level.

1. How to improve Customer
Experience through best Network
and IT Quality Management
E2E Service Quality Management
March, 2013

2. Apresentação da Arthur D. Little
A Original: A Arthur D. Little é a primeira empresa de consultoria de gestão do mundo
Fundada em 1886, sendo a primeira empresa de consultoria de gestão
do mundo
Hoje é uma empresa líder de consultoria de gestão global com 35
escritórios no mundo inteiro
Os seus pilares são inovação, estratégia e consultoria tecnológica
Servimos 75% das empresas do Fortune 100 companies
NASA e a Arthur D. Little
– Arthur D. Little participou no planeamento
e execução da missão da Apollo 11
– Resultado: A NASA cumpriu os seus
prazos de colocar o Homem na lua antes
do fim da década
Somos reconhecidos como inovadores que cumprem os prazos e com os compromissos
assumidos

3. Apresentação da Arthur D. Little
Trabalhamos com os melhores: Os nossos clientes definem os standards
Uma seleção do nosso portfolio de clientes
Indústria Energia e Engenharia e Serviços Sector Público TIME1) Transportes e
Montadoras
Farmacêutica Utilities Indústria Financeiros e Saúde Turismo
1) TIME = Telecomunicações, Informação, Media & Electrónica

4. Agenda
1 Executive Summary – Business Case
2 Arthur D. Little’s Approach
3 Customer Experience and NW/IT Service Quality Mgmt

5. 1 The Context- Issues to be addressed
Market trends are highlighting network weaknesses that will become critical in the next few
years
Theoretical speed vs.
Data traffic growth
Real speed
Many times the advertised speed is High AUPU to support (5Gb/month
not the real one; most common in 2015e). Data traffic is expected to
HSPA versions provide a speed of grow by 32 times till 2015e
7,2Mb/s vs. a real speed of 1-2
Mb/s
Investments in infrastructure
Increasing client’s attention
and devices
More intense usage Higher quality In the next ten years, communication
requirements!!! providers are poised to invest more
Highest attention to network quality than €0,8 trillion in HS broadband
networks
Increasing network quality related
churn
Limited coverage Innovation and applications
Especially in rural zones 3/4G Communication methods are
coverage is poor changing and smartphones with
their applications are the symbol
Source: Arthur D. Little, Exane BNP Paribas

6. 1 Executive Summary – Business Case
In 2010/2011 the decrease of Quality of Service caused an increase in customer claims with
strong negative impact on churn rate of a leading Mobile Operator
Case study
Improvement of Quality of Service – the experience of a leading Mobile Operator
Improvement Area Matrix Main Triggers
• The swap and modernization of the whole Network
FOCUS AREA
Infrastructure
20%
• The launch of an aggressive commercial offer for Voice
and Data Services that have saturated the capacity of
Data Cost
Data Quality
Voice Cost
Network Infrastructure
CC Effectiveness Billing
HS Availability
Data coverage
10% HS Cost Solution Plan
Voice Quality
Complaint Handling
Impact
Shareholders immediately requested for a definition of a
Self Care
recovery plan to implement and monitor on a periodically
Voice Coverage bases. Main areas of Interventions:
• Network Infrastructure optimization
0% • Review and improvement of E2E technical
50% 100%
troubleshooting process
Satisfaction
• Review and improvement of Customer Claim
Technical Customer Commercial Services & HS management process
Quality Service Offer Portfolio
Source: Arthur D. Little analysis on a Case Study of a leading Mobile Operator

7. Agenda
1 Executive Summary – Business Case
2 Arthur D. Little’s Approach
3 Customer Experience and NW/IT Service Quality Mgmt

8. 2 Arthur D. Little’s Approach
Arthur D. Little proposes an improvement framework according to three maturity levels: 1) fix
the basics, 2) align with customer’s expectations and 3) exceed customer’s expectations
Customer
Experience
How good the service is? How well do they help me?
Expectations
Use KQIs to measure the Quality of E2E Implement NBA solutions to anticipate
segmentation
segmentation
Service customer requests and leverage cross-
Driven by
customer
Driven by
customer
selling potential
Exceed Predictive Model development based
upon CSI-KPIs correlation Sentiment Analysis
Personalized Caring Services
business impacts
business impacts
Driven by major
Tool automation for real-time claim
Driven by major
Claim root causes analysis, classification, troubleshooting to increase FCR
resolving actions
Customer blended management
Align System log analysis to detect issues (integrate all touch points)
Day-by-day fault prioritization & resolution Improve selfcare and App touchpoints
Unified desktop interface for CC
Effective Reporting Standardized incidents reporting and
CB Neutral
solving workflows
CB Neutral
1-to-1 correlation between alarms & faults
Fix the Controlling system for undetected faults
Knowledge Management
Intervention on service priority base
Effective faults resolution
basics Automation tools for less human errors
OSS-accessibility for data retrieval by
CC agents
Network/IT Delivery Service Customer Care
Key: CB: Customer Base , NBA: Next Best Action
Source: Arthur D. Little analysis

9. 2 Arthur D. Little’s Approach
At “fix-the-basics” level technical issues affecting NTW/IT operations are addressed
according to a prioritization matrix and no customer impact is considered yet
Illustrative – refer
to a specifi case
Prioritization Matrix Benefits
# Issues Average benefits measured on
a yearly basis upon our
Quick Wins Mid Term Issues 1 Effective Reporting
experience include:
6 1-to-1 correlation
1 Cell unavailability: - 20/30%
4 2 between alarms &
faults
5 Cell data inaccessibility: -
Impact
Controlling system 30/40%
3
for undetected faults
2 Cell voice inaccessibility:
3
Intervention on
4 - 20/30%
service priority base
Drop rate: - 5/8%
Effective faults
5
resolution CSI: + 5/7%
Second Tier Issues Nice to have
Automation tools for
6
less human errors
Complexity
Source: Arthur D. Little analysis

10. 2 Arthur D. Little’s Approach
At “align” level E2E customer perspective is considered in order to get everything properly
working along the whole workflows and limit major business impact
Illustrative
E2E Quality-assurance approach
Orders input
Monitoring pending orders
or errors in provisioning
2
3 CRM Provisioning Network
Monitoring pending Monitoring
orders or errors in
CRM
1 errors in
Billing
ERP Billing
Major business impacts on customers are limited monitoring
service workflows in an E2E perspective
Crash Program Claims root-cause analysis Day-by-day Operations
IT log analysis (crash program) seeks Claims root-cause analysis is carried Day-by-day operations activities
workflows error along critical connection on in order to identify overall IT defects eliminate/solve current errors limiting
points 1 2 3 that directly impact on customer service impact on customer service
Source: Arthur D. Little analysis

11. 2 Arthur D. Little’s Approach
Arthur D. Little has an extensive expertise in improving Mobile Service Quality and has
developed a model of intervention based on the concept of Quality of Experience

12. 2 Arthur D. Little’s Approach
Project Customer Satisfaction
Customer MNO
Expectation
Expectations are related to:
- MNO positioning
- MNO Brand values
- History of the relationship between
Max Satisfaction = customer and MNO
Min [Expectation - Perceived]
Perceived
Perceived quality is related to:
- Tangible aspects of service performance
(eg. Technical quality and intangible
. quality)
(eg. Communication
Communication)
The Customer Satisfaction must be designed on customer expectations that reflect the
positioning and brand values of Oi

13. 2 Arthur D. Little’s Approach
At “exceed” level Business and Technical data are correlated in a CSI drive framework in
order to predict Customer needs and expextations, also addressing investments effectively
Customer Expectations Predictive Model for Operations
Illustrative
CSI-adjusted Cell Pure-technical Cell
CSI (1-5 range)
Availability KPI Availability KPI
CSI-adjusted thresholds can be calculated for Soglie
CSI 1 a 2,49
Da
Da 2,5 a 2,74 100% 100%
any KPI (coverage, drop calls, surfing speed Da 2,75 a 2,99
Da 3 a 3,24
Da 3,25 a 3,49
99,3%
99,1%
98,5%
and so on) Da 3,5 a 5
97%
98%
97%
96% 96%
From now on, KPIs can let Business
Operations be run with a specific focus on
Customers expectations and satisfaction (90%) (90%)
PREDICTIVE OPERATIONS
Predictive Operations use CSI data to Quality
understand customer expectations and Customer Group
KPIs Actions
Expectations Business Op.
predict possible issues Marketing
Sales
Customer
Care
CSI Customer Behavior Data Retrieving
Source: Arthur D. Little analysis

14. 2 Arthur D. Little’s Approach
Arthur D. Little approach for customer care service quality improvement addresses both
Customer Experience and CC Agents worklife
Improving Customer Experience Improving CC Worklife
Accessibility Answers
Operations Efficiency
and ease of use Effectiveness
Expected Benefits
Deflection to automated / self-service touch points
Average handling time reduction
More value added customer care service
Source: Arthur D. Little analysis

15. 2 Arthur D. Little’s Approach
Incremental benefits are provided while moving upward across the maturity levels of the
proposed improvement framework
Fix the basics Align Exceed
Service
Model
Customer based segmentation
Flat for all customers Driven by business impact
and personalization
Standardized incidents reporting and Tool automation for real-time claim
Implement NBA solutions to anticipate
Actions
solving workflows troubleshooting
customer requests and leverage cross-selling
Knowledge Management Customer blended management (integrate all potential
OSS-accessibility for data retrieval by touch points)
Sentiment Analysis
CC agents Improve selfcare and App touchpoints
Personalized Caring Services
Unified desktop interface for CC
-20%
Benefits
Handling Time
-30%
Deflection rate to
automated touch +30%
points +25%
Source: Arthur D. Little analysis