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Kultur Dokumente
Contents
4. Introduction to eTOM.………………………………………………….....4
5. Recommendations………………………………………………………….24
6. Conclusion…………………………………………………………………. 27
7. References ………………………………………………………………….28
Knowledge Management MGT503 Page 2 of 28 10/16/2010
CRM is a business strategy to acquire, grow and retain profitable customer relationships,
with the goal of creating a sustainable competitive advantage. Product/price-based
differentiation is waning because of four broad trends: maturing markets, global trade,
efficient manufacturing and the Internet.
Now CRM is emerging as a critical strategy simply because relationships are coming to
the forefront of the competitive battleground. CRM should mean creating mutual wins for
customers and all the company stakeholders, including employees and business partners.
It’s just common sense. Would you willingly continue to do business with a company if
you didn’t feel you were a “winner” in the relationship?
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Ericsson began in the year 1876, in a repair workshop for telegraph instruments in
downtown Stockholm. 30-year-old mechanic Lars Magnus Ericsson laid the foundation
for one of the world’s leading telecommunication companies with his former work
colleague Carl Johan Andersson. It was, coincidentally, the same year that Alexander
Graham Bell filed his patent application for a telephone in the United States. Ericsson
starts off by repairing foreign-made telephones but soon starts making and selling his
own telephones, then a few years later forms an agreement to supply telephones and
switchboards to Sweden's first telecom operating company, SAT (Stockholms Allmänna
Telefonaktiebolag).
Today, over 1,000 networks in more than 175 countries utilize Ericsson network
equipment and 40 percent of all mobile calls are made through Ericsson systems.
Ericsson is one of the few companies worldwide that can offer end-to-end solutions
for all major mobile communication standards. Sony Ericsson Mobile
Communications joint venture offer a range of mobile devices, including those
supporting multimedia applications and other services allowing richer
communication. Ericsson invests heavily in R&D and actively promotes open
standards and systems. Ericsson has one of the industry's most comprehensive
intellectual property portfolio containing over 23,000 patents.
• Networks
Ericsson is the world’s principal supplier of mobile networks. Ericsson’s industry-leading
network solutions include radio access network, (radio base stations for GSM, WCDMA,
HSPA, LTE) core network solutions, (like soft switch, IP infrastructure, IMS, media
gateways), transport solutions (like microwave radio and optical fiber solutions) and
fixed access solutions for copper and fibre.
Networks account for about two-thirds of Ericsson’s net sales.
Knowledge Management MGT503 Page 4 of 28 10/16/2010
Sales of professional services represent more than 22 percent of net sales and are reported
separately.
• Multimedia
The multimedia organization was established January 1, 2007. It includes service layer
products, revenue management systems, enterprise solutions and mobile platforms.
• Mobile phones
Sony Ericsson delivers leading-edge mobile phones and other mobile communication
devices. The 50/50 joint venture combines the mobile communications expertise of
Ericsson with the consumer electronics and content expertise of SONY Corporation, and
forms an essential part of our end-to-end capability for mobile multimedia services.
eTOM is a business process framework for categorizing all the business activities that a
service provider will use. These activities can be combined in many different ways to
implement end-to-end business processes that deliver value for the customer and the
service provider.
eTOM is not a business model. It does not address strategic issues or questions of who a
service provider’s target customers should be, what market segments should the service
provider serve, what are the service provider’s vision, mission, etc.
1. Accenture
2. Agilent Technologies
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Mission of tmforum:
To help service providers and network operators automate their business
processes in a cost- and time-effective way.
Provide guidance on the shape of business processes.
Agreeing on information that needs to flow from one process activity to another.
Identifying a realistic systems environment to support the interconnection of
operational support systems.
Enabling the development of a market and real products for integrating and
automating telecom operations processes.
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1. Churn Management
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Churn remains one of the most compelling challenges in the communication industry,
and by all indications the problem is likely to get worse before it improves. With
providers annually losing as many as one-third of their customers, strategies to acquire
and retain customers have become critical.
Churn management should identify valuable customers who are likely to churn. To
conduct such analyses, the equipment vendors need a model to identify and classify
customers with low, medium or high churn risk.
Every vendor and service provider realizes that the key to Loyalty lies in how it uses its
IT infrastructure and business processes as an enabler for customer loyalty. This has been
Knowledge Management MGT503 Page 9 of 28 10/16/2010
There are many tools which do analysis on customer Retention and Loyalty. One of the
those powerful tool is Kano Model.
The Kano Model is a powerful tool that enables vendors to identify the few critical
customer needs that have the highest impact. The model segments these needs according
to:
Must be's: Must-be's are those needs and wants that have to be met for a customer
to even begin to have a positive relationship with the enterprise
One-dimensional: One-dimensional needs are the needs a customer will discuss
and are typified by a "win-lose" negotiation
Delighters: Delighters are when wants or needs are met when a customer is not
expecting it
This is shown in the illustrative diagram below.
Knowledge Management MGT503 Page 10 of 28 10/16/2010
Below mentioned points are important to link their Loyalty Program to the overall CRM
strategy.
Leadership commitment is critical: Loyalty cannot exist in one department. It must have a
direction with goals and processes that permeate throughout the business so that it can be
executed at all points of customer interaction.
Loyalty Program must strengthen the Core Value Proposition: Extend loyalty strategy from
core value. Kano Model™ provides important tool to build a foundation of relevant products /
service offerings and essential customer satisfaction. Remember, that loyalty can only come after
customer satisfaction
Vendors & CSPs must use the Loyalty Hierarchy: It is important to progressively move in the
direction of unifying customer information, differentiating customer experience and innovating
new products / services based on this understanding. To give example British Telecom sends bills
in bigger fontvsizes for senior citizens and in Braille for the visually challenged.
Finally, change management is critical for any such program. Hence there is the need to
educate, train, empower align employees with this initiative. For, while data models and systems
provide the tools for building loyalty; implementing that is in the hands of the employees, more
so those who actually interface with the customers.
Segmentation can be driven by the balance between “cost to monitor” and your business
interest. Customer Segmentation is being followed in Ericsson. Ericsson has segmented
customers as per the business interest into two categories:-
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For Global Customers, premium services are offered. Proactive detection and
troubleshooting is being offered to these customers. And Special Quality of Service is
maintained for them. Below is the list of Global Customers of Ericsson:
AMTEL
AT & T
Deutsche Telekom
France Telecom
Hutchison
MTN
Telecom Italia
Telefónica
Telenor
Vodafone
Competitive differentiation for advanced and converged services will rely on more than
traditional service performance targets. “Roll-ups” of metrics related to networks,
applications, and IT infrastructure are no longer enough for matching service quality to
customer expectations. To truly “manage” the customer experience, service providers
have to build end-to-end views of not only the customer and services consumed, but also
of the preferences, behaviors, personas and social network affiliations that define the
customer.
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To address both the end-to-end view of the customer lifecycle and of the value chain, TM
Forum’s Managing the Customer Experience Program takes a phased approach to:
Developing a single framework for measuring and effectively managing service
quality;
Defining key service quality metrics at each point along the service delivery
network;
Identifying service quality issues and the necessary accounting and rebating
information; usage information, and problem resolution information;
Defining management capabilities to support each step in the service delivery
network;
Specifying appropriate interfaces to enable the interchange of such information
electronically between the various providers in a service value network.
The TM Forum end to end Customer Experience Framework model for Quality of
Experience (QoE) is based on the Kilkki Quality of Experience Model.
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The notion is that Quality of Experience (QoE) is a general concept around human
behavior and feelings. It is influenced by marketing from vendors and providers, both
before devices and services are provided, and during service operation. Marketing can
involve simple product feature adjustments right the way through to the development of
completely innovative means for meeting customer needs.
The TM Forum Service Level Agreement Management Handbook extends the QoS
concepts to Key Quality Indicators (KQI) for the Services, and Key Performance
Indicators (KPI) for the network and infrastructure.
The essential requirement is to create metrics for each of these categories which have
some common properties and structure.
In the end to end Customer Experience Framework the following aspects are separated:
• The Quality of Experience metrics which are subjective and are influenced by
relationships amongst Customer, User and Group roles. The Benchmarking
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Service Level Agreements (SLAs) define expectations among two or more parties
regarding service quality, priorities, and responsibilities. While SLAs have traditionally
been a contract between a Service Provider and an Enterprise customer, the expanding
value chain for new-generation services has made SLAs important for a myriad of
partnerships, including:
• Service Provider to End User;
• Service Provider to Vendor;
• Service Provider to Enterprise (e.g., a large business or an MVNO);
• Enterprise to End User;
• Service Provider to Enterprise (i.e., an MVNO);
• Network Provider to Service Provider (e.g., i.e., a network access provider)
• Vendor to Network Provider, Service Provider, or Enterprise;
• Content Provider to Content Aggregator or Advertiser.
To compete successfully, companies must proactively manage the quality of their
services. Since provisioning of those services is dependent on multiple partners,
management of partner services SLAs become critical for success. SLAs are used to
define and manage expectations among partners for performance, customer care, billing,
service provisioning, and other critical business areas.
SLA Management can also be used to assess predefined penalties when SLA parameters,
such as failure to meet performance, timeline, or cost requirements, are not met. For
example, if network downtime exceeds one hour, the penalty is a 10 percent rebate of
service fees.
The Sales and Marketing process is supported by the Core Three Concept, and based on
Value Based Selling, VBS.
To proactively bring sales opportunities into profitable deals with the customer.
Our business solution shall be positioned as the best choice for the customer as early as
possible in the customer buying process, before the customer has made the specification.
Knowledge Management MGT503 Page 19 of 28 10/16/2010
Customer Satisfaction
Ericsson Planning
Supply
Marketing
communication
Product Management
Provisioning
Sales Decision Points form the top of the hierarchy. They are built on the input from the
Core Three finalization Reviews. The Core Three Team members meet and report to the
person who has the decision authority according to normal rules.
Decision Points:
Core Three Reviews serve to secure the progress according to decisions taken and to
provide the firm basis for coming sales decisions. The Core Three team members meet, if
applicable together with other participants in the project and specialists. Filled out
checklist is the basic input for the meetings.
There are three occasions for reviews: initiation, progress and finalizing. The Reviews
shall be short and to the point and cover goals, progress and quality. The same agenda
should be used for all three review occasions. Information will be gradually built up, fine-
tuned and concrete. The Core Three Team decides when a review should be made in
accordance with the criteria of the Sales Decision Points. During Preparation of Proposal
and Negotiation all three review occasions shall be covered. There is possibly a need in
large projects for more than one progress review. There is one standard agenda used for
all sub processes.
Checklists
The basis for the everyday work is the checklists. They serve two purposes: to be a
support for the daily job and to be input for the Core Three Reviews. The relevant
checklists are indicated under each Sales Decision Point.
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This Funnel and the cloud model looks at support from the customer’s point of view.
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Why KCS?
There are both quantifiable and qualitative benefits to adopting KCS
Consortium members who have implemented KCS in both their internal and external
support organizations are reporting dramatic improvements in incident resolution and
training times, in customer satisfaction, and in analyst job satisfaction. As a result, they
are realizing substantial savings in operating costs at the same time they are seeing
improvements in service levels. They find they can:
People choose to adopt KCS because they see a need to scale and extend their support
capabilities, but do not have endless staffing or budget resources.
KCS breaks through the limitations of current support strategies and enables support
organizations to deliver greater value with more efficiency. The secret? Capitalizing on
what they already have - knowledge. This increased value is created and managed by
capturing the collective experience of solving problems and answering questions, making
it reusable, and evolving it to reflect organizational-level knowledge.
KCS takes teamwork to a new level. The organization must shift to a perspective that
sees knowledge as an asset owned and maintained by the team, not an individual or a
small group of dedicated content creators. The focus of the team is to capture and
improve the collective knowledge - not only to solve individual customer issues, but also
to improve organizational learning.
5.0 Recommendations
1. Understand the big picture–We believe that virtually every point of touch between
customers and their service providers or partners contributes to customer perception,
satisfaction, loyalty, and ultimately to the profitability of the service provider. Service
providers must develop and manage an enterprise-wide vision of all aspects of customer
interaction if they are to deliver an appropriate experience to customers. An overall,
enterprise-wide view is most certainly how the customer “experiences” a provider, even
if that customer interacts with individual departments within the CSP and vendor
organization. In final analysis, that is the more important view.
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2. One size does not fit all–While all service providers and vendors perform similar
functions, their customer experience strategies, priorities and programs may differ
significantly.
Developing a customer experience (CE) strategy does not require the CSP be “world
class” at everything. For many service providers, that would serve only to overwhelm
them from the start, ensuring failure. Rather, the CSP must determine what is important
to its target customers in its serving domain, and to prioritize those things that will
differentiate it to those customers.
A service provider operating in a single geography may choose to make certain aspects of
its CE strategy “good enough” (i.e. competitive) for particular situations, but not
necessarily the best possible solution. The concept here is that the CE strategy must
be tailored and affordable. After all, as we said at the outset, this is not an exercise in
altruism, but rather a way to enhance competitiveness and profitability.
4. Top management support–“don't try this without it”–Given the scope, cross-
functional nature and complexity of planning and executing a CE strategy, top
management sponsorship and approval is essential. Customer experience improvement,
after all, is a business strategy, and not just an opportunity to implement the latest
technology widgets to render the status quo business process better, cheaper and faster.
Not only must top management set the vision, it must determine affordability, allocate
appropriate resources, ensure cross-functional coordination, and remove some of the
barriers that will inevitably pop up during the course of implementation.
8. Leverage the interaction channels–With the rise of the Internet, it is clear that some
customers prefer on-line self service, email or chat to speaking with a CSR or an
interactive voice response (IVR) system–at least for some tasks. As Web 2.0
applications proliferate, certain customer segments are gravitating to new forms of
communication, such as instant messaging and social networking.
Service providers need to recognize that these channels are increasing in
importance to customers; they must evolve their inbound and outbound customer
communications to suit the customers. Clearly, all new functionality needs to be designed
to be “channel agile.”
9. Design your metrics for success–The most successful service providers in our
discussions had an adaptive metrics strategy. Early on, to gain momentum and
establish credibility, the primary measurements were based upon delivery performance
(i.e. did we complete to acceptance on time?) Later though, they shifted to business
effectiveness (i.e. was the program deliverable achieving the expected return?) The
lesson here is to plan your success measurements carefully. This may seem like a lot of
recommendations, but it is really the minimum set from our perspective, given the
scope and complexity of customer experience. We could go on and on with domain-
specific recommendations, but those would likely vary by service provider and strategy.
What is important to remember is that the payback for companies that have made the
commitment and executed has been worthwhile, even though the overall effort may
seem daunting. We believe that service providers who can differentiate themselves with a
superior overall customer experience will be winners not only in their traditional service
markets, but also as enablers of the digital value chain.
11. Take advantage of existing frameworks–Given the breadth and complexity of the
problem, assistance with best practices, data management and domain frameworks is very
important. TM Forum, the world’s leading industry association focused on improving
business effectiveness for service providers, has a number of frameworks and
collaboration programs designed to help service providers achieve their transformation
goals –most notably its Information Framework (SID), the Applications Framework
(TAM) and Business Process Framework (eTOM).
6.0 Conclusion
Successful CRM is about competing in the relationship dimension—not as an alternative
to having a competitive product or reasonable price—but as a differentiator. If your
competitors are doing the same thing you are (as they generally are), product and price
won’t give you a long-term, sustainable competitive advantage. But if you can get an
edge based on how customers feel about your company, it’s a much stickier—sustainable
—relationship over the long haul.
The essence is that you can dramatically improve your chances of getting an ROI from
your CRM initiative by following three simple steps: 1) Understand the value your customer
wants, 2) deliver that value profitably and 3) repeat. Simplistic? Perhaps. But that doesn’t
mean it’s easy. Most companies have entrenched ways of doing things, focusing on products,
rather than customers. In simple words it can expressed as follows
“If Ericsson would have loved their customers more than the radio waves, there would
have been no problems”.
Said another way, you can succeed with CRM by being SMART: Define a customer-
centric Strategy; use appropriate Metrics ; ensure your organization is Aligned with
your objectives; Redesign work processes as needed; and use appropriate Technology
tools as enablers.
But it all starts by putting your customers first and creating a better relationship with
them than your competitors offer.
In Customers Are People: The Human Touch, author Jon McKean states that in competitive
markets, where customers have a choice between similar products and pricing, “Seventy
percent of customer decision-making is based on how customers are treated.”
Does relationship-based differentiation really work? Tesco thinks so. With humble
beginnings as yet another low-cost grocery retailer in the U.K. market, Tesco has grown into
the market leader in a few short years by using data-driven customer insight to manage
millions of relationships, creating a loyal bond. If you investigate the success of IBM in
computer technology, Nordstrom in retail clothing, HSBC in banking, Ritz Carlton in hotels
Knowledge Management MGT503 Page 28 of 28 10/16/2010
References