Ottmar M. Hoehenberger Technical Director D A CH, East-Europe

1. Ottmar M. HoehenbergerTechnical DirectorD A CH, East-Europe Main Title, 60 pt., U/L caseLS=.8 lines The Service Profit Chain with SCP (Service as a strategic philosophy)

2. TREND MICRO is one of the leading global companies for Software and Services in the area of Content Security Management: • Based in Tokio, Japan – founded 1988 in California • Offices, worldwide 23 • Employees, worldwide 2000+, Germany 120 • Revenue 454 Million US$ in 2003 ...who is TREND MICRO ? Page 1

3. Current situation Changes through the IT Service Management “Best practice” - TREND MICRO The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles and results Organizational impact Agenda Page 2

4. Current situation Changes through the IT Service Management “Best practice” - TREND MICRO The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles and results Organizational impact Agenda Page 3

5. Current situation Customer service is in a continuous change process and requires an efficient and flexible Service Management Organizational changes In-Stability Stability Stability time From „Transition Management“ by Fred Nickols Page 4

6. Challenges we experienced ... • Unsatisfied external and internal customers • Not enough or unqualified resources • No productive or efficient HelpDesk system • Qualification of employees, team spirit • No efficient processes, structures, workflows • Missing SLA into back office, sustain, development • No notification, no follow up, no measurement • No responsiveness, re-active support • Missing product information, documentation Page 5

7. Current situation Changes through the IT Service Management “Best practice” - TREND MICRO The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles and results Organizational impact Agenda Page 6

8. Changes through the IT Service Management TrendMicro defined customer service as a strategic philosophy and qualified / quantified the effectiveness of the support operation using the SCP program from „ServiceStrategies“ Page 7

9. Current situation Changes through the IT Service Management “Best practice” - Trend Micro The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles and results Organizational impact Agenda Page 8

10. Revenue, Growth, indurations Employee retention Customer satisfaction Customer loyalty External Service value Internal Service Quality Employee satisfaction ITIL MIO Profitability Employee productivity SCP The Service Profit Chain After James Heskett, from „Putting the Service profit chain to work“ Page 9

11. Current situation Changes through the IT Service Management “Best practice” - TREND MICRO The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles and results Organizational impact Agenda Page 10

12. SCP - ServiceCenterPractice Certification program Six Sigma – Quality Improvement program ISO 900x standards – Quality development program BS15000 – British Standard – Quality assurance ITIL – IT Infrastructure Library - Quality assurance 5 S – Quality development program Quality Circle – Quality assurance Zero defects – Quality and in time assurance Ishikawa method – Quality circle (fishbone) Taguchi method – Quality loss function (QLF) Tools, Processes, Methods Page 11

13. Goal -> Customer satisfaction / loyalty • Customer and performance driven • focus on a total service and support • management perspective and solution • real time quality measurements • Infrastructure and concept driven • focus on IT management • internal service quality BS- Norm 15000 Process Rules DISC-PD0005 ITIL Internal Processes and regulations Page 12

14. Goal -> Customer satisfaction / loyalty • Customer and performance driven • focus on a total service and support • management perspective and solution • real time quality measurements • Infrastructure and concept driven • focus on IT management • internal service quality Page 13

15. Process-orientation alignment, structures Involvement of employees, partner, customer Project definition definition capability levels definition organizational units Budget, costs, ROI Management „buy in“ – (other organizations) Responsibilities, roles Detailed planning, time schedule Tools, Process-Orientation, Methods Page 14

16. ITIL Certification Definition of the capability levels Page 15

17. Level 5 Optimising PA.5.1 Process Change MP.5.1.1 Identify Possible Changes MP.5.1.2 Assess Impact of Proposed ChangesMP.5.1.3 Define Implementation StrategyMP.5.1.4 Implement Apporved ChangesMP.5.1.5 Evaluate Effectiviness PA.5.2 Continuous Improvement MP.5.2.1 Define Goals MP.5.2.2 Analyse Problem SourcesMP.5.2.3 Implement ChangesMP.5.2.4 Validate Effectiviness Process Capability Process attributes Level 4 Predictable PA.4.1 Measurement MP.4.1.1 Identify Goals & Measures MP.4.1.2 Collect Specified MesuresMP.4.1.3 Analyse Performance TrendsMP.4.1.4 Measure Capability PA.4.2 Process Control MP.4.2.1 Identify Measurement Techniques MP.4.2.2 Collect Measures and Identify Relevant ParametersMP.4.2.3 Use Analysis Results to Control Performance Management Practices Level 3 Established PA.3.1 Process Definition MP.3.1.1 Identify Standard Process MP.3.1.2 Implement & Tailor Standard ProcessMP.3.1.3 Gather Process Performance DataMP.3.1.4 Establish Process UnderstandingMP.3.1.5 Refine the Standard Process PA.3.2 Process Ressource MP.3.2.1 Document Roles & Responsibilities MP.3.2.2 Identify Infrastructure RequirementsMP.3.2.3 Provide & Allocate ResourcesMP.3.2.4 Provide Infrastructure Level 2 Managed PA.2.1 Performance Management MP.2.1.1 Identify Objectives MP.2.1.2 Plan Execution MP.2.1.3 Assign ResponsibilitiesMP.2.1.4 Manage Activities PA.2.2 Work Product Management MP.2.2.1 Identify Requirements MP.2.2.2 Manage Documentation, Configuration & ChangeMP.2.2.3 Identify Work Product DependenciesMP.2.2.4 Manage Work Quality Level 1 Performed PA.1.1 Process Performance MP.1.1.1 Identify Input and Output MP.1.1.2 Define the Scope MP.1.1.3 Implement Base Practices Indicators: Management Practices ITIL Certification Page 16

18. Service Management Processes BS 15000-1:2002 Service Delivery Processes Information Security Management Service Level Management Capacity Management Service Reporting Budgeting & Accounting for IT Services Service Continuity & Availability Management Control Processes Configuration Management Change Management Release Processes Supplier Processes Resolution Processes Business Relationship Management Supplier Management Release Management Incident Management Problem Management Page 17

19. Current situation Changes through the IT Service Management “Best practice” from TREND MICRO The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles and results Organizational impact Agenda Page 18

20. Driving force and requirements Number and quality of employees (MIO-approach) Service concept - process guided by ITIL Flexibility Cost Technology Quality Speed Single point of contact -SPOC-call entry management „Call owner“ (lifecycle ownership) Response- and Escalation-Management, call tracking • Quality assessment /quality assurance Information and communication management Page 19

21. Current situation Changes through the IT Service Management “Best practice” - TREND MICRO The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles and results Organizational impact Agenda Page 20

22. Process-oriented working relationship Customer User SLA Service Desk Service Level Management Incident Management SolutionDB KnowledgeDB CMDB Change Information Problem Management Change Management Configuration Management Customer Relationship Management Release Management Page 21

23. Changes and growth Active communication skills Escalation- and relationship management Salestraining for service people Customer-orientation for professionals State management Complaints are opportunities Process and project management Employee qualification Page 22

24. Employee qualification Page 23

25. Information-Management Fast and appropriate access for all employees to all necessary information and data Page 24

26. Balanced Scorecard A short cutting from the BS Page 25

27. Customer and employee satisfaction Intensive customer- and employee satisfaction measurements with appropriate improvement processes afterwards Page 26

28. Current situation Changes through the IT Service Management “Best practice” - TREND MICRO The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles, results Organizational impact Agenda Page 27

29. Challenges, hurdles, results • Support from management • Politic – it is no project which solves all the problems • of other departments • Time and costs • Organization (status, existing structures, etc.) • Knowledge and qualification of employees • Coordination of all internal and external interfaces Page 28

30. Achievements... • HelpDesk managed organization • Customer care and escalation service • Guaranteed response time • Qualified resources (product specialists min. level 3) • Pro-active service (newsletter, call out days, etc.) • Information and communication management • Active relationship management (service marketing) • Automated certified processes (ITIL) • Meaureable service quality • Cost controll Page 29

31. Current situation Changes through the IT Service Management “Best practice” - TREND MICRO The service profit chain Tools, process-orientation, methods Driving force and requirements Qualification and skills of the employees Challenges, hurdles and results Organizational impact Agenda Page 30

32. What is the benefit for the organization... • Nationwide service and support recognition • Competitive advantages • Additional sales/revenue and customer binding • Continuous service improvement • Benchmark data provides a vehicle for comparative study • Industry benchmarking, statistics, tools • Comprehensive audit report, knowledge sharing • Trophy & certificate, acknowledgement • Press releases, listing as certified in quarterly • newsletter and on web sites, etc. Page 31

33. Service quality assurance Enable partner effectiveness Ensure partner and customer productivity Transparent structures and processes Measurable results „Best practice“ Continuous improvement Cost control Benefit for our customers Page 32

34. The service profit chain with SCP Thanks and god bless you... Ottmar M. Hoehenberger TREND MICRO Deutschland GmbH Tel.: +49-89-37479-601 Mobil: +49-179-4786756 E-Mail: Ottmar_Hoehenberger@trendmicro.de Page 33

35. MIO – Knowledge Management for the HelpDesk by Yakup Tan ISBN 372812799X (2003) “Putting the Service profit chain to work” by James Heskett (1994 – Harvard Business Review) ITIL “IT Service Management” (itSMF 2001) Ivor Macfarlane and Colin Rudd ISBN 0-9524706-2-4 SSPA research “Customer Retention” 2003 S-Business “Reinventing the Service Organization” by James Alexander ISBN 1-59079-054-5 Operation Management by Ray Wild ISBN 0-8264-4927-1 Transition Management by Fred Nickols Good to know.... Page 34

36. About the Support Center Practices (SCP) Certification Program: • The SCP Certification program provides the world-class standard for technology support organizations to: • Increase customer satisfaction and loyalty through improvements in operational effectiveness and staff productivity • Implement a continuous improvement program that enables them to provide world-class service to their customers • Benchmark their support operations against industry best • www.servicestrategies.com SCP - Delivering World Class Support Page 35

37. Certification of IT Service Management Processes (Scope: Incident Mgt, Business Relationship Mgt.) obtain SPICE Capability Level 4 ITIL Certification Page 36

38. IT Service Management In July 2003, the Trend Micro Germany Competence Centre won the Help Desk Institute Award for "Best internal service organisation in the German speaking region" at Help Desk World 2003 in Bremen. Trend Micro was selected over 29 competitors beating well-known brands. The Trend Micro Competence Centre achieved excellent marks in several categories, but most notably, wescored 94 percent in the "Help Desk Management and Leadership" and "Service and Customer Orientation„categories. The jury praised our innovative people management concepts and the active participation of all members of the Trend Micro Competence Centre The  Help  Desk Institute.V.  is  an  association  created  to  promote  service culture within enterprises. The annual "Service Globe" awards external and  internal service  organizations in the German- speakingregion. The  judging  process is very intense, and involves visits to the competing  organizations  from  an independent  chairman  of  the  board. The chairman conducts  various interviews on many different levels to get to know the processes and strategies. Competitors are appraised according to a standard review scheme, based on the experience of allworldwide Help - Desk institutes.  The winner is thecompany which scores the highest marks. The award is a big achievement for the team and anaffirmation for our process- oriented concept, and demonstrates Trend Micro's customer-focused. Page 37