Günter Dahm | Director Telco Solutions | Microsoft EMEA

1. Günter Dahm | Director Telco Solutions | Microsoft EMEA Josmar Tuszik | Solution Sales Specialist | Microsoft Deutschland GmbH January 2006 Munich, Germany

2. Telco Business Trends • Cost Reduction • Price Erosion • Wireline Churn • Mobile Saturation • fixed-Mobile Substitution • Fixed-Mobile Convergence – Hybrid Offerings • VoIP Offerings – New Service Providers • Complete Replacement of Circuit Switched Networks by IP till 2015 • Highly Competitive / Low Margin Markets: • The Critical Essentials here are: • Time2Market • Sales Execution / Winning Customers • Service &Brand Differentiation • Customer Experience & Customer Care • Customer Retention & Churn Reduction It‘s about managing increasing complexity and adapting to change!

3. The Complex Challenge for Customer Care hybrid convergence services and „pick&pack“ offerings increase the complex challenge of customer care • T-Mobile Web&Walk • BT Fusion (convergence handy: wireline @ home, Vodafone, WLAN, Bluetooth ==> automatic search for best & cheapest connection) • Freenet ip1 (VoIP phone @ home and mobile phone) • Sipgate F1000 (mobile internet phone on WLAN) • Skype RTX (mobile VoIP home phone)

4. O2 Surf@Home – fixed/mobile substitution

5. Avoid White Elephants! The logical answer sounds like massive investments into further complexity • New/additional billing systems/capabilities • Re-vamping of CRM systems • EAI • Multi-Channel Contact Centers • Portals (internal/external), Content Management • Business Process Management / Workflow Management • Customer Knowledge Management Systems • Implement a backend SOA • … • But does that really help me to manage the increasing complexity and adapting to continuous change? • What is really the impact of these investments to my business? • Does that really make a difference? • What is the risk to get it up & running?

6. Lessons from retailing: What consumers expect? 1. Convenience 2. To be treated as individuals 3. Reasonable prices & good quality (4. Sometimes an affordable luxury)

7. Retailing example: New MVNOs with strong brand and customer loyalty

8. In „high-speed“ competitive environments you better start moving fast!

9. How to become a category killer in Customer Care ?

10. Part II: What is that mysterious enabling technology? CCF is about competitive advantage by providing a cool and consistent customer experience for all customer touch points.

11. CCF opportunities for competitive advantage CCF A new integration approach for managing the complextiy of customer care backend and multi-channel information integration. The only technology that combines all existing integration approaches using „Smart Client“ technology being designed for adapting to continuous change. CCF Automates the delivery of customer information across multi-channel environments, resulting in a vastly improved overall customer service experience.

12. CCF cost reduction and new revenue generation Revenue Costs + EUR x Target Revenue Higher ratio of successfully closed contacts Churn rate Product bundling & Cross -Selling + EUR x Additional new contacts + EUR x Current revenue + EUR x + EUR x - EUR x - EUR x - EUR x Target Costs IT OPEX & CAPEX reduction Reduction in input errors - EUR x Reduced training costs Current costs Decreased call handling costs - EUR x

13. 3-step approach to proof • Vision Scope Workshop (5 days) • Status Quo roles in the call center / customer care • Status Quo use cases for the roles • Get the customer to define the vision for their customer care operations and write it down • Future use cases • Target architecture • Risk matrix • CFO approach (5-10 days) • Interviews • Data collection • Assumptions and data validation • NPV calculation • PoV / PoI (Proof of Value / Proof of Impact) • Incl PoC

14. 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 The impact of CCF on KPIs Target zones Examples Financial Impact Low Impact High Impact Churn reduction • Best channel utilization with regards to churn risks • Customer intimacy (360° view) Cost reduction per customer • Using the best channels for customer interactions • Removing redundant tasks R&D cost reductions • Developing new products through better customer knowledge • Launching new products with low IT investments Pricing improvement • Leveraging customers’ portfolio for each incoming channel Customer care cost reduction • Enhancing customer satisfaction Revenue increase per customer • Tracking customer purchase lifecycle through multi-channel coordination • Leveraging incoming channels to roll-out new sales campaigns New customer acquisitions • Leveraging best channels for marketing campaigns • Bringing customer knowledge and campaigns to any available channels

15. Cum NPV EUR Mio: 6.8 N/A Payback (months): 8 6-12 IRR (%): 231 0-500 ROI (%): 16-1.000 151 Deliver strong additional cash flows due to an increase in productivity and upselling potential (ex.) Cumulative NPV for a medium-sized mobile operator Key financial indicators Example Range* Mio Euros 8 End of business case period 6 Break-even 4 2 0 Years 0.5 1.0 1.5 2.0 2.5 Peak funding -2 *for successful projects, otherwise negative values are possible too

17. Solution Overview CCF is a flexible and modular solution framework to accelerate the development, integration, and roll-out of customer care • CCF displays a unified view of customer information (360°) • User-friendly and customizable interface • CCF seamlessly integrates with underlying business applications • No changes to existing systems • Web services-based service-oriented architecture (SOA) • CCF solutions are very competitive on price • Windows – total cost of ownership (TCO) • .NET – speed to market • Extensible Markup Language (XML) Web services • CCF provides self-service portal framework • Gives the customer options for obtaining service using mechanisms such as e-mail or smart devices CCF provides real-time synchronization between self-service solutions (portals, speech/interactive voice response [IVR]) and contact centers by providing a complete vision and unified architecture for all customer care channels.

18. Solution ReviewCCS Solution Overview What is Microsoft Customer Care Framework? • Client and server framework software • Documentation and white papers • Architectural white paper • Design details • Developer guide • Pilot deployment guide • Services experiences

19. Solution Goals • Dynamically share customer information among multiple LOB applications • Provide a single user interface • Reduce training costs • Reduce customer wait times • Reduce requirements to transfer calls • Expand customer care options • “One-touch” installation and transparent updates from a server • Reduce support cost for updating agent applications

20. Architecture Overview • Client Components • Agent desktop module • CTI module • RTC module • AIF module • Middle-Tier Components • Microsoft Windows Server™ 2003 • SQL Server • Active Directory®directory services • BizTalk Server • Microsoft Host Integration Server • Microsoft Content Management Server • Microsoft Speech Server • Microsoft Office

21. CCF Self-service Portal Framework • Maintaining user account registration, authentication, and authorization • Presenting user account and service profile information • Generating targeted alerts and promotional information based on profile • Providing access to billing information • Offering service order, trouble-ticket generation, and status checking

22. Web Services & Offline/Online support Device Adaptability Heavy Footprint Broad Reach Tough to Deploy Network Dependency Rich User Experience Developer Productivity Poor User Experience Easy Change Management DLL Hell Complex To Develop Ease of Deployment Responsive Smart Client Technologie

23. Component Overview CCF Agent Desktop RTC Integration RTC Integration Call Management (CTI integration) Context Management Active customer sessions with navigation tracking Existing Applications Integration Workflow Microsoft Confidential

24. Third-Party Telephony API (TAPI) Implementation ConfigurationService Third-Party Telephony Service API (TSAPI) Implementation TSAPI TAPI Other Hosted Application 2 Third-Party Telephony Implementation Hosted Application 1 LOB Application 1 LOB Application 2 LOB Application 3 LOB Application 4 Component Overview CCF Middle-Tier Components CTI Abstraction Layer Application Integration Framework (AIF) Context and Application Integration Services Application Host • Web-based • TN 3270 • X.11 / motif • ActiveX and legacy Windows Applications • .NET Framework (WinForm) Applications • Citrix Applications • Others Real Time Communication (RTC) and Skills-Based Routing for RTC Active Directory and User Profile SOA-Based CCF Middle-Tier Data Abstraction and Caching Layer CCF Core Component or Reference Implementation Provided CCF Custom Component External Component Web Services Microsoft Confidential

25. Features and Benefits (1 of 2) • Comprehensive story building on desktop, server, and tools • Leadership in XML Web services • Acceptance of Microsoft desktop and UI leadership • Integrated innovation • Competitive pricing (Windows TCO) and speed to market (.NET) • Microsoft platform and XML Web services result in faster time to market and less expensive customer solutions • Complete vision and unified architecture for all customer care channels • Agents, portals, integration capability, and so on • Lower risk for customers • No “rip and replace” reliance on Microsoft

26. Features and Benefits (2 of 2) • Microsoft Active Directory directory service • Integrated security — no need for separate logon • Hosted applications assigned to Active Directory groups • Integrated security to Web services tier • Windows XP shell • Optional replacement of Microsoft Internet Explorer • .NET Framework • Easier to deploy and maintain • .NET zero/transparent deployment • Configuration information accessed through Web services • Hosted application components and scripts centrally stored • Collaboration • Instant messaging • Call control features and address book • Access to external applications

27. Increased Efficiency = Decrease Costs Customers prefer choice of channel By offering multiple channels beyond in-person and telephone, companies can address customer needs less expensively Cost of customer channels/per customer: In-person = $ 100 Phone = $ 50 Email = $ 5 Chat = $ .50 Web self-service = $ .05 Enhanced Revenues (Profits) The time savings on a call can be used to create a targeted sales opportunity A 10 percent increase in up-sells for a 500 agent center = a 20 percent increase in profits When customers call with questions, they are an easy target for sales Lower Costs If a contact center can reduce average call duration by even one second, that would create a savings A contact center with 35,000 agents reducing the average call duration by one second, would create a savings equivalent to $1 million annually One second = $1 million Proof Points and Evidence • Speed to Market • Sample project to roll CCF out to 19 customer service centers • Eight-week proof of concept • Eight-week usability study • Five-month implementation • Three-month rollout

28. Return OnPeople Return OnRelationships Return OnProcess • Unlock data for better support and resolution • Drive productivity • Enable and empower • Build on existing skills, familiarity • Intrinsic integration, open standards • Faster time and lower cost to benefit • Brokered .NET services • Reinvigorate existing systems, processes • Satisfied Customers willreduce Churn • Respond quickly and well  First Call Resolution • Consistent customer treatment across all channels Return On IT Infrastructure Client Services Server • Flexible interoperability • Lower total cost of ownership • Support heterogeneous environment • Market leading manageability, performance, integrity Business Value of CCF

29. CCF Customers

30. CCF representative results • CCF customer quotes: • “20% reduction on Average Call Handling times” • “10% increase in upsell & crosssell opportunities” • “10% cost per call reduction by steamlining order process” • “Up to $10M/year reduction on hardware server costs (migration of 100 unix servers)” • “45% decreased training costs for CSRs” • “CSR retention improved from 60% to almost 100%” • “20% faster delivery of customer facing functionality in client’s call center”

31. Dell: Integrated Dell Desktop Solution CustomerBackground • Decrease Costs – Improve call centre efficiency by driving down call time. • Improve Customer Satisfaction – Provide reps with integrated customer data. • 8,000 telephone sales agents • Internal and remote call centers • Each agent uses 17 disparate applications (out of 40) • - Green Screen 3270 • - Web Applications • - Desktop Applications • - Telephony Integration Components • Browser • Migration to Windows Forms • .NET Service Oriented Architecture • Provides access to data and applications • used to serve customers. • Smart client • Complements SOA to deliver new • Integrated Dell Desktop sales tool. Results/Benefits • Benefits • . +40% margin, 16x expected ROI • -10% call duration, -45% training • . Integrated view of the customer through Sales, CRM, Tech Support Tools. • . Streamline order process.

32. Dell: Integrated Dell Desktop

33. Integrated Customer Desktop

34. Integrated Dell Desktop

36. CSR Dashboard Team Logo Dashboard Tabs (Dailyperformance,Quality,etc...) Real-Time Operational Data Dashboard Messenger (Displays operational messages and notes) Mood Chocies Unread Messages

37. Team Leader Dashboard Team Leader Dashboard Tabs Real-Time Operational data by service or segment Team Mood and Dashboard Usage Statistics Team member details, statistic,moods and Dashboard connection status

38. Customer Care Framework • www.microsoft.com/ccf • www.microsoft.com/germany/telmed Josmar Tuszik | JoSmart@microsoft.com |+49 2131 708 221

40. © 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.