UBUSO “The Face of Eskom”

1. UBUSO“The Face of Eskom” A Case Study on Eskom’s Customer Relationship Management Solution By: Hugh McGibbon (Divisional Customer Service Manager) Kevin von Berg (Senior Consultant (Customer Service)) (Presenter) Distribution Division, Eskom Holdings Ltd 18 May 2005

2. Topics • Background • The aim of CRM (in a regulated Utility with a Captive market) • Selection of an appropriate CRM solution for a utility company • Essential foundations as a base for a CRM solution • Implementation project - lessons learned • Improvement in performance • Benefits tracking • Future vision

3. Eskom’s Customer Service environment VIRTUAL FRONT OFFICE VIRTUAL CC 7 x Contact Centre Front Office Inbound Telephone, SMS, Email, Fax, Mail Service Agents Contact Centre Campaign Mgt Outbound Telephone, SMS Service Agents Self Service Inbound IVR, CSOnLine Automated EAT Face to face, Telephone, Email, Fax, Mail Service Agents 99x Walk in Centres Inbound Face to Face Service Agents Service Reps Inbound Face to Face Service Reps Customer Execs Inbound Face to Face Customer Execs Wires Business VIRTUAL BACK OFFICE Hundreds of locations 3 x Account Operations Back Office Handling of routed Work Items CRM Workflow Admin / Processing / Service Resolution Risk Management Back Office Handling of routed Work Items CRM Workflow Admin / Processing / Service Resolution Workflow Management / System Admin Contact Centre Back Office Handling of routed Work Items CRM Workflow Admin / Processing CS Area Back Office Handling of routed Work Items CRM Workflow Admin / Processing Internal Workflow 65% Electricity Supply Problems 20% Accounts, Payments & Meters 5% Applications 5% Credit Management 4 million Customer Contacts a year (270000 per month), 7 languages, 24x365 Over 3,7M Customers

4. The aim of CRM in EskomTo Reduce Cost through efficiency, while improving Customer Service Electricity Supply Problems Accounts, Payments & Meters Applications Credit Management Inbound customer contact (Service Request) CASE MANAGEMENT (Case closed immediately) Aim is 75% First Contact Resolution (Immediate resolution) Multiple outbound contacts (as required) CASE MANAGEMENT (Tracking, & Escalation (if necessary)) Aim is 95% One Contact Resolution (Only 1 inbound contact from the customer) EXCEPTIONS (Overdue or repeat customer contact) Escalated to Customer Accountable AND Task Accountable people) Resolved (with Escalation) (Aim is Zero never resolved)

5. Selection of a CRM solution Pure Framework Solution (as opposed to a Package or Hybrid Solution) • to match Eskom’s processes exactly • to fit in with our CIS Billing package Flexibility • REDs • Scalable • Able to integrate with all billing and engineering systems • All major electronic interfaces (telephone, e-mail, SMS and the Internet) Speed of Implementation Maximise Existing Investments • Existing Value Chains and business processes • Compatibility with existing IT investments Low Business Impact • Training • No disruption on switch over • Easy to use

6. Essential foundations to implement CRMAchieving a Win-Win balance between Customer Expectations & Cost STEP 1 - VISION (1995) • Geographic accountability to a person • All interactions possible electronically • Move to remote contact • Single virtual Contact Centre • Full contact history • No cash handled by Eskom • Process focus • Customer choice of channels / media STEP 2 – PROCESSES DEFINED (2000) • Value Chains (Manage Revenue Cycle, Optimise Customer Interaction, Acquire Customer, Manage availability of supply, Network Asset creation) • Bench marking / World Practices • Process ReEngineering • ARIS modelling STEP 3 – CORE SYSTEMS • Virtual Contact Centre Infrastructure / Multimedia (2002) • CIS (2003) • Field Service Management • Work Management / Scheduling / Despatch (2000) • Mobile Data Terminals (2001) • Cellphone / PDA (2004) STEP 4 – CRM FRAMEWORK SOLUTION • Ubuso Project – The Face of Eskom using Framework CRM solution

7. Overall picture 3,7M customers 7 Contact Centres 3 Acc Ops 99 WICs C S D C 7 languages 4 services 1 Virtual Workforce Accountability CRM PROCESS MANAGEMENT MDT Disconnect Cell/PDA’s CIS CASE HISTORY FIELD MANAGEMENT

8. How CRM fits in: Business System Architecture Contact Centre Telephony: Call Routing Voice Mail Voice Logging IVR Outbound Dialling CTI: Computer-Telephony Integration Call control from Agent Desktop Calling Line ID CRM Solution: Agent desktop Scripting Knowledge Mgt Multimedia Queue (Fax, Email, SMS) Case Management Workflow CIS / Billing: Billing Credit Management Payments Field Work Management: Wires business Work scheduling IVR: Self Help services Account Balance Fault info Dialler: Call campaigns Enterprise Workflow CS OnLine: Web Self Help Document Management eMail & SMS: In & outbound

9. Technology Architecture – Integration bus Regional PSTN Dialler I V R PSTN CTI PSTN CTI Switch PSTN CTI Switch PSTN CTI Switch PSTN CTI Switch PSTN CTI Switch CTI Switch Switch CRM iBus CRM DB Data Mining (Reports) Fax Email SMS Legend: iBus adapter XAI Point-to-point interface CRM Service Object Project Mgt Fault Mgt Work Mgt CIS Regional GIS CIS DB Wires DB

10. Case Management: Workflow Inbound agent Customer has Case Closed opens a customer request case Case History Case History Case History Additional work required on case GTX KPI configuration Inbound Routing configuration Route to Department Location and Position CRM CRM Workflow Configuration Workflow Monitor Accountable position in department Responsible position in Resolve department Workflow History Workflow History Workflow History Workflow Escalations Escalations Escalations Rejections User rejects work assigned to them. Work If KPI is exceeded, the work item is routed to the CCDC who either does a Workflow Management becomes overdue and the person’s follow up or re-allocates the work. manager is notified. External System External System External System EAT Rejections Rejections Rejections Work items (Maximo) (Maximo) (Maximo) Engineering Work Item is rejected. When EAT Work Item are sent, the Follow-up done by person who views Regional CS Manager, Area Maximo rejections. Work item is followed- Manager and Task Accountable Manager up or re-logged. of the applicable region are notified.

11. Proactive Service: Campaign Management Campaign built by an administrator Calls sent to Agent via Dialler Extract CRM Campaign Management Received campaign from external system CRM Campaign Management Create and send e-mails on the execution date CRM Workflow Calls assigned to back office Agent to complete Campaign Execution Create and send SMS message to customer on the execution date E-Mail Dialler CRM Workflow Phone

12. Task Accountable and Customer Accountable Escalation “VIP / Sensitive” customers • Principles: • Workflow is identical as for non-vip / sensitive customers • The only addition is notification to the customer accountable person that a case has started Area DC / Customer Exec (Accountable for Customer) Manager / Supervisor (Accountable for Task) Notification of new case opened Escalation when task overdue 1=“Task” escalation to the Doer’s boss to chase the work 2=“Customer” escalation to the person accountable for the customer to advise him in case proactive intervention / customer feedback is necessary Notes: Could be the same person eg an Area DC is accountable for the customer AND is accountable for his service agent doing the work - in this case the person will get both views. Could be to 2 different people – eg the Billing Mgr gets the task escalation and the Area DC gets the Customer escalation when the Billing clerk fails to deliver the work on time. The customer accountable person is the NAMED person accountable for that specific customer. 1 2 CRM Work Flow Back Office “Workflow Recipient” And “Work Doer” Front Office “Contact Logger” And “Case Opener”

13. Fit to generic CRM Functions 1) MARKETING – Campaign Management for : • Service Availability (Planned / Unplanned) • Credit Management • New Service Activation audit checks • Ad hoc Sales campaigns 2) SALES – No focus (future) 3) SERVICE: • Multichannel (Web / Contact Centre / SMS) • Resource Planning & Optimisation (Work Force Management across 7 CC’s) • Case Management (Logging / Workflow / Escalation / Monitoring up to Regional Manager level / Segment differentiation (VIP flow)) 4) ANALYTICS (Reporting): • Service Levels / Overdue • Interaction Types trends • Costs • Channel trends

14. Fit to generic CRM Functions 5) AGENT DESKTOP: >Case Logging >Scripting >Fault Analysis >Electronic Contracting >Case History >Dashboard >Case Based reasoning >Knowledge Management Toolbox 6) SELF SERVICE: • Account Balance (IVR) / Web site / Fax & Email 7) FIELD SERVICE MANAGEMENT: • Mobile Data Terminal – Mile 1,2A, 2B, 3 • Cell / PDA – Disconnect / Reconnect Work Orders 8) DATA MANAGEMENT: • Customer Details • Customer / Network Link / GPS • Sales Info - Follow up on No Sales for theft

15. Learning Points - Process • Aggressive timeline of a year worked well (trimmed scope to fit) • Phased implementation with a core at each site and overlap with old system worked well • Extensive user involvement in design and testing proved valuable (workshops, SMEs, Testing, secondments) • Framework solution easy to fine tune & change processes • Workflow structuring is excellent down to Person level and easy to maintain • Workflow co-ordination / administration roles required • Dashboard Reporting is good - Generating analytical reports requires a good report writer tool

16. Learning Points - Technology • Pilot use of iBus technology, lack of skills and experience. • Multiple major initiatives in the business (726, CDX upgrade, etc) • Too many External Dependencies –13 different teams involved • Integration effort took much longer than estimated • Training database performance not good (hardware capacity) • Full infrastructure requirements (Dev/QA/Training) unknown upfront • Multiple sessions open impacts licence usage • Client and workflow kernel crashes • Not enough upfront DR planning

17. Learning Points – Change Management • Training on Framework System with familiar processes was easy • Extensive line involvement during development and testing created strong ownership and knowledge/experience • Implementation structure with team members deployed to support regions was very successful – Change Management Missionaries • Extensive project communication involving many channels and addressing all levels of stakeholders created a “pull” from the business. • Strong business involvement and ownership of Change Stream • Strong sponsor involvement and direction across all streams • Dual system usage had both positive and negative effects.

18. Benefits description Service / Process Efficiency: • Efficiency resulting from reduction of average handling time, by presenting all relevant information in a timely manner • Efficiency from first contact resolution (reduction in despatched items) • Efficiency from self service channels • Efficiency from improved Case Management • Efficiency from one contact resolution (reduction of repeat calls) • Increase in service levels by being able to handle more requests in shorter timescales and reduced number of repeat calls • Reduced growth in manpower due to efficiencies in all areas (e.g. reduced call volumes, better case management, efficiency from self-service channels, reduced AHT, etc.) Secondary Benefits: • Reduction in training costs (reduction in agent training time due to the intuitive nature of the CRM System Solution) • Efficiency from flexibility for process changes • Ongoing benefits in terms of process improvement to continually increase efficiency and customer service.

19. Benefits Tracking • Reduced cost of service by 25% (cost per customer) since 1995 • Improved Customer Service • New indicators: • One Contact Resolution • First Contact Resolution • Average Handling times • Manpower costs / count • Training costs / days

20. 6 Months after Go Live • Contact Centre Staff say it is a huge improvement • Account Ops Staff love it and use it actively • Wires Works Management Centre say it is an improvement • Area staff are extremely enthusiastic and say it has reduced their work load • CS Deliver Controller says: “It is fantastic. I can sit at my desk and see the status of all customer issues my remotely located service agents are handling.” • Service Agent at remote locations love it. Such a positive reaction to a new major system is unique in Eskom, especially after only 6 months during which time performance was interrupted at times

21. Future Vision • Flexibility of Framework Solution • To integrate many legacy systems from Municipalities and Eskom into Regional Electricity Distributors (REDs) • To provide economy of scale across 6 independent REDs • Variations and phased versions of the above • Interaction Automation • Personalisation • Relationship Management via People Interface • Expansion into Sales & Marketing Making Eskom “Easy to do business with” • Enquiries: kevin.vonberg@eskom.co.za