the time is now collaborate…innovate…accelerate · low cost per transaction (efficiency) ......

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 2

The Time is NowCollaborate…Innovate…Accelerate

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 3

Confidential

Unified CustomerCare TransformsBusiness

Mike BergelsonDirector, Product ManagementCustomer Contact Business Unit

6 November 2007

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 4

Why does Customer Contact Matter?

Collaborate…to Define Requirements

Innovate…to Create Leading Solutions

Accelerate…Partners to Deliver Success

Detailed Product Updates

Detailed Product Roadmap

Topics CoveredTopics Covered and Not Covered

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 5

ServiceQuality

ProductFeatures

Price

Source: Harvard Business Review, 2004; Monitor Group (Rayport, Jaworski)

Lik

elih

oo

d t

o (

Re

)Pu

rch

ase

5:1difference in

customer impact

As products commoditize, service quality has the highest impacton customers’ decisions to leave or stay.

Service Quality Key to Customer Loyalty

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 6

ServiceQuality

ProductFeatures

Price

Source: Harvard Business Review, 2004; Monitor Group (Rayport, Jaworski)

Lik

elih

oo

d t

o (

Re

)Pu

rch

ase

5:1difference in

customer impact

As products commoditize, service quality has the highest impacton customers’ decisions to leave or stay.

Service Quality Key to Customer Loyalty

Customer Satisfaction Figures

Into Some Executives’ Bonuses

November 2005

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 7

CEOs: Putting Customers First in 2008

Source: NYSE CEO Report 2008, Opinion Research Corporation, 2007

Customer Service Top of List of Issues in Recent CEO Report

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 8

Which list would CEOs prefer to be on?

vs.

Source: Business Week, March 2007; msn money, April 2007

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 9Source: Cisco analysis

Customer Service Really Does MatterNov 1, 2004 to Oct 31, 2007 Percent Growth

-10%

0%

10%

20%

30%

40%

50%

60%

11/5

/04

1/5

/05

3/5

/05

5/5

/05

7/5

/05

9/5

/05

11/5

/05

1/5

/06

3/5

/06

5/5

/06

7/5

/06

9/5

/06

11/5

/06

1/5

/07

3/5

/07

5/5

/07

7/5

/07

9/5

/07

Perc

en

t

S&P 500 Champs Hall of Shame

+ 31%

+ 6%

+ 50%

11/04 11/075/0711/065/065/05 11/05

ChampsS&P 500 IndexHall of Shame

Service perception is correlated with stock performance.

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 10

0%

20%

40%

60%

80%

100%

There is a wide gap between what companies think theyare delivering and what customers think they are getting.

Companies whosecustomers agree

Companies that believe theyare providing superiorcustomer experience

72% Gap

Most Don’t Know the Damage They’re Doing

Source: James Allen, Bain & Company, October 2005

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 11

TimeTime

One Culprit: Silos in the Contact Center

AgentDesktop

OutboundDialer

WorkforceOptimization

QualityMonitoring

CTI

IVR

E-mail

Dashboard andAnalytics

PBX

ACD

Video

Chat

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 12

Ab

ility

to

Dri

ve

To

p L

ine

Gro

wth

(Eff

ective

ne

ss)

Hig

hL

ow

Cost per Transaction(Efficiency)

High Low

“Necessary Evil”

“Strategic Asset”

“High Cost, High Touch”

“Smooth Operator”

Effectiveness vs. Efficiency

Source: Servion, 2007

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 13

100%

-16%

-2%

62%

35% OpEx Reduction

+15%

2007Base

AnnualCost

Requires Initial IP Investment Estimated at 15% of OpEx

AgentProductivity

Home/RemoteAgents

2012AnnualTargetCost

TransactionAutomation(Web / IVR)

-17%

WebCollaborative

Service

-3%

Traditional High Touch RemoteChannel Interaction Model

Clear ROI for Care Transformation

Source: Cisco analysis

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 14

Collaborate

…to define requirements

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 15

Cisco’s Customer Contact StrategyA Simple Equation to Exploit Key Market Transitions

+

+

Collaborate toInnovate

Recruit top industry talent,collaborate to maximize innovation

Distribution World class field and channel

SONA Network as platform for innovation

CustomerContact Success

= Drive to #1 share in IP customercontact market

+ UC SuccessBuild on success in enterpriseUnified Communications

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 16

Recruiting Contact Center Top Talent

Barry O’Sullivan – SVP, Voice Technology Group

Laurent Philonenko – VP and GM, Customer Contact Business Unit

Murali Sitaram – VP, Engineering

Rick Moran – VP, Marketing

Roxann Swanson – AVP, Customer Contact Application Sales

John Hernandez – Sr. Director, Product Management

Richard McLeod – Director, Sales Business Development

Joseph Khouri – Director, Engineering

Clive Sawkins – Director, Operations

Steven Vaughan – Director, Advanced Services

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 17

Recruiting Contact Center Top Talent

Barry O’Sullivan – SVP, Voice Technology Group

Laurent Philonenko – VP and GM, Customer Contact Business Unit

Murali Sitaram – VP, Engineering

Rick Moran – VP, Marketing

Roxann Swanson – AVP, Customer Contact Application Sales

John Hernandez – Sr. Director, Product Management

Richard McLeod – Director, Sales Business Development

Joseph Khouri – Director, Engineering

Clive Sawkins – Director, Operations

Steven Vaughan – Director, Advanced Services

FY05 FY06 FY07 FY08

Critical: Channel is Growing, Too

Global Cisco Customer ContactDelivery Capacity

Source: Cisco analysis

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 18

Collaboration within Cisco

CustomerAdvocacy

Sales /Channels

SolutionsMarketing

UCBusiness

Units

GovernanceCommittees

CiscoUnified Comm.

Solution

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 19

Collaboration Across Entire Ecosystem

Customers Partners Analysts

• Ongoing dialog with customers• Informal / formal partner feedback• Customer Board of Advisors

• Technical Advisory Board• Analyst briefings• Select market research

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 20

Innovate

…to create leading solutions

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 21

“…the ability to capture market transitions and understand thembefore they become obvious is perhaps what Cisco does best”

August 2007

John Chambers, CEOCisco

“As I’ve described many times before, you mustcapture market transitions before they becomeobvious.” September 2006

“… our results continue the effectiveness of ourstrategy and our ability to capitalize on majormarket transitions.” August 2005

“Our continuous focus on catching markettransitions … [is] at the heart of our culture”

December 2004

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 22

WEB 2.0WEB 1.0

Customer Service 2.0?

Ofoto

Personal websites

Contact Center

Flickr

Blogging

Netscape Google

User CentricSimple & Lightweight

DecentralizedParticipatory

Britannica Online Wikipedia

Content Management Wikis

Source: O’Reilly 2005

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 23

IP Past the Tipping Point for Enterprise

Source: Gartner (2006), Synergy Research (2006)

IP M

igra

tion

Enterprise IP Telephony (Lines)

IP Contact Center (Seats)

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 24

Market Transitions in Customer Care

TRANSACTIONS

INTERACTIONS

PRODUCTION

Standardize Specialize Scale

Automate Access Empower

TranslateRecordBroadcast

CustomerAccess

Back-OfficeAutomation

MultipleChannelsCustomer

Convenience

ConsolidatedChannels

PersonalizedService

RichInteractionsIntegratedProcesses

Single Faceto CustomerOptimizedProcesses

Rest of EnterpriseContact Center

Enterprise

Infrastructure

Contact Center

Experience

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 25

Building the Foundation for Interactions

TRANSACTIONS

INTERACTIONS

CustomerAccess

Back-OfficeAutomation

MultipleChannelsCustomer

Convenience

ConsolidatedChannels

PersonalizedService

RichInteractionsIntegratedProcesses

BPM and Analytics

Standards (SOA) and Presence

Open Virtual Call Center Routing

IP Communications

Routing—Switching—Security

Single Faceto CustomerOptimizedProcesses

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 26

Cisco’s History in Customer Contact

BPM and Analytics

Standards (SOA) and Presence

Open Virtual Call Center Routing

IP Communications

Routing—Switching—Security ‘99

‘00

‘01

‘02‘03

‘04 ‘05 ‘06 ‘07

Market entrywith GeoTel

acquisition

Industry’s First IP-BasedACD (IPCC Enterprise)

Complete SME Contact Center inc.advanced speech (IPCC Express)

Adv. speech self-service, intelligentnetwork queuing and treatment (CVP)

Latigentacquisition

Audium acquisition

First Version ofIP-IVR Released

WebLineacquisition

Industry’s First IP Dialer Released

Multi-tenanted contact center(IPCC Hosted)

Advanced speech analytics (CIA)

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 27

Product Strategy and Roadmap

ProductFamily Key Strategy Product Highlights

Express

Enterprise

NextGeneration

• Attach to Cisco UC

• Complete SMB offering

• Competitive price

• Simplify solution

• Attack mid-market

• Focus innovation onreal business problems

• Evolve installed base

• Drive innovation tomove markets, e.g.,with video and mobile

• Two server high availability• Quality Mgmt / Workforce Mgmt• Email, web collaboration• Preview outbound dialer• Presence integration• Entry level email solution• IP phone agent bundle, UC500

• UCM-based silent monitoring• CRM connectors• 8,000 agent capacity• Outbound campaign mgmt• Universal queuing with WIM• System CCE enhancements• Expert advisor

• SIP for routing, queuing, speech• Ops console and reporting f/w• Nuance 9.0, VXML 2.1, MRCP 2• SCE evolution (debugger, WSDL)• Consolidated, multi-vendor Studio• Interactive video response• Consumer Connect

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 28

Latigent: Advanced Analytics and Reporting

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 29

Latigent: Advanced Analytics and Reporting

“The team at Latigent has already built and deployed whatcould be called a web-based CMS CentreVu Supervisoremulator that can be selected on a tab in a browser. Butthe CMS-like screens are just for the call center Luddite.The rest of Latigent’s BlueVue information portal has allthe sexy dashboard-like capabilities customers today arescreaming for. With it, Cisco comes from behind inreporting and leapfrogs the competition.”

Sheila McGee-SmithMcGee-Smith Analytics

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 30

0

100,000

200,000

300,000

400,000

500,000

600,000

2003 2004 2005 2006

Cisco’s Market Position AcceleratingCisco Agent Shipments (2003 – 2006)

94% CAGR

94% CAGR

Source: Cisco analysis

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 31

Ab

ilit

y t

o E

xecu

te

Completeness of Vision

LeadersChallengers

VisionariesNiche Players

Gartner NA ACD Magic Quadrant for 2004

Genesys

Aspect

Avaya

Nortel

Telephony@Work

Cosmocom

Mitel

Syntellect Nuasis

Computertalk

Siemens

Interactive Int.

NEC

Cisco

Cisco’s Market Position Accelerating

Oracle

Computertalk

Intervoice

Interactive Int.

Source: Gartner (2004 – 2007)

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 32

Gartner NA ACD Magic Quadrant for 2007

Ab

ilit

y t

o E

xecu

te

Completeness of Vision

LeadersChallengers

VisionariesNiche Players

Nuasis

Cisco’s Market Position Accelerating

Source: Gartner (2004 – 2007)

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 33

72% CAGR

72% CAGR

Po

rts S

hip

pe

d (

00

0’s

)Cisco Self Service Port ShipmentsCisco self service growth is significantly outpacingthe overall market.

Source: Cisco analysis

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 34

* Includes Edify portsSource: Tern Systems, 2007

Cisco Self Service MomentumRose to #3 in Self Service Port Shipments in 2006

2003 2004 2005 2006

1 Nortel Nortel Nortel Intervoice*

2 Intervoice Genesys Avaya Genesys

3 Avaya Intervoice Genesys

4 IBM Avaya Intervoice Avaya

5 Envox IBM Nortel

6 Edify Envox Edify Envox

7 Genesys Edify Envox IBM

8 IBM

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Cisco Self Service MomentumRecognized as Top Self Service Platform in 2007

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Cisco Self ServiceCustomer Testimonial

“… a triumph of Internet standards, wirelesscommunications and links to enterprise computingapplications.” Dan Miller

OPUS Research

“… benefits include lower CapEx and TCO because itmakes use of industry standards, SOA, and web services;the speech application resides on the network …”

Nancy JamisonJamison Consulting

Coca Cola Enterprises

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 37

Accelerate

…partners to deliver success

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 38

Customer Contact Solutions are Deal Multipliers

Installed Base ofCisco UC Customers

10%

90%

ContactCenter

attached

NOContactCenter

Attached

FY03- 07

CommercialAvg Product Sales

$280K

$115K$1.9M

EnterpriseAvg Product Sales

$3.6M

+ 144%+ 89%

Average Core and AT ProductBookings Per Deal, 1Q – 3Q07Source: Cisco analysis

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 39

Services Revenue Grows Margin Significantly

Partner's Average Initial Sale

$108,242

479%

125%

Sales Model

$100,000

$250,000

$400,000

$550,000

$700,000

Sale

s R

even

ue

0%

100%

200%

300%

400%

500%

600%

% G

row

th

$626,394

$243,777

% Increase From Product Only Sale

Partner's Total Revenue

Product Sale SI Sale Solution Sale

9% BlendedMargin

18% BlendedMargin

24% BlendedMargin

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 40

Listening and ActingBusiness Gap Key Initiative

Design mentoring Design service

Technical forumsContact Center Direct Connect, Ask the Doctor,

A2Q website improvements

Best practice sharingPartner Practice Builder,

Steps to Success focus – update CC Best Practices

Sales enablement Sales enablement lesson maps

Solution too complex Align apps under one, solutions-oriented approach

Capabilities to maintainsolution, not point products Incorporate partner feedback into requirements

Need proactive monitoring Solution serviceability / troubleshooting docs

Too late in release cycle Pilot early (pre-EFT) release

Partner GTM delays Align customer contact w/ UC Partner Beta program

Co

mm

un

icati

on

So

luti

on

Serv

iceab

ilit

yR

ele

ase

Tim

ing

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 41

Summary

The service imperative affects all of ourcustomers

Key market transitions in customer contact

Cisco uniquely positioned to capitalize onthese transitions – gaining momentum

You are key to our success...we’re:

Listening to your feedback

Working to ensure your success and profits

For more information:

Visit www.cisco.com/go/cc

Ask your Channel Account Manager

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential2007 WW UCPS 42