mar 25, 2015 business case greater china cut-off time extension jason liu

Mar 25, 2015

Business Case Greater China Cut-off Time Extension

Jason Liu

2© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Executive Summary


Problem Statement Biz Requirement

The Greater China sales teams, partners and customers are asking for an extended cut-off time for standard orders

• 3pm cut-off time has been set for 10+ years in Greater China Operation

• IDC says most market players in China have moved the cut-off time to business close time

• Benchmark is changed especially on UCS products

Market

• Customers and Account Teams are not satisfied with the current 3pm cut-off time

CSAT


China Business Close Time

Partner Feedback Quote” Other market players like H3C did the extension long time ago already. I don’t understand why Cisco still sticks to the 3pm”

Taiwan 5pm

Partner Feedback Quote “We feel uncomfortable about the 3pm cut-off time, HP is with 5pm in Taiwan, why Cisco cannot do the same. In terms of the delivery service, I don’t think Cisco is flexible and competitive as HP.

Hong Kong & Macau: 5pm

Partner Feedback Quote “The NBD 3:00pm cut off time is not satisfying the market and customer needs in HK. When customer calls on issue during office hour, it generally takes an hour to get the CSE assigned, and further takes 2-3 hours to get emails exchange for the logs and troubleshooting. even the current shift engineer can finish the troubleshooting before 3:00 but the RMA would become two days later.

VOC(Voice of Customers) Outlook Item Outlook Item


Anticipated Outcome• The RMA cut-off time is extended to an

agreed later time• No impact on the existing delivery capability

Operation

• In line with the market benchmark• Business deal opportunitiesMarket

• Meet customer expectation• Higher customer satisfaction levelCSat


• Greater China theatre including CN, HK, MO and TW

• Service Level - NBD and NCD SLA

• Service Order (RMA)

Business Scope


Case Analysis


Role Description Name/Title

Global Executive Sponsor Provide business operation support for the project

Dillard Mayers

Global Business Owners Provide business operation support for the project

Steve McMahonMichael Strain

Local Executive Sponsor Provide executive support for the project from local theatre

Eliza Zhao

Local business owner Provide business operation support for the project

Jennifer Sun

Local Project Manager Provide pre-project business case analysis support

Jason Liu

VOC Track Owner Facilitate the VOC sessions for the project

Nathan CaoDennis Lian

Capability Track Owner Provide logistics support and verification for the project

Crystal QiMike Liu

Business Case Analysis Team


• Resource readiness (TPL, OM operation)

• System readiness (Cisco & Vendor tools)

• Sales Agreement (Sign-off)

• Supporting teams agreement (Sign-off) – TAC & LSC

Business Assumptions


• Improve and enhance local customer experience

• Meet Customer expectation

• Have Higher Customer Satisfaction

• Gain market competitiveness in service market

• Allow more troubleshooting time

Expected Benefits


• Less transportation buffer time & certainty

• NBD support coverage shrinkage

Business Risks


Strategic Options


China Cut-off22%

4-5PM

After Cut-Off Coverage

Missed City Coverage

Option 1 – Country level Extension

Around 25% of the cities supported in the original 3pm cut-off will be uncovered when cost keeps flat

100% City Coverage Impossible to be met even if we provide hand-carry and dedicated trucks with substantial cost increase

Option 2 – Selected City and Product Family

System feasibility exploration is being worked on (PFM#14342)


Taiwan Cut-off

Hong Kong and Macau Cut-off

• No coverage impactCoverage

• 5pm- No additional cost • 5pm+Prem RMA costCost

• No coverage impactCoverage

• Estimated 15% cost increase Cost


Summary


Summary

Region Req cut-off Operational Challenges Recommendation Remarks

China Overall 5pm Flat Cost – only approx 70% city coverage remains

No

China Based on selected PF & Cities 5pm

Estimated 5% WH cost increase

Yes GTST team is working on PFM#System feasibility

Taiwan 5pm No operational impact & cost impact

Yes

Hong Kong 5pm Approx 15% cost increase Yes

Macau 5pm Approx 15% cost increase Yes

Cisco Confidential 18© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Research Highlights – Service offeringBlade Server Rack Server Networking Equipment Unified Communication

HP Huawei Dell IBM Lenovo Huawei Juniper H3C Avaya Huawei Polycom

Free Warranty Service Level

3 year 5*9*NB

D

3 year 5*10*NBD & 7x24 online

support

3 year 5*9*N

BD

3 year 5*9*N

BD

3 year 5*8*NBD & 3 year

7*9 online

support

5*10*30CD

Return to

factory

5*8*20CD

Return to

factory

5*10*30CD

Return to

factory

3 year 5*8*NBD Remote

Technical Support

3 year 7x24

Online support

or 1 year 7x24

Online support

3 year 7x24

Online support

or 1 year 7x24

Online support

Bundled Services(Bundled services here refers to services sold with hardware together by default. For some vendors and products, bundled service is the same as warranty)

3 year 7*24*4

Same as

above

3 year 7*24*

4

year 7*24*

4

3 year 5*8*NBD

Same as above

Same as above

Same as above

Same as above

Same as above

Same as above

Cut-off Time(only applies to working hour services)

N/A N/A5:00P

MN/A 6:00PM 6:00PM N/A 6:00PM N/A N/A 3:00PM

Service Start Time

Since online representative make sure it is necessary to provide onsite service

Since partner receives customer’s call

Since online representative make sure it is necessary to provide onsite service

Documented? All abovementioned services are publicly documented

mar 25, 2015 business case greater china cut-off time extension jason liu

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