Matthew MasonSenior Director Billing, Payments and CollectionsVersion 0.2

Revenue Management Customer Experience at du

This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

1. Corporate Overview2. Re Cap last Years Presentation Highlights3. Customer Excellence Program4. Customer Experience & Billing KPI’s 5. Question & Answers

Contents

• Emirates Integrated Telecommunications Company PJSC, commercial launch was Feb 2007 under the brand du

• 4.3 million Mobile customers• 4.1 million prepaid active mobile• 260,000 post paid mobile (6% mobile base)• 561,000 post paid fixed line

• Revenues of AED 7,074 million compared to AED 5,339 million in 2009 (32% Increase)

• EBITDA reached AED 2,018 million versus 1,064 million for FY 2009 (90% growth)• Net profit before royalty increased 132% (AED 1,226 million versus 528 million in

2009)• du’s retail network, currently numbering 35 du shops located in strategic locations

across all Emirates

Corporate Overview

Convergent Services

du offers voice, data, video and content services over fixed and mobile networks

• Consumers: mobile and fixed voice calling, Internet, data services , TV

• Businesses: integrated fixed and mobile business solutions, including voice, data, content and applications as well as professional services

• International and wholesale : international data networks and wholesale services to international operators, multinational corporations and telecom carriers

4

· Paid up capital: AED 4.5 billion· Mubadala Development Company is a Public Joint Stock Company, wholly

owned by the Government of Abu Dhabi. The company manages a portfolio of local, regional, and international investments

· TECOM is a limited liability company and a wholly owned subsidiary of TECOM Investments FZ LLC, which is a part of Dubai Holding LLC

· The shareholders offered 20% of their shares in a public sale on March 2, 2006

Our Shareholders

EITC“du”

UAE Government

(40%)

Mubadala Development

Company(20%)

TECOM (20%)Shares listed

on Dubai Financial

Market (20%)

2010 Billing Experience Snapshot

IT Billing Development Update Product

Catalogue System Developments

Marketing Bill Marketing Messages Bill Inserts Bill Layouts Products/Promotions Product Catalogue

IT Billing Operations Bill Cycle Execution Payment Processing Manage Print Vendor

Finance Credit Control Own Credit & Collections

Policy Approve Credit Limits Review Credit Limits DCA Management

(inactive customers)

Commercial Billing, Payments & Collections Billing Calendar Owner Billing QA (partial) Resolve TT’s Reconciliation of

Payments Manage Credit Limit

Monitoring Manage Dunning

(active customers)

Revenue Assurance Mediation Rating Fraud Management

Sales / Retail / Cust Care Negotiate & Update

Customer Contracts Enter Customer Orders Collect Payments

Commercial OMT Business Contract

Activations Update Credit Limit in

BSCS

Corporate Comms Bill Marketing Messages Bill Inserts

Network Operations Activation of Services Deactivation of Services

IN Operations Prepaid Activation of

Services Prepaid Deactivation of

Services Operational prepaid

Wallet Management

Human Resources Employee Payroll bill

paymentDepartments that Influence Billing in du

7

Third Party Suppliers (Banks, Dealers, Agents (Axiom

, Al Ansari, etc)

Billing Payments & Collections

Legal

Marketing

Finance

Corporate Comm

unications

Sales/Retail

Customer Care

IT Development

IT Production Operations

Network Operations

HR

IN Operations

CON

CEPT

EXIT

COLLECT

PAY

INQ

UIRE

DISPU

TE

BILL

RATE

PROVISIO

N

BUILD

SELL

DEPLO

Y

TEST

Departments that Influence Billing in duCustomer Billing & Revenue Management Lifecycle

8

du Customer Billing Experience

Customers don’t trust their bill is accurateCustomers complain at our customer service channels, choking our

ability to serveIncreases our operational costs and overheads to handle customer calls

and billing disputesOur customers don’t pay, we suspend their services and increases bad

debtCustomer goes to the opposition Customer is dissatisfied with du and shares their experience with

friends and family

9

Observations & Learning's

Lack of formal aligned cross company processes and work instructions and therefore inconsistency of execution and adherence

No single accountable person for the above

Manual procedures that are dependant on people and are prone to error

New Product & Service deployment is more focused on speed to market than customer experience and operations efficiency

People SystemProcess

10

FEDM (Fixed Enterprise Data Migration)FNL (Fixed National Launch)MNP (Mobile Number Portability)On Demand BillingSegmentation, Convergent OffersEtc, Etc ……

11

du Projects coming in 2010

There are complex projects, offers and capabilities on their way this year increasing billing complexity

Is this Billing Customer Experience ok with you?

12

5 Steps to World Class Billing Experience

Executive Summary

14

Step 1 - Define Vision•Ensure a customer is invoiced accurately on time for the services requested and used

•Proactively identify and fix gaps in end to end cross company billing processes and systems at the root cause before it impacts a customer

Step 2 - Customer Experience Steering Committee

Step 3 - Cross Company KPI’s

Step 4 - Process Alignment, Ownership using RASCI Model

Step 5 - Monitor Enhance Adapt

IN Operations Prepaid Activation of

Services Prepaid Deactivation of

Services Operational prepaid

Wallet Management

IT Billing Development Update Product

Catalogue System Developments

Marketing Bill Marketing Messages Bill Inserts Bill Layouts Promotions Product Catalogue

IT Billing Operations Bill Cycle Execution Payment Processing Manage Print Vendor

Finance Credit Control Own Credit & Collections

Policy Approve Credit Limits Review Credit Limits DCA Management

(inactive customers)

Commercial Billing, Payments & Collections Billing Calendar Owner Billing QA (partial) Resolve TT’s Reconciliation of

Payments Manage Credit Limit

Monitoring Manage Dunning

(active customers)

Revenue Assurance Mediation Rating Fraud Management

Sales / Retail / Cust Care Negotiate & Update

Customer Contracts Enter Customer Orders Collect Payments

Commercial OMT Business Contract

Activations Update Credit Limit in

BSCS

Corporate Comms Bill Marketing Messages Bill Inserts

Network Operations Activation of Services Deactivation of Services

Human Resources Employee Payroll bill

paymentDept LeadBill KPI’s

Dept LeadBill KPI’s

Dept LeadBill KPI’s

Dept LeadBill KPI’s

Dept LeadBill KPI’s

Dept Lead Bill KPI’s

Dept Lead Bill KPI’s

Dept Lead Bill KPI’s

Dept Lead Bill KPI’s

Dept Lead Bill KPI’s

Billing Customer Experience Steering Com

mittee

15

Cross Company Billing Processes (Example only) Third Party Suppliers (Banks, Dealers, Agents

(Axiom, Al Ansari, etc)

Billing Payments & Collections

Legal

Marketing

Finance

Corporate Comm

unications

Sales/Retail

Customer Care

IT Development

IT Production Operations

Network Operations

HR

IN OperationsInvoice Generation and Dispatch

Invoice Accuracy (Rate Plans, Promotions)

Invoice Accuracy (Reconcile Customer Order to Bill)

Invoice Timeliness (define schedule and report adherence to schedule)

Return Bill Processing & Bill Copies

Power Billing Integrity & Timeliness

Network usage event’s to Invoice (Ensure all rateable network events are invoiced

On Demand & Hot Bill Integrity & Timeliness

Online or E-Bill Integrity & Timeliness

Switch to Invoice Accuracy (Reconcile Customer Services on Network to Bill)

New Product or Service Solution Design & Cross Company Operational Processes

2

1

3

4

5

6

8

9

10

11

7

16

Cross Company Billing Processes (Example only)

Billing Payments &

Collections

Marketing

Finance

Corporate Com

munications

Sales/Retail

Customer Care

IT Developm

ent

IT Production Operations

Network Operations

HR

Dept Lead

Bill KPI’s

Process 3Step 1 Step 2

Process 3Step 1 Step 2

Process 1Step 1 Step 2

Processes

Dept Lead

Bill KPI’s

Process 3Step 1 Step 2

Process 3Step 1 Step 2

Process 1Step 1 Step 2

Processes

Dept Lead

Bill KPI’s

Process 3Step 1 Step 2

Process 3Step 1 Step 2

Process 1Step 1 Step 2

Processes

Dept Lead

Bill KPI’s

Process 3Step 1 Step 2

Process 3Step 1 Step 2

Process 1Step 1 Step 2

Processes

Dept Lead

Bill KPI’s

Process 3Step 1 Step 2

Process 3Step 1 Step 2

Process 1Step 1 Step 2

Processes

Invoice Generation and Dispatch End to End Process1

17

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Critical Success Factors

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CCO & CEO public endorsement and a call to action for full engagement from all departments.

Focused & dedicated resources are required from each department to own Processes, KPI capture, monitoring, and drive POW to increase operational efficiency

Where should the function sit to drive the best outcome for the company?

19

Drive the right behaviors with your Colleagues via HR Performance Management Systems.

Sales commissions based on cash collected not sold revenue

IT measured on billing integrity and accuracy

Marketing measured on cash collected by customer segment as well as revenue and subscribers. (influences product design)

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We did it!

Customer Excellence ProgramWas announce by our CEO December 2010

22

Customer Excellence Program - Setting the scene

Our Customer Excellence Program will transform du into a customer centric organization with highly motivated employees, working in cross-functional

teams.

Despite strong financial results, du is currently facing serious issues in customer experience…

… resulting from…– people working in functional

silos– processes that are not customer-centric

–systems not supporting the processes.

Proc

esse

s

People

Customer

Current situation Target state

Systems

The CEP is one of du’s top priorities for this year – it will spearhead the necessary transformation of the organization through the involvement of each

and every employee.

Solution DeliveryWS

Performance ManagementWS

BillingWS

Trouble TicketingWS

Work Order ManagementWS

Change ManagementWS

Mark. CC. Sales IT Ops

• Customer Excellence Program was kicked off in December 2010

• It manages 3 customer-facing and 3 supporting work-streams, horizontal to current du organization

• Total Program comprises 100 + full time employees

• Program is currently managing more than 30 cross-functional initiatives

Customer Excellence Program – Work-Streams

Facts about CEP Program

*WS: Work-Stream

24

Progress achieved so far

The CEP Program has been able to contain issues in most areas – now it is critical to start the transformation process of the organization.

TRANSFORM THE ORGANIZATION

(Focus on efficiency)

3• Long term process improvements and

process excellence • Streamlined processes (e.g. Work

Order Management and Trouble Ticketing)

CONTAIN CURRENT ISSUES

1• Stabilize Work Orders’ and Trouble

Tickets' backlog• No Work Orders older than 7 days• No more failed payment transactions

Completed?

TRANSFORM THE ORGANIZATION

(Focus on customer centricity)

2• Customer-centric organization• Work in cross-functional teams• Shop guardian program

Employee Feedback SummarySummary of Results• Out of ~2000 employees, only 51 employees participated in the Employee feedback survey to provide their personal feedback on

Customer Experience with du mobile and Home services

• Out of 51 responses,

• Only 1 respondent has provided positive feedback• Remaining 50 respondents have expressed dissatisfaction and highlighted issues spread across the customer life cycle.

The issues range from interaction with customer touch points, service activation to service assurance

4

10

9

7

6

14

1

# Employee responses across customer life cycle

Getting to Know Buying Activation Using Billing Contacting Termination

Total: 51 responses

Top Issues

1. Long waiting times at du shops/Contact Center

2. Sales/CC agents behavior, Product Knowledge gap

3. Blackberry Activation

4. Bill Shocks with unlimited data offers (iPhone/BB/Elite)

5. Unresolved Trouble Tickets

6. Repeated suspension of Customer Internet Services 7. Self Care access and stability

1 +ve response * Customer’s iPhone setting issue resolved at du shop

50 –ve responses

*

Top issues found through this CEA activity are in line with issues detected and addressed as part of the CEP program, and confirm that ongoing initiatives are tackling customer impacting issues

26

Trouble TicketsConfirmation Calls

Between December 30th 2010 and January 12th2011, Only 57% of the contacted customers confirmed that their issue is resolved even though their TTs are

“Closed”.

Issue

Res

olved

Reso

lutio

n Sa

t...

Inte

ract

ion w

...

Cust

omer

did

...

Cust

omer

was

...

Confi

rmat

ion ..

.

Engi

neer

arri

...

Site

visi

t Sat

is...

Over

all S

atisf

a...

57%

92%

79%

55% 57%63%

94% 97%

76%

Resolution

Ove

rall

Satisfied

Front Office

Site Visit

2,059 customers with billing closed TTs between December 30th 2010 and January 12th 2011 were contacted to assess their experience. 670 calls were successfully completed (hit rate: 33%) and the results are represented in the below graph

Back Office / Resolver Groups

18% of the customers had to follow up on the TT 4 times or

more11% of the customers said

that their issue was resolved in more than 14 days

“Payment machines should be present in all malls for easy payments instead of standing in line in shops”

“I don’t know if my issue is resolved, no one called me

back !!”

“Please don’t keep customers waiting without follow up / Etisalat is more

helpful”

“Please answer the calls faster !”

“Don’t Over promise customers, stick to your

committed time”

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Payment Customer Impacts

28

WO5: Waiting TimesDrive down wait times: Short Term Actions Experiment (II)

… some things don´t

Ibn Battuta payment desk

Ibn Battuta payment queue

• A one size fits all approach will not work• Rapid experimentation pays dividends

29

WO5: Waiting TimesDrive down wait times: Short Term Actions Experiment (I)

Some things work:

Al Salam payment queue

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Customer Facing Operations where located in different Organisations

Commercial

Sales

Back Office Retail Sales Enterprise Sales

Customer Care

Contact Centre Back Office

Billing, Payments & Collections

Marketing

Segment Product

Technology

Development Application Support Operations

Solving a customer problem was more about your persistence, knowledge and personal networks.

BeforeOrganisation was not customer centric

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Customer Care – Back Office

Sales Back Office IT

Application Support

& Operation

s

Customer Operations

Customer Facing Operations Merged into one Organisation (March 2011)

Customer Experience Strategy(under Marketing)

CommercialSal

esBack

Office

Retail Sales

Enterprise Sales

Customer

Care

Contact Centre

Back

Office

Billing, Payments &

Collections

MarketingSeg

ment

Produc

t

TechnologyDev

elopment

Application Support

OperationsX

33

Billing Data Points BC01[Jan]

BC32[Jan]

BC62[Jan]

BC07[Dec]

BC17[Dec]

Status Comments

Bill Run started on time(in days) +1 +2 0 +4 0 To be

validated • Delay due to Bill Shock (PCI-MKTG-903)

Total and % of bills rejected by the printing vendor

53(0.05%

)-

(-%)4

(0.07%)

10(0.01%

)

150(0.16%

)To be

validated

BC delivered on time to Emirates Post(in days) +4 - -5 * +5 0 To be

validated• 1099 bills will be delivered late due to Bill Shock• (*) Low volume: 5983 (~1% of bills sent to EmPost

for 5BCs)

% bills delivered on time to Emirates Post(last 30 days)

62% (Dec) To be validated

• Displaying the value using all the BCs from December.

% of bills returned by Emirates Post AUG4.49%

SEP2.13%

OCT0.24%

To be validated

• Last data from 2nd Nov. Backlog to be cleared by Lifecycle Doc. Mgmt. team

% of returned eBills(10/12 – 08/01)

*13%(15%) Validated • (*)Due to the period, data found only for :

- Dec BC07&BC17 and Jan BC01 .

Number/Amount credit notes provided (10/12 – 08/01)

Consumer: 3’859* / 7.46M To be

validated

• (*) 66% less Cons. OCCs (8K Homephone OCCs removed)

• Wrong Intl Charges are 74% (number) and 8% (amount)

• Top 30 data charges issues (0.08%) are 28% (amount)

Enterprise: 32’032 / 6.95M

Number of TTs for billing issues(10/12 – 08/01)

12658(12395) Validated

Number of billing events(10/12 – 08/01)

105023(101240)

To be validated • Validation required against Siebel data

KPI’sBilling

Prin

t & D

ispat

chBi

ll in

quiri

es &

Iss

ues

Bill

Run

Avg 7days Total 30days Snapshot RatioAvg 30 %

%

%

30

30

30

%

%

34

TT Data Points (COB 08/01) Billing Non-Bill Status CommentsAverage speed of answer (CC) 45 seconds (54) To be

validated• Lowest performer: Enterprise Fixed (163 seconds)

Grade of service (CC)69% (62)

To be validated

• Lowest performer: Enterprise Mobile (28%)

Average call handling time (CC) 259 seconds (262) To be validated

• Lowest performer: Consumer Fixed (532 seconds)

First call resolution (CC)95% (95)

To be validated

• Lowest performer: Consumer Fixed (82%)

Created tickets: daily volume (7 day average) 323(417)

1,151(1,025)

Validated

Resolved tickets: daily volume (7 day average)

483(325)

1,072(1,281)

Validated

Average time to resolve (7 day average) 21(-)

6(-)

Validated • 2% data error due to negative durations

% Resolved TTs within SLA 41%(25)

44%(43)

Validated • SLA based on queue, method to be changed Q1 2011

Number of open TTs (outside SLA) 10,307(9,554)

5,434(5,462)

Validated • Post-4th Sep 2010 only, + 1700 open (pre-Sep 2010)

Number of open TTs (within SLA) 2,890(2,850)

1,554(1,469)

Validated • SLA based on queue, method to be changed Q1 2011

Closed tickets: daily volume (7 day average) 273(379)

1,060(1,452)

Validated

Number of repeat calls for open TTs To be validated

• Data sourced from Customer Survey. • Siebel data inaccurate in this area, assumptions

being agreedNumber of repeat TTs within 30 days To be

validated• Sourced from Siebel data• Based on triplet, not root cause of TT

KPI’sTrouble Tickets

Cont

act &

Cre

ate

TTPr

oces

s TT

Reso

lve

TTCl

ose

TT

Avg 7days Total 30days Snapshot RatioAvg 30 %

Avg

Avg

Avg

%Avg

Avg

Avg

Avg

Avg

Avg

%Avg

%Avg

35

WO Data Points Value Status CommentsAverage Waiting Time within the du shops (and percentage within SLA)

Baseline: 20 minutes (1-6 Dec)Current: 19 minutes (2-8 Jan)

Validated -Including Fix/Mobile, Consumer/Enterprise-Not all shops have QS (e.g. Mall of Emirates)

Average Transaction Time for WO creation (and percentage within SLA)

Not yet available

-Data source: Siebel-No current Siebel report available

Average Service Time (and percentage within SLA)

Baseline: 10 minutes (1-6 Dec)Current: 10 minutes (2-8 Jan)

Validated -Including Fix/Mobile, Consumer/Enterprise-Not all shops have QS (e.g. Mall of Emirates)

Order Abandon ratio within 30 minutesBaseline: 830/weekCurrent: 425/week (1 Jan - 7 Jan)

To be validated -Data source: Siebel (currently ad-hoc report)-Information source not validated

Orders pending older than 48 hours Baseline: 4300Current : 706 (9 Jan)

To be validated-Including Fix, Consumer/Enterprise-Data source: Siebel (currently ad-hoc report)-Information source not validated

Orders in progress (greater than 1 month)Baseline: 3075Current: 2040 (7 Jan)

To be validated-Including Fix, Consumer-Data source: IT WO failure & In-Progress Dashboard-Information source not validated

Rejected orders by OMD back to sales by reason

Baseline ~70 per day To be validated -Data source: NetCracker ad-hoc report

-No current NetCracker report measuring this activity

Percentage of WOs affected by system failureBaseline <1% since mid Nov Current: ~0% (7 Jan)

To be validated-Data source: IT WO failure & In-Progress Dashboard (OM+)-Information source not validated

Orders rejections from Logistics queue Not yet available

-Data source: NetCracker report-No current NetCracker report measuring this activity

Orde

r Cap

ture

Orde

r Ful

fillm

ent

Avg 7days Total 7days Snapshot RatioAvg 7d %

Avg

Avg

Avg

Avg

Avg

Avg

Avg

KPI’sWork Orders (1/2)

Target System WO Universe

DWH

DWH

DWH

DWH

DWH

DWH

DWH

DWH

36

WO Data Points Value Status CommentsNo of unsuccessful appointment (vs. scheduled)

Baseline: 6 (2%) (16 Dec)Current: 11 (4%) (9 Jan)

To be validated-Including Fix, Consumer-Data source: Siebel and Tech Ops daily visit report-Information source not validated (triplets analysis required to ensure accuracy)

No of late appointments (vs. scheduled)Baseline: 14 (5%) (16 Dec)Current: 6 (2%) (9 Jan)

To be validated-Including Fix, Consumer-Data source: Siebel and Tech Ops daily visit report-Information source not validated (triplets analysis required to ensure accuracy)

Completion SLA performance (by order type), only without FE needed

Not yet available

-Including Fix, Consumer/Enterprise-Data source: Business Object’s new universe (to be deployed and populated)-SLAs need to be defined (based on the different actions within the WO)

Average Work Order duration where no FE is needed (and percentage within SLA)

Not yet available

-Including Fix, Consumer-Data source: Siebel. Work Order types to be defined-Information source not validated

Percentage of MRC activations right first time Not yet available

-Including Fix, Consumer-Data source: Business Object

Average mobile activation request duration (and percentage within SLA)

Not yet available

FE V

isit

Add

to B

ill &

Clos

ure

Avg 7days Total 7days Snapshot RatioAvg 7d %

%

%

Avg

KPI’sWork Orders (2/2)

Target System WO UniverseDWH

DWH

DWH

DWH

DWHAvg

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KPI Challenges and Learning's

What we don’t measure we cannot improve

Capturing the right

KPI’s

Capturing and

Reporting data from the most accurate source

Interpreting what the

real issue is and how to improve

Every KPI should have a Target &

Accountable individual

Thank you !

Matthew MasonSenior Director Billing Payments & CollectionsMatthew.Mason@du.ae+971 55 606 8745