customer relationship management – consulting approach – munich, june 2000
DESCRIPTION
Customer Relationship Management – Consulting approach – Munich, June 2000. Roland Berger & Partner GmbH – International Management Consultants - PowerPoint PPT PresentationTRANSCRIPT
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Roland Berger & Partner GmbH – International Management Consultants
Barcelona – Beijing – Berlin – Brussels – Bucharest – Budapest – Buenos Aires – Delhi – Detroit – Düsseldorf – Frankfurt – Hamburg – Kiev – Kuala Lumpur – LisbonLondon – Madrid – Milan – Moscow – Munich – New York – Paris – Prague – Riga – Rome – São Paulo – Shanghai – Stuttgart – Tokyo – Vienna – Zurich
Customer Relationship Management
– Consulting approach –
Munich, June 2000
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This document was created for the exclusive use of our clients. It is not complete unless supported by the underlying detailed analyses and oral presentation. It must not be passed on to third parties except with the explicit prior consent of Roland Berger & Partners.
Content Page
A. Introduction 3
B. Project objectives and scope 12
C. Approach 16
C.1 CRM target setting 19
C.2 CRM strategy and technology concept 34
C.3 CRM implementation 74
D. References 77
E. Appendix: Supporting tools to implement CRM 81
E.1 The Internet as a supporting CRM tool 82
E.2 The call center as a supporting CRM tool 93
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A. Introduction
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The importance of an integrated Customer Care approach receives increasing awareness at top management level all over the world
Source: Forrester Research, basis: 50 Sales managers of Fortune 500 companies
"Do you have a single, integrated view of the customer today?"
"Do you have a single, integrated view of the customer today?"
"How important is a single, integrated view of the customer across your company"
"How important is a single, integrated view of the customer across your company"
48 %
44 %
6 % 2 %
Very important
Critical
Somewhatimportant
Not at all important 2 %
10 %
52 %
36 %
Yes
Somewhat
Not really
Not at all
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In the future, a company's value will increasingly depend on the value of its customer base
Factors influencing corporate valuation
Market value addedmethod
Market value addedmethod
Discountedcashflow method
Discountedcashflow method
Multiplesmethod
Multiplesmethod
Customer lifetimevalue method
Customer lifetimevalue method
Customer acquisi-tion cost method
Customer acquisi-tion cost method
Industrialsociety
Informationsociety
Traditional industrial companies,
e.g. manufacturing industry
Service companies, e.g. consulting firms, software companies
Internet companies
Assets
Employeebase
Customer base
Source: Roland Berger & Partners
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The value of the customer base is determined by the key factors individual customer value and size of the customer base
Value of customer base – corporate value
Increasedcorporate value
Increasedcorporate value
Higher customer net present value
Higher customer net present value
Higher absolutenumber of customers
Higher absolutenumber of customers
Customer cashflows
Number of customers
An
nu
al p
rofi
t/c
ust
om
er
1
2 3 4 5 6 7 8
Price premiums
Recommendations
Cost savings
Sales growthper customer
Base profit
Acquisition cost
Customerretention rate
New customeracquisition rate
[%]
t
+ +x%
Source: Roland Berger & Partners
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The market value of the leading InfoCom companies clearly exceeds that of OEMs – the customer base is the key success factor
Source: Roland Berger & Partners analysis
Overview of customer ownership and market value
44
90
112
189
228
300
376
405
42
80
67
40
14
28
20
90
4001,128
VW
GM
Ford
Yahoo!
Mannesmann
Vodaphone/Airtouch
AOL
Nokia
Microsoft
Number of customers in millions (12/99) Market value in DM billions (12/99)
DM 1,000/customerDM 1,000/customer
DM 1,100/customerDM 1,100/customer
DM 1,700/customerDM 1,700/customer
DM 4,700/customerDM 4,700/customer
DM 16,300/customer
DM 16,300/customer
DM 10,700/customer
DM 10,700/customer
DM 18,800/customer
DM 18,800/customer
DM 4,500/customerDM 4,500/customer
DM 2,800/customerDM 2,800/customer
Points of customer contact
• Shopping• TV/media• Telephone/mobile
• Banking• Sport• Car
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Managing the customer relationship is a key lever to increase shareholder value
Market and customer valueExample
Managing the customer relationship
Market value
(bn Euro)
Customer Value(Euro)
Today
0.4
12/99
1.000 (Current)
0.6
3.6
Potential
Future
1.500 (Microsoft)- 9.000 (AOL)
Calculation basis: 400.000 customersSource: Roland Berger & Partners
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CRM is a strategy designed to increase individual customer value by establishing a long-term and systematic customer relationship
Learning relationship
Generating/ recording
customer data
Ongoing customer
relationship
22
33
44
11
Identification
Informationanalysis• Customer
profiles• Forecasting
buying behavior• Monitoring
success
Initial contact with customer
00
Developing customer benefits, e.g. • Value-added
services• Customized offers
• Increased customer retention
• Wider range of services
• Higher efficiency in contacting customers
Source: Roland Berger & Partners
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The „knowledge cycle“ is the key to successful CRM when dealing with customers
Actions to support network effects
Source: Hagel/Armstrong; Roland Berger & Partners
Community-generated content
• Online discussions for members• Create profiles
Partnerships with other organisations
• Cross advertising• Partnerships with road side
assistance
Creation of a market place/auction
• Shopping malls• Partnership with auction provider
Questionaires on the net • Experience with a product• Customer history/profile
Need to log-in for each member
• For newsletters• For membership
Continous report of individual information
• Monitoring of web-usage (focus of interest)
Promotions of member- to-member interaction
• Personalized e-mail system for members
• Personal web pageCustomized interaction • Service reminders
Conserving relationships
• Product updates• Archive of chat contributions• Bonus programmes (e.g.
web miles based on after sales frequency)
Increased content attractivity
Better knowledge about the client
Higher loyalty
Examples
Examples
Examples
Increasing return of
marketing & Sales
1.
2.
3.
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The key lever for CRM success is the Internet innovative options for individual customer contact
3
1
2
Maximumcustomer potential
Maximumvolume
Product/service rangeaddressed
Currentcustomer
value
Marketing/sales cost
Enhanced loyalty: Changing occasional customers into loyal customers
• Internet as convenience channel• Individual communication, e.g. my.com sites• Information-based value-added services
1
Opportunities offered by the Internet
Broad-based customer communication: Cross selling
• The Internet is used to collect information other than the individual product/service range
• The Internet is used to address a wide range of products
2
More efficient contact: Cost savings
• The Internet is a low-cost sales channel• Option to provide individualized information
(example mail-order: Catalogues tailored to customer profiles)
3
Source: Roland Berger & Partners
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B. Project objectives and scope
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The strategic goals aim at sustainable growth and profitability
Enhance identification, segmentation, conquest and
loyalty of customers
Strategic goals of CRM
Having a clear idea of the customers’ current and future needs
Reinforcing the awareness of the Group and of its service mix
Increasing customer satisfaction
Responding quickly and efficiently to the customer bearing in mind its
economic value
Source: Roland Berger & Partners
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The project objectives aim at a seamless implementation of CRM from vision to systems integration
CRM project objectives
Create a strong CRM vision and focus areas with highest business potential
Create a strong CRM vision and focus areas with highest business potential
Translate CRM vision into bold CRM strategy combined with a customized technology concept
Translate CRM vision into bold CRM strategy combined with a customized technology concept
Ensure a sustainable implementation supported by reliable CRM processes and systems
Ensure a sustainable implementation supported by reliable CRM processes and systems
Source: Roland Berger & Partners
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The project covers the entire business-channel matrix with CRM applications to attract, penetrate and retain customers
CRM applications
• Personalized customer dialogue
• Personalized offerings
• Customer retention module
DirectOwn
concess
SIVA
INTERBANCO
COMEPOR
Channel
Business
Business-channel matrix
3rd partyconcess.
MULTIRENT
Tele-mktg.
Promo-tors
Inter-banco
Multi-rent
Inter-net Stores
Inter-national
LGA
SIXT
RETALHO
Example
Source: Roland Berger & Partners
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C. Approach
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ImplementationImplementation
The approach to define and implement Customer Relationship Management consists of three phases
ObjectivesObjectives
Target settingTarget setting CRM strategy andtechnology conceptCRM strategy and
technology concept
1 2 3
• Analysis of customer
requirements
• Benchmarking and Best
Practice analysis
• Evaluation of existing CRM
measures
• Development of CRM vision
and target system
• Estimation of potentials
Source: Roland Berger & Partners
• Development of a detailed
CRM strategy within the
overall sales & marketing
strategy
– Personal customer
dialogue
– Personalized offerings
– Customer retention
• Designing a technology
concept in co-operation
with CRM systems
providers
• Set up of detailed CRM
business case
• Implementation of CRM
strategy and technology
concept (work program to
be detailed during phase II)
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The customer relationship management strategy can be ready for implementation in 4.5 months
Project monthActivity
1 2
1 Target setting
2. CRM strategy
– Personal customer dialogue
– Personalized offerings
– Customer retention program
– Process and organizational implications
– Pilot implementation
3. Technology concept
– IT-Audit
– Data-model and IT-infrastructure plan
– Software and service provider selection
4. Implementation
3 4
Source: Roland Berger & Partners
Timing
5
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C. Approach
C.1 Target setting
C.2 CRM strategy and technology concept
C.3 Implementation
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?Key questions „target setting“
• What customer segments are addressed by the CRM strategy and what are the segment-specific customer requirements?
• Which benchmarks and best practices can be derived from automotive and non-automotive CRM applications?
• How is current customer information deficit to be tackled?
• To what extent can the project build upon existing CRM measures in the Group?
• What is the vision as the guideline to define the CRM strategy?
• What are quantified and measurable targets to evaluate business options and to track the implementation process in a consistent way?
• What overall business potential (additional revenues and improved margins) is associated with the implementation of CRM?
Source: Roland Berger & Partners
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The „target setting“ phase can be completed within 4 weeks (1)
Project weekActivity
1 2 3 4
Work schedule „target setting“
1.Analysis of customer requirements
– Definition of relevant customer segments for the CRM strategy
– Identification of segment specific requirements with regard to CRM applications
2.Benchmarking and Best Practice Analysis
– Identification of relevant benchmarking targets
– Gathering of bechmarking data from RB&P databases and external sources
– Definition of relevant benchmarks and best practices
3.Evaluation of existing CRM measures
– Analysis of existing point-of-contact structure of customers
– Documentation and evaluation of existing CRM activities
Source: Roland Berger & Partners
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The „target setting“ phase can be completed within 4 weeks (2)
Project weekActivity
Work schedule „target setting“
4.Development of the CRM vision and target system
– Break down of CRM goals into detailed targets
– Definition of target weights and measures
– Set up of balanced score card for entire project
5.Estimation of potentials
– Estimation of segment-specific revenue and margin improvements
– Rough assessment of cost and investment requirements
1 2 3 4
Source: Roland Berger & Partners
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The analysis of customer requirements will deliver segment-specific CRM related needs
Business to businessBusiness to businessBusiness to consumerBusiness to consumer
• Cost reduction
• Reduction of processing times
• Service degree/access to services
• Convenience
• Information "on demand"
• Individual problem solving
• Entertainment
• Price advantages
Customer needsCustomer needs
• Quality of service
• Efficiency improvement
• Innovative business models
• Customer loyalty/penetration
• Reach new customers
• Brand image
ObjectivesObjectives
1) Fleets/direct customers
Source: Roland Berger & Partners
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…
Benchmarking and best practice analysis will reveal feasible and attractive CRM opportunities
Example: CRM related content at Porsche
Post cards• Via e-mail• Collects sender and
recipient addresses
Company links• No data entry• Personalization via
cookies onlyTravel club• Different travel offers• Online application• Total personalization
Porsche newsletter• Newsletter
subscription• Collects e-mail
addresses Guest book• No personalization
since only entry of name required
Games• Simple little games• Personal information entry
required in order to be listed in high score tables
Source: Roland Berger & Partners
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Transferable best practices can also be derived from non-automotive benchmarking targets
Bonus program
Customer-specific
Customer segment-
specific
No customiz-
ation
Own product/ service range
Entire demand range
Degree of individuality
Degree of demand coverage
Holistic CRM
players
Cross-selling
No
Yes
Source: Roland Berger & Partners
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Particularly the airline industry is leapfrogging the development in customer retention programs including personalized services for target segments
• American Airlines• Internet market entry of www.aa.com in 1995• Objectives: Online bookings from US$ 1.7 m per day (max.) in
1998 up to US$ 500 m total in 1999, further expansion of one-to-one customer customer relations
• Earning miles: – Fly (AA, BA, Canadian Airlines, Cathay Pacific, Finnair, Iberia,
Quantas Airlines, Japan Airlines, Swissair, etc.)
• Each Internet visitor receives an offer tailored to her/his history and individual profile
• At present, there are > 35 m AAdvantage-members, 1.7 m of which have already visited the Internet website
General information Product/service range and partners
Personalized Internet services Success
– Hotels (Best Western, Holiday Inn, etc.)– Car rentals (Alamo, Avis, Hertz, etc.)
– Shopping (Golf, Dining, etc.)• Using miles:
– Fly, hotels, car rentals, trips
• Top-tier Aadvantage members have access to a personalized AA page
• More than 35 % of the top-tier members use the online offer• Record-booking day 1998: US$ 1.7 m
Source: Roland Berger & Partners
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The points-of-contact analysis is supported by specific tools and results in a rough estimate of how CRM functions can be optimally applied
Segment-specific points-of-contact analysis supported by tools
Transaction
Channels
Internet
Call center
Sales force
Logisticsservices
Presales Sales After-sales
Customer segment A
Customer segment B
Customer segment C
Points-of-contact tool
• What are the points of contact?
• What information is generated at these points?
• How is this information aggregated/ evaluated/utilized?
• What additional information should be collected (cost orientation)?
• What further points of contact should be set up?
• What analysis results are to be expected from the future information base?
• How wide/detailed are future customer profiles?
• What is the presumed frequency/intensity of the points of contact?Etc.
Source: Roland Berger & Partners
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Life cycle management Information and complaint mangement
Customer service concept Segment-specific programs
Source: Roland Berger & Partners
Existing CRM activities will be evaluated in terms of their potential of being integrated into the overall CRM strategy
Lack of strategic direction and process
orientation
Customer life cycle management• Prospective customer service• Customer service pre-sales• Customer service after sales• New customer program• Reactivation/recovery programs
Vehicle cycle management• Service card (planned first
upgrade)• Service program
Segment II/III
Integrated customer life and vehicle cycle management• Service card (planned second upgrade)
Information management• Prospective customer service
Complaint management• Definition of response times• Catalog of rules for cooling off customers• Proactive reactivation/recovery appeal
Trade service program• Customer retention • Service coupons
Service program• New media/electronics• Real-space worlds
– Forum– Representation– Forum for technology/history
• A Plus expanded services – Tourism– Expansion of assistance
• Brand/oldtimer club• Mobility guarantee
Premium program• VIP service
Other customer groups• Companies
– Fleet management– Industrial customer service– Major customer service
• Taxi customers– Taxi customer program
Age group program• Youth
– Youth program
Project example: Analysis of existing CRM activities for premium OEM
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CRM player C
The vision will define the future positioning towards the customer relationship
• Address attractive customer segments in many parts of the demand range
• Cover product/service range with the help of partners
• Establish and trade own currency (e.g. "Miles", "Buxx")
• Personalize offer and pricing based on customer behavior
• Use the Internet (via different access media) as main channel to reach the customer
• Cut other companies from customer access
Customer retention vision 2005: “Total Customer Ownership”
CRM player B
CRM player A
Financial Service
Mobiletelecom.
Gro-ceries
Ele-tronics
Mobility
CD/books
Personalized offer
Illustrative
Source: Roland Berger & Partners
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The evaluation of the target system will allow the definition of a clear hierarchical order….
IllustrativeTarget system CRM strategy (1)
Increase shareholder value
Increase shareholder value
Improve profitability
Improve profitability Sustain growthSustain growth
Overall
General
Operating
Product - specific
Source: Roland Berger & Partners
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… that will translate into a scorecard required in the first phase to evaluate business options
Target system CRM strategy (2)
Phase 1Phase 1
Objective Weight
Objective
Sub-objective 1
Operating objective
Operating objective
…
Sub-objective 2
Operating objective
Operating objective
…
0,5
0,2
0,05
0,1
0,3
0,15
0,1
Evaluate businessoptions
Evaluate businessoptions
Phase 2Phase 2 Phase 3Phase 3
Monitoring
…
Performance measure
…
Today
…
Goal
…
When
…
Implementationmilestones
Implementationmilestones
Derive performance targets from selectedbusiness options
Derive performance targets from selectedbusiness options
Illustrative
Source: Roland Berger & Partners
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The individual weights of the targets will be defined interactively and represent their relative importance
Project example: target system for e-commerce strategy
Increaseshareholder-
value
Improveprofitability
(31%)
Strengthenbrands(35%)
Increasechannelcontrol(34%)
•Avoidance of lost sales (7%)
•Increase of sales (6%)
•ECOM ROI (6%)
•Channel cost reduction
(6%)
•Improved planning (6%)
•Customer retention (8%)
•Conquest (7%)
•Image contribution (7%)
•Web-site fidelity (6%)
•Compliance with brand
strategy (7%)
•Control of customer
data/ prospects (9%)
•Service quality (7%)
•Group-coherent offering (6%)
•Top-3 competitive offer (5%)
•Time-to-market (7%)
Source: Roland Berger & Partners
Example
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In the course of the actual potential estimation, parts of the customer strategy development have to be anticipated
Segment-specific estimation of potential[Based on business plan]
Prod./service range
Segment
A
B
C
D
Own product/service range
Spectrum to be addressed
N
Prod./serv. range
Segment
A
B
C
D
Resultspectrum
Spectrum to be addressed
N
Focus segments
Trans-action
Channels
Internet
Call center
Sales force
Logisticsservices
Presales Sales After-sales
Expected sales(at optimum CRM use)
Expected sales(at optimum CRM use)
Cost
Realistic CRM potential
Estimating segment-specific potential
Identifying focus segments Estimating CRM cost
Etc.
• Frequency• Degree of individualization• etc.
Source: Roland Berger & Partners
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C. Approach
C.1 Target setting
C.2 CRM strategy and technology concept
C.3 Implementation
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?Key questions „CRM strategy and technology concept“
• What are the opportunities to intensify the dialogue with the customer and improve customer knowledge to increase customer loyalty and cross-selling?
• What are the most promising business options to develop personalized customer benefits through customized offers and value added services?
• What are the most promising business options to establish an ongoing customer relationship through customer retention programs?
• What are the necessary adaptations in processes and organizational structure to implement CRM?
• What is the main impact on the existing IT-Infrastructure due to “translating” strategy definitions in IT-Logic?
• Which functionality could be implemented by choosing “best of bread” software components?
• What efforts have to be done to reach quick and lasting results in a stable IT-environment?
Source: Roland Berger & Partners
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D.2.1 CRM strategy
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The CRM strategy can be completed within 14 weeks
Work schedule "CRM strategy"
Source: Roland Berger & Partners
Project week Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1. Personal customer dialogue
– Concept– Pilot implementation
2. Personalized offerings– Concept– Pilot implementation
3. Customer retention program
– Concept– Pilot implementation
4. Process and organizationalimplications
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Personal customerdialogue
Personal customerdialogue
Personalizedofferings
Personalizedofferings
Customerretention
Customerretention
Process andorganizatinalimplications
Process andorganizatinalimplications
• Develop business options per action field– Content– Contact frequency– Customer contact points
• Evaluate and select busi-ness options according to the target system
• Develop criteria catalogue for the technology concept
• Derive control measures
• Define core competencies/ make-or-buy
• Integrate external service providers
• Define processes/ process changes, clearly integrated into existing marketing & sales processes
• Derive organizational structure
• Change management/ transformation
• Develop business options per action field– Bonus programmes– Communities– My.com sites – etc.
• Evaluate and select busi-ness options according to the target system
• Detail business options – Scope (customer seg-
ments/ business units)– Content– Functions/processes– Partnering concept– Business plan
• Develop business options per action field– Products-/services range– Cross-selling– Degree of individualiza-
tion
• Evaluate and select busi-ness options according to the target system
• Detail business options– Customer contact/ fore-
casting– Partnering concept– Business plan
Four steps will derive a winning CRM strategy
Project approach CRM strategy development
Source: Roland Berger & Partners
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How to individualize customer contact: Personal customer dialogue
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?Key questions „Personal customer dialogue“
• Based on the customer contact analysis of phase I: At which contact points should the customer dialogue be intensified? Are the current contact points sufficient? What are additional opportunities to contact the customer in the most efficient way to further increase customer loyalty and cross-selling?
• What are the data requirements for an efficient customer dialogue? Which techniques should be applied in order to forecast customer buying behavior?
• What are the necessary adaptations among the different companies within the Group in terms of customer contact points, content and contact frequency in order to ensure maximum efficiency of the customer dialogue?
• What are the appropriate control measures to safeguard the achievement of the targets set in phase I?
Source: Roland Berger & Partners
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The personal customer dialogue concept can be completed within 6 weeks
Project weekActivity
1 2 3 4 5 6
1.Development of business options for personal customer dialogue
– Assessment of the current personal dialogue activities among the Group’s companies based on the results of phase I
– Selection of the relevant focus action fields
– Development of business options per action field (across companies/ company-specific)
– Evaluation and selection of the business options according to the target system
2.Development of a criteria catalogue for the technology concept
– Define data requirements and layout customer database
– Cross-check with data availability
– Data aggregation/networking
– Definition of analysis and forecasting routines
3. Definition of control measures
– Definition of the appropriate control measures per business option
– Establish reporting routines
4. Pilot implementation
Source: Roland Berger & Partners
Work schedule „Personal customer dialogue“
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CRM business models will be defined for existing and new products and services
New business models
Currentproductservices
Personaldialogue
Personalizedoffers
Customerretention
1 2 3
Flexible leasing offers
Servicereminder
Smart bonuscard
Source: Roland Berger & Partners
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For the strategically most attractive action fields several business options will be developed
Source: Roland Berger & Partners
Illustrative
Lifestyle-oriented newsletter with content partners
Lifestyle-oriented newsletter without partners
…
Indirect customers captive
Expected impact from
changesChange effort
Neither time nor resource intensive
Either time or resource intensive
Time and resource intensive
EvolutionTrans-
formationRevolu-tion
Front-office
Newsletter with mainly product-oriented content
1
2
3
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The business options developed are evaluated in qualitative terms in consideration of the target system
Qualitative evaluation of business options
Product-oriented newsletter
…Lifestyle-oriented news-letter without partners
Business optionsWeightingCriteria
• Sales potential 0.2
• Efficiency increase 0.2
• Customer retention 0.25
• Potential to conquer new customers
0.3
Total
Source: Roland Berger & Partners
+ o
+ o
o ++
o ++
Illustrative
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The evaluation according to the target system ensures stringent prioritization across all project modules
Improve profitability Strengthen brands Increase channel control
Positive impact No impact
Incr
ea
se o
f sa
les
RO
I
Cha
nn
el c
ost
re
duct
ion
Imp
rove
d p
lan
nin
g
Cus
tom
er
rete
ntio
n
Con
qu
est
Ima
ge
con
trib
utio
n
Web
- si
te f
ide
lity
Com
plia
nce
with
b
ran
d s
trat
eg
y
Con
tro
l of
cust
ome
r d
ata
/pro
spe
cts
Ser
vice
qua
lity
Gro
up
coh
ere
nt
off
erin
g
To
p 3
co
mp
etit
ive
o
ffer
Tim
e-t
o m
ark
et
Avo
ida
nce
of
lost
sa
les
E-fleet ordering
On-line service appointments
Priority 1
Priority 2
Evaluation of B2B options versus target system
Σ
11.5
Flexible fleet 9
On-line test drive booking
9.5
9
Project example
Source: Roland Berger & Partners
- 46 - Discussion_Paper_SAG.ppt
A customer data model allows high-quality data analysis and enormously reduces data maintenance work
Customer data modelCustomer data model
Value creation through customerdata model
Value creation through customerdata model
High-quality data analysis Reduce data maintenance
CRM system country A CRM system country B CRM system country C
Country-specificadaptation of data
Basis for CRM processes
Unique and minimal definition of persons/individuals, attributes, code structures, and relationships
Project example
Source: Roland Berger & Partners
- 47 - Discussion_Paper_SAG.ppt
The relationality of the customer database allows comprehensive data management
Model
Partner-vehiclerelation
Partner vehicleservice
Vehicle
Company
Exclusionflags
Partnerservice
Person
Lifestyle
Partner-dealerrelation
Contact
Partner-addressrelation
Address
Dealer
CaseContact case
relation
Campaign
Project example
Source: Roland Berger & Partners
Database structure
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How to maximize customer benefits: Personalized offerings
- 49 - Discussion_Paper_SAG.ppt
?Key questions „Personalized offerings“
• What are the most promising products and services for personalization to maximize customer benefits and thus increase customer loyalty and cross-selling?
• What is the optimum degree of personalization with regard to the requirements and potentials of the different customer segments?
• How can the input from personal customer dialogue be utilized to forecast customer buying behavior and thus optimize the efficiency of the product’s/services’ customization?
• To what extent should external partners be involved to complement the existing product/service range to further increase customer benefits?
Source: Roland Berger & Partners
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The module “Personalized offerings” can be completed within 6 weeks
Project weekActivity
4 5 6 7 8 9
1.Development of business options for personalized offerings
– Screening of current product and service range to determine the products and services with the highest potential for personalization
– Development of business options for the defined products and services
– Definition of the optimum degree of personalization with regard to the requirements and potentials of the different customer segments
– Evaluation and selection of the business options according to the target system
2.Detailing selected business options for implementation
– Synchronization with personal customer dialogue in terms of contacting customers and forecasting customer buying behavior
– Partnering concept to complement offers and fulfillment
– Development of a business plan per business option
3. Pilot implementation
Source: Roland Berger & Partners
Work schedule „Personalized offerings“
- 51 - Discussion_Paper_SAG.ppt
The Internet is a key lever for personalized offerings
Source: Roland Berger & Partners
Content Processes/functions
• Demarcating the field of application in terms of product/service range and focus segments
• Defining control ratios for the degree of individualization, e.g. – Status (sales)– Potential– Internet affinity– Contact frequency
• Designing the Internet points of contact, e.g. – IT-based value-added services– Pricing– Product/service range– Rewarding– Templates for my.com site
• Detailed trigger definition (acting vs. reacting)
• Finding partners for external services and logistics requirements
• Processes– Integration into existing
sales/marketing processes– If necessary, defining new
processes(e.g. logistics, individualized production)
• IT infrastructure focusing on the Internet and database marketing
• Implementation within the organization
- 52 - Discussion_Paper_SAG.ppt
Dependant on the perceived customer benefit and the necessary change effort the most promising business options for personalized offers will be selected
Selection criteria personalized offers
high
low
Perceived customer benefit through level of differentiation
lowhighChange effort• Processes• Resources• Time
Your personal assistant
Flexible leasing
Personalized e-mail newsletter
Recall & service bulletins
Online vehicle history
Source: Roland Berger & Partners
Illustrative
- 53 - Discussion_Paper_SAG.ppt
The selected business options will be assessed in detail
Overview of “Flexible fleet” process
• Leasing program with no predefined vehicle
• On-line functionality provides users with the opportunity of choosing cars from a car pool
• Strict data tracking provides insights into customer behavior and serves as input for a learning customer rela-tionship
Company siteCompany site Fleet managerFleet manager Fleet userFleet user Leasing companyLeasing company
• Logs into NSC site
• Requests car
Validationprocedure Eligibility check
Car availability
Proposal for availability and
“price”Choice
Confirmation
Forwarding
For scheduling pick-up For records/admini-
strative proceduresSource: Roland Berger & Partners
Project example
- 54 - Discussion_Paper_SAG.ppt
How to develop ongoing customer relationship: Customer retention
- 55 - Discussion_Paper_SAG.ppt
?Key questions „Customer retention “
• What are the most promising business options to establish an ongoing customer relationship through customer retention programs?
• What are the criteria to be applied for customer segmentation to release the maximum potential of the customer retention program?
• How does the ideal partnering concept look like to complement the companie’s program in terms of content, reach and fulfillment? What is the most promising branding concept?
• What are the requirements in terms of database structure to most efficiently support the retention program and leverage the additional data generated with regard to a learning customer relationship?
Source: Roland Berger & Partners
- 56 - Discussion_Paper_SAG.ppt
The module “Customer retention” can be completed within 6 weeks
Project weekActivity
7 8 9 10 11 12
1.Development of business options for customer retention programs
– Screening of alternative customer retention concepts
– Benchmarking of best practices from automotive and non-automotive companies
– Description of feasible business options
– Evaluation and selection of the business options according to the target system
2. Detailing selected business options for implementation
– Define scope (customer segments/companies included) and content of the retention program
– Detail underluying processes and functions
– Partnering concept to complement the companie’s program in terms of content, reach and fulfillment
– Definition of database requirements for data support and optimum utilization of data generated
– Business plan development
3. Pilot implementation
Source: Roland Berger & Partners
Work schedule „Customer retention“
- 57 - Discussion_Paper_SAG.ppt
A successful customer retention program requires the use of smartcards
Source: Roland Berger & Partners
Content Processes/functions
IT infrastructure
• Establishing the bonus program, incl. rewarding and status concept
• Cost-benefit check
• Database-marketing concept
• Defining card functions, e.g. – Identification– Payment function– etc.
• Specifying card processes, esp.– Processing of applications– Billing– Service centers
• Designing a card concept, incl.– Card type (chip, magnet, hybrid)– Reading/writing devices– Card management system
• IT infrastructure (safety, interface integration, etc.)
Susan Sample
Gold member
6653 1239 3976
- 58 - Discussion_Paper_SAG.ppt
Customer segmentation Customer retention program
Systems Partnering
Source: Roland Berger & Partners
Lufthansa’s “Miles&More” is an example for a comprehensive and highly successful customer retention program
• Customer segmentation according to flight miles with Lufthansa or partnering airlines
• Differentiated customer contact concept: Communication budget– Frequent travellers: 43 DM p.a.– Basic customer: 6 DM/p.a.
• Miles & More loyalty program for frequent travellers
• 3.6 million members, thereof– 1.6 million active members– 220.000 frequent travellers
• Increase in frequent travellers ~20 % p.a.
• Database management and IT-systems as a core competence within the marketing & sales organization
• Continuous extension extension of the loyalty program through broad-scale partnering concept – Star Alliance– Hotels– Car rental companies– ...
Benchmark
- 59 - Discussion_Paper_SAG.ppt
Communities like the “BMW drivercircle” are innovative, target group-oriented customer retention programs using the interactive potential of the Internet
BMW drivercircle community
Live-chat with BMW managers
Contact with other 7-series drivers
("Web-community")
News and innovations concerning 7-series
Personal e-mail account
Direct connection to BMW• Check vehicle-manu-
facturing schedule• Information about BMW
employees, plants ...
(Access with password only for 7-series drivers)
Source: Roland Berger & Partners
Benchmark
- 60 - Discussion_Paper_SAG.ppt
A personalized portal is a powerful tool to increase customer loyalty as well as to attract and conquer new customers
Source: Roland Berger & Partners
Personalized portal
My Link to Info-Terminal My Stocks Auctions
Travel / Ticketing Direct-BankingPeople & Chat
My Chat
Shopping My Weather
My News My SportsMy TV ListingsMy Horoscope
Yellow Pages
Region City
Communities
TK & IT Flirt
Search Engine /My Searches
My Reminders /My Favorite Links
Illustrative
- 61 - Discussion_Paper_SAG.ppt
Process and organizational implications
- 62 - Discussion_Paper_SAG.ppt
?Key questions „Process and organizational implications“
• What are current or future core competencies to be safeguarded respectively further extended?
• What are possible areas for integrating external service providers to complement the companie’s competencies, based on a make-or-buy decision?
• How do future CRM processes and their interlinkages with the existing marketing and sales processes look like? What are the necessary process adaptations?
• What are the implications on the organizational structure?
• What is the role of change management to ensure a smooth transformation towards the implementation of CRM?
Source: Roland Berger & Partners
- 63 - Discussion_Paper_SAG.ppt
The module “Process and organizational implications” can be completed within 4 weeks
Project weekActivity
11 12 13 14
1.Definition of the optimum degree of vertical integration
– Definition of core competencies
– Make-or-buy analysis
– Screening potential external partners
2. Assessment of core CRM processes and process changes
– Definition of core CRM processes in terms of information and transaction
– Analysis of interlinkages with the existing marketing & sales processes
– Derive necessary process adaptations
3. Implications on the organizational structure
– Definition of necessary functional competencies and capacities
– Integration of CRM into existing marketing & sales organizational structure
Work schedule „Process and organizational implications“
Source: Roland Berger & Partners
- 64 - Discussion_Paper_SAG.ppt
CRM is a key process within marketing & sales
Maximum value creation per customer for all products/services
Maximize market value
Zero-defect delivery
Increase loyalty/ conquer target
customers
Minimum processing time with maximum demand
satisfaction
Brand management
Product-/services lifecycle management
Customer relationshipmanagement
Sales planning/control and "order-to-delivery"
Services
ET/accessories
...
NSC, importer
Retail
New/pre-owned vehiclesSales + Service
• Fleet business
• Directbusiness(e-commerce)
• Area sales
Project example
Source: Roland Berger & Partners
- 65 - Discussion_Paper_SAG.ppt
The core processes will be mapped in detail with special regard to the customer data flow
Pre-sales Sales Monitor delivery
Data flow E-fleet ordering
Fleet managerFleet manager
DealerDealer
LeasingcompanyLeasingcompany
NSCNSC
Providesaccess code
Receives basiccustomer data,saves car request
Receives customer data, car request
Provides saved carconfigura-tion
Receives customer information/order details from orderform
Receivesorder formfor approval
Receivesorder formfor approval
Receivesapproval
Receivesorder forrecords
Receivesorder fordeliveryscheduling
Receivesorder forrecords
Provides deli-very data to customer
Source: Roland Berger & Partners
Project example
- 66 - Discussion_Paper_SAG.ppt
The necessary organizational structure will be derived in order to establish CRM
Dimensioning sales initiation phase
Task Capacity
General Manager
ECOM Region / Market Manager
Quality Manager ECOM (QME)/ECOM Platform Manager
Toolbox Concept Manager
Partnership Manager
ECOM-Technology / IT-Manager
ECOM-Controller
Secretary
Total
1
5
1
2
1
2
1
1
14
Dimensioning direct sales phase
Task Capacity
General Manager
ECOM Region / Market Manager
ECOM Sales Manager
Quality Manager ECOM (QME)/ECOM Platform Manager
Toolbox Concept Manager
Partnership Manager
ECOM-Technology / IT-Manager
ECOM-Controller
Secretary
Total
1
5
5
3
2
3
4
1
2
26
Source: Roland Berger & Partners
Project example
- 67 - Discussion_Paper_SAG.ppt
C.2.2 Technology concept
- 68 - Discussion_Paper_SAG.ppt
?Key questions „Technology concept“
• Which existing IT-Systems are directly affected by implementing a CRM-Strategy?
• Are there any functionality concerning analysing consumer behaviour and transferring it into transaction oriented consumer response which could not be fulfilled by existing IT-infrastructure?
• Is there a fit between customizing effort / integration effort and profound benefit analysis?
• What additional IT-Systems should be implemented following a “best of bread” strategy?
Source: Roland Berger & Partners
- 69 - Discussion_Paper_SAG.ppt
Three steps are required to combine the CRM strategy with a sustainable technology concept
IT-AuditIT-Audit Data Model/IT-Infrastructure Plan
Data Model/IT-Infrastructure Plan
Software- / Service-Provider- Selection
Software- / Service-Provider- Selection
• Pragmatic creation of transparency about– existing IT-Systems (Software)– Hardware– Network, communication
protocols– etc.
• Identify all major stake holders who are responsible for implementation and operation of target IT-CRM solutions
• Translate defined tool-/provider demands into Request For Quotation (RFQ)
• Identify the best implementation partners based on Broadvision SW-platform
• Derive milestones / implementation plan
• Develop holistic data model regarding – actual customer profiles– defined target systems– future CRM-trends (e.g. internet
as customer contact point)
• Identify relevant databases
• Define “data gap” and provide technical solution for closing the gap
• Derive target IT-infrastructure plan
Source: Roland Berger & Partners
- 70 - Discussion_Paper_SAG.ppt
The technology concept can be completed in 14 weeks in parallel to the CRM strategy development
Project weekActivity
1 2 3 4 5 6
1. IT-Audit
– Development of standardized questionnaire
– Focus interviews with major stakeholder
– Description of existing Hard- and Software-Components (CRM-specific IT-Landscape)
2.Design Data-Model and IT-Infrastructure Plan
– Identification of relevant data and databases (according to defined target systems)
– Development of database model
– Identification of data flows and participated IT-Systems
– Definition Migration-Plan into a target IT-Infrastructure
3.Software and Service Provider selection
– Development of Request For Quotation´s (RFQ´s) for potential SW-and Service providers
– Provider/Tool selection
– Development of implementation plan (in co-operation with SW-Partner)
7 8 9 10 11
Source: Roland Berger & Partners
Work schedule „Technology concept“
12 13 14
- 71 - Discussion_Paper_SAG.ppt
C.2.3 Business Case
- 72 - Discussion_Paper_SAG.ppt
All revenue, margin improvement, cost and investment effects are consolidated in to business plan based on different scenarios
Business plan
Realistic case
Worst case
Best case
Aggregated cashflow
DM m
2001 2002
• Sales increase– Penetration of existing customers– Acquisition of new customers– …
• Efficiency increase– Improvement of margin– Reduction of process costs– Reduction of process times– Increased hit-rates– …
Total cash-in• Investment
– Planning/restructuring– EDP (hardware/software)– Network– Dealer training– …
• Current expenditures– Personnel– Leasing hardware– Software licenses– Software updates– External providers– …
Total cash-out
Cashflow
2000 2001 …
Source: Roland Berger & Partners
2000
Illustrative
- 73 - Discussion_Paper_SAG.ppt
Cost effects and investments are recorded in detail
1.2.1 Shipping channel
Extract
Parameter Q 1/00 Q 2/00 Q 3/00• • •
2.1 E-Com phase II
2.1.1 Planning2.1.1.1 Internal project management2.1.1.2 Concept development2.1.1.3 IT-logic2.1.1.4 DP concept2.1.1.5 External integration planning2.1.1.6 Internal integration planning
2.1.1.2 Development environment2.1.1.2.1 Hardware2.1.1.2.1.1 Server2.1.1.2.1.2 Network adapter Fast Ethernet2.1.1.2.1.3 DAT streamer/accessories2.1.1.2.1.4 Development clients
...2.1.1.2.2 Software2.1.1.2.2.1 Scoring tool2.1.1.2.2.2 Application server2.1.1.2.2.3 Performance pack2.1.1.2.2.4 Designer client2.1.1.2.2.5 Visual Age for Java2.1.1.2.2.6 DB2 license2.1.1.2.2.7 Version system PVCS2.1.1.2.2.8 Case tool Paradigm Plus2.1.1.2.2.9 Data warehouse
...
MAK 2MAK 3MAK 3MAK 4
EX- MAK 2MAK 2
17215
1115151511
122534
25,400.-4,000.-3,000.-
122554
100
Detailed planning Investments, IT,
marketing, operations ...
Source : Roland Berger & Partners
- 74 - Discussion_Paper_SAG.ppt
C. Approach
C.1 Target setting
C.2 CRM strategy and technology concept
C.3 Implementation
- 75 - Discussion_Paper_SAG.ppt
For each business model seven internal and external tasks need to be performed for implementation
Project management/
controlling
Managing externalservice providers
Management of internal tasks
Content management
1
Implement IT plan
3
Marketingplanning and
implementation
2 Operations support/hot line
4
Select/management content partners
6Management of
systems integrators
7
Select implementation
partners
5
Business model A
Business model B
Source: Roland Berger & Partners
- 76 - Discussion_Paper_SAG.ppt
e-partnering is the approach of Roland Berger & Partners to provide you with an effective partner management framework in Electronic Commerce
e-partnering framework
DefinitionDefinition
e-partnering is aframework to
manage partners andpartnership processes effectively in the field
of Electronic Commerce
Portfolio of partnershipsPortfolio of partnerships
Company profile
Name:Field ofbusiness:Contactperson:
Company profile
Name:Field ofbusiness:Contactperson:
Strategic partners Operational partners
Process of partner managementProcess of partner management
Evaluation Screening/selection
Coaching Integration
process
• Mutual evaluation of set targets• Identification of weaknesses• Continuing/closing partnership
• Regular meetings• Open/continuos exchange of
experience ideas• Built-up trust
• Definition of required partner profile
• Market screening• Close partner contracts
• Definition of interface withpartners (contact person, IT etc.)
• Integration of business processes• Identification of latent problems
1
23
4
Source: Roland Berger & Partners
- 77 - Discussion_Paper_SAG.ppt
D. References
- 78 - Discussion_Paper_SAG.ppt
Roland Berger & Partners have successfully completed numerous project in related issues
Selected clientsSelected clients Selected projectsSelected projects
• Realignment of key marketing processes including CRM at a vehicle manufacturer
• e-commerce and CRM strategy for a premium manufacturer
• Organizational realignment of a car rental company• Strategic repositioning of a telematics service
provider• Evaluation of strategic opportunities for the
business model of a telematics service provider• Marketing concept for automatic toll collection• Development of a business model for
e-services/telematics• Design and implementation of a partnering concept
for a telematics service provider• Pan-European market study (potential until 2010)
for traffic telematics services and systems• Selection of a telematics service operator for an
OEM
• ACB/Dürkop (Retailer Group)
• ALD
• Audi
• Auto-By-Tel
• BMW
• DaimlerChrysler
• debis
• Europcar
• GEFA
• General Motors
• Infos Telematica
• Johnson Controls
• Mannesmann Autocom
• Retailer Groups
• Sixt
• Volkswagen
No directmatching
Source: Roland Berger & Partners
- 79 - Discussion_Paper_SAG.ppt
Strong internal teaming and external partnering provides one-stop-solutions to our clients
Example: Joint acquisition with CC InfoCom and Lisbon office
Automotive expertise
• Business models
• Customer segment requirements
• Sales channel management
Know-how from other industries
• Airlines
• Banking
• Healthcare
• Broad Vision • Lucent Technologies • Siebel
Customerrelationshipmanagement
External partners
Ongoing customer
relationship
3
4Developing customer benefits, e.g. • Value-added
services• Customized offers
Informationanalysis• Customer
profiles• Forecasting
buying behavior
• Monitoringsuccess
Generating/ recording
customer data
2
1
IdentificationInitial contact with
customer
0
External partners
- 80 - Discussion_Paper_SAG.ppt
Due to its technical expertise, e-commerce experience and business view, the InfoCom CC provides indispensable support for CRM and e-commerce projects
Company-specific, successful CRM and/or e-commerce projectCompany-specific, successful CRM and/or e-commerce project
• Concept for the integration of CRM into the IT environment
• Utilizing technological benefits of data mining for trigger design
• Integrating Internet functions and decentralized data storage for data provision concepts
• Selecting data warehouse and data mining tools and CRM software
• Designing e-services, value-added Internet services
• Designing corporate webpages on the Internet
• Pricing for e-commerce transactions
• Integrating existing pools into an e-commerce platform
• Evaluating the significance of value-added services
• Calculating business plans
• Drawing up CRM structures and processes
• Benchmarking of CRM concepts (also from competitors' point of view)
Technological competence
• Knowledge of basic technologies and their application
• Knowledge of the essential products available and their derivatives (gained from projects in the IT industry)
E-commerce competence
• More than 50 e-commerce projects
• E-commerce studies
• Continuous dialog with top e-commerce companies worldwide
Business view
• Focus on economic benefits of applied technologies
• Competent development of business concepts and analysis of competitors' strategies
Roland Berger & Partners InfoCom Competence Center Roland Berger & Partners InfoCom Competence Center
Project experience in CRM and e-commerce
Source: Roland Berger & Partners
- 81 - Discussion_Paper_SAG.ppt
E. Appendix: Supporting tools to implement CRM
- 82 - Discussion_Paper_SAG.ppt
E.1. The Internet as a supporting CRM tool
- 83 - Discussion_Paper_SAG.ppt
A group wide website will be used as a new sales channel and CRM portal
Work package objectives
• Determine the technical requirements and
specifications and a business plan for the various
partners
• Coordinate the work of the web agency, the IT
platform providers, ...)
• Integrate the legal and technical constraints for the
evolution of the concept and offer
• Build the initial content in coordination with the
internal branches, the potential partners, and the web
design and technical solutions providers
• Build a requirements and specifications document to
provide to web designers and/or technical solution
providers
• Screen and select short list of bidders
• Establish briefs and provide them to the short list
• Select web designers and solution providers
• Regular coordination meetings with the various actors
Activities to be performed
Building sites and technical solutions
Source: Roland Berger & Partners
- 84 - Discussion_Paper_SAG.ppt
The overall objective for the technologies of the portal is to provide a state-of-the-art system that meets all functional requirements
- Objective for an Internet platform technology -
Open, flexible and modular architecture
Real time connection to the companie’s
ERP system
State of the art technology e.g. Java based programs
Open and flexible interfaces (group companies, logistic
providers and selected customers)
Sophisticated security system (access authority,
fire walls)
Ensure that all requirements concerning functionality can
be met
Internet platform
Source. Roland Berger & Partners
Scalability
Multirent.pt
- 85 - Discussion_Paper_SAG.ppt
Various IT applications are required in order to set up an Internet portal
Schematic
Inte
rne
t
Group companies
Customer Internet Browser; perhaps
additional software for a connection to
ERP systems
Group companies
Connection directly to the
companie’s ERP system
Required technology infrastructure
Source: Roland Berger & Partners
Web Design
(e.g. site design; interactive effects;special features, ...)
additional software applications
(e.g. content management software, log file analysis tools, ...)
E-commerce software
Procurement software
Market place software
E-commerce software
IT system integration
(data migration, interfaces management, ...)
IT infrastructure and Internet access
(hardware, databases, web hosting, ...)
Connection via interface
database
- 86 - Discussion_Paper_SAG.ppt
E-commerce at the "front-end" means marketing, selling, and interactive customer relationship management
1) Depending on country regulations
"front end"e-commerce
SellingSelling MarketingMarketing
CRMCRM
• OTC-commerce
• Internet pharmacies
• Claim management with health insurance and HMOs1)
• New organization of sales force
• E-detailing of drugs to doctors in practice and hospital
• Electronic prescription writing
• Online product information (e.g. epocrates)
• Ads on other webpages
• "Link mangement" on the web
• Increase of patient compliance
– Doctors (practices, hospital)
– Patients (severe, chronic, OTC, prevention)
– Hospital purchasers/pharmacist
– Paymasters, healthcare officials
• Indirect product marketing through content sites
• Info sites, electornic brochures, permission marketing
• Cost reduction in medicalcommunication
• Bi-directional flow of information/steady marketing effort toward clients
• Build up relationship to:
• “Build your community"
Source: Roland Berger & Partners
Project example
- 87 - Discussion_Paper_SAG.pptSource: Roland Berger & Partners
Questionnaires filled out by other web page providers as well as call centers help identify the best practice in homepage maintenance
Questions to healthcare homepageproviders
1. Content
• Who decides on the content of the homepage?
• Who decides which links are included on the webpage?
• What steps are taken to place links to your ownwebsite on other homepages?
• • What alliances have been set up with othercompanies/webpage providers?
2. Maintenance
• What is the maintenance frequency for thehomepage?
• Who/how many employees have/has beenassigned to the maintenance of the homepage?
• Which tasks are allocated to central webadministration/decentralizedweb administration (if there are regionalsubsidiary pages )?
• Which company designed your homepage?
• If you provide a hotline service: Who accepts thecalls (students, employees, physicians, …)?
• Who responds to the e-mails addressed to thecompany?
• How much time is required to reply?• • Is e-mail/caller data systematically collected?
• If yes, what data is collected?• If yes, who administrates caller data or has
access to it?• If yes, what is caller data used for
(marketing, sales, medicine)?
Questionnaire for call centers
1. Content
• What are the guidelines for caller handling?
• What is the typical content of the calls?
• What steps have been taken to boostcustomer awareness?
2. Processes
• Who accepts the calls (student, physician,office staff,…)?
• At what times is the call center staffed?
• How many employees are responsible forhandling calls?
• Is caller data collected systematically?• If yes, what data is collected?• If yes, who administrates caller data or
has access to it?• If yes, what is the call center
information used for (marketing, sales,medicine)?
• Do you call customers/physicians yourselfto inform proactively?
• How is the call center integrated into anoverall concept (e.g. of marketing,corporate communication, etc.)?
3. Call center functions
• How many minutes does an average calllast?
• How many calls are accepted perday/week?
• What is the structure of the caller groups(physicians, patients, etc.?
Questionnaire for homepage providers
Questionnaire for call centers
- 88 - Discussion_Paper_SAG.ppt
Specification for the various modules will need to be informed
Illustration
Topics coveredTopics covered Key questions answeredKey questions answered
Product catalogue/product descriptionProduct catalogue/product description• How does the product catalogue look like? How are the products
features described?
Stakeholder focusStakeholder focus • Which segments should be focused overtime?
Content provisioning process to portal usersContent provisioning process to portal users • How is process of content exchange organized?
Content rangeContent range • Which content should be offered?
Pricing/Access to contentPricing/Access to content • How does the access to content work; to which conditions?
Content sources and managementContent sources and management • Where does the content come from and how is it managed/updated?
Source: Roland Berger & Partners
- 89 - Discussion_Paper_SAG.ppt
Content presentation is also an essential part of the concept definition
Illustration
Content categoryContent category FunctionsFunctions
Contact PortalContact Portal
• Virtual "3D" tour through portal• Online help with bookmark functionality, keyword and full text
search functionality• Call center available on a 24/7 basis
Communication/chatCommunication/chat• Chat rooms for professionals/private individuals• Virtual project databases for workgroups• Free e-mail addresses and homepages for professionals
Product-related contentProduct-related content• Product video for downloading• Sample ordering function
News-related contentNews-related content• Niew ticker with important news New groups• News calendar with memory effect E-mail newsletter
(push)
General contentGeneral content• "Emergency button" for how to deal in emergencies; direct contact
to call center
- Portal content features -
Source: Roland Berger & Partners
- 90 - Discussion_Paper_SAG.ppt
The business concept represents the basis for a concrete IT-concept
Business concept
•
•
•
•
•
•
•
Know-how
IT conceptIT concept
1. Total architecture1.1 Development platform1.2 Runtime environment1.3 Web- and application server1.4 Security/firewall1.5 Mail server and API1.6 Relevant legacy systems1.7 Host/mainframe2. Data model2.1 Relevant legacy systems2.2 Platforms, formats2.3 Data model specifications2.4 Extraction components2.5 Persistence3. Provider concept3.1 Administration3.2 Access administration3.3 Training/train the trainer4. Proof of concept4.1 Functional blocks and extent5. ...
CRM-Strategy
•
•
•
•
•
•
•
Strategy
Source: Roland Berger & Partners
- 91 - Discussion_Paper_SAG.ppt
The Internet platform needs to have different kinds of interfaces in order to connect its partners and customers
Schematic
Source: Roland Berger & Partners
Homepage
Inte
rne
t
WebserverDatabase
Interfaces to partners and customers
Firewalls
Interface 1
Interface 2
Interface 3
Logistics provider: Exchange of order data
Content provider: Set up and main-tenance of content
Key customers: Electronic product ordering, billing etc., connection to ERP systems
- 92 - Discussion_Paper_SAG.ppt
Several technological success factors have been identified and shall be obeyed
Source: Roland Berger & Partners
Technological success factors
Security
• Firewalls need to be installed
• A sophisticated access authority concept with various security levels is required
• Each customer needsonly one password
Intuitive and simple structure of the pages in order to make navigation more easily and to increase speed of page loading
Various interfaces (between group companies, customers, logistics providers) need to be installed – data exchange should be possible in both directions
Platform architecture needs to be modular in order to be able to connect further applications/modules in the future
Systems should be available on a 100% basis
Scale of the system needs to be set up to cope with extensive growth of the amount of data
User friendliness
Scalability
Interconnectivity
Architecture
Reliability
- 93 - Discussion_Paper_SAG.ppt
E.2. The call-center as a supporting CRM tool
- 94 - Discussion_Paper_SAG.ppt
The call center solution to be implemented must be oriented towards the cross-corporation, call center-specific demands of suppliers
Call center solutionCall center solution
Cross-corporation demandsCross-corporation demands
Call center-specificdemands
Supplierdemands
Strategic objectives
• Securing/expanding the market position
• Increasing the revolving ratio
• Expanding new business
• Raising productivity
• Securing/enhancing profitability
• Reducing internal cost structures
Source: Roland Berger & Partners
- 95 - Discussion_Paper_SAG.ppt
The cross-corporation demands are clarified by means of qualitative and quantitative targets
Cross-corporation demands
Qualitative objectivesQualitative objectives Quantitative objectivesQuantitative objectives
Motivated staff
Longer opening
times
Attaining maximum availability
levels
Quick and uncom-plicated
processing
Controlling via stan-dardized reports
Process optimization
More efficient
processing
Image advantagesImage advantages
Raising customer satisfactionRaising customer satisfaction
Raising customer retention (revolving)Raising customer retention (revolving)
Raising productivityRaising productivity
Cutting costsCutting costs
Retaining/increasing market shareRetaining/increasing market share
Retaining/increasing salesRetaining/increasing sales
Source: Roland Berger & Partners
- 96 - Discussion_Paper_SAG.ppt
Several requirements for technology solution and supplier must be taken into account
Source: Roland Berger & Partners-analysis
Call center-specific demands
• Customer Account & Contact Manage-ment
• Market research tools
• Sales force control
• Workflow-/Messaging Services
• Servicemanagement
• ERP-integration
• 24h support/remote diagnosis
• Power Dealing connection/CTI connectivity
• Skill based routing
• Reliability
Supplier-specific demands
• Broad experience and competence in telecommunications
• Excellent reference cases
• Integrated solutions/one-stop-shopping
• Individual taylorized concepts
• Innovative technology and outstanding market position
• Safety of investments
• Good price-cost-ratio
- 97 - Discussion_Paper_SAG.ppt
Having a powerful, high-tech telephone system is one of the prerequisites for a professional service center
CustomersCustomers ALDALD Technical imperativesTechnical imperatives
Customer in Hamburg
Customer in Munich
Customer in Leipzig
ALDALDTeamNorth
Team North
Team North
Team North
Customeradvice
IT CT/support
Contact, usually with the name of a specific person Allocated Call/request is processed
• ACD Equipment (Automatic Call Distribution)
• CTI (Computer Telephone Integration
• Voice mail
• E-mail, Internet suitability
• Fax on demand
• Optional: Interactive Voice Response Unit
Project example
Source: Roland Berger & Partners
- 98 - Discussion_Paper_SAG.ppt
Roland Berger & Partners have broad experience in preparing the client management's decision through a comprehensive evaluation process
Evalua-tion process
Evalua-tion process
Prelimin-ary infor-mationand informal visit to CC1)
(e.g.Deut-scher Inkasso-dienst, Deutsche Bauspar)
Initialrough selection from among all suppliers active on the market
Evaluation of support possibili-ties for selection via tele- data
Generation of a catalog of criteria for evaluating suppliers
Grading of suppliers according to a uniform catalog of criteria
Evaluation of suppliers via the documents submitted, the pres-entation, and the individual price list
RB&Pprovides manage-ment with a paper to aid the decision-making process
Suppliers involvedSuppliers involved
Compila-tion and request for tenders
• Alcatel• Dt. Telekom• Lucent Tech.• Nortel Dasa• Micrologica• Siemens
• Alcatel• Lucent Tech.• Nortel Dasa
Three suppliers are invited to give their presenta-tion
Proposals submitted Presentation
Parti-cipantsParti-cipants ALD, RB&PALD, RB&P RB&PRB&P ALD,
RB&PALD, RB&P
ALD, RB&PALD, RB&P RB&PRB&P
1) CC = Call center
?
Project example
Source: Roland Berger & Partners
- 99 - Discussion_Paper_SAG.ppt
The dual selection procedure allowed Roland Berger & Partners to recommend cooperation with Lucent Technologies for implementation of ALD's CC solution
Proposals submittedProposals submitted
Initialselection process
Initialselection process
Invitation to presentationInvitation to presentation
Secondary selection process
Secondary selection process
Alcatel
LucentTechnologies
Siemens DeutscheTelekom
Nortel Dasa
Micrologica
Interactivelydevelopedcatalog of
criteria
Interactivelydevelopedcatalog of
criteria
AlcatelLucent
TechnologiesNortel Dasa
Presentation
Lucent Technologies
RB&Precommendation
Individual price lists
Individual interviews
Assumptions
• Interactively developed catalog of criteria
• Criteria are given different weighting under considerations of ALD-specific aspects
• Consideration of critical systems requirements, of company profile and of the technical and/or realization concept
• Grading of the different suppliers
• Subsequent analysis of suppliers' strengths and weaknesses
• Analysis of presentation documents
• Analysis of individual price lists
• Evaluation of individual interviews
Preconditions:
• Reduction of software/hardware and maintenance costs
Project example
Source: Roland Berger & Partners
- 100 - Discussion_Paper_SAG.ppt
A board range of software solutions could be used for technology enabled selling
Examples
Source: Roland Berger & Partners-analysis
• Abalon• Broadway & Seymor• Clarity• Chordiant
• Corepoint• Pegasystems• Onyx• Siebel
• Allegis• Partnerware• Channel Ware• Webridge
Channel PartnerSystems
Contact SW,Telesales,Telemarketing
• Vantive
• Clarity• Chadiant• Corepoint• Quintus
• Siebel• Vantive• Natural
Microsystems
Call CenterApplications
• Micrologica• Bendata• Tetel
• Broadvision• Microsoft• Art Technology• Engage Technology
Interactive MarketingSoftware
• Genesys• Aptex• Aditi• Brightware
E-Mail Response Management
• E-Queue• Ergotech• General Interactive• Kana
• Mustang
- 101 - Discussion_Paper_SAG.ppt
The requirements of the service personnel are derived from the target standards set for the service center
Requirements for service personnel
Targets
Definition of service levels andproductivity standards
Basis for staff/team target discussions
Transfer of staff/team targets to operative business
Productivitytargets, etc.
Service targets
Measuring target achievement levels• Computer-based evaluation• Customer survey• Benchmarks
Feedback loopfor annual
interviews todiscuss targets
Excellent specialist knowledge through:
• Experience in vehicle leasing• Training and qualification as leasing clerk• Training in business administration
Strong communication skills (especially telephone skills)
Stress resistance
High frustration threshold
Independence and good organizational skills
Ability to cope with pressure
Team spirit
"Good people skills"
Customer orientation is at the heart of the business
1
5
4
3
2
Project example
Source: Roland Berger & Partners
- 102 - Discussion_Paper_SAG.ppt
Internet Call Center as Customer Care Solution integrates communication flow from customer to the company via phone, fax, mail and Internet
Customer CompaniesInternet Call Center
Internet/E-Mail
Fax
Phone
Post
Routing Center • AMD (Automatic Message Distribution)
• ACD (Automatic Call Distribution
• Predictive Dialing
MailCenter
DataWare-house
Response
CTI-Agent CompaniesIntegration
in Back- Office-
Outcall of employees
IWR(Interactive Web Response)
Computer-Telephony-Integration
IVR (Interactive Voice Response)
Agent
Source: Roland Berger & Partners
Vision
- 103 - Discussion_Paper_SAG.ppt
rb addresses
ARGENTINARoland Berger y Asociados S.A.International Management ConsultantsTte. Gral. J.D. Peron 346 - Piso 5°1038 Buenos AiresPhone ++54-11-43 42 14 98Fax ++54-11-43 45 57 58
AUSTRIARoland Berger & Partner Ges.m.b.HInternational Management ConsultantsFreyung 3/2/10A-1010 ViennaPhone ++43-1-5 36 02 0Fax ++43-1-5 36 02 60
BELGIUMRoland BergerInternational Management Consultants S.A.100, Boulevard du SouverainB-1170 BrusselsPhone ++32-2-6 79 01 70Fax ++32-2-6 72 92 22 or 51 81 25 01
BRAZILRoland Berger & Partners S/C Ltda.Rua Alexandre Dumas, 2220-5° andar04717-004 São Paulo / S.P.Phone ++55-11-51 81 83 66Fax ++55-11-51 81 69 19
CHINARoland Berger (Shanghai)International Management Consultants Ltd.
6/F. East Lake Villas Office Building35 Dongzhimenwai StreetBeijing 100027, P.R.C.Phone ++86-10-64 67 70 69
or 70 93 or 70 94Fax ++86-10-64 67 76 28
72 Xing Guo Road3F Business BuildingShanghai 200052 , P.R.C.Phone ++86-21-62 12 64 11Fax/Phone ++86-21-62 12 74 71
CZECH REPUBLICRoland Berger & Partner GmbHInternational Management ConsultantsVsehrdova 2/ 560CS-110 00 Prague 1 - Malá StranaPhone ++420-2-57 31 11 61Fax ++420-2-57 31 11 63
FRANCERoland Berger & Partner GmbHInternational Management Consultants16, avenue George VF-75008 ParisPhone ++33-1-53 67 03 20Fax ++33-1-53 67 03 75
GERMANYRoland Berger & Partner GmbHInternational Management Consultants
Alt Moabit 101bD-10559 BerlinPhone ++49-30-3 99 27 50Fax ++49-30-3 99 27 30 3
Georg-Glock-Straße 3D-40474 DüsseldorfPhone ++49-211-4 38 90 1Fax ++49-211-4 38 91 40
Bockenheimer Landstraße 42D-60323 FrankfurtPhone ++49-69-17 00 30Fax ++49-69-17 00 35 02
Stadthausbrücke 7D-20355 HamburgPhone ++49-40-37 63 10Fax ++49-40-37 63 11 02
Arabellastr. 33D-81925 MunichPhone ++49-89-9 22 30Fax ++49-89-9 22 32 02
Löffelstraße 40D-70597 StuttgartPhone ++49-711-7 67 30Fax ++49-711-7 67 34 01
GREAT BRITAINRoland Berger & Partners Ltd.International Management Consultants12 Stratford PlaceGB-London W1N 9AFPhone ++44-171-2 90 48 00Fax ++44-171-4 99 99 38
HUNGARYRoland Berger & Partner Kft.International Management ConsultantsAndrássy út 64H-1062 BudapestPhone ++36-1-3 53 02 29Fax ++36-1-3 53 24 34
INDIARoland Berger International Management ConsultantsPvt. Ltd.Hyatt Regency Hotel, Room No. 487Bhikaji Cama Place, Ring Road Delhi - 110 066Phone ++91-11-6 79 11 47 or 11 48Fax ++91-11-6 79 10 48
ITALYRoland Berger & Partner S.R.L.International Management Consultants
Via Sirtori, 32I-20129 MilanPhone ++39-02-29 50 11Fax ++39-02-29 52 48 37
Via Ludovisi, 35I-00187 RomePhone ++39-06-48 82 11 9Fax ++39-06-48 91 94 83
JAPANRoland Berger & Partner Ltd. International Management ConsultantsARK Mori Building 22nd Floor1-12-32, AkasakaMinato-ku, Tokyo 107-6022Phone ++81-3-35 87 66 60Fax ++81-3-35 87 66 70
LATVIA Roland Berger & Partner GmbHInternational Management ConsultantsBasteja Blvd. 12LV-1050 RigaPhone ++371-7 21 20 68Fax ++371-7 21 69 38
MALAYSIARoland Berger & Partner SDN. BHD.International Management ConsultantsLetter Box 81, Level 17 Menara IMCNo 8 Jalan Sultan Ismail50250 Kuala LumpurPhone ++60-3-2 06 57 13Fax ++60-3-2 06 57 14
PORTUGALRoland Berger & Partner Lda.International Management ConsultantsEdificio MonumentalAv. Fontes Pereira de Melo, 51-4° EP-1050 LisbonPhone ++351-1-3 56 76 00Fax ++351-1-3 52 43 60
ROMANIARoland Berger & Partner SRLInternational Management ConsultantsStr. Emanoil Porumbaru 10, Sect. 1RO-71263 BucharestPhone ++40-1-2 22 19 05Fax ++40-1-2 22 62 71
RUSSIARoland Berger & Partner GmbHInternational Management Consultants1. Tverskaja - Jamskaja ul. 23RF-125047 MoscowPhone ++7-095-7 21 19 51Fax ++7-095-7 21 19 54
SPAINRoland Berger S.A.International Management Consultants
Avda. Diagonal, 567, 3rd FloorE-Barcelona 08029Phone ++34-93-4 94 74 40Fax ++34-93-4 94 74 20
Paseo de la Castellana, 140, 3rd FloorE-Madrid 28046Phone ++34-91-5 64 73 61Fax ++34-91-5 64 72 75
SWITZERLANDRoland Berger AGInternational Management ConsultantsDufourstr. 56CH-8008 ZurichPhone ++41-1-2 67 41 11Fax ++41-1-2 67 41 19
UKRAINERoland Berger & Partner GmbHInternational Management Consultants19 Panasa Mymogo Str.252011 KievPhone ++380-44-2 90 43 30Fax ++380-44-2 90 43 46
USARoland Berger & Partner, LLCInternational Management Consultants
100 West Big Beaver Road, Suite 200Troy, MI 48084 Phone ++1-248-6 80 67 30Fax ++1-248-6 80 67 31
350, Park Avenue, 27th FloorNew York, N.Y. 10022Phone ++1-212-6 51 96 60Fax ++1-212-7 56 87 50