innovation in private sector verticals
TRANSCRIPT
Mitel | Confidential June 2007 slide 2
Key Verticals Addressed
Private Sector
Retail and Finance are the focus areas
of this presentation
Public Sector
Mitel | Confidential June 2007 slide 4
Overview
Retail 201 Finance 101
Positioning Solutions in Retail
Winning Examples
What‟s Available For You …
Retail Banking
Capital Markets
Mitel | Confidential June 2007 slide 6
Foundation of a Retail Solution
We do not force you into a generic „retail‟ category
Mitel | Confidential June 2007 slide 7
The Evolution Process of VoIP as Experienced by Mitel‟s Retail Customers
Platform High-Touch
Applications Multi-Site / Network
Network Management and Maintenance
Physical Infrastructure and Power
Productivity Gains
2002
New Revenue Generation
Initial VoIP installs where justified
based on these factors alone.
Improve Operating Efficiencies
Reduce TCO
2004 2006
Mitel | Confidential June 2007 slide 9
Defining the Customer Driven Store: Mobility in Big Box, Department and Grocery Stores
Deli
Pharmacy
Deli, Bakery
SKILLS BASED ACD
increases the
functionality
of wireless by sending
calls directly to the
right associates
MOBILE EXTENSION
allows both phones
to ring simultaneously
YA SOFTPHONE allows District managers
to bring their extension with them to ANY
location – inside, or outside of the network
HOT DESK at corporate
i640 handset is
built for rugged
usage
Consider this:
Portable phones save
managers 15 to 26
minutes a day in time
previously spent walking
to and from a
conventional phone
5302 POS phone
Mitel | Confidential June 2007 slide 10
Many Opportunities Outside of Big Box Stores Using Teleworker in Small Store Locations
Store #1
Large Store Format
Store #2
Small Store Format
Corporate Campus
Warehouse
Contact Center
Mobile Employees
Mitel | Confidential June 2007 slide 11
A Sample of a Few Recent Additions
Social Responsibility
– Enable employee mobility
– Help the environment
– Save ~ $500,000 per year
Will allow 1/4 of its head office staff to occasionally work from home
3300 ICP, Teleworker, Mobile Extension, Audio Conferencing, Mitel Your Assistant, Mitel Messaging Server, Mitel Customer Interaction Solutions
Driver
Mitel | Confidential June 2007 slide 12
Opportunities Outside of the Store
Missed Calls Lead to Missed Revenue
Consider These Facts:
“Customers who use 3 [different shopping] channels spend 4
times more than customers who only use 1 channel.
Source: Gartner, August 2005
”
13% of calls are abandoned on average according to a new study
from Dimension Data. Yet, it is not uncommon to lose upwards of
25% of calls in retail. What would this cost you in revenue?Source: Gartner, August 2005
”
“
Mitel | Confidential June 2007 slide 13
Retail Customer Patterns Findings From a Recent Mitel Study
Phone calls are the preferred method of contact
– 37% prefer the phone as compared to 29% store visits and 28% email
Over 50% of callers inquire about product availability and store hours
53% of people are not willing to wait more than 1 minute for a retail inquiry
– 45% report 1 to 4 minutes on hold
Common frustrations include:
– Not knowing how long you will wait 80%
– Listening to hold music 72%
– Being bounced around departments 72%
Ask Retailers: “What is your abandoned call rate?”
Mitel | Confidential June 2007 slide 14
Call Routing Options
Interactive Auto Attendants
Intelligent Routing
Sales Associates Reach
Understanding
Call Patterns
Call Accounting Software
Hold Options
Embedded Music-on-hold
Dynamic Messaging
85% of callers prefer to hear information
while on hold. With silence, 60% will hang up
after one minute. And over a third of those
callers won‟t ever call back.
Don‟t Leave Revenue on Hold Options Available to Retailers
Source: USA Today
“
”
Mitel | Confidential June 2007 slide 15
In-store customer service or management #4
Back-up in-store department or provided customer with the option of requesting a
queued callback #3
Computer H/W and Home Office Associates in originating store #2
The “Global Store” Concept
Saturday 2:25PM
In Store shopper needs
to find a specific product.
Saturday 2:35PM
The shopper is
unable to find any
sales assistance.
Saturday
2:38PM
The shoppers
questions are
answered.
Centralized CustomerServices #1
Mitel | Confidential June 2007 slide 16
A Look at Lost Opportunities
Fashion and grocery retailers lose £2.7bn a year because they are not responding to customers‟ buying signals
48% of customers will go to a competitor if the in-store wait time is longer than 2 minutes (Mitel Commissioned Study, May 2007)
How can you change this picture?
Source: Envision Retail, October 2006
19% convert
to buyers
81% non
buyers
Conversion Drivers
28% of shoppers who hold up a
garment against themselves on the
sales floor can be converted to
purchasers.
This jumps to 71% if the customer is
persuaded to use a changing room.
Mitel | Confidential June 2007 slide 17
In-Store Customer SolutionSolution in Progress
Text message and / or canned voice
Wireless device rings and / or vibrates OR an overhead page is made
Manual or auto escalation
Associate acknowledges receipt
Associate arrives at call origin and presses “cancel”
Sporting GoodsAisle 8
“ Consider this:
50% of people will
avoid a store
because of
someone else‟s bad
experience. Source: IBM at NRF „07
”
Mitel | Confidential June 2007 slide 18
Marketing Activities In Retail
Brand Creation
Integrated Solutions for Retail Magazine
Extended Retail Solutions
1to1 Magazine
Content
End User Presentation
Backgrounders
Handouts, Article Reprints
White Papers
– Don‟t Keep Revenue on Hold
– Telepathic Store
– Mobility in Retail
– Extending the Customer-focused Contact Center
Mitel | Confidential June 2007 slide 20
Banking Sector Segments
Federal Reserve Banks
Commercial Banks
Savings Institutions
Retail Banks
Credit Unions
Financial Holding Companies
Mitel‟s solutions fit each of the
3 key finance sectors. This
presentation focuses on
providing industry information
on the Banking Segment.
Banking Capital Markets Insurance
Mitel | Confidential June 2007 slide 21
Retail Banking Opportunity in the U.S.
Retail Bankers are heavily committed to IT spend
– According to IBM, the consumer banking sector spent an estimated US$104 billion on technology globally in 2004 – a number that is expected to grow at a rate of 5.2% annually
The foundation is in place
– Banking enterprises have invested in electronic solutions for increasing communications speed, but have neglected to launch holistic, productive and effective communications initiatives
Banks are aggressively pursuing innovative consumer-centric solutions. Communications solutions are paramount to achieving this mandate
Additional key focus areas include a renewed focus on improving employee productivity and training, while maintaining a low cost structure
Mitel solution is well suited for small to mid tier banks
Mitel | Confidential June 2007 slide 22
Banking Challenges at Every Level
External Pressure
Market is opening up / barriers to competition are
getting lower
Industry Pressure
Regulatory Environment
Risk and Capital Management
Reporting and Compliance
Business Operations
Customer growth, cross selling
Customer satisfaction (responsiveness, accuracy and protection)
Costs to manage
Shareholder value to create
Keep employees current
Fraud reduction (50% of fraud is internal)
Mitel | Confidential June 2007 slide 23
Is IT the Answer? Banking IT Investment
400
380
360
340
320
3002003 2004 2005 2006 2007 2008 2009
Time scale
Bil
lio
ns
Global technology budget for new and
upgraded retail banking solutions
Source: IBM 2004 Report
“Transforming the Retail Banking Environment”
“Global IT investment will exceed
US$380B in 2009.
Source: Gartner, August 2005”
“35% of spending will be invested
in front-end technology.
Source: Tower Group”
“30% of all IT investment is now
in channels (with most of that
going to the branch).
Source: Gartner”
Mitel | Confidential June 2007 slide 24
Banking Channels from the Customer‟s Viewpoint
The phone is the
preferred channel to
get information on
high value services,
yet banks invested in
automated telephone
banking at the expense
of personal telephone
banking.
Banks need to increase emphasis
on personalized telephone
banking services to catch up to
customer expectations
Banks recognize that branches
are the key channel for closing
critical service transactions
13%23%11%31%24%9%Managed fund
13%20%5%40%45%14%Credit card
8%23%11%49%49%19%Personal loan
3%12%9%35%49%18%Home loan
7%18%7%10%71%13%Savings / transactions
SaleInfoSaleInfoSaleInfo
InternetPhoneBranch
Consumer Channel Preference
(% responded affirmative)
Source: Booz Allen Hamilton
Mitel | Confidential June 2007 slide 25
The Renaissance of Today‟s Bank Branch
Good Internet capability and personalized telephone banking are core capabilities, but the branch is experiencing a renaissance
Branches ranks as the 2nd most important customer channel, but is most critical up-selling opportunity
Key branch initiatives:
– Retail stores are becoming models for new bank branches – designed to entice a customer to enter, spend time and make a purchase
– To encourage face-to-face visits, banks are extending branch hours
– Banks are building new branches to expand to new markets. VoIP and reduced cabling costs will appeal to this sector
– Banks evaluating various communications technology, including Web kiosks and video technology
Branch visits are still high regardless of customer age
Key branch initiatives include expansion, refurbishment, modernization and extended store hours
Mitel | Confidential June 2007 slide 26
Learnings from Video Case Studies
78% of opportunities discussed via video resulted in customer action
Australian bank claims to have doubled its market share in mortgage lending over three years in large part due to customer‟s satisfaction with the banks services
Cross-sell opportunities increased by roughly 10% (as a result of video)
Saved three days of driving
Source: Financial Insights
Mitel | Confidential June 2007 slide 27
Call Center Challenges
Automated telephone banking has proved unpopular with clients
Banks are moving to personalized telephone banking
Presents contact center staff with challenges in recruitment, training, working hours, motivation and remuneration
Banks are not excluded from the challenges of retaining staff and have been burdened with turnover rates
Banks are always balancing the number of staff required with the ability to maintain exceptional customer service – the agent on demand model works well for this sector
Mitel | Confidential June 2007 slide 28
IT: Veto Power
Where Are the Decisions Made?
Consumer Bank
Consumer Finance
Corporate Bank
Private Bank
International
President
Lines of Business Central Support HR
External Affairs
Legal Counsel
Risk
Audit & Compliance
Corp Finance
Information Technology
Finance & Administration
Operations
Chairman
MarketingSource: © 2007 The Tower Group Inc.
Finance: Influences decisions
LOBs: Decision Makers. Set requirements and pay. Some have independent IT
Marketing: Influence decisions on customer knowledge
Operations: Heavy Influence
Mitel | Confidential June 2007 slide 29
Customer Centric Bank Experience
Potential customer
is surfing the web
for a new bank.
Call back request
is made.
Customers‟ contact details are
sent into a predictive dialer.
Customer is called by a contact
center agent who answers a few
questions and sets up an appointment
for the next day at the branch.
Mitel | Confidential June 2007 slide 30
Customer arrives and is
greeted by a receptionist.
Receptionist calls the branch manager.
Branch Manager is not at his desk, but gets
the call on his mobile phone with Mitel‟s
Mobile Extension.
Mitel | Confidential June 2007 slide 31
The customer and manager proceed to his office
Receptionist checks to see that the retirement planning expert is available
Mitel | Confidential June 2007 slide 32
The customer asks the
manager a mortgage
question that he cannot
answer.
He looks to see if an expert
is available to answer the
question.
Mitel | Confidential June 2007 slide 33
Joanne, the mortgage expert, is brought into the meeting.
Once the question is answered, they add the retirement
planning expert via quick conferencing.
The group decide to have a video and data collaboration
session. The client‟s files are shared with everyone.
Mitel | Confidential June 2007 slide 35
A Different View of Finance Capital Markets
Hedge Fund Distributed Sites DR Sites
Increased number of smaller trading sites, Hedge Fund / Boutique,
geographic expansion or merger, DR sites that require continuous,
efficient, client-facing tools that streamline costs
Consolidation
Mitel | Confidential June 2007 slide 36
The Result:
Smaller trading environments remain confined to in-house solutions
consisting of generic enterprise solutions and basic IP phones
The Problem
Today‟s finance IT environment focuses on large, single site customers
Solutions consist of many closed, specialized networks
This is expensive and does not converge front to back office personnel
Mitel | Confidential June 2007 slide 37
Mitel Capital Markets PortfolioInnovative Communication Solutions for the Smaller Trading Floors and the Offices that Surround it
Front Office
Endpoints
Mobile Trading /
Work
Continuous
Availability
Converged Voice
and Data solution
High Performance
Teaming
Flexible
Migration
Thank you
Sandy Janes Director, Vertical Solutions Marketing (212) 798-1897
The information conveyed in this presentation, including oral comments and written materials, is confidential and
proprietary to Mitel and is intended solely for Mitel® employees and members of Mitel‟s reseller channel. If you are
not a Mitel employee or a Mitel reseller, you are not the intended recipient of this information and are not invited to
the conference, and cannot participate in or listen to and/or view the presentation. Please delete or return any
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comply with the foregoing may result in legal action against you or your company.
Mitel | Confidential June 2007 slide 38
Mitel | Confidential June 2007 slide 40
Financial IndustryMarket Overview
Similar to the IT sector
– Turmoil over past 5 years has caused significant change
– Convergence is driving merger and acquisition activity
– Infrastructure development largely limited to „essential‟ spend
– Many knowledge workers / team working / collaboration
Consists of 4 very different sub-sectors
– 3 require a specific solutions focus
– Vertical sales approach will play a crucial role
Significant opportunity across all sectors
Mitel | Confidential June 2007 slide 41
Front Office Endpoint Options Highlights
IP Navigator (Researchers/ Analysts)
Simplified task navigation
Automatically stop of all audio and video streams
5340 Client Interface Device
Sales, light trading
Transforms the desktop into an automated CRM portal
IP Trading Appliance
Purpose built to address the needs of traders in smaller trading environments
Research Relationship
Manager
Trading/
Execution
Dealing Room
Mitel | Confidential June 2007 slide 42
Front Office Endpoint Options Key Features
Ring Down (RD) Circuits
Global Free Seating (Hotdesking)
Voice Recognition
Record a Call
Seamless Internal Communication
Research Relationship
Manager
Trading/
Execution
Dealing Room
Mitel | Confidential June 2007 slide 43
5340 Client Interface Device
Endless integration options
– Device comes with a built-in HTML toolkit
Enhance customer relationships / empower CRMs
– Display client‟s „profile ID‟ on the desktop
– Pull key data from CRM database (recent trades, account numbers, balances) with every incoming call.
Deliver mission critical information
– Emergency broadcasts / Regulatory updates
– Response-based (provides acknowledgement receipt)
Minimize “fat finger syndrome”
– Self-guided soft keys assist users with requests
Extend the energy and „presence‟ of your front office to branch or home office locations
– Expand presence capabilities to monitor the trading floor in any location from the 5340
Mitel | Confidential June 2007 slide 45
Mitel IP Trading Device Applications
Call History
Conferencing
Personal / Corporate Directory
Direct and Group Paging
Teleworking
Mobile Extension
XML to the Display
Web-based Configuration
Built in HTML toolkit enables
BPI through application
integration
Mitel | Confidential June 2007 slide 46
Mitel Capital Markets Portfolio
5340 “Client
Interface Device”
Mitel Turret
Trading Solution
Navigator
Analyst Assistant
Front Office Endpoints Mobile Trading/Work Continuous Availability High Performance
TeamingFlexible Migration Intelligent Data
Facilitation
S
k
j
D
12
34
56
y
W
Tiered Coverage:
Appl.Resiliency
Flexible Work
DR Site
Rapid Response
Stop Gap
Solutions that
address the
evolving needs:
Scheduled
Ad Hoc
Instant
Near Light Speed
“Agent anywhere”
Home
Temp
Road Warrior
Corridor Warrier
Content Routing
Consolidated
Data
Desktop
Facilitation
Architectural
Interoperability
Protocol
Interoperability
Open Interface &
Management
Custom
Interworking
Innovative communication solutions for
the smaller trading floors and the offices
that surround it.
Mitel | Confidential June 2007 slide 47
The Value of Video in Retail BankingVideo Technology Adoption Timeline at Retail Banks
Deliver Higher Quality Customer Service
Support FirmWide BusinessOperations
EnhanceCollaborationand Communication
Replace ExistingFace-to-FaceMeetings
Key
Business
Objective
Stage 1 Stage 2 Stage 3
“End Goal”
Stage 4
Current level of bank penetration
High Medium Low Low
Source: Financial Insights, 2005
Mitel | Confidential June 2007 slide 48
Increased Emphasis on Live Help
In a recent survey by KPMG, it was found that:
– Internet banking was identified as the most important channel
– Banks performance in this area is mixed
– Delays in service launch, access problems and security - significant ongoing issues
– Provision of automated telephone banking is the only area where banks believe they “over-deliver”. Suggests that past IT investments in this area overstated client expectations
– Trend is moving away from automated systems towards personal telephone banking services
– Perceived under-delivery in this area may reflect the significant operational challenges in delivering live assistance
Personalized telephone banking support as important as the branch
and ATM networks in the delivery of good customer service.