RiskView® Tutorial:Selling Assurance “Quad-Play”

July 2012

Robert CruickshankCEOrobert.cruickshank@rev2.com+1-703-568-8379

Evan BirkheadVP Marketing & Salesevan.birkhead@rev2.com+1-908-910-6988

Assurance Quad-Play Sales Goal

MSOs without ARRIS Assurance Sell all-four Quad-Play solutions

MSOs with some ARRIS Assurance Sell missing Quad-Play solutions

Sell best fit solution(s) to meet MSO needs Set stage for additional sales of missing Quad-Play solutions

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Selling the Message

Get Familiar with Assurance Quad-Play & RiskView’s role www.rev2.com/arris-resources/ : Videos, Info Sheets, Case

Studies

Assess MSO Assurance Need Does MSO have Assurance Products: SAA, EA, WA, Others?

Have Enrollment Conversation to Gauge MSO Interest Goal: Selling opportunity via:

1) Webinar, 2) in-house Demo, or 3) other next steps

Follow-up with Sales Package based on MSO Assurance Needs

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Get Ready for Customer Facing: About RiskView

How Assurance Quad-Play works together – Next Slide

Description of each Assurance Solution – ARRIS & Rev2

RiskView Service Outage Analytics Video https://dl.dropbox.com/u/42856417/Rev%202%20Video%201%20Edit%204.wmv

RiskView Service Outage Analytics Demo https://dl.dropbox.com/u/42856417/Rev%202%20Short%202%20Hi%20Def.wmv

Savings Model

Deployment Steps

Feedback – What you didn’t get, what else you need…?

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From Automated Outage Notification to Repair

WorkAssure powered Field Tech

Performance Management

Proactive Outage Management

Common Data Collection

CMTSs and CPEs

Network outage suspected at

Node 0

EventAssure determines all devices offline behind Node 0

Workforce Management

WorkAssure creates the work order and

acknowledges with the assigned job ID

WorkAssure determines the best resource to fix

the issue (skillset, distance, equipment etc.)

Automated Outage Interface

EventAssure declares an Event with an

automated notification for a Work Order

The tech is dispatched and notified via his handheld of the outage details The tech fixed the outage and closes

the job on his handheld.

Common Periodic Data Collection for Performance and Outage Information

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Financial Impact Analysis

Rev2 RiskView® provides service outage analytics that enable prioritization of infrastructure issues based on their

financial impact.

• In real-time analysis, small and intermittent issues/outages may not exceed thresholds

• Issues may be missed for extended periods

• Some issues are precursors of larger outages

GOOD NEWS: Clues clearly point operations teams to issues and concentrations of outage risk.

CHALLENGE: Clues are needles in voluminous haystacks imprisoned in disparate databases.

Prioritizing undetected outages

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Call Center Connectivity Calls & Repeats

WorkAssure TC = Service Calls & Repeats EC = Refer to Maintenance DI = Voluntary Disconnects Biz/Residential, 1/2/3 Services

Maintenance Activity Planned, Demand

SAA ServAssure Advanced Hourly Degraded CMs US/DS Errors/SNR/Power/Util On/Offline, Node Combining

Find & Fix More Issues,Reduce Calls, TCs, Disconnects

Field Activity

Failed Telemetry

Connectivity Calls

Systematically correlate multiple inputs over time

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RiskView data warehouse architecture

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Problem resolution layered over your services

The outliers represent the most material risks.

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Example Study

Parameters of Blind Comparison Study by Maintenance Department• 1,000,000 subs in Region | 25,000 HFC miles | 180 technicians | 15 supervisors | 4 managers | 1 director • 7,500 nodes in 3,000 DOCSIS Serving Groups (combinations of nodes)

Hypothesis [operating cost without Automation – operating cost with Automation] = Quantifiable Savings

Data Inputs/Outputs Business as Usual “Control Group” (BAU): Inputs from 10 different systems in four categories:

1. Connectivity Calls2. Service Truck Rolls3. Telemetry (ARRIS ServAssure, Home Grown Telemetry)4. Preventative and Demand Maintenance Activities

“Experimental Group” (EG): Correlation and outage analytics of all above BAU data inputs

Departments Impacted by EG Discovered Issues • Service Department focuses on Non-Area Issues• Maintenance Department focuses on Area issues

Operating Cost Savings

• Savings Method• Correlated across DOCSIS Serving Groups then Alerted on unusual costs

• Base Weights applied• Reputational cost was used to Trigger HFC Maintenance Alerts

= Calls + (2*TCs) + RepTC + (3*ECs) + (2*DI) + CHG + TRB + Up&Down(Err + SNR + Power + Resets)

• During Alert Periods, 25% of Financial operating cost was used to calculate savings= $0.55/min Calls, $60 TC and DI, $100 EC, CHG, TRB (set by MSO)

• Example of Savings for a single Node on Next Slide• Alert Period

= Prior Day RepCost >=15 AND (Same Day OR Next Day RepCost >=10)• Total Operating Cost

• $3,228 = 71 Calls + 24 TCs +2 EC + 12 DI + 1 CHG + 2 TRB • Potential Savings based on Alerts driving earlier maintenance actions

• $411 = 7.5 Calls + 2.75 TCs + 0.25 EC + 1.5 DI + 0.25 CGH + 0.5 TRB

• Projected Annual Savings: $0.35 - $0.40 per Sub per year

Typical Serving Group, Node and Street Behavior

18-Day | Total Fin Cost: $3,228 | Potential Cost Savings: $ 411

Next Steps… Include “Other” Savings in Model

Customer Lifetime Value Model: Dr. Ron Rizzuto

• Lingering Issues – don’t cross threshold (yet) but create issues• Example: Trigger Alert based on accumulated cost over 3-days

• Customer Experience / CLV• Knowing Value of Customer helps quantify savings of prevented Disconnects• CLV = Present Value of (ARPU – COGS - Care Costs); Lower Care = Higher CLV

Customer Type ARPU Churn CLVAnalog $45.00 2.50% $222

Digital $67.00 3.00% $599

Video/Data $100.50 2.00% $2,057

Video/Phone $93.50 2.00% $2,062

Data/Phone $71.00 2.00% $1,790

Triple Play $133 1.00% $5,642

Triple Play $133 2.00% $2,972

Transactional Savings Impact on P&L (Proforma)

Maintenance Department: Additional Work 16K Preventative Maintenance Actions Created -4K Saved Tasks/year (2.5K ECs + 0.8K CHG + 0.7K TRB) = 12K Net New Preventative Maintenance Actions/year $1.2M Cost due to additional Tasks @ $100 each

Service Department: Reduce Contractor Head Count Approx 50% of Installs performed by Contractors @ $60.00 As TCs are reduced, Staff do “would be contracted” installs$900K Saved 15K TCs/year @ $60$360K Saved 6K Disconnects/year @ $60

Call Center: Reduce Capacity with normal staff attrition $320K 40K Calls/year @ $8

Summary: $380K Saved per Year for 1M Subs

Deploying RiskView at Cable MSOs

Start Single Server: Gather, Process, Display UI, Email Reports MSO Provides: a) Standalone Hardware, or b) WMware Machine

Microsoft Windows Server 2008 R2 64-bit 64-bit processor, 32GB RAM, 500 GB SATA @ 7200 RPM 

Rev2 Provides and Remotely Configures all Software Microsoft .NET Framework 4, SQL Server 2008 Enterprise R2 64-

bit, ActivePerl 5.12+ Connect Data Sources: Customer Care, Field Service & NOC

MSO Provides: a) IP Addresses for “Pull”, or b) Push Daily Files Rev2 Provides: Specific Data Fields and Collaboration on Queries

Call Center: Connectivity Calls Service Department:

TC-Truck Rolls, EC-Escalations to Maintenance, DI-Volun Discos Maintenance Department

Preventative & Demand Maintenance NOC: ServAssure, Telemetry

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Typical Data Sources and Fields

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Thank you!