Generation (wh)y Capturing a Moving Market Demands Agility
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1 Geoff Bryant Generation (wh)y Capturing a Moving Market Demands Agility Sales Director Australia & New Zealand October
2 Agenda Why (Y) Loyalty is to the service Understanding di Processes = Opportunity for Creativity it = Agility with Rigour Process Mapping, Monitoring, Modeling and Answer (wh)y Summary IDS Scheer AG 2
3 The future is already here, it s just unevenly distributed. Author, William Gibson IDS Scheer AG 3
4 Agenda Why (Y) Loyalty is to the service Understanding di Processes = Opportunity for Creativity it = Agility with Rigour Process Mapping, Monitoring, Modeling and Answer (wh)y Summary IDS Scheer AG 4
5 IDS Scheer AG 5
6 Why Y? As the Baby Boomers decline, Gen X is swamped by Gen Y IDS Scheer AG 6
7 Communicating with trust Blogs, Wikis, MySpace, FaceBook, SMS, etc. The Blogosphere 120,000 new blogs created per day IDS Scheer AG 7
8 Products Speed Two-minute noodles take two minutes too long Brand Label conscious Experience Not just their own, but thousands of other Gen Y users Now! Blogs SMS Podcasts Forums Future payoff or delayed gratification are not drivers Intolerant of excuses. IDS Scheer AG 8
9 Agenda Why (Y) Loyalty is to the service Understanding di Processes = Opportunity for Creativity it = Agility with Rigour Process Mapping, Monitoring, Modeling and Answer (wh)y Summary IDS Scheer AG 9
10 Look to other Industries For Telecommunications; the core CRM issues include: Customer acquisition Customer retention Cross-sell/Up Sell Maximizing Lifetime Customer Value Churn can be combatted by Acquiring more loyal customers initially Taking preventative measures with existing customers Identifying customers most likely to defect - Offering incentives to those customers you want to keep Predicting Churn: - Predictive modeling can assist churn management by tagging customers most likely to churn High risk customers should first be sorted by profitability - Campaign targeted to the most profitable at-risk customers Typical retention campaigns include: - Incentives such as price breaks - Special services available only to select customers - To be cost effective retention campaigns must be targeted to the right customers IDS Scheer AG 10
11 You don t own Gen Y You rent Gen Y IDS Scheer AG 11
12 Paying the rent on Gen Y Younger customers are more likely than older customers to find fault or have problems with their primary banking institutions 37% of Gen Y believe they would get better customer service at a different bank, compared with only 24% of Boomer and 16% of Silent Generation respondents. 22 % of Gen Y reported being upset in the past year about high fees, whereas only 14% of Boomer and 6% of the Silent Generation respondents reported the same. 18% of Gen reported being upset about a lack of ATM locations, compared with only 11% of Boomer and 3% of Silent Generation respondents Gen Y are more willing to select a non-traditional financial provider 33% of Gen Y consumers would be just as happy to do their banking with a nontraditional banking entity such as Wal-Mart or Sony IDS Scheer AG 12
13 Absorb stuff New Entrants Brands Labels Job Portfolio Career Always On Gen Y Virtual Self Services Multitasking Search Every- thing Commu- nication Gratification Mass Customisation Tribes IDS Scheer AG 13
14 Services, not products Services Pervasiveness Process to Acquire Agility Gen Y IDS Scheer AG 14
15 Building a Gen Y Customer Base Acquire new customers Better services Better access 24 X 7 banking Reduce churn Tailored services Fast turnaround Multi-service lock-in Look to telecommunication companies Every time you cross-sell a service to a customer, you decrease churn by one-third. This explains why so many carriers take cross-selling so seriously. David Meredith, director of the customer relationship management practice at AMS IDS Scheer AG 15
16 Agenda Why (Y) Loyalty is to the service Understanding di Processes = Opportunity for Creativity it = Agility with Rigour Process Mapping, Monitoring, Modeling and Answer (wh)y Summary IDS Scheer AG 16
17 Gartner BPM maturity model This is where most organizations are today (80%) Important Milestone to grow maturity IDS Scheer AG 17
18 Allowing Creativity Understanding allows creativity What if? What else? How can we? Could we? With the online stuff, you know the money is actually there, and you can monitor it online anytime you want. (Sydney Gen Y Focus group respondee) KPMG Report, Beyond the baby boomers: The rise of Generation Y July 2007 IDS Scheer AG 18
19 Agility with Rigour Agility Understand the existing process Explore different creative solutions Rigour Simulation What if? Risk profiles Legislative boundaries Strong control Confidence in outcomes Agreement from all stakeholders Alignment of IT and Business Full audit trail IDS Scheer AG 19
20 Agenda Why (Y) Loyalty is to the service Understanding di Processes = Opportunity for Creativity it = Agility with Rigour Process Mapping, Monitoring, Modeling and Answer (wh)y IDS Scheer AG 20
21 Understanding Processes Understand the process Who does what? Why do they do it? When do they do it? Where do they do it? Howdotheydoit? Should they do it? IDS Scheer AG 21
22 Repair Notification Transportation s Transportation & Distribution Planning & Preparation Asset Configuration Product Field Work Status Work Order Configuration Change Configuration Asset Configuration Product Personnel & Organization Personnel Data Control Execution Control Data Data Repair Item Transportation & Distribution Field Asset Condition Sustain Deployed Operations Inspection & Quality Assurance Completion Transportation & Distribution Line Personnel s Data Personnel & Organization Control Data Force Planning Mission Informatiopn Direct Support to Operations Field s Planning Repair & Overhaul MRO Sustain Deployed Operations Deployment Plan Line Plan Force Planning Plan Demand Product End Item Asset Data Chain & Procurement Control Data Contract Acquisition Order Order Product End Item Asset Data Inventory Shipping Information Transportation & Distribution Hazardous & Special HAzardous End-to-End Scenario: Desire- Design-Delivery Global OV OV Field Line OV Field Force Planning Product Acquisition Product Logistics Plan End Item Asset Data Contract End Item Asset Data s Planning Demand Chain & Procurement Order Inventory Hazardous & Special OV Product Acquisition Line Repair & Overhaul Line Repair & Overhaul MRO Field Line Plan Control Data Shipping Information Transportation & Distribution HAzardous Transportation 3/18/ :49:20 PM Engineering Drawings Design Specifications Asset Configuration Engineering Drawings Product Data Asset Configuration End Item Asset Data Asset Collaboration and Analytics End Item Asset Data Environment, Health and Safety Quality Local Engineering Drawings Design Specifications Transportation s Acquisition Transportation & Distribution 3/
23 Repair Notification Transportation s Transportation & Distribution Planning & Preparation Asset Configuration Product Field Work Status Work Order Configuration Change Configuration Asset Configuration Product Personnel & Organization Personnel Data Control Execution Control Data Data Repair Item Transportation & Distribution Field Asset Condition Sustain Deployed Operations Inspection & Quality Assurance Completion Transportation & Distribution Line Personnel s Data Personnel & Organization Control Data Force Planning Mission Informatiopn Direct Support to Operations Field s Planning Repair & Overhaul MRO Sustain Deployed Operations Force Planning Product End Item Deployment Plan M t i l Plan Contract t Asset Data Line Plan Demand Chain & Procurement Control Data Acquisition Order Od Order Product End Item Asset Data Inventory Shipping Information Transportation & Distribution Hazardous & Special HAzardous End-to-End Scenario: Desire- Design-Delivery 1 OV Field Line 2. Create Work Order 1. Asset turned in for Repair 4. Execute Work Order 14. Replace Carcass 16. Close Work Order OV Product Engineering Drawings Product Acquisition Design Specifications Data Asset Configuration End Item Asset Data 6 3 Line Asset Configuration Repair & Overhaul 7 14 Line Engineering Drawings Repair & Overhaul 10. Order Carcass from National l 9. Check Inventory Asset Environment, End Item Quality Asset Data Health and Safety 15 5 Local Collaboration and Analytics Engineering Drawings Acquisition Design Specifications Transportation s Transportation & Distribution 3/ OV Global 8. Order Carcass from Field 12. OV Field Shipping Product Product Force Planning Acquisition of End Item End Item Logistics Plan Contract Carcass Asset Data Asset Data from Chain Inventory Hazardous & Special s Order Demand Planning & Procurement CONUS to 8 9 Theatre MRO Field Line Check EH&S Repair s Plan Control Data 13 Shipping Information Transportation & Distribution 3/18/ :49:20 PM 10 HAzardous Transportation Shipping of Carcass to Unit 3. Automatic Work Order Creation (Scheduled ) 6. View Asset 15. Update Asset Configuration Configuration 7. Publish Technical Data 11. Check EH&S Transportation s
24 End-to-End Scenario Desire- Design-Delivery 5. Purchase Order services 7. Check inventory 10. Goods receipt 10a. Update Inventory a Marketing 8. Purchase Order parts 9 1. Asset repair notification 1 3. Create Work Order Process Transportation (Bulk) 12. Close Work Order Finance 2. Check schedule 6. Execute Work Order Update Asset configuration (Master Data) 14 Other Projects / other Process streams 4 4. HR - Workforce assignment 11. Parts Payment 12. Service Payment
25 Simplify for Agility Vodafone 13,432 functions IDS Scheer AG 1,100 functions 25
26 Agenda Why (Y) Loyalty is to the service Understanding di Processes = Opportunity for Creativity it = Agility with Rigour Process Mapping, Monitoring, Modeling and Answer (wh)y Summary IDS Scheer AG 26
27 Strapping new technology to old business organisation and processes will negatively impact value OO + NT = EOO (Old Organisation+ New Technology = Expensive Old Organisation) The most daunting gproblems with technology implementation have nothing to do with technology You can get all the technical issues right, and you will still die Michael Hammer IDS Scheer AG 27
28 The Y s have it Demographics Creativity & decisions Process & Rigour IDS Scheer AG 28
29 Beyond BI Registration: On the web: com By phone: By frank.leatherland@ids-scheer.comcom IDS Scheer AG 29
30 October 2008 Thank you for your attention!
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