Industry solutions 2012 final

© © Copyright2011 Hewlett-Packard Development Company, L.P. The information INTERNAL USE
Copyright 2011 Hewlett-Packard Development Company, L.P. HP
contained herein is subject to change without notice. Confidentiality label goes here
ONLY

What you will learn today?

1. IPG‘s Vertical approach
2. What are we selling?
3. Who is the ideal customer?
4. What is the typical sales process?
5. Where do I go for more information and help?

© Copyright 2011 Hewlett-Packard Development Company, L.P. The information

IPG Focused Vertical Approach
1. Choose vertical industries
2. Indentify document centric business problems with greatest pain
3. Define solutions for the customer‘s specific business processes
4. Define a common solutions framework (reference architecture) to
address most needs


Market opportunity by industry

3X

$58.8B

IPG TAM for document management solutions including
hardware, software, and services $63.9B
(Office 52%, Commercial 25%, Production 23%)

Source: HP internal data; *Timing of market opportunity as well as geographical position/strengths if IPG in public sector need to be evaluated in detail

Banking & Mnfg. Healthcare Govt. Education Retail Utilities Media
Insurance
Loan Product Patient care Governme Student Supplies Service On demand
applications lifecycle documentation nt Records distribution Tracking printing and
$2000M Mgmt. $585M Contract Mgmt. and Inventory $158M publishing
$132M Bids and $291M $158 $190M
Awards
$456M
Insurance Product Patient Records Mgt Cost On Demand Billing and Customer Digital Rights
Policy design $468M Containment Printing of Invoicing Billing Mgmt.
Issuance $110M (Capture is minimal) $365M Course materials $78M $78M $70M
$850M $291M
Compliance Supplier Patient Government Student Marketing Customer Subscriber
$210M Relationship admissions Constituent records Collateral Supplier Processing
Manageme $351M $274M admissions $38M Contract $60M
nt solution Management
$66M $182M $38M

Contracts $138M
Insurance
Claims
Processing
$200M
Invoice Processing $12,500M (+Retail, +CME)
New Account Opening $300M (+CME, Insurance Policy Issuance $850M, Patient Admissions $351M,
Student Admissions $182M)
Smart Marketing Suite $11,000M
Existing solutions Solutions to be defined Source: McKinsey, InfoTrends

The $ amounts includes SW (Capture, forms Automation, Workflow and Document Mgmt.), HW (SFP, MFP and
scanners), system integration services, and custom web front end development.

Savings from MPS allows customers to invest
Opportunity to improve document centric business processes

FOCUS ON COSTS FOCUS ON GROWTH
―Whereas 201 was a
1
MPS DOCUMENT CENTRIC stabilization year for corporate
WORKFLOWS
America, 2012 will be a year
of investing in laying the
foundation for growth,‖ says
PEAK Mark Spelman, global head of
strategy at Accenture, a
ECONOMY

consultancy. That is likely to
mean tapping into some of the
TROUGH mountains of cash that
2012/2013 American firms have
accumulated over the past few
CONTRACTION EXPANSION
years.
TIME Source: Economist

Ideal Customer Profile
Key targets for Document Workflow Integration Services
Enterprise activity to look for:

 Lines of Businesses that manage Streamline their paper based workflows.
document centric processes. Reduce:
 Desire to automate, looking for
significant improvements. • Time to money. Shorten the time to complete
 Pre-existing investments in document the business process
processing hardware
• Headcount.
• Cost of processing.
Content management behavior to • Better Return on Assets
look for: • Print and related document management costs
 Content spread across disparate Drive continuous process improvements through
systems that is both complex and costly
to access and manage
business analytics, monitoring and reporting.
 Difficulty managing regulations in Demand for instant access to documents and
document management & electronic content.
discovery
 Current approach to direct marketing Ensure data security & regulatory compliance.
is "one-size fits all" (e.g. relies largely Improve customer messaging and experience.
on generic, pre-printed document
inserts, etc.)
7 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information

SEAMLESSLY flow information through bottlenecks

Healthcare

Publishing
Education

Insurance
Retail
FSI
Solution Partners / System Integrators
2011
2012
scan-enabled
business devices

SMBs & Enterprises IPG on/
IPG on/off-ramp
off-ramp
seamless, secure,
context-aware experiences

Ad agencies

Print Service Providers Publishers

Content owners
Profitability

Better RoA
Customer
Retention

Revenue

Growth

Time to
Money
Improving Business Outcomes

Typical Challenges in a Document
Intensive Environment

9 July 2011

Document Process – Future State

Future State

10 July 2011

Office & Workflow Document Digitization
A pre-integrated stack of HP and Partner products to help optimize the document lifecycle

Create / Digitize: Authenticate:
Create Digitally, Scan & OCR Identify, Tag, Security
Smart document design &Integration
Content Classification, federation
with business applications : Conversion from
paper, audio, video
& Tracking: Policy enforcement
over unstructured content

PD
ENTERPRISE
Digitization workflow CONNECTORS
Graphical workflow modeling and approvals Connectors to
enterprise
databases and
applications
(IDOL)

Store/Analytics/ECM:
Off-ramp: HP Cloud Storage Serv. Repository
Workflow process review
Print, Publish-to-web ECM, Search & Analytics, Digital Iron Mountain
Multi-channel delivery Records Retention
Optimized multi-channel messaging
and offers

11 July 2011

DWIS Reference Architecture builds on the
Document Digitization Workflow

12 July 2011

Business Value Framework
ULTIMATE BUSINESS GOAL SHAREHOLDER VALUE

Grow our business
Improve Customer Loyalty
Become leading U.S. P&C Reinvent Protection & Retirement
Executive KPI Insurer in U.S. in 10 years for the Consumer
Customer satisfaction Reduce Operating Expenses Improve Book Value
(Direction) Grow Premium 100% Measure (TBD)
Intent to renew Operating Margin (TBD) (TBD)
Willingness to refer
Improve share 810 pts.

Core Financial KPI REVENUE COST CAPITAL
(Direction) 7% annual growth (Required to achieve #1) (Reduce Operating Expenses TBD) (Increase Shareholder Equity, TBD)

Business Initiatives Sales and
2011+ Customer Reinvent Agency and Next Infrastructure My Network
Marketing Data Center
(Strategy, Priority Growth Focused Products and Direct Channel
Information
Generation Services
Cons
Desktop
Language) Initiatives Reinvention Services Performance Claims Transformation (Thin Client)
Strategy

• Improve Combined Ratio • Increase Virtualization (~50%)
• Increase Customer Retention (TBD)
• Improve Expense Ratio • Reduce IT Op Expense (TBD)
• Increase Auto/Property Premiums (7%/year)
• Improve Claims Ratio • Automate IT Services/Ops (TBD)
• Increase Allstate Financial Revenue (TBD)
• Improve Customer SetClaims • Reduce IT Labor Costs (TBD)
Operating KPIs • Reduce Desktop Costs (TBD)
Process/Function • Product Management
• Insurance Ops & Customer Service • Application Consolidation (TBD)
• Sales (Agency/Direct)
• Claims Management • Reduce Networking Costs (TBD)
• Marketing
• Policy Administration
• Customer Service
• Underwriting/Risk Management • IT/Infrastructure and Application Services

―HP One to One Insurance‖ HP ―Instant On‖ Enterprise ―HP Flex IT for Insurance‖
• HP Business Intelligence Solutions • HP Software/BTO (Automation)
• Application Transformation
• HP Exstream/ Multi Channel - • HP ConvergedInfrastructure
• Converged Infrastructure
HP Solution • HP ES App ServicesApp/Portal Development
– Text • HP TS Consulting/Support
Text
• Enterprise Security
Text
Initiatives • HP Software: BTO (Quality) • HP Networking / Services
• Information Optimization
• HP Insurance Industry Solutions • Hybrid Delivery
• HP ES App Services ( ITO, BPO Modernize),
• HP Policy Accelerator • HP Thin Client /
• IPG Dynamic Marketing / Publishing • IPG –MES/Managed Print Services


Consultative sales engagement

EB AGM
IPG ACCOUNT MANAGER RESULTS

TECHNICAL SERVICE
BUSINESS
PROCESS A leading MPS
CONSULTANT CONSULTANT provider
8 of top 10 CONSULTANT
Insurance companies use
IPG services and solutions
—
+$8B in TCV
7 of top 10 —
Healthcare companies use
IPG services and solutions
23B Pages
under contract
Conduct a program Perform an Optimize
or workshop assessment results


Document Workflow Integration Services Framework

Document Process
Invoice Processing Solution
Optimization
Claims Processing Solution
• Improve process efficiency & meet
compliance needs • Process improvement bringing cost
• Lower operating costs through Cloud up to $15-20 per claim
saving
solution • On-demand document retrieval for
Workflow Technology
quicker approvals
• Gain 2-3% early payment discount
Roadmap
• Straight through processingpprovers

Product Evaluations &
POC

Document Workflow Industry Solutions Product
Assessment Implementation

MphasiS/HP Labs

Industrie
s Bankin Insuranc Manufacturin Retai Public Sector CME Educatio Healthcar Transportatio
g e g l n e n

Enterprise Industry Global Intellectual
Architecture Expertise
Delivery Property
15 July 2011

More information
http://intranet.hp.com/ipg/ww/GblEntBuss/VerticalSolutions/Pages/home.aspx


Dashboard to track your Funnel and Wins/Losses

Business Questions Addressed:

• Am I winning more opportunities?

• Who are my top customers? (top deals by
Data Filters:
deal value)
• View by region: WW, AMS, EMEA and
• Is the average deal size of won deals APJ
increasing over time?
• Is the average deal size of lost deals • View by industry and sub-vertical: includes
decreasing over time?
all as in the Vertical Hierarchy
• Why are we winning deals? Against
whom are we winning? • View by Product Line: includes select IWS,
LES, GSB and MES product lines
• Why are we losing deals? Against whom
are we losing? Other Details:
• Tool is Access-based with an Excel front-
end

• Data will be refreshed once every month

• Tool will be available on a shared drive
fileshares.corp.hp.comgroupsIP
GFunnel

How to Download the Tool

 Click Run on Start Menu
 Paste Shared Drive link – (URL)
fileshares.corp.hp.comgroupsIPGFunnel
 Click Ok
 Once folder is open, double-click on MES Funnel Tool zip file
 Select all files
 Click on extract
 Save to C drive on desktop
 Close Shared Drive window
 Go to file location on desktop
 Open *only* excel file
 Once Excel file opened, on top below taskbar, click on ―Options‖
 Select ―Enable this Content‖
 Click Ok
 Get Started 


Who can help? IPG MES Industry Experts
Market Development
Consultants. Over 250 years of Vice President

combined experience.
Market Development
John Tomesco
John.Tomesco@hp.com

Executive Assistant
Lindsey Stratton
858.655.3434
Commercial & Service to Enterprise Solutions
Pub Sector & Healthcare
Services Industries Strategist
Peggy Dunlea
TBD Akila Kumar
Peggy.Dunlea@hp.com
@hp.com akila.kumar@hp.com
832.878.2146 408.223.8217

Asst., LeeAnn McBath Asst., LeeAnn McBath
208.396.2806 208.396.2806

MDC – Financial Services MDC – Process Mfg, MDC – Communications,
MDC - Defense & Security MDC -- Government
MDC – Healthcare Solutions Business Mgr Utilities/Energy Media & Entertainment
Agencies Elisabeth Rochman
Randy Hickel Joe Wagle Robert Penrod Eileen Griffee
Alan Saxton Elisabeth.Rochman@hp.com
Randy.Hickel@hp.com Joe.Wagle@hp.com Robert.Penrod@hp.com Eileen.Griffee@hp.com
Alan.Saxton@hp.com 410.919.7370
510.693.6721 +41 79 8282832 917.975.8133 301.874.1779
208.599.5994

MDC – Healthcare MDC – EMEA Sales/
MDC - Public Sector MDC – Government MDC – Retail Banking MDC – Discrete Mfg
Valeria Phillips Gary L. Rodgers Laurie Eldridge- Chuck Gowin Marie-Amélie Masnou Dev/Market Support
Valeria.Phillips@hp.com Gary.Rodgers@hp.com Shanaman Chuck.Gowin@hp.com Marie-Amélie.Masnou@hp.com Valérie Da Fonseca
856.308.7799 765.520.6267 Laurie.Eldridge@hp.com +49.162.289.7745 Valérie.Da-Fonseca@hp.com
813.454.3801
610.850.1237 +34. 616.181.980

MDC – Retail-CPG-
Distribution
Marc Monsonego
Marc.Monsonego@hp.com
+521.555.4329950


Account opening accelerator for
communications, media and
entertainment

Eileen Griffee
1 October 201 1


Agenda

• Business Problem Definition
• Target Customer Profile
• Business Process – High Level Flow
(Reference architecture)
• High Level Solution
• Solutions Offer/Pricing
• Value Proposition (HP Assets and
Differentiation)
• Market Opportunity
• Competitive Landscape and HP
Differentiation
• Existing Customer Footprint
• Revenue Potential


Business problem definition
What service providers are looking for – Transform customer
experiences though enhanced service delivery
• Manually processing documentation resulting from subscriber services (contracts – activation and
changes, communications, etc.) creates significant issues with the customer experience, enterprise
information management, security programs and employee resources.
– Effort required by store reps, customer service, and call center associates reduces time spent with customers, more time
handling paper/less time serving customers
– Exposure to security risks due to content that includes confidential information
– Storage - inability to access information in future (across retail environment and from storage location) and costs
– Deliver content in the manner/platform customers request
– Speed time to revenue – account activation required before billing begins
• Must continue to invest in technology to stay ahead of the competition but must also balance with the
business organization‘s strategic goals such as enhancing company and employee productivity and
improving the use of company assets.
• Processing paperwork from internal operations and customer interactions must be processed and
archived in a manner that enables data compilation and easy access for future information searches.
• Must be vigilant and protect private information conveyed at all points through a converged
communications network
• Must address document retention and compliance - automated tracking provides the comprehensive audit
trails needed for Sarbanes-Oxley, HIPAA, and other regulatory/compliance requirements


Business problem: Account Opening challenges
Good customer service reduces churn
• The customers‘ experience in the retail environment needs to be the best – from opening an account to reviewing
handsets
• Technology is no longer a barrier – customers can easily move to another service provider with comparable
devices and services
• Faster and easier access to information is required

It takes too long
• The process on average could take 57 minutes which impacts the number of customers each retail associate can
serve
• Waiting customers leave the store and may go to the competitor
• Faster time to contract charging*

Contracts contain confidential information
• Customer contracts contain confidential information which must be stored securely – storage of the contract
documents are often unsecured
• Compromised customer information can lead to significant legal issues and resulting costs

It costs too much
• Storage costs are high (delivery, retrieval and long term storage)
• Corporate initiatives to reduce operating expenses
• Printing volumes and costs are high

Customer contracts cannot be viewed across retail organization
• If a customer visits a retail location to ask a question, it is likely their contract will not be able to be viewed by
another retail location
• Other retail locations must fax customer contract to shop customer is visiting
• Many service providers ask customers to come back at a later time or date to answer question

Manual processes for audit and tracking
• Daily audit of sales contracts, discounts, promotions, etc. lead to reduced time on sales floor and manual
exception processing

*if mobile providers cannot begin charging until the paperwork is received in system

Target customer profile
CEO, COO COO, Business Director of Retail
Operations Operations

―We need to improve our customer ―It‘s more than reducing costs – it‘s ―We need to provide the best customer
experience while we reduce linking across and automating business experience from the moment they walk
operations costs, reduce complexity processes and improving the customer in the store until the time they leave.‖
and the impact on environment.‖ experience‖

Director of Director of Corporate
Retail Marketing Counsel
Information Media/Library
Technology Heads

―We need to reliably support our ―Using our business output to provide a ―Our customers entrust us with their
customers and provide the best service the best customer experience and to information. Also, compliance is not
and support to our internal and support our customers with a an option and requires security and
external customers. personalized user experience. tracking of critical information.‖


How do I target the right customers?
What accounts should I focus on? Service providers (telecom, wireless and
cable)
How do I contact the LOB?
• Determine the organization driving the retail operations and then ask for sponsorship into
a meeting.
• If you‘re not sure of the name of the organization, check the careers/jobs web site for the
customer. See next slide for who to call on and questions to ask.
Building a bigger story. . .
• Account Opening Accelerator can be part of a larger initiative they have:
– Retail operations efficiencies – ensuring retail associates spend time with customers not involved in back office processes
– Improving the customer experience
– CRM – using customer data to create targeted communications
– Records retention - ensuring that they have appropriate documents available or destroyed
– Information lifecycle management
– Information security – reducing the risk of exposure of customer information
– Compliance - ensure that they are in compliance with local industry regulations
• Additional uses: Account Opening Accelerator can also be used for back office processes
- HR paperwork, inventory documents, sales reports

contained25 2/16/2012 HP Confidential
herein is subject to change without notice. Confidentiality label goes here

How do I sell the solution to the LOB?
Who to call on/Questions to ask

• Ask for a tour of a retail store.
• Director of Retail • What is the process for opening an
Operations account or adding a new service?
• What type of forms are required?
• Director of Retail • Do you need a copy of the
Marketing Operations customer‘s license, credit card, etc.?
• What type of documentation do you
• Director of Retail Sales provide to the customer? Coverage
• Divisional Retail maps, terms and conditions, rates,
additional services available?
Manager • How are the forms processed after
• Director of Retail IT the customer leaves the store?
• How are the documents stored?
• How long are they stored on site?
• Is there an off site records
repository?
• How are they moved to the records
repository?
contained26 2/16/2012 HP Confidential
herein is subject to change without notice. Confidentiality label goes here

Before After
• time spent w/customer • improve customer experience
• time spent processing paperwork (reduce churn)
(store manager and store rep) • increase number of customers
• storage costs
served
• reduce printing costs
• risks associated w/unsecure
customer info • eliminate storage costs
• contract fraud • reduce carbon footprint
• inability to attach new svcs to • secure information
existing contract • contract/sales audit
• inability to locate contract
• central repository lookup for
information beyond store services – contract available to
mktg, call center, sales, etc.

Detailed process steps
(1) Sales rep types in customer / contract information using HP Exstream Live connected to xxx CRM
system.
(2) Copy of customer identification may be required.
(3) Customers reads the contract and signs it electronically using an eSignature pad or sales associate
prints contract and customer signs contract.
(4) If there is a signed document, the sales rep scans the signature page and any other pages that must
be maintained for their files. The customer leaves with the hard copy and the service provider has
the scanned image of the contract.
(5) Image of signed contract is pushed to xxx CRM system with all the customer information captured
by HP Exstream Live.
(6) An email is sent to the customer through HP Exstream Live with a pdf version of the contract
attached.
(7) A copy of the contract is sent to SharePoint for archiving with relevant indexes.
(8) Sales rep scans required documents (ID, bank statements…) using MFP.
A cover sheet is printed with a unique ID (barcode) referring to the contract (or sales rep types in
the contract ID on the control panel) for matching with Contract into SharePoint .

28

Account opening for CME workflow
Before HP
HIGHLY PAPER-BASED PROCESS NEGATIVELY IMPACTS CUSTOMER SERVICE
and can pose significant costs and risks associated with unsecure information.

Customer provides Retail associate Customer Retail associate Customer receives
information scans and copies signs documents prints multiple copies hard copy of
required documents for record-keeping contract

$70K PER YEAR 13 $2.34
Total costs (Off-site storage) Total pages printed Total page
dollars/contract

$ $

Service event requires retrieval of contract
Off-site archive Courier to archive In-store storage
from off-site and physical transport back to store

Current state process workflow
Customer experience and cost per gross add
(current overall process cost) $300 to $400/customer
Avg transaction 57 Significant
minutes Print volume
from
contracts

Reduce environmental
impact through
reduced pages
Reduce risk of
exposure to loss of
confid info

Approx 1 hr/day per
Reduce store
storage Required for sales
costs audit

Reduce
environmental
impact by
Improve overall
eliminating
customer experience
storage trips
= increased revenue
and reduce churn

Black line = in store contract process Red Line = process to retrieve contract

Value proposition
Suggested offer addresses key pain points in the current process
Service Provider Financial
Efficiency Cost Savings
Market visibility

FROM current state… HP offer details
• Ability to offer completely paperless
• Multiple copies of contract • Contract copies printed and • Cost to acquire a customer – • Revenue vs. CPGA
contract process.
printed and stored manually stored in retail environment by Cost per Gross Add (CPGA)
sales associate under scrutiny • Controlling operating • After data is captured in contract, copy
• Service providers deal with expenses to enable improved of proof of identification may be
paper based processes for • Fax copies to review contract • Operating expenses are technology and services
required. Ability to capture and route
customer transactions and originated in different store unknown and out of control
internal processes in the retail (printing, off site storage) • Reduced opportunity for fraud proof of identity – license, passport or
environment • Manual document based bank statement into customer
processes are inefficient, database. No hard copy doc to store
increase exposure to security or expose to loss.
risk, labor intensive and
reduce time spent • No need for any documents or
w/customers signature to be retained or archived
(subject to legal approval).
TO future state… • After signature, customers may want
an electronic copy of agreement or
• Improved customer • Process automation • Reduced costs (printing, • Lower churn rate drives
experience, reduced churn storage/retrieval) improved revenue and small % will request hard copy.
• Efficient end-to-end processes increased margin • Provide real time search and retrieval
• Decreased risk of exposure of resulting in improved • Increased productivity and
to speed up customer service across all
secure information operation, increases the reduced CPGA • Fast, transparent and
number of customers served auditable processes resulting touch points. Ability for customers,
• Reduce issues with • Potential for faster time to in confidence, satisfaction, other stores, mktg and call center reps
compliance audits • Ability to view contract - real market low customer churn and to view agreements on-line.
time search and retrieval to increasing revenues
• Ability to create targeted improve customer experience • Reduced carbon footprint • Store copies may be missing or
customer communications across organization incomplete
• Store copies are subject to theft, fire,
or flood.
• Daily audit by mgmt of contract
Offer addresses key pain points and presents opportunity to improve customer experience, reduce and improve multiple transactions automated with electronic
aspects of CPGA and reduce churn. contracts

SOURCE: Customer interviews, JD Power, team analysis

Account opening for CME workflow
After HP Account Opening Accelerator
AUTOMATED PROCESS IMPROVES THE CUSTOMER EXPERIENCE
and can reduce costs, administration time, security risks, and carbon footprint.

Mail
E-mail Web

Customer provides Retail associate Customer signs CUSTOMER DATABASE MULTI-CHANNEL
information scans proof of ID signature pad; wet DELIVERY
if required signature if required.
Contract delivered to customer
platform of choice
75% REDUCTION
IN STORAGE COSTS

0 PAGES PRINTED
Documents delivered via
email, internet portal, etc.
ELECTRONIC ARCHIVE
Contract image (not just data)
accessible to other retail locations,
marketing, customer service, and call >$2M SAVINGS
centers for services FOR 1M NEW CONTRACTS

Future state – Hybrid process workflow
Improved customer experience, reduced churn and Cost per Gross
Add (current overall process cost) reduced by $3.5 mil*
Streamlined process enables retail
associates to spend less time on processing
contract and more time on educating customer
or enables them to move on to next customer.
57 min/trans
5 min saved/trans x 1mil trans/yr = over 83K hrs
83K hrs = over $955K labor or 1,456 addl trans

Reduced printing costs by >60%
$324K for 1 mil/yr
Eliminating paper contracts eliminates (sm % of customers still request
risk and loss of confidential information paper contracts but none required
on site. by store.)
Millions saved from lack of data HP Capture
breach software
100% improvement

Reduce time for audit of daily
transactions by at least 50%
30 min/day per store, 360
days/100 stores = 18K hrs saved or
over $207K labor

HP Exstream

Eliminating need for off site storage.
$77K for 100 stores - 100% savings
Significant reduction in opex and impact Electronic contracts enable
on the environment (no wkly/monthly pickup) access to contract by all retail outlets,
100% improvement call centers and marketing and
reduces requirements for fax
5% of contracts/1 hr per = $575K/labor
Eliminates contract retrieval cost .46 and
100% reduction in fax usage for sharing info

Dotted line = adding the barcode or metadata via enterprise or Exstream Blue line = process to retrieve contract from external storage provider
Black line = in store contract process *based on 1 mil contracts


High level solution –
Account opening accelerator for CME


Business process – High level flow
Manage
Operational
Business Activity SLA tracking/
Dashboard BI Analytics Data store
Monitoring Op. monitoring
Retail Operations
Notify Real-time analyzed data Real-time data

Retail associate

Channels Capture Validate Collaborate Integrate Customer
Back-end Systems
Format Workflow Real-time
Scanning
Verification management Integration
EDI*
ERP
Image Backend Queue Batch
Enhancement Validation management Integration CRM

Variable Adapter Legacy
Data extraction Data Enrichment
Document printing factory
Fax
Others

Process Specific Applications

Mail Shared services
Corporate HQ IT
Document Operational
Security Reporting tool Audit Trail Utilities Data storage
Management


Savings per contract
Current average CPGA = $300
Savings and new average cost = $297
Total $ savings over 1 mil contracts = $3.5 mil

Type of savings Cost per contract
Reduced print costs .32

Reduced storage costs .31

Reduced contract retrieval .46

Reduced fax costs .07

Subtotal hard costs 1.16

Reduced labor cost for contract/document retrieval .57

Reduced time per transaction .96

Reduced labor for audit .82

Total 3.51


Creating the ROI
Elements
Input Data
Input variables Input values
No Of Stores 400
No Of Contracts 1000000
Average Pages Per Contract 3
No of Boxes per Month Per Store 3
% of Contracts Retrieved 5%
No Of Working Days 312
No of contracts per store per day 10

Fixed Data
Fixed variables Fixed values
Cost per page $0.18
Cost per Pick Up $2.01
New contract Archiving per Box $19.56
Time Taken per retrieval (Hrs) 1
labor cost of an average retail associate ($) $11.51
Contract Retrieval fee $9.2
Fax line Cost reduction $180
Time per transaction (mins) 57
Reduction in time (mins) 5
Time taken For Audit (mins) 30
Average Week 6
Reduction in Contract Printing 60%


Creating the ROI (cont’d)
Results
Particulars $ Savings
Reduced/Eliminated Printing Costs $324,000
Reduced Storage Costs $310,608
Reduced Time and Cost per Contract retrieved $1,035,500
a) Labor Savings $575,500
b) Contract Retrieval fee Savings $460,000
Fax line Cost Reduction $72,000
Reduced Time Per transaction $959,167
Auditing Savings $718,224
Total $ savings per Million contracts $3,419,499


Impact areas
Description Impact

Hard Soft Customer
Cost Cost Experience
Customers
• Unable to view agreements on-line X
• Unable to view agreement at other stores X

Operations
• Printing (paper, toner, maintenance, downtime) X X X
• Delivery of agreements to Iron Mountain X X
• Retrieval of agreements from Iron Mountain X X X
• Too-frequent printer failures may create sales bottlenecks in stores during periods of peak volume X X X
• Inefficient process for viewing agreements archived at Iron Mountain X X
• Inconsistent processes in place for retention of agreements within stores X X X
• Ability to complete a sales transaction without printing store copy or obtaining customer signature X X


Impact Areas (cont’d)
Description Impact

Hard Soft Customer
Cost Cost Experience
Call Centers
• Unable to view agreements on-line to resolve customer disputes X
• Refer customers to stores to obtain a copy of the agreement X X
• Increases time and expense for dispute resolution X X
Security
• Agreements with sensitive information in back office and mall storage areas X
• No disaster recovery if copies (in-store, in-mall, or at Iron Mountain) are destroyed by fire or flood X

Sales & Marketing
• Customer experience varies by store X
• Competitors offer paperless agreements X

Store Management
• Spend time daily reviewing 100% of agreements even if not all have exceptions X
• Storage of agreements could be used for marketing materials or additional product X


Account opening accelerator for service providers
Total first year cost per 100 stores - $977,955
Devices
all extensible MFP‗s
MPS - 2 MFPs x 100 stores = $194,370

Software
HP Exstream Content Capture OCR or OmTool
Management tools/Composition engines or Hyland
Exstream or Nuance
Kofax Capture License for 2 MFPs x 100 stores = $264,868 and $250,000 Exstream

Services & Support
• Assess it
• Design it
• Implement it
• Keep it running

Kofax Capture Support/Service $66,217 + Exstream $52,500 support + $150,000 services

Value proposition
Service provider economics: Offer presents a $1.5 M opportunity
Economics for service provider (cost per gross add)
300 Key assumption:
3
HP can capture half of savings through
200 paperless contracts.
300 297
100

0
Current cost per Value released by Future cost per
gross add offer gross add

Account opportunity ($ 5MM for 400 stores)

300
297
200
300 1.5m
100 3
1.5m
0
Total cost per Spend not Spend addressed by Value released to Revenue opportunity
1 2 2
contract addressed by offer offer customer = 400 stores

1. 1m in Europe net adds contracts net adds in 2010
2. Spend on non-document processing activities
SOURCE: customer data, industry analysis

Market opportunity:
Service provider industry analysis
Business imperatives for service providers, challenging retail
operations and contract process
• Cost reduction initiatives – Operating expenses are continually being cut to
provide funding to improve infrastructure, services, content, customer experience,
etc.
• Customers require personalized experience – customers expect information and
content to be delivered in the manner they request
• Tightening operating expenses- Increasing competition limits revenue, so the Cost
Per Gross Add and Cash Cost per User are under scrutiny
• Provide Best Customer Experience- new technologies enable customers to move
from one provider to another if they don‘t receive the best customer experience

All of these imperatives point to a simultaneous focus on improving the customer
experience, transforming the infrastructure and improving efficiency


Business case for HP Account Opening
Accelerator/Paperless Contracts
Improve customer experience—reduce operating expenses
Eliminate or reduce paperwork required for new account opening process and
storage requirements for paperwork
Enable sales associate to increase customer
interaction relevant to smartphone features by reducing time for contract transaction
Reduce exposure to security risk through
unsecured customer information
Reduce printing and storage costs
Reduce environmental impact through reduced printing and pick ups by off site
storage provider
Auto create personalized welcome kit and deliver customer information in their
chosen delivery method
Improve time to revenue

Reducing overall operating expenses due to reduction in CPGA =
significant savings


Account Opening Accelerator for CME

Before After
•time spent w/customer •improve customer experience (reduce churn)
•time spent processing paperwork (store •increase number of customers served
manager and store rep) •reduce printing costs
•storage costs •eliminate storage costs
•risks associated w/unsecure customer info •reduce carbon footprint
•contract fraud •secure information
•inability to attach new svcs to existing •contract/sales audit
contract •central repository lookup for services –
•inability to locate contract information contract available to mktg, call center, sales,
beyond store etc.


Customer – Telefonica O2 Account Opening Accelerator - paperless contract
processing (first step - deploying mfp’s, next steps planned)

(4) Electronic version of
(1) Data entry into AOA (2) Electronic signed contract sent via
Module signature of email to customer
the contract
captured by
AOA
(5) Electronic
archiving of contract
in SharePoint

(3) Image of
signed
contract +
contract
information
O2 (6) Scanning of required attachments
sent to CRM
(ID, bank statement…) archived into
CRM SharePoint (attached to the contract)


Communications, Media and Entertainment Snapshot
CM&E
• 1800+ Application Services team focused on Telecom and related technologies (3200+ in BPO)
• 700+ BPO FTEs providing end to end services to the client
• Key Support for Network and Business Applications for a couple of leading US CSP‘s with an 15:85 on/off mix
• Servicing CSPs, OEMs and M&E clients in EMEA, APAC and Americas
• Trained and certified Telecom professionals
• Applications Services across the Telecom Applications Map
• Over 10+ years of service excellence across clients

OSS BSS BPO M&E
• Application development and • Supporting mission Critical • Supporting Wired Line, • Content Production
maintenance Services • Content Management
Billing applications both retail Wireless and Cable
• Fraud Management & Service and wholesale systems • Providing end to end services • Content Distribution
Assurance - COTS platform
enhancements and support • Application Development and from new customer acquisition • Editorial Services
Maintenance for Convergent to servicing through multiple • Entertainment Experience
• Network Management
Mediation COTS Platform channels Management
• Supporting critical Provisioning • Market Research
and service fulfillment systems • Systems Integration
• Data migration and transition of • Media Monitoring &
• Supporting critical Order
management systems a critical billing system Analysis

Differentiated Value Prop
• Large transformation program/ project management capabilitych
• Excellent understanding of CME customer needs and domain gained through experience servicing customers across the globe
• Innovative service delivery set with a focus on operational efficiency, delivery excellence and a cost effective 80/20
offshore/onshore model
• Expertise in Agile Factory model
• Blend of domain/technology expertise in packaged/custom apps, systems integration, self-service portals/content management
47
and testing leading to an improved customer experience
2/16/2

012

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