2015 Global Contact Center Solutions Integration Customer Value Leadership Award

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1 2015 Global Contact Center Solutions Integration Customer Value Leadership Award 2015

2 Contents Background and Company Performance... 3 Industry Challenges... 3 Customer Impact and Business Impact of Dimension Data... 5 Conclusion... 8 Significance of Customer Value Leadership... 9 Understanding Customer Value Leadership... 9 Key Benchmarking Criteria Best Practice Award Analysis for Dimension Data Decision Support Scorecard Customer Impact Business Impact Decision Support Matrix The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices About Frost & Sullivan Frost & Sullivan 2 We Accelerate Growth

3 Background and Company Performance Industry Challenges Customer contact systems integrators and value-added resellers, or solution integrators, (SIs) have long given customers a choice when it comes to implementing one or more systems, applications, and networks. The workhorses of the industry, laser focused on customer outcomes, these companies connect original equipment manufacturers (OEMs), hosted solutions firms, and their customer companies, supplementing professional services and bridging the gaps in integration expertise. In a world in which the contact center is no longer an island and viewed as a cost center, but instead a multi-channel customer engagement hub, the need for such expertise is even more critical than before. In particular, other areas of the business are now crucially intersecting with customer contact making the technical landscape even more complex. There are several industry trends intensifying this complexity - challenging SIs to keep abreast with talent and expertise, including: The Push for Omnichannel Customer Care For over a decade the contact center industry has been providing multi-channel customer contact, but now has steadily moved in the direction of omnichannel customer engagement. Frost & Sullivan defines omnichannel as seamless and effortless, highquality customer experiences that occur within and between contact channels. It ensures that data and context from the initial contact carries over to subsequent channels, reducing customer effort, improving the customer interaction, and enabling the business to tailor the customer journey. This is no small feat as businesses have added new channels over time, often from disparate vendors, and sometimes with ownership originating in areas outside the contact center. Integration, the bread and butter of the SI world, has been challenged with the integration or removal of the system, application and data silos that are a result of the disjointed addition of multiple customer interaction channels, either as independent efforts, or as the result of growth through mergers and acquisitions. SIs also are chartered with being a trusted advisor in the creation of omnichannel implementation roadmaps, and facilitation of cross-organizational ownership and support strategies. Additionally, SIs also may have to integrate omnichannel contact center solutions with the back office, unified communications (UC) applications, CRM, and other business applications. Frost & Sullivan 3 We Accelerate Growth

4 The Rise of the Cloud and Turnover of the Installed Base In 2014, revenues for cloud-based contact center solutions surpassed premise-based solutions for the first time. Frost & Sullivan research forecasts market revenues from cloud-based solutions will grow from $4 billion in 2015 to $8 billion by This has created an opportunity for SIs to assist clients in managing the movement of applications and operations to the cloud, in many cases as part of hybrid deployments. This has accelerated as the massive installed base of systems and applications within contact centers nears end-of-life, cannot support some of the newer channels, and lacks much of the rich functionality now required for multi and omnichannel delivery. However, there also are several concurrent challenges trending for SIs, among them: Globalization It is true the world is shrinking when it comes to business. With e-commerce, movement to the cloud, and other factors, many businesses have gone global. This has introduced the challenge of requiring in-country expertise, multiple regional and local solution provider offerings tailored to regions that need to be supported, as well as the creation of global networks to support applications. Proving Value With the move to the cloud, some companies have jumped from premise-based systems to cloud-based solutions as a way of cost cutting, at the behest of creating the optimum contact environment. All-in-one suites may suffice, but other times not be as rich in function as a company may require. Off the shelf integrations and standard APIs may be chosen over custom implementations. System integrators are therefore challenged to prove they fill the gap by being able to help select, and then aggregate best-of-breed solutions with incumbent vendor offerings or along with suites of products. In addition, industry consolidation and the movement to the cloud by legacy vendors have reduced the number of competitive products that require specific industry expertise. Moreover, these same vendors have aggressively moved to simplifying their offerings, making installation easier, and lessening reliance on outside consultation. Finally, many have pumped up their professional services organizations, cutting into SI s core markets. In order to stay competitive in the contact center market, SIs must respond to these challenges and changing market conditions, proving their value to customers. Frost & Sullivan 4 We Accelerate Growth

5 Customer Impact and Business Impact of Dimension Data Criterion 1: Ownership Experience The term trusted partner is the hallmark of systems integration. In this category Dimension Data excels across its portfolio of products and services. The company takes a solid partnership approach to client acquisition, whether an SMB or a well recognized global brand, cultivating relationships that start long before the solution is implemented, across the life time of that relationship. Core to the partnership approach is the attitude that is fostered by the corporate goals of Dimension Data Accelerating Your Ambition and Client at the centre of everything which drives its 28 thousand employees to accelerate their ambition for themselves, customers, shareholders, and finally, to make a difference in society. The breadth of offerings it can provide, the balance of technology vendors, and the ability for the company to support architectures across different vendors is impressive, and a critical differentiator, particularly for clients with mixed vendor environments. However, what separates Dimension Data from the majority of global systems integrators in the contact center space is in the breadth of expertise it brings to an enterprise s entire operations. This includes: Customer Experience (CX) Solutions o Digital and Contact Centre solutions Collaboration solutions Partnerships Global platforms with local delivery Employee productivity services Global IT services Security, protection and risk Professional services Technology experience Co-location Managed data centers Technology expertise The company also displays a strong market driven approach with clients. The company is well versed in the implementation of premise-based systems across numerous partner products. However, it also has a long history of supplying cloud options for customers, as well as hybrid solutions. Indeed, it recognizes that the majority of clients have issues with Frost & Sullivan 5 We Accelerate Growth

6 moving to the cloud, and one of the core strengths it brings is the ability to move portions of the entire network and application solutions to the cloud, while leaving others onpremise. In addition, Dimension Data has put forth a significant investment in building out a managed services offering across its portfolio including contact center and UC. These solutions provide a high degree of process automation to reduce operational costs and complexity, improve quality of service, and ensure compliance with corporate policies. The services are also consistent across geographies so that they are delivered in a standard way, instead of being customized per region, further increasing consistency and lowering complexity. Criterion 2: Customer Purchase Experience Customers gravitate to Dimension Data because of its proven longevity and expertise in providing complete solutions, across the enterprise, but also enabling its customers to innovate using technology, taking into account their unique needs and constraints. At the spring global industry analyst event in May, Dimension Data showcased several customers that are representative of creating a lasting relationship that takes advantage of the breadth of what the company has to offer. For example, AirBus, a division of Airbus Group, a premier provider of aircraft worldwide, started a partnership with Dimension Data in 2000 and has evolved its entire operations from technical to collaboration between worldwide divisions, since then. At the outset Airbus had divisions that spanned private and public sector, with manufacturing spread out over multiple countries to produce a single aircraft, producing some unique challenges to address. The partnership started with an architectural design as to what should happen over the next decade, and then was delivered upon, with the creation of a worldwide IP infrastructure, including video services and collaboration, and which eventually grew to encompass both the private and public sector sides of Airbus. The results produced: 400K network ports 20K nomad users 21K incidents a year 133 IPT and UC users 180K Visio sessions per year 99.8% availability More importantly, Dimension Data enabled Airbus to lower costs, reduce risk, improve its service performance and competitiveness, and be an innovator in its industry. Frost & Sullivan 6 We Accelerate Growth

7 Companies also benefit from Dimension Data s depth of industry expertise, with employees certified in an array of partner solutions, particularly Cisco and Avaya in the contact center space. This is also backed by a highly developed understanding of what customers need to improve customer service. For instance, unusual for a systems integration and solutions provider, Dimension Data has produced an annual benchmarking survey for customer contact since The company, along with Merchants, a Dimension Data BPO customer contact company, has used the research to keep abreast of industry trends and challenges, and help it drive product strategy and develop innovative solutions and services for customers. The report contains some of the most comprehensive year-over-year research in the industry. The company has also developed similar assets directly impacting customer contact, as well as all areas of the business. Its Global Threat Intelligence Report 2015, which surveyed 18,000 clients on security issues, is a stellar example of this. Criterion 3: Service Experience As a trusted partner, Dimension Data creates strong SLAs with clients to hit specific goals. Whether that is reduced costs, reduced carbon footprint, or increased operational efficiency, customers have reported a strong return on investment through working with the company. Comments also have focused on the fast response time that Dimension Data has provided when things have gone awry, and that the trust level is very high that issues will be taken care of quickly and efficiently. Further enabling clients to match their needs to service delivery is the choice of deployment models that Dimension Data offers. Solutions are available on-premise, in the cloud, as a hybrid model or as SaaS model. Additionally, through partners, the company has rolled out the OneCloud program, which is essentially cloud-in-a-box which partners can take to market as their brand, but Dimension Data provides the hardware and software for. All of this is backed with strong service guarantees. Criterion 4: Brand Equity In its over thirty year tenure, Dimension Data has created a strong brand image, that not only captured the attention of NTT, which then acquired the company in 2010, but of numerous marquis partner prospects that have contributed to the product and services ecosystem Dimension Data customers enjoy. For instance, the company is Cisco s number one integration partner, with a relationship that extends over 24 years. In 2015, it garnered partner of the year in all three of Cisco s regions, and an additional 19 geographic and theatre awards at Cisco s partner conference. It is also a long term partner of Genesys, Microsoft and Avaya as well as EMC and VMware, and numerous others. The company is in a multi-year global alliance partnership with Microsoft with joint investment to accelerate growth for both companies. The Frost & Sullivan 7 We Accelerate Growth

8 company is also certified as a Microsoft Gold partner in 21 countries and holds more than 4000 Microsoft certifications. Dimension Data continues to add brand name partners as well. In May, 2015 Deloitte announced it had chosen Dimension Data as their platform to load SAP s applications. Criterion 5: Human Capital Dimension Data has strong focus on quality in service delivery to its customers, and as a systems integrator and partner delivers this service through people that are dedicated to specific accounts. As an example, 232 Dimension Data employees are dedicated to the Airbus account, ensuring processes flow smoothly. Dimension Data also has clearly built its brand on more than just technology, but also people and the greater good of the environment and society. It is a certified top employer in 25 countries globally, and in March, 2015, it was recognized as one of only five Global Top Employers in the world for outstanding employee offerings, based on an annual independent research project carried out by the Top Employers Institute. Its internal 2014 employee survey has employee satisfaction rising to a four out of five ranking as well. Criterion 6: Growth Potential With the skill set, people, processes, and solutions Dimension has to offer, the company possesses vast potential for growth, which has been fueled by key acquisitions over the past few years. For example, the acquisition of NextiraOne helped it grow in markets such as the Czech Republic, Poland, and other areas of Eastern Europe, and increased its presence in Europe by 79%. That move also gave it a strong entrée into growth with midmarket clients while broadening product offerings. Overall, the technology and expertise that Dimension provides has enabled it to consistently take market share from competitors in all segments of its business. The biggest deterrent to growth has been finding the right people to grow, in areas such as security and cloud. However, this is an issue that is shared equally across the globe with competitors, and Dimension Data s aptitude for attracting talent, and creating solutions that help automate a portion of the work required, will continue to help the company grow in all regions of the world, despite this challenge. Conclusion The technology, breadth of product offerings across all segments, and tenured systems integration expertise has garnered Dimension Data a global leadership position in the market. In addition, its commitment to sustainability and contributing to the betterment of society has contributed to the strong overall performance that has allowed Dimension Data to earn Frost & Sullivan s 2015 Customer Value Leadership (CVL) Award for Global Contact Center Solutions Integration. Frost & Sullivan 8 We Accelerate Growth

9 BEST PRACTICES RESEARCH Significance of Customer Value Leadership Ultimately, growth in any organization depends upon customers purchasing from your company, and then making the decision to return time and again. Delighting customers is therefore the cornerstone of any successful growth strategy. To achieve these dual goals (growth and customer delight), an organization must be best-in-class in three key areas: understanding demand, nurturing the brand, differentiating from the competition. This three-fold approach to delivering customer value is explored further below. Understanding Customer Value Leadership Customer Value Leadership is defined and measured by two macro-level categories: customer impact and business impact. These two sides work together to make customers feel valued, and confident in their products quality and long shelf life. This dual satisfaction translates into repeat purchases and a high lifetime customer value. Frost & Sullivan 9 We Accelerate Growth

10 Key Benchmarking Criteria For the Customer Value Leadership Award, we evaluated two key factors Customer Impact and Business Impact according to the criteria identified below. Customer Impact Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity Business Impact Criterion 1: Financial Performance Criterion 2: Customer Acquisition Criterion 3: Operational Efficiency Criterion 4: Growth Potential Criterion 5: Human Capital Best Practice Award Analysis for Salesforce Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by Customer Impact and Business Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions for each criteria are provided beneath the scorecard). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Frost & Sullivan 10 We Accelerate Growth

11 The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key players in as Company 2 and Company 3. DECISION SUPPORT SCORECARD FOR CUSTOMER VALUE LEADERSHIP AWARD (ILLUSTRATIVE) Measurement of 1 10 (1 = poor; 10 = excellent) Customer Value Leadership Customer Impact Business Impact Average Rating Dimension Data Competitor Competitor Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market Criterion 2: Customer Purchase Experience Requirement: Customers feel like they are buying the most optimal solution that addresses both their unique needs and their unique constraints Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company s product or service, and have a positive experience throughout the life of the product or service Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty Business Impact Criterion 1: Financial Performance Requirement: Strong overall financial performance in terms of revenues, revenue growth, operating margin and other key financial metrics Criterion 2: Customer Acquisition Requirement: Customer facing processes support the efficient and consistent acquisition of new customers, even as it enhances retention of current customers Criterion 3: Operational Efficiency Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high quality standard Frost & Sullivan 11 We Accelerate Growth

12 Criterion 4: Growth Potential Requirements: Customer focus strengthens brand, reinforces customer loyalty and enhances growth potential Criterion 5: Human Capital Requirement: Company culture is characterized by a strong commitment to quality and customers, which in turn enhances employee morale and retention Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts can then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels. DECISION SUPPORT MATRIX FOR CUSTOMER VALUE LEADERSHIP AWARD (ILLUSTRATIVE) High Competitor 2 Award Recipient Business Impact Competitor 3 Low Low Customer Impact High Frost & Sullivan 12 We Accelerate Growth

13 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at bestin-class levels. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS Competitive Benchmarking Availability of Capital Demographics Buying Behavior Growth Strategies Economic Trends Industry Expansion Industry Evolution New Vertical Markets GeoPolitical Stability Growth Implementation Technology Obsolescence Emerging Technologies CEO Sustainability Disruptive Technologies New Business Cultures Smart Cities Career Development New Applications Segmentation Industry Convergence Country Risk Branding and Positioning Crowd Sourcing Competitive Strategy Needs and Perceptions Capital Investments Emerging Competition Frost & Sullivan 13 We Accelerate Growth

14 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Our awards team follows a 10-step process (illustrated below) to evaluate award candidates and assess their fit with our best practice criteria. The reputation and integrity of our awards process are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify award recipient candidates from around the globe Conduct in-depth industry research Identify emerging sectors Scan multiple geographies Pipeline of candidates who potentially meet all bestpractice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline Interview thought leaders and industry practitioners Assess candidates fit with best-practice criteria Rank all candidates Matrix positioning all candidates performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates Confirm best-practice criteria Examine eligibility of all candidates Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles Brainstorm ranking options Invite multiple perspectives on candidates performance Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders Share findings Strengthen cases for candidate eligibility Prioritize candidates Refined list of prioritized award candidates 6 Conduct global industry review Build consensus on award candidates eligibility Hold global team meeting to review all candidates Pressure-test fit with criteria Confirm inclusion of all eligible candidates Final list of eligible award candidates, representing success stories worldwide 7 Perform quality check Develop official award consideration materials Perform final performance benchmarking activities Write nominations Perform quality review High-quality, accurate, and creative presentation of nominees successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice award recipient Review analysis with panel Build consensus Select winner Decision on which company performs best against all best-practice criteria Frost & Sullivan 14 We Accelerate Growth

15 STEP OBJECTIVE KEY ACTIVITIES OUTPUT 9 Communicate recognition Inform award recipient of award recognition Present award to the CEO Inspire the organization for continued success Celebrate the recipient s performance Announcement of award and plan for how recipient can use the award to enhance the brand 10 Take strategic action Once licensed. share award news with stakeholders and customers Coordinate media outreach Design a marketing plan Assess award s role in future strategic planning Widespread awareness of recipient s award status among investors, media personnel, and employees About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 15 We Accelerate Growth

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