Developments in Global ProductsSally Davis, President, Products and ServicesBT Global ServicesSeptember, 2003

Agenda

• Who we are and what we do• Global Products

– ICT services strategy– Extending our global reach– MPLS development

• Customer Service– Strategy – Track Record

The company - one BT

BT

BT Retail BT Wholesale BT Openworld BT GlobalServices

BT Global Services Financial position at Q1Continues to strengthen• Strong quarter’s results:

- turnover grew by 5% year on year • Improvement in underlying profitability and

cash flow: - operating free cash flow turned positive pre-leaver

costs• Our flagship MPLS product saw a quarter on

quarter increase in revenue of 170% Customer Satisfaction improvement:

- Dissatisfaction down from 14% a year ago to 9% today

Our International Strategy

Build on existing corporate relationships

Providing European and International reach

Offer complete portfolio of ICT products, solutions and services

European focus, global reach: Meeting the needs of our customers seamlessly regardless of geography

Driving for cost and capital efficiency

Strengthening global reach

Enhancing Product Portfolio

Standardise global operating environment

Continuous improvement in service levels

The challenge our business customers face….

Our Response – Not Just Network

Nerv

ou

sS

yste

m

Business Application

Services

Business IP Services

Business Transformation Services

Incr

easi

ng V

alue

Bra

ins &

Inte

llig

en

ce

Global Services Addresses ICT Complexity

Abili

ty t

o D

iffere

nti

ate

Private Circuits and PSTN

Internet/Frame/ATM

IP Voice / LAN

IPVPN / IPSec

eCRM / eBusiness

IT Services – desktop and datacentre

Business Process Management

ICT Outsource

ACCESS PRODUCTS

DATA & VOICE CONNECTIVITY

MANAGED CONNECTIVITY

APPLICATIONS

SOLUTIONS

Business Functions

Business IT

NETWORK ACCESS

NETWORK PRODUCTS

NETWORK SERVICES&

VALUE ADDED SERVICES

IT SERVICES &APPLICATIONS

INTEGRATEDBUSINESS SOLUTIONS

Business Functions

Business IT

Security, MobilityOCC

Cu

stom

er Bu

ys

Increasing Complexity

ICT Building Blocks

INTEGRATED ICT SOLUTIONS

VOICE FRAME/ATM MPLS BANDWIDTH INTERNET

MANAGED WAN MANAGED LAN MANAGED IPT MANAGED SECURITY

MANAGED MOBILITY

BUSINESS SERVICES

VALUE ADDED SERVICES

NETWORK SERVICES

NETWORKPRODUCTS

NETWORK &ACCESS

INTEGRATED SOLUTIONS

IT SERVICES &APPLICATIONS

WIRELESS OPTICAL xDSL ETHERNETLEASED LINE

HOSTING & STORAGE

OUTSOURCED CALL CENTRE MESSAGING HOSTED

MMVoIPMULTI-MEDIACALL CENTRE

E-COMMERCE PORTALS/ INTRANET

CRM APPLICATIONS

MANAGED DESKTOP

WEB SERVICES

NETWORK.OUTSOURCING

BUSINESSPROCESS

OUTSOURCING

ENTERPRISESECURITY

SYSTEMS INTEGRATION

BUSINESS &TECHNOLOGY CONSULTING

MPLS Investment is at the Core of GS

Data CentreData Centre

HQ or Branch

Application Performance Management

Secure VPN client

Secure Authentication

GS DATACENTRECUSTOMER DATACENTRE

GLOBALMPLS

MPLS Excellence

Capabilities•Lots of customers!•Extensive global reach•Development of 6 classes of service•Key component in applications and mobility delivery

•Comprehensive SLAs and customer service

End to End MPLS Best in World

•We believe BT has the BEST combination of technologies for extensive reach:

– 130 countries available via combination of GPOP, FR, VSat, IPLC

– available in 70 countries via GPOP, FR and APOP and VSat

– no dependency on X.25– direct GPOP coverage increase to 35 countries by

close of 03/04 through expansion in Americas, Asia-Pac and Europe

BT’s European MPLS network

• Ubiquitous UK network

• MPLS nodes in 16 European countries today

• MPLS expansion to an additional 5 Central /Eastern countries 03/04:– Poland, Czech Republic,

Slovakia, Russia, Estonia

• Frame Relay nodes in 41 European countries today

• No. 1 in Europe for VPN services

BT MPLS platform in Europe

International Expansion - N. America

•Expansion in US, Canada, Mexico from 8 to 23 MPLS nodes

20032003Washington DC, Detroit, Miami, Seattle,Denver, Toronto, Mexico City20042004Minneapolis, Cleveland, Charlotte, St. Louis20052005Tampa, Cincinnati, Phoenix

International Expansion- Asia-Pac

Tokyo

Osaka

Seoul

Hong KongBangkok

Kuala Lumpur Singapore

Jakarta

Taipei

ManilaMumbai

Bangalore

Perth

Adelaide

Melbourne

Brisbane

Sydney

WellingtonChristchurch

Auckland

Shanghai

Delhi Guangzhou

Beijing

Hanoi

MPLS network expansion to reach to 14 countries in the region

Phase 1 (Now Ready for Service)Australia (Sydney), Hong Kong, Japan (Tokyo), Singapore

Phase 2a (Targeted RFS Dec. 2003)India (Bangalore, Mumbai, and New Delhi)

Phase 2b (Targeted RFS Q3/4 2003/04)China (Shanghai and Gunazhou) , South Korea, Taiwan and Malaysia

Phase 3 (via NNI)Thailand, Philippines, New Zealand, Indonesia, Vietnam

6 Classes of Service on MPLS

Equant

AT&T

Infonet

BT

C&W

MCI

Attributes

5 Classes of Service

4 classes of service; soon to offer 5

4 classes of service

6 classes in 2004 3 classes of service today3 classes of service

3 Classes of service

Using MPLS to Deliver Application Performance

Data Centre

Data Centre

HQ or Branch

Application Performance Management

Secure VPN client

Secure Authentication

GS DATACENTRECUSTOMER DATACENTRE

GLOBALMPLS

GS DATACENTRE

Application Performance Managementon MPLS• Expanding MPLS classes of service from 3 to 6• Testing many applications’ network requirements

– Generic Applications – SAP, Oracle etc – requirements on networks

– Customer specific application performance specifications

• Developing CPE-to-CPE (router not desktop) SLAs as first step

• Integration with UK datacentres and Web Services Management Layer to create management flexibility

• Create a flexible, applications-enabled infrastructure• Drive towards industrial strength DEN-based desktop

to desktop to datacentre performance management

Adding Mobility to MPLS

Data Centre

Data Centre

HQ or Branch

Application Performance Management

Secure VPN clientDial, DSL, Wi-FI, GPRS/G3

Secure AuthenticationPassword, Token, IPSec

GS DATACENTRECUSTOMER DATACENTRE

GLOBALMPLS

GS DATACENTRE

Mobile Enabled MPLS

At the Hotel(Analogue, ISDNxDSL, Wi-

Fi)

1 Username1 Client Interface

1 Service

At home before you travel(Analogue, ISDN, xDSL)

Any Time,Any Place !

On the road(GSM / GPRS)

Paused travel@ Coffee Shop/Airport/Conference

Wi-Fi,GPRS.G3

Easy Access Service Information via VBCComprehensive suite of e-servicing applications

Order & Fault Management - Placement , Tracking & Configuration Changes - Personalised fault alerts via e-mail or web message

Product Reporting - Network Health & Service Management

Inventory View & Query

Shared Web Folders

Planned Maintenance Notices

Future focus:• End to End customer network alarm application• Real time MPLS network performance reporting with on-line changes option• Customer specific application level reporting across MPLS network• Personalised order status alerts & improved collaboration tools

http://www.bt.com/vbc

Connecting your world• Network connectivity where you need it

across five continents with matching service surround

• Global managed services with SLAs to match

• World-class MPLS capability: 6 CoS• Applications-aware approach to portfolio

development• Mobility capable• Continuous commitment from BT to invest

in our product and services portfolio– Over £50Million p.a. invested in global VPN

Services

Questions

Customer Service

Sally Davis, President, Products and ServicesBT Global ServicesSeptember , 2003

What do our customers want from us?•Ownership & Accountability

– Single Point of Contact for their services with BT– Improvement programmes over time to meet

customer requirements– Accessibility

•Consistency– Irrespective of geography– SLA– Processes

•Flexibility & Responsiveness– to engage in the way they want– service levels according to needs and budgets

•Reliability– Deliver to agreed expectations

•Cost effective and competitive – more for less

Service focused on the customer

“As a service business, BT has to sell its customer experience. We will make it simpler for people to communicate with BT and deliver effective e-Centric solutions”

From “acceptable” to “exceptional”

“Customer satisfaction is a number one priority”

Ben Verwaayen

“BT is a service company - our whole strategy must be driven by customers”

Customer Experience Vision “A world where all our customers feel

empowered and are treated as individuals”

TrustedTrusted

FlexibleFlexible

StraightforwardStraightforward

Inc r

easi

ng

ly

Per

s on

al i

sed

User Confidence. This means secure and

reliable data

Service will be the Key differentiator which

means we need to get a standard operating

environment to manage service effectively

Each customer needs to be treated as an individual at the

service layer and is not interested in the technology.

Simple web portals that would allow everything from Billing to service activation at the click of a button

giving the customer control

Provide Mass customisation. We will need to manage service at the edge of the network “end to end”and this

will require an IAD supported by generic systems and OSS capability

Complex services will require Cross Domain ICT

management to effectively manage capacity and

utilisation of the network Infrastructure in real time.

• You give me access to new services quickly to meet my changing needs with partnerships I trust.•My services are available anytime anyplace. •I get the experience I pay for wherever and whenever I ask for it.

• Make my services easy to use wherever I use them

• Give me friendly personal assistance whenever I need it.

Simple “Hassle Free” Self-service is available to me

• My personal information is always safe and secure and there when I need it.

• I have confidence in you as a partner to look after my personal and business needs

• Provide me with reliable Services which meet my end-users needs.

TrustedTrusted

FlexibleFlexible

StraightforwardStraightforward

Inc r

easi

ng

ly

Per

s on

al i

sed

End User Experience - My Service

•Empower me to live and work as I choose.•Recognise who or what is important to me.• My associates and I are able to contact one another in the way that we choose

Our Priorities and Objectives

Driving Customer Satisfaction- will drive specific improvements across the business

• SOE - will simplify the way we operate -

processes and systems

• Transformation programme - will address specific service issues

FROMACCEPTABLE

TO

EXCEPTIONAL

BT Global Services Customer Satisfaction Measurement Programme• Independently conducted surveys to measure customers’

satisfaction with their BT experience– Includes Europe, US and Asia Pacific– ~300 interviews /month outside UK

• Four main types of survey– Overall telephone survey - measures customers’ perception of

relationship with BT. Respondents are decision makers/ influencers . (Agency- HI Europe)

– F 2 F Strategic level interviews with most Executive level respondent in largest companies where telephone not appropriate (Agency HI Europe)

– Event Driven Satisfaction Surveys-. Measure specific recent events e.g. orders, repair.Operational level respondents (Agency IFF)

– Customer Partnership Council• Acting on Results

– Individual customer concerns addressed and action plans developed– Major action plans implemented from Root Cause analysis on overall

results - – Senior Management closely monitors actions plans through a monthly

forum.

Driving down dissatisfaction

Improvement Plans

Time

Dis

sati

sfact

ion

ORDER AND PROVISION LEADTIME REDUCTION

REPAIR REDUCTION OF REPAIR TIME

KCIIMPLEMENTATION IN PROVISION AND REPAIR

COMPLAINTS LENGTH OF TIME TO RESOLVE

PRODUCTSELLING PRODUCTS WE CAN SUPPORT

1) FORMAT IN TERMS OF EASE OF UNDERSTANDING 2) ACCURACY OF BILLS

SALES AND SERVICESENHANCE SERVICE MANAGEMENT ROLE

BILLING

KEY DRIVERS OF DISSATISFACTION

KEY PROGRAMMES 03/04

GS Programmes 2002/3 - reduced dissatisfaction over target of 25%Complaint Handling & BillingMarketing & CommunicationOperational Metrics (KPI)Service Delivery & RepairKeeping Customers Informed

GS Programmes 2003/4 – targeted to reduce neutral customers by 10%

08/01 08/03

Demonstration of Improvements• “The main improvement in absolute score is in customer service which has improved

by 30 points, account management by 9 points and the product by 7 points.” …..“The extent to which BT keeps its customers informed of progress on specific requests for action, has increased SIGNIFICANTLY by 33 %.” HI Europe 2002

• BT’s performance has improved greatly since the last report with five attributes improving significantly. Overall Satisfaction was excellent.” BT has significantly improved since the last report……Bt achieved five “excellent” scores compared with three in the previous survey….with 31% of their performance exceeding the benchmark by more than 10% Telemark, June 2003 

• “BT showed themselves to be a company that meets customer wishes and demands and was able to adapt their products accordingly” Customer feedback from satisfaction survey

  • “We have built up very good contacts, they understand how we work, so they can

deliver a solution the way we need it. Customer feedback from satisfaction survey

• “BT Global Services delivered a strong performance in Q4. This provided the first evidence of the pipeline of recent contract wins being converted into revenue........ We see Global Products and Solutions as higher growth drivers for Global Services, and the principal growth drivers for the whole BT Group.” - JP Morgan

SOE – a step change to world class• Standardised operational processes & systems

• Culture change & a consistent customer experience

• Instilling customer centricity into our DNA

• Reducing complexity• Driving out cost and

inefficiency• Driving in simplicity an ‘end

to end’ CS capability• Single system with common

inventory• Common KPI• E-E processes

A CENTRE OF EXCELLENCE - SINGLE OPERATION & ACCOUNTABILITY A CENTRE OF EXCELLENCE - SINGLE OPERATION & ACCOUNTABILITY

Local Operational Centres:Service Delivery

Access lineInstallation co-ordinationLocal configurationCustomer KCI / handover

Service AssuranceBusiness HoursTicket Management

Supplier ManagementFlexible in-country location

Global Centres of Excellence:Global or Regional SPOC365 x 24 x 7ICT capability & expertiseDisaster recoveryService Delivery & AssurancePerformance & SLA managementCommercial ServicesTechnical Expertise – 2nd & 3rd lineCo-located with Network CentresProduct launch & sunset

RCE Supporting ICT capability

Simple & Complete Customer Experience

Customer

Single Number & Portal Interface

MessagingE - service

Call MeWeb ChatMobile Fixed E-mail Fax

Real-time Contact

SMS

A&HManaged Hosting

Managed Apps

A&HManaged Hosting

Managed Apps

ManagedDesktopSubscription,

Complex

ManagedDesktopSubscription,

Complex

CRMContact Centres,

Self Service

CRMContact Centres,

Self Service

MobilityVoice, Data,W-LAN, PDAs

MobilityVoice, Data,W-LAN, PDAs

OutsourceOutsourceManagedIPT

ManagedIPT

RCE – pro-active environment

Networks

Incre

asin

g A

uto

matio

n

E-Service integral to our customer interface

PVC Regrade

Fully Personalised Portal

Ticket Create

Order Status

Service EnquiryProduct Performance Reports

Shared Web Folders

Other Apps Links

Service Notices

Ticket Status

Changing Culture

• Service Manager• Project Management• Instilling Customer into our DNA

What This Means...

We are on a journeyReducing customer dissatisfaction and increasing customer satisfaction remains a top priorityWe are focussed on meeting our customer needs:

Reduced lead timesProviding timely pro-active and accurate informationFault resolution addressed at first contactImproved and accurate billing Raising e-service capability

We are providing our people with the tools to make a step change

Improved working practicesIncreased empowermentCapability to improve their customer’s experience

Questions

Global Products and Services...Products

•Continuous investment•MPLS at the core

•Extended reach•6 classes of service•Applications and mobility capable

Customer Service•Focus on customer satisfaction•Capability for full ICT services•Transforming our operations through SOE•Instilling customer service into our DNA