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© 2004 EMC Corporation. All rights reserved. 111
Build the ‘Right Software’ to Delight Your Customer
Unmesh GundewarJanuary 19, 2005
© 2004 EMC Corporation. All rights reserved. 22
“The best way to predict
the futureis to
create it.”─ Peter Drucker
© 2004 EMC Corporation. All rights reserved. 33
Agenda
What Is Right Software?What We Asked, Heard, and Learned Customer Delight – Leading IndicatorsGoal Question Metric (GQM) Predicting Customer Delight
– Customer Delight Index (CDI)
Summary
© 2004 EMC Corporation. All rights reserved. 44
Operational Definitions
Building the Software Right– Building software that meets specifications,
but may not meet the need
versus
Building the Right Software– Building software that exceeds customers’ expectation
© 2004 EMC Corporation. All rights reserved. 55
Most Quality Initiatives Focus on Software Right!
Capability Maturity Model – CMMSix Sigma – DMAIC
– Define– Measure– Analyze– Improve– Control
Product Delivery Process Improvement InitiativesProduct Quality Initiatives
? Product Quality
?
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 66
Quality AwardsCriteria
Sources of Input for Right Software
IndustryResearch
CustomerSatisfaction
Survey
CMMAssessments
EMC Cross-Functional
GroupsProduct Quality?
?
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 77
Agenda
What Is Right Software?What We Asked, Heard, and LearnedCustomer Delight – Leading IndicatorsGoal Question Metric (GQM) Predicting Customer Delight
– Customer Delight Index (CDI)
Summary
© 2004 EMC Corporation. All rights reserved. 88
What We Asked
What are we doing to delight our customers?How are we currently measuring customer satisfaction?What are our top areas of concerns?
Quality AwardsCriteria
IndustryResearch
CustomerSatisfaction
Survey
CMMAssessments
EMC Cross-Functional
GroupsProduct Quality
?
?
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 99
What We Heard – Striving for Customer Delight
Customer and market knowledge – Listening & learning strategies
Customer relationships and satisfaction processes
– Acquiring new customers– Retaining existing customers– Developing new marketing opportunities – Managing complaints
Customer-focused results – Analyzing how well organization has been
• Satisfying customers • Delivering product and service quality
Customer Loyalty and Repeat Business
? Product Quality?
Quality Awards Criteria
?
Customer Delight Components
Malcolm Baldrige
National Quality Award:
3 out of 7 areas
pertain to customers
RESULT:
© 2004 EMC Corporation. All rights reserved. 1010
What We Heard – Engineering
Driving toward delighting customers by improving products and services– New functionality– Ease of doing business– Ease of use– Reliability– Serviceability
Right Features, Product, and Service Quality
Our first and foremost goal should be to delight
our customers
─ EVP, Software Development
? Product Quality? EMC Cross-
Functional Groups
?
Customer Delight ComponentsRESULT:
© 2004 EMC Corporation. All rights reserved. 1111
What We Heard – Global Services
Driving toward delighting customers by improving
– Product quality– Faster service – Loyalty
Reducing time to resolve problemsImproving ease of use, functionality, and supportFocusing on customer relationship and retention
Effectiveness, Customer Loyalty, and Repeat Business
? Product Quality? EMC Cross-
Functional Groups
?
Customer Delight ComponentsRESULT:
© 2004 EMC Corporation. All rights reserved. 1212
What We Heard – Customer Service
Driving toward delighting customers by improving Quality of Service– Investing resources where most needed– Involving customer service up front in the EMC corporate product lifecycle– Conducting focus groups– Improving test coverage across all products
Responsiveness, Product, and Quality
When the customer does not have to call EMC,
that’s delight!
– Director of Customer Service
? Product Quality? EMC Cross-
Functional Groups
?
Customer Delight ComponentsRESULT:
© 2004 EMC Corporation. All rights reserved. 1313
What We Heard – Corporate Quality
Driving toward delighting customers by – Improving
• Customer relationship• Perceived value • Customer satisfaction• Robustness of EMC solutions
– Increasing profitability of • EMC• Customer
Perceived Value, Loyalty, and Repeat Business
? Product Quality? EMC Cross-
Functional Groups
?
Customer Delight ComponentsRESULT:
© 2004 EMC Corporation. All rights reserved. 1414
Agenda
What Is Right Software?What We Asked, Heard, and LearnedCustomer Delight – Leading IndicatorsGoal Question Metric (GQM) Predicting Customer Delight
– Customer Delight Index (CDI)
Summary
© 2004 EMC Corporation. All rights reserved. 1515
Customer Delight Components
ResponsivenessEffectiveness
AvoidingDefects
Right featuresLoyalty & repeat businessPerceived value
Customer Relationship
Product Quality
Service Quality
?
?
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 1616
Agenda
What Is Right Software?What We Asked, Heard, and Learned Customer Delight – Leading IndicatorsGoal Question Metric (GQM)Predicting Customer Delight
– Customer Delight Index (CDI)
Summary
© 2004 EMC Corporation. All rights reserved. 1717
CustomerRelationship
Right Features
Loyalty & RepeatBusiness
Perceived Value
ServiceQuality
Responsiveness
Effectiveness
ProductQuality
Avoiding Defects
Customer Delight – Leading Indicators
© 2004 EMC Corporation. All rights reserved. 1818
GQM (Goal Question Metric)
Goal(s)
Questions
Indicators
Measures
GoalsBusiness => Sub goals => Measurement
Mission Vision
SLOC Staff Hours Trouble Reports Milestone Dates
Definition ChecklistDefinition Checklist
InfrastructureAssessmentInfrastructureAssessment
QuestionsWhat do I want to know or learn?
How do I know if I have met my goal?(Success Criteria)
Indicators
Indicator TemplateObjectiveQuestion
InputsAlgorithmAssumptions
© 2004 EMC Corporation. All rights reserved. 1919
Customer Relationship Goals
Right featuresLoyalty & repeat businessPerceived value
Customer Relationship Product
Quality
Service Quality
Customer Relationship
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 2020
Customer Requests - Prod Requirements
60 7090
5040 50
90
40
020406080
100
Prod A Prod B Prod C Prod D
Products
# of
R
eque
sts/
Req
uire
men
ts
Cust Requests Requirements
What percentage of the customer requests actually turn into product requirements?
Goal: Improve Right Features
Customer Servicability Requirments
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
Prod A Prod B Prod C Prod D%
of R
equi
rem
ntsWhat percentage of customer
serviceability requirementsactually turn into product features?
What percentage of the high-priority requirements are implemented?
Customer High Priority Requirements
0
50
100
Prod A Prod B Prod C Prod D
Products
% o
f Hig
h Pr
iorit
y R
eque
sts
Cust High Priority Requests Cust Reqts Implemented
'Right' Features - Known, Unarticulated, Unknown,
0%20%40%60%80%
100%
Prod A Prod B Prod C Prod D% o
f Req
uire
men
ts
Known Needs Unknown Needs Unarticulated Needs
What percentage of the requirements fall into the categories of known needs, unarticulated needs, & unknown needs? –
© 2004 EMC Corporation. All rights reserved. 2121
Service Retention Rate
0
20
40
60
80
Prod A Prod B Prod C Prod D Prod E
Cont
ract
s
Current Contracts Renewed Contracts
What percentage of service contracts are being renewed?
− By business units− By products
Goal: Increase Loyalty and Repeat Business
Products Repurchased
0%20%40%60%80%
100%
Prod A Prod B Prod C Prod D%
of C
ust -
R
epur
chas
e EM
C
Prod
ucts
% of cust Q2 03 Purchase % of cust Q4 03 Purchase
How many customers are purchasing additional EMC products?
How many customers are truly loyal to EMC?
─ By business units─ By products
Truly Loyal Customers by Product
0.00%
20.00%
40.00%
60.00%
80.00%
Q2 03 Q4 03% o
f Sur
veye
d C
usto
mer
s
Prod A B Prod A B
© 2004 EMC Corporation. All rights reserved. 2222
Goal: Perceived Value
How long did it take to realize ROI?How effective was EMC at meeting customers’ expectations?
© 2004 EMC Corporation. All rights reserved. 2323
Service Quality Goals
Customer Relationship
Customer Relationship
Product Quality
Service Quality
ResponsivenessEffectiveness
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 2424
Goal: Improve Responsiveness
How quickly does EMC customer service respond to customers?How long (weeks /months) does a new service representative require to come up to speed?
– On average and by product
Response Time
05
101520
Prod A Prod B Prod C Prod D
Ave
rage
Tim
e
Avg. Response Time (Minutes) Avg. Resolution Time (Days)Avg. Learning Time (Days)
© 2004 EMC Corporation. All rights reserved. 2525
Goal: Improve EffectivenessResolution Time
05
101520
Prod A Prod B Prod C Prod D
Ave
rage
Tim
e
Avg. Response Time (Minutes) Avg. Resolution Time (Days)
Avg. Learning Time (Days)
How long does it take to resolve customers’ questions and issues?
© 2004 EMC Corporation. All rights reserved. 2626
Product Quality Goals
Customer Relationship
Customer Relationship
Product Quality
Service Quality
Avoiding Defects
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 2727
Goal: Improve Installability
What percentage of the installability requirements are identified vs. implemented?
Customer Reported Installability Requirements
020406080
Identified Planned Implemented
# of
Req
uire
men
ts
Prod A B C Prod A B C Prod A B C
What percentage of the customer reported installability Issues are being addressed?
Customer Reported Installability Issues
020406080
% o
f Cus
tR
equi
rem
ents
Prod A B C Prod A B C Prod A B CRaised byCustomer
Planned Implemented
© 2004 EMC Corporation. All rights reserved. 2828
Ease of Use Requirements
0204060
Prod A Prod B Prod C Prod D% o
f Req
uire
men
ts
Planned Actuals
What percentage of the planned ease of use requirements are actually implemented?– By product– By business units
Goal: Improve Ease of Use
© 2004 EMC Corporation. All rights reserved. 2929
Goal: Improve Interoperability
What percentage of the Interoperability requirements are planned and implemented?
– By product– By business units
Interoperability Requirements
0
2040
60
Prod A Prod B Prod C Prod D% o
f Req
uire
men
ts
Planned Actuals
© 2004 EMC Corporation. All rights reserved. 3030
Agenda
What Is Right Software?What We Asked, Heard, and Learned Customer Delight – Leading IndicatorsGoal Question Metric (GQM) Predicting Customer Delight
– Customer Delight Index (CDI)
Summary
© 2004 EMC Corporation. All rights reserved. 3131
CustomerRelationship
‘Right’ Features– Known Needs– Unarticulated
Needs– Unknown Needs
Loyalty & RepeatBusiness– Contract Renewals– Truly Loyal
Perceived Value– Cost– Benefits
ServiceQuality
Responsiveness– Time to Respond– Customer Friendly
Effectiveness– Resolution– Training Ramp-up
Time
ProductQuality
Defects– Bugs– Ease of Use– Interoperability– Installability– Reliability
All areas are potential Six Sigma opportunities
Customer Delight – Leading Indicators
© 2004 EMC Corporation. All rights reserved. 3232
Customer Delight Index (CDI)
CustomerDelight(100%)Time to Respond (50%)
Customer Friendly (50%)
Resolution (50%)Training Ramp-upTime (50%)
Bugs (20%)Ease of Use (20%)Interoperability (20%)Installability (20%)Reliability (20%)
Customer Renewals (50%)Truly Loyal (50%)
Known Needs (25%)Unarticulated Needs (35%)Unknown Needs (40%)
Cost (50%)Benefit (50%)
CustomerRelationship
(40%)
ServiceQuality(35%)
ProductQuality(25%)
Loyalty & RepeatBusiness
(40%)
Right Feature(40%)
Perceived Value(20%)
Defects(100%)
Responsiveness(50%)
Effectiveness(50%)
© 2004 EMC Corporation. All rights reserved. 3333
Defects (100%)
7.20
Bug (20%) 6
Ease of Use (20%) 8
Interoperability (20%) 8
Installability (20%) 8
Reliability (20%) 6
Responsiveness (50%)
3.25
Time to Respond 8
Customer Friendly 5(50%)
Effectiveness (50%)
Resolution (50%) 7
Training Ramp-up 6Time (50%)
3.25
=
=
Customer Delight100% = 10
6.80
+
+
Product Quality25%1.80
+
+
Service Quality35%2.28
Customer Relationship40%
2.72
Customer Relationship =(2.9 + 2.6 + 1.3) x 40% = 2.72
Goal-Driven (Indicator) Measurement Process
Perceived Value Percentage = [(5 X 50%) + (8 X 50%)] X 20% = 1.3
Right Feature (40%)
Known Needs (25%) 8
Unarticulated Needs (35%) 7
Unknown Needs (40%) 7
Loyalty & Repeat Business(40%)
Customer Renewals (50%) 5
Truly Loyal (50%) 8
Perceived Value (20%)
Cost (50%) 5
Benefits (50%) 8
1.30
2.90
2.60
© 2004 EMC Corporation. All rights reserved. 3434
Summary
You can predict how your software will delight customers by measuring leading indicators
before your product is released!
Customer Relationship
Product Quality
Service Quality
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 3535
Build the Right Software
ResponsivenessEffectiveness
AvoidingDefects
Right featuresLoyalty & repeat businessPerceived value
Customer Relationship
Product Quality
Service Quality
Customer Delight Components
© 2004 EMC Corporation. All rights reserved. 3636
© 2004 EMC Corporation. All rights reserved. 373737
Addendums
© 2004 EMC Corporation. All rights reserved. 3838
Sources of Input for Right SoftwareQuality Awards Criteria
– Malcolm Baldrige National Quality Award
– Massachusetts Quality Award
EMC Cross-Functional Groups– Engineering, Global Services,
Customer Services, Corporate Quality
CMM Self-Assessments Customer Satisfaction SurveyOther EMC ReportsIndustry Research
– AT&T Value Model– AgileTek– Quality Progress Periodical (February
2003)– The Loyalty Effect – Frederick F.
Reichheld
Goal-Driven (Indicator) Measurement Process
– Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven Measurement Techniques, by Wolfhart Goethert and Matt Fisher, October 2003
Massachusetts Quality Award– (Covers 7 areas, 1 which pertains to
Customers)• Customer Focus and Satisfaction
– Know customer’s current and future needs
– Evaluate processes for analyzing customer needs
– Measure 'ease of doing business'
– Timely follow-up after recent sales and transactions
– Compare customer satisfaction results with competitors’
– Analyze trends from customer satisfaction data
Right Features, Product Quality
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