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BEST PRACTICES RESEARCH
© Frost & Sullivan 2 “We Accelerate Growth”
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 .................................................................................. 10
Best Practice Award Analysis for Dimension Data ........................................................ 10
Decision Support Scorecard ................................................................................. 10
Customer Impact ............................................................................................... 11
Business Impact ................................................................................................. 11
Decision Support Matrix ...................................................................................... 12
The Intersection between 360-Degree Research and Best Practices Awards ..................... 13
Research Methodology ........................................................................................ 13
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 14
About Frost & Sullivan .............................................................................................. 15
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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, high-
quality 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.
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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 2020.
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.
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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
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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 on-
premise.
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.
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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 1997. 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
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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 mid-
market 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.
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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.
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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.
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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 9.0 9.0 9.0
Competitor 2 7.0 9.0 8
Competitor 3 8.0 6.0 7
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
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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
Low
Low High
Business Impact
Customer Impact
Award Recipient
Competitor 2
Competitor 3
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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 best-
in-class levels.
360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS
Technology
Obsolescence
Disruptive
Technologies
New
Applications
CEO
Demographics
Needs
and
PerceptionsSegmentation
Buying
Behavior
Branding
and
Positioning
Competitive
Benchmarking
Emerging
Competition
Competitive
Strategy
Capital
Investments
Availability
of
Capital
Country
Risk
Economic
Trends
Crowd
Sourcing
Growth
Strategies
Career
Development
Growth
Implementation
Industry
Evolution
New Vertical
Markets
Industry
Expansion
Industry
Convergence
Emerging
Technologies
Smart Cities
Sustainability
New Business
Cultures
GeoPolitical
Stability
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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 best-practice 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
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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
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http://www.frost.com.