Avaya Contact Center Next Generation is About … Experience Management

1. Avaya Contact Center Next Generation is About … Experience Management Customer Launch Presentation July, 2010

2. The Contact Center Market

3. Avaya Leadership in Contact Center Combined 44% • #1 World Wide Contact Center Market Share • Industry Leading Contact Center customers • Avaya Labs Innovation • Award Winning Portfolio • Gartner Magic Quadrant Leader in Contact Center Nortel 7% Others 22% Aspect 5% Avaya 37% Cisco 14% Genesys 15% Sources: Gartner Magic Quadrant, Gartner Worldwide Contact Center Revenue Market Share (ACD Agents) Source: Gartner Group, Calendar 2009 NOTE: Nortel market share data may include LG-Nortel 3

4. The Top Customer Service LeadersChoose Avaya The 2010 BusinessWeek ‘Customer Service Champions’ that chose Avaya* * partial list shown http://bwnt.businessweek.com/interactive_reports/customer_service_2009/index.asp

5. Market Dynamics are Changing!The Avaya Vision 5 5

6. Enabling Effective & Contextual Collaboration Delivering Communications Enabled Business Systems Powered by Sessions:Open & Standardized Avaya Vision 6

7. Management of end to end experiences for customers, employees, partners, suppliers Orchestrating assisted or automated multimedia contextual collaboration sessions Differentiation based on complete and relevant context in every session Avaya Contact Center VisionExperience Management Immerse theAgent in the Experience Bring FullContext to Every Session Orchestrate the Experience Manage,Learn, Apply Next Generation Contact Center End to End Experience Management Connect & Openthe Enterprise ApplicationIntegration 7

8. Fact 1: Demographics are Changing NEW users have different expectations than traditional segment • Social networking and viral information sharing beyond the contact center • Instantaneous (proactive) care and instant gratification • High touch personalized experience through new channels • Empowerment (self service) North America: 78m Baby Boomers 55m Generation X 80m Generation Y “This economic recovery -- unlike those in last few decades -- will be shaped by the values of tech-loving Gen Y, and to a lesser degree, affluent members of Gen X” Sources: PricewaterhouseCoopers LLP and Retail Forward, Owned by Kantar Retail Baby Boomers: born from 1946 to early 1960s; Gen X: born from 1960s to 1970s; Gen Y: born from 1980s to 1990s 8

9. NEW interaction channels are emerging and expanding beyond contact center • Expectation of end users • To reach business how and when they want to (including multimedia) • Consistent experience across channels • Customer care organization challenges • Increasing customer satisfaction of lower cost channels • Staffing and managing new channels appropriately Fact 2: Interactions are Changing Percent of Respondents • Voice is 2x cost other channels, but other channels have lower customer satisfaction • >50% of self service interactions still require a high cost agent Source: Webtorials Editorial/Analyst Division , McKinsey 9

10. NEW level of CSAT expectation requires real time insight and action • Customer care organization challenges • Knowing customers choice of how to be served and managing the experience • Understand the “whys” causing poor customer satisfaction and dynamically adapt in real time • Futureproof operations & infrastructure for flexibility to easily evolve with customer expectations Fact 3: Customer Satisfaction Risks are Increasing 92% of consumers form an opinion about a company’s image through their interaction with the Contact Center 80% of companies believe they deliver a good/superior customer experience. Only 20% of consumers agree 73% of Millennials [Gen X & Y] will leave after one bad experience, and 85 percent will tell others about their poor experiences Source: Benchmark Research, Webtorials Editorial/Analyst Division, Convergsys Baby Boomers: born from 1946 to early 1960s; Gen X: born from 1960s to 1970s; Gen Y: born from 1980s to 1990s 10

11. The Next Generation is about … Experience Management Immerse theAgent in the Experience Bring FullContext to Every Session Orchestrate the Experience Manage,Learn, Apply • Improved Customer Satisfaction • Improved Agility • Improved FirstSession Resolution • Higher Revenue Connect & Openthe Enterprise • Lower TCO ApplicationIntegration • Increased Flexibility 11

12. Experience Management Opportunity Gap Between Capability & Goals • What is your current capability to access real-time customer-specific data to know how a customer wants to be served and by which agent? How important is this? 64% of respondents rate the importance of real-time customer-specific data as High or Very High Source: Webtorials Editorial/Analyst Division 12

13. Evolution to CONTEXT based Enterprise Wide Experience Management Standalone Voice based Call Centers Distributed Multichannel Contact Centers CONTEXT based Experience Management Value of any interaction is defined by its context 13

14. Leveraging information about a user and their environment to improve the quality of a an interaction Location, presence, social attributes, communication mode and historical data used to anticipate needs Real time situation awareness applied Experience ManagementContext Drives a Differentiated Experience Instant Presence CONTEXT Multi Media Behavior Next Gen Customer Care: persistent and seamless real time transfer of customer context and data to the best suited mode (voice, email, chat, SMS) Multi Mode 14

15. Traditional Skills-Based Matching Sales Today = $ 100 On call Customer Customer Customer Customer Customer Sales Today = $ 50 On call Priority = 2 Wait = 25 sec 6 mo rev=$50 Priority = 1 Wait = 5 sec 6 mo rev=$450 Priority = 1 Wait = 25 sec 6 mo rev=$0 Priority = 1 Wait = 32 sec 6 mo rev=$70 Priority = 1 Wait = 40 sec 6 mo rev=$20 Sales Today = $ 0 On Call Sales Today = $ 550 Available Traditional Mapping Most idle agent-> to highest priority customer with longest wait time

16. Contextual Skills-Based Matching Example Sales Today = $ 100 On call Customer Customer Customer Customer Customer Sales Today = $ 50 On call Priority = 2 Wait = 25 sec 6 mo rev=$50 Priority = 1 Wait = 5 sec 6 mo rev=$450 Priority = 1 Wait = 25 sec 6 mo rev=$0 Priority = 1 Wait = 32 sec 6 mo rev=$70 Priority = 1 Wait = 40 sec 6 mo rev=$100 Sales Today = $ 0 On Call 10/12 abcd 11/15 xytx 12/10 tyzj 10/12 abcd 11/15 xytx 12/10 tyzj Sales Today = $ 550 Available Contextual Mapping Best agent today -> to highest priority, highest revenue customer Customer history and today’s transaction (context) transfers when expert is called in to help Expert Assist

17. Strategy & Innovation

18. The Avaya Aura™ Contact Center SuiteDelivering Experience Management May 2011 May 2010 Avaya Aura™ Performance Center Avaya Aura™ WFO Avaya Aura™ Agent Desktop July 2010 Avaya Aura™ Contact Center Avaya Aura™ Call Center Elite Avaya Aura™ Experience Portal May 2011 Avaya Agile Communication Environment (ACE) 18

19. Portfolio Evolution Avaya Aura™ Performance Center, Avaya Aura™ WFO Avaya Aura™ Contact Center Large Enterprise MidsizeEnterprise CC 7.1 Interaction Center Assisted Experience Management Contact Center Express Call Center Elite/ICR Avaya Aura™ Call Center Elite/ICR Avaya Aura™ Experience Portal Voice Portal Automated Experience Management Proactive Outreach Manager Proactive Contact Performance Solutions IQ CMS 19

20. CTI is Getting in the Way of Innovation & Growth Outbound Voice Inbound Voice Offline Work I’m going to transfer you now, If I lose you what number may I call you back on Why do I have to give this information AGAIN Enterprise CTI & Routing VDN Vector Skill Agent Network Pre-Route VRU App – VDN EXIT Point to CM In/Out trunks and VDN’s monitored to record calls Basic decisions made on call delivery based on Agent Availability Reporting captures call stats, WFM records agent adherence Customerdials 1 800 • Issues • End Customer perceptible delays • Default Route • Inability to pass, attach and grow the CONTEXT between people and applications • Increasing cost to maintain CTI diminishes capacity to keep pace with business objectives

21. Transfers Cause Data Loss • For an end-to-end customer transaction, how much customer data is lost as the customer is transferred between agents, between type of interaction or between multimedia channels?  Approx half of respondents say up to 25% of data is lost with agent transfers Source: Webtorials Editorial/Analyst Division 21

22. Experience Management Innovation Collaborative Sessions Model (Anchor) End Customer Customer Specific Data Reporting Insights Live and interactive SIP conversations orchestrated throughout contact interaction Self-Service End Customer Interaction Session stays anchored at a fixed point ? Session Context Intelligent Customer Routing based on contextual data from the enterprise with external data queries Expert Assist Collaborative Sessions Analytics and Call Recording feeds customer specific data to SIP string and activates call recording Relevant Context delivered to Agent during live customer interaction Host Data Exchange Agent Assist Recording 22

23. Experience Management Innovation Contact Routing to Work Assignment Expert Presence Customer Intent Customer History Match to CC KPI Other Skills Language ANI DNIS • Work Assignment • Real time interaction data to enhance context • Additional data to improve match rate(1:1 matching) • Faster processing of data to improve speed of matching contact to resource • Self correcting to eliminate errors • Leverage experts across the enterprise Match to CC KPI Other Skills Language ANI DNIS Other Skills Language ANI DNIS ANI DNIS Skills Routing Business Advocate Work Assignment ACD

24. SIP SIP Proactive Outreach Self Service Experience Management InnovationOrchestrate The Experience (React to Prevent) Proactively Managing multimedia inbound/outbound automated and assisted care Live Agent (as needed) Applications Welcome Aboard Customer Customer Customer Customer Voice Portal Payment Reminder Customer Customer Customer Customer Product Promotion Customer Customer Customer Outbound Subscription Renewals E Mail ProductSupport Corporate Directory Text Ordering and Payments Inbound Voice Voice Voice Voice 24

25. Experience Management Integrating Customer Care into Enterprise Processes Users Productive Interaction Collaborative Engagement Interaction is Intelligent, Adaptable & Personalized Communications Applications Avaya Agile Communication Environment (ACE) Infrastructure Protected, Leveraged into New Value Agility, Enhanced Customer Service Intelligent Automation

26. Limited Integration of Enterprise Wide Customer Care • How well is your contact center integrated into the rest of your business operations for customer care? Less than 25% of contact centers are highly integrated with the rest of the business operations for customer care Source: Webtorials Editorial/Analyst Division 26

27. InnovationImproved user experience in Self Service • iPhone navigation example Basic Troubleshooting Technical Support Type of Issue Description of Problem 27

28. + InnovationSocial Media • Turn social network site into a 2-way personalized customer service channel • Customers friend a business by adding a personalized customer service widget (CSW) • Customers request service through CSW • Send customer info to contact center to enable routing, screen pops, etc. • Low-cost, highly targeted, and viral • Toll-bypass through VoIP calls possible 28

29. InnovationSocial Media Scan and process events from social media using existing Avaya Contact Center infrastructure Enterprise Contact Center Inbound Contact Avaya Social Media Gateway StandardMedia SocialNetworks Managed Agents & Experts Contact Routing Web 29

30. Avaya Aura Contact Center Suite: Updated & New Components

31. The Avaya Aura™ Contact Center SuiteDelivering Experience Management Performance Management Reporting Analytics WFO July Launch • Performance Solutions • Avaya IQ 5.1 • Avaya Aura™ Workforce Optimization • Assisted Experience Management • Avaya Aura™ Call Center Elite 6.0 • Avaya Aura™ Contact Center • Automated Experience Management • Avaya Proactive Outreach Manager 2.0 Agent Environment Assisted Experience Management XML MMS SMS SMS MMS Email Video Chat Voice Web AutomatedExperienceManagement IVR Web Chat Email Avaya Agile Communication Environment (ACE) or CS1000 31

32. Avaya IQ 5.1 Driving call center performance for superior results What is It? A reporting and analytics platform that consolidates real-time data from Avaya customer-service solutions to deliver insights into both customer and agent activity. Why does it Matter? It provides an insightful and highly customizable “dashboard” that lets managers relate activity to results and maximize contact-center efficiency How does it Work? Support for up to15,000 concurrent agents 900 simultaneous report users High Availability for failover/redundancy Real-Time Dashboards and Reports Adds CMS parity features such as 3 second real time display refresh rate 32

33. Avaya Aura™ Workforce Optimization What is It? • A suite for recording, analyzing and optimizing customer interactions in the contact center Why does it Matter? • It provides information businesses need to make informed decisions about agents, processes, and quality of service, resulting in improved customer satisfaction and retention How does it Work? • Call Recording and Quality Monitoring delivers quantifiable agent performance datathrough audio and screen recording • Workforce Management automatesagent scheduling by forecastingstaffing requirements • Performance Management: scorecards agents, supervisors, executives, with extensive set of KPI's.

34. Avaya Aura™ Call Center Elite 6.0 What is It? • New scalability and features for the world’s best selling call center Why does it Matter? • Improved flexibility, scalability and performance = Enhanced ROI How does it Work? • The world’s largest call center capacity on a single server • Business Advocate is now included and allows the contact center’s goals to be incorporated into every decision to help keep service at the right level for each type of call • New workflow commands streamline administration and maximize efficiency Enhanced ROI for new and existing customers

35. Avaya Aura™ Contact Center What is It? • A context-sensitive, inbound/outbound voice and multi-media solution that lets enterprises anticipate, automate and accelerate customer interactions Why does it Matter? • Solution that addresses end to end experience management – allowing companies to react to changing demographics, new economic realities and rapidly growing new modes of communication How does it Work? • Intelligent, work assignment of multiple media types • Customer context preservation throughout the interaction • Drag and drop Service Creation Environment • Common administration and unified reporting • Unified agent desktop • Integrated progressive and preview outbound dialing E Mail Voice IM /Chat Customers Unified multimedia customer contact 35

36. Enhanced Agent Productivity Features: • Supports agents working on multiple concurrent work items • Uses Multiplicity Presentation Classes to provide multiplicity capability to groups of agents • Measures the performance of agents working on multiple work items • Updates agent desktop to ensure agent productivity and effectiveness when working on multiple work items Benefits: • Increased agent productivity • Improved customer experience using multi-modal interaction between customer and agent

37. Multiple Contact HandlingImproves Productivity for Capable Agents • Number of simultaneous non-voice contacts configurable (1-5) by supervisor • Agent is automatically set to "Ready" while handling voice call, chat or email contacts • Time delay, before “Additional Contact” is presented is configurable • Agent can handle one inbound or outbound voice call and any combination of up to 5 additional non-voice contacts such as chat and email. Contacts will flash to indicate agent action required 37

38. Context Sensitive IM Handling Features: • IM routed to Agents • Dynamic Keyword groups that can be associated with a group of experts • One click by Agent to consult Expert • Provides customer context to experts • Buddy / Expert lists are also configurable by the administrator Benefits: • Improves first contact resolution by identifying persons who can help • Protects experts from being overused by agents! Note: Context Sensitive IM handling is supported only in CS1000 configuration only where the CC is integrated with MS OCS 38

39. Avaya Proactive Outreach Manager 2.0 Customer History What is It? • New platform for execution of automated outbound voice, email, text campaigns Why does it Matter? • Reduces costs, captures more revenue, and improve customer satisfaction How does it Work? • Tools for creation and management of multichannel outbound campaigns • Executes 1000s+ concurrent interactions • Real-time tracking and customer disposition • Manage inbound/outbound in one place! POM 2.0 Web XML E Mail IM /Chat Dynamic, multimedia customer outreach Customers Voice 39

40. Services 40

41. Solving Key Customer Concerns Professional Services deliver… Business productivity improvement Accelerating Businesses Risk Mitigation • Increase user productivity • Improve end customer satisfaction • Focus on growing your business • Support your strategy with next level of technology Reduced TCO • Vertical and horizontal best practices • Defensible business plan with predictable outcomes • Assess readiness prior to deploying new projects • Realize full solution benefits with expert implementation • Best use of current assets • Right size to current market • Aggregate and consolidate • Audit and optimize • Smooth deployments with minimal disruption $  

42. Comprehensive Avaya Professional Services Approach To Contact Center • >1300 consultants averaging 12 years of experience • > 2,000 projects delivered, across the globe, per month • > 40,000 Contact Center Systems Installed World Wide • New capabilities from Nortel suite around CC, Data, ACE, Vertical Applications Discovery Requirements Design Implementation Assurance Optimization Technical Auditing Operational Contact Center Assisted Experience Stress Testing Best practices Business UC Readiness Testing Benchmarking Business Auditing Automated Experience Technical Data Performance Management Video Global Practices & Capabilities New & Enhanced Capabilities Advisory Services

43. Advisory Services Technical Advisory Services Business Communications Advisory Services Discovery process to understand needs Scope and design roadmap project Identify improvement opportunities and gain alignment Validate design against best practices • Identify and qualify business improvement communication strategies • Structured discovery & review • Alignment with key stakeholders • Deliverables • Solution Strategy Recommendation Document • Business Case* • Business Requirements* • ROI/TCO Analysis* • Architectural design and assurance for complex projects • Access to Advanced Solution Architects for technical architecture validation • Deliverables • Solution Recommendation Document on technical architecture, approach, and solutions to deliver reliable and best-in-class capabilities * Enhanced and Premium Packages only 43

44. Self-Funded Roadmap Optional long-term architectural roadmap which delivers cost savings to fund future technology investments • Based on discovering and quantifying cost savings opportunities • Deliverables • Roadmap • Financial Plan • KPI Impact / Review • Future State Architecture • Business Model • Roll-Out Strategy • Key Requirements • Assumptions Delineates and prioritizes steps to harvest cost savings, execute process improvements, and deploy technologies 44

45. Summary 45 45

46. Summary • Changing demographics are transforming contact centers • The Vision of Next Gen Contact Center is about end to end Experience Management • Avaya Aura™ Contact Center Suite strategy and innovation and world class services delivers Experience Management • Avaya extends our industry leadership and commitment to protect, extend, grow customer investments • Our roadmap will continue to address business problems for our customers • Avaya differentiation: open environment, enterprise wide communication integration, scalable solutions from mid market to large enterprises 46 46

47. thank you

48. Backup 48

49. The Path to Next GenerationSample Customer Roadmap Bring FullContext to Every Session Immerse theAgent into the Experience Orchestrate the Experience Manage,Learn, Apply Recommended Roadmap: Now… • Customer: Large Insurance Company • 4000 Agents • CC Elite, CMS, AES,IP Agent • FCE rollout in progress 1 • Avaya Aura™ Lower TCO • Service delivery readiness • Avaya Voice Portal • Lower TCO • Improved FirstContact Res. 2 5 • Problems: • Now • Cost management • Flexibility to delivernew services • Silo’s experience • 6-12 Months • Agent efficiency andproductivity • 12 Months Plus • Service centralization • End-to-end experiencemanagement • Avaya Aura™ WFO • Agent efficiency,productivity 3 3 4 6-12 Months… 2 4 • Avaya Aura™ CC • Improved FCR • Customer Sat 5 1 Connect & Openthe Enterprise 6 • Dialog Designer & Avaya ACE • Business Process Optimization ApplicationIntegration 6

50. Avaya Contact Center Customers • Whirlpool • Challenges: Handle 40,000 calls per day, ensure business continuity, drive cost savings and operational efficiencies, use the contact center to ensure customer loyalty and consistent brand image • Solution: Consolidated multiple contact centers into one, architected for business continuity, implemented multi-media, home agents, and voice portal • End result: Customer satisfaction increased by 40%, won four prestigious contact center awards • Group Health Cooperative • Challenges: Improve call handling and contact center efficiency, reduce resolution time of patient inquiry • Solution: Implemented self-service capabilities and proactive outreach, made CTI and automation improvements, connected all sites with IP, intelligent routing • End result: Significant cost savings, first call resolution improved by 71% - one patient says “The results have been fantastic”.