Advertisment

CSA 2008: Satisfied, but not Delighted

author-image
DQI Bureau
New Update

A product or service offering is the key satisfaction derivative for the CIO.

Vendors will need to fulfill at least that basic satisfaction. However, the key

differential in satisfaction or that extra mile satisfaction is going to come

from the extra mile post sales experience in terms of services and support

that the vendors are able to provide to customers.

Advertisment

This is reflected in the findings of the DQIDC CSA2008 survey, where, in at

least four of the eight segments being surveyed, post sales service/post

contract stage experience emerged as the second most important satisfaction

parameter for the enterprise user. This is also the sign of growing market

maturity as it graduates beyond the initial phase of deployment, implementation,

and adoption. It is gradually going to become critical for the vendors to

re-align their customer satisfaction strategies with this imperative.

Vendor Performance



Having a higher market share does not necessarily mean higher customer

satisfaction. There are a few exceptions like Cisco in networking products, HP

in laser printers and MFDs, and HP in notebooks. However, the instances proving

the disjoint are far too many this year. Take for instance Microsoft Business

Solutions and SAP in the case of enterprise applications; Sun in enterprise

storage; CMS and HP in IT Services; 3Com in networking products; and Sun again

in servers.

Advertisment

Microsoft edged past SAP to become the enterprise applications vendor that

CIOs are most satisfied with. While popular perception, going by market share,

would have sided with SAP, CIOs obviously feel otherwise. Similarly, in case of

IT services, while CMS went up 3 ranks, the global MNC, HP dropped an equal

number to end up at #6.

The big IT services vendors like Wipro, TCS/CMC, IBM, and HP fail to make it

to the top three. 3Com pushed up two ranks in the networking segment, ending a

mere 0.4 points below the market share leader Cisco. Sun had a field day in both

servers and storage, where it is a joint winner with EMC.



Methodology: DQ-IDC CSA 2008
The sixth

Dataquest-IDC survey on Enterprises Customer Satisfaction with IT products

and suppliers is compiled on the basis of methodology jointly decided by IDC

India and Dataquest. The IDC team was led by Shailendra Gupta, and assisted

by Arpan Gupta.

IDC India conducted the

survey among 326 CIOs of 1,000 large enterprises (from ET 500, BW 500, or BS

1000 lists) this year, with the same objectives as that of DQ-IDC CSA 07,

which were: to develop brand scores of customer satisfaction for different

product and service categories, and to identify functional and service

attributes that drive customer satisfaction.

The survey covered large enterprises across

various verticals like Manufacturing, BFSI, IT/ITeS, Telecom and Other

Services and the Government. The survey was spread across ten citiesDelhi,

Mumbai, Bangalore, Chennai, Kolkatta, Hyderabad, Pune, Ahmedabad, Coimbatore

and Chandigarh. The survey covered Desktops, Notebooks, Servers, Enterprise

Applications (SCM, CRM, ERP), IT Services (integrated and outsourced

services), Networking Products, Laser Printers & MFDs, and Enterprise

Hardware Storage (SAN, NAS). In each category, a minimum sample size for

each brand was identified using the understanding of the market. CIOs were

asked to rate the level of satisfaction on each of the parameters and

sub-parameters on a five-point scale, depending on the usage of the product

or service. Hence, each CIO could give multiple responses. That explains the

different bases of responses in each individual category.

IDC India derived the importance of each of

the parameters from the satisfaction scores, which were used as weights for

each of the sub-parameters. To arrive at overall satisfaction scores of

different products and services, IDC India measured satisfaction against

each of these importance parameters and arrived at weighted scores of

satisfaction, on a maximum possible total of 100, which makes all the

parameters and brands comparable within their scope.

Advertisment

A plausible explanation for this can be the theory that greater the market

standing of the vendor greater the expectations, setting a higher bar for

satisfaction. And, by the same logic, the next in line vendors are able to

exceed expectations because the bar is set low for them.

There is also a possibility of erosion of customer satisfaction as companies

grow bigger and expand their footprint because not all can cope with pressure.

Simultaneous growth in marketing and customer focused initiatives can arrest

this erosion. Microsoft and Sun have aggressively expanded into the tier-2 and

tier-3 cities over the last year and a half, which gave them the proximity to

better cater to customers.

A common thread running through most of the segments is the sharp rise and

fall in vendor ranks. IT services emerges as one of the most dynamic and

volatile segments with some major upheavals. Apart from CMS gain and HPs loss

of 3 ranks each, other cases in point are Sify moving up 3 ranks and HCL

Infosystems and Wipro gaining and losing, respectively, 2 ranks each.

Advertisment

While 3Com and Microsoft Business Solutions gained 2 ranks each in the

networking and enterprise applications segments, Sun made hay with a 3 rank gain

in the server segment. On the other hand, both notebooks and desktops were

equally volatile with Dell gaining 4 ranks (from 6 to 2) in the former, and

Lenovo making the same jump to be the topmost vendor in desktops. The big upset

in desktops was Wipro, which lost 4 ranks to become the second lowest ranked on

customer satisfaction.

Performance Barometer



While enterprise applications was the front runner on the overall

satisfaction score, IT services got the lowest score. Incidentally, the rise in

satisfaction is the highest with IT services (at 1.60% growth in satisfaction)

and enterprise applications vendors (at 1.79% growth), which were the worst hit

in last years dip.

The improvement in satisfaction levels notwithstanding, there remain common

concerns for CIOs when it comes to satisfaction with vendors. These include

training/demonstration/hand holding, vendor expertise, availability of spare

parts, clarity of pricing contracts, domain knowledge, interaction with the

service team, total cost of ownership, credit facility received, routine checks,

responsiveness and availability of service personnel, ease/convenience of

installation, and adherence to SLAs.

Advertisment

Shipra Malhotra



shipram@cybermedia.co.in

Desktops

With the desktop market becoming highly commoditized, there is hardly any

differentiation in terms of features and functionalities offered by various

vendors. Ensuring customer satisfaction in such a highly commoditized market,

thus, becomes an even more challenging task. This is reflected in the low degree

of variance within the satisfaction scores of different vendors.

Advertisment

With the product being commoditized, the key difference in satisfaction comes

from the services part. Considering this, its a matter of concern that vendors

have done poorly on the post-sales service parameter. With a satisfaction score

of 81.3, it is the lowest among all the parameters. The saving grace, though,

has been the comparative growth over last years score80.7 points.

The survey threw light on some concerns that CIOs have from their desktop

vendorsdemonstration and training, expertise of vendor, availability of spare

parts, clarity of pricing contract, etc.

Advertisment

The overall customer satisfaction score in the desktop market has shown a

very marginal improvement (from 82.7 points last year to the current 82.9

pointsa 0.24% growth) upon last years performance. While the satisfaction

growth trend can be termed as almost staid, the interesting part here is the

vendor dynamics.

Lenovo witnessed a sharp rise

in satisfaction with customers expressing satisfaction on parameters like

pre-sales and marketing, price and commercial, and delivery and

installation. On the other hand, CIOs issues with factors like Overall

Product Reliability (Product Features), Value for Money (Price and

Commercial), and Interaction with the service team (Post-Sales Service)

proved to be Wipros Achilles heel, leading to its downfall

Lenovo regains the #1 position that the IBM-Lenovo combine held in the

CSA-2006 survey. More importantly, Lenovo and Zenith are the only vendors to

have improved upon their last years satisfaction scores.

Over the last one-and-a-half years, Lenovo has expanded its footprint in

India. The company worked on the visibility part. Around two years ago, IBM

overshadowed the Lenovo brand, whereas people have now started identifying with

Lenovo as well. This is reflected in the satisfaction improvement on the

pre-sales and marketing parameter, from 82.9 points last year to the current

84.7. Considering it is also the strongest in terms of product as well as

post-sales service, Lenovo seems to have everything going for it in the right

places. Even though CIOs seem to be happiest with Lenovo when it comes to

product reliability, product functionality, domain knowledge and understanding,

value for money and responsiveness, the company needs to work on devising better

clarity in its pricing contracts, and needs to up the ante on demonstration and

training. Overall, on pricing and delivery and installation front, it is HP that

takes the cake.

On the five key satisfaction parameters, CIOs are most

satisfied with their desktop vendors in terms of their product offerings.

But their verdict reflects that vendors need to work upon improving their

post-sales service to match up to the satisfaction levels that the product

elicits. Post-sales parameter has the lowest satisfaction score

despite being the second most important derivative of satisfaction

On the other hand, Wipros lack of focus on its PC business probably explains

its disappointing fall of four places. As an SI, it has mostly been pushing its

desktop where there is an opportunity in its SI deals. This apart, it has been

picking up some government deals. The company hasnt invested much in terms of

product evolution, nor has it been competitive on the pricing front. The

cumulative effect is the drop in satisfaction levels of its customers.

Customer

satisfaction in the desktop market has gone beyond standard requirements

Sudhir Puthran, director,

Service & Support, Lenovo India

What has been the

companys strategy for ensuring customer satisfaction?




Last year, the focus was primarily on how we move to the next level, from
satisfying the customers to delighting them and how we get that kind of

response from the customer. One of the answers was reaching customer on

time. We worked on increasing our coverage, which was a big issue last year.



For commercial desktops on

the enterprise front, we expanded from 88 cities to around 120. Then we

looked at the touch points. The people who touch customers are those in call

centers and engineers who go to the field. We want them to carry the same

conviction. For this, we started a training program for imparting soft

skills, as its a mind thing.



What initiatives have you

undertaken in the area of customer support?




Last year, we set up our customer care operations, which allow a single
touch point for customers and partners to elevate any possible issue they

may have. There is one owner, who will be the contact point and that owner

will internally chase the right people and push them. When the business as

usual fails or the normal process fails, it can be brought to the customer

care operations without the customer or the partner bothering about who to

contact and how.

What challenges do you

face in satisfying ever-demanding customers?




Customer satisfaction in the desktop market has gone beyond the product and
the standard requirements. The key challenge now is how to make our people

sensitive to the non-standard requirements and issues of the customers.

Vendors know what to focus most onproduct

and post-sales serviceto make CIOs satisfied, considering these two have

come up as the top two parameters of satisfaction. Lenovo has scored the

highest on all the three product attributes, helping it ensure the top

position in overall satisfaction. Surprisingly, it is the assembled market,

and not the branded players, that has been able to satisfy CIOs most when it

comes to expertise in resolving problems

Notebooks

Notebooks, today, form not just the entry point, but also the fulcrum of

enterprise mobility. The satisfaction levels in this particular segment,

therefore, become critical in determining the entire enterprise mobility

experience. This, in effect, brings with it a set of more demanding and

discerning customers (CIOs). The end resultthe overall satisfaction levels of

the notebook users dropped, albeit a mere 0.12% (from 83.6 to 83.5).

While it may be a little far fetched to brandish such a marginal fall as a

rise in dissatisfaction levels, it would, nevertheless, do a lot of good to

probe a little further to understand the areas needing improvement.

This drop is primarily because of the performance in the three big areas of

product, pre-sales and marketing, and delivery and installation. Specifically,

CIOs referred to demonstration and training, interaction with service team,

total cost of ownership, vendors understanding and domain knowledge, and

availability of spare parts as their concerns with their notebook vendors. As

per the survey, the enterprise customers feel that vendors should also be

leveraging on aspects like functionality and convenience in operations.

As per the findings of CSA-2008, CIOs are now attaching greater importance to

pre-sales and marketing, price and commercial, and delivery and installation as

compared to last year.

Among the vendors, while HP moving from the second position to the number one

spot was no surprise, it was Dells ascendance of four ranks that is a drestic

change. Also, the companys model of direct dealing and selling can have

something to do with satisfaction.

Source: DQ-IDC CSA Survey 2008

Base: 326 CIOs (486 responses)



Satisfaction on vendor understanding/domain knowledge of your business

(Pre-sales and marketing), Clarity of Pricing, Contract & Credit Facility

Received (Price and Commercial), and Demonstration/Training (Delivery and

Installation) have been the major contributors for satisfaction improvement

for Dell this year

Customers are quite satisfied with Dells overall product functionality,

convenience in operations and clarity of pricing, wherein it has overtaken HP.

Both Lenovo and Toshiba witnessed a fall of two ranks each. Toshiba, in fact,

scored the lowest among all the vendors on the product and post-sales service

front. Riding on the IBM legacy, Lenovo had managed to make it to the top of

customer satisfaction in notebooks last year. However, over the year, the

company added its own Lenovo notebooks at the lower end to increase its market

base. Similarly, like IBM, Toshiba is also a premium brand. But, over the last

one year, in its bid to expand its market, Toshiba also got hit. Customers

couldnt find the brand value that they identified with the brand, leading to a

fall in satisfaction levels.

Except for the product parameter, in all the

remaining four parameters only two vendors are able to make it above the

industry average. Some of the major concerns that CIOs have from their

notebook vendors are proper demonstration and training, interaction with

service team, total cost of ownership, vendors understanding/domain

knowledge of their business, and availability of spare parts
A

business notebook user is a user having a very busy day, carrying data that

is critical to him



Anurag Arora, country manager,

Business Notebooks, Personal Systems Group, HP India

What

initiatives has the company undertaken to help improve its customer

satisfaction levels?



The initiatives taken by HP to improve customer satisfaction are to do with
ensuring that customers get a business notebook that they can rely on, is

easy to use and secure. For this we have worked on features that take into

account the usage patterns of users and suggest business notebook solutions

based on the usage.



What

about customer service/support initiatives?



We believe that a business notebook user is a user having a very busy

day, carrying data that is critical to him. Our services have been oriented

to satisfy this user. For that, a whole lot of notebook vendors give return

to bench warrant. In HP business notebooks, we have the provision to offer

on-site warranty. We are constantly innovating and have now started the Data

Recovery Services with our notebook. This is over and above the fact that we

are bundling the data backup and recovery manager software in our notebooks.

Our coverage spans thirty-three locations across the country and we plan to

triple the same within a few months, ensuring that the user virtually has no

downtime.

How are the satisfaction trends and

patterns of notebook customers changing?



The factors that are becoming crucial to keeping the customers in this

segment happy and satisfied are to do with the user of the notebook being

able to trust the notebook, have a great battery life, find it easy to use,

and is confident that the notebook is secure enough to avoid pilferage of

data. After all, a business notebook spends 12-14 hours in a day with the

user, and HP business notebooks are built to withstand that usage.

From your perspective as a vendor, which

challenges do you face in satisfying your customers?



Some of the challenges that we face are usage of the notebook in the

business environmentreliability, security, the spectrum of

needslightweight, workstation, standard, highly secure; and international

warranty.

While CIOs attach almost equal importance to

the top two satisfaction parameters (100 for product and 99 for pre sales

and marketing), there is greater disparity in their satisfaction levels on

both these derivates. Sony needs to put more energies and efforts into its

understanding of this market and domain knowledge of the business, wherein

it has scored well below the industry average and has also the lowest score

among all the attributes of product and pre-sales and marketing parameters

Servers

Due to increasing satisfaction for price and commercial followed by pre-sales

and marketing, the overall satisfaction of server users of enterprises has

increased by 0.36% (from 83.8 to 84.1 points) as compared to last year.

Customer satisfaction in the server market seems to be a highly competitive

play. The top three satisfaction scores (of Sun Microsystems, IBM, and HP) are

within 1.6 points of each other, with Sun and IBM standing almost neck-to-neck.

Among the top three, only Sun has managed to grow its satisfaction score and

that too with a margin of almost five points.

Looking at unit market share, Suns position would come as a surprise.

However, customer satisfaction is not a direct co-relation of market share.

While Sun might be more expensive than its competitors, it is the perceived

value that it brings for that cost in terms of robustness is what seems to have

worked in favor of the vendor.

The satisfaction on product

functionality, convenience in operation and responsiveness to the customer

requirements have catapulted Sun onto the number one position.

Interestingly, the company is the only one to have made some significant

improvement in satisfaction score over last year, while its competitors

didnt budge far from their last years scores

Another plausible reason can be the expansion of Sun into the x86 server

space in the last one-and-a-half year. Because it is a new product from Sun,

there are higher chances of a product refresh as compared to the vendors whore

already there in the x86 space. The footprint in the x86 space is also much

higher and that could have possibly helped expand its customer base itself. The

expansion in customer base means that there is a wider base of customers to

vouch for satisfaction versus customers who dont have any experience with the

product and, therefore, cant judge satisfaction levels.

With the operating system coming from the Sun stable, there is a possibility

of the OS talking to the server much better, thereby leading to a satisfying

experience with the product. This is reflected in the fact that the company has

got the highest score (90.3 points) on the product parameter, which is quite

ahead of the industry average of 86.3. CIOs are particularly happy with the

reliability, functionality of Suns servers and also the convenience in their

operations.

Last years top ranker IBM couldnt keep pace

with Sun on parameters like product, pre-sales and marketing, and post-sales

service, thereby conceding its position to the latter this year. While there

is little variance in the scores of Sun, IBM, and HP on all the five

parameters, HCL and Wipro have quite some catching up to do

Continuing the good run, Sun has improved upon its last years scores on all

the five derivates of satisfaction, while last years top ranker, IBM, has seen

a fall in scores on at least three countsproduct, pre-sales and marketing, and

post-sales service.

Wipro, on the other hand, despite scoring the lowest on all the five

parameters, has improved upon its last years scores on four of the five

parameters.

At a broader level, the survey indicates some drastic changes beginning to

take place in the satisfaction trends in the server market. CIOs now expect

vendors to be more aggressive and forthcoming in terms of domain knowledge and

responsiveness to their specific requirements. Price and commercial, which was

rated fourth in importance among the five parameters last year, has been rated

the second most important parameter this year.



Reduction in tolerance is viewed by Sun as an opportunity to modify and

enhance

Joyjit

Chatterji, country director, Services, Sun Microsystems India

What have

been some of your customer focused efforts? And, how are your global

practices assimilated in the Indian market?



Our

efforts have focused toward prevention with proactive management. Specific

initiatives have revolved around tracking of all cases once opened through

the various stages of process from initiation to closure. Each stage has

defined tolerance level and escalations are initiated if crossed. We have

also undertaken restructuring to focus on tier-2 customers with more regular

engagements. Other initiatives include proactive system health checks,

replacements, among others.

We have a

common global target for Customer Feedback Index (CFI) which is measured

every quarter. Best practices are customized to meet local needs but the

concept is to ensure consistent service quality irrespective of customer

location.

Post-sales is emerging as a critical

customer satisfaction imperative. How do you ensure customer satisfaction on

this count?



From an implementation and post-sales service perspective, simple

answers have been; adhere to time lines, ensure quality, ensure prevention,

rectify in case of issues and rectify quickly, and capture the learnings.

How are the dynamics of customer

satisfaction changing?



Rapid growth has been one of the key highlights of the Indian industry,

coupled with increased dependency on IT, compliance. Adherence to best

practices and high availability are some of the drivers. Customer tolerance

levels have reduced and perfection is becoming a natural demand.

This, then, is becoming challenging for

the vendors. How do you cope with it?



Reduction in tolerance is viewed by Sun as an opportunity to modify and

enhance. We have been making efforts to ensure we capture the needs early

for a customer/segment and have the optimum solutions. Our structure and

technology brings in the flexibility to mould ourselves to the customers

needs. The key success factor is pace of change that any company, which is

serving the demanding market, has to adapt to. The need of the hour is to

evolve continuously, assuming that what worked today may not work tomorrow.

Wipro and HCL fall way below the industry

average scores on the derivates of the two most important satisfaction

parameters of CIOs. Even though the respondents have expressed the highest

satisfaction with Suns responsiveness and domain understanding, their

satisfaction on these two grounds is still relatively much less as compared

to their satisfaction with the functionalities and reliability that Sun

offers with its products

Networking Products

The customer satisfaction trends in the networking products market are up for

some changes. The two important satisfaction parameters last yearproduct and

post-sales servicecontinue to retain their importance this year as well. But,

down the order, the market witnessed transformation in the satisfaction

patterns.

Price and commercial gave way to pre-sales and marketing as the next most

important satisfaction parameter. The increase in relative importance of

satisfaction parameter, however, doesnt necessarily mean improvement in

satisfaction score as well, which remained unchanged at 84.3 points.

While Cisco maintaining its top

rank is not a surprise, the real story is 3Coms rise. And, the interesting

bit is not so much to do with its jump from number 4 to number 2, but more

to do with the extent of its improvement in the satisfaction scorecard.

This, when all the other players, including Cisco, saw a fall (albeit minor)

in their satisfaction scores

The overall satisfaction of networking products among the users of

enterprises has increased by 0.6% (from 83.8 to 84.3) as compared to last year,

with the major contributors being improvement on the counts of delivery and

installation, followed by price and commercial.

The key highlight of the survey findings is the revival of 3Com, which moved

up two ranks (from four to two). More importantly, it is the extent of

improvement with which it has made it to the #2 spot. The claim to fame is not

just about making it to that position, but also being a thin margin away from

the tank ranker. Against market leader Cisco, its no mean feat.

Interestingly, 3Com is the only company to have improved its satisfaction

score, while all the remaining, including Cisco, witnessed a drop in

satisfaction scores over last year. The company improved its satisfaction from

80.4 points last year to the current 85.8 points. This has been contributed

mainly by clarity of pricing contract and TCO (price and commercial) and

demonstration and training (delivery and installation).

3Coms ascendance has been majorly

contributed by the companys ability to satisfy CIOs on the counts of

clarity of pricing contract and total cost of ownership (price & commercial)

and demonstration and training (delivery & installation). However, the not

so good news for the company is that it has fared below the industry average

when it comes to satisfying CIOs on the most important parameter of product

3Com has scored the highest satisfaction score on three of the five key

satisfaction parameters. This becomes significant when compared to the companys

performance last year, wherein it had scored the lowest on four of the five key

parameters. The management changes the company has witnessed over the last one

year may have something to do with the revival. Management changes could have

brought in new thinking, newer ideas and fresh focus on certain areas like

pre-sales and marketing.

Cisco, however, maintains its supremacy on the product and post-sales service

parameters. There is nothing to beat Cisco when it comes to product reliability,

functionality, and convenience in operation and adoption of the product.

Customers are also happy with its responsiveness to technical queries. However,

a cause for concern for the vendor is that CIOs have rated it lower than 3Com

when it comes to value for money, clarity of pricing contract, vendor

understanding/domain knowledge, demonstration/training and expertise to resolve

problem.

To

support critical customer networks, the post-sales vehicle is very

important

Tata

Rao, senior VP, Systems Engineering, Cisco, India & SAARC

How

proactive is Cisco on the customer satisfaction front?




Customer satisfaction has always been a core value at Cisco. The company has
been measuring customer satisfaction since 1992, through a formal and

stringent process. The customer listening team within Cisco manages a yearly

global customer satisfaction survey. It measures the customer sentiment

toward the companys account teams, products, services and partners,

involving nearly 100,000 responses each year. The customer feedback

collected by the team is analysed and addressed accordingly. In most cases,

specific action points are drawn-up with sign-off from customers, and then

acted upon followed by constant interaction with customers on those aspects.

This closed loop process ensures that we are able to immediately respond to

customer needs and address them completely and promptly.



What

are the key customer-related initiatives by Cisco?



Some of our major initiatives consist of effectively identifying

customer business requirements leading to product feature/software

enhancement on Cisco products; availability of a very strong Cisco channel

organization responsible for selling and implementation of Cisco products

and technologies to customers satisfaction; education initiatives for Cisco

channel partners and also customer training programs on various Cisco

products and technologies; availability of Logistics Centers in a large

number of cities in India; easy access to Cisco Technical Assistance Center,

24x7, for resolving any network related issue.

How are the customer satisfaction trends

changing in the networking market?



One of the most significant changes consists of requirement of more

product features for enhancing a service or business by customers. Another

emerging trend relating to maintaining customer satisfaction is the

capability of networking vendors to sell and implement the complete

solution, rather than disjointed products that are not integrated. This

requires specialized skills on various technology areas, and a clearer

understanding of the business and customer requirements, a skilled channel

and technology backing by the vendor itself.

What are some of the customer

satisfaction-related challenges faced by networking product vendors?



With the advent of newer technologies like unified communications,

video, mobility, IPTV, large campus networks, pervasive security

requirements, data centers, wireless cities, among others, the need to scale

the skill level and awareness of the entire community is another big

challenge. This requires a lot of investment in developing and rolling out

new training programs to spread technical awareness about the successful

implementation of new technologies and products.

Cisco maintains lead with a comfortable

margin over its competitors on a majority of the sub parameters of product

and post-sales servicethe two most important factors determining

satisfaction for CIOs. All said and done, it is also the only vendor that

has consistently scored above the industry average on all the derivates of

these two parameters, while 3Com has missed it on at least four counts

Enterprise Applications

In terms of satisfaction trends, enterprise applications has emerged as one

of the most dynamic markets. The fact that customer satisfaction is a close

competitive play, has made it even more imperative for enterprise application

vendors to align themselves to the changing trends to help meet and exceed CIO

expectations.s

So, what are the CIO expectations? Undoubtedly, he/she wants the most

reliable product with great functionality and ease of operation. Last year,

pre-sales and marketing, and price and commercial were the most important

factors for satisfaction after product. This is indicative of the growing

maturity of Indian enterprises in terms of the adoption of enterprise

applications.

As the enterprise moves further in its ERP/CRM/SCM journey, there is greater

focus for the CIO on aspects like installation and post-sales service. Going by

their responses, most enterprises now seem to be in the latter phase.

Customer satisfaction in the

enterprise applications market seems to be a very competitive play

considering theres not much variance in the satisfaction scores of the top

three vendors. However, what makes Microsoft Business Solutions coming on

top more interesting is the vendors relative improvement over its last

years scores, which is the highest as compared to its competitors

So, vendors now know where to focus their energies most on. But are they

doing so? Going by the survey result, it doesnt seem that theyre putting all

their energies in the right place.

Interactions with service team and adherence to SLAs have been voiced as

major concern areas on which CIOs would like their enterprise application

vendors to take action on. On the other hand, pre-sales and marketing has ended

up making CIOs most satisfied (with 87.5 points). Vendors need to re-visit their

customer satisfaction strategy and make sure that theyre not putting their eggs

in the wrong basket.

The rise of Microsoft Business Solutions has

been contributed primarily by vendor understanding/domain knowledge of

business (pre-sales and marketing) and clarity of pricing contract (price &

commercial). This is one of the segments where all the vendors, with the

exception of one (Ramco), have performed better than the industry average

The growth in the overall satisfaction level in the enterprise applications

segment has seen the highest growth among all the eight segments being surveyed.

Last year, enterprise applications was among the most affected by the dip in

satisfaction levels. It made a revival with the overall satisfaction of

enterprise application users increasing by 1.79%. In terms of vendor rankings,

SAP has conceded its top position to Microsoft Business Solutions, though only

by a mere 0.2 points score. But, what assumes greater significance is the

relative improvement in Microsofts performance over the last year as compared

to SAP. While the former grew from 81.4 points in 2007 to 86.5 points in 2008,

the growth for SAP is from 84.7 points in 2007 to 86.3 points in 2008. Oracle is

closer behind at 85.8 points, up from 83.9 points in 2007.

The improvement in Microsofts satisfaction scores was mainly due to CIOs

high degree of satisfaction with the vendor with respect to understanding/domain

knowledge of their business (pre-sales and marketing) and clarity of pricing

contract (price and commercial).

The companys change in licensing policy with the intention of making it

simpler seems to have paid off. Another plausible reason can be the vendors

efforts at scalability and product improvements in the last 2-3 years. This

apart, it also enjoys the rub off of the overall Microsoft brand. As a result,

the overall brand recall is much higher.

For Oracle, overall product performance, scalability, and geographical reach

to provide service are issues with its customers. On the other hand, SAP has to

work harder on improving the convenience of installation/adoption, greater

clarity in its pricing contracts and responsiveness to technical queries.

The

concern of the customer is not pricing but the total cost of ownership

Sushant Dwivedy, director,

Microsoft Business Solutions, Microsoft Corporation India

What is

your strategy with respect to customer satisfaction?



The moot point when you take on any customer-related initiative is that

it is a long-term play. When we had taken over from Navision, we had

institutionalized customer satisfaction and motivated the channel to drive

customer centricity. And, over a period, created the framework.



What

are some of the specific customer centric programs that you have undertaken?



One of the top things was the business ready enhancement plan, wherein

we set up the customer portal. The portal provides training free of cost to

the customers employees. This is for the customers who sign up for the

enhancement plan. They also get updates on the licensing they have, when

does it need an upgrade, and next product releases, among others. We have

also institutionalized a Partner Advisory Board Meeting to take in the

partners feedback. We initiated a project, Project Khush Kustomer,

wherein we went back to customers and checked the reason for any

dissatisfaction they had, and then worked backward.

What are the factors critical to

determining satisfaction of the customer in the enterprise applications

space?



We have been observing that for the customers, it is not just about the

depth of functionality but also about the usability and ease of use of the

software. Secondly, when enterprises are buying ERP, they are looking for a

long-term relationship with their vendor. Therefore, post-sales gains a lot

of significance for them. Verticalization is another key for users in the

enterprise applications space. As a result, we focus on micro verticals and

work extensively with our partners for orienting the product for particular

niches.

Enterprise applications is another segment

wherein CIOs dont just demand a reliable product with good functionality,

but also want the vendor to have the ability to resolve problems and be

available post the implementation as well. This can be because enterprise

applications generally require a long-term relationship with the vendor.

While Microsoft has reasons to celebrate, a cause for concern for the

company is the low satisfaction level CIOs have expressed with the security

aspects of its product

IT Services

For IT Services, the customer satisfaction trends are moving in line with the

maturity of that market segment. Indian CIOs, today, are giving a lot of

importance to aspects like adherence to SLA/QoS, technical expertise, solution

orientation, responsiveness and availability, ability to deal with crisis, etc.

A good and wholesome post-sales experience is, therefore, a must. However, the

satisfaction for customers on this very count is the lowest among all the four

satisfaction parameters.

Among the areas where CIOs are particularly less satisfied are: adherence to

SLAs, turnaround capability, solution orientation, and routine checks by their

IT service provider. CMS, HCL Infosystems, HP, and IBM seem to be the most

afflicted by the SLA factor. Sales and marketing/pre-contract stage experience

has become the least important criterion for them this year.

Customer satisfaction in the IT

services landscape is reflective of the dynamic nature of the market itself.

As per the survey, there have been some significant upheavals, rises as well

as falls, with Sify, CMS, and HP being at the receiving end of the changing

satisfaction patterns of CIOs

The overall satisfaction of IT services users of enterprises has increased by

1.6% due to increasing satisfaction on all the four satisfaction parameters. IT

services has witnessed the second highest growth this year.

Interestingly, two of the top three vendors from last yearWipro and HPhave

failed to make it to the top three. On the other hand, HCL Infosystems and Sify,

which had performed below the industry average in 2007, have shown above average

performance this year. CMS, Sify, and HCL Infosystems have witnessed the maximum

movement upward in terms of ranks. Sifys rank has improved from #6 in 2006 to

#3 due to satisfaction on parameters like ability to support multi location, SLA/QoS-related

commercial terms and adherence to QoS/SLA, geographical reach to provide

post-sales service, and availability of required spare parts (post-contract

stage experience) have been the major contributors in increased satisfaction

this year, while CMS has improved upon proactiveness, responsiveness, and reach.

Even though managing to make it to the number 5

position, the relative growth in CMS customer satisfaction score over the

last year has been the highest, thereby emerging as the dark horse not to be

ignored. On further analysis, we find that the satisfaction on aspects like

proactiveness of the service provider in understanding the specific

requirements (sales & marketing/pre contract stage), clarity of pricing

contract (price & commercial) and geographical reach to provide after sales

service and responsiveness and availability of service personnel

(post-contract stage experience) have been the major contributors in the

rise of satisfaction levels for CMS


Customers lay a lot of stress on transparency and creativity

Sanjay Gupta, director,

Customer Support Operations, HCL Comnet

What

initiatives have been undertaken by HCL Comnet to ensure customer

satisfaction?



This year we launched the CSAT Survey through the external agency, IMRB

International, to identify our critical improvement areas and proactively

initiate actions to better our services. Also, we organized periodic

customer meets across the country to educate our customers about the trends

in the latest IT infrastructure services domain.



What

factors are becoming imperative to customer satisfaction in the IT services

market?



Customers lay a lot of premium on transparency and creativity. They want

to be continuously informed about what is happening inside their system and

in the outside world. Hence, they expect their vendor partners to be a mix

of consultants and executioners. Besides, technological competence and cost

competitiveness are crucial factors for customer satisfaction in the IT

services space.

What challenges do vendors face in India

when it comes to customer satisfaction?



Delivering customer expectations cost effectively and within stiff

deadlines are some of the challenges in the IT service delivery space.

During project implementation, customers also demand real time visibility on

the project phases and proactive alerting of any future roadblocks.

How are IT services models affecting

customer service?



There are two clear trends we are witnessing in India. Firstly, there is

a growing acceptance of the need for standardized processes in IT

operations, and with our experience in delivering globally renowned remote

management services, we are well poised to address this need in the most

cost-effective manner. Today, HCL Comnet is managing over a million devices

from its service centers, and such volumes can be effectively handled only

through standardized tools and processes. Secondly, customers increasingly

demand one SLA for the entire infrastructure (be it networks, data center or

applications), rather than a siloed approach. That is where HCL, again,

thanks to its breadth across the IT service spectrum, is well poised to

offer and manage a single SLA for the customer.

The verdict of the survey for IT service

providers is to provide a better experience to their customers once the deal

is through, considering CIOs are not very satisfied with them on many

attributes. In effect, CIOs are looking for a more responsive service

provider with a solutions-based approach. In fact, the major areas of

concern leading to the drop in ranking of HP Services are related to

dissatisfaction on the counts of routine checks and preventive nature,

responsiveness and availability of service personnel

Laser Printers & MFDs

The overall satisfaction (83.1) of laser printers and MFD users of

enterprises has been boosted by satisfaction on overall product features,

followed by delivery and installation. As per the survey findings, the overall

satisfaction in this segment has been the highest among the government and

education users and the lowest among services users.

In this segment, HP is one of the few examples of vendor satisfaction

performance falling in line with its market share. Even while expanding its

footprint, HPs focus on customer satisfaction has not been diluted, as is

proved by the findings of the CSA-2008 survey. More importantly, the company

maintains a lead over its closest competitor with a good margin. The next in

rank, Canon and Epson (joint second rankers), are 4.3 points away.

Though not with a huge margin,

HP, nevertheless, maintains a clear lead over Canon and Epson in terms of

customer satisfaction in the laser printers and MFD segment. Laser printers

and MFDs is the segment with the third lowest satisfaction score among the

eight segments being surveyed, thereby indicating that its becoming

increasingly tough for vendors to get in sync with the expectations that

their customers have from them

In fact, HP is the only vendor that has performed above the overall industry

satisfaction score and also the only vendor to have upped the industry average

on four of the five satisfaction parameters. The only exception is price and

commercial, where Epson is giving close competition to HP on price

competitiveness. The former slightly edges over the latter on TCO with a score

of 83.9 points as compared to HPs 83.5 points. Epson is again almost at par

with the top ranker on the clarity of pricing contract (Epson81.3 points and

HP81.5 points). But, CIOs perceive HP to be bringing in more value for money on

the table as compared to Epson.

Indian CIOs are giving a lot of importance to factors like timely delivery,

training and hand holding, responsiveness, availability of spare parts,

expertise to resolve problem, and interaction with the service team.

The top of the line in terms of importance is reliability, functionality and

convenience in operation offered by the product. But, features like print and

processor speed dont bother the enterprise users as much as intelligent and

value-added features like toner management, etc. Plain vanilla printing services

are no longer enough to satisfy customers. Theyre expecting their imaging and

printing vendors to provide services like auditing, optimization, etc.

<img border="0" src="https://www.dqindia.com/images08/Las_pr_sati31jan2k8.j</p>;
Advertisment