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Verizon Hosted IP Telephony and UCaaS Award Write Up
1.
2017 North American Hosted
IPTelephony and UCaaS Product Line Strategy Leadership Award
2.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2017 2 “We Accelerate Growth” Contents Background and Company Performance ........................................................................3 Industry Challenges..............................................................................................3 Product Line Strength and Customer Impact............................................................4 Conclusion.........................................................................................................12 Significance of Product Line Strategy ..........................................................................13 Understanding Product Line Strategy Leadership..........................................................13 Key Benchmarking Criteria ..................................................................................14 Best Practices Award Analysis for Verizon....................................................................14 Decision Support Scorecard .................................................................................14 Product Line Strength .........................................................................................15 Customer Impact ...............................................................................................15 Decision Support Matrix ......................................................................................16 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices .................................................................................................................17 The Intersection between 360-Degree Research and Best Practices Awards.....................18 Research Methodology ........................................................................................18 About Frost & Sullivan ..............................................................................................18
3.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2017 3 “We Accelerate Growth” Background and Company Performance Industry Challenges A growing number of businesses around the world are launching digital transformation projects to improve operational efficiencies and better address evolving customer demands. As part of broader transformational initiatives, businesses are moving various software workloads to the cloud to become more agile and responsive. Communications solutions are often a critical part of cloud migration strategies, driving demand for hosted Internet protocol (IP) telephony and unified communications as a service (UCaaS). Businesses adopting cloud communications challenge providers with a diverse set of technology requirements. Business size, among other factors, often determines customer purchasing criteria and investment priorities. Limited budgets and IT resources dictate investment decisions among small businesses. Price, bundled offerings, as well as ease of use and management are top concerns for small businesses with busy, multi-tasking employees. Medium–size businesses are often budget-conscious, but tend to evaluate cloud solutions more holistically, from a total cost of ownership (TCO) point of view. Solution reliability and support also play an important role in medium-business technology investment decisions. Cloud solution and provider selection criteria change significantly with larger, distributed organizations. Such customers typically operate complex multi-vendor communications environments which require considerable planning and expense to migrate to the cloud. Large businesses often choose hosted IP telephony and UCaaS solutions that support customization and flexible integration with existing premises-based and cloud solutions, and allow the possibility to deploy hybrid cloud/premises-based architectures. They also often present more stringent security and industry compliance requirements, particularly in the government, healthcare and financial services industries. Few hosted IP telephony and UCaaS providers today cater to the full spectrum of business sizes and communications solution requirements. Over the years, most providers have focused on certain customer segments in which they can offer the greatest benefits. The majority of early hosted IP telephony providers have gained significant share in the under- served small-business customer segment, where the need to reduce CAPEX has driven strong demand for cloud solutions. A growing number of providers are looking to penetrate the medium-size and large customer segments to scale operations and improve customer retention rates. Many providers are also developing solutions for specific customer profiles such as entrepreneurs and highly mobile users who are severing the cord with desktop communications and using mobile devices as their primary endpoints. As the North American hosted IP telephony and UCaaS market matures and the competitive landscape increasingly consolidates, provider portfolio breadth and depth will become increasingly important. Providers with differentiated offerings for small, medium and large businesses can grow more rapidly and better leverage varying demand trends in
4.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2017 4 “We Accelerate Growth” different customer segments. Additional services, including session initiation protocol (SIP) trunking, multi-protocol label switching (MPLS), as well as professional and managed services enable providers with robust UCaaS portfolios to deliver even greater value to their customers. Product Line Strength and Customer Impact Verizon stands out among competitors with its broad hosted IP telephony and UCaaS portfolio catering to the diverse North American business market. A pioneer in the hosted communications and voice over Internet protocol (VoIP) space, Verizon constantly evolves its next-generation services portfolio to address ever-changing customer demands. Through a visionary strategy and effective execution it has established itself among the top four North American hosted IP telephony and UCaaS providers in terms of installed users. Breadth of Product Line Verizon was one of the first telecom carriers in North America to launch VoIP services in the early 2000s and has since then expanded its product line to satisfy different customer segments’ distinct communications requirements. Verizon’s original Hosted Internet Protocol Centrex (HIPC) offering gained significant traction over the years and enabled Verizon to develop considerable VoIP and hosted communications expertise. Verizon HIPC leverages the provider’s access network services and significant engineering resources to deliver highly reliable hosted solutions for businesses migrating to the cloud. Launched in 2012, Virtual Communications Express (VCE) is designed for small and medium-size businesses (SMBs). Its flexible cloud architecture allows Verizon to deliver services over the public Internet and to integrate its communications applications with third-party software such as Google G Suite. Verizon Unified Communications and Collaboration as a Service (UCCaaS) based on the rich Cisco Hosted Collaboration Solution (HCS) feature set and multi-instance architecture caters to mid-market and large-enterprise customers demanding greater security and customization. Dedicated hosted solutions leveraging Avaya and Microsoft Skype for Business infrastructure provide additional options to businesses with more stringent requirements that are looking for custom-tailored communications solutions managed by an expert third party. Most recently launched, Verizon One TalkSM is a truly innovative mobile UCaaS solution delivered by the Verizon Wireless division. Uniquely positioned as a mobile-first offering, One Talk is designed for highly mobile professionals and is suited for businesses that have already adopted mobile-only communications or are planning to do so in the future. A broad voice, data and video services portfolio including SIP trunking, web collaboration (e.g., Cisco WebEx and Spark), MPLS, wireline and mobile communications, as well as managed and professional services complement and enhance the value of Verizon hosted
5.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2017 5 “We Accelerate Growth” IP telephony and UCaaS offerings. Overall, Verizon is strongly positioned with one of the most comprehensive business services portfolios in the North American market. Scalability and Features Business technology investment criteria vary in terms of communications and collaboration feature sets, security levels, terminals, and types of architecture. Most providers have traditionally focused on certain customer segments and their specific requirements. In fact, the majority of hosted IP telephony solutions available today have been designed to appeal to small and medium-size businesses. In spite of the large number of market participants, choices have been limited over the past decade, restraining market adoption. Not so with Verizon. Verizon’s diverse hosted IP telephony and UCaaS services portfolio allows customers to choose the type of solution that best fits their needs. From the simple, intuitive design of Verizon One Talk to the comprehensive applications stack of Cisco-based UCCaaS, the provider’s offerings comprise compelling feature sets tailored for different customer and user types. Each solution is positioned to address specific customer objectives and pain points without compromise. Verizon One Talk bridges the gap between mobile devices and business-grade telephony services. One Talk enables users to access UC services on their mobile devices, an office desk phone or a combination of the two, based on their preferences, tasks and environments. For Verizon Wireless customers, One Talk also features integration with the mobile device’s native dialer, allowing users to easily make business calls without the need to download a soft client and launch an app each time they dial a number. For businesses with flexible bring your own device (BYOD) policies, employees can also utilize their personal device, regardless of mobile carrier, and access the same set of UC features with a simple app download. For users with both mobile and desktop phones, One Talk provides a truly integrated mobile and office experience, with one-number reach across both devices. Office-bound employees can choose from a broad selection of desk phones, ranging from entry-level models with basic functionality to premium video-enabled devices. For highly mobile users, One Talk provides a mobile-only experience that can be tied to the business line rather than a mobile number. When needed, seasonal and temporary workers can also be assigned a business number that functions alongside their existing mobile number. HIPC is Verizon’s most mature product for the hosted IP telephony and UCaaS market. The cost-effective solution has resonated well with small and medium-size businesses, but can support customers of nearly any scale. It delivers a range of capabilities such as private branch exchange (PBX), voice and unified messaging, auto attendant, presence, conferencing, Web-based portal access, and more. Typically bundled with Verizon MPLS or Verizon Internet Service, HIPC offers high availability, reliability, and quality of service (QoS).
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Frost & Sullivan 2017 6 “We Accelerate Growth” VCE was launched in response to customer demand for greater simplicity and speed in service provisioning and management. Based on BroadSoft’s latest platform and its most advanced capabilities, VCE targets primarily the mid-market. Though similar in functionality to HIPC, VCE offers greater customer value through simplified and accelerated service deployment. Customers can subscribe to the service and have it operational within five to seven business days with minimal involvement of Verizon engineers or support staff. A set of self-provisioning and other tools reduces implementation costs for both Verizon and customers deploying VCE. Although the service was designed for plug-and-play installation, customers can turn to dedicated Verizon support staff for assistance. VCE offers additional benefits including an enhanced customer portal and integrations with popular third-party solutions such as Google G Suite. Google G Suite productivity applications users can download a VCE plugin from the G Suite Marketplace and enable click-to-call from within Gmail, and Google Calendar. Furthermore, Verizon allows VCE customers to deploy the service “over the top”—over any broadband connection. A probe installed at the customer’s site enables Verizon to monitor the quality of the broadband connection and take corrective action ensuring maximum service quality. This capability is particularly valuable to clients with existing broadband contracts with other providers or those that wish to shop around for the best price. Designed specifically with large, distributed organizations in mind, Cisco HCS-based UCCaaS enables Verizon to target the high end of the market which has been most hesitant to move its voice infrastructure to the cloud. The multi-instance, virtualized UC platform allows multiple businesses to share the same hardware infrastructure to provide Verizon and customers with significant cost savings. Dedicated software instances, on the other hand, address customer security concerns and enable Verizon to deliver greater customization feature, functionality and billing customization by business site or department. The UCCaaS offering allows Verizon to cost-effectively migrate customers with existing investments in Cisco infrastructure and devices to cloud services. Such businesses can continue to use their existing endpoints with the new service and deploy hybrid (cloud and premises-based) architectures as a temporary or permanent solution. Customers can also take advantage of tighter integrations with other Cisco cloud applications such as WebEx, Jabber, Spark and TelePresence, as well as integrations with a large variety of third-party premises-based platforms and applications. Verizon hosted and managed services support both Microsoft Lync 2013 and Skype for Business Server 2015 platforms in private cloud deployments. The offerings deliver a broad set of capabilities including IM, presence, point-to-point and multiparty audio, video and web conferencing, collaboration, PSTN dial-in and dial-out, enterprise voice, and PBX and application integration. Verizon enables integration with Office 365, Exchange Unified Messaging, SharePoint, Skype for Business Online as well as third-party solutions. Across Verizon’s hosted IP telephony and UCaaS solutions, businesses have a choice of feature sets, architectures (dedicated, multi-instance or multi-tenant), connectivity
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Frost & Sullivan 2017 7 “We Accelerate Growth” (private lines with MPLS or public broadband), endpoints (mobile or desktop phones, mobile or desktop soft clients), and more. All services are either available globally or support international users as part of US deployments. Overall, Verizon’s hosted IP telephony and UCaaS portfolio scales to address the entire spectrum of North American businesses. Technology Leverage Verizon leverages industry-leading platforms and technology partnerships to support its robust hosted IP telephony and UCaaS portfolio. Verizon HIPC, VCE and One Talk are all based on BroadSoft BroadWorks, the industry’s most widely deployed multi-tenant platform. Through a comprehensive UCC feature set, carrier-grade quality, reliability, and security, and a choice of architecture and deployment models, BroadWorks provides service providers and end customers with a compelling alternative to legacy telco services and premises-based solutions. Several tightly integrated platform network elements enable high levels of service reliability. As a standards-based platform using common protocols (such as SIP) and open interfaces, BroadSoft enables Verizon and third-party application developers to quickly and easily launch new services and applications, and thus promptly respond to evolving customer needs. BroadSoft system functionality is distributed across multiple servers for optimized performance and to meet IP multimedia subsystem (IMS) specifications. BroadSoft’s extensive communications and collaboration feature set includes: • Rich business telephony including extension dialing, call park, and hunt groups • Voicemail and unified messaging • Attendant and auto attendant • Multi-channel contact center • Audio, web and video conferencing • Mobility (single business number service for incoming and outgoing calls on mobile devices) • Enterprise instant messaging (IM)/ chat and presence • Collaboration (file sharing, desktop sharing) BroadSoft’s platform also supports integration with third-party business applications, including leading customer relationship management (CRM) (Salesforce, Sugar CRM, etc.), messaging (Microsoft Outlook, Gmail, IBM Notes, etc.), and vertical business applications (eAgent, Clio, etc.). Available APIs allow service providers, customers and third-party
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Frost & Sullivan 2017 8 “We Accelerate Growth” technology developers to integrate BroadSoft technology-based services with various custom applications for ultimate flexibility and value. Verizon UCCaaS is based on HCS, Cisco’s flagship solution for the hosted IP telephony and UCaaS industry. The robust feature set enables Cisco partners such as Verizon to support continually evolving customer communications needs. At the heart of HCS is a virtualized, multi-instance version of Cisco’s leading IP telephony solution, Unified Communications Manager (UCM). A mature and proven platform, Cisco UCM is established as one of the most advanced call-control platforms in the market. Like UCM, HCS supports Cisco Unity Connection (for voice and unified messaging), Cisco’s entire endpoint portfolio including IP phones, TelePresence and Jabber (a UC client application for Windows, iOS, Android, and Blackberry, which provides presence, IM, voice, HD video, voice messaging, desktop sharing and conferencing), Cisco Unified Mobility (for Nokia, iOS, and Android clients), Cisco WebEx Meeting Center, and Cisco Unified Enterprise Attendant Console. Cisco also offers Contact Center for HCS, as well as enhanced mobility, including VPN-less access for Jabber users and native mobility features such as single-number reach and clientless network-based fixed-mobile convergence (FMC) options. Cisco Spark provides additional options for UCaaS customers to add advanced messaging and collaboration capabilities to their HCS-based services. Spark Hybrid services help ensure tight integration and strong synergies between Spark and other Cisco technology investments. More specifically, Hybrid Call Services integrate customers’ existing Cisco call control solutions with the Cisco Spark service. Thus businesses can use the Cisco Spark app as a mobile soft client for voice and video calling, enable instant desktop sharing for Cisco Spark users on the same call, and access call history from on-premises phones through the Cisco Spark client. Hybrid Calendar and Hybrid Directory services are also available. Partnerships with Avaya, Microsoft and other technology vendors enable Verizon to deliver dedicated hosted services, as well as premises-based solutions to business customers. Price/Performance Value Verizon’s hosted IP telephony and UCaaS solutions provide compelling feature sets at competitive prices tailored for the respective customer segments. With their extensive functionality and high reliability Verizon’s services deliver excellent value to businesses moving their communications to the cloud. Pricing of Verizon HIPC and dedicated hosted solutions (based on Avaya or Microsoft infrastructure, for example) depends on the specific solution design, as these implementations typically involve custom engineering. Verizon’s other hosted IP telephony solutions are offered at standard pricing ranges and varying discounts based on volume and other factors.
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Frost & Sullivan 2017 9 “We Accelerate Growth” Verizon One Talk only includes the most essential set of business telephony, voice messaging and basic video calling functionality in the standard package, rather than attempting to deliver every application in the unified communications stack. An all- inclusive bundle with just a few a-la-carte features enables effortless purchasing and provisioning. Priced at $25 per user per month, Verizon One Talk is a compelling solution for mobile professionals. Verizon offers two types of VCE feature bundles based on two user types as follows: • Standard User provides basic telephony features such as voicemail, call forwarding, 3-way calling, caller ID, etc., plus access to a Web-based interface for additional enhanced features such as scheduled call forwarding and Call Blast (an incoming call rings a number of devices simultaneously, also known as “simultaneous ring). Standard user bundles also require purchase of sufficient trunks to support the expected call volume. A Standard User seat is priced at $13 per user per month (excluding calling minutes). • Premier User provides all the capabilities of Standard User, plus: a Mobile client , tablet client and a Softphone client. In addition, instant messaging enables Premier Users to chat with other Premier Users, see the status of other Premier Users (i.e., Busy, Available, On a call, In a meeting), or share what is displayed on their desktop through a web browser. Premier Users also have a dedicated instant meeting audio conferencing bridge, as well as the ability to do video conferencing via the clients. A Premier User seat is priced at $35 per user per month (including unlimited local and domestic long distance calling minutes). Both options are available with bundled phones with a minimum three-year commitment. Verizon UCCaaS is available with a similar pricing structure with bundles designed to fit the following user profiles: • Essential (call control) • Caller (Essential + presence/IM (Jabber) with telephony integration (includes Expressway) • Information Worker (Caller + voicemail) • Knowledge Worker (Information Worker + one more endpoint) • Power User (full feature set) UCCaaS prices and discounts vary based on customer size and features deployed. User seats can be priced as low as $7 per user per month (Essential User) or $15 per user per month (Power User), excluding calling minutes. In the mid-to-large enterprise customer segment, roll-out plans and number of locations are key factors impacting price. In
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Frost & Sullivan 2017 10 “We Accelerate Growth” addition, in a large user-group contract, HCS is typically part of a total solution including network connectivity and voice services. Public sector customers can take advantage of an additional 15 percent discount on user seat prices. Overall, Verizon services prices compare favorably to competitor offerings and provide a range of options to adopting customers. Customer Purchase Experience Verizon provides convenient purchase options for its hosted IP telephony and UCaaS solutions. HIPC is primarily marketed and sold through Verizon direct sales staff as it requires a certain degree of customization and involvement of an expert sales engineer/architect. The approach enables Verizon to retain full ownership of HIPC deployments and ensure greater service quality. VCE, on the other hand, was designed as a plug-and-play solution that enables more efficient sales and provisioning. It is marketed by phone and online channels as well as Verizon’s large channel partner network. The majority of VCE resellers are traditional telecom value-added resellers (VARs) and agents with considerable expertise in managing voice services and deliver additional value to businesses deploying Verizon solutions. Verizon UCCaaS is a more complex solution and is therefore marketed primarily through Verizon’s direct salesforce. Typically, UCCaaS implementations involve customization and integration with other customer technologies and solutions, which requires the involvement of a qualified Verizon sales person and engineer. Also, because of the more comprehensive portfolio of Cisco solutions marketed along with HCS, including Cisco Jabber and WebEx, Verizon UCCaaS requires a more consultative approach whereby qualified sales agents take into consideration prospective customers’ business objectives and specific technology preferences. UC specialists, emerging technology consultants, and product design and implementation experts typically take part in UCCaaS sales and implementation. Verizon UCCaaS services are available in Europe and Asia-Pacific, and the provider is in the process of extending its services through partners. It has made significant investments in back-end systems and processes to enable efficient ordering, quotes, and provisioning in different currencies and contracting models in various regions of the world. Verizon Customer Success and Adoption Services deliver considerable value to more complex hosted IP telephony and UCaaS deployments. Established in June 2016, the Customer Success and Adoption Services team provides user education and training services as well as usage analytics to ensure broader service adoption and more effective utilization throughout the customer organization. These value-added services are currently delivered free of charge and have been very well received by businesses adopting Verizon hosted IP telephony and UCaaS solutions.
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Frost & Sullivan 2017 11 “We Accelerate Growth” Provided by Verizon Wireless and tailored for entrepreneurs and small businesses, Verizon One Talk is marketed as a low touch solution, which is distinct from all other Verizon hosted IP telephony solutions. Unlike competitors looking to enable mobile device support as an add-on to their hosted solution deployments, Verizon is positioning One Talk as means of bringing a layer of important business telephony features to existing mobile devices. As a service offered by Verizon Wireless, rather than its large customer-focused Enterprise Solutions division, small businesses can get information and subscribe to One Talk at Verizon retail outlets. Through high visibility in its 1,600 retail stores, Verizon has the opportunity to present One Talk to customers in a new and unique way that is difficult for competitors to replicate. Beyond retail, small businesses can also work with one of Verizon’s 1,800 business-to-business (B2B) sales representatives, visit one of more than 300 SMB-focused stores, or contact any of Verizon’s 2,400 channel agents. Beyond Verizon’s own devices, the One Talk mobile app extends support to other Android and iOS mobile devices. Users can access One Talk on Verizon’s network, competitor wireless networks or WiFi, on their own device, with dual personas (personal and business) on BYO devices. At a billing level, One Talk user subscriptions are treated nearly the same as wireless subscribers. One Talk numbers are assigned from a Verizon Wireless number pool, making it easier to migrate to a mobile-only option if a customer needs a change. Additionally, Verizon merges One Talk users and wireless lines onto a single bill. Not only does this make it convenient for customers, it can also raise small businesses into a higher-level account plan that provides better corporate discounts. For new customers, the three-step purchase process is a similar experience to ordering wireless service. First, Verizon works with the customer to define an overall corporate plan based on the total number of lines. Next, customers choose what devices (smartphones, desk phones, or a combination of both) will be assigned to each user. Finally, optional features such as auto attendants and hunt groups are applied. Existing Verizon Wireless customers can simply add One Talk to their current corporate plan, purchase desk phones, if needed, and quickly be off and running. In this way, One Talk is a departure from how many hosted UC services are offered to the market today. Brand Equity Verizon is truly a household brand in North America. With a long track record in delivering a diverse portfolio of feature-rich, reliable and secure communications solutions to both residential and business customers, Verizon has gained a leading mindshare among investment decision makers. Verizon’s strong brand enables the provider to more easily secure a spot on customers’ hosted IP telephony and UCaaS evaluation lists and often impacts final purchasing decisions.
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Frost & Sullivan 2017 12 “We Accelerate Growth” Conclusion With One Talk, VCE, HIPC, and UCCaaS, Verizon addresses the needs of very small to very large organizations. It can deliver a cost-effective package for those looking for only basic functionality as well as a feature-rich UCaaS solution for businesses where communications are mission-critical. Also important, Verizon can cost-effectively bundle hosted solutions with its MPLS, broadband or SIP trunking services to ensure superior service quality and reliability. With its strong overall performance, Verizon has earned Frost & Sullivan’s 2017 Product Line Strategy Award.
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Frost & Sullivan 2017 13 “We Accelerate Growth” Significance of Product Line Strategy Ultimately, growth in any organization depends upon customers purchasing from a company and then making the decision to return time and again. A full, comprehensive product line that addresses numerous customer needs and preferences is, therefore, a critical ingredient to any company’s long-term retention efforts. To achieve these dual goals (customer value and product line strength), an organization must be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding Product Line Strategy Leadership As discussed above, driving demand, strengthening brand, and differentiating from the competition all play a critical role in delivering unique value to customers. This three-fold focus, however, must ideally be complemented by an equally rigorous focus on building a superior and comprehensive product line.
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Frost & Sullivan 2017 14 “We Accelerate Growth” Key Benchmarking Criteria For the Product Line Strategy Leadership Award, Frost & Sullivan analysts independently evaluated two key factors—Product Line Strength and Customer Impact—according to the criteria identified below. Product Line Strength Criterion 1: Breadth Criterion 2: Scalability Criterion 3: Technology Leverage Criterion 4: Features Criterion 5: Supply Chain Reliability 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 Best Practices Award Analysis for Verizon 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 Product Line Strength and Customer Impact (i.e., These are the overarching categories for all 10 benchmarking criteria; the definitions for each criterion 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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Frost & Sullivan 2017 15 “We Accelerate Growth” 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 participants as Competitor 2 and Competitor 3. Measurement of 1–10 (1 = poor; 10 = excellent) Product Line Strategy Product Line Strength Customer Impact Average Rating Verizon 9.9 9.7 9.8 Competitor 2 9.9 9.3 9.6 Competitor 3 9.1 8.9 9.0 Product Line Strength Criterion 1: Breadth Requirement: Product line addresses the full range of customer needs and applications. Criterion 2: Scalability Requirement: Product line offers products at a variety of price points and functionality levels. Criterion 3: Technology Leverage Requirement: Demonstrated commitment to incorporating leading-edge technologies into product offerings results in greater product performance and value. Criterion 4: Features Requirement: Products offer a comprehensive suite of features to serve customers at multiple levels of functionality, ease of use, and applications. Criterion 5: Supply Chain Reliability Requirement: There is sufficient control over the supply chain to ensure availability of key components and thereby the availability of products in the product line. 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 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.
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Frost & Sullivan 2017 16 “We Accelerate Growth” Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty. Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts 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. High Low Low High CustomerImpact Product Line Strength Verizon Competitor 2 Competitor 3
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Frost & Sullivan 2017 17 “We Accelerate Growth” Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards 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 of 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 recipient Decision on which company performs best against all best-practice criteria 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 Upon licensing, company is able to 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
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Frost & Sullivan 2017 18 “We Accelerate Growth” 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 participants and for identifying those performing at best-in-class levels. 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 more than 50 years of experience in partnering with Global 1000 companies, emerging, businesses and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS
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