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

© 2010 Avaya Inc. All rights reserved.2 The Contact Center Market

© 2010 Avaya Inc. All rights reserved. Source: Gartner Group, Calendar 2009 #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 Combined 44% Avaya 37% Nortel 7% Others 22% Genesys 15% Cisco 14% Aspect 5% Worldwide Contact Center Revenue Market Share (ACD Agents) Sources: Gartner Magic Quadrant, Gartner NOTE: Nortel market share data may include LG-Nortel Avaya Leadership in Contact Center 3

© 2010 Avaya Inc. All rights reserved. The Top Customer Service Leaders Choose Avaya 4 The 2010 BusinessWeek Customer Service Champions that chose Avaya* * partial list shown

© 2010 Avaya Inc. All rights reserved.5 Market Dynamics are Changing! The Avaya Vision 5

© 2010 Avaya Inc. All rights reserved. Enabling Effective & Contextual Collaboration Avaya Vision Delivering Communications Enabled Business Systems Powered by Sessions: Open & Standardized 6

© 2010 Avaya Inc. All rights reserved.7 Next Generation Contact Center End to End Experience Management 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 Application Integration Connect & Open the Enterprise Immerse the Agent in the Experience Orchestrate the Experience Manage, Learn, Apply Bring Full Context to Every Session Avaya Contact Center Vision Experience Management

© 2010 Avaya Inc. All rights reserved.8 Fact 1: Demographics are Changing 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 North America: 78m Baby Boomers 80m Generation Y 55m Generation X 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) NEW users have different expectations than traditional segment Baby Boomers: born from 1946 to early 1960s; Gen X: born from 1960s to 1970s; Gen Y: born from 1980s to 1990s

© 2010 Avaya Inc. All rights reserved.9 Fact 2: Interactions are Changing Percent of Respondents Source: Webtorials Editorial/Analyst Division, McKinsey Voice is 2x cost other channels, but other channels have lower customer satisfaction >50% of self service interactions still require a high cost agent 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

© 2010 Avaya Inc. All rights reserved.10 Fact 3: Customer Satisfaction Risks are Increasing 92% of consumers form an opinion about a companys image through their interaction with the Contact Center Source: Benchmark Research, Webtorials Editorial/Analyst Division, Convergsys 73% of Millennials [Gen X & Y] will leave after one bad experience, and 85 percent will tell others about their poor experiences 80% of companies believe they deliver a good/superior customer experience. Only 20% of consumers agree 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 Baby Boomers: born from 1946 to early 1960s; Gen X: born from 1960s to 1970s; Gen Y: born from 1980s to 1990s

© 2010 Avaya Inc. All rights reserved.11 The Next Generation is about … Experience Management Application Integration Connect & Open the Enterprise Immerse the Agent in the Experience Orchestrate the Experience Manage, Learn, Apply Bring Full Context to Every Session Lower TCO Higher Revenue Improved Agility Improved First Session Resolution Improved Customer Satisfaction Increased Flexibility

© 2010 Avaya Inc. All rights reserved. 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? Source: Webtorials Editorial/Analyst Division 64% of respondents rate the importance of real- time customer-specific data as High or Very High 12

© 2010 Avaya Inc. All rights reserved. Evolution to CONTEXT based Enterprise Wide Experience Management Value of any interaction is defined by its context Standalone Voice based Call Centers Distributed Multichannel Contact Centers CONTEXT based Experience Management 13

© 2010 Avaya Inc. All rights reserved.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 Multi Mode BehaviorBehavior Multi Media PresencePresence InstantInstant Experience Management Context Drives a Differentiated Experience CONTEXT Next Gen Customer Care: persistent and seamless real time transfer of customer context and data to the best suited mode (voice, , chat, SMS)

© 2010 Avaya Inc. All rights reserved. Traditional Skills-Based Matching 15 Sales Today = $ 550 Available Sales Today = $ 100 On call Sales Today = $ 50 On call Sales Today = $ 0 On Call Customer Priority = 2 Wait = 25 sec 6 mo rev=$50 Customer Priority = 1 Wait = 5 sec 6 mo rev=$450 Customer Priority = 1 Wait = 25 sec 6 mo rev=$0 Customer Priority = 1 Wait = 32 sec 6 mo rev=$70 Customer Priority = 1 Wait = 40 sec 6 mo rev=$20 Traditional Mapping Most idle agent-> to highest priority customer with longest wait time Traditional Mapping Most idle agent-> to highest priority customer with longest wait time

© 2010 Avaya Inc. All rights reserved. Contextual Skills-Based Matching Example 16 Sales Today = $ 550 Available Sales Today = $ 100 On call Sales Today = $ 50 On call Sales Today = $ 0 On Call Customer Priority = 2 Wait = 25 sec 6 mo rev=$50 Customer Priority = 1 Wait = 5 sec 6 mo rev=$450 Customer Priority = 1 Wait = 25 sec 6 mo rev=$0 Customer Priority = 1 Wait = 32 sec 6 mo rev=$70 Customer Priority = 1 Wait = 40 sec 6 mo rev=$100 Contextual Mapping Best agent today -> to highest priority, highest revenue customer Contextual Mapping Best agent today -> to highest priority, highest revenue customer 10/12 abcd 11/15 xytx 12/10 tyzj 10/12 abcd 11/15 xytx 12/10 tyzj Expert Assist Customer history and todays transaction (context) transfers when expert is called in to help

© 2010 Avaya Inc. All rights reserved.17 Strategy & Innovation

© 2010 Avaya Inc. All rights reserved. The Avaya Aura Contact Center Suite Delivering Experience Management Avaya Aura Performance Center Avaya Aura WFO Avaya Aura Experience Portal Avaya Aura Contact Center Avaya Aura Agent Desktop May 2010 May Avaya Agile Communication Environment (ACE) Avaya Aura Call Center Elite July 2010

© 2010 Avaya Inc. All rights reserved. Automated Experience Management Assisted Experience Management Performance Solutions Portfolio Evolution Midsize Enterprise Large Enterprise 19 Contact Center Express CC 7.1 Interaction Center Voice Portal Avaya Aura Experience Portal Avaya Aura Performance Center, Avaya Aura WFO Avaya Aura Contact Center Proactive Outreach Manager Proactive Contact CMS IQ Call Center Elite/ICR Avaya Aura Call Center Elite/ICR

© 2010 Avaya Inc. All rights reserved. CTI is Getting in the Way of Innovation & Growth 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 VDN Vector Skill Agent Outbound Voice Inbound Voice Offline Work Enterprise CTI & Routing Customer dials Network Pre-Route VRU App – VDN EXIT Point to CM In/Out trunks and VDNs monitored to record calls Basic decisions made on call delivery based on Agent Availability Reporting captures call stats, WFM records agent adherence Im 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 20

© 2010 Avaya Inc. All rights reserved. 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? Source: Webtorials Editorial/Analyst Division 21 Approx half of respondents say up to 25% of data is lost with agent transfers

© 2010 Avaya Inc. All rights reserved. Experience Management Innovation Collaborative Sessions Model (Anchor) ? Session Context Collaborative Sessions Self-Service End Customer Recording Host Data Exchange Customer Specific Data Reporting Insights Agent Assist Expert Assist Analytics and Call Recording feeds customer specific data to SIP string and activates call recording Intelligent Customer Routing based on contextual data from the enterprise with external data queries Relevant Context delivered to Agent during live customer interaction Live and interactive SIP conversations orchestrated throughout contact interaction Live and interactive SIP conversations orchestrated throughout contact interaction End Customer Interaction Session stays anchored at a fixed point 22

© 2010 Avaya Inc. All rights reserved.23 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 Experience Management Innovation Contact Routing to Work Assignment ANI DNIS Other Skills Language ANI DNIS Match to CC KPI Other Skills Language ANI DNIS ACD Skills Routing Business Advocate Work Assignment Expert Presence Customer Intent Customer History Match to CC KPI Other Skills Language ANI DNIS

© 2010 Avaya Inc. All rights reserved.24 Experience Management Innovation Orchestrate The Experience (React to Prevent) Proactively Managing multimedia inbound/outbound automated and assisted care Outbound Voice Text E Mail Customer Inbound Customer Voice Voice Portal SIP Proactive Outreach SIP Self Service Live Agent (as needed) Welcome Aboard Payment Reminder Product Promotion Subscription Renewals Product Support Corporate Directory Ordering and Payments Applications

© 2010 Avaya Inc. All rights reserved. Experience Management Integrating Customer Care into Enterprise Processes Users Interaction is Intelligent, Adaptable & Personalized Communications Infrastructure Protected, Leveraged into New Value Applications Agility, Enhanced Customer Service Intelligent Automation Collaborative Engagement Productive Interaction Avaya Agile Communication Environment (ACE) 25

© 2010 Avaya Inc. All rights reserved. Limited Integration of Enterprise Wide Customer Care How well is your contact center integrated into the rest of your business operations for customer care? 26 Source: Webtorials Editorial/Analyst Division Less than 25% of contact centers are highly integrated with the rest of the business operations for customer care

© 2010 Avaya Inc. All rights reserved. Innovation Improved user experience in Self Service 27 iPhone navigation example Technical Support Type of Issue Basic Troubleshooting Description of Problem

© 2010 Avaya Inc. All rights reserved. Innovation Social Media + 28 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

© 2010 Avaya Inc. All rights reserved. Avaya Social Media Gateway Standard Media Social Networks Web Contact Routing Managed Agents & Experts Scan and process events from social media using existing Avaya Contact Center infrastructure Enterprise Contact Center Inbound Contact 29 Innovation Social Media

© 2010 Avaya Inc. All rights reserved.30 Avaya Aura Contact Center Suite: Updated & New Components

© 2010 Avaya Inc. All rights reserved. The Avaya Aura Contact Center Suite Delivering Experience Management IVRWebChat Automated Experience Management Chat MMS SMS Video XML Web Voice Agent Environment Performance Management Reporting Analytics WFO Assisted Experience Management or CS1000 Avaya Agile Communication Environment (ACE) July Launch 31 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

© 2010 Avaya Inc. All rights reserved. Avaya IQ 5.1 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 Driving call center performance for superior results 32

© 2010 Avaya Inc. All rights reserved. Avaya Aura Workforce Optimization 33 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 data through audio and screen recording Workforce Management automates agent scheduling by forecasting staffing requirements Performance Management: scorecards agents, supervisors, executives, with extensive set of KPI's.

© 2010 Avaya Inc. All rights reserved. Avaya Aura Call Center Elite Enhanced ROI for new and existing customers What is It? New scalability and features for the worlds best selling call center Why does it Matter? Improved flexibility, scalability and performance = Enhanced ROI How does it Work? The worlds largest call center capacity on a single server Business Advocate is now included and allows the contact centers 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 FEATURELIMITS CurrentNew Administered Agents20K30K Concurrent Agents7K10K Agents in Single Skill7K10K Skills / Hunt groups2K8K Skills per Agent60120 VDNs20K30K Vectors of 99 Steps2K8K Policy Routing Tables2K8K PRT Routing Points6K24K Vector Routing Tables Holiday Tables99999 Service Hour Tables99999

© 2010 Avaya Inc. All rights reserved. Avaya Aura Contact Center Unified multimedia customer contact Customers Voice E Mail IM /Chat 35 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

© 2010 Avaya Inc. All rights reserved. Enhanced Agent Productivity 36 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 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 Benefits: Increased agent productivity Improved customer experience using multi- modal interaction between customer and agent

© 2010 Avaya Inc. All rights reserved.37 Multiple Contact Handling Improves Productivity for Capable Agents Contacts will flash to indicate agent action required Number of simultaneous non- voice contacts configurable (1- 5) by supervisor Agent is automatically set to "Ready" while handling voice call, chat or 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 .

© 2010 Avaya Inc. All rights reserved.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 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! 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

© 2010 Avaya Inc. All rights reserved. Avaya Proactive Outreach Manager Customer History POM 2.0 Voice IM /Chat E Mail Customers Dynamic, multimedia customer outreach What is It? New platform for execution of automated outbound voice, , 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! Web XML

© 2010 Avaya Inc. All rights reserved.40 Services

© 2010 Avaya Inc. All rights reserved. Solving Key Customer Concerns 41 Best use of current assets Right size to current market Aggregate and consolidate Audit and optimize Smooth deployments with minimal disruption Best use of current assets Right size to current market Aggregate and consolidate Audit and optimize Smooth deployments with minimal disruption 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 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 Risk Mitigation Increase user productivity Improve end customer satisfaction Focus on growing your business Support your strategy with next level of technology Increase user productivity Improve end customer satisfaction Focus on growing your business Support your strategy with next level of technology Accelerating Businesses Business productivity improvement Professional Services deliver…

© 2010 Avaya Inc. All rights reserved. Comprehensive Avaya Professional Services Approach To Contact Center 42 Discovery Requirements Implementation Design Assurance Optimization Contact Center UC Data Video Operational Business Technical Assisted Experience Automated Experience Performance Management Best practices Benchmarking Stress Testing Technical Auditing Business Auditing Readiness Testing Advisory Services Global Practices & Capabilities New & Enhanced Capabilities >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

© 2010 Avaya Inc. All rights reserved. Advisory Services 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* * Enhanced and Premium Packages only Business Communications Advisory Services Identify improvement opportunities and gain alignment Discovery process to understand needs 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 Technical Advisory Services 43 Validate design against best practices Scope and design roadmap project

© 2010 Avaya Inc. All rights reserved. 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

© 2010 Avaya Inc. All rights reserved.45 Summary 45

© 2010 Avaya Inc. All rights reserved.46 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 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 Summary 46

© 2010 Avaya Inc. All rights reserved. thank you

© 2010 Avaya Inc. All rights reserved.48 Backup

© 2010 Avaya Inc. All rights reserved. Application Integration Connect & Open the Enterprise The Path to Next Generation Sample Customer Roadmap 49 Immerse the Agent into the Experience Orchestrate the Experience Manage, Learn, Apply Bring Full Context to Every Session Customer: Large Insurance Company 4000 Agents CC Elite, CMS, AES, IP Agent FCE rollout in progress Problems: Now - Cost management - Flexibility to deliver new services - Silos experience 6-12 Months - Agent efficiency and productivity 12 Months Plus - Service centralization - End-to-end experience management Recommended Roadmap: Now… 1 1 Avaya Aura Lower TCO Service delivery readiness 2 2 Avaya Voice Portal Lower TCO Improved First Contact Res. 3 3 Avaya Aura WFO Agent efficiency, productivity 6-12 Months… Avaya Aura CC Improved FCR Customer Sat Dialog Designer & Avaya ACE Business Process Optimization 6 6

© 2010 Avaya Inc. All rights reserved. Avaya Contact Center Customers 50 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.

© 2010 Avaya Inc. All rights reserved. Avaya Contact Center Customers 51 CPS Energy Challenges: Improve productivity in the contact center, offload agents, ensure business continuity, establish proactive outreach, maintain high customer satisfaction Solution: Self-service automation with Proactive Outreach End result: Enhanced productivity and better customer service - although traffic has increased 11%, calls to agents decreased by 10% Prometric Challenges: Reduce overhead of Genesys Voice Portal, enhance survivability, lower costs, address complex range of client needs Solution: Automated self-service, consolidation, outbound app to remind customers of bill, robust reporting that flags issues instantaneously End result: Annual savings of $23K on IVR alone; simple change that took half hour with Genesys reduced to less than one minute with Voice Portal. Enhanced productivity, efficient staffing, immediate response to problems