Key Performance Indicators – Strategy Execution

Area KPI Why and What is measured? Quarter status

Ensure transformation of BDGS Applications turning Cloud Native by Application PRAs for 2019 delayed as 5G Core PRA
Cloud Native the end of 2020. The KPI applies to all current ’Keep’ or ’Double down’ dates adapted to customer expectations plus ADP
roadmap products in the BDGS portfolio as well as all new products by implementation challenges (technical and new way of
measure # of Cloud Native products working) . EY target 2019 still viable
Q2 actuals not stated as number of measurable
Develop

products were to low. Included products are Focus

Ensure BDGS meets market expectations by measuring the ability to
Roadmap Group (35). 2/7 PDUs are not reporting. The KPI is
deliver ‘available for marketing’ functionality according to Roadmap
predictability also under review as current measurement is
plans by measure % functions on time as planned
questioned to reflect customer and MA experience in a
good way.
Ensure BDGS increase automation and industrialization that enable
Below quarterly target. Improvement needed within
SW delivery lower cost of service delivery, faster feedback loops and lower TCO
product readiness. Very good traction in customer
automation for our customers by measure number of customer and products
engagements.
using automated SW delivery
To maximize software value and establish growth of software Slightly above plan and continued strong trend.
Recurring revenue maintenance and customer support recurring revenue by measure % Customer support ahead of target with a strong sales
of end year recurring revenue target (and OB) in all MAs.
Sell

Gradual transition of the revenue from native telecom product portfolio

Slightly below plan. Rolling 12 months sales of the
towards Cloud-native and 5G ready portfolio is a critical indicator of
New portfolio growth new portfolio increased by 13%, driven by customer
Digital Services portfolio transformation and success and is measured
investments in 4G and 5G.
by % growth year over year
Deliver

Service Delivery Ensure that BDGS meet the right-shoring objectives which impact Below plan and a slightly increasing trend due to more
blended cost customer project cost by measure blended cost per hour. usage of costly MA local resources.

Finalize challenging Ensure finalization of identified critical and bad bank projects in line According to plan. EY target is reachable but there are
ERATORC Tord Cederkäll | 2019-09-11 | Ericsson Internal | Page 1
projects with external communication by measure # of projects many uncertainties and risks to be mitigated.