Ibm social uc roi elements jan2012

IBM Collaboration Solutions Social UC ROI Elements

SOCIAL UC ROI ELEMENTSExploring Return On Investment Scenarios

Inspired By IBM’s Social Unified Communications

January 2012

By Thierry Batut

Program ManagerUnified Communications

South West Europe

IBM Software GroupIBM Social Business and Collaboration Solutions Software

Contact: [email protected]

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Table of ContentsIntroduction......................................................................................................................................................................4UC and Social Business: More in Common Than You Think........................................................................................... 5

Social business delivers real business value..............................................................................................................5Why Social Business and Unified Communications are linked?................................................................................. 5

Why companies need to think about Unified Communications & Collaboration?...........................................................10Communications Enables Business Processes & Applications.................................................................................11

The business value of implementing a UC² strategy - the analyst view......................................................................... 12ROI examples from customers using IBM Sametime................................................................................................... 15ROI Elements – two case studies..................................................................................................................................17

‘CarParts’ - the Workplace for Change..................................................................................................................... 17IBM, the Sametime ROI story................................................................................................................................... 20

Green Computing ROI................................................................................................................................................... 22Customer Contact Center ROI.......................................................................................................................................23Video Communications ROI.......................................................................................................................................... 28

VIDEO is ready for business.....................................................................................................................................29BYOD is changing the game.................................................................................................................................... 30What about real ROI?...............................................................................................................................................32Desktop Video ROI from IBM................................................................................................................................... 33

Sametime Unified Telephony ROI..................................................................................................................................34Call to action and conclusion......................................................................................................................................... 37Resources for further exploration.................................................................................................................................. 38Sources......................................................................................................................................................................... 39

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IntroductionBy now there is sufficient and independent evidence that there is an ROI on Unified Communications and Collaboration or UC². The objective of this paper is to explore how customers realize cost savings and revenue gains from implementing and integrating with Social Business strategies. We will explore which ROI and TCO categories are responsible for the largest contribution either in savings or revenue gain. By doing this we want to inspire you to think about how your company can benefit from Unified Communications.

More often than not ROI discussions are either far too generic to be believable – “product X increases productivity” - or over optimistic - “product Y will reduce travel costs with 75%”. In contrast, this discussion is infused with real examples of actual benefits observed in businesses all over the world.

The objective is not to discuss Unified Communication products or features, nor are we talking about IP and Converged Networks. This is about the Social Collaborative Desktop and its positive impact on business. Asking ‘What is the ROI on UC?²’ is a valid but too broad a question. We break it down into measurable ROI elements.

We will start with a short overview of IBM Social UC in the context of global trends and organizational developments. We'll review expert opinion by market analysts. After that we will dive straight into concrete business examples. Next we will perform a deep dive into ROI benefits with two case studies – an automotive parts company and IBM. Video and Telephony have their own unique benefits and we will review various aspects of these solutions. One area of business is very conducive to 'ROI elements', namely Customer Contact Centers. This paper would not be complete without mentioning Green Computing especially as IBM is considered a leader in this space.

The ROI categories we review are the key elements we encounter when talking about the value of Social UC. The customer examples are based on real-life experience. Of course each client situation will have a somewhat different set of capabilities and benefits.

We have found very similar results in all of our use cases. The following 6 categories or ROI Elements have consistently delivered ROI and/or cost reductions for customers:

1. Process optimization2. Communications3. People Productivity4. Access to knowledge & information5. Competitive Advantage6. Travel

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UC and Social Business: More in Common Than You Think

Social business delivers real business value

Becoming a social business requires a long-term, strategic approach to business culture, executive leadership, an effective corporate strategy, and organizational ability to recognize and design for transformation.

Organizations that successfully transform into social businesses are enabled by an optimized workforce, intelligent sales, strengthened operational controls, increased product and service innovation, and deepened customer care and insight.

The results from those already on the journey to becoming a social business show:

• 90% of respondents report measurable business benefits from Web 2.0 tools, including better access to knowledge, lower costs of doing business, and higher revenues (McKinsey Global Survey 2010)

• Standout organizations are 57% more likely to allow their people to use social and collaborative tools (IBM CHRO Study 2010)

Why Social Business and Unified Communications are linked?

New social models are changing the way businesses operate but social interactions tend to be asynchronous. Unified Communications makes it possible assemble the team, regardless of location and make a decision.

A social business becomes engaged, transparent and nimble by activating networks of people to apply relevant content and expertise to improve and accelerate how work gets done. Unified communications (UC) is a critical component of your strategy to become a social business because UC provides an immediate and cost-effective way to take action across your extended organization. IBM Sametime software is IBM’s platform for unified communications and collaboration. It provides a core set of synchronous (real-time) communication services that make it easier to find,

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reach and collaborate with colleagues, customers and business partners.

IBM Business Card is providing both Social Business

and leverage Sametime status and capabilities

Sametime software offers the following features:

• Rich presence helps you easily and quickly find the people you need through online status, availability, automatic location awareness and available telephony status.

• Security-rich, enterprise class instant messaging can reduce phone and voice mail costs while providing an unobtrusive way to engage with colleagues who are otherwise unavailable.

• Online meetings with audio and video conferencing help reduce travel and enable remote workers to engage with their colleagues.

• Integrated Voice over Internet Protocol (VoIP) and high-quality desktop video deliver a more interactive, collaborative experience and lower telephony costs. Bandwidth management tools make rich media collaboration feasible by constraining overall audio and video bandwidth in your network, leaving bandwidth available for mission-critical applications.

• Community collaboration can save you hours by making it possible for you to find and interact with experts in the organization you didn’t even know and keep in touch with customers, partners, family and friends.

• Mobile device support gives you access to people and information even when you are on the road.

• Out-of-the-box integration with IBM Lotus, IBM WebSphere and other IBM software as well as Microsoft products quickly adds collaboration to the products people use most often, promoting adoption.

• Open application programming interfaces (APIs) and an extensible client provide communications capabilities to users wherever they work, improving productivity.

• Optional one-number phone service, softphone and call management capabilities deliver next- generation voice capabilities through your existing telephony infrastructure.

Sametime software delivers these services, and because Sametime software embraces open standards, it also delivers services from hundreds of IBM Business Partners through a unified user experience. Moving among text chats, voice and video calls, and online meetings is seamless to the user and driven by what is most effective for the task at hand.

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IBM Sametime is bringing real-time interactions

Sametime software-based unified communication and collaboration solutions typically pay for themselves in less than a year based on hard-cost savings alone. Our clients have been able to:

• Minimize travel costs for internal meetings and reduce travel for external meetings.

• Reduce or eliminate expensive monthly subscriptions to hosted web conferencing services.

• Slash their telephony costs by shifting calls to text, voice chats or VoIP phone calls through Sametime software.

• Avoid exorbitant cell phone roaming and hotel access charges on international trips.

• Lower call center costs by chat enabling customer service sites.

• Save on infrastructure costs by opting for low-end Internet Protocol (IP) phones with Sametime software instead of high-end devices.

• Postpone expensive PBX migrations.

• Lower maintenance and real estate costs by enabling staff to work from home.

• Reduce telephony costs for remote employees,(for example, eliminating second phone lines for home offices).Lower audio conferencing costs through in-house, ad hoc conferencing.

• Eliminate the need to pay for third-party softphones and the connection fees associated with these softphones.

Of course, the real power of unified communications is in its productivity gains. Human latency is the time we lose waiting waiting as we identify others who can answer questions, waiting for email or voice mail to be returned, waiting while teams get organized to tackle a project. Human latency leads to lost sales, unhappy customers and decisions based on inaccurate or incomplete information. With Sametime software-based unified communication and collaboration solutions, our clients have:

• Spent less time trying to find people who can answer questions and more time being productive.

• Lowered customer service and help-desk costs by more effectively resolving issues.

• Driven more sales by speeding approvals and answering customer questions faster.

• Speed project completion across dispersed teams.

• Provided better employee work-life balance through the ability to work virtually anywhere.

• Acquired better talent by removing location as a limiting factor.

• Evolved a more collaborative culture across teams around the world or on different floors of the same building.

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IBM Sametime integration supports both MS Outlook, MS Office and MS Sharepoint

Social software solutions are becoming a bigger part of the tool set for today's companies. A report from analyst IDC states that worldwide revenue for the social platforms market was US$369.7 million in 2009, representing growth of more than 55 percent. Gartner predicts that "by 2014, social networking services will replace e-mail as the primary vehicle for interpersonal communications for 20 percent of business users."

According to an IBM survey, 98 percent of CEOs need to restructure the way their organizations work. Over five hours is wasted per employee per week due to inefficient processes. Two hours is spent per employee per day looking for the right information and expertise within an organization.

IBM Sametime is providing Social Business real-time interactions and accelerate the ROI.

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For companies using... Sametime software's built-in integration

IBM Lotus Notes and IBM Lotus Domino

• Online awareness and enterprise instant messaging for any Lotus Notes software- or browser-based Lotus Domino application.

• You can run the full IBM Sametime client within the Notes environment.

IBM Social Networking software (IBM Connections)

• Online presence awareness for Connections communities and blogs.• Sharing communities between Connections and Sametime clients.

Microsoft Office applications • Online presence and geographic location awareness as well as instant access to the full range of Sametime capabilities directly from Microsoft Office.

• New integration with Microsoft Office 2010 supports the Office Ribbon model.

Microsoft® Outlook • Online presence and geographic location awareness as well as instant access to the full range of Sametime capabilities directly from Microsoft Outlook in-boxes.

• Microsoft Office calendar users can schedule a Web conference, along with a meeting, directly from their Outlook calendar.

Microsoft Sharepoint • Online presence and geographic location awareness as well as instant access to the full range of Sametime capabilities directly from Microsoft® Sharepoint sites, without any modifications to those sites.

IBM WebSphere Portal & IBM Customer Experience Suite

• Online presence awareness and enterprise instant messaging for Portal applications, which deliver a point of personalized interaction with applications, content, processes and people.

Your application • IBM Sametime now offers a new zero-download Web client built on a new Web 2.0 toolkit that makes it easier for businesses to embed Sametime capabilities into their applications and Web sites. Additionally, the zero-download Web client makes it easy for external users to participate in meetings.

• IBM Sametime Unified Telephony REST API provides click-to-call and click-to-conference semantics, allowing a call to be established between a registered user and one or more IBM Sametime contacts or external phone numbers.

In the marketplace for more than 10 years, Sametime software is a mature, proven and highly scalable product with deployments ranging from tens of users to more than 400,000 users. And with the recent releases of IBM Sametime 8.5 and IBM Sametime Unified Telephony software, IBM continues to push the pace of innovation in unified communications.

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Why companies need to think about Unified Communications & Collaboration?

Technology changes our traditional means of communications. A written communication can be an email, an instant message, a voice message (perhaps translated from voice to text), a blog alert or a notification from an application or other business system. Making calls is no longer only the domain of the telephone. Multiple devices can be used to make calls, a desktop phone, a mobile phone, a PDA or your PC.

These types of advances in communications technology create opportunities for business innovation and improved flexibility and responsiveness. Innovative approaches in business communications and collaboration directly address today’s critical business challenges. Customers now have a unique opportunity to move from a disjointed communications system to a state-of-the-art, unified, collaborative environment enabling new business processes with SOA based applications [Communications Enables Business Processes and Applications]

Web 2.0 SIP

VoIP

High speed BroadbandWiMax

Instant Messaging

SOAPresence

Conferencing Web Audio Video

Directory Services

Web 2.0 SIP

VoIP

High speed BroadbandWiMax

Instant Messaging

SOAPresence

Conferencing Web Audio Video

Directory Services

Business is global, interdependent, virtual and matrixed. They operate with dispersed teams. Reporting lines do not logically follow the formal organizational model. Centers of competence are located around the globe supporting the objectives of the entire corporation. People work in (virtual) teams to support clients. Existing tools and capabilities are being used in new ways. Communication can be a key barrier or an enabler. Converged networks allow companies to implement innovative ways to focus on communications as an enabling tool.

Innovation is great, but it also creates many questions. How fast can your business model shift to adapt to client requirements? How can you stay competitive in an ever changing environment? Does your voice and data network keep-up with your end user requirements? Your clients and end users want to access data and talk about it together with someone else. Can you do that with a seamless end-to-end capability? Do you have the need.....?

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Communications Enables Business Processes & Applications

Technology is available today that can help create efficient and effective business processes. Legacy systems need to be integrated with the new environment. Converged communications assumes combining voice and data networks.

The objective of Communications Enabled Business Processes (CEBP) therefore is to 'communications enable' applications and business processes by integrating advanced communication capabilities directly in the software that people use for their day-to-day tasks.

Collaboration tools

Presence

Instant messaging

Audio conferencing

Team rooms

Discussion forums

Wikis and blogs

Web conferencing

Video conferencing

Information access

Directory lookup

Information portal

Enterprise applications

Online learning

Voice-driven directory/ information lookup

E-mail and personal informationmanagement

E-mail

Contacts

Calendaring

Scheduling

To-do lists

Memo pad

Communication tools

IP Telephony

Fixed/mobile convergence

Unified Messaging

Video telephony

Collaboration applications available for the users

Desk phones withvoice, data, presence,messaging and video

Handheld devices with voice, data, presence and messaging

PCs or laptops with voice, data, presence, messaging and video

End-user devices

Collaboration tools

Presence

Instant messaging

Audio conferencing

Team rooms

Discussion forums

Wikis and blogs

Web conferencing

Video conferencing

Information access

Directory lookup

Information portal


Online learning



E-mail

Contacts

Calendaring

Scheduling

To-do lists

Memo pad

Communication tools

IP Telephony


Unified Messaging

Video telephony


Collaboration tools

Presence

Instant messaging

Audio conferencing

Team rooms

Discussion forums

Wikis and blogs

Web conferencing

Video conferencing

Information access

Directory lookup

Information portal


Online learning



E-mail

Contacts

Calendaring

Scheduling

To-do lists

Memo pad

Communication tools

IP Telephony


Unified Messaging

Video telephony


Desk phones withvoice, data, presence,messaging and video

Handheld devices with voice, data, presence and messaging

PCs or laptops with voice, data, presence, messaging and video

End-user devices

Here are two real world examples

First, an IBM technical support representative recently received an urgent support call from an IBM customer in Korea. The customer didn’t speak English and our support rep didn’t speak Korean. But he has options: • using a Sametime plug-in that instantly translates English into Korean and vice-versa allowed him to provide a

basic initial response;• using 'Skill Tap' – a Sametime feature – he sent a realtime request for help to an expert community. A bilingual IBM

employee responded and agreed to join a call and translate — helping to solve the customer’s problem.

Second, imagine the following not unusual situation; a report is due in two hours. You need clarification on an issue too complicated to work out over Instant Messaging or email. With IBM Sametime you check your contact list to see who is available to help. You can see instantly who is online, available and not on the phone. You click to start a voice call using your integrated softphone. You do not know it but the colleague your are trying to reach is traveling. Due to the one number service the call is automatically routed to the mobile phone. Contact is made and you did not even have to know where the person is or what number to use in order to establish contact.

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The business value of implementing a UC² strategy - the analyst view.

In this section we put the spotlight on some pertinent research by analysts, marketing and other commentators. We explore findings from Forrester, Aberdeen Group and Siemens – the latter of course is not a market analyst company but they sponsored a very valuable market study.

In general the analysts seem to agree that the potential for cost reduction in converged networks arises from the elimination of unnecessary infrastructure duplication. Although some redundancy is desirable in order to meet reliability objectives there are unjustifiable costs associated with duplicate equipment for separate data, voice, and video networks, duplicate management for these networks, duplicate sets of support personnel, and duplicate facilities costs (for example, cabling, floor space or cooling).

But there are more gains to be realised. This is not only about infrastructure costs. The analysts clearly widen the scope to other areas such as collaboration, end-user satisfaction and general communications benefits. This goes back directly to points we raised concerning employee effectiveness and the positive effect UC² has on internal and external collaboration.

In summary the analyst community points us to following benefit categories:

• Reduction in overall operations cost.

• Improved, more efficient company-wide communication.

• Much improved end-user and client satisfaction.

• Overall improved access to information.

• Improved competitive position.

• Reduced cost of travel

Many people will be skeptical when analysts or service companies predict savings of X amount of Euro's. It's not so much that the numbers are not true, it's trying to make them specific to your company that is the issue.

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As we will discover below and in our case study in the next chapter the numbers we quote are based in reality. We also recognize that no matter what we say here, every customer case is different and customers will only know what their ROI potential is when they plug-in their own numbers in the ROI calculator. One thing people tend to agree on – you can’t afford to do nothing.

“Measuring the Pain: What is Fragmented Communications Costing Your Enterprise?” - Siemens studyThis Siemens sponsored study was the largest-ever survey of enterprise and contact center employees and therefore worth calling out here. It reveals the silent but staggering costs of fragmented communications

Enterprises with 1000 employees could be losing up to 13M Dollars per year. Total lost and avoidable expense can range from $6K per person per year for a company with 500 employees to $12K per person per year for a company with 1,000 employees.

The study tells us how this breaks out:• Waiting for information is expensive; the study estimates delays of 5.3 hours per week at an average annual cost of

over $9000 per user. • The study counts approximately 11 days p/year of unnecessary or avoidable business travel and an annual waste

of at least $3400 per person to “synchronize teams”.• 75% of companies incurred additional communication costs of +/- $1488/Year. These are additional expenses on

top of typical travel expenses.

Many companies are increasing their remote worker headcounts who on average spend 10% of their time working from remote locations. Lack of effective communications can mean additional and often unmeasured financial side effects.

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The Total Economic Impact - ForresterForrester takes a similar angle in their October 2007 study. They work on quantitative savings but they also identify additional benefits that deal with telephony savings, training and a travel expense and the important aspects of attracting new employees.

The new internet generations are entering the workforce. They expect to be able to use modern communications technologies such as chat, video and audio conferencing, team and community spaces as well as expertise networks. These are capabilities they have been using online for years.

Forrester also looks at customer services because of the clear relationship between rapid and quality responses and customer satisfaction, company image and revenue.

Quantifiable ROI – Aberdeen GroupThe Aberdeen Group study of September 2007 further validates that their ‘best in class companies’ can derive concrete savings from adopting UC technologies - 33% of these companies report increasing ROI and almost 40% report increasing user satisfaction. Furthermore, between 17 and 29% of companies report that UC² has increased revenue.

Performance Increases from Adoption of Unified Communications2Performance Increases from Adoption of Unified Communications2

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ROI examples from customers using IBM Sametime

To validate the findings from the analyst community we delve into IBM's rich customer base. We can quote you many examples – here is a selection of the most pertinent ones as they illustrate cost savings and ROI examples in the areas we identified before.

An electronics manufacturer saved $600K in airfare and travel costs and a grocery chain saved $520K on training using online facilities instead of travel.

We worked with a large insurance company and they calculated savings of $650K due to the reduction in phone calls for 35,000 employees using instant messaging. They expect this to increase with the softphone capabilities in Sametime. In addition they realized savings of $300K anually by switching from hosted webconferencing to Sametime webconferencing allowing them to better control costs and usage.

A global Retailer was able to add $750K/year to margins by reducing supply and order fulfillment disruptions. Traditional communications alone (phone and email) weren’t fast enough to help them streamline these time critical business processes.

A large vehicle leasing company in the world created an internal social networking platform called LinkedPeople. The company also implemented IBM Sametime software for instant, real-time collaboration and communication. Cost savings on reduced travel alone are able to pay for the entire solution, including licenses, implementation and maintenance.

When it comes to end user productivity, the ability to capture and share knowledge and to identify other employees with certain areas of expertise, who could then be contacted in real time for consultation on a wide range of topics is one of main factor for ROI in terms of sharing. This project has been capable to redefine existing business processes, optimizing the productivity of internal employees, which enabled the organization to do more business with the same number of people.

A biotech company in the US reported customer satisfaction gains by adding enhanced communications to their applications. They needed a better way to stay in touch with their manufacturing plants and customers who are located all over the world. For years the company had been relying on e-mail to communicate with its international customers as well as with its Korea-based manufacturing plant, but because of the large time difference, communication often took days to complete, straining the company's relationships and delaying ongoing projects Not only has the solution improved their ability to communicate and collaborate internally, it has improved the company's ability to serve its customers efficiently. The IBM Sametime software integrates flawlessly into the client's Lotus Notes environment, which has allowed employees to leverage the software immediately and reap the benefits of real-time communication. And because employees can chat with customers, partners and colleagues around the world, the solution has reduced their overall dependence on e-mail while improving communication.

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Two examples in the automotive sector provide further insight. By using Sametime integrated into Portals a company saw significant reductions in development cycles. They saved costs by centralizing information and reducing travel costs for design meetings. Development teams could be more responsive and this in turn increased speed-to-production of new vehicle models.

In Greece our Services teams 'communications enabled' a web-based dealer network application for the national distributor representing a large Japanese car manufacturer. Several interesting ROI elements have been measured, such as optimization of business processes, one of the ROI categories we identified in this paper:

• 10% to 20% reduction in inventory levels at Dealer stockrooms• 30% faster fulfillment time on car orders (from 11 to 7 days)• 60% faster fulfillment time on spare parts orders (from 3 days to 1 day)• 90% reduction in rejected warranty claims by the manufacturer• 60% reduction in total cost of ownership (TCO) for IT• 69% reduction in dealers’ IT costs• Total elimination of false warranty claims

Another US-based insurance company developed an easy-access communication system that allows agents to conduct most transactions via the Web. They leveraged the latest Lotus Notes and Sametime software, enabling agents to log in and do everything from viewing current policies and accessing rates to engaging in instant chats with underwriters about specific policies. Lotus Sametime opened communication channels for sales people to immediately contact underwriters. An agent sees the underwriter's name on a policy and clicks on that name to begin a chat. Both parties have access to the same policy via a link. As a result the company and its representatives can cut through clutter and delays to respond to customer needs by providing instant quotes. The company has dynamically increased the exchange of information and ideas, bonding a scattered workforce via the Web. From an ROI perspective they reported the following results:• Cut policy turnaround time from weeks to a matter of days• 50% reduction in the number of internal phone calls• 40% less people needed for the same volume of business

Finally, a large outsourcing company was able to increase the productivity of its Customer Service Help Desk by 20% over 2 years. Desk analysts can now efficiently tap expertise of thousands of experts worldwide. Quick communication on outages or other situations affecting customers further streamline their performance.

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ROI Elements – two case studies

Asking ‘What is the ROI on Social UC’ is a valid question but so broad that it needs further precision. We prefer to answer it by breaking it down into measurable ROI elements, some or all of which can be applied to your business.

We will be reviewing two case studies – 'CarParts', a real automotive company (actual company name withheld on request) and IBM’s own internal usage experience.

‘CarParts’ - the Workplace for Change

This is a real-life example of a medium sized German automotive parts company. In this paper we will call them CarParts. The company has 5500 employees in 19 countries, revenues of approximately 2500M Euro and they have three main product lines across heating and exhaust systems. The company spends roughly 70M Euro annually on R&D.

We have performed an extensive ROI analysis with the CarParts teams. Below we focus on those business categories which the team has identified as having delivered the best Return On Investment.

The CarParts team embarked on an Unified Communications project called ‘Workplace for Change'.

Time

Bus

ines

s V

alue

CarParts’ Collaboration Opportunity…From Personal Productivity to an Integrated Collaborative Workplace

Team Productivity

Personal Productivity

• Integrated Collaboration Suite of tools (easy to access, easy to use, easy to administer)

• Lowers your TCO with a global standardized platform

• Extend your collaboration reach across the enterprise with employees, suppliers, and customers

• Collaboration pervasiveness across your mobile workforce with Device-aware toolset

Dynamic, Integrated Collaborative Workplace

Time

Bus

ines

s V

alue

CarParts’ Collaboration Opportunity…From Personal Productivity to an Integrated Collaborative Workplace

Team Productivity Team Productivity

Personal Productivity Personal Productivity

• Integrated Collaboration Suite of tools (easy to access, easy to use, easy to administer)

• Lowers your TCO with a global standardized platform

• Extend your collaboration reach across the enterprise with employees, suppliers, and customers

• Collaboration pervasiveness across your mobile workforce with Device-aware toolset

Dynamic, Integrated Collaborative Workplace

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As you can see from the picture CarParts has moved from a personal productivity model to an integrated collaborative workspace. The impact on their business was profound.

They had set themselves the following broad targets with 'Workplace for Change':

1. Move users toward a self-service model of information access and delivery2. Decrease business costs and improve operational efficiency3. Share information and ideas with customers, suppliers and partners4. Speed up and improve the organization's decision-making capabilities 5. Align and track more closely with corporate strategy and objectives 6. Manage specific operational processes in a more timely fashion7. Drive innovation, competitive advantage and decentralized decision making throughout the organization

CarParts ‘Workplace for change’ project had to deliver real benefits to the organization and change the culture towards collaboration. You can see that various UC elements were part of the project, such as Mobile Workforce and Universal Connectivity. The expectation from UC technologies was to greatly enhance the Knowledge Sharing aspects. Instant messaging, expertise location, presence awareness, emeetings and collaborative spaces were technologies that needed to be widely deployed.

When we work with customers we present them with our ROI value tree. We simply try and separate out the Benefits versus the Cost of a Unified Communications project. We also tend to work with an investment comparison over a 3 year time frame. In our method we work with customers to jointly identify benefits and we will then be able to attach specific action items to these.

Implementation Implementation ServicesServices

SoftwareSoftware

BENEFITSBENEFITSBENEFITS

MaintenanceMaintenance

ROIROI

TCOTCO

HardwareHardware

Cost ReductionCost ReductionCost Reduction

Employee Productivity Employee Employee

Productivity Productivity

Potential Benefit Areas / Value Propositions

Support heavy duty cyclical work

loads

Support heavy Support heavy duty cyclical work duty cyclical work

loadsloads

Reduce long-distance telecom

costs

Reduce longReduce long--distance telecom distance telecom

costscosts

Reduce travel and expenses for quarterly meetings in Purchasing Group

Improve process efficiencies during Accounting Close Period

Improve effectiveness of

Sales Reps

Improve Improve effectiveness of effectiveness of

Sales Reps Sales Reps

Increase problem-resolution effectiveness by leveraging real-time communications to diagnose manufacturing issues

Improve effectiveness of Purchasing staff

Improve Improve effectiveness of effectiveness of Purchasing staff Purchasing staff


IT Staff


IT Staff IT Staff

Reduce travel and expenses for

quarterly meeting

Reduce travel and Reduce travel and expenses for expenses for

quarterly meetingquarterly meeting

Reduce telecom costs incurred handling Level 2 Support calls

Eliminate physical face-to-face quarterly Purchasing Meeting thereby making the Purchasing reps more productive

Increase reach and coordination within IT department by utilizing full collaboration suite

Reduce Labor costs in NA

Manufacturing

Reduce Labor Reduce Labor costs in NA costs in NA

ManufacturingManufacturing Increase problem-resolution effectiveness by leveraging

real-time communications to diagnose manufacturing issues

Implementation Implementation ServicesServices

SoftwareSoftware

BENEFITSBENEFITSBENEFITS

MaintenanceMaintenance

ROIROI

TCOTCO

HardwareHardware

Cost ReductionCost ReductionCost Reduction

Employee Productivity Employee Employee

Productivity Productivity

Potential Benefit Areas / Value Propositions

Support heavy duty cyclical work

loads

Support heavy Support heavy duty cyclical work duty cyclical work

loadsloads

Reduce long-distance telecom

costs

Reduce longReduce long--distance telecom distance telecom

costscosts

Reduce travel and expenses for quarterly meetings in Purchasing Group

Improve process efficiencies during Accounting Close Period


Sales Reps


Sales Reps Sales Reps

Increase problem-resolution effectiveness by leveraging real-time communications to diagnose manufacturing issues

Improve effectiveness of Purchasing staff

Improve Improve effectiveness of effectiveness of Purchasing staff Purchasing staff


IT Staff


IT Staff IT Staff

Reduce travel and expenses for

quarterly meeting

Reduce travel and Reduce travel and expenses for expenses for

quarterly meetingquarterly meeting

Reduce telecom costs incurred handling Level 2 Support calls

Eliminate physical face-to-face quarterly Purchasing Meeting thereby making the Purchasing reps more productive

Increase reach and coordination within IT department by utilizing full collaboration suite

Reduce Labor costs in NA

Manufacturing

Reduce Labor Reduce Labor costs in NA costs in NA

ManufacturingManufacturing Increase problem-resolution effectiveness by leveraging

real-time communications to diagnose manufacturing issues

Behind this value tree is a spreadsheet which we will explore a little further below. Each business benefit area has to be coupled with a financial benefit. If one adds these up an overall picture emerges, like the one in the table on the next page.

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The numbers above are fictitious but they are an example of the custom ROI calculation we performed for CarParts. We have some real numbers to show you in conclusion of this case study. We have been able to find financial benefits in each of the following categories:

1. Sales effectiveness2. Employee productivity3. Customer service4. Telephone & Webconferencing5. Travel

Below we will expand on categories one to four. Reducing travel costs speaks for itself and we will have a more detailed analysis of this category in the IBM case study.

• Increase sales Benefits in this area of the business refer to opportunities to increase sales by making sales efforts more effective. This includes better coordination across global accounts, sharing of best practices, better reusability of key sales assets and dynamic collaboration of the 'best qualified resources' for a specific sales opportunity. The stated goal was to increase sales transactions to between 50 and 200 per week.

• Improve employee productivity These benefits refer to time savings opportunities associated with enhanced communication and collaboration capabilities, including identifying and contacting people and expertise, coordinating teams and project communities. CarParts thinks they could reach a 25% increase in productivity with better technology and more effective processes. Between 70-90% of activities involve seeking help and improving the speed of communication.

• Reduce telephone and webconferencing cost Though strictly speaking more a cost of ownership (TCO) than a ROI argument, reducing telephone usage as a direct result of deploying unified communication and collaboration technologies is probably the easiest benefit to calculate. That, and reduced travel by using web conferencing. Experience bears out that increased IM usage will reduce phone calls. VOIP will reduce telecommunications costs. How much, depends on your business.

eMeetings can be hosted by a service provider or IBM Sametime software can be acquired to host it on-premise. Many companies end up with a hybrid model. Hosting is not always the most cost effective model. Usage patterns are difficult to predict and licensing models vary widely. Having an onsite solution often means not only better technical control (security) but also better financial control over the conferencing solutions.

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• Reduce cost of customer service and help desk support CarParts saved 53K Euro in their Call Center by using Sametime and consequently reducing escalation time with 5min per call.

Help desks and customer contact centers are areas of the business where communication technologies can have a real impact. CarParts has 100 support professionals. They spend 80% of their time troubleshooting, talking to SME‘s etc. If the time-to-resolution per customer is reduced, more customers can be assisted, wait times are down and customer satisfaction will go up. We have a concrete cost savings example in our Chapter 7 dealing with Contact Center ROI.

CarParts ROI SummaryCarParts has benefitted tremendously from their ‘WorkPlace for Change’ initiative. For a total investment of roughly 175.000 Euro CarParts realized a cost saving over 3 years of roughly 1.6M Euro.

We trust that this example has given you a few ideas of where the savings originate. This was not a theoretical exercise but we have been able to share with your the results of an ROI initiative with a real company deploying real solutions in the real world.

IBM, the Sametime ROI story (from 2008 figures)

Let us now turn to IBM itself to show how our own calculations affect the ROI story. IBM's CIO office leads the deployment of IBM's internal software. In an internal report about the Sametime deployment the CIO Office clearly outlines their goals which support the story we started in this paper:

Sametime is a key application that the IBM corporation depends on to provide real-time collaboration services to employees. In addition, IBM's internal deployment of Sametime allows collaboration with external customers. (...) These capabilities directly support IBM CIO strategy including the need to reduce the dependancy on e-mail, enable faster decision making, reducing costs including business travel and telecommunication costs and supporting the need to collaborate with external customers.

With roughly 400,000 employees world-wide in 64 countries IBM conducts business in 170 countries. There are roughly 2,041 IBM locations and 40% of IBM employees are mobile. This section will demonstrate how the internal deployment of the Sametime product family is assisting IBM with it's ROI and cost reduction story.

Instant Messaging and eMeetings at IBM – the numbers.There are approximately 400,000 Sametime users in IBM of which 200,000 are concurrent users. We count about 10 million chat messages per day with 1.3 million participants. This user community creates roughly 190,000 emeetings.

Our IT infrastructure currently consists of the Sametime client, the Notes client with integrated Instant Messaging, Sametime Mobile and a Sametime Web Conferencing Enterprise Meeting Server. We run a Sametime server infrastructure in a so-called ‘run once’ world-wide deployment (5 Sametime Community Servers, 10 Multiplexor Servers to handle end-user connections). There is an active internal developer community to create Sametime Plug-ins. Plug-ins support innovation and they are developed and posted internally on a “plug-in factory” website.

We provide our users with a suite of “e-meeting” services; webcasts, audio/video conferences and Sametime hosted webconferencing. Sametime is used everywhere within IBM, but we also support external communities with customers and business partners.

Note again that we are running this infrastructure essentially on 5 Sametime servers! This is a testament to Sametime's scalability and enterprise readiness.

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http://g03zidbs001.ahe.boulder.ibm.com/transform/sas/as-web.nsf/9b24bc9335a10029852569660048c7b7/ff146415bb3d8d430025744f005e8794?OpenDocument&Highlight=0,collaboration


Sametime @ IBM: Business Value Realized (from 2008 figures)We estimate savings of US $16.5 million per year in reduced phone costs due to the use of instant messaging. Several cost avoidance factors contribute to these results:• Reduced phone and pager usage• Reduced e-mail usage• Quick access to expertise• Support mobile workers• Back-channel to speed-up time-to-resolution

The table below provides you with an insight on how we calculated the 16.7M annual savings in reduced phone costs:

18Average number of messages per user per day

5,000,000Number of messages per day

275,000Number of unique users per day

200,000Maximum concurrent users

380,000Number of self-registered users

$1,375,000Average savings per month(20 business days per month).

$68,750Average savings per day

$16,500,000Average savings per year

$0.020Phone rate

2.5Number of minutes per call

5Number of times IM used p/day instead of phone















$0.020Phone rate







$0.020Phone rate




Estimated travel savings due to the use of Webconferencing amount to US $97M p/year. We noted the following cost avoidance factors as the main contributors to these results:• Reduced travel• Support of mobile workers• Back-channel• Productivity enhancements

This table shows in more detail how IBM can avoid +/- $8M per month in travel costs:

$8,126,250Travel savings per month

$97,515,000Travel savings per year

97,515Number of people traveling to meetings

32,505Number of meetings requiring travel

$1,000Price of travel per person

50%Percent of people, per meeting, that would travel

15%Percent of meetings requiring people to travel

6Average participants per meeting

1,350,000Number of participants

216,700Number of meetings

$8,126,250Travel savings per month

$97,515,000Travel savings per year

97,515Number of people traveling to meetings

32,505Number of meetings requiring travel

$1,000Price of travel per person

50%Percent of people, per meeting, that would travel

15%Percent of meetings requiring people to travel

6Average participants per meeting

1,350,000Number of participants

216,700Number of meetings

Update in 2011:Usage of Sametime is increasing. More than 50M message per day

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Green Computing ROI

IBM is committed to environmental leadership in all of its business activities. Therefore, this paper would not be complete if we did not address Green Computing in particular because there is an ROI angle to the story.

A case can be made that Unified Communications can result in savings in travel, carbon footprint and paper. That contributes to ROI. Having said that, we do see Green Computing in a broader spectrum. There are aspects that extend well beyond collaboration software as such and therefore also beyond the scope of this paper. Look online for more information. There is a good Wikipedia section on Green Computing; http://en.wikipedia.org/wiki/Green_computing

On Sept 17, 2008, Frost & Sullivan presented IBM with its 2008 Business Software and Communications Applications Green Excellence of the Year Award. Frost & Sullivan recognized IBM's strong commitment to help its customers accomplish a number of goals including becoming more cost-efficient, more eco-friendly and even more competitive. As you can see, more ROI Elements.

IBM has been active in promoting programs that reduce the commute to work for its employees. Key contributors to this effort are IBM’s two flexible work programs:

• Work-at-home: Enables many employees to work from a home office

• Mobile employees: Enables many other employees to work from home a designated number of days each week

In 2010, more than 122,000 employees (29 percent) globally participated in one of these two programs, which not only helps employees balance their work and personal responsibilities, but also benefits the environment. In the U.S. alone, IBM’s work-at-home program conserved approximately 6.2 million gallons of fuel and avoided more than 48,000 metric tons of CO2 emissions in 2010.

In 2010, IBM expanded the use of collaboration tools, both internally and externally, to reduce our impact on the environment. As a company, we conducted more than 790,000 online meetings and exchanged more than 10 billion instant messages. Collaborating in this fashion is fundamental to IBM and has allowed us to save on travel costs and impacts, boost productivity by connecting our global workforce 24/7, and avoid CO2 emissions. We also have increased our use of video conferencing to help reduce the need for travel and improve team interactions. In addition to more than 400 video-equipped IBM rooms globally, we completed work on an IBM Sametime® desktop video pilot to extend video capability to employees’ desktops.

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http://en.wikipedia.org/wiki/Green_computing


Customer Contact Center ROI

Contact Centers are an area of business where unified communications can have a immediate effect on ROI.

Instant messaging facilitates direct and time efficient customer contact. A quick exchange via IM can prevent a lengthy phone call and can reduce call volume. Expert lists can be easily added to a contact center application. They provide the CSR with a list of experts and a view on their availability (on/offline, on/off the phone, in meeting or available). Presence awareness can help a CSR connect to an available person instantly thus preventing time consuming calling around to find someone.

The IBM Customer Service Center Help Desk uses Lotus Sametime to enable help desk analysts to tap the technical expertise of thousands of experts worldwide, to keep analysts appraised of current outages or other situations affecting customers and to manage this globally dispersed, highly skilled workforce. "We have seen our productivity numbers increase up to 20% over the last two years" Tanya Liblik, Service Delivery Manager, IBM Global Services Toronto.

In a call center seconds count. Finding an expert quickly can enhance the case resolution rates and consequently customer satisfaction.

Online customer self-service can reduce operational costs by deflecting calls to enhanced FAQ's on the web for example*. Blogs can provide means for customers to comment on products and services plus they are a great source of customer information for the marketing department. Personalized webspaces can provide customers with their own microsites thereby increasing customer intimacy and loyalty.

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The ROI categories that are impacted by these technologies are multiple but they can reduce costs (shorter calls or fewer calls) and increase revenue (an increase in customer satisfaction increases return purchases).

To illustrate this section we can quote a concrete example from our CarParts company referenced before. Using Sametime in their call center reduced escalation time with 5min per call which translated into a 53K Euro saving. The contact center handles 200.000 calls per year. 10% or 20.000 calls need some form of escalation to an expert. A CSR costs on average 32E p/hour. The cost savings are easily calculated: (20.000 calls x 5min) / (60 minutes x 32 E).

Web interactions (1$ per email) are cheaper than phone calls (10$ per call), SSPA (Service & Support Professionals Association)

Genesys UC Connect and IBM Lotus Sametime

To demonstrate the effect of adding Sametime to a call center application further we have worked with Genesys, an Alcatel-Lucent company, on a joint contact center approach. Genesys UC Connect improves customer service quality and the productivity of agents and experts by facilitating the integration of Genesys with Lotus Sametime unified communications (UC). Combining Genesys intelligent interaction management and routing with Lotus Sametime expands the labor pool beyond the contact center to Sametime-provisioned workers throughout the entire enterprise.

There are a number of challenges;• How do you train contact center agents (avg. 20–50 %

annual turnover rate) to accumulate and articulate the knowledge of an entire organization?

• How can you staff your customer service operation to handle unexpected increases in customer calls/contact volume while keeping labor costs down?

The Genesys UC Connect solution integrates with Sametime to achieve this expansion of customer service resources by using the Sametime client on back office and branch office desktops.

Reducing total cost of ownershipIntelligent routing of calls to a broader range of agents or employees helps to achieve better first-call resolution rates, which leads to higher customer loyalty and allows revenue objectives to be met. Lotus Sametime becomes the portal by which your entire organization can collaborate to efficiently serve customers. There are three key ways that Genesys UC Connect and Sametime can help improve your customer service:

1. Front and back office integration - Training agents to be experts is time-consuming and expensive. But by including back office resources in the customer service operation, you can reduce costs, dramatically shorten call times, and increase first contact resolution because customers won’t be left on hold by agents who take up valuable time while pouring over material in the knowledge base.

2. Support of branch offices and retail outlets - Many businesses have trained customer service employees at locations where they can interact face-to-face with customers. The peak busy periods for these employees is different than those within the contact center. By linking UC to your customer service operation, a very dynamic and widely dispersed customer care force becomes available to the remote customer service operation.

3. Empowering field sales - The intelligent handling of accounts and leads can have an immediate impact on the bottom line of any business. By linking lead generation in contact centers to sales resources outside the contact center, you can use specific product or service knowledge, or transfer customer contacts seamlessly to those in the field.

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Unified communications and the contact center—the promise and the problemGenesys UC Connect integrates with Lotus Sametime to allow knowledge workers from diverse back office departments to be melded directly into the contact center workflow on a part-time basis without formally becoming customer service agents. This allows for a direct connection between the customer and the enterprise UC user, providing live customer service even when traffic spikes cause contact center resources to be overwhelmed.

Today agents may use Sametime to view when experts are available on their agent desktop, and click to initiate a voice or IM session. However, this method can unintentionally cause excessive interruptions for the enterprise UC user, leading to frustration and lost productivity. Genesys UC Connect incorporates a variety of best practices to guard against this danger.

Using process to protect your most valuable resources Genesys UC Connect “subscribes” to presence provided by Sametime to determine the availability or location of experts and back office and branch office

workers. Rather than displaying available enterprise resources to contact center agents by name, Genesys software abstracts these resources’ identities into skill sets. This prevents agents from becoming dependent on particular experts. Genesys routing can then forward inquiries, along with pertinent “attached data/call context,” to available experts based on business rules that include the dynamically updated location of the expert. The use of routing logic ensures that inclusion of highly paid information workers into the customer service operation is both effective and sustainable.

Finally, Genesys UC Connect provides standard Genesys reporting on all interactions, even those that leave the contact center entirely and are fielded solely by IBM Sametime users. Reporting, case tracking and the ability to forward calls back into the contact center mean that back and branch office workers can accept full transfers from agents, rather than requiring an agent to stay on the line. This level of functionality also allows interactions to be forwarded to IBM Sametime users outside the contact center directly from the interactive voice response, rather than from agents alone. Through this integration, Genesys UC Connect is the only solution that uses your Lotus Sametime investment to dynamically expand your customer service resource pool to respond to unanticipated or seasonal traffic spikes without having to hire additional personnel or outsourcers.

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Video Communications ROI

The most obvious cost benefit of video can be found in the avoidance of travel. It does not seem too far fetched to suggest that a typical company could replace at least 25% of meetings that need travel with videoconferencing if they deploy good quality systems. The Climate Group - 20 companies that form part of a global environmental initiative - estimated in 2008 that up to 20 percent of business travel worldwide could be prevented by web conference and videoconferencing technology !

Adding video to applications can be the start of a new way of working. Video has also sparked entirely new markets.

In July 2009, Polycom completed a Wainhouse Research study entitled “Benchmarking the Benefits of Videoconferencing Deployments”.

The study, based on survey responses of over 300 companies, looked at Return on Investment (ROI) figures and cost savings due to video conferencing in a number of Enterprise industries including financial, manufacturing, high technology, energy, retail, hospitality and transportation.

The survey focused on six key savings areas:

• Travel – Use of video conferencing as a travel alternative

• Time to Market – Video conferencing used to bring products to market sooner

• Downtime – Video conferencing as a tool for enhancing maintenance and repair processes

• Training – Video conferencing used in distance learning environments

• Recruiting – Video conferencing used to reduce interview and recruitment cycles

• Sales – Video conferencing used to save on sales-related costs

The Results overall Enterprises and SMBs see significant savings by using video conferencing:

• Save 30% on travel costs

• Reduce time-to-market by 24%

• Reduce downtime by 27%

• Save 25% on training

• Shrink recruitment times by 19%

• Reduce sales-related costs by 24%

In the August 2009 report, Enterprise Video Collaboration, Aberdeen studied the behaviors and business performance of over 140 respondents using video. In studying their results, the amalgam of video collaboration capabilities into a unified communications (UC) environment was a key step for gaining value and measuring hard ROI metrics from a video solution.

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Percentage of employees using video over the last 12 months

First, when Aberdeen compared companies that had leveraged video into unified communications compared to those that used video as a stand-alone solution, we found that unified communications led to more than a two-fold increase in the percentage of employees using video over the last 12 months.

For companies using stand-alone solutions, 27% of employees had used video in the last 12 months compared to 64% of employees in companies that included the ease of access associated with embedding video capabilities into an enterprise or business communications solution.

This business value was reflected in the fact that organizations with UC-based video capabilities were also more likely to have equated their video solution with a solid return on investment. The only companies that were able to demonstrate an annual ROI of over 200% per year were those that had already integrated video into their UC solution.

VIDEO is ready for business

Many things have changed in the video domain. Customers are moving from older ISDN-based and difficult to use room systems with limited user acceptance to a 'one click to videoconference' paradigm made possible by products like IBM Sametime.

We typically discern three classes of video capability:• Desktop video : point to point (user to user), online meetings, webcasts• Conference room video : large screens in meetings rooms• Telepresence solutions : customized, dedicated video rooms, immersive, life-like

Video is bringing additional ROI to Unified Communications project as first an accelerator to the adoption, for example when the objective is to stop and decrease travel expense, but also in many cases to open and reuse an existing Video infrastructure and devices.

Feedback from one of a significant Sametime deployment in France demonstrate the complementarity of IM, Web Meetings and Video communications. Results after 6 months (from a global leader in healthy foods)

• Increase Sametime usage up to 10.4 millions IM per months

• Video PC & Video Room are now a New Communication way

• This project has impacted our way of working and our travelling Costs

The following picture illustrates the evolution of Video usage across Video devices and PC:

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BYOD is changing the game

CIOs are implementing Bring Your Own Device (BYOD) strategies to increase employee mobility, responsiveness and productivity, while lowering cost. Tablets are bringing new interface to end user to simplify the Video experience and also to benefit of the Video capabilities of such devices. In 2011, both Polycom and Radvision successfully deliver to the market outstanding applications for Apple iPad and Android devices:

In a recent study, Nemertes Research reported that 86 percent of enterprises report an increase in the number of telecommuters. Additionally, while IT budgets remain flat or increase only marginally, more than 43 percent of organizations report a double-digit increase in mobility budgets.

“Mobility is a key consideration for any unified communications strategy, and the demand for mobile video is rapidly growing as well,” said Irwin Lazar, vice president and service director at Nemertes.” IT buyers continually cite interoperability as their primary challenge in delivering an integrated voice, video, and content solution.

“SCOPIA Mobile takes advantage of the extensive video expertise we have developed over many years and extends it to personal devices, which are becoming an increasingly important component of any enterprise’s communications strategy,” said Roberto Giamagli, general manager for RADVISION’s video business unit. “We’re delighted to deliver this innovative, fully interoperable and user-friendly application to iOS and other platforms, allowing our customers to take advantage of the ‘bring your own device’ phenomenon and participate in effective video meetings regardless of their location.”

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Bring your own Device (ByoD) is not new. For example FORD began in 2007 such a program. Ford’s motivation to look into BYOD as a reaction to two trends: Consumerization of IT, as well as the new habits of 20-something Millennial employees. To investigate BYOD, Ford created a cross-functional team consisting of managers from the IT, legal, HR, accounting and other departments.

When it comes to Video communications, using tablets is bringing many advantages:

• Free yourself from the office and conference room with the ability to meet anywhere.

• Stay connected with people and content with a single communication stream from your tablet.

• Eliminate barriers to productivity and open new opportunities for immersive teamwork.

• Take charge of your work/life balance by taking video conferencing with you wherever you go.

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What about real ROI?

Video helps bring together people and teams situated anywhere across the globe—or across town—helping to drive productivity through greater, more efficient collaboration. So goes the general wisdom....but what about real ROI? Last year Eric Krapf, editor of nojitter.com, published a useful table on his blog.

Comparing the costs of a 1-hour face-to-face meeting 560 miles away (Boston - Philadelphia) with a 1-hour video conference:

Peter Brockmann (Brockmann & Company) quotes from his study of 350 business users of videoconferencing. This study shows the impact of video on business performance. As expected this lines-up nicely with the ROI-Elements discussed in this paper:

◦ 20% higher customer satisfaction◦ 72% higher employee satisfaction◦ 85% more revenue per employee◦ 20% more market share

There are many more examples like this. Whether you believe the precise numbers or not the trend is unmistakable.

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Desktop Video ROI from IBM

Why would you consider providing Desktop Video to your employees? Is Desktop Video a viable strategy? Since 2007 IBM's CIO office has conducted extensive tests with Desktop Video. Experiences from this IBM study are interesting.

We implemented Desktop Video in the Software Group's development organization of 550 employees from 14 countries who represented 30 development teams. The project objective was to quantify how desktop video enhances collaboration and increases productivity for development teams.Overall, 83% of respondents believe that video has a positive impact on both the productivity of meetings and on relationship management. 68% of respondents also believe that video has a positive impact on Travel Expense reductions. In addition, for effectiveness in increasing 2-way interaction, gaining clarity on complex questions and reducing cross-cultural language differences most of the response was positive as well.

Assisted trust building which improved the overall working relationships and interactions

64% of users said it increased the effectiveness of two-way interactions

84% said it improved relationship management

77% said impacted morale positively

On-going benefits

73% of users said it impacted the on timeliness of decisions

77% of dispersed users said it improved meeting productivity

Team Productivity

68% of users confirmed desktop video improved quality of deliverables Product Improvements

Assisted trust building which improved the overall working relationships and interactions

64% of users said it increased the effectiveness of two-way interactions

84% said it improved relationship management

77% said impacted morale positively

On-going benefits

73% of users said it impacted the on timeliness of decisions

77% of dispersed users said it improved meeting productivity

Team Productivity

68% of users confirmed desktop video improved quality of deliverables Product Improvements

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Sametime Unified Telephony ROI

In June 2009 we introduced an exciting new product as part of the IBM Sametime family; Lotus Sametime Unified Telephony (SUT). SUT turns your PC into an easy to use softphone without the complexity of expensive deskphones. In addition it offers intelligent call routing, one number service to multiple devices and it can integrate with multiple IP & TDM PBX"s so that you can gain the power of UC today without replacing your telephony infrastructure. SUT turns your telephone into an extension of your Sametime contact list

SUT customers can look forward to savings in seven categories:

1. Phone hardware2. Ad-hoc audioconferencing3. Improvements in productivity4. Improvements in call accuracy5. Reduced telephony costs for mobile and/or remote

workers6. PBX migration or integration7. Consolidation of Softphone vendors

In an August 2008 report Gartner observed that 75% of companies that are buying expensive IP phones are spending 150 dollars per employee more than they need to. If you have a PC, you can use it as a phone. This opens up possibilities. Do you really need these expensive phones on each and every desk? What about utilizing less expensive deskphones with SUT for sophisticated call management. Or using SUT's softphone in place of any deskphone? The savings here can add up fast. Some of these new IP phones can cost hundreds of Euros/Dollars per employee.

To understand the economic impact Sametime and Sametime Unified Telephony are having on organizations, Wainhouse Research interviewed organizations who are deploying these solutions. Companies range in size from a few hundred users to over a hundred thousand users. Most of these organizations had previously deployed Sametime and were adding Sametime Unified Telephony. One began with IBM Connections, IBM’s business-focused social networking software, and then added both Sametime and Sametime Unified Telephony simultaneously. Based on these interviews, Wainhouse Research created a composite company of 35,000 knowledge workers in order to perform a 360° analysis of the economic impact Sametime and Sametime Unified Telephony can have on a large organization.

Six organizations that use Sametime and Sametime Unified Telephony (SUT) were interviewed for this study including:

1. Global engineering, procurement, construction and project management company with over 42,000 employees.

2. Global building materials company with offices in 50 countries and 46,500 employees.

3. The military for a Scandinavian country.

4. Regional insurance company based in the United States.

5. Global IT and business consulting firm with over 100,000 employees.

6. Global shipping company managing over 100 vessels traversing all the world’s oceans.

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All six of these companies are implementing Sametime Unified Telephony, and they are in various stages of deployment from fewer than 200 to more than 50,000 installed seats. Key findings from the interviews include the following:

• Several of the companies deploying SUT are doing so for the productivity benefits first and foremost. These benefits far outweigh the deployment costs; in fact, deployment cost is really secondary for these organizations.

• SUT provides a natural extension of Sametime’s presence, IM, and click-to-connect model. It facilitates needed interaction with people who must use mobile devices or the PSTN while traveling and makes it easier to reach people who are outside the organization.

• SUT gives Sametime users the ability to make, receive, route, and control regular voice calls using their already familiar Sametime client interface.

• More and more people are becoming mobile and they are often working at home. SUT allows companies to eliminate desk phones for some individuals.

• SUT has call control and call routing capability built in, allowing organizations to eliminate PBXs entirely and/or to reduce the number of licenses and their corresponding maintenance charges.

• Organizations with PBXs from multiple manufacturers can “front” these PBXs with SUT, providing Sametime’s consistent unified communications user interface for all users regardless of which PBX they may happen to be homed to. One user indicated that with SUT, the Sametime client is all they need on a PC, versus an IM/presence client from one vendor and a softphone from another.

• The world is using social media, and SUT provides integration with all types of social communications capabilities.

• SUT is a feature rich offering in terms of user environment along with an excellent roadmap.

• SUT can be used as a business continuity and disaster recovery solution. In fact, one customer is

deploying SUT with business continuity as the primary driver after an ice storms and snow closed

• SUT integrates well with other IBM software organizations may have in place.

• Because SUT runs on separate servers from Sametime, the solution can be deployed without any

downtime to normal collaborative processes and remaining PBXs.

• SUT does not require a forklift upgrade; organizations can keep their existing email system (Microsoft Exchange or Lotus Notes) and their phone systems.

• Younger employees expect tools like Sametime and SUT on their desktops to enable instant, ad hoc, voice, video, and data collaboration.

• The cost for SUT is between 1/3 and 1/2 of what companies would pay to upgrade legacy telephony environments.

SUT essentially provides a middleware layer that makes connecting to a telephone (PBX) environment simpler. As the migration to internet telephony is taking place, SUT can be used to connect IBM Sametime to a vendor’s IP-PBX and to legacy systems (TDM). Benefits for customers include allowing global Sametime deployments to support regional PBX decisions while providing a competitive advantage in supporting the migration of users to a single vendor’s IP PBX over time, without changing the end-user interface. This means you can achieve broad end-user value sooner - during the migration rather than at the end. In this case we demonstrate return on existing and ongoing investment in IP Telephony by avoiding 'rip and replace'.

As the lines between telephony and desktop software blur, it is important to view end-user telephony as a natural extension of an application (like Sametime), a business process or a line of business environment (inside sales, call centers, etc.).

The fact that IBM offers SUT as an integrated module into the Sametime family allows customers to consolidate vendors on the desktop and remain assured of an open application strategy that allows them to integrate telephony functionality into their business applications in much the same way Sametime offers that capability.

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Integrate SUT with Web apps – mouse over phone numbers and call

Some telephony vendors charge a per user license for their softphones as well as a "port" charge or "license charge" on the PBX side for each softphone to "register" or "connect" with the PBX. This can add up – port charges of 150USD per user are not uncommon. SUT includes an embedded softphone so there is no additional charge for softphone functionality and since the SUT softphone registers directly with SUT there is no extra 'port' charge on the PBX.

Whether you realize all or some of the benefits outlined above, we believe that the ROI potential of Sametime Unified Telephony can be significant.

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Call to action and conclusion

In the end ROI is what you measure in your business environment. In this paper we have explored how advanced communication and collaboration technologies can drive costs down and revenue up in certain business categories – we called them ROI elements. We have seen a remarkable consistency in the use cases we reviewed and we conclude therefore that the following 6 business categories are the best contributors to ROI or cost reductions:

1. Process optimization2. Communications3. People Productivity4. Access to knowledge & information5. Competitive Advantage6. Travel

By its nature this exercise has been relatively generic and in order to really understand the impact we advise create a bespoke ROI study together with our Services teams. But there are other things you can do before such an engagement. Experiment with free ROI calculators to see how your business responds to ROI metrics. Polycom, Radvision, CISCO, Alcatel-Lucent, Tandberg and others all have useful tools on their websites.

IBM's Business Value Assessment (BVA) method is a well proven business case modeling approach used by IBM and our partners to help our customers build their investment case for social business and Unified Communications. At the heart of BVA, IBM Social Business consultant are using ROI models based on Alinean research. Day in the life demos are also strong way to communicate to executive sponsor.

From IBM Transformation, I encourage to read the “Transforming your voice, video and collaboration infrastructure The IBM journey toward unified communications” from September 2010. You will find many information about Unified Communications at IBM and detailed best practices. ftp://public.dhe.ibm.com/common/ssi/ecm/en/icw03003usen/ICW03003USEN_HR.PDF

Summary benefits from IBM Transformation

Readers should use also the Forrester study about Total Economic Impact of IBM Social Collaboration Tools to better understand and evaluate investing in IBM Social Collaboration tools.

ftp://ftp.software.ibm.com/pub/lotusweb/Forrester_TEI_IBM_Social_Collaboration_v20Sep10.pdf

You can also perform an quick online analysis with our Business Value Builder. Check it out for free on http://ibmtvdemo.edgesuite.net/software/lotus/uccroidemo/

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http://ibmtvdemo.edgesuite.net/software/lotus/uccroidemo/


ftp://public.dhe.ibm.com/common/ssi/ecm/en/icw03003usen/ICW03003USEN_HR.PDF


Resources for further exploration

IBM Social◦ www.ibm.com/social

Sametime Blog◦ www.ibm.com/sametimeblog

Experiment IBM Social UC◦ http://greenhouse.lotus.com ◦ http://tinyurl.com/sametimenow852

Sametime with IBMers◦ www.ibm.com/collaboration ◦ https://www-304.ibm.com/wikis/home/wiki/sametimewithibm

Wiki IBM Sametime◦ http://www-10.lotus.com/ldd/stwiki.nsf

IBM Sametime 8.5 reviewer's guideReview the broad range of functions in Sametime

◦ http://ibmtvdemo.edgesuite.net/software/lotus/whitepapers/streview ersguide.pdf

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http://ibmtvdemo.edgesuite.net/software/lotus/whitepapers/streviewersguide.pdf

http://ibmtvdemo.edgesuite.net/software/lotus/whitepapers/streviewersguide.pdf

http://www-10.lotus.com/ldd/stwiki.nsf


Sources

1. IDC, Worldwide Social Platforms 2009 Vendor Shares, Doc. # 223817, Jun 20102. Press Release, Gartner Reveals Five Social Software Predictions for 20-10 and Beyond, February 2, 2010 3. Work Faster, Work Better, Work Smarter – Building agile, collaborative and connected business environments,

IBM, November 20094. Study: Inc. 500 outpace Fortune 500 in media adoption, Joe McKendrick, smartplanet.com, March 8, 2010 5. IDC, Worldwide Social Platforms 2009 Vendor Shares, Doc. # 223817, Jun 20106. IBM Press Release, IBM Named Worldwide Marketshare Leader in Social Platforms Software, July 2, 2011 7. A new way of working – Insights from global leaders. IBM Institute for Business Value, April 2010 8. Business Communications Review / June 2007, By Permission of Marty Parker, Principal, © Communication

Perspectives 20079. “Measuring the Pain: What is Fragmented Communications Costing Your Enterprise?”, a Siemens White Paper.

Copyright © Siemens Communications , Inc.. All rights reserved , Full white paper available from Siemens Enterprise Network, US: www.siemens.com/us/open/ucsurvey , UK: www.siemens.co.uk/open/ucsurvey, DE: www.siemens.de/open/ucsurvey

10.“Beyond Dial-Tone – Unified Communications Benchmark Report”, December 2006; © Aberdeen Group.11.“Driving Workforce Productivity with Unified Communications”, September 2007, © Aberdeen Group.12.“The Total Economic Impact Of Microsoft Unified Communications Products and Services”, © Forrester Research

200713.“Corporate Governance and Climate Change, Consumer and Technology Companies”, December 15th 2008. © A

Ceres report, authored by RiskMetrics Group. 14.“IBM reaps business benefits and major cost savings from unified communications and collaboration”, IBM CIO

Office, Case Study, 2008.15.Brockmann & Company study of 350 business users of video conferencing,

http://www.brockmann.com/reports/collaboration/125316.Cisco IBSG, 2007, Data is based on present value of free cash flows over a three-year period.17.“Telepresence vs Videoconferencing, Resolving the Cost/benefit Conundrum”, Wainhouse Research, January 28,

2008 Revision 9.18.“The ROI Of Telepresence, A Total Economic Impact™ Analysis Uncovers Major Value Of Virtual Presence”,

Forrester, February 25, 2009, http://www.forrester.com/Research/Document/Excerpt/0,7211,47629,00.html19.Unified Communications Featured Article in tmc.com talking about a Frost&Sullivan Telepresence report, see

http://www.tmcnet.com/channels/unified-communications/articles/46615-report-telepresence-help-businesses-during-economic-crisis.htm

20.http://www.vcinsight.com/ , Telepresence and Videoconferencing Insight Newsletter 23 March 200921.Wainhouse, Ease of Use in Web Conferencing – Why it Matters, The Cost Benefits Of Making Usability a Priority,

February 2009, http://www.ivci.com/pdf/whitepaper-web-conferencing-usability-wainhouse-ibm.pdf22.Reported in the New York Times, 22 July 2008. SMART 2020: Enabling the Low Carbon Economy in the

Information Age, June 2008, Global e-Sustainability Initiative www.gesi.org23.Gartner , (August 2008), « Don't Purchase IP Screen Phones If You Have a PC on Your Desk »24.The IBM journey toward unified communications (March 2010):

ftp://public.dhe.ibm.com/common/ssi/ecm/en/icw03003usen/ICW03003USEN_HR.PDF25.Wainhouse (November 2011) - The 360° Economic Impact of Sametime and Sametime Unified Telephony26.“Benchmarking the Benefits of Videoconferencing Deployments” from Wainhouse on Polycom website27.How Ford Motor Deployed Bring Your Own Device (BYOD) from http://www.zdnet.com/blog/sybase/how-ford-

motor-deployed-bring-your-own-device-byod/208628.Environmental report from IBM - http://www.ibm.com/ibm/environment/annual/29.Forrester Total Economic Impact of IBM Social Collaboration Tools to better understand and evaluate investing in

IBM Social Collaboration tools. / ftp://ftp.software.ibm.com/pub/lotusweb/Forrester_TEI_IBM_Social_Collaboration_v20Sep10.pdf

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http://www.zdnet.com/blog/sybase/how-ford-motor-deployed-bring-your-own-device-byod/2086

ftp://public.dhe.ibm.com/common/ssi/ecm/en/icw03003usen/ICW03003USEN_HR.PDF

http://www.gesi.orgGartner/

http://www.gesi.orgGartner/

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http://www.vcinsight.com/



http://www.forrester.com/Research/Document/Excerpt/0,7211,47629,00.html

http://www.brockmann.com/reports/collaboration/1253

http://www-01.ibm.com/software/solutions/smartwork/study/

http://www.ibm.com/press/us/en/pressrelease/32050.wss

http://www.ibm.com/links/?prompt=1&url=http%3A%2F%2Fwww.smartplanet.com%2Fbusiness%2Fblog%2Fbusiness-brains%2Fstudy-inc-500-outpace-fortune-500-in-social-media-adoption%2F5381%2F

ftp://public.dhe.ibm.com/software/solutions/soa/pdfs/SmartWorkBrochure1123.pdf

ftp://public.dhe.ibm.com/software/solutions/soa/pdfs/SmartWorkBrochure1123.pdf

http://www.ibm.com/links/?prompt=1&url=http%3A%2F%2Fwww.gartner.com%2Fit%2Fpage.jsp%3Fid%3D1293114

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