Redefining IP Communications “Its Not just Technology, it’s a Partnership” Tom Burger October...

Redefining IPCommunications

“Its Not just Technology, it’s a Partnership”

Tom Burger

October 7, 2004

© 2004 NEC Unified Solutions, Inc.

“It is not the strongest of the species that survives, nor the most intelligent that

survives…

It is the one most adaptable to change.” Charles Darwin

IPC Is Here to Stay


The True Value Of IPC

Improved Productivity Enhanced Customer Experience Integrated Applications Revenue Generation

Reduced Costs Shared Infrastructure Effective Administration


IPC Evolving Benefits

Source: InformationWeek Research VoIP survey of 300 business-technology executives

Reduced costs

Improved productivity

Platform for innovation

Universal in-box

Better collaboration

Anytime, anywhere access to company data

Faster responsiveness to customers

Better quality of service and applications

Better support for globalization efforts

Fewer employees supporting telecom operations

What are the most likely long-range benefits of VoIP to your company?

10 20 30 40 50 60 70 80


Redefining Leadership

A recent study on how executives use IT to create business Value and Competitive Advantage Discovered that Leaders:

- Move Beyond IT Alignment Toward Integration Of Business And Technology

- Invest In Leading Edge, Innovative IT Aimed At Delivering Business Value

- Anticipate The Next Wave Of Technology And Define Its Impact On Business And Industry

Source: AT Kearney


It’s Not Just The Technology Cost…

ROI / TCO- Full Lifecycle – Not Just Initial Investment

- Scalability and Technology Integration Reliability

- Technology and Support Time To Implement

- Integration Experience Business Impact

- Improved Customer Experience

- Enhanced Revenue Opportunities

- Productivity Improvements


Convergence On Many Levels

Management

Voice IT

Administration

Skill Sets

Users

Phone PC

Applications

Self Service

Technology

Voice Data

Security

System Support

FinancialCommunications

IT

Investments

New Revenue


Current Enterprise Challenges

Changing Market- Vendor Consolidation

- Multi Vendor Environment

- Open Systems

- Confusion As Vendors Reinvent Themselves Changing Technology

- Technology Evolution Phase (1) Introduce IP Technology Phase (2) Introduces Value Added Applications

- Application Bundles Drive ROI

- Services Increasing In Importance Scarcity (multiple certifications required)


Moving Beyond Traditional Relationships

How Are Companies Changing The Way They Evaluate Supplier?- Is Your It Supplier A Vendor Or A Partner?- How Does Your Partner Make Your Job Easier?

What Kind Of Value Do They Bring And, How Do They Bring Value?

- Do They Understand Your Business? Are They Just Trying To Sell You More Stuff? Do They Assess Your Business And Provide Skill Across Your

Needs ? What Problems Have They Solved Before?

Technology Is Changing Business Performance- Industry Leaders Seek And Invest In Partners Vs.

Vendors- Has The Way You Select And Build Vendor

Relationships Changed?


Trends Driving Partnerships

Continued Migration Toward More Complex Enterprise Technologies and Applications

Heightened Attention To Assure Business Continuity Across The Entire Network

Availability of New Outsourcing Options

Ongoing Scarcity Of Technical Expertise

Desire for Single Partner With Multi-vendor Experience

Evaluating Multi Faceted Partnerships is Key


Traditional Decision Making Criteria

“What”- Hardware

Reliability Upgradeability Maintenance Costs

- Software Licensing/Maintenance Fees Security Productivity Improvements

- Services Existing Relationship References


Today’s Decision Making Methodology

“HOW” Hardware

- RFP/RFI

- “Bake Off” Environment

- TCO or ROI Calculations

Software- Can I Continue Business Using The Current Version?

- Is/How Much Customization Is Required?

Services- Do I Have Internal/ External Resources Available?

- Skill Set Gap Analysis


Historical Providers

System Integrators- Engaged When Multiple Products Are Required

- Utilized When Direct Relationships With Manufacturers Are Not Available

Consultants- Independent “Third Party” Perspectives

- Help Identify “Missed” Requirements

Manufacturers- Used To Achieve “Best Price”

- Ability To Influence Development


What Businesses are Looking For

Strong technical support and expertise in IP Telephony

Strong track record in systems maintenanceExpertise in communications-related applications

Committed to understanding our business problems

Knowledgeable and responsive sales representativesGood existing relationship

Knowledgeable staff in professional services and consulting

% of IPC Implementers that Rated the Criteria as Extremely or Very Important

Enterprises SMB

97%

95%

89%

81%

76%

76%

73%

86%

78%

84%

79%

74%

52%

64%

IPC Vendor Selection Criteria

40% 60% 80% 100% 40% 60% 80% 100%

Source: Infotech, 2004


Planned Use of External Support

Customers Using Some Form Of External Support For IPC

0%

20%

40%

60%

80%

100%

2002 2003 2004 2005Source: Gartner Dataquest 2003


Accelerating The Benefits of IPC

Planning Implementation Operations

Limit Internal Resource Investment to steady

state

Typical IPC

Resource Profile

Headcount

Utilize Vendor skill

set to bridge the

gap and accelerate

solution

advantages

Or Outsource to Further Reduce Internal

Investment

dking

Build out on three steps, total, 1st bridge, and then second outsource


Today’s Provider Options

Manufactures w/ Services Arm

- PBX, gateway, router, or server products

Traditional Systems Integrators Value Added Resellers Network Services Providers w/

Systems Integration Arm Traditional Consulting Firms

Emerging Category: Total Solution Provider


Total Solution Provider

Strong Core Products and Applications Life Cycle Services Capabilities Extensive, Collaborative Services Delivery

- Provide Access To Sophisticated, Scarce Technical Expertise

Experienced at Controlling Startup/ Ongoing Costs

Current In Technology Developments While Controlling Technical Risk

Deliver World Class Performance With Clear Objectives, Accountability, And Control

Create Consistency Across A Decentralized Environment


Evaluation Criteria

The Path to Acquiring Solution Providers Technology Vision

- Platform / Applications

- Road Map

- Historical Acid Test

Market Viability- Financial Stability

- Experience

- Ability to Execute

Go-To-Market Strategy Weighted on Services / Solutions- Capability

- Differentiator


Solutions Approach

Assessment Evaluation and Documentation Readiness

Consult - Ability To Approach Need From A Business Requirement Perspective

Strategy Formulation Recommendation and Prioritization

Design and Development Platform Applications Network Integration

- WAN/ LAN - Wireless/ Fixed - Security Requirements- TDM, Hybrid, IP


Solution Provider Competencies

Ability To Deliver Multiple Technologies- Act as SPOC, Single Contract, PMO, Rates, Skills

Methodology- Consulting- Assessment- Architecting- Scoping- Project Management- Practice Expertise

Delivery- Engagement through Implementation- Project Management

Managed Services- NOC, Sparing, Break / Fix- Voice and Data


Case Study - Municipality

Mid-sized city experiencing hyper growth required a communication system to accommodate current needs and future growth

Implementation – Phased Approach- Establish Network Performance Baseline

- Replaced PBXs with Integrated IP Network

- Connected City Service Departments

Results - Enhanced Customer Service

- 25% reduction in annual spend

- Eliminated Internal Rewiring by Half

- Improved Network Capacity


Case Study - Healthcare

Large Hospital Network Needed to Connect 40 sites Onto A Single, Integrated Network to Provide Improved Patient Care

Implementation - Hybrid IP System and video integrated into data

infrastructure

- Upgraded Network for enhanced QoS Result

- Proactive Management of Network

- Streamlined Network Administration

- Reduced Equipment and Maintenance Costs

- Supports Advanced Application Requirements


Case Study – Higher Education

College Needed To Enhance Communication Infrastructure To Support Increases Student Population And Campus Expansion

Implementation – Phased Approach- Hybrid IP System integrated into existing data

infrastructure

- Unified Messaging, Wireless, Soft Phones, E911 Result

- Improved Network Administration

- Deployment of New Applications

- Enhanced Student Services

- Reduced Equipment Through Soft Phone Deployment

- No Disruption of Communications System


Case Study - Financial

Large Financial Services Firm with $827M in Assets and 23 Branch Locations Wanted to Improve TCO and Customer Experience

Implementation- End-to-end IP Network for Voice, Data and Video

- “Virtual Agent” and Unified Messaging

Results- Improved Customer Experience Through

Multiple Access Points (Call Center to Contact Center)

- Substantial Month to Month Savings; 17.5 Month ROI

- XML Application With Current Interest Rates Displayed on Phone


Case Study – Food Services

National Restaurant Chain Wanted to Utilize Communications Network To Drive Additional Revenue Through its Take Out Business and Build Differentiation Across its 600+ Properties

Implementation- IP Communications Infrastructure

- Designed a Voice Response Unit Matching Customer’s Needs

- Integrated IVR to the POS database

- Personalized Service through Real-time Customer Information

Result- Customer Experience Improved

- Ease of Order Placement and Accuracy

- Revenue Generation

- Implemented Call Ahead Reservation System


Conclusion

Market And Technology Driving Change Convergence is Complex Changing Capabilities of Vendors New Partnerships Are Formulating Services Skills are Critical Support Demand Increasing

- Daily Business Priorities Vs. IT Needs

- Economics: Labor, Training, T&E

- 7x24x365 Vs. In House

Total Solution Provider is the Answer

Market And Technology Driving Change Convergence is Complex Changing Capabilities of Vendors New Partnerships Are Formulating Services Skills are Critical Support Demand Increasing

- Daily Business Priorities Vs. IT Needs

- Economics: Labor, Training, T&E

- 7x24x365 Vs. In House


Thank You!

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