Maximize Your UC Investments: From Cost Savings Through to Supporting Business Innovation

1. Maximize Your UC Investments: From Cost Savings Through to Supporting Business Innovation Steve Blood

2. There's No One Route to Building the Business Case for Unified Communications Quantifiable Benefits Historical Data Measurements (strong direct) Measurements (weak indirect) Measurements (with assumptions) Anecdotal arguments Specific examples Case studies Software license bundling Pilots, Testing User Trials Business Unit Sponsorship

3. Key Issues • What is Gartner's cost optimization framework, and how does it apply to unified communications? • Where should IT leaders focus their investments for cost optimization and business innovation? • What are the early examples of success, and how should these be communicated?

4. Build a Cost Optimization Framework for UC Comms-Enable Process New Comms Channels Effective Collaboration Enable Innovation and Business Restructuring Process improvement, restructuring, innovation Hot Desk/Home Working Travel Displacement Energy Savings Joint Business and IT Savings Cost saving technologies in the business Platform Consolidation Desk Phone Displacement Decommissioning Toll Bypass for Video Cost Savings With IT Opportunities to reduce IT costs Align Technology With Business Need Select Anchor Vendors Assess Vendor Influence ITProcurement Best pricing and terms for your IT purchases Source: "The Four Levels of Cost Optimization"

5. 3 2 4 1 5 Vendor Influence Curve for Best Pricing and Terms for Your IT Purchases "The Leader:"I understand my business and technical requirements in major areas of IT, and choose a key/strategic vendor for major initiatives that best meet those requirements. Advantage to Enterprise "The Optimist:"I have a primary vendor partner and consider my partner as the primary influencer. "The Tactician:"I consider a number of tactical vendors when defining a solution. "The Follower:"My vendor is my only trusted advisor. I never look at other alternatives. "The Miser:" The market area is a commodity. I just buy on price. Advantage to Vendor

6. Tangible Cost Saving Opportunities in UC Core Area Technology Cost-Savings Opportunities Fixed Platform consolidation with IP telephony, replace desk phone with mobile, cellular bypass with soft-phone Voice Mobile Softphone Audio Confer-encing In-house conferencing over hosting, Internet bypass of ISDN, desktop video, travel reduction Web Video IM IM/Presence Corporate IM replaces consumer, IM reduces phone calls, voice mail tag Rich Presence Persistent Chat E-Mail E-mail server consolidation, v-mail server consolidation, displacement of v-mail with Exchange 2007 UM Messaging Unified Msg. Voice Mail Thick Desk phone replacement by soft-phone, consolidation of soft-phone clients Clients Thin-Web Mobile Collaboration Displacement of IP-PBX with collaboration desktop, consolidation of contact center platforms Applications Contact Center

7. Infrequent Flyer 2220 2342 4534 342 S J Blood Joint Business and IT Savings — Target the Obvious, but Make it Stick Don't try to eliminate travel Target recurring meetings with video VS Set a new baseline for frequency of meetings Create a "frequent non-flyer" reward program Emphasize efficiency as well as cost savings Link Cost Savings to Carbon Reduction Vary the times of meetings for international groups to share the inconvenience

8. Enabling Innovation — People, Process and Technology Process Exceptions Urgent Requests Notifications Support

9. Key Issues • What is Gartner's cost optimization framework, and how does it apply to unified communications? • Where should IT leaders focus their investments for cost optimization and business innovation? • What are the early examples of success, and how should these be communicated?

10. Listen to the Boss … Listen to the Business Top Priorities for CIOs: 2009 2010 2013* Short Term: Improving business processes 1 1 2 Get Efficient Reducing enterprise costs 2 2 8 Increasing the use of information/analytics 5 5 3 Improving enterprise workforce effectiveness 3 4 7 Attracting and retaining new customers 4 5 3 Long Term: Innovate Creating new products or services (innovation) 6 6 1 Source: Gartner 2010 CIO Survey *Projected by Gartner Network Imperatives: • Mobilizing the Workforce • Adapting to Changing User Expectations • Providing Services "in the Cloud" • Cost Optimization • Integrating Communications Into Business

11. UC Road Map Starts With Consolidation Evaluate current products and plans: • Current inventory: Products, partners, business owners, stakeholders, plans. • Develop a communication "vision" to drive the business case. Evaluate your network and application infrastructure. A B C D E Fixed Voice Mobile Softphone Audio Confer-encing Web Identify strategic partners and road map: • Evaluate your partner's product directions, integration options and plans. • Fit your plan to vendor's plans and vendors' plans for interoperating with each other. • Select partners; define road maps, migrations and contracts; and start evaluations and trials. Video IM IM/Presence Rich Presence Prstnt. Chat E-Mail Messaging Unified Msg. Voice Mail Continuously: • Re-evaluate partner performance. • Incrementally expand function and rollout. • Use roles to define requirements. • Organizational issues will be challenging. • Evaluate how UC can producetransformational change. Thick Clients Thin-Web Mobile Collaboration Infra-structure Contact Ctr. CEBP

12. UC Project View Common UC Projects Risk Comments • IP-PBX migration • Fixed-Mobile integration • OCS/VoIP evaluation • Large investments to migrate * • Multiple options & approaches • Organizational & migration issues * High Med Med Voice Confer-encing Low Med • Audio & Web integration • Video migration • Gradual scale-up reduces risk • Many options & bandwidth issues * IM/Presence Med Low • IM/presence deployment • Shared work space • Some security & adoption issues • Can deploy departmentally High Med • e-mail migration • Voicemail/UM migration • Major disruption & commitment • Architecture & requirements issues Messaging Low Med • Voice client evaluation • Smartphone integration • Can trial on targeted groups • New and untested applications Clients • VoIP Readiness Tests • Video Readiness Tests • LAN & WAN upgrades • Independent test services available • Can use LAN or dedicated services • Are the upgrades for UC only? Low Med High Infra-structure * VoIP or Video readiness tests required

13. Use Roles to Build UCC Requirements Archetypes (example): • Frequent Traveler • Infrequent Traveler • Campus Roamer • DeskboundCommunicator • Production Sub-Types for: • Regions (coverage, rates, availability) • Preferences • Deployment phase • Divisions/subsidiary • Other group variations Special Roles: • Contact center agents • Drivers; delivery • Field service & support • Individuals w/special needs or locations • Unique variations Employee Role Wireless Voice • Cellular phone • Smartphone (& apps) • Wi-Fi (campus) phone • Group push-to-talk Conferencing • Audio/Web • Video conferencing • Desktop video CEBP-Work process • Expert/resource locator • Notification application • Call/contact context Messaging • E-mail/voicemail • Unified messaging • Wireless e-mail UCC Functionsfor Roles Presence & IM • IM with partners • Expert locator Fixed Voice • Single-number • Boss-secretary Define roles & Sub-roles; then match vision/function to each. Roles varyby industry(Vision doestoo) Healthcare: doctors/research; staff/nurse/lab; coordinators; housekeeping; clerical; maintenance; volunteers, special (security, contact center). Financial: Executive; mobile professional; home telecommuter; collaborative worker; back-office worker; shop-floor/warehouse; specialized (security, contact center). Government Social Agency: Executive; supervisors; fieldworker; clerical; specialized (call center, crisis center)

14. UCC: Junction of Two Markets Communications Collaboration Telephony Voice mail Audioconferencing Wireless e-mail Videoconferencing Call Center E-mail Unified messaging Web conferencing Instant messaging Presence Directory Team workspaces Wikis Blogs Social software Other collaboration tools "UCC" "UC" • UCC is evolving toward a composite market in which UC joins the collaboration market. • Some technologies remain distinctly in the realm of communications (for example, voice infrastructure, call centers and so on), while others remain distinctly in collaboration (for instance, team work spaces and social software). • By 2013, the UCC market will be well-established, removing these distinctions. • Mobile is everywhere.

15. Key Issues • What is Gartner's cost optimization framework, and how does it apply to unified communications? • Where should IT leaders focus their investments for cost optimization and business innovation? • What are the early examples of success, and how should these be communicated?

16. Early Adopters of UCC Recognize Benefits in Productivity and Collaboration "What were the 3 biggest improvements your organization experienced after deploying UCC?" Improved applications available Lower total cost of ownership (TCO) Easier systems management and administration Improved communications for mobile / remote workforce Improved customer service Improved communications for distributed sites Improved employee access to information regardless of device/location Improved employee collaboration Improved employee productivity 0% 10% 20% 30% 40% 50% 60% Survey of organizations larger than 100 users in Education, Financial Services, Retail and Healthcare, Fall 2009 (Multiple responses allowed; n=64)

17. Function (Process, BI, Application) Organization Sales, Manufacturing, Development Business Analysts Sponsorship Technology SAP, Microsoft, Oracle Process Business Architects People Org. Structure Business Unit Managers Sales, Marketing, Manufacturing, Operations, Product Development Three Key Influencers in Business Process

18. Process 1. Unexpected results found by radiologist 2. Use presence to contact doctor immediately 3. Radiologist and doctor conference/collaborate 4. Results communicated/acknowledged and, in the next release, can be recorded* Context-Specific Presence List Collaboration IM, Voice or Video Interaction Auto Logon Communications-Enabling Medical Imaging • Expected Benefits • ~ 5%-10% radiologist and patient throughput • Improved patient care and shorter wait times • Regulatory compliance improvements* *Available in next release

19. The Challenge Attract the Best Staff Reduce Employee Turnover Increase Productivity Control Real Estate Costs Technosite Improves Employee Productivity and Reduces Enterprise Costs Telework initiative for disabled staff enables Technosite to hire talent from anywhere in Spain Tangible Benefits • Ongoing Cost Savings • 40% saving in staff indirect costs • Office space reduced by 20% • Improved Staff Morale • Staff save 30hrs travel per month • Turnover only 2% (40% in industry) • Increased Productivity • Fewer sick days • 15% higher productivity • Fulfillmentof Social Responsibility The "being there" feeling Multipoint video Application sharing Internet co-browsing Foolproof performance Transparent for the user Work with Internet latency Accessibility Screen readers Text-to-speech VPN access

20. Project Objectives Reduce day trips for meetings Create spirit of cross-functional collaboration Track travel and communications costs Migrate from hosted to enterprise Live Meeting for lower costs McDonald's HR Department Addresses "Healthier Work-Life Balance" for Employees Results • Reduced travel costs by 12% • Lowered telephone costs by 3% • 64% of employees responded positively to Microsoft OCS deployment • 52% displace travel with on-line meetings using Microsoft OCS • Management report improved employee satisfaction and team productivity McDonald's European supply chain group is widely distributed across Europe

21. Imperative Action Plan • Next Week • Create a Center of Excellence for communications • Use cost optimization as an organizing structure to track current and future UC projects • Next 6 Months • Make new friends in the business to identify UC opportunities • Align UC with Collaboration initiatives for productivity benefits • Next 12 to 18 Months • Track cost-optimization programs in UC and communicate the impacts to the business

22. Maximize Your UC Investments: From Cost Savings Through to Supporting Business Innovation Steve Blood