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A Roadmap to Convergence

A Roadmap to Convergence. - and all points between. Introductions. Ken VanDerHorst, VP Sales & Marketing Over 30 years in the communications industry managing technical consulting organizations and technical sales and marketing teams for national firms, including his own.

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A Roadmap to Convergence

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  1. A Roadmap to Convergence - and all points between

  2. Introductions • Ken VanDerHorst, VP Sales & Marketing • Over 30 years in the communications industry managing technical consulting organizations and technical sales and marketing teams for national firms, including his own. • Mark A. Goettling, President • Over 22 years in technical, financial & operational management as a senior manager of international technology service, integration and finance organizations.

  3. Objectives • Market trends • Benefits of IP Telephony • Drivers of IP Telephony • CMAP Process • Case Studies – Business Impact and ROI • Consultant evaluation criteria • Question and answers

  4. Market Trends • IP is the “lingua franca” of communications • Expansion of “bundled” offerings to businesses • Physical layer thru integrated access, metro Ethernet & MPLS • Service layer with local, long distance, wireless at fixed MRC • Accelerated adoption of IP telephony • Within the enterprise and carrier networks to lower cost • QoS is no longer a barrier to entry • Extension of the enterprise PBX functionality • IP Centrex, mobility applications & unified communications • Manufacturers are NOT investing in TDM-PBX • The choice is no longer YOURS

  5. Hard-dollar cost savings • Single Network • Maintenance, Cabling, Administration, Support, Power, Moves/Adds/Changes (MAC’s), Staff • Voice Business Continuity • Integral component to an effective voice business continuity plan • Can be compared against other less effective plans • Voice message backup/restore • Reduced Call Costs • Reduced mobile phone usage • Extension Portability Campus Roaming, Home Office, Other Location • Outbound Call Management • Unified Messaging • Audio Conferencing • Small Branch Office • Centralised Call Processing • Elimination of voice trunks • IP Toll Bypass • No on-site PBX • Reporting, Billing, Cost Management • Cross-Enterprise telecom reporting • Predictability of telecom bills • Reduced PC Costs • IP phone can replace a web-enabled PC or laptop Real Benefits of IP Telephony Benefits that are real, but difficult to quantify Productivity increases that can be quantified • Cultural Enhancement • Customer Satisfaction • Employee Retention • Geographic Flexibility • Competitive Positioning • Faster Application Deployment • Voice Business Continuity • Difficult-to-Quantify Productivity via Converged Applications • Employee Productivity • End User Applications • Audio Conferencing • Unified Messaging • Personal Assistant • Web Access • Computer Telephony Integration • IT Operations • Facilities Mgmt Ops

  6. Maximizing ROI on “Network” InvestmentBusiness Drivers • Lower the cost of “network” ownership • Reduce overall network infrastructure costs • Reduce application integration costs • Reduce ongoing network administration costs • Fully leverage existing network investments • Enhance business communications to create strategic value. • Improve employee productivity • Increase Knowledge Sharing • Enhance customer service • Enable employee mobility Companies must:

  7. Competitive Advantage • Better customer service & response • Better collaboration • Mobility and teleworker gains • Higher productivity • Speed to market Expanded Benefits Improving Business Productivity • Business Resilience • Disaster recovery • Security Drivers To IP Telephony • Lower Costs • Reduce mgmt costs • Move, add, changes • Lower cabling costs • Toll bypass Initial Benefits Reducing Cost

  8. CMAP™ (Convergence Migration Assessment Process) • Assess and document current voice, video, data networks and cost components • Capture critical strategic and operational business goals • Plan migration path, leveraging existing technology investments and strategic business direction • Design and simulate proposed converged environment(s), including Pilot Programs • Prepare hardware and software bill of materials (BOM) • Compute ROI and financial analysis • Provide project management, implementation & support

  9. CMAP Work Flow Process

  10. Case Study #1 - Business Requirements • Multi-site consultancy with 1,600 users • Overall growth ≈ 1.0% per annum – no international • NPV five year forecast - useful life of solution 7 years • Replacement or renew 60 month PBX lease • Improve contact center customer sat & reporting • Reduce overhead across US locations • Return based on identified savings and reductions • Three options evaluated and analyzed: • Continue with current PBX solution? • Migrate from PBX to IP Solution over 3 years? • Replace PBX solution with IP solution in 1 year?

  11. Case Study #1 - Cost Savings and Reductions

  12. Case Study #1 - Decision Matrix

  13. Case Study #2 - Business Requirements • Mid-sized City of over 500,000 citizens • Overall growth ≈ 6.0% per annum • NPV five year forecast or less • Predominately Centrex & (3) Nortel Enterprise PBX ‘s • Improve contact center customer sat & reporting • Reduce overhead and monthly communications cost • Return based on identified savings and reductions • Three options evaluated and analyzed: • Continue with current mix of Centrex and Nortel PBX? • Upgrade core Nortel PBX to IP Solution leveraging owned PBX? • Replace Centrex and PBX solution with IP solution?

  14. Case Study #2 - Cost Savings and Reductions

  15. Case Study #2 - Decision Matrix

  16. Case Study #3 - Business Requirements • Northeastern $30 billion bank w/300 branches • Overall growth ≈ 12.0% per annum • NPV five year forecast or less • Mix of Centrex & (2) PBX - headquarters & ops center • Lower contact center costs & improve customer sat • Reduce overhead and monthly communications cost • Return based on identified savings and reductions • Three options evaluated and analyzed: • Continue with current mix of Centrex and Nortel PBX? • Upgrade core Nortel PBX to IP Solution leveraging owned PBX? • Replace Centrex and PBX solution with IP solution?

  17. Case Study #3 - Cost Savings and Reductions

  18. Case Study #3 - Decision Matrix

  19. Consultant Evaluation(What to look for in your communications consultant?) • Technical expertise and knowledge • Do they understand & design voice, video & data networks? • Operational experience • Do they provide procedural improvement recommendations? • Financial background & tangible ROI • Do they understand ROI, budgetary & cost allocation issues? • Project management expertise & methodology • Do they ensure high quality/low cost conversions & implementations?

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