Introducing IP Telephony into the Contact Center

1. Introducing IP Telephony into the Contact Center Al BakerVice President, Product ManagementSiemens Global eCRM Solutions

2. Outline • Why Talk about IP Telephony in the Contact Center? • What Types of IP Technology can be brought into the Contact Center? • What Can be Gained? • Today? • Tomorrow? • How Real is IP Telephony in the Contact Center Today? • What Should I do Next?

3. Setting the Stage Analyst Predictions • VoIP will account for ~75% of world voice services by 2007 Frost & Sullivan • 90% of Enterprises with multiple locations will begin switch over to IP in next 5 years Phillips Group • Enterprises will migrate voice from traditional networks to data networks and create a $16.5 billion dollar IP-PBX market worldwide by 2006 Allied Business Intelligence • Purchases of IP contact center solutions are expected to grow by more than 100% annually through 2004 Gartner Group

4. Challenges for Enterprise Businesses Relationship Value Multi-media Capturing & Leveraging Customer Information with Every Contact Providing fully integrated multimedia contact management Convergence Mobility Retaining Business Applications As Infrastructure Evolves Evolving from the Fixed to Distributed Enterprise

5. Meeting the Challenges Today…And Beyond Increase ROI Lower TCO Support Mobile Workers Enterprise Productivity & Profitability Build Responsiveness to the Market Renew Focus on Core Business 5

6. Controlling Costs: Top Challenge for Contact Centers • Survey taken at June 2002 Contact Center Users Group • Challenges facing contact centers in 2002 • Controlling costs: 75% of contact center managers • Finding ways to increase customer satisfaction • Decreasing agent turnover • Measuring ROI in a meaningful way to show bottom-line results. 

7. The Future of Enterprise Communications Technologies Future IP value creation will be based on business process productivity – and differentiation Communication Applications Enterprise Application Integration VoIP IP PBX Mid Term Long Term Current focus of IP value creation is on operating cost reductions and improvement of asset efficiency

8. Multi-Modal Communications Drives theWorkforce Productivity Revolution of theIP Network Convergence Era The Leader in Real Time Communications Communications Applications:Driving Productivity Leverage Presence and Instant Messaging for Interactions Independent of Media Type Maximize Effectiveness of Every Knowledge Worker’s Interactions Remove Barriers to Information Access (location and time)

9. It’s about value. Convergence is not about IP.

10. Outline • Why Talk about IP Telephony in the Contact Center? • What Types of IP Technology can be brought into the Contact Center? • What Can be Gained? • Today? • Tomorrow? • How Real is IP Telephony in the Contact Center Today? • What Should I do Next?

11. Moving to TDM/IP Convergence • Routing Servers • Reporting Servers IP LANS • Multi-Site • Network SCP • ASP offerings Backbone and Carrier Services • IP ACD/IP IVR • Branch Office • Remote Agents Enterprise Infrastructure • Web Chat • Voice over the Internet Front Office Internet Voice Over IP Applications

12. Average cost of customer contact $500+ $65 < $5 Field Visits Website Call Center IP Carrier Services: Senegales company takes French calls Source: Forrester Research Today 300 Senegalees agents are offering VoiP contact center services to French companies. In 3 years times, there will be 3000 agents!

13. Multi-Site Contact Center: Sears 5,000 Agents, 16 Call Centers Contact Centers HiPath ProCenter IP WAN

14. Converged Platform:Neue Zürcher Zeitung • Swiss newspaper, one of the oldest in Europe • Wanted to optimize workflow by extending it to include post-processing of customer requests • Fully IP-based multimedia contact center solution • Customers can contact the agents by phone, fax/email or via the NZZ homepage. • Efficiency savings eliminated the necessity for additional staff during peak hours • Resulted in annual cost savings of $268,016

15. Remote Agent: Aon • Corporate value - expansion of business - new markets • Moved from insurance to home warranty & auto warranty • New products to new customers. • Contact Center solution required expandability and flexibility • Agent skills key to routing • Segmenting calls to different agents • Reports now business transaction based • Detail related to these new markets • Remote agent capabilities • Cost control and labor savings • Ability to hire regional insurance agents that match the customers’ they serve

16. Web Chat: Land’s End

17. Outline • Why Talk about IP Telephony in the Contact Center? • What Types of IP Technology can be brought into the Contact Center? • What Can be Gained? • Today? • Tomorrow? • How Real is IP Telephony in the Contact Center Today? • What Should I do Next?

18. Number of Service Channels Used by Customers • Even with the collapse of many dot.coms, online retail continues to grow at an exponential pace • Research shows that online buyers use multiple channels of communication for customer service about these purchases Source: Forrester Research

19. Now: Web Collaboration Application • Customer clicks button to initiate live agent Web chat • No customer download or install required • Two versions of browser based application • JavaScript, Java applet • Means no install or configuration required • Ensures widest possible browser compatibility • Customer application easily customized to match enterprise Web site look and feel

20. Web Collaboration Customer Application Chat Transcript Customer can see pages “pushed” by the agent Customer Input

21. Web Collaboration Agent Desktop • Inserts agent standard greeting • Gives contact details: name, URL, start time • URL screen pop associated with call type • Library of standard phrases

22. Web Collaboration Media Library • Library of standard phrases and URLs speeds agent reply time and ensures accuracy and consistency • One click automatically inserts standard text or URL greatly reducing input time

23. Emerging: Voice Browsers: Motivation • More people today have access to a telephone than to a computer with an Internet connection • Voice interaction escapes the physical limitations on keypads & displays as mobile devices become smaller • Web access while keeping hands & eyes free • An advantage to people with visual impairment • The next generation of contact centers • Will become Voice Web portals to a company's services and websites, accessed via telephone or Internet

24. Voice Browser • Provides an “audio browser” • Access to text information that is available via standard web sites • Interaction via: • Key pads • Spoken commands • Listening to prerecorded speech, synthetic speech and music. • Typically powered by VXML

25. Applications can speak to the user via synthesized speech or by pre-recorded audio files Software can receive input from the user via speech or by the tones from their telephone keypad What is VoiceXML? • A dialog markup language designed for telephony applications

26. VXML Document VoiceXML-Based IVR Development Dynamically created scripts eliminate need for traditional IVR development Web Server Response HTTP Request IVR

27. VXML’s Role in the Contact Centers • User can transfer from a VoiceXML application to a customer service agent • Agent has the ability to view information about the customer collected during the preceding VoiceXML application • Ability to transfer a session identifier can be used to retrieve this information from the customer database

28. Tomorrow: Instant Messaging • It's faster than email for getting live assistance • It's two way • Customers don't have to disconnect from a web connection for an IM connection, if they have only a single phone line • Text dialogue is captured for an audit trail • Cheaper than a toll-free telephone number • User has access to web-based information during IM • Can be used to "push" requested information dynamically to a customer whenever the customer is connected

29. Instant Messaging Catching Fire • “Within 4 years, most corporate users of email will be using instant messaging.” • Corporate IM users will go from 18.3 million in 2001 to more than 229 million in 2005 according to IDC.

30. Presence Management • IM relies on Presence Management • Detects whether the target party is active on the Internet. • Allows a customer to determine if there is live assistance available at the moment • If not, can choose another form of contact, e.g., voice call or email • Contact center can exploit • Respond to a prior email request for assistance • Outbound customer campaign.

31. Outline • Why Talk about IP Telephony in the Contact Center? • What Types of IP Technology can be brought into the Contact Center? • What can be Gained? • Today? • Tomorrow? • How Real is IP Telephony in the Contact Center Today? • What Should I do next?

32. IP Telephony AdoptionInfoTech Study, 2000 versus 2001

33. IP Contact Center Adoption • “We’ve had a slower adoption of multimedia and IP contact center technologies in 2001, thanks to a weak economy.” • “You want to make sure is that you’re with a vendor that will keep you whole as the infrastructure underneath you changes…” • “You want to make sure that you’re not going to somebody that can only do TDM or IP, but one that can transition you across as the technology changes.” Technologies 2002: What’s Now and Wow?!ICCM Weekly, February 2002

34. Silicon Valley Headquarters 2,000 ports Production Showcase for Customers Full Business Operation – Business over IP Sales Marketing Development Product Management Siemens Skyport Facility 100 % IP

35. IP PBX IP PBX Wireless IP Phones PC Clients PC Clients IP PhoneClients IP PhoneClients Building 1 Building 2 802.11Access Point LAN IP Gateway PSTN WAN Contact Center NSC Mutimedia Messaging Server Network DataCenter Super Gateway Siemens Skyport Facility

36. Headend in the Sky “One of the reasons we’re already looking at the HiPath 5000 enterprise soft switch was the maturity level of the Siemens products versus the competitors. I sat through I can’t tell you how many presentations where people were saying ‘this is what we’re going to be doing in the future—this is what we hope to be doing next year.’ But when Siemens came in, they said, ‘This is what we’re doing right now.’” Jeff Hathcote Sr. Director of Network Operations AT&T Digital Media Center’s Headend in the Sky

37. Outline • Why Talk about IP Telephony in the Contact Center? • What Types of IP Technology can be brought into the Contact Center? • What Can be Gained? • Today? • Tomorrow? • How Real is IP Telephony in the Contact Center Today? • What Should I do Next?

38. “Trying to assess the true importance and function of the Net nowis like asking the Wright brothers at Kitty Hawk if they were aware of the potential of American Airlines Advantage Miles” Bran Ferren, Chief Imagineer, Walt Disney Company Predictions – A Word of Caution

39. IP: An Option Not to be Ignored “I see networked telephony continuing to replace traditional PBX systems throughout the decade. Any company facing outlays for telephone infrastructure should look at this technology. Compare vendors' offerings. Do the features offer you competitive advantage? Look at total costs over the life of the equipmentinstallation, service, expansion costs.” Joe Gagan, Senior Analyst The Yankee Group

40. Beyond Voice Over IP • Voice Over IP is Not the End-Game • Excellent Productivity Gains for IT Department • Strong Benefits to Networked Enterprises • Limited Benefits to End Users & Customers • Doesn’t Resolve Emerging Communications Problems • Conclusion • Current Benefits Are Significant But a Applications Will Drive The Productivity Revolution of the 21st Century

41. Computer Telephone Integration Converged Infrastructure Interactive Voice Response Automatic Call Distributor Workforce Management CRM App Integration Virtual Call Centers Web Collaboration Web Text Chat CUSTOMER SERVICE Expansion Strategies PERFORMANCE IMPROVEMENT Cost Reduction Strategies MARKET LEADERSHIP Web-Integration Strategies Contact Center Technology Migration Technology Advancement

42. What does your future hold?

43. Practical Convergence. Today.