Reap the Benefits: A Guide To Effective Deployment of IP-PBXs

1. Reap the Benefits: A Guide To Effective Deployment of IP-PBXs Michael StokesNetwork ConsultantVertical Networks Internet Telephony, MiamiFebruary 6, 2003

2. Agenda • IP-PBX features and functions • The business benefits • Initial roll-out planning • Staffing: A critical component • Implementation checklist • Household International case study

3. IP-PBX Features and Functions • Packet and TDM switching • Multiple WAN/LAN interfaces • VoIP gateway • Voice mail and unified messaging • Auto attendant, directory services • Advanced applications: custom call routing, call center, IVR, connecting to back-end databases • Analog, digital, IP, and wireless phones • Web-based, remote management

4. The Business Benefits • Enhance customer experience • Deliver personalized, high-quality services • Attract and retain customers • Leverage technology investment • Extend corporate applications • Consolidate infrastructure • Optimize networks • Improve business processes • Measure customer contacts • Optimize personnel, resources • Cut management overhead • Increase competitiveness • Provide differentiated services • Generate revenue

5. ROI Analysis Per Office Access/Usage Savings $5,364 Management Savings $3,600 Capital Equipment Cost $14,028 Payback 18 months Total ROI (1500 office): 18-19 months Lower TCO and High ROI Traditional Approach 16-user Office IP-PBX * WAN services Access (WAN/POTS) Usage (local/LD) Annual Depreciation Management Total TCO 64K frame/10 POTS $9,840/year $8,748/year $9,330/year $4,560/year $32,478/year T1 + 3 POTS $7,020/year $6,204/year $7,107/year $960/year $21,291/year * Vertical Networks

6. What Do IP-PBXs Enable You To Do? • Lower costs • Circuits, networks, administration, maintenance, training • Detailed reporting across all your sites so you can make better business decisions, i.e. staffing, hours, call flow • Migration: options to next-generation with legacy protection • Consolidation of trunks, utilizing IP infrastructure • Extend your reach • Business reach closer to customers, partners and suppliers • “Appearance of One” across the distributed enterprise • Create unified and interconnected business telephony environment

7. IP-PBX Implementation:The Plan Needs Analysis Deployment Schedule Budget RFP

8. IP-PBX Implementation:The Design • Will the existing infrastructure support the new solution? • Cabling plant audit/site survey • Will the existing network have to be re-engineered or upgraded? Client/Server (All IP phones w/ IP trunks) “IP enabled” PBX (digital phones w/ IP trunks)

9. Where Do Companies Get into Trouble? • No network planning for IP-only solutions • Latency and packet loss • COS/QOS • WAN utilization • Traffic patterns • Policy servers • Back-ups

10. Initial Rollout Planning: IP-PBXs at Branch Sites • Clearly identify your objectives • Understand user and customer behavior • Analyze call patterns • Have realistic expectations about the roll out plan • Pilot. Pilot. Pilot. • User acceptance is critical • Identify training needs

11. Initial Rollout Planning: IP-PBXs at Branch Sites • Train staff who will support project • Have members from carrier, manufacturer, and implementer on project team • Have daily conference calls • Determine time frame of project • Determine pilot locations • Evaluate pilot success

12. Rolling Out Multiple Branches: Adequate Staffing is Critical • Project Management • Dedicated team to manage • Installation support • “Rollout Center” where trained staff assist in all phases of project • Customer support • From manufacturer, carrier, and customer for unseen problems • Implementation • Staging, installation, and training staff

13. Implementation Checklist: What You Want From Your Providers • Deployment plans from all parties involved in the roll-out: carrier, implementation provider and equipment vendor • Realistic/reasonable implementation timelines • A commitment from team leaders to a high degree of communication • Implementation provider who is up to the task • Dedicated equipment vendor account manager(s) • Training for various internal groups–help desk, installers • Project leadership: who does it, how it’s managed

14. Implementation Checklist: What You Need Inside • The right people on the project team • Realistic timeline • Well thought out phone requirements in the initial project plan • Installation support • Sufficient knowledge at your help desk • Adequate support in branch locations

15. The Best Project Management Tools Are the Simple Ones • Roll-out status spreadsheet or database: updated daily • Site specific databases • Daily status calls—a conference bridge helps • Support contract in place at the beginning • Detailed inventory at all phases

16. Where Do Rollouts Run into Trouble? • Project rollout schedule timeline • No thorough evaluation of Pilot rollout • No Problem resolution paths • Un-planned outages, or upgrades • No change order process

17. New Administration and Management Tools • Web-based collaboration of data • Microsoft shared point team services • Daily update of status • Spreadsheet/database of site installation • Shows successes and failures • With exact descriptions of why a site failed • Used for daily or weekly progress reports to upper management

18. Customer Example:Household International

19. Household International • Leading provider of consumer loan and credit products in U.S.and Canada • One of the largest dedicated networks in U.S. and Canada • 25 full-function call centers • 1500 consumer lending branch locations • Largest transaction processor in North America • Over 1,000 transactions per second

20. Challenge: Sales Growth • Complex marketing campaigns • Outbound customer solicitations from telemarketing call centers, Web, email, direct mail • No correlation with inbound calling to branch agents • No total view of customer contact • 5 million leads pumped to branches every month • 40% never converted to business • No model of top agents’ techniques • Sales goal for commissioned branch agents: 15-20% growth per year

21. $12M Project: Reinvigorate Branches • Turn branch network into 1,500 telemarketing centers • Integrate branch network with corporate CRM and lead-generation programs • Consolidate view of branch activity • Network utilization • Staffing • Productivity

22. Business Goals for Branch Offices • Tap revenue potential of each customer interaction • Better integrate and execute marketing campaigns • Mail, phone, Internet, and branch • Increase conversion rate of leads through proven models of customer contact • Improve business decisions with better reporting

23. Technology Goals for Branch Offices • Interface to custom CRM application • Leverage existing customer database and capture every interaction • Increase data bandwidth • Upgrade phone system • Maintain/reduce support costs

24. Implementation Plan • Initial plan - Pilot projects at forty sites allotted one month • Staged each site so it was 100% configured before it went on-site • Planned 20 sites per day • 4 days per week, with Friday as a cleanup day

25. 2002 Branch Architecture PUBLIC VOICE NETWORK INTEGRATED COMMUNICATIONS PLATFORM HOUSEHOLD DATA NETWORK

26. Result: Bottom-line Savings • Lower capital and setup costs • Simplified remote management and maintenance • Unexpected ongoing savings of $3K per branch per year on WAN services • $4 million per year! • Cost-neutral infrastructure upgrade • No depreciation • Bottom-line savings pay for project

27. Result: Sales Growth, Greater Competitive Advantage • 15-20% increase in branch agents’ sales productivity • Not needed in ROI model • Kept the gain in the operating plan! • Effective lead conversion • Integrated reporting and marketing data • New revenue streams

28. For More Information • Visit www.vertical.com Mike Stokesmikes@vertical.com Or call us at 800-826-6769