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

Michael StokesNetwork Consultant

Vertical Networks

Internet Telephony, MiamiFebruary 6, 2003

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AgendaAgenda

• IP-PBX features and functions

• The business benefits

• Initial roll-out planning

• Staffing: A critical component

• Implementation checklist

• Household International case study

• IP-PBX features and functions

• The business benefits

• Initial roll-out planning

• Staffing: A critical component

• Implementation checklist

• Household International case study

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IP-PBX Features and FunctionsIP-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

• 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

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The Business BenefitsThe 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

• 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

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IP-PBX *

T1 + 3 POTS

$7,020/year

$6,204/year

$7,107/year

$960/year

$21,291/year

Traditional Approach

64K frame/10 POTS

$9,840/year

$8,748/year

$9,330/year

$4,560/year

$32,478/year

WAN services

Access (WAN/POTS)

Usage (local/LD)

Annual Depreciation

Management

Total TCO

16-user Office

Lower TCO and High ROILower TCO and High ROI

ROI Analysis Per Office Access/Usage Savings $5,364Management Savings $3,600Capital Equipment Cost $14,028Payback 18 months

Total ROI (1500 office): 18-19 months

* Vertical Networks

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What Do IP-PBXs Enable You To Do?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

• 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

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IP-PBX Implementation:The PlanIP-PBX Implementation:The Plan

Needs Analysis

Budget RFP Deployment Schedule

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Client/Server (All IP phones w/ IP trunks)

“IP enabled” PBX (digital phones w/ IP trunks)

IP-PBX Implementation:The DesignIP-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?

• Will the existing infrastructure support the new solution?

– Cabling plant audit/site survey– Will the existing network have to be

re-engineered or upgraded?

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Where Do Companies Get into Trouble?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

• No network planning for IP-only solutions– Latency and packet loss– COS/QOS– WAN utilization– Traffic patterns– Policy servers– Back-ups

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Initial Rollout Planning: IP-PBXs at Branch SitesInitial 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

• 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

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Initial Rollout Planning: IP-PBXs at Branch SitesInitial 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

• 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

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Rolling Out Multiple Branches: Adequate Staffing is CriticalRolling 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

• 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

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Implementation Checklist: What You Want From Your ProvidersImplementation 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

• 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

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Implementation Checklist: What You Need InsideImplementation 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

• 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

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The Best Project Management Tools Are the Simple OnesThe 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

• 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

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Where Do Rollouts Run into Trouble?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

• Project rollout schedule timeline

• No thorough evaluation of Pilot rollout

• No Problem resolution paths

• Un-planned outages, or upgrades

• No change order process

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New Administration and Management ToolsNew 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

• 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

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Customer Example:Household International

Customer Example:Household International

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Household InternationalHousehold 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

• 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

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Challenge: Sales GrowthChallenge: 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

• 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

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$12M Project: Reinvigorate Branches$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

• 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

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Business Goals for Branch OfficesBusiness 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

• 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

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Technology Goals for Branch OfficesTechnology 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

• Interface to custom CRM application

• Leverage existing customer database and capture every interaction

• Increase data bandwidth

• Upgrade phone system

• Maintain/reduce support costs

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Implementation PlanImplementation 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

• 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

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2002 Branch Architecture2002 Branch Architecture

PUBLIC VOICE

NETWORK

HOUSEHOLD DATA

NETWORK

INTEGRATED COMMUNICATION

SPLATFORM

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Result: Bottom-line SavingsResult: 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

• 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

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Result: Sales Growth, Greater Competitive AdvantageResult: 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

• 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

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For More InformationFor More Information

• Visit www.vertical.com

Mike Stokesmikes@vertical.com

• Visit www.vertical.com

Mike Stokesmikes@vertical.com

Or call us at 800-826-6769Or call us at 800-826-6769