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

Steve Blood

There's No One Route to Building the Business Case for Unified Communications

Quantifiable BenefitsHistorical Data

Measurements (strong direct)Measurements (weak indirect)Measurements (with assumptions)

Pilots, TestingUser Trials

Software license bundling

Anecdotal argumentsSpecific examplesCase studies

Business Unit Sponsorship

Key Issues

1. What is Gartner's cost optimization framework, and how does it apply to unified communications?

2. Where should IT leaders focus their investments for cost optimization and business innovation?

3. What are the early examples of success, and how should these be communicated?

Joint Business and IT SavingsCost saving technologies in the business

Enable Innovation and Business RestructuringProcess improvement, restructuring, innovation

Build a Cost Optimization Framework for UC

IT ProcurementBest pricing and terms for your IT purchases

Align Technology With Business Need

Select Anchor Vendors Assess Vendor Influence

Cost Savings With ITOpportunities to reduce IT costs

Platform ConsolidationDesk Phone Displacement

DecommissioningToll Bypass for Video

Source: "The Four Levels of Cost Optimization"

Hot Desk/Home WorkingTravel Displacement

Energy Savings

Comms-Enable ProcessNew Comms ChannelsEffective Collaboration

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.

"The Miser:"The market area is a commodity. I just buy on price.

"The Optimist:"I have a primary vendor partner and consider my partner as the primary influencer.

"The Follower:"My vendor is my only trusted advisor. I never look at other alternatives.

Advantage to Vendor

Adv

anta

ge to

Ent

erpr

ise

1

24

5

3

"The Tactician:"I consider a number of tactical vendors when defining a solution.

Tangible Cost Saving Opportunities in UC

Voice

Confer-encing

IM/Presence

Messaging

Clients

Applications

Mobile

Fixed

Softphone

Web

Audio

Video

Rich Presence

IM

Persistent Chat

Unified Msg.

E-Mail

Voice Mail

Thin-Web

Thick

Mobile

Contact Center

Collaboration

Platform consolidation with IP telephony, replace desk phone with mobile, cellular bypass with soft-phone

In-house conferencing over hosting, Internet bypass of ISDN, desktop video, travel reduction

Corporate IM replaces consumer, IM reduces phone calls, voice mail tag

E-mail server consolidation, v-mail server consolidation, displacement of v-mail with Exchange 2007 UM

Desk phone replacement by soft-phone, consolidation of soft-phone clients

Displacement of IP-PBX with collaboration desktop, consolidation of contact center platforms

Core Area Technology Cost-Savings Opportunities

Joint Business and IT Savings — Target the Obvious, but Make it Stick

VS Don't try to eliminate travelTarget recurring meetings with video

Infrequent Flyer 2220 2342 4534 342S J Blood

Create a "frequent non-flyer" reward programEmphasize efficiency as well as cost savings

Set a new baseline for frequency of meetings

Link Cost Savings to Carbon Reduction

Vary the times of meetings for international groups to share the inconvenience

Enabling Innovation — People, Process and Technology

Process Exceptions Notifications SupportUrgent

Requests

Process automation demands a reduction in human latency

Notifications: SMS, Voice, E-mail

Two or more people are required to make a decision in different locations

Conferencing: Audio, Video, Web

Real-time information is required to reach a collective resolution

Collaboration: Work Spaces, Wikis

Stakeholders have different communication devices and needs

Rich Presence: Netbook, Smartphone

Key Issues

1. What is Gartner's cost optimization framework, and how does it apply to unified communications?

2. Where should IT leaders focus their investments for cost optimization and business innovation?

3. What are the early examples of success, and how should these be communicated?

Creating new products or services (innovation)

Increasing the use of information/analyticsImproving enterprise workforce effectiveness

Reducing enterprise costs

Improving business processes

Attracting and retaining new customers

Listen to the Boss … Listen to the Business

Network Imperatives:

Top Priorities for CIOs:

*Projected by GartnerSource: Gartner 2010 CIO Survey

Short Term:Get Efficient

Long Term:Innovate

• Mobilizing the Workforce• Adapting to Changing User

Expectations• Providing Services "in the Cloud"

• Cost Optimization• Integrating Communications

Into Business

64

521

2013*20102009

3

3

58

12

43

65

1

2

7

UC Road Map Starts With ConsolidationA B C D E

MobileFixed

Softphone

WebAudio

Video

Rich PresenceIM

Prstnt. Chat

Unified Msg.E-Mail

Voice Mail

Thin-WebThick

Mobile

Contact Ctr.Collaboration

CEBP

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.

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.

Continuously: Re-evaluate partner performance. Incrementally expand function and rollout. Use roles to define requirements. Organizational issues will be challenging. Evaluate how UC can produce

transformational change.

Voice

Confer-encing

IM/Presence

Messaging

Clients

Infra-structure

UC Project View

Voice

Confer-encing

IM/Presence

Messaging

Clients

Infra-structure

Common UC Projects- IP-PBX migration- Fixed-Mobile

integration- OCS/VoIP evaluation- Audio & Web integration- Video migration

- e-mail migration- Voicemail/UM migration

- Voice client evaluation- Smartphone integration

- VoIP Readiness Tests- Video Readiness Tests- LAN & WAN upgrades

- IM/presence deployment- Shared work space

Risk HighMedMed

- Large investments to migrate * - Multiple options & approaches- Organizational & migration issues *

* VoIP or Video readiness tests required

- Gradual scale-up reduces risk- Many options & bandwidth issues *

LowMed

MedLow

HighMed

LowMed

LowMedHigh

- Some security & adoption issues- Can deploy departmentally

- Major disruption & commitment - Architecture & requirements issues

- Can trial on targeted groups- New and untested applications

Comments

- Independent test services available- Can use LAN or dedicated services- Are the upgrades for UC only?

Use Roles to Build UCC RequirementsArchetypes (example):• Frequent Traveler• Infrequent Traveler• Campus Roamer• Deskbound

Communicator• Production

Sub-Types for:• Regions (coverage,

rates, availability)• Preferences• Deployment phase• Divisions/subsidiary• Other group variations

Employee Role

Special Roles:• Contact center agents• Drivers; delivery• Field service & support• Individuals w/special

needs or locations• Unique variations

UCC Functionsfor Roles

Messaging• E-mail/voicemail• Unified messaging• Wireless e-mail

Wireless Voice• Cellular phone • Smartphone (& apps)• Wi-Fi (campus) phone• Group push-to-talk

Conferencing• Audio/Web • Video conferencing• Desktop videoCEBP-Work process• Expert/resource locator• Notification application• Call/contact context

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)

Define roles & Sub-roles; then match vision/function to each.

Presence & IM• IM with partners• Expert locator

Fixed Voice• Single-number• Boss-secretary

UCC: Junction of Two Markets

"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.

Communications

E-mailUnified messagingWeb conferencingInstant messaging

Presence

Directory

TelephonyVoice mail

AudioconferencingWireless e-mail

VideoconferencingCall Center

Collaboration

Team workspacesWikisBlogs

Social softwareOther collaboration

tools

"UCC"

Key Issues

1. What is Gartner's cost optimization framework, and how does it apply to unified communications?

2. Where should IT leaders focus their investments for cost optimization and business innovation?

3. What are the early examples of success, and how should these be communicated?

Early Adopters of UCC Recognize Benefits in Productivity and Collaboration

"What were the 3 biggest improvements your organization experienced after deploying UCC?"

Survey of organizations larger than 100 users in Education, Financial Services, Retail and Healthcare, Fall 2009 (Multiple responses allowed; n=64)

Improved employee productivity

Improved employee collaboration

Improved employee access to information regardless of device/location

Improved communications for distributed sites

Improved customer service

Improved communications for mobile / remote workforce

Easier systems management and administration

Lower total cost of ownership (TCO)

Improved applications available

0% 10% 20% 30% 40% 50% 60%

Three Key Influencers in Business Process

Function (Process, BI, Application)

OrganizationSales, Manufacturing, Development

TechnologySAP, Microsoft, Oracle

Business Analysts

Business ArchitectsProcess

People

Org. Structure

Business Unit ManagersSales, Marketing, Manufacturing, Operations, Product Development Sponsorship

Communications-Enabling Medical Imaging

Collaboration

Context-Specific Presence List

Auto Logon

IM, Voice or Video Interaction

Expected Benefits• ~ 5%-10%

radiologist and patient throughput• Improved patient

care and shorter wait times

• Regulatory compliance

improvements*

*Available in next release

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*

Technosite Improves Employee Productivity and Reduces Enterprise Costs

The Challenge• Attract the Best Staff• Reduce Employee Turnover• Increase Productivity• Control Real Estate Costs

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

• Fulfillment of Social Responsibility

Telework initiative for disabled staff enables Technosite to hire talent from anywhere in Spain

The "being there" feelingMultipoint videoApplication sharingInternet co-browsing

Foolproof performanceTransparent for the userWork with Internet latency

AccessibilityScreen readersText-to-speechVPN access

McDonald's HR Department Addresses "Healthier Work-Life Balance" for Employees

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

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

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

Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via e-mail: vendor.relations@gartner.com. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

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

Steve Blood