Transforming Business Through Voice over Internet Protocol “VoIP” Presented by: Edward Cunningham May 17, 2007

“The important dividing line... will be between those who see VoIP as just a new way to do the same old things and those a new way to do the same old things and those who use it to rethink their entire business.” Using VOIP to Compete September 2005

VoIP (Voice over Internet Protocol) What does it Mean?  Telephone Calls delivered through Internet  Share Network Capacity with Data  Issues of Contention for Bandwidth  Two Tin Cans and Some String?  In 2005, 85% of all Businesses Networks-Not Ready The Problem: Voice is Perishable Voice is Perishable Has to Compete with Data Has to Compete with Data Voice Quality Suffers if not Given Priority Voice Quality Suffers if not Given Priority

This is Why… Convergence of Voice & Data: Lower the Cost of Doing Business Lower the Cost of Doing Business Opens the door to Tremendous New Capabilities Opens the door to Tremendous New Capabilities Transform how a business operates Transform how a business operates Better Align Businesses with Their Customers Better Align Businesses with Their Customers Can Make a Business More Profitable Can Make a Business More Profitable New Capabilities Not Completely New Capabilities Not Completely Envisioned until Experienced

Research Question: “Has the integration of Voice and Data Communications brought Unexpected Benefits to Business?”

Methodology: MN IA MO WI IL MI In-Person Interviews In-Person Interviews –7 Businesses –Broad Cross-Section of Industries Deploy Web-Based SurveyDeploy Web-Based Survey –32 Questions –Quantitative/Qualitative to 750 businesses to 750 businesses –C-Level Contacts & VP’s – > 1000 employees – Employees – < 250 Employees

ResultsResults  Of the 1,010 s sent, 381 were returned Erroneous addresses or…… Erroneous addresses or…… Vacation- Extended Absence Greeting Vacation- Extended Absence Greeting  629 valid contacts  47 Individuals responded to the survey Represents 7.5% of sample Represents 7.5% of sample  Seven (7) Individuals interviewed Their responses were added to total Their responses were added to total  All participants represent 8.5% of Population

Who Responded to the Survey? Mostly Small Businesses – 59% from < 500 Employees 80% of All Respondents < 1000 Employees

Survey said…. 67% of all Respondents have been at this for 2 yrs or less at this for 2 yrs or less

Uses Beyond Long-Distance  95% have Integrated & Calendaring with VoIP  60% have Distributed Call Center Expertise Across Multiple States / Time Zones Improving Customer ExperienceImproving Customer Experience  55% have Integrated Client Relationship Databases Resulting in Greater Cross-Selling OpportunitiesResulting in Greater Cross-Selling Opportunities  50% have Integrated Web-Conferencing with VoIP  40% have Integrated VoIP with Inventory Control & Manufacturing Production System “Has the integration of voice and data communications brought unexpected benefits to business?”

More Unexpected Benefits  Colleague Presence – Real-time View –Anytime, Anywhere, Any Device  Voice Quality Much Better than Expected –Maintaining Company Image  Integrate Web-Chat w/VoIP System for Better Call Center Agent Interaction with Customer  Conferencing for Collaboration, “a Snap”… - See Co-Worker Availability through VoIP Network  Happier Workforce –Employees Embraced Technology People Actually Offering Suggestions on New ways to use VoIP SystemPeople Actually Offering Suggestions on New ways to use VoIP System

More Unexpected Benefits  Searchable D-Base of Voice Recordings Eliminates Errors Eliminates Errors Checks & Balance Checks & Balance Critique and Training Critique and Training  Combine Web & Audio Conferencing Eliminated Outside Expense Eliminated Outside Expense Enhanced Company Image Enhanced Company Image  Remote & Mobile Worker Connectivity Enabled Flex-Scheduling /Job Sharing Enabled Flex-Scheduling /Job Sharing Always Connected for Customer Interaction Always Connected for Customer Interaction “Has the integration of voice and data communications brought unexpected Benefits to business?”

Dramatic Business Implications  Lower LD Expense > $300K 4-Digit Dialing World-Wide 4-Digit Dialing World-Wide  Lower Web-Conferencing Exp. > $50K  Integration with Accounting System Improved AR aging by 18% Improved AR aging by 18%  Integration with Subscriber Database Achieved $443K Incremental Revenue Achieved $443K Incremental Revenue  50% of Respondents Believed VoIP Positively Impacted Sales

Has the integration of voice and data communications brought unexpected benefits to business? YES – Unique Unanticipated Applications –Database Integrations –Proactive Notifications Inventory Control SystemInventory Control System Inviting Collaboration – Through Web ConferencingInviting Collaboration – Through Web Conferencing Plans for Future ApplicationsPlans for Future Applications – 46% Embed with Inventory / Prod. System – 30% Integrate Client Databases – 10% Planning to Build-out more VoIP Locations – 10% Incorporate into Web Applications

QUESTIONS?