Choose Wisely: Migrate Your Contact Center to IP Kevin McPartlan, VP Business Development Nuasis Corporation February 22, 2004

 Current contact center landscape  Why migrate to IP at all?  Distinctions in IP solutions  Network infrastructure migration to IP  Application migration to IP  Compelling reasons to move to IP  Migration planning Agenda

Glossary of Terms  CTI – Computer Telephony Integration  ACD – Automatic Call Distributor  TDM – Time Division Multiplexing  VoIP - Voice Over Internet Protocol  IPCC – Internet Protocol Contact Center  ROI – Return on Investment  Complicated and Time Intensive  Antiquated Costly Device  Traditional out-Dated Method  Very Obvious and Incredibly Powerful  Incredibly Powerful Contact Center  Real Obvious Impact

Traditional Call Center Model Vertical solutions - hardware centric/proprietary Proprietary Telephony Monolithic Proprietary Telephony Monolithic Generic Data Monolithic Generic Data Distributed IVRACDCTICRM Self-serviceCall RoutingDB AccessHelp desk,SFA Application Architecture Network HW Platform

ACD PSTN ACD Call Center Telephony Network CTI Hardware and Middleware Third Integration Layer Center Internet WAN Web Collab CRM Database WAN Corporate LAN/WAN DSL WAN CRM Database Traditional Call Centers Three tiers -- two networks + integration

VoIP

Hybrid-IP approach A point-to-point solution that is essentially an extension of the traditional circuit-switched infrastructure. It is classified as an IP offering through the addition of IP trunks and/or line cards. Two approaches to IP Source: Datamonitor Pure-IP approach An end-to-end IP solution built from the ground up with the intent that the solution will be wholly IP-based. The technology enables intelligent routing and centralized management of multi-site centers, while facilitating multi-channel communications over the single corporate data network. IP link IP-enabled PBX/ACD PSTN Internet PSTN Internet IP Corporate data network Customer

ACD PSTN ACD Call Center Telephony Network CTI Hardware and Middleware Third Integration Layer Center Internet WAN Web Collab CRM Database WAN Corporate LAN/WAN DSL WAN CRM Database IP Network Infrastructure Migration to IP looks familiar

IP can cut operational costs Cost reduction factors and potential savings Assumptions: three sites; 100 agents per site * Potential savings based on deployment of an IP contact center system, single IP network solution vs. two-network solutions IP network infrastructure migration factors Potential savings* Annual inter-site telephony charges Assume 3 T1s per 3 $1500 per T1 per month $ 162,000 Annual system administration Headcount reduction; centralized administration of 3 sites and fewer systems per site; $60K annual salary $ 120,000 Annual labor costs Assume $40K annual per agent; 15% labor reduction by networking multiple centers together $ 1,800,000 Annual support / maintenance / license contracts Compared against two-network systems with disparate media platforms, CTI hardware & software, duplicate site components. $ 80,000 CTI application deployments Hardware / software / professional services for CRM screen pop to agent desktop or intelligent call routing $ 750,000 ($250,000 per deployment) Annual CTI application agent productivity Assumes second reduced call times for 300 agents for 3 minute average call time. $ 1,200,000 Total Savings$ 282,000

HW Platform LayerGeneric servers, Linux, Windows, SNMP, UPS Network LayerIP, ATM, frame, QoS, RSVP, multiple routes, TDM Architecture LayerVoiceXML, VoIP, SIP, XML, SOAP, ODBC/JDBC Application LayerSelf-service, contact routing and queuing, SFA, help desk, analytics, ERP Business Unit Business & IT IT IP Enables the Horizontal Model Software centric – IP is the foundation

Internet WAN CRM Database Corporate LAN/WAN DSL WAN IP Contact Center & IVR IP application architecture Call Center Is a Killer Application for VoIP WAN  Phone, , and web on a single platform  CRM integration within hours vs. weeks or months  Agents anywhere  Multi-site management  Single point of administration across multiple sites  Consolidated reporting for all sites and all media  Clear cost savings unlike other applications  Reduction in the number of agents required in a multi-site configuration  Elimination of inter-site telephony charges  Elimination of CTI implementation costs  Reduction in network administration costs  Lower cost of system acquisition compared to proprietary legacy ACDs

IP applications offer more Application migration yields largest savings Assumptions: three sites; 100 agents per site * Potential savings based on deployment of an IP contact center system, single IP network solution vs. two-network solutions IP network infrastructure and IP application migration factors Potential savings* Annual inter-site telephony charges Assume 3 T1s per 3 $1500 per T1 per month $ 162,000 Annual system administration Headcount reduction; centralized administration of 3 sites and fewer systems per site; $60K annual salary $ 120,000 Annual labor costs Assume $40K annual per agent; 15% labor reduction by networking multiple centers together $ 1,800,000 Annual support / maintenance / license contracts Compared against two-network systems with disparate media platforms, CTI hardware & software, duplicate site components. $ 80,000 CTI application deployments Hardware / software / professional services for CRM screen pop to agent desktop or intelligent call routing $ 750,000 ($250,000 per deployment) Annual CTI application agent productivity Assumes second reduced call times for 300 agents for 3 minute average call time. $ 1,200,000 Total Savings$ 4,112,000

Customer Response Software Key to the Customer Relationship Strategy A Full-Spectrum CRM Software Solution Customer Relationship Management Multi-media contact routing Agent / resource activity reporting Real-time information Operations cost management  Software-based solutions for tighter integration of the contact points and the relationship data  Lower cost deployment of contact center solutions  Improved return on CRM investments Contact Center S/W Siebel, Oracle, etc. S/W Contact history Forecasting Tracking Knowledge base Customer Response Management ERP Kbase IVR

Contact Center SW Application Killer application for VoIP Customer Service Operating Costs  Customer access to the right response channel  Agent access to the right information for first contact resolution  Response via phone, , web consistent with customer expectations  Network centers together for labor efficiencies  Improve the productivity of agents providing live service  Reduce the cost of managing multiple customer service models

Migration Options

Convert TDM transport to VoIP Preserves investment in TDM investments Lowers the cost of telephony transport Lowers the cost of systems administration Software-only IP contact center Fast, low cost deployment of CTI apps Simplified channel integration (VoIP) Distributed multi-site routing (servers / software) Lower TCO Lowers the cost of telephony transport Leverages investment in existing CRM integrations Migration Paths Where to deploy each solution Develop a migration strategy based on TDM investment and the operational benefits Application Layer Network Infrastructure Layer

Creating a Migration Plan Considerations  Business readiness for delivery of a “consistent customer experience”  Network readiness for voice and critical CRM applications  Pure IP solution (application) vs. hybrid IP (infrastructure)  Ease of integration to enterprise applications (cost of CTI)  Complexity of user interface for agents and administrators  Mission critical system reliability

How Do I Get Started? Migration typically begins with an initiative  Business initiatives  Improved customer service  Consistent customer experience  Multiple media channels (voice, , Web, etc.)  Linking multiple sites Disaster recovery Line of business visibility  Decrease operations costs Outsourcing Offshoring  Technology initiatives  Move beyond PBX call routing  ACD replacement  IVR application  CTI Project (Screen Pop)  VoIP

Where Would I Start? What drives the decisions?  Application migration  Move a line of business that needs automation  Move a functional group that needs continuity across locations  Move an internal functional group e.g. help desk  Technology migration  ACD replacement at a site  CTI Project (Screen Pop) at a site  Replace inter-site trunking with VoIP

Making the Transformation Sample Checklist  Clearly define your strategy  Match your business strategy, technology strategy, culture, existing infrastructure, etc.  Select the approach that fits your environment  Understand mission critical nature of contact centers  Prepare for change  IT/Telecom  Business Ops  Collaborate in planning, design, implementation, and support  Assess and design network infrastructure (LAN/WAN)

IP Migration Urban Legends Fact or Fiction? “VoIP sacrifices voice quality” VoIP on a managed network with QoS is high quality; VoIP on the open Internet may not be “My network isn’t ready for VoIP” Many enterprise routers are enabled with QoS and only need to change configuration settings “VoIP solutions aren’t reliable” The network needs to be reliable, but some VoIP applications can recover from network failures “VoIP solutions aren’t secure” Security can be achieved – as part of an overall enterprise network security strategy

Next Steps Take action based on what you have heard  Determine how IP can make an impact for you  Business process strategy  Budgeted projects  ROI  Technology strategy  Architecture  Migration strategy  Investigation  Network readiness  VoIP system reliability  VoIP system quality

Choose Wisely: Migrate Your Contact Center to IP Kevin McPartlan VP Business Development Nuasis Corporation