1. Voice-Commerce Paul Awad Licca Chan Ben Kozak Katie Smith V-Commerce Nov 20, 2000 1 Presented by

2. Voice-Commerce 1. V-Commerce Overview 2. Underlying Technology 3. Case Studies 4. Demonstrations 5. Reality Checks and Observations V-Commerce Nov 20, 2000 2

3. … Access web content for the purposes of shopping, buying or obtaining customer service by speaking over the telephone or other connected device What is V-Commerce? V-Commerce Nov 20, 2000 3 Example: “TickerTalk” Sound Clip

4. TickerTalk V-Commerce Nov 20, 2000 4 System:Welcome to TickerTalk, a service of the Nuance Communications. Please say or key in your 6-digit account number. Caller: 854919. System: Say or key in your 4-digit pin number. Caller: 1234. System: In TickerTalk, you can get stock quotes, make trades and inquire about your portfolio. Begin a quote, simply say the company name. Say help for more instructions. Caller: How much cash do I have? System: Your account contains $76,722.10. Caller: Give me a quote for Tweedy Browne Global Value. System: Tweedy Browne Global Value Fund, 17.77, down 0.04. Caller: Montana Power. System: Montana Power Company, 52 1/8, down 5/8. Caller: Buy 275 shares at the market. System: Confirming. Buy 275 shares of Montana Power Company at the market. Is this correct? Caller: Yeah. System: Your order is confirmed and pending. I am ready for your next command. Caller: Sell all my Microsoft at 141 1/8. System: Confirming. For the day sell 75 shares of Microsoft at 141 1/8. Is this correct? Caller: Yeah. System: Your order is confirmed and pending. I am ready for your next command. Caller: Goodbye.

5. Voice Site vs Voice Portal Voice Site Individual enterprise site that allows customers to access its e-commerce content and services over the phone Examples: HSN, UPS Voice Portal A site that aggregates services as well as Internet-based content and make them available over the phone Examples: Tellme, ShopTalk V-Commerce Nov 20, 2000 5

6. User’s View Accessible Easy to use No need to go through annoying phone menu Flexibility Security Why V-Commerce? Business’ View Deliver self-service in an ubiquitous fashion Leverage back-end applications and knowledge base Better Customer Relationship Management (CRM) V-Commerce Nov 20, 2000 6

7. Speech In, Speech Out Common Business Server Speech In, Web Out Web In, Speech Out Common Types of V-Commerce Implementations V-Commerce Nov 20, 2000 7

8. Speech In, Speech Out Dialogue over the phone with a speech system Replace: »Touch-tone keypad »Live agents in call centres V-Commerce Nov 20, 2000 8

9. Common Business Server (Speech In/Out or Web In/Out) Offer the same information and transactional capabilities over the phone and the web through a common back-end Source: www.v-commerce.com V-Commerce Nov 20, 2000 9

10. Speech In, Web Out Users say their requests, response is displayed on screen Replace: keyboard and mouse V-Commerce Nov 20, 2000 10

11. Web In, Speech Out Users type in request and receive a voice response through the computer. Users click on a link on a web site, get connected to and converse with a live person. Voice over IP (VoIP) V-Commerce Nov 20, 2000 11 www.jcrew.com

12. V-Commerce Technology V-Commerce consists of: Telephony Platform Physical Layers Speech Technology E-Applications V-Commerce Nov 20, 2000 12 Source: www.v-commerce.com

13. What are we talking about? V-Commerce Nov 20, 2000 13 Source: www.zdnet.com

14. Applications Layers V-Commerce Nov 20, 2000 14 Source: www.v-commerce.com

15. V-Commerce Nov 20, 2000 15 VoXML Example Would you like coffee, tea, milk, or nothing? C (Computer): Would you like coffee, tea, milk, or nothing? H (Human): Orange juice. C: I did not understand what you said. C: Would you like Coffee, tea, milk, or nothing? H: Tea. C: (dialog then continues in document drink2.asp)

16. V-Commerce Nov 20, 2000 16 Speech Object Example // Instantiated a new Date object SODate date = new SODate(); //Set the initial prompt to be "What is your flight departure date?" date.setInitialPrompt(new PromptAtom("flight_departure_date")); //Invoke the SpeechObject SODate.Result dateResult = (SODate.Result)date.invoke(sc, dc, cs); // Print the result String month = dateResult.getMonthString(); int day = dateResult.getDayOfMonth(); System.out.println("The requested date was "+ month + " " + day);

17. How Speech Recognition Works V-Commerce Nov 20, 2000 17 Prefiltering (DSP) Echo Cancellation Feature Extraction HMM Text or Command Out Speech In Reference Audio Word & Grammar Models

18. Security / Attack Physical Attack Taping Attack “first *leg*” Attack V-Commerce Nov 20, 2000 18

19. Security / Protection BodyGuard TeleID Analogue Encryption V-Commerce Nov 20, 2000 19

20. first *leg* Attack A secure link is established between a trusted party and the user end who has his line treated with encryption equipment In this manner the link in between the trusted party and the user, the home link is 100% secure The encrypted call is de-scrambled [decrypted] at the PSTN switch and sent on through the public switch network V-Commerce Nov 20, 2000 20

21. Tele-I.D. The Tele-I.D. ™ card generates an ever changing Acoustic Identification Message, more secure and more convenient than traditional, Dynamic Passwords V-Commerce Nov 20, 2000 21

22. Encotone Tele-I.D. System V-Commerce Nov 20, 2000 22 Source: www.encotone.com

23. Transaction Certificate Customer identification Data Integrity Data Confidentiality Non-Repudiation Ease of Use Ease of Integration V-Commerce Nov 20, 2000 23

24. Case Study: Home Shopping Network BACKGROUND Established 1977 Today: 24 hour programming 74 million households 160,000 calls/day V-Commerce Nov 20, 2000 24

25. Case Study: Home Shopping Network CHALLENGES Database Security Customer Authentication Callers forgot their I.D. Developing 1:1 marketing V-Commerce Nov 20, 2000 25

26. Case Study: Home Shopping Network REQUIREMENTS Automation Security Personalized Shopping Experience V-Commerce Nov 20, 2000 26

27. Case Study: Home Shopping Network SOLUTION Nuance speech recognition/voice authentication software Phone number is access code Voice imprint identifies caller Eliminates need for PIN V-Commerce Nov 20, 2000 27

28. System:Welcome to the Home Shopping Network. Please tell us your home phone number. Caller: 902 422 1234 System: Thank you Carolyn. What would you like to do? Caller: I’d like to order the 10 karat gold ring. System: That’s the 10 karat gold ring on sale now for just $5,000 ? Caller: Yes. System: Thank you. We also have CD-R’s, 10 per package for $10. Would you like to order them? Caller: Yes, I’ll take two packages. System: That’s two packages of the CD-R’s for $10 per package? Caller: Yes. System: Thank you. We also have…. Caller: Oh stop this, I’m in a hurry! System: Do you wish to finish your order or do something else? Caller: Finish. System: Your total order comes to $5,020. May we charge this to your credit card on file? Caller: Yes. Goodbye. System: Thank you, Carolyn. Please call the Home Shopping Network again soon. Goodbye…. Conversation Example V-Commerce Nov 20, 2000 28

29. Case Study: Home Shopping Network RESULTS Time saved (20 seconds/call) Reduced costs ($1.9m/year) 95% accuracy Revenue increased 10-20% Apr ’00: 410,000 imprints Easier buying process Increased customer satisfaction V-Commerce Nov 20, 2000 29

30. Case Study: United Parcel Service BACKGROUND World’s largest delivery service 12 million packages/day ’98: $24.8b revenue Deliver 50% goods ordered online 240,000 tracking calls/day Tracking by phone preferred V-Commerce Nov 20, 2000 30

31. Case Study: United Parcel Service CHALLENGES Forecasted 10% annual growth Volume growth > support capacity Predicted longer customer holds 18-digit tracking numbers V-Commerce Nov 20, 2000 31

32. Case Study: United Parcel Service REQUIREMENTS Rapid deployment Alleviate backlogs Access/provide tracking info Scalable Maintain high customer service standards V-Commerce Nov 20, 2000 32

33. Case Study: United Parcel Service SOLUTION Nuance speech recognition software with integrated natural language capability Alphanumeric recognition ’97: Tracking System ’98: Extended to Pickup System V-Commerce Nov 20, 2000 33

34. Case Study: United Parcel Service RESULTS 120,000 calls/day; 1000 concurrent Tracking calls reduced 60-90 sec/call Pickup calls reduced 2 min/call 95%-99% accuracy Time to market: 4-6 months ROI = 3 months V-Commerce Nov 20, 2000 34

35. Benefits For the End User Accessibility Ease Of Use Security Availability Efficiency Personalization V-Commerce Nov 20, 2000 35 For the Business/Developer Reduced costs Increased revenue Improved ROI Protect Investments Efficiency Enhanced/augmented existing business Better CRM Expand Markets

36. Demos Tellme.com1-800-746-7825 ShopTalk.com1-800-555-TELL What do these web/voice portals offer? V-Commerce Nov 20, 2000 36

37. www.tellme.com V-Commerce Nov 20, 2000 37

38. www.shoptalk.com V-Commerce Nov 20, 2000 38

39. Reality Checks Lack of human interaction – speaking to systems Technical issues – wireless connections, keyword matching Language barrier V-Commerce Nov 20, 2000 39

40. More Reality Checks Learning curve involved Security Limited application Expensive for companies to implement V-Commerce Nov 20, 2000 40

41. Government OnLine (GOL) Elimination of digital divide? V-Commerce Nov 20, 2000 41

42. References & Readings V-Commerce Nov 20, 2000 42 References: http://www.v-commerce.com http://www.nuance.com http://www.edify.com http://www.vocalis.com http://www.syntellect.com http://www.encotone.com http://www.tellme.com http://www.shoptalk.com Readings: Speech gets down to business http://www.inquiry.com/pubs/infoworld/vol21/issue06/E06-06.html V-Commerce: Giving Consumers A Voice http://www.esummitintl.com/archives/99february/e-summit-Feb99- article1-textonly.htm