2. The Real Value of a Speech Application Steve Pollock Co-founder and executive vice president TuVox, Inc.

3. Eliminates Frustrating IVR Maze For calling specials, call plans, and offpeak hours, press 1 To talk to us about your account, check your balance or make a payment, press 2 To arrange for your phone to be connected or if you're moving to a new address press 3 To report a problem or issue with your telephone line or mobile phone connection press 4 To discuss an existing Product or Service you have, press 5 To inquire about a new product or service press 6 Welcome to Company 12 34 12 34 56 1hold12 34 12 34 12 3

4. Compelling ROI for Successful Automation

5. What is a Speech Application? How may I help you? Natural Language Conversational Where do I need to go… What are my choices for… Help me find… I need to make an update… I need to complete a task… I need to…? How do I… What is the answer to… Help me solve a problem…

6. Conversational Speech Applications How may I help you? Bill payment Order status Product support Account info Catalog request Examples of Additional Speech Applications Vertical Applications Purchase products Conversational Open-ended Call Routing Perfect Connect … more Speech Applications

7. What is the Value to the Enterprise? Saves money Lower total cost of ownership Faster time to value Drives higher levels of automation Automates more calls: 25-90% Customers prefer over waiting for live agent Handles greater complexity New content updated in weeks not months Delivers customer satisfaction  Puts caller in control  Eliminates frustrating IVR maze  Seamlessly blends automation with agent

8. Blends Automation with Agents Agent Caller Info: ANI (555) 555-1212 DNIS 1234 Account Info: W1234-5678-9 DOB: 1/1/1970 Transaction Info: Confirmation: 1234-5678 Agent Info: Status: Platinum Order #: SC-55-33-11 Call Info: Wait time 1:30 Call history Call transcript Customer Data System Speech Applications

9. Speech Application/Technology Evolution Mirrors Other Markets Example: Web site development o Initially required bringing in custom site builders o Now buy applications with robust tools; i.e., shopping carts, up-sell/cross-sell engines o Small business can use pre-built apps without customization; i.e., Yahoo! stores o Enterprises need customized applications to maintain branding, meet business objectives

10. Speech Solutions 2002: Standards Emerge IBMScanSoftNuance Speech Engine Application Development & Management Microsoft Application Development & Management Telephony Platform VoiceGenie Avaya Genesys EdifyIntervoice

11. Speech Solutions 2005: Focus Shifts to Applications Application Development & Management Application Development & Management Telephony Platform Speech Engine

12. Speech Solutions 2007: Enterprise Software Model Application Value Increases Voice Infrastructure Application Development and Management Infrastructure Value Decreases

13. “Traditional IVR is in its twilight years” Datamonitor Traditional IVR … is in its twilight years, and will experience a year-on-year decline in shipment revenues through 2009. Revenues from traditional IVR shipments are expected to decline by more than 40% due to open- standards-based platforms and further price commoditization. In the next five years, Voice-XML revenues in the North American market will more than double, growing at a CAGR of 16.8%. Businesses are migrating to Voice-XML to bring advantages of web development and content delivery to IVR applications while reducing total cost of ownership. Traditional IVR Voice-XML

14. Moving from IVR as Point Solution to Speech Platform as Enterprise Utility Needs to be evaluated as part of the enterprise CRM strategy View the system as a utility for the organization to use Move from departmental solutions to enterprise-wide utility

15. Models for Deployment and Management Application Development & Management Platform In-HouseManaged Premise Hosted Little In-House Expertise Required Substantial In- House Expertise Required

16. Comparing Application Packaging Strategies Tooling TemplateProcess Simple Powerful Low Value Functionality VUI Component High Value

17. Traditional Custom Developed Speech VUI Design Application Development Prompt Production Back-End Integration Silos of development Quality Assurance Grammar & Application Tuning Grammar Development Substantial expertise required for each step in the process

18. Cost of Developing ONE Custom Speech Application with NL Interface and Directed Dialog Cost category Custom Application 3 year cost of tuning With TuVox3 year cost of tuning With TuVox HW *same ASR & VXML Platform same SW *$0$200K Total PS$840K$252$175K$68K Total TCO$1,092K$443 K-41% Custom PS cost is provided by Gartner for an Investment speech application – (stock or fund names/price/status) developed in 2 months by a platform vendor at a Fortune 50 company (96 ports) Annual cost of tuning custom speech applications are roughly 10% of initial development cost Data Source: Gartner In-House Custom Built Speech

19. In-House – Speech Applications Cost category Custom Application 3 year cost of tuning With TuVox3 year cost of tuning With TuVox HW *same ASR & VXML Platform same SW *$0$200K Total PS$840K$252$175K$68K Total TCO$1,092K$443 K-41%

20. What Skill Sets are Needed? VUI design Grammar development Application development Prompt production Back-end integration Quality assurance Grammar and application tuning

21. What Processes, Resources and Tools are Needed? Application Discovery & Business Case Development Application Lifecycle Management Processes o New Application Development & Launch o Continuous Improvement/Tuning o Update Management o Business Metrics Reporting Application Lifecycle Management Tools Internal and/or External Specialists

22. Managed/Hosted Speech Applications Sophisticated speech applications without traditional risks of costly deployments Pay per minute; no upfront costs, no hardware or software purchases Applications are portable across platforms; easily migrate to in-house model

23. Hosted Model: Lower Risk, Right Expertise Make sure the speech application is customized to your business Pay-per-minute usage is most cost-effective Ensure the migration path is easy Pay attention to frequency of tuning Application Provider

24. Best Practices in Choosing a Speech Application Conversational & Flexible Speech plus DTMF Integrates seamlessly to the live agent Personalization Lowers TCO Responds quickly to business needs Reduces the work Reduces specialized expertise Quality is built-in Open standards centric Fully open approach Easy integration High operational performance Caller ExperienceManageabilityTechnology Look for software that solves the key, persistent problems that have made speech unattractive in the past.

25. What to Look for in Speech Application Software Core Simplifications To Manage Dialogue, i.e.  Upgradeable VUI Components  Pre-built Application Modules Application Support Features:  Agent Integration  Grammar Generation Lifecycle Management Tools  Development  Testing  Tuning, etc.

26. Case Study: Activision Business Benefits: Increased call automation from 50% to 62% Web, email, and voice self-service automates 92% of customer issues Learn about customer behavior from the speech application Business Challenge:TuVox Solution: Serve customers, not be speech experts Increase agent productivity Improve customer experience On premise speech application Managed and tuned remotely by TuVox Costly “tips and tricks” calls automated

27. Case Study: Tivo Business Benefits: Decreased abandoned calls by 50% Fully automated 35% of calls Automated over 1 million calls per year Business Challenge:TuVox Solution: Minimal up-front costs Provide TiVo customers 24x7 technical support Handle post holiday call spikes Deployed and maintained by TuVox Leveraged web self-service content to create speech application Automated billing, activation and sophisticated trouble-shooting calls Hosted by TuVox

28. What is the Value to the Enterprise? Superior Caller Experience Callers prefer it to IVR or waiting for an agent Conversational Improves Customer Satisfaction Operational Efficiencies More Automation – 25%-90% Significant cost savings Rapid Time to Value Lower Total Cost of ownership Strategic Advantage o Analytics – Customer Insight o Brand consistency throughout channels o Revenue Generation – cross-sell