© m parker unicomm consulting 2014 collaboration-oriented need knowledge, ideas, creativity to...

Marty ParkerUniComm Consulting [email protected]

Lync Business Cases –What’s Hot / What’s Not

BVAL102

• Support your need to justify UC and Lync• Learn about a new, better strategy for

justifying UC • Forecast evolution of UC business cases

Goal for session

© M Parker UniComm Consulting 2014

• The changing business case• Three sources of ROI• The math of ROI• A new perspective: IOR• Future-oriented justifications• An easy ROI template

What we will cover


• VoIP justifications are mined out or marginal

• New issues concern CxOs• Apps are the new modality• Devices are the new desktop• Disruption is the new normal• Traditional ROI is passé – think IOR

The changing business case game


• Pin-point targeting• Specific returns• Specific user populations• Specific activities

• Extreme speed• Limited risk• Unbounded upside• Extensibility• Flexibility

The business case of the future


• Leverage core knowledge, competency

• Increased responsiveness to change

• Flexibility in the workforce• Increased ability to innovate• Unexpected competitors• Economic and regulatory factors

New CxO concerns


Employee effectiveness (UC-U)• Mobile, connected, informed, available• Usage Profiles – sequential transformations

Process improvement and innovation (UC-B)• Specific issues – use Lean Six Sigma methods• High volume activities and transactions• High value collaborations or exceptions

UC&C can focus on:


UC apps / CEBP: communications intensive Collaboration-oriented

Need knowledge, ideas, creativity to complete

Transaction-orientedNeed information or approvals to proceed

OR

High volume or high valueMajor value to even slight improvements

Complex or exception-basedValue from software and info assistance

OR


Lower communication costs• Ethernet backbone instead of SIP trunks• Optimized cloud – premise hybrid solutions

Increased reach • Presence & IM & UC federation for clients, partners, supply chain• Presence & IM & UC federation for partners, supply chain

Granular platform approach• Fast re-configuration and deployment• Communications in optimal place and form

UC&C can also deliver…


What we will cover



Business optimization economics

Streamline the business processes!ROI comes from:• Going faster• Using less

• Labor• Materials• Assets• Overheads

• Differentiated solutions

Our focus: communications in business processes


1. Go faster

From To Change

Revenue

200 300 50%

Cost 100 150 50%

Expense

80 100 25%

Profit 20 50 150%

Time Period

Activity Activity

150% increase in profit with only 50% increase in cost;25% increase in expense


2. Use less

How?• Self-service• Lean Six Sigma• Less infrastructure

DIFF %-17 %

-3 %

-10 %-20 %

100 %


Lean Six Sigma

Eliminate waste in:1. Transportation2. Inventory3. Motion4. Waiting5. Overproduction6. Over-processing7. Defects

CEBP shows similar efficiencies in communication


OtherAirlines

Interline bags N Y

Assign seats N Y

Change fees N Y

Serve food N Y

Sell drinks Y Y

Travel agents N Y

Airplane types One Many

3. Be different


Major UC-B application categories

1. Optimize resource utilization

2. Accelerate transaction completion

3. Increase notification precision

4. Improve contact success

5. Automate communication processes

6. Speed information delivery

7. Enhance collaboration effectiveness


Application Case Study Examples Est. 3-Year ROI %

Optimize Resource Utilization

Help Desk: Find engineers via IM search to save 70% of time; 80% better service 69%

Accelerate Transaction Completion

Mortgage Company: Answer questions via Presence and IM ups capacity by 30K loans/year 198%

IncreaseNotification Precision

Utility Company: Reduce outage times via crew dispatch app using location, skills, rules 53%

Improve Contact Success

Branch Banks: Increase revenues and service via video access to banking specialists 197%

AutomateCommunication Processes

Insurance: Put IM in broker portal for field-specific chat; staff saves 30%, ups loyalty 84%

SpeedInformation Delivery

Tunneling equipment and services parts info & delivery via IM bot. Increase uptime, lower cell costs.

129%

EnhanceCollaboration Effectiveness

Oil Exploration: Reduce time and assets 20-25% for each exploration via built-in collaboration tools

297%












SpeedInformation Delivery

Tunneling equipment and services: Parts info & delivery via IM bot; increase uptime, lower cell costs

129%





































What we will cover



• Comparison method for major investments • Used by CFOs, CEOs, partners, legislatures• Understood by investors• Relates to profit margins and return on assets

• ROI expresses as a percentage• The percent is the “Internal Rate of Return” or IRR • Use IRR in Excel for this calculation

• Not the same as payback period• Payback is the time to get your investment back – before any return!

The math of ROI


Three major components • Return (the results)• Investment (the costs)• Time (from investment to return)

The math of ROI


The math of ROI

Return = $10Investment = $100Time = 2 years

Return ($)

Investment ($)

1n

$10

$100

2

= √.10 = .31 – 1 = -.69 = -69%

Return ($)

Investment ($)

1n

(Where n = number of periods being

measured)

Rate of return = (IRR)

- 1


To optimize …(as high as possible)

(as low as possible)

Return ($)

Investment ($)

1n

- 1(as low (fast) as possible)


The math of ROI

Return = $300Investment = $100Time = 2 years

Return ($)

Investment ($)

1n

$300

$100

2

= √3.0 – 1 = .73 = 73%

Return ($)

Investment ($)

1n


- 1(Where n = number of

periods being measured)

-1


The math of ROI

Return = $300Investment = $100Time = 0.5 years

Return ($)

Investment ($)

1n

$300

$100

.5

Return ($)

Investment ($)

1n


- 1

= √3.0 – 1 = 8.0 = 800%

.5

(Where n = number of periods being

measured)

-1


• To maximize ROI: • Increase return• Lower investment• Reduce time

• UC has great ROI potential AND• You can make this even better!

Recap


What we will cover



From ROI (Return on Investment) approach• “Justification” for a major investment• Vendor’s list of how to pay for the entire

system• Analysis of one large multi-year project

For optimal results, change perspective…

To IOR (Invest on Return) approach• Based on specific identified returns• Organization’s list of desired outcomes• Analysis of discrete projects or phases


Elements Returns

Invest Year 1 Year 2 Year 3 Year 4 Year 5 ROI

Entire UC System -100 27 45 57 62 62 35%

IM/Presence -10 5 10 15 20 20 89%

Conferencing -30 10 20 25 25 25 52%

VoIP Telephony -30 5 5 5 5 5 -6%

Phones -15 2 2 2 2 2 -12%

Mobility -15 5 7 10 10 10 43%

Applications (created by professional services or internal staff)

Resource locator -10 50 100 150 200 200 585%

Comm. in portals -15 20 30 40 40 40 166%

Comm. in LOB app -20 40 60 80 100 100 240%

New workflow -80 0 25 50 200 400 65%

Elements Returns


Entire UC System -100 27 45 57 62 62 35%

IM/Presence -10 5 10 15 20 20 89%

Conferencing -30 10 20 25 25 25 52%

VoIP Telephony -30 5 5 5 5 5 -6%

Phones -15 2 2 2 2 2 -12%

Mobility -15 5 7 10 10 10 43%

Elements Returns


Entire UC System -100 27 45 57 62 62 35%

Real world examples


Results-based investments % of Emp.

Optimize resource utilization 30% -13 52 103 155 206 206 478%

(Resource Locator +30% * IM)

Enhance collaboration effectiveness 30% -27 55 109 212 314 414 286%

(Comm. in Coll. + 30% * (IM + Conf.))

Accelerate transaction completion 30% -27.5 43 65 88 109 109 195%

(Comm. in LOB + 30% * (IM + Mobility))

Combine into a roadmap sequence …


Optimize resource utilization 30% -17.5 67 133 215 296 326 464%

Enhance collaboration effectiveness 30% 0 -27 55 109 212 314 282%

Accelerate transaction completion 30% 0 0 -28 43 65 88 181%

Cumulative Roadmap -18 40 160 367 573 727 413%

Still compelling even with 50% premium added to investment phase






Creating a results-based roadmapResults-based investments % of Emp.







Combine into a roadmap sequence …


Optimize resource utilization 30% -17.5 67 133 215 296 326 464%
















Results-based investments % Emp.





UC-U Value per user per year

Improve conferencing $3,034

Reduce wasted time $1,137

Eliminate Delays $1,005

Save Toll Costs $246

Reduce Admin TCO $43

UC-B Valueper user per year

Increase sales $115,909

Speed projects $95,000

Lower process costs $12,880

Cut operational costs $11,875

Drive transactions to mobile devices

$7,813

What value can UC deliver?


Roadmap: Modular, IncrementalRoadmap example: modular and incremental

Phase 1: Enhance service and sales: • Contact management• Mobile information delivery

Phase 2: Improve time to market: • Collaboration acceleration

Phase 3: Optimize operations:• Communications-enabled portals • Resource ID for problem solving


Example of roadmap planningPhase 1 Phase 2 Phase 3

Use Case

App Goal

Users

Approach

Elements

Resources

Budget Estimate

Possible ROI

Phase 1 Phase 2 Phase 3

Use Case Field sales /services

App Goal Sales and service capacity gains; cell expense savings

Users 200 sales400 services

Approach Mobility appPBX or desk

Elements Add mobility and IM services

Resources 2-4 serversGateway0.5 DBA0.5 Help Desk

Budget Estimate $100K capital$14 per user per month

Possible ROI +$10M / year revenue or-$1.3M / year expenses


Use Case Field sales /services Product development marketing


Faster to market; better fit to customer needs


300 developers50 product marketing


UC with collaborative workspace platformExtend desktop


IM, Presence, comm. and conferencing in collaborative workspaces


3 additional serversGateways.03 DBA.03 Help Desk


$60K capital$17 per user per month


+$30M / year new revenueor -$5M / year expense


Use Case Field sales /services Product development marketing

Manufacturing, orders, logistics


Faster to market; better fit to customer needs

Shorten supply chain; reduce asset use


300 developers50 product marketing

150 logistics, orders, production supervisors


UC with collaborative workspace platformExtend desktop

Embed IM, comm. into apps and websites; use best existing UC


IM, Presence, comm. and conferencing in collaborative workspaces

Existing UC tools plus CEBP integration


3 additional serversGateways.03 DBA.03 Help Desk

1 additional serverGateway additional ports0.2 DBA0.2 Help Desk





+$30M / year new revenueor -$5M / year expense

-$5.6M asset use or-$0.8M carrying cost

Est. ROI

165%

Est. ROI

335%

Est. ROI

168%


What we will cover



“Apps”*• Resource locator applications• Comm-enabling applications and portals with optimal UC tools• Comm-optimizing workflows• Comm-optimizing mobile apps

“Ops”• Conferencing / Collaboration / Social – internal, external, supply chain• Mobile/remote users via cloud or hosting• Mobile/PC client adoption• Streamline operations and organizations

Future-oriented “hot” justifications

* See “Top UC Apps – Now and Future” on Thursday at 9:00 AM in Copperleaf 8© M Parker UniComm Consulting 2014

Future-oriented “apps” justificationsCategory Application provides Potential returns

Resource locator applications

• Tools to find resources to maximize skills utilization, minimize transaction delays; preferably automated; possibly federated

• Reduce E:R for business processes• Faster transactions, increased

revenue• Better service, customer loyalty

Comm-enabling applications and portals and workspaces

• Optimal communication tools in context of users’ business apps and web interfaces

• New forms of self-service • Ways to incorporate best practices

• Reduce E:R for business processes• Shift to better methods (IM vs.

voice)• Better match to source of service• Differentiation

Comm-optimizing workflows and collaborations

• New UC methods to optimize workflows• Elimination of old comm. steps in

workflows• Info delivery to replace live

communication• Ways to incorporate best practices

• Reduce E:R for streamlined processes

• Faster transactions or collaborations to increase revenue, customer loyalty

• Differentiation

Comm-optimizingmobile applications

• Communications embedded in essential ‘apps’ on mobile devices to match users’ consumer-driven experiences and habits

• Same as above in more times, places

• Emphasis on certain usage profiles• May broaden labor pool


Category Application provides Potential returns










Comm-optimizing workflows and collaborations

• New UC methods to optimize workflows• Elimination of old comm. steps in

workflows• Info delivery to replace live

communication• Ways to incorporate best practices

• Reduce E:R for streamlined processes

• Faster transactions or collaborations to increase revenue, customer loyalty

• Differentiation
















Future-oriented “ops” justificationsCategory Application provides Potential returns

Conferencing/Social Internal, external, supply chain

• Interactive workplace environment• Additional work methods, in and

beyond org • New work delivery and tracking

options

• Improved E:R for unstructured work• Potential for increased innovation• Reinvented, simplified workflows

Mobile/remote users Via cloud or hosting

• Communication better matched to user locations

• Simple connections using available nets

• Increased transactions and revenue• Lower infrastructure and UC costs

Mobile/PC client adoption

• UC core functions on every device• Platform for comm-enabled apps

• Lower cost; more flexibility for comm-enable apps, workflows, and mobile to deliver benefits

Streamline operations and organizations

• Integrated, efficient system operations and user support

• Likely lower cost of operations• More flexibility to create optimal

workflows, usage profile support





options






Mobile/PC client adoption

• UC core functions on every device• Platform for comm-enabled apps

• Lower cost; more flexibility for comm-enable apps, workflows, and mobile to deliver benefits





options










options


Major justifications for UC application ROITwo approaches:1. Remove delays to multiply benefits2. Streamline transactions or collaborations


1. Remove delays to multiply benefits

Example: 25% reduction in collaborative process (products, sales cycles, projects, etc.)

Assume: Prior cycle time of 6 months; benefit = $20M revenue ($6M margin) per cycle

(benefits per process or workflow)

X

$6M1 - .25

- 1

(benefits per process or workflow)

Return $ =(per cycle)

X

1

1 - % reduction in process or workflow completion time

- 1 = $2M per cycle ($4M per year)

1

1 - % reduction in process or workflow completion time

Return $ =(per cycle)


1. Remove delays (continued)

Annual return = $4M / year (from previous slide) Estimated Investment:

• UC Collaboration Platform for 10 engineers: $40/month/engineer = ~$5K/year ($15K / 3 years)

• Integrate collaboration tool into development or exploration apps = ~$250K• Lead time to implement = 6 months

3-year IRR = =2.5 x $4M

$250K + $15K

13

1 = 235%

1


2. Streamline transactions or collaborations

Example: Replace 5 phone calls with one IM skills search and .3 phone calls per trouble ticket

Assume:

[savings of labor and costs per transaction or

collaboration event] X

[number of events that occur per period]

• Phone call = 3 minutes of labor

• IM Search = 1 minute of labor

• 3520 tickets / month (10 help desk engineers)

• Labor = $60 per hour

Return $ (per period)


Return $(per period)

X

= [(3 x 5) – (1 + .3 x 3)]

Old labor:5 calls @ 3 min/call

New labor:1 min IM search +

3 calls @ .3 min/call

3,520 = 46,112 min/month = $46,112 per month, Number of events

per period

or $553K per year

=

2. Streamline transactions, collaborations (continued)Annual return = $553K / year (from previous slide) Estimated Investment:

• IM with search for 100 engineers: $10/month/engineer = ~$12K/year ($36K / 3 years)• Include skills in directories; integrate search widget with IM into ticketing system =

~$250K• Lead time to implement = 6 months

3-year IRR = =2.5 x $553K

$250K + $36K

13

1 = 69%

1


What we will cover



IRR =

• Identify the return

• Determine the investment

• Do the math

An easy IOR / ROI template

Type of return How to quantify

Streamlined transactions (payroll and /or costs saved per transaction) x (no. transactions/period) x (no. periods)

Faster collaborations (value produced by each collaboration cycle) x (no. additional collaborations per period) x (number of periods)

Simple savings (net savings per period) x (number of periods)

Type of investment How to quantify

Recurring costs (cost per user per period) x (# of users) x (number of periods)

One-time costs (equipment and facilities) + (system integration (internal or external))

R/I 1.25 1.50 2.00 2.50 3.00 5.00 10.00

3-YR IRR

7.7% 14.5% 26.0% 35.7% 44.2% 71% 115%


• Application-specific IOR replaces system-wide ROI

• Search for comm-related return opportunities• In lines of business• Three approaches: Go faster, Use less, Be different• Come to Apps session: Wednesday at 9 AM, Copperleaf 8

• Create modular roadmaps• Less risk• Shorter time-to-return• Higher IOR and ROI• Claim thought leadership in UC&C

Using IOR for (Lync) Success

BEST OF

SUCCES

S!© M Parker UniComm Consulting 2014

Questions?

Lync Business Cases –What’s Hot / What’s Not

Thanks!!

Marty ParkerUniComm Consulting [email protected]

Monday, February 17th

Exhibit Hall Hours 6:00pm – 8:00pm

6:00pm – 8:00pm Welcome Reception

Tuesday, February 18th

Exhibit Hall Hours 8:00am – 9:00am (Breakfast), 10:30am – 5:00pm

8:00am – 9:00am Breakfast (Exhibit Hall) 9:00am –10:30am General Session10:30am – 5:00pm Expo Hall Hours11:00am – 12:15pm Sessions & Hands-on Labs12:15pm – 2:00pm Lunch2:00pm – 5:00pm Sessions & Hands-on Labs5:00pm – 7:00pm Ask the Experts

Wednesday, February 19th

Exhibit Hall Hours 10:30am – 4:30pm

7:30am – 8:30am Breakfast8:30am – 11:30am Sessions & Hands-on Labs10:30am – 4:30pm Expo Hall Hours11:30am – 1:00pm Lunch1:00pm – 5:45pm Sessions & Hands-on Labs6:30pm – 9:30pm Attendee Party

Thursday, February 20th

Exhibit Hall Hours 9:00am – 12:00pm

8:00am – 9:00am Breakfast9:00am – 12:00pm Expo Hall Hours9:00am – 12:15pm Sessions & Hands-on Labs12:15pm – 1:30pm Lunch and Departures

Ask the ExpertsLocation: Meal Hall located on Level 1 in Pinyon Ballroom 4-8 Tuesday, February 18

TABLE TOPICS:Best Practices, Business Value, Clients & Mobility, Lync Meetings and Video, Lync Online, Networking, Platform, Server & Manageability, Voice, Lync Feedback Sessions

Meet face-to-face with the foremost experts in the Lync field and ask them the questions that have you stumped.

Location: Breakout rooms located on Level 1 5:00pm-7:00pm

GROUPS INCLUDE:Manageability – Pinyon 2Meetings & Web Experiences – Bluethorn 4-6Mobility – Bluethorn 7-9Presence & Chat – Pinyon 1Voice & Video – Bluethorn 1-3

Come participate in targeted Feedback Sessions to hear about the high-priority feature asks and help us improve the next release!

Lync Feedback

These sessions are meant to be informational, providing an understanding of the workload and conversational, to discuss your user scenarios and desired improvements.

Birds of a FeatherBirds of a Feather flock together! Join daily breakfast discussions of relevant topics by sitting in the separately designated areas of the Meal Hall. Seating will be sorted in a different way for each Birds of a Feather breakfast:Wednesday, February 19:Where are you from? Asia/Pacific, Eastern & Central Europe, Latin America, Middle East & Africa, US (West, Central & East) and Canada, Western Europe

Thursday, February 20:What is your interest?Best Practices, Business Value, Clients & Mobility, Lync Meetings and Video, Lync Online, Networking, Platform, Server & Manageability, Voice

#LyncConf14

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/microsoft-lync

/MSFTLync

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Fill out evaluations to win prizesFill out evaluations on MyLync or MyLync Mobile.Prizes awarded daily.

© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

© m parker unicomm consulting 2014 collaboration-oriented need knowledge, ideas, creativity to...

Documents

parker unicomm consulting

im search

increase uptime

im bot

im ups capacity

speed information delivery

better service

resource utilization