Ibm social uc roi elements jan2012


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Ibm social uc roi elements jan2012

  1. 1. IBM Collaboration Solutions Social UC ROI Elements SOCIAL UC ROI ELEMENTS Exploring Return On Investment Scenarios Inspired By IBM’s Social Unified Communications January 2012 By Thierry Batut Program Manager Unified Communications South West Europe IBM Software Group IBM Social Business and Collaboration Solutions Software Contact: Page 1
  2. 2. IBM Collaboration Solutions Social UC ROI Elements Page 2
  3. 3. IBM Collaboration Solutions Social UC ROI ElementsTable of ContentsIntroduction......................................................................................................................................................................4UC and Social Business: More in Common Than You Think........................................................................................... 5 Social business delivers real business value..............................................................................................................5 Why Social Business and Unified Communications are linked?................................................................................. 5Why companies need to think about Unified Communications & Collaboration?...........................................................10 Communications Enables Business Processes & Applications.................................................................................11The business value of implementing a UC² strategy - the analyst view......................................................................... 12ROI examples from customers using IBM Sametime................................................................................................... 15ROI Elements – two case studies.................................................................................................................................. 17 ‘CarParts’ - the Workplace for Change..................................................................................................................... 17 IBM, the Sametime ROI story................................................................................................................................... 20Green Computing ROI................................................................................................................................................... 22Customer Contact Center ROI.......................................................................................................................................23Video Communications ROI.......................................................................................................................................... 28 VIDEO is ready for business.....................................................................................................................................29 BYOD is changing the game.................................................................................................................................... 30 What about real ROI?............................................................................................................................................... 32 Desktop Video ROI from IBM................................................................................................................................... 33Sametime Unified Telephony ROI..................................................................................................................................34Call to action and conclusion......................................................................................................................................... 37Resources for further exploration.................................................................................................................................. 38Sources......................................................................................................................................................................... 39 Page 3
  4. 4. IBM Collaboration Solutions Social UC ROI ElementsIntroductionBy now there is sufficient and independent evidence that there is an ROI on Unified Communications andCollaboration or UC². The objective of this paper is to explore how customers realize cost savings and revenue gainsfrom implementing and integrating with Social Business strategies. We will explore which ROI and TCO categories areresponsible for the largest contribution either in savings or revenue gain. By doing this we want to inspire you to thinkabout how your company can benefit from Unified Communications.More often than not ROI discussions are either far too generic to be believable – “product X increases productivity” -or over optimistic - “product Y will reduce travel costs with 75%”. In contrast, this discussion is infused with realexamples of actual benefits observed in businesses all over the world.The objective is not to discuss Unified Communication products or features, nor are we talking about IP andConverged Networks. This is about the Social Collaborative Desktop and its positive impact on business. Asking‘What is the ROI on UC?²’ is a valid but too broad a question. We break it down into measurable ROI elements.We will start with a short overview of IBM Social UC in the context of global trends and organizational developments.Well review expert opinion by market analysts. After that we will dive straight into concrete business examples. Nextwe will perform a deep dive into ROI benefits with two case studies – an automotive parts company and IBM. Videoand Telephony have their own unique benefits and we will review various aspects of these solutions. One area ofbusiness is very conducive to ROI elements, namely Customer Contact Centers. This paper would not be completewithout mentioning Green Computing especially as IBM is considered a leader in this space.The ROI categories we review are the key elements we encounter when talking about the value of Social UC. Thecustomer examples are based on real-life experience. Of course each client situation will have a somewhat differentset of capabilities and benefits.We have found very similar results in all of our use cases. The following 6 categories or ROI Elements haveconsistently delivered ROI and/or cost reductions for customers: 1. Process optimization 2. Communications 3. People Productivity 4. Access to knowledge & information 5. Competitive Advantage 6. Travel Page 4
  5. 5. IBM Collaboration Solutions Social UC ROI ElementsUC and Social Business: More in Common Than YouThinkSocial business delivers real business valueBecoming a social business requires a long-term, strategic approach to business culture, executive leadership, aneffective corporate strategy, and organizational ability to recognize and design for transformation.Organizations that successfully transform into social businesses are enabled by an optimized workforce, intelligentsales, strengthened operational controls, increased product and service innovation, and deepened customer care andinsight.The results from those already on the journey to becoming a social business show: • 90% of respondents report measurable business benefits from Web 2.0 tools, including better access to knowledge, lower costs of doing business, and higher revenues (McKinsey Global Survey 2010) • Standout organizations are 57% more likely to allow their people to use social and collaborative tools (IBM CHRO Study 2010)Why Social Business and Unified Communications are linked?New social models are changing the way businesses operate but social interactions tend to be asynchronous. UnifiedCommunications makes it possible assemble the team, regardless of location and make a decision.A social business becomes engaged, transparent and nimble by activating networks of people to apply relevantcontent and expertise to improve and accelerate how work gets done. Unified communications (UC) is a criticalcomponent of your strategy to become a social business because UC provides an immediate and cost-effective way totake action across your extended organization. IBM Sametime software is IBM’s platform for unified communicationsand collaboration. It provides a core set of synchronous (real-time) communication services that make it easier to find, Page 5
  6. 6. IBM Collaboration Solutions Social UC ROI Elementsreach and collaborate with colleagues, customers and business partners. IBM Business Card is providing both Social Business and leverage Sametime status and capabilitiesSametime software offers the following features: • Rich presence helps you easily and quickly find the people you need through online status, availability, automatic location awareness and available telephony status. • Security-rich, enterprise class instant messaging can reduce phone and voice mail costs while providing an unobtrusive way to engage with colleagues who are otherwise unavailable. • Online meetings with audio and video conferencing help reduce travel and enable remote workers to engage with their colleagues. • Integrated Voice over Internet Protocol (VoIP) and high-quality desktop video deliver a more interactive, collaborative experience and lower telephony costs. Bandwidth management tools make rich media collaboration feasible by constraining overall audio and video bandwidth in your network, leaving bandwidth available for mission-critical applications. • Community collaboration can save you hours by making it possible for you to find and interact with experts in the organization you didn’t even know and keep in touch with customers, partners, family and friends. • Mobile device support gives you access to people and information even when you are on the road. • Out-of-the-box integration with IBM Lotus, IBM WebSphere and other IBM software as well as Microsoft products quickly adds collaboration to the products people use most often, promoting adoption. • Open application programming interfaces (APIs) and an extensible client provide communications capabilities to users wherever they work, improving productivity. • Optional one-number phone service, softphone and call management capabilities deliver next- generation voice capabilities through your existing telephony infrastructure. Sametime software delivers these services, and because Sametime software embraces open standards, it also delivers services from hundreds of IBM Business Partners through a unified user experience. Moving among text chats, voice and video calls, and online meetings is seam- less to the user and driven by what is most effective for the task at hand. Page 6
  7. 7. IBM Collaboration Solutions Social UC ROI Elements IBM Sametime is bringing real-time interactionsSametime software-based unified communication and collaboration solutions typically pay for themselves in less thana year based on hard-cost savings alone. Our clients have been able to: • Minimize travel costs for internal meetings and reduce travel for external meetings. • Reduce or eliminate expensive monthly subscriptions to hosted web conferencing services. • Slash their telephony costs by shifting calls to text, voice chats or VoIP phone calls through Sametime software. • Avoid exorbitant cell phone roaming and hotel access charges on international trips. • Lower call center costs by chat enabling customer service sites. • Save on infrastructure costs by opting for low-end Internet Protocol (IP) phones with Sametime soft- ware instead of high-end devices. • Postpone expensive PBX migrations. • Lower maintenance and real estate costs by enabling staff to work from home. • Reduce telephony costs for remote employees,(for example, eliminating second phone lines for home offices).Lower audio conferencing costs through in-house, ad hoc conferencing. • Eliminate the need to pay for third-party softphones and the connection fees associated with these softphones.Of course, the real power of unified communications is in its productivity gains. Human latency is the time we losewaiting waiting as we identify others who can answer questions, waiting for email or voice mail to be returned, waitingwhile teams get organized to tackle a project. Human latency leads to lost sales, unhappy customers and decisionsbased on inaccurate or incomplete information. With Sametime software-based unified communication andcollaboration solutions, our clients have: • Spent less time trying to find people who can answer questions and more time being productive. • Lowered customer service and help-desk costs by more effectively resolving issues. • Driven more sales by speeding approvals and answering customer questions faster. • Speed project completion across dispersed teams. • Provided better employee work-life balance through the ability to work virtually anywhere. • Acquired better talent by removing location as a limiting factor. • Evolved a more collaborative culture across teams around the world or on different floors of the same building. Page 7
  8. 8. IBM Collaboration Solutions Social UC ROI Elements IBM Sametime integration supports both MS Outlook, MS Office and MS SharepointSocial software solutions are becoming a bigger part of the tool set for todays companies. A report from analyst IDCstates that worldwide revenue for the social platforms market was US$369.7 million in 2009, representing growth ofmore than 55 percent. Gartner predicts that "by 2014, social networking services will replace e-mail as the primaryvehicle for interpersonal communications for 20 percent of business users."According to an IBM survey, 98 percent of CEOs need to restructure the way their organizations work. Overfive hours is wasted per employee per week due to inefficient processes. Two hours is spent per employeeper day looking for the right information and expertise within an organization. IBM Sametime is providing Social Business real-time interactions and accelerate the ROI. Page 8
  9. 9. IBM Collaboration Solutions Social UC ROI ElementsFor companies using... Sametime softwares built-in integrationIBM Lotus Notes and IBM • Online awareness and enterprise instant messaging for any Lotus NotesLotus Domino software- or browser-based Lotus Domino application. • You can run the full IBM Sametime client within the Notes environment.IBM Social Networking • Online presence awareness for Connections communities and (IBM Connections) • Sharing communities between Connections and Sametime clients.Microsoft Office applications • Online presence and geographic location awareness as well as instant access to the full range of Sametime capabilities directly from Microsoft Office. • New integration with Microsoft Office 2010 supports the Office Ribbon model.Microsoft® Outlook • Online presence and geographic location awareness as well as instant access to the full range of Sametime capabilities directly from Microsoft Outlook in-boxes. • Microsoft Office calendar users can schedule a Web conference, along with a meeting, directly from their Outlook calendar.Microsoft Sharepoint • Online presence and geographic location awareness as well as instant access to the full range of Sametime capabilities directly from Microsoft® Sharepoint sites, without any modifications to those sites.IBM WebSphere Portal & IBM • Online presence awareness and enterprise instant messaging for PortalCustomer Experience Suite applications, which deliver a point of personalized interaction with applications, content, processes and people.Your application • IBM Sametime now offers a new zero-download Web client built on a new Web 2.0 toolkit that makes it easier for businesses to embed Sametime capabilities into their applications and Web sites. Additionally, the zero-download Web client makes it easy for external users to participate in meetings. • IBM Sametime Unified Telephony REST API provides click-to-call and click-to- conference semantics, allowing a call to be established between a registered user and one or more IBM Sametime contacts or external phone numbers.In the marketplace for more than 10 years, Sametime software is a mature, proven and highly scalable product withdeployments ranging from tens of users to more than 400,000 users. And with the recent releases of IBM Sametime8.5 and IBM Sametime Unified Telephony software, IBM continues to push the pace of innovation in unifiedcommunications. Page 9
  10. 10. IBM Collaboration Solutions Social UC ROI ElementsWhy companies need to think about Unified Communications & Collaboration?Technology changes our traditional means of communications. A written communication can be an email, an instantmessage, a voice message (perhaps translated from voice to text), a blog alert or a notification from an application orother business system. Making calls is no longer only the domain of the telephone. Multiple devices can be used tomake calls, a desktop phone, a mobile phone, a PDA or your PC.These types of advances in communications technology create opportunities for business innovation and improvedflexibility and responsiveness. Innovative approaches in business communications and collaboration directly addresstoday’s critical business challenges. Customers now have a unique opportunity to move from a disjointedcommunications system to a state-of-the-art, unified, collaborative environment enabling new business processes withSOA based applications [Communications Enables Business Processes and Applications] Instant Messaging VoIP Web 2.0 SIP Presence SOA Conferencing  Web  Audio  Video WiMax High speed Broadband Directory ServicesBusiness is global, interdependent, virtual and matrixed. They operate with dispersed teams. Reporting lines do notlogically follow the formal organizational model. Centers of competence are located around the globe supporting theobjectives of the entire corporation. People work in (virtual) teams to support clients. Existing tools and capabilitiesare being used in new ways. Communication can be a key barrier or an enabler. Converged networks allowcompanies to implement innovative ways to focus on communications as an enabling tool.Innovation is great, but it also creates many questions. How fast can your business model shift to adapt to clientrequirements? How can you stay competitive in an ever changing environment? Does your voice and data networkkeep-up with your end user requirements? Your clients and end users want to access data and talk about it togetherwith someone else. Can you do that with a seamless end-to-end capability? Do you have the need.....? Page 10
  11. 11. IBM Collaboration Solutions Social UC ROI ElementsCommunications Enables Business Processes & ApplicationsTechnology is available today that can help create efficient and effective business processes. Legacy systems needto be integrated with the new environment. Converged communications assumes combining voice and data networks.The objective of Communications Enabled Business Processes (CEBP) therefore is to communications enableapplications and business processes by integrating advanced communication capabilities directly in the software thatpeople use for their day-to-day tasks. End-user devices Handheld devices Desk phones with with voice, data, PCs or laptops with voice, data, presence, presence and voice, data, presence, messaging and video messaging messaging and video Communication tools E-mail and Collaboration tools Information access personal information  IP Telephony management  Presence  Directory lookup  Fixed/mobile  E-mail  Instant messaging  Information portal convergence  Contacts  Audio conferencing  Enterprise  Unified Messaging  Team rooms applications  Calendaring  Video telephony  Scheduling  Discussion forums  Online learning  To-do lists  Wikis and blogs  Voice-driven directory/  Memo pad  Web conferencing information lookup  Video conferencing Collaboration applications available for the usersHere are two real world examplesFirst, an IBM technical support representative recently received an urgent support call from an IBM customer in Korea.The customer didn’t speak English and our support rep didn’t speak Korean. But he has options:• using a Sametime plug-in that instantly translates English into Korean and vice-versa allowed him to provide a basic initial response;• using Skill Tap – a Sametime feature – he sent a realtime request for help to an expert community. A bilingual IBM employee responded and agreed to join a call and translate — helping to solve the customer’s problem.Second, imagine the following not unusual situation; a report is due in two hours. You need clarification on an issuetoo complicated to work out over Instant Messaging or email. With IBM Sametime you check your contact list to seewho is available to help. You can see instantly who is online, available and not on the phone. You click to start a voicecall using your integrated softphone. You do not know it but the colleague your are trying to reach is traveling. Due tothe one number service the call is automatically routed to the mobile phone. Contact is made and you did not evenhave to know where the person is or what number to use in order to establish contact. Page 11
  12. 12. IBM Collaboration Solutions Social UC ROI ElementsThe business value of implementing a UC² strategy - the analyst view.In this section we put the spotlight on some pertinent research by analysts, marketing and other commentators. Weexplore findings from Forrester, Aberdeen Group and Siemens – the latter of course is not a market analyst companybut they sponsored a very valuable market study.In general the analysts seem to agree that the potential for cost reduction in converged networks arises from theelimination of unnecessary infrastructure duplication. Although some redundancy is desirable in order to meetreliability objectives there are unjustifiable costs associated with duplicate equipment for separate data, voice, andvideo networks, duplicate management for these networks, duplicate sets of support personnel, and duplicate facilitiescosts (for example, cabling, floor space or cooling).But there are more gains to be realised. This is not only about infrastructure costs. The analysts clearly widen thescope to other areas such as collaboration, end-user satisfaction and general communications benefits. This goesback directly to points we raised concerning employee effectiveness and the positive effect UC² has on internal andexternal collaboration.In summary the analyst community points us to following benefit categories:• Reduction in overall operations cost.• Improved, more efficient company-wide communication.• Much improved end-user and client satisfaction.• Overall improved access to information.• Improved competitive position.• Reduced cost of travelMany people will be skeptical when analysts or service companies predict savings of X amount of Euros. Its not somuch that the numbers are not true, its trying to make them specific to your company that is the issue. Page 12
  13. 13. IBM Collaboration Solutions Social UC ROI ElementsAs we will discover below and in our case study in the next chapter the numbers we quote are based in reality. Wealso recognize that no matter what we say here, every customer case is different and customers will only know whattheir ROI potential is when they plug-in their own numbers in the ROI calculator. One thing people tend to agree on –you can’t afford to do nothing.“Measuring the Pain: What is Fragmented Communications Costing Your Enterprise?” -Siemens studyThis Siemens sponsored study was the largest-ever survey of enterprise and contact center employees and thereforeworth calling out here. It reveals the silent but staggering costs of fragmented communicationsEnterprises with 1000 employees could be losing up to 13M Dollars per year. Total lost and avoidable expense canrange from $6K per person per year for a company with 500 employees to $12K per person per year for a companywith 1,000 employees.The study tells us how this breaks out:• Waiting for information is expensive; the study estimates delays of 5.3 hours per week at an average annual cost of over $9000 per user.• The study counts approximately 11 days p/year of unnecessary or avoidable business travel and an annual waste of at least $3400 per person to “synchronize teams”.• 75% of companies incurred additional communication costs of +/- $1488/Year. These are additional expenses on top of typical travel expenses.Many companies are increasing their remote worker headcounts who on average spend 10% of their time workingfrom remote locations. Lack of effective communications can mean additional and often unmeasured financial sideeffects. Page 13
  14. 14. IBM Collaboration Solutions Social UC ROI ElementsThe Total Economic Impact - ForresterForrester takes a similar angle in their October 2007 study. They work on quantitative savings but they also identifyadditional benefits that deal with telephony savings, training and a travel expense and the important aspects ofattracting new employees.The new internet generations are entering the workforce. They expect to be able to use modern communicationstechnologies such as chat, video and audio conferencing, team and community spaces as well as expertise networks.These are capabilities they have been using online for years.Forrester also looks at customer services because of the clear relationship between rapid and quality responses andcustomer satisfaction, company image and revenue.Quantifiable ROI – Aberdeen GroupThe Aberdeen Group study of September 2007 further validates that their ‘best in class companies’ can deriveconcrete savings from adopting UC technologies - 33% of these companies report increasing ROI and almost 40%report increasing user satisfaction. Furthermore, between 17 and 29% of companies report that UC² has increasedrevenue. Performance Increases from Adoption of Unified Communications2 Page 14
  15. 15. IBM Collaboration Solutions Social UC ROI ElementsROI examples from customers using IBM SametimeTo validate the findings from the analyst community we delve into IBMs rich customer base. We can quote you manyexamples – here is a selection of the most pertinent ones as they illustrate cost savings and ROI examples in theareas we identified before.An electronics manufacturer saved $600K in airfare and travel costs and a grocery chain saved $520K on trainingusing online facilities instead of travel.We worked with a large insurance company and they calculated savings of $650K due to the reduction in phonecalls for 35,000 employees using instant messaging. They expect this to increase with the softphone capabilities inSametime. In addition they realized savings of $300K anually by switching from hosted webconferencing to Sametimewebconferencing allowing them to better control costs and usage.A global Retailer was able to add $750K/year to margins by reducing supply and order fulfillment disruptions.Traditional communications alone (phone and email) weren’t fast enough to help them streamline these time criticalbusiness processes.A large vehicle leasing company in the world created an internal social networking platform called LinkedPeople. Thecompany also implemented IBM Sametime software for instant, real-time collaboration and communication. Costsavings on reduced travel alone are able to pay for the entire solution, including licenses, implementation andmaintenance.When it comes to end user productivity, the ability to capture and share knowledge and to identify other employeeswith certain areas of expertise, who could then be contacted in real time for consultation on a wide range of topics isone of main factor for ROI in terms of sharing. This project has been capable to redefine existing business processes,optimizing the productivity of internal employees, which enabled the organization to do more business with thesame number of people.A biotech company in the US reported customer satisfaction gains by adding enhanced communications to theirapplications. They needed a better way to stay in touch with their manufacturing plants and customers who arelocated all over the world. For years the company had been relying on e-mail to communicate with its internationalcustomers as well as with its Korea-based manufacturing plant, but because of the large time difference,communication often took days to complete, straining the companys relationships and delaying ongoing projects Notonly has the solution improved their ability to communicate and collaborate internally, it has improved the companysability to serve its customers efficiently. The IBM Sametime software integrates flawlessly into the clients LotusNotes environment, which has allowed employees to leverage the software immediately and reap the benefits of real-time communication. And because employees can chat with customers, partners and colleagues around the world, thesolution has reduced their overall dependence on e-mail while improving communication. Page 15
  16. 16. IBM Collaboration Solutions Social UC ROI ElementsTwo examples in the automotive sector provide further insight. By using Sametime integrated into Portals a companysaw significant reductions in development cycles. They saved costs by centralizing information and reducingtravel costs for design meetings. Development teams could be more responsive and this in turn increased speed-to-production of new vehicle models.In Greece our Services teams communications enabled a web-based dealer network application for the nationaldistributor representing a large Japanese car manufacturer. Several interesting ROI elements have been measured,such as optimization of business processes, one of the ROI categories we identified in this paper: • 10% to 20% reduction in inventory levels at Dealer stockrooms • 30% faster fulfillment time on car orders (from 11 to 7 days) • 60% faster fulfillment time on spare parts orders (from 3 days to 1 day) • 90% reduction in rejected warranty claims by the manufacturer • 60% reduction in total cost of ownership (TCO) for IT • 69% reduction in dealers’ IT costs • Total elimination of false warranty claimsAnother US-based insurance company developed an easy-access communication system that allows agents toconduct most transactions via the Web. They leveraged the latest Lotus Notes and Sametime software, enablingagents to log in and do everything from viewing current policies and accessing rates to engaging in instant chats withunderwriters about specific policies. Lotus Sametime opened communication channels for sales people toimmediately contact underwriters. An agent sees the underwriters name on a policy and clicks on that name to begina chat. Both parties have access to the same policy via a link. As a result the company and its representatives can cutthrough clutter and delays to respond to customer needs by providing instant quotes. The company has dynamicallyincreased the exchange of information and ideas, bonding a scattered workforce via the Web. From an ROIperspective they reported the following results: • Cut policy turnaround time from weeks to a matter of days • 50% reduction in the number of internal phone calls • 40% less people needed for the same volume of businessFinally, a large outsourcing company was able to increase the productivity of its Customer Service Help Desk by20% over 2 years. Desk analysts can now efficiently tap expertise of thousands of experts worldwide. Quickcommunication on outages or other situations affecting customers further streamline their performance. Page 16
  17. 17. IBM Collaboration Solutions Social UC ROI ElementsROI Elements – two case studiesAsking ‘What is the ROI on Social UC’ is a valid question but so broad that it needs further precision. We prefer toanswer it by breaking it down into measurable ROI elements, some or all of which can be applied to your business.We will be reviewing two case studies – CarParts, a real automotive company (actual company name withheld onrequest) and IBM’s own internal usage experience.‘CarParts’ - the Workplace for ChangeThis is a real-life example of a medium sized German automotive parts company. In this paper we will call themCarParts. The company has 5500 employees in 19 countries, revenues of approximately 2500M Euro and they havethree main product lines across heating and exhaust systems. The company spends roughly 70M Euro annually onR&D.We have performed an extensive ROI analysis with the CarParts teams. Below we focus on those business categorieswhich the team has identified as having delivered the best Return On Investment.The CarParts team embarked on an Unified Communications project called ‘Workplace for Change. CarParts’ Collaboration Opportunity… From Personal Productivity to an Integrated Collaborative Workplace Dynamic, Integrated Collaborative Workplace • Integrated Collaboration Suite of tools (easy to access, easy to use, easy to administer) • Lowers your TCO with a globalBusiness Value standardized platform • Extend your collaboration reach across the enterprise with employees, suppliers, and customers Team Productivity • Collaboration pervasiveness across your mobile workforce with Device-aware toolset Personal Productivity Time Page 17
  18. 18. IBM Collaboration Solutions Social UC ROI ElementsAs you can see from the picture CarParts has moved from a personal productivity model to an integrated collaborativeworkspace. The impact on their business was profound.They had set themselves the following broad targets with Workplace for Change: 1. Move users toward a self-service model of information access and delivery 2. Decrease business costs and improve operational efficiency 3. Share information and ideas with customers, suppliers and partners 4. Speed up and improve the organizations decision-making capabilities 5. Align and track more closely with corporate strategy and objectives 6. Manage specific operational processes in a more timely fashion 7. Drive innovation, competitive advantage and decentralized decision making throughout the organizationCarParts ‘Workplace for change’ project had to deliver real benefits to the organization and change the culturetowards collaboration. You can see that various UC elements were part of the project, such as Mobile Workforce andUniversal Connectivity. The expectation from UC technologies was to greatly enhance the Knowledge Sharingaspects. Instant messaging, expertise location, presence awareness, emeetings and collaborative spaces weretechnologies that needed to be widely deployed.When we work with customers we present them with our ROI value tree. We simply try and separate out the Benefitsversus the Cost of a Unified Communications project. We also tend to work with an investment comparison over a 3year time frame. In our method we work with customers to jointly identify benefits and we will then be able to attachspecific action items to these. Potential Benefit Areas / Value Propositions Reduce long- Reduce long- long-  Reduce telecom costs incurred handling Level 2 Support distance telecom distance telecom calls costs costs Cost Reduction Cost Reduction Reduce travel and Reduce travel and  Reduce travel and expenses for quarterly meetings in expenses for expenses for Purchasing Group quarterly meeting quarterly meeting BENEFITS BENEFITS Reduce Labor Reduce Labor  Increase problem-resolution effectiveness by leveraging costs in NA costs in NA real-time communications to diagnose manufacturing Manufacturing Manufacturing issues Support heavy Support heavy  Improve process efficiencies during Accounting Close duty cyclical work duty cyclical work Period Employee Employee loads loads Productivity Productivity Improve Improve  Increase problem-resolution effectiveness by leveraging effectiveness of effectiveness of real-time communications to diagnose manufacturing Sales Reps Sales Reps issues ROI Improve Improve  Eliminate physical face-to-face quarterly Purchasing effectiveness of effectiveness of Meeting thereby making the Purchasing reps more Purchasing staff Purchasing staff productive Improve Improve  Increase reach and coordination within IT department by effectiveness of effectiveness of utilizing full collaboration suite IT Staff IT Staff Hardware Software TCO Implementation Services MaintenanceBehind this value tree is a spreadsheet which we will explore a little further below. Each business benefit area has tobe coupled with a financial benefit. If one adds these up an overall picture emerges, like the one in the table on thenext page. Page 18
  19. 19. IBM Collaboration Solutions Social UC ROI ElementsThe numbers above are fictitious but they are an example of the custom ROI calculation we performed for CarParts.We have some real numbers to show you in conclusion of this case study. We have been able to find financial benefitsin each of the following categories: 1. Sales effectiveness 2. Employee productivity 3. Customer service 4. Telephone & Webconferencing 5. TravelBelow we will expand on categories one to four. Reducing travel costs speaks for itself and we will have a moredetailed analysis of this category in the IBM case study.• Increase sales Benefits in this area of the business refer to opportunities to increase sales by making sales efforts more effective. This includes better coordination across global accounts, sharing of best practices, better reusability of key sales assets and dynamic collaboration of the best qualified resources for a specific sales opportunity. The stated goal was to increase sales transactions to between 50 and 200 per week.• Improve employee productivity These benefits refer to time savings opportunities associated with enhanced communication and collaboration capabilities, including identifying and contacting people and expertise, coordinating teams and project communities. CarParts thinks they could reach a 25% increase in productivity with better technology and more effective processes. Between 70-90% of activities involve seeking help and improving the speed of communication.• Reduce telephone and webconferencing cost Though strictly speaking more a cost of ownership (TCO) than a ROI argument, reducing telephone usage as a direct result of deploying unified communication and collaboration technologies is probably the easiest benefit to calculate. That, and reduced travel by using web conferencing. Experience bears out that increased IM usage will reduce phone calls. VOIP will reduce telecommunications costs. How much, depends on your business. eMeetings can be hosted by a service provider or IBM Sametime software can be acquired to host it on-premise. Many companies end up with a hybrid model. Hosting is not always the most cost effective model. Usage patterns are difficult to predict and licensing models vary widely. Having an onsite solution often means not only better technical control (security) but also better financial control over the conferencing solutions. Page 19
  20. 20. IBM Collaboration Solutions Social UC ROI Elements• Reduce cost of customer service and help desk support CarParts saved 53K Euro in their Call Center by using Sametime and consequently reducing escalation time with 5min per call. Help desks and customer contact centers are areas of the business where communication technologies can have a real impact. CarParts has 100 support professionals. They spend 80% of their time troubleshooting, talking to SME‘s etc. If the time-to-resolution per customer is reduced, more customers can be assisted, wait times are down and customer satisfaction will go up. We have a concrete cost savings example in our Chapter 7 dealing with Contact Center ROI.CarParts ROI SummaryCarParts has benefitted tremendously from their ‘WorkPlace for Change’ initiative. For a total investment of roughly175.000 Euro CarParts realized a cost saving over 3 years of roughly 1.6M Euro.We trust that this example has given you a few ideas of where the savings originate. This was not a theoreticalexercise but we have been able to share with your the results of an ROI initiative with a real company deploying realsolutions in the real world.IBM, the Sametime ROI story (from 2008 figures)Let us now turn to IBM itself to show how our own calculations affect the ROI story. IBMs CIO office leads thedeployment of IBMs internal software. In an internal report about the Sametime deployment the CIO Office clearlyoutlines their goals which support the story we started in this paper: Sametime is a key application that the IBM corporation depends on to provide real-time collaboration services to employees. In addition, IBMs internal deployment of Sametime allows collaboration with external customers. (...) These capabilities directly support IBM CIO strategy including the need to reduce the dependancy on e-mail, enable faster decision making, reducing costs including business travel and telecommunication costs and supporting the need to collaborate with external customers.With roughly 400,000 employees world-wide in 64 countries IBM conducts business in 170 countries. There areroughly 2,041 IBM locations and 40% of IBM employees are mobile. This section will demonstrate how the internaldeployment of the Sametime product family is assisting IBM with its ROI and cost reduction story.Instant Messaging and eMeetings at IBM – the numbers.There are approximately 400,000 Sametime users in IBM of which 200,000 are concurrent users. We count about 10million chat messages per day with 1.3 million participants. This user community creates roughly 190,000 emeetings.Our IT infrastructure currently consists of the Sametime client, the Notes client with integrated Instant Messaging,Sametime Mobile and a Sametime Web Conferencing Enterprise Meeting Server. We run a Sametime serverinfrastructure in a so-called ‘run once’ world-wide deployment (5 Sametime Community Servers, 10 MultiplexorServers to handle end-user connections). There is an active internal developer community to create Sametime Plug-ins. Plug-ins support innovation and they are developed and posted internally on a “plug-in factory” website.We provide our users with a suite of “e-meeting” services; webcasts, audio/video conferences and Sametime hostedwebconferencing. Sametime is used everywhere within IBM, but we also support external communities with customersand business partners.Note again that we are running this infrastructure essentially on 5 Sametime servers! This is a testament toSametimes scalability and enterprise readiness. Page 20
  21. 21. IBM Collaboration Solutions Social UC ROI ElementsSametime @ IBM: Business Value Realized (from 2008 figures)We estimate savings of US $16.5 million per year in reduced phone costs due to the use of instant messaging.Several cost avoidance factors contribute to these results: • Reduced phone and pager usage • Reduced e-mail usage • Quick access to expertise • Support mobile workers • Back-channel to speed-up time-to-resolutionThe table below provides you with an insight on how we calculated the 16.7M annual savings in reduced phone costs: Number of self-registered users 380,000 Maximum concurrent users 200,000 Number of unique users per day 275,000 Number of messages per day 5,000,000 Average number of messages per user per day 18 Number of unique users per day 275,000 Number of times IM used p/day instead of phone 5 Number of minutes per call 2.5 Phone rate $0.020 Average savings per day $68,750 Average savings per month $1,375,000 (20 business days per month). Average savings per year $16,500,000Estimated travel savings due to the use of Webconferencing amount to US $97M p/year. We noted the following costavoidance factors as the main contributors to these results: • Reduced travel • Support of mobile workers • Back-channel • Productivity enhancementsThis table shows in more detail how IBM can avoid +/- $8M per month in travel costs: Number of meetings 216,700 Number of participants 1,350,000 Average participants per meeting 6 Percent of meetings requiring people to travel 15% Percent of people, per meeting, that would travel 50% Price of travel per person $1,000 Number of meetings requiring travel 32,505 Number of people traveling to meetings 97,515 Travel savings per year $97,515,000 Travel savings per month $8,126,250Update in 2011:Usage of Sametime is increasing. More than 50M message per day Page 21
  22. 22. IBM Collaboration Solutions Social UC ROI ElementsGreen Computing ROIIBM is committed to environmental leadership in all of its business activities. Therefore, this paper would not becomplete if we did not address Green Computing in particular because there is an ROI angle to the story.A case can be made that Unified Communications can result in savings in travel, carbon footprint and paper. Thatcontributes to ROI. Having said that, we do see Green Computing in a broader spectrum. There are aspects thatextend well beyond collaboration software as such and therefore also beyond the scope of this paper. Look online formore information. There is a good Wikipedia section on Green Computing; On Sept 17, 2008, Frost & Sullivan presented IBM with its 2008 Business Software and Communications Applications Green Excellence of the Year Award. Frost & Sullivan recognized IBMs strong commitment to help its customers accomplish a number of goals including becoming more cost-efficient, more eco-friendly and even more competitive. As you can see, more ROI Elements.IBM has been active in promoting programs that reduce the commute to work for its employees. Key contributors tothis effort are IBM’s two flexible work programs: • Work-at-home: Enables many employees to work from a home office • Mobile employees: Enables many other employees to work from home a designated number of days each weekIn 2010, more than 122,000 employees (29 percent) globally participated in one of these two programs, which not onlyhelps employees balance their work and personal responsibilities, but also benefits the environment. In the U.S.alone, IBM’s work-at-home program conserved approximately 6.2 million gallons of fuel and avoided more than 48,000metric tons of CO2 emissions in 2010.In 2010, IBM expanded the use of collaboration tools, both internally and externally, to reduce our impact on theenvironment. As a company, we conducted more than 790,000 online meetings and exchanged more than 10 billioninstant messages. Collaborating in this fashion is fundamental to IBM and has allowed us to save on travel costs andimpacts, boost productivity by connecting our global workforce 24/7, and avoid CO2 emissions. We also haveincreased our use of video conferencing to help reduce the need for travel and improve team interactions. In additionto more than 400 video-equipped IBM rooms globally, we completed work on an IBM Sametime® desktop video pilotto extend video capability to employees’ desktops. Page 22
  23. 23. IBM Collaboration Solutions Social UC ROI ElementsCustomer Contact Center ROIContact Centers are an area of business where unified communications can have a immediate effect on ROI.Instant messaging facilitates direct and time efficient customer contact. A quick exchange via IM can prevent a lengthyphone call and can reduce call volume. Expert lists can be easily added to a contact center application. They providethe CSR with a list of experts and a view on their availability (on/offline, on/off the phone, in meeting or available).Presence awareness can help a CSR connect to an available person instantly thus preventing time consuming callingaround to find someone.The IBM Customer Service Center Help Desk uses Lotus Sametime to enable help desk analysts to tap the technicalexpertise of thousands of experts worldwide, to keep analysts appraised of current outages or other situationsaffecting customers and to manage this globally dispersed, highly skilled workforce. "We have seen our productivitynumbers increase up to 20% over the last two years" Tanya Liblik, Service Delivery Manager, IBM Global ServicesToronto.In a call center seconds count. Finding an expert quickly can enhance the case resolution rates and consequentlycustomer satisfaction.Online customer self-service can reduce operational costs by deflecting calls to enhanced FAQs on the web forexample*. Blogs can provide means for customers to comment on products and services plus they are a great sourceof customer information for the marketing department. Personalized webspaces can provide customers with their ownmicrosites thereby increasing customer intimacy and loyalty. Page 23
  24. 24. IBM Collaboration Solutions Social UC ROI ElementsThe ROI categories that are impacted by these technologies are multiple but they can reduce costs (shorter calls orfewer calls) and increase revenue (an increase in customer satisfaction increases return purchases).To illustrate this section we can quote a concrete example from our CarParts company referenced before. UsingSametime in their call center reduced escalation time with 5min per call which translated into a 53K Euro saving. Thecontact center handles 200.000 calls per year. 10% or 20.000 calls need some form of escalation to an expert. A CSRcosts on average 32E p/hour. The cost savings are easily calculated: (20.000 calls x 5min) / (60 minutes x 32 E).Web interactions (1$ per email) are cheaper than phone calls (10$ per call), SSPA (Service & Support Professionals Association)Genesys UC Connect and IBM Lotus SametimeTo demonstrate the effect of adding Sametime to a call center application further we have worked with Genesys, anAlcatel-Lucent company, on a joint contact center approach. Genesys UC Connect improves customer service qualityand the productivity of agents and experts by facilitating the integration of Genesys with Lotus Sametime unifiedcommunications (UC). Combining Genesys intelligent interaction management and routing with Lotus Sametimeexpands the labor pool beyond the contact center to Sametime-provisioned workers throughout the entire enterprise.There are a number of challenges; • How do you train contact center agents (avg. 20–50 % annual turnover rate) to accumulate and articulate the knowledge of an entire organization? • How can you staff your customer service operation to handle unexpected increases in customer calls/contact volume while keeping labor costs down?The Genesys UC Connect solution integrates with Sametime to achievethis expansion of customer service resources by using the Sametimeclient on back office and branch office desktops.Reducing total cost of ownershipIntelligent routing of calls to a broader range of agents or employeeshelps to achieve better first-call resolution rates, which leads to highercustomer loyalty and allows revenue objectives to be met. LotusSametime becomes the portal by which your entire organization can collaborate to efficiently serve customers. Thereare three key ways that Genesys UC Connect and Sametime can help improve your customer service: 1. Front and back office integration - Training agents to be experts is time-consuming and expensive. But by including back office resources in the customer service operation, you can reduce costs, dramatically shorten call times, and increase first contact resolution because customers won’t be left on hold by agents who take up valuable time while pouring over material in the knowledge base. 2. Support of branch offices and retail outlets - Many businesses have trained customer service employees at locations where they can interact face-to-face with customers. The peak busy periods for these employees is different than those within the contact center. By linking UC to your customer service operation, a very dynamic and widely dispersed customer care force becomes available to the remote customer service operation. 3. Empowering field sales - The intelligent handling of accounts and leads can have an immediate impact on the bottom line of any business. By linking lead generation in contact centers to sales resources outside the contact center, you can use specific product or service knowledge, or transfer customer contacts seamlessly to those in the field. Page 24
  25. 25. IBM Collaboration Solutions Social UC ROI ElementsUnified communications and the contact center—the promise and the problemGenesys UC Connect integrates with Lotus Sametime to allow knowledge workers from diverse back officedepartments to be melded directly into the contact center workflow on a part-time basis without formally becomingcustomer service agents. This allows for a direct connection between the customer and the enterprise UC user,providing live customer service even when traffic spikes cause contact center resources to be overwhelmed. Today agents may use Sametime to view when experts are available on their agent desktop, and click to initiate a voice or IM session. However, this method can unintentionally cause excessive interruptions for the enterprise UC user, leading to frustration and lost productivity. Genesys UC Connect incorporates a variety of best practices to guard against this danger. Using process to protect your most valuable resources Genesys UC Connect “subscribes” to presence provided by Sametime to determine the availability or location of experts and back office and branch officeworkers. Rather than displaying available enterprise resources to contact center agents by name, Genesys softwareabstracts these resources’ identities into skill sets. This prevents agents from becoming dependent on particularexperts. Genesys routing can then forward inquiries, along with pertinent “attached data/call context,” to availableexperts based on business rules that include the dynamically updated location of the expert. The use of routing logicensures that inclusion of highly paid information workers into the customer service operation is both effective andsustainable.Finally, Genesys UC Connect provides standard Genesys reporting on all interactions, even those that leave thecontact center entirely and are fielded solely by IBM Sametime users. Reporting, case tracking and the ability toforward calls back into the contact center mean that back and branch office workers can accept full transfers fromagents, rather than requiring an agent to stay on the line. This level of functionality also allows interactions to beforwarded to IBM Sametime users outside the contact center directly from the interactive voice response, rather thanfrom agents alone. Through this integration, Genesys UC Connect is the only solution that uses your Lotus Sametimeinvestment to dynamically expand your customer service resource pool to respond to unanticipated or seasonal trafficspikes without having to hire additional personnel or outsourcers. Page 25
  26. 26. IBM Collaboration Solutions Social UC ROI ElementsVideo Communications ROIThe most obvious cost benefit of video can be found in the avoidance of travel. It does not seem too far fetched tosuggest that a typical company could replace at least 25% of meetings that need travel with videoconferencing if theydeploy good quality systems. The Climate Group - 20 companies that form part of a global environmental initiative -estimated in 2008 that up to 20 percent of business travel worldwide could be prevented by web conference andvideoconferencing technology !Adding video to applications can be the start of a new way of working. Video has also sparked entirely new markets.In July 2009, Polycom completed a Wainhouse Research study entitled “Benchmarking the Benefits ofVideoconferencing Deployments”.The study, based on survey responses of over 300 companies, looked at Return on Investment (ROI) figures and costsavings due to video conferencing in a number of Enterprise industries including financial, manufacturing, hightechnology, energy, retail, hospitality and transportation.The survey focused on six key savings areas: • Travel – Use of video conferencing as a travel alternative • Time to Market – Video conferencing used to bring products to market sooner • Downtime – Video conferencing as a tool for enhancing maintenance and repair processes • Training – Video conferencing used in distance learning environments • Recruiting – Video conferencing used to reduce interview and recruitment cycles • Sales – Video conferencing used to save on sales-related costsThe Results overall Enterprises and SMBs see significant savings by using video conferencing: • Save 30% on travel costs • Reduce time-to-market by 24% • Reduce downtime by 27% • Save 25% on training • Shrink recruitment times by 19% • Reduce sales-related costs by 24%In the August 2009 report, Enterprise Video Collaboration, Aberdeen studied the behaviors and business performanceof over 140 respondents using video. In studying their results, the amalgam of video collaboration capabilities into aunified communications (UC) environment was a key step for gaining value and measuring hard ROI metrics from avideo solution. Page 26
  27. 27. IBM Collaboration Solutions Social UC ROI Elements Percentage of employees using video over the last 12 monthsFirst, when Aberdeen compared companies that had leveraged video into unified communications compared to thosethat used video as a stand-alone solution, we found that unified communications led to more than a two-fold increasein the percentage of employees using video over the last 12 months.For companies using stand-alone solutions, 27% of employees had used video in the last 12 months compared to64% of employees in companies that included the ease of access associated with embedding video capabilities intoan enterprise or business communications solution.This business value was reflected in the fact that organizations with UC-based video capabilities were also more likelyto have equated their video solution with a solid return on investment. The only companies that were able todemonstrate an annual ROI of over 200% per year were those that had already integrated video into their UC solution.VIDEO is ready for businessMany things have changed in the video domain. Customers are moving from older ISDN-based and difficult to useroom systems with limited user acceptance to a one click to videoconference paradigm made possible by productslike IBM Sametime.We typically discern three classes of video capability:• Desktop video : point to point (user to user), online meetings, webcasts• Conference room video : large screens in meetings rooms• Telepresence solutions : customized, dedicated video rooms, immersive, life-likeVideo is bringing additional ROI to Unified Communications project as first an accelerator to the adoption, for examplewhen the objective is to stop and decrease travel expense, but also in many cases to open and reuse an existingVideo infrastructure and devices.Feedback from one of a significant Sametime deployment in France demonstrate the complementarity of IM, WebMeetings and Video communications. Results after 6 months (from a global leader in healthy foods) • Increase Sametime usage up to 10.4 millions IM per months • Video PC & Video Room are now a New Communication way • This project has impacted our way of working and our travelling CostsThe following picture illustrates the evolution of Video usage across Video devices and PC: Page 27
  28. 28. IBM Collaboration Solutions Social UC ROI ElementsBYOD is changing the gameCIOs are implementing Bring Your Own Device (BYOD) strategies to increase employee mobility, responsiveness andproductivity, while lowering cost. Tablets are bringing new interface to end user to simplify the Video experience andalso to benefit of the Video capabilities of such devices. In 2011, both Polycom and Radvision successfully deliver tothe market outstanding applications for Apple iPad and Android devices:In a recent study, Nemertes Research reported that 86 percent of enterprises report an increase in the number oftelecommuters. Additionally, while IT budgets remain flat or increase only marginally, more than 43 percent oforganizations report a double-digit increase in mobility budgets.“Mobility is a key consideration for any unified communications strategy, and the demand for mobile video is rapidlygrowing as well,” said Irwin Lazar, vice president and service director at Nemertes.” IT buyers continually citeinteroperability as their primary challenge in delivering an integrated voice, video, and content solution.“SCOPIA Mobile takes advantage of the extensive video expertise we have developed over many years and extends itto personal devices, which are becoming an increasingly important component of any enterprise’s communicationsstrategy,” said Roberto Giamagli, general manager for RADVISION’s video business unit. “We’re delighted to deliverthis innovative, fully interoperable and user-friendly application to iOS and other platforms, allowing our customers totake advantage of the ‘bring your own device’ phenomenon and participate in effective video meetings regardless oftheir location.” Page 28
  29. 29. IBM Collaboration Solutions Social UC ROI ElementsBring your own Device (ByoD) is not new. For example FORD began in 2007 such a program. Ford’s motivation tolook into BYOD as a reaction to two trends: Consumerization of IT, as well as the new habits of 20-somethingMillennial employees. To investigate BYOD, Ford created a cross-functional team consisting of managers from the IT,legal, HR, accounting and other departments.When it comes to Video communications, using tablets is bringing many advantages:• Free yourself from the office and conference room with the ability to meet anywhere.• Stay connected with people and content with a single communication stream from your tablet.• Eliminate barriers to productivity and open new opportunities for immersive teamwork.• Take charge of your work/life balance by taking video conferencing with you wherever you go. Page 29
  30. 30. IBM Collaboration Solutions Social UC ROI ElementsWhat about real ROI?Video helps bring together people and teams situated anywhere across the globe—or across town—helping to driveproductivity through greater, more efficient collaboration. So goes the general wisdom....but what about real ROI?Last year Eric Krapf, editor of, published a useful table on his blog.Comparing the costs of a 1-hour face-to-face meeting 560 miles away (Boston - Philadelphia) with a 1-hourvideo conference:Peter Brockmann (Brockmann & Company) quotes from his study of 350 business users of videoconferencing. Thisstudy shows the impact of video on business performance. As expected this lines-up nicely with the ROI-Elementsdiscussed in this paper: ◦ 20% higher customer satisfaction ◦ 72% higher employee satisfaction ◦ 85% more revenue per employee ◦ 20% more market shareThere are many more examples like this. Whether you believe the precise numbers or not the trend is unmistakable. Page 30
  31. 31. IBM Collaboration Solutions Social UC ROI ElementsDesktop Video ROI from IBMWhy would you consider providing Desktop Video to your employees? Is Desktop Video a viable strategy? Since2007 IBMs CIO office has conducted extensive tests with Desktop Video. Experiences from this IBM study areinteresting.We implemented Desktop Video in the Software Groupsdevelopment organization of 550 employees from 14countries who represented 30 development teams. Theproject objective was to quantify how desktop videoenhances collaboration and increases productivity fordevelopment teams.Overall, 83% of respondents believe that video has apositive impact on both the productivity of meetings andon relationship management. 68% of respondents alsobelieve that video has a positive impact on Travel Expensereductions. In addition, for effectiveness in increasing 2-way interaction, gaining clarity on complex questions andreducing cross-cultural language differences most of theresponse was positive as well. Product  68% of users confirmed desktop video improved quality of deliverables Improvements Team Productivity  73% of users said it impacted the on timeliness of decisions  77% of dispersed users said it improved meeting productivity On-going benefits Assisted trust building which improved the overall working relationships and interactions  64% of users said it increased the effectiveness of two-way interactions  84% said it improved relationship management  77% said impacted morale positively Page 31
  32. 32. IBM Collaboration Solutions Social UC ROI ElementsSametime Unified Telephony ROIIn June 2009 we introduced an exciting new product as part of the IBM Sametime family; Lotus Sametime UnifiedTelephony (SUT). SUT turns your PC into an easy to use softphone without the complexity of expensive deskphones.In addition it offers intelligent call routing, one number service to multiple devices and it can integrate with multiple IP &TDM PBX"s so that you can gain the power of UC today without replacing your telephony infrastructure. SUT turnsyour telephone into an extension of your Sametime contact listSUT customers can look forward to savings in sevencategories:1. Phone hardware2. Ad-hoc audioconferencing3. Improvements in productivity4. Improvements in call accuracy5. Reduced telephony costs for mobile and/or remote workers6. PBX migration or integration7. Consolidation of Softphone vendorsIn an August 2008 report Gartner observed that 75% of companies that are buying expensive IP phones are spending150 dollars per employee more than they need to. If you have a PC, you can use it as a phone. This opens uppossibilities. Do you really need these expensive phones on each and every desk? What about utilizing lessexpensive deskphones with SUT for sophisticated call management. Or using SUTs softphone in place of anydeskphone? The savings here can add up fast. Some of these new IP phones can cost hundreds of Euros/Dollars peremployee.To understand the economic impact Sametime and Sametime Unified Telephony are having on organizations,Wainhouse Research interviewed organizations who are deploying these solutions. Companies range in size from afew hundred users to over a hundred thousand users. Most of these organizations had previously deployed Sametimeand were adding Sametime Unified Telephony. One began with IBM Connections, IBM’s business-focused socialnetworking software, and then added both Sametime and Sametime Unified Telephony simultaneously. Based onthese interviews, Wainhouse Research created a composite company of 35,000 knowledge workers in order toperform a 360° analysis of the economic impact Sametime and Sametime Unified Telephony can have on a largeorganization.Six organizations that use Sametime and Sametime Unified Telephony (SUT) were interviewed for this study including: 1. Global engineering, procurement, construction and project management company with over 42,000 employees. 2. Global building materials company with offices in 50 countries and 46,500 employees. 3. The military for a Scandinavian country. 4. Regional insurance company based in the United States. 5. Global IT and business consulting firm with over 100,000 employees. 6. Global shipping company managing over 100 vessels traversing all the world’s oceans. Page 32
  33. 33. IBM Collaboration Solutions Social UC ROI ElementsAll six of these companies are implementing Sametime Unified Telephony, and they are in various stages ofdeployment from fewer than 200 to more than 50,000 installed seats. Key findings from the interviews include thefollowing: • Several of the companies deploying SUT are doing so for the productivity benefits first and foremost. These benefits far outweigh the deployment costs; in fact, deployment cost is really secondary for these organizations. • SUT provides a natural extension of Sametime’s presence, IM, and click-to-connect model. It facilitates needed interaction with people who must use mobile devices or the PSTN while traveling and makes it easier to reach people who are outside the organization. • SUT gives Sametime users the ability to make, receive, route, and control regular voice calls using their already familiar Sametime client interface. • More and more people are becoming mobile and they are often working at home. SUT allows companies to eliminate desk phones for some individuals. • SUT has call control and call routing capability built in, allowing organizations to eliminate PBXs entirely and/or to reduce the number of licenses and their corresponding maintenance charges. • Organizations with PBXs from multiple manufacturers can “front” these PBXs with SUT, providing Sametime’s consistent unified communications user interface for all users regardless of which PBX they may happen to be homed to. One user indicated that with SUT, the Sametime client is all they need on a PC, versus an IM/presence client from one vendor and a softphone from another. • The world is using social media, and SUT provides integration with all types of social communications capabilities. • SUT is a feature rich offering in terms of user environment along with an excellent roadmap. • SUT can be used as a business continuity and disaster recovery solution. In fact, one customer is deploying SUT with business continuity as the primary driver after an ice storms and snow closed • SUT integrates well with other IBM software organizations may have in place. • Because SUT runs on separate servers from Sametime, the solution can be deployed without any downtime to normal collaborative processes and remaining PBXs. • SUT does not require a forklift upgrade; organizations can keep their existing email system (Microsoft Exchange or Lotus Notes) and their phone systems. • Younger employees expect tools like Sametime and SUT on their desktops to enable instant, ad hoc, voice, video, and data collaboration. • The cost for SUT is between 1/3 and 1/2 of what companies would pay to upgrade legacy telephony environments.SUT essentially provides a middleware layer that makes connecting to a telephone (PBX) environment simpler. As themigration to internet telephony is taking place, SUT can be used to connect IBM Sametime to a vendor’s IP-PBX andto legacy systems (TDM). Benefits for customers include allowing global Sametime deployments to support regionalPBX decisions while providing a competitive advantage in supporting the migration of users to a single vendor’s IPPBX over time, without changing the end-user interface. This means you can achieve broad end-user value sooner -during the migration rather than at the end. In this case we demonstrate return on existing and ongoing investment inIP Telephony by avoiding rip and replace.As the lines between telephony and desktop software blur, it is important to view end-user telephony as a naturalextension of an application (like Sametime), a business process or a line of business environment (inside sales, callcenters, etc.).The fact that IBM offers SUT as an integrated module into the Sametime family allows customers to consolidatevendors on the desktop and remain assured of an open application strategy that allows them to integrate telephonyfunctionality into their business applications in much the same way Sametime offers that capability. Page 33
  34. 34. IBM Collaboration Solutions Social UC ROI Elements Integrate SUT with Web apps – mouse over phone numbers and callSome telephony vendors charge a per user license for their softphones as well as a "port" charge or "license charge"on the PBX side for each softphone to "register" or "connect" with the PBX. This can add up – port charges of 150USDper user are not uncommon. SUT includes an embedded softphone so there is no additional charge for softphonefunctionality and since the SUT softphone registers directly with SUT there is no extra port charge on the PBX.Whether you realize all or some of the benefits outlined above, we believe that the ROI potential of Sametime UnifiedTelephony can be significant. Page 34
  35. 35. IBM Collaboration Solutions Social UC ROI ElementsCall to action and conclusionIn the end ROI is what you measure in your business environment. In this paper we have explored how advancedcommunication and collaboration technologies can drive costs down and revenue up in certain business categories –we called them ROI elements. We have seen a remarkable consistency in the use cases we reviewed and weconclude therefore that the following 6 business categories are the best contributors to ROI or cost reductions: 1. Process optimization 2. Communications 3. People Productivity 4. Access to knowledge & information 5. Competitive Advantage 6. TravelBy its nature this exercise has been relatively generic and in order to really understand the impact we advise create abespoke ROI study together with our Services teams. But there are other things you can do before such anengagement. Experiment with free ROI calculators to see how your business responds to ROI metrics. Polycom,Radvision, CISCO, Alcatel-Lucent, Tandberg and others all have useful tools on their websites.IBMs Business Value Assessment (BVA) method is a well proven business case modeling approach used by IBM andour partners to help our customers build their investment case for social business and Unified Communications. Atthe heart of BVA, IBM Social Business consultant are using ROI models based on Alinean research. Day in the lifedemos are also strong way to communicate to executive sponsor.From IBM Transformation, I encourage to read the “Transforming your voice, video and collaboration infrastructureThe IBM journey toward unified communications” from September 2010. You will find many information about UnifiedCommunications at IBM and detailed best practices. Summary benefits from IBM TransformationReaders should use also the Forrester study about Total Economic Impact of IBM Social Collaboration Tools to betterunderstand and evaluate investing in IBM Social Collaboration tools. can also perform an quick online analysis with our Business Value Builder. Check it out for free on Page 35
  36. 36. IBM Collaboration Solutions Social UC ROI ElementsResources for further explorationIBM Social ◦ Blog ◦ IBM Social UC ◦ ◦ with IBMers ◦ ◦ IBM Sametime ◦ Sametime 8.5 reviewers guideReview the broad range of functions in Sametime ◦ ersguide.pdf Page 36
  37. 37. IBM Collaboration Solutions Social UC ROI ElementsSources1. IDC, Worldwide Social Platforms 2009 Vendor Shares, Doc. # 223817, Jun 20102. Press Release, Gartner Reveals Five Social Software Predictions for 20-10 and Beyond, February 2, 20103. Work Faster, Work Better, Work Smarter – Building agile, collaborative and connected business environments, IBM, November 20094. Study: Inc. 500 outpace Fortune 500 in media adoption, Joe McKendrick,, March 8, 20105. IDC, Worldwide Social Platforms 2009 Vendor Shares, Doc. # 223817, Jun 20106. IBM Press Release, IBM Named Worldwide Marketshare Leader in Social Platforms Software, July 2, 20117. A new way of working – Insights from global leaders. IBM Institute for Business Value, April 20108. Business Communications Review / June 2007, By Permission of Marty Parker, Principal, © Communication Perspectives 20079. “Measuring the Pain: What is Fragmented Communications Costing Your Enterprise?”, a Siemens White Paper. Copyright © Siemens Communications , Inc.. All rights reserved , Full white paper available from Siemens Enterprise Network, US: , UK:, DE:“Beyond Dial-Tone – Unified Communications Benchmark Report”, December 2006; © Aberdeen Group.11. “Driving Workforce Productivity with Unified Communications”, September 2007, © Aberdeen Group.12.“The Total Economic Impact Of Microsoft Unified Communications Products and Services”, © Forrester Research 200713.“Corporate Governance and Climate Change, Consumer and Technology Companies”, December 15th 2008. © A Ceres report, authored by RiskMetrics Group.14.“IBM reaps business benefits and major cost savings from unified communications and collaboration”, IBM CIO Office, Case Study, 2008.15.Brockmann & Company study of 350 business users of video conferencing, IBSG, 2007, Data is based on present value of free cash flows over a three-year period.17.“Telepresence vs Videoconferencing, Resolving the Cost/benefit Conundrum”, Wainhouse Research, January 28, 2008 Revision 9.18.“The ROI Of Telepresence, A Total Economic Impact™ Analysis Uncovers Major Value Of Virtual Presence”, Forrester, February 25, 2009,,7211,47629,00.html19.Unified Communications Featured Article in talking about a Frost&Sullivan Telepresence report, see during-economic-crisis.htm20., Telepresence and Videoconferencing Insight Newsletter 23 March 200921.Wainhouse, Ease of Use in Web Conferencing – Why it Matters, The Cost Benefits Of Making Usability a Priority, February 2009, in the New York Times, 22 July 2008. SMART 2020: Enabling the Low Carbon Economy in the Information Age, June 2008, Global e-Sustainability Initiative www.gesi.org23.Gartner, (August 2008), « Dont Purchase IP Screen Phones If You Have a PC on Your Desk »24.The IBM journey toward unified communications (March 2010): (November 2011) - The 360° Economic Impact of Sametime and Sametime Unified Telephony26.“Benchmarking the Benefits of Videoconferencing Deployments” from Wainhouse on Polycom website27.How Ford Motor Deployed Bring Your Own Device (BYOD) from motor-deployed-bring-your-own-device-byod/208628.Environmental report from IBM - Total Economic Impact of IBM Social Collaboration Tools to better understand and evaluate investing in IBM Social Collaboration tools. / Page 37