unlocking value of fixed mobile convergence and unified communicationsUnlocking The Value Of Fixed Mobile Convergence And Unified CommunicationsExecutive Summary As companies seek to increase revenue and improve both productivity and profitability, they look around to see what tools may serve this purpose. In the world of IT and networking, converged solutions integrate voice and data applications with both fixed and mobile connectivity to create a flexible computing infrastructure that enables employees to use a growing range of devices to work at any time and in any place. Such a flexible set of tools can stimulate both productivity and profitability. Enterprises in North America have already begun to use converged solutions. For instance, more than 60% of organizations currently use mobile email or a close associate — mobile remote access — to facilitate anytime, anyplace, and anyhow computing. And users are enthusiastic about the ability of this technology to drive revenue, customer satisfaction, and employee productivity. Today, more than 50% of enterprise employees find themselves in circumstances in which they need to work in a fluid and dynamic fashion. For instance, they need to access email, voicemail, and faxed messages when not at their desks. There are a number of emerging converged solutions designed to address such needs, including fixed mobile convergence and unified communications. To test for awareness and perceived value of emerging converged solutions, commissioned, and Cisco Consulting conducted, a survey of 42 IT and 40 business users (non-IT) at North American enterprises. In the majority of specific scenarios of fixed mobile convergence and unified communications solutions that we tested, awareness varied by respondent type — IT decision- makers have significantly greater awareness than their business peers. Since both unified communications and fixed mobile convergence applications are relatively new, the base of current users of these solutions is fairly small. However, perceived value among users is strong — regardless of job type, current user s of either fixed mobile convergence or unified communications rated these solutions as important enablers of and contributors to employee productivity. This, in turn, is an important element in improving profitability. Despite the significant benefits of innovative technology like fixed mobile convergence, 60% of enterprise IT organizations haven’t dedicated a portionof their budget to identifying new sources of innovation. And 70% of IT departments don’t include unified communications as part of their formal technology road map. But given the rapid pace of technology change, IT bears an important responsibility in making business organizations aware of the existence and potential application of innovation. The growing pervasive influence of information technology necessitates the establishment of joint IT/business innovation teams, which should work together to assess, pilot, and implement new technologies that can transform business life. One of the most critical steps such teams can take is to identify industries or users that are likely early beneficiaries of innovation. In the case of Fixed Mobile Convergence, line-side departments like production, inventory, and distribution found in transportation/logistics, consumer products, and industrial products are good prospects. As to unified communications, line-side departments in professional services and the public sector are excellent candidates. Two industries are ardent adopters of both fixed mobile convergence and unified communications: construction/engineering and high-tech. Additionally, customer-facing organizations, like sales and customer service/support, often are great early-user candidates, irrespective of industry. In addition to identifying potential early users, members of the IT/business innovation team should either share or split certain pre-implementation activities; IT members can take the lead in serving Unlocking The Value Of Fixed Mobile Convergence And Unified Communications as technology scouts, assessing legacy systems/services compatibility and IT operations support requirements. Business decision-makers should typically take the lead in prioritizing user needs and in assessing the potential impact of innovation on business processes and users. As a whole, the team is responsible for prioritizing innovation projects, assessing technology alternatives during pilots and trials, and performing ROI analyses. Study Methodology In March and April 2007, Cisco Consulting conducted a phone survey of 82 North American IT and business decision-makers responsible for the assessment and implementation of wireless enterprise solutions. This survey was a commissioned study conducted on behalf of . The survey included companies with at least 500 employees or more than $500 million in annual revenues from a variety of industries. All of the study respondents were manager-level and above. The 40 business respondents were all involved in determining the suitability of mobile technologies for use by their teams. And the 42 IT interviewees were all involved in wireless technology solution investment within the last two years. Getting Ready For Convergence “Convergence.” What does that mean to you? Although there is no firm definition, to Cisco, “convergence” is shorthand for anytime, anywhere, anyhow computing and communications. As a fundamental change agent of how and when work is accomplished, this type of flexibility clearly can and will drive a great deal of innovation throughout many businesses. When IT and network professionals discuss convergence, they typically focus on applications that: • Combine voice and data in a fluid fashion. • Combine landline and mobile technologies in an integrated fashion. • Rely on IP-based technology to provide a cost-effective flexible infrastructure to facilitate anytime, anywhere, anyhow computing and communications. Although the base of truly converged solutions in use today is fairly small, there is substantial evidence that virtually all of the emerging business and even consumer-technology-related applications that are and will be adopted over the mid- and long-term are founded on convergence (see Figure 1). As a small example, most people who use both landline and cell phones have one voicemail box dedicated to each. But more and more solutions are emerging that provide a common voicemail box for both landline and cell phones. This productivity-enhancing capability is one of the very early steps on the journey we know as fixed-mobile convergence. Unlocking The Value Of Fixed Mobile Convergence And Unified Communications This document, commissioned by and written by Cisco Consulting, examines corporate use of one common, generic type of converged application, mobile email, and its perceived value. We then look at corporate interest in and perceptions of two emerging applications: fixed mobile convergence and unified communications. Finally, we look at the critical role that IT plays in helping companies adopt converged applications. Generic Mobile Applications Set The Stage Use of WiFi, 2.5G, and 2G services by businesses has exploded over the last two years. In a 2005 Cisco study, 17% of North American enterprises reported that they had deployed mobile data services, and 23% had deployed WiFi or wireless LANs.1 Enterprise use of these technologies has grown considerably over the last two years. Cisco survey data from the first quarter of 2007 show that 55% of North American and European enterprises now have deployed in-house wireless LANs, 30% are current users of public WiFi networks, and 28% currently use public cellular data (e.g., 3G).2 Each of these technologies is a key enabler of convergence. One of the chief drivers for this surge has been the rise in adoption of generic mobile applications like mobile email and calendaring. In 2007, over 60% of North American enterprises report they have deployed this type of application – either on a laptop or on a small form factor device like a Treo or a Blackberry.3 Inside an organization, deployment rates of mobility vary — research Cisco performed in 2006 indicated that on average, 23% of the North American enterprise workforce is frequently mobile.4 While these employees may work in an office or other fixed location, the nature of their work requires them to be away from such a location on a regular basis. Today, companies in the business services and finance/insurance sectors report the highest levels of employee mobility. High Awareness And Strong Perceived Value Of Mobile Email In the survey work commissioned by for this project, we found that awareness of mobile email is very high — only 9% of respondents were unfamiliar with the application.5 Moreover, use is high: Overall, 55% of respondents said that they were currently using this application (see Figure 2). And to use this application is to love it: 47% of those interviewed rated the ability to access email on a mobile device as ”invaluable,” and another 18% rated it as ”highly valuable” (see Figure 3). Respondents were also enthusiastic about the range of benefits they said this technology provided, both from an internal (such as improved employee productivity or satisfaction) and external perspective (for instance, increased customer satisfaction or increased revenue). Even many Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Figure 3: Perceived Value Of Mobile Email “How valuable is this technology or would this technology be to your business?” Figure 4: Wide Appreciation Of Benefits Of Generic Mobile Applications “What benefits do you think your team or organization would gain from using generic mobile business applications?” (multiple responses accepted) Factors Driving Mobile Email’s Strong Adoption It’s clear to most decision-makerswhy mobile email access provides such great value to users. On the demand side, several important factors contributed to its rapid adoption. These include: • Employees already used email at the office. • Many also had broadband connectivity at home, and so are familiar with remote access authentication procedures. • Going back just a few years, many road warriors who needed to access email while traveling only had one ubiquitous choice: inexpensive, but painfully slow, dial-up access. Accessing these services from temporary sites could be a fairly cumbersome procedure. Today, tethered Ethernet, WiFi, and 3G services offer travelers more viable options. Supply-side concerns must be sufficiently low to not act as barriers to adoption. In the case of generic mobile applications, this has been an especially important stimulant. Key supply-side issues include: • Appropriate devices. Until the arrival of the Palm and the Blackberry, specialized mobile devices were confined to line-of-business applications. Other small form-factor devices, like the Treo, have gained popularity as their functionality has grown. Use of laptop PCs is at an all-time high — even among consumers.6 Unlocking The Value Of Fixed Mobile Convergence And Unified Communications • Ease of use. Many providers of remote access services have simplified the remote access logon and authentication process — and a grow ing number are offering a technology- neutral single-sign-on procedure — the process for accessing a company’s internal servers and network is the same, irrespective of connectivity type. Behind the scenes, middleware providers and systems integrators have worked to mobilize access to other critical company applications, so that the users can perform key tasks efficiently. • Fairly ubiquitous connectivity. In many instances today, users who are on the road have a choice of either using WiFi or 3G service. Depending on the provider, 3G service is available to roughly 200 million US residents right now. That’s a vast improvement from even 12 months ago. And today, many PC manufacturers’ models support both wireless Ethernet and 3G connectivity, and many small form-factor devices are following suit.7 The newest generation of mobile phones also functions as 3G modems, and does so in a much better fashion than had earlier models.8 • Affordability — of both connectivity and devices. Prices for mobile devices like laptops now rival the price of desktop PCs, and providers offer an array of connectivity options so that customers can select the most appropriate solution. Moreover, many companies are proactively absorbing the costs of mobile devices and services by embracing corporate liable contracts with service providers. Today, 62% of North American companies routinely pay for the purchase of their employees’ mobile handheld devices.9 Awareness, Use And Perceived Value Of Emerging Solutions One of the key reasons adoption of generic mobile applications has surged is pent-up customer recognition of a pressing need to be able to work in a more fluid, dynamic fashion. As part of this commissioned study, we tested respondents for recognition to five particular work scenarios that could be considered impediments to working collaboratively on an on-demand basis (see Figure 5). For instance, 51% of the respondents say that they have been in circumstances in which they needed to access a variety of messages (such as email or fax) while away from their desks. One of the important issues facing both business and IT users in organizations today is the availability of new technology designed to meet pressing business concerns. Awareness of these emerging solutions is another critical step on the road to adoption. Here we examine awareness of two important emerging communications solutions that facilitate the ability to work anytime, anyplace, anyhow: fixed mobile convergence and unified communications. Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Figure 5: Common Impediments To Working Anytime, Anywhere “Please tell me how frequently a member of your team encounters each scenario.” (percentage rating a 4 or 5, where 1 = “never” and 5 = “everyday”) Fixed Mobile Convergence Almost 20% of employees at North American enterprises are frequently mobile. For instance, the work of many salespeople requires that they meet with clients and prospects at those companies’ locations.10 These types of employees typically have both an office and a cell phone, each with a unique phone number and voicemail box. In almost all cases, the cell phone is assigned a different dialable number than the office phone — fellow employees can’t dial by extension to reach someone on his mobile phone. Fixed mobile convergence solutions, which are becoming available from a number of vendors and providers, can bridge these worlds. In the commissioned survey for , we found that: • FMC awareness is broad-based. Sixty-three percent of the 82 respondents are aware of early FMC benefits like simultaneous ring.11 But awareness varies by job category — 76% of IT respondents are aware of these technologies, as opposed to just 50% of business interviewees (see Figure 6). Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Figure 6: Awareness Of Fixed Mobile Convergence • More business users currently use FMC applications. Of all the respondents we surveyed specifically for this project, 21% are current FMC users (about 33% of those who are aware of FMC). Use of FMC varies by job type — 14% of all IT respondents are currently using FMC, contrasted with 28% of business respondents. • Perceived value doesn’t vary by job type. Rather, it is a function of the frequency that a particular work scenario is encountered, with the level of recognition of work impediments caused by the scenario, and close exposure to a potential solution. In this survey, 61 respondents indicated that team members frequently use both a desk and mobile phone to communicate. Of the seventeen respondents who currently use FMC 8 perceive it as highly valuable to their organizations (see Figure 7). User appreciation for FMC’s ability to streamline the use of communications tools is also strong: 60% rate flexible (fixed-mobile) transfer and conferencing capabilities as “invaluable” (see Figure 8). Figure 7: Perceived Value Of Fixed Mobile Convergence “How valuable is this technology or would this technology be to your business?” (percentages may not total 100 because of rounding) Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Figure 8: Perceived Value Of Specific Fixed Mobile Convergence Capabilities “How important is this feature [of voice FMC] to your business?” (percentage rating a 4 or 5, where 1 = “not at all important” and 5 = “very important”) Base: 25 respondents who are using or evaluating voice FMC Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 Unified Communications: Unified Messaging, Presence, And Collaboration Unified communications can act as a major boost to employee productivity. Fourteen percent of North American enterprises say that implementing this technology is a critical priority this year. Year-over-year adoption rates are steady at 15%, but the number of companies that are evaluating or rolling out unified communications continues to grow — from 50% of North American enterprises in 2006 to 57% this year.12 The commissioned survey results show that unified communications’ awareness and perceived value varies by the specific type of solution: unified messaging, unified presence, or unified communications: • Unified messaging (UM). The oldest type of unified communications, UM links historically disparate forms of messaging (email, voicemail, fax, SMS, IM, and others) into a common inbox and message treatment structure.13 The -commissioned survey revealed: o UM awareness is broad. More than 70% of the respondents to this commissioned survey are aware of UM. Like FMC, awareness varies by job category: 85% of IT respondents are aware of these benefits, contrasted with 45% of business interviewees (see Figure 9). o UM current use is low, but enthusiastic. Of all the respondents, 4% are current users and 17% are evaluating the technology. Although the base of respondents is small, it is interesting to note that both of the respondents who are currently using this technology rate it as ”invaluable” (see Figure 10). Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Figure 9: Awareness Of Unified Messaging Base: 54 IT and business decision-makers in North America Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 Figure 10: Perceived Value Of Unified Messaging “How valuable is this technology or would this technology be to your business?” Base: 52 IT and business decision-makers in North America not using UM and 2 IT and business decision- makers in North America using UM Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 • Unified presence (UP). This technology, a follow-on to UM, provides fellow employees with information about a particular employee’s work status and connectivity options (at/away from desk, IM on/off, etc.) at a particular point in time, and constantly updates information about all employees who are connected to it. In the -commissioned survey, we found that: o IT respondents are more aware of UP. Compared with UM, UP is a younger unified communications capability, and thus awareness is not as high — only 42% of respondents are aware of UP (see Figure 11).14 Like UM, UP awareness is significantly greater among IT respondents versus business interviewees (68% versus 15%). Unlocking The Value Of Fixed Mobile Convergence And Unified Communications o UP perceived value is strong. Although 42% of respondents are aware of UP, none are current users. Only 31% of those who are aware are actively evaluating the technology (13% of total respondents). But overall, 26% of respondents believe that UP would be “very valuable” or “invaluable” (see Figure 12). Figure 11: Awareness Of Unified Presence Base: 77 IT and business decision-makers in North America Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 Figure 12: Perceived Value Of Unified Presence “How valuable would this technology be to your business?” Base: 77 IT and business decision-makers in North America (percentages do not total 100 because of rounding) Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 • Unified collaboration (UC). This technology allows two or more employees to share, display, and modify any mode of information (audio, text, video) in real time. In the - commissioned survey, we found: Unlocking The Value Of Fixed Mobile Convergence And Unified Communications o Low overall awareness of UC. This is the youngest of unified communications functions, so the awareness level is comparably muted (overall, 27%) and does not statistically vary between IT and business respondents15 (see Figure 13). o UC’s perceived value impeded by its youth. A small number (14) of respondents were aware of UC, with no current users. Only 6% of overall respondents are actively evaluating this technology. When presented with a description of its capabilities, 27% of respondents said UC would be very or invaluable [a score of 5 (invaluable) or 4 (very valuable)] (see Figure 14). We are encouraged by the trends we’ve already seen with generic mobile applications, FMC, and UM, and think it entirely reasonable to anticipate that increased exposure, coupled with subsequent evaluation and use, will only improve the perceived value of both UC and UP. Figure 13: Awareness Of Unified Collaboration Base: 52 IT and business decision-makers in North America Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Figure 14: Perceived Value Of Unified Collaboration “How valuable would this technology be to your business?” Base: 52 IT and 40 business decision-makers in North America Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 IT’s Critical Role Business Innovation Despite the significant differences in their job types, both IT and business respondents select these three objectives as most important: 1) improving customer satisfaction/retention; 2) increasing revenues; and 3) increasing employee productivity (either by decreasing internal costs or the time it takes to complete key activities) (see Figure 15). Figure 15: Top Business Priorities For Business And IT Respondents “Please select the top three objectives for your organization.” (select only three responses) Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Base: 42 IT decision-makers and 40 business decision-makers in North America * There is no statistically meaningful difference between business and IT respondents. Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 Historically, adoption of many vertical mobile applications was driven by line organizations. For instance, mobile logistics solutions suppliers approached the delivery organizations in the shipping industry, which saw their great potential to improve productivity and customer satisfaction. The delivery organization typically reached back to the network and IT organizations to work together to assess, plan, and implement the most appropriate mobile logistics applications. This often was done on an ad hoc basis. The Role Of Innovation Teams The growing pervasive influence of information technology throughout business necessitates taking the relationship between IT and business users to a higher level. Key activities many organizations should take to increase innovation leadership include the establishment of joint IT/business innovation teams. But despite the great need for IT and business innovation alignment, especially on identifying and implementing new high value technologies, comparably few IT organizations have developed processes to closely link IT with business innovation. For instance, 60% of companies haven’t formally dedicated any budgetto IT-business innovation (see Figure 16).16 Figure 16: Few In IT Currently Drive Business Innovation Base: 162 North American respondents Source: Cisco Research March 2007 Global IT Excellence Online Survey Thus, for most companies, alignment between IT and business users is at best only a partial reality. For instance, only 50% of the business respondents in the -commissioned study say that their companies have a formal, ongoing process in place to identify and implement new mobile technologies — contrasted with 64% of IT res pondents (see Figure 17). That’s close to a 30% awareness difference between IT and business respondents. Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Figure 17: Business And IT Respondents Differ On Mobility Project Cooperation “Is there a formal, ongoing process between IT and the business units to identify and implement new mobile projects that can benefit your business?” Base: 42 IT decision-makers and 40 business decision makers in North America Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 2007 And on unified communications, only 29% of IT respondents say that this portfolio of productivity- enhancing solutions is part of a formal (IT) technology road map (see Figure 18). Such statistical information is buttressed by work we’ve done with companies in many different industries — their business users all tell us that they expect the IT and network organizations to keep them informed on a proactive basis about emerging business-impacting technologies. The majority of business user clients cite the desire for regular technology planning and assessment sessions with IT, on a quarterly or semi-annual basis. Almost every company could greatly benefit by a tighter link between these two organizations. Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Figure 18: Less Than 30% Of IT Respondents Say That Unified Communications Is Part Of A Formal IT Plan “Is the subject of unified communications/unified messaging officially part of IT’s formal technology road map?” Base: 42 IT decision-makers in North America Source: Wireless Enterprise Solutions, Cisco Custom Research prepared for , April 200 Early Innovation Team Activities: It’s A Balancing Act Within innovation teams, IT and business user participants work on some phases of a project together and also work on other phases of a project separately. Some early but critical innovation team roles and activities include: • IT acts as technology innovation scout. Often, business users don’t have the time or inclination to stay abreast of generic IT/network developments that can deliver important business improvements. And so they expect IT to act as technology scouts and bring information about potentially innovative and relevant technology, like fixed mobile convergence and unified communications, to them on a proactive basis. In many industries, business users are very dependent on IT to fulfill these functions — especially for potentially useful technology where their awareness is low, and hence business funding for new projects has not yet begun. • Business users prioritize needs. When presented with relevant innovative technology, business users are able to identify which can have the greatest positive impact on improving customer satisfaction and revenue. Often they also can select which will be the most beneficial in improving employee productivity and satisfaction. • IT leads in legacy systems compatibility capital expenditures analysis. Once a project has been identified as highly desirable, IT plays an early and pivotal role in evaluating the impact a particular UC or FMC solution may have on legacy applications and systems. For instance, at present, current users of either fixed mobile convergence or unified communications offers use capabilities that heavily rely on voice hardware systems (typically around IP-PBXs) or email-centric software suites. These vendors’ primary Unlocking The Value Of Fixed Mobile Convergence And Unified Communications customers in enterprises are the IT and network organizations, and their education of IT users has been a key component to adoption thus far. Additionally, most unified communications vendors have priced these solutions on a companywide license basis, making it difficult for specific, small groups inside of companies who would be early beneficiaries of these technologies to acquire them on a cost-effective basis. In contrast, price for a services-based model typically only charges for the number of actual users and could potentially be priced even on a utility-/usage-centric basis (versus a flat monthly recurring fee). • IT leads in operational expenditure cost analyses. Given the high degree of expertise required to evaluate which FMC or UC solutions are most compatible with the existing IT and network infrastructure, it should be no surprise that business users expect IT to provide this type of technology advice. In the survey work Cisco conducted for , not only were IT respondents more aware of dual-mode FMC capabilities, they were also more aware of the other major technology alternative, which is the deployment of pico-cells to provide good signal strength for 2G (cellular) calls within buildings.17 Assuming similar functionality and upfront expenses, the choice of tool may come down to ongoing costs, including support. And IT is clearly the leader here: Business respondents were significantly less concerned about the impact of ongoing support costs on ROI than were those who worked in IT.18 Given the number and range of IT resources that support converged applications, support costs can easily be underestimated. Thus, it’s usually prudent to look at the full range of options, from in-house to outsourced models. • Joint IT-business technology prioritization. In many cases, IT will be able to prioritize the timing of innovation projects based on business user need. However, there will be instances in which IT’s budget can’t accommodate a particular innovation project at the time the user wishes. To help move the project along, the business unit could look at funding such a project to a larger degree than is usually the case. But unfortunately, there will be times when a particular project can’t proceed at the time the user wants, either due to underlying technology constraints that must be resolved first, or to accommodate business innovation projects that have greater precedence. • Business leads on business process and business user impact. One of the problems we frequently witness on IT projects is that the ROI analyses fail to take into account the costs and benefits various types of technology solutions have on users. As stated, at this point, both fixed mobile convergence and unified communications solutions are heavily systems-focused. But within the next six to 18 months, services-based solutions will become more pervasive domestically — they ar e already in some other parts of the world — which will provide organizations with great er choice. And thus the full scope of options should be evaluated, even though IT may be the most comfortable with solutions that are systems-based. It’s entirely possible that service-based FMC or UC solutions would be preferable for particular groups of users — this is especially the case when the business users are frequently mobile. IT can and should provide advice to its business peers, but it’s up to the business to determine which types of solutions are best for its users and processes. • Joint IT-business technology assessment. Many IT departments perform technology pilots using IT staff and will jump from this step right to the technology/vendor selection phase. But this overlooks business user pilot programs, which are critical. These, and business user trials, often make/break a project’s ultimate success. • Joint ROI analysis. Given the important roles both IT and business users play in innovation adoption, ROI assessment is a joint activity. Unlocking The Value Of Fixed Mobile Convergence And Unified Communications When the above activities are followed by well-defined implementation activities, such joint teams will experience significantly greater success than has historically been the case. Early Users And Prospects Of Convergence IT is in a bind: Business users not only expect but truly need them to provide IT innovation leadership, especially on fixed mobile convergence and unified communications. However, not everyone in IT knows where or when to start. Here are some guidelines around industry trends from recent Cisco research: • Fixed mobile convergence. Industries that have already deployed FMC solutions, including VoWLAN, include high-tech, consumer products, industrial products, construction and engineering, and transportation and logistics.19 If your company is one of these industries and it has not yet deployed FMC, now is an excellent time to begin assessing its suitability. Departments within these industries that are early adopters often include R&D, production, inventory, and distribution. IT should work with designated peers in these departments to identify which FMC capabilities are most critical to their operations. Similar activities should take place in industries that are in the process of rolling out or evaluating FMC (see Figure 19). Figure 19: Adoption Of Fixed Mobile Convergence By Industry Base: 715 North American respondents Source: Enterprise Network And Telecommunications Survey, North America And Europe, Q1 2007 Unlocking The Value Of Fixed Mobile Convergence And Unified Communications • Unified communications. Companies in high-tech, professional services, construction/engineering and public services have already begun to deploy unified communications solutions, including VoWLAN.20 If your organization is one of these industries and it has not deployed unified communications, it may find itself at a competitive disadvantage. Like FMC, departments within these industries that are early adopters are often line-side organizations. And like FMC, IT should work with designated peers to identify which unified communications capabilities will provide them with the greatest benefit. Similar activities should take place in industries that are in the process of rolling out or evaluating FMC (see Figure 20). Figure 20: Adoption Of Unified Communications By Industry Base: 715 North American respondents Source: Enterprise Network And Telecommunications Survey, North America And Europe, Q1 2007 • Customer-facing activities. Irrespective of industry, other early strong prospective users of many types of IT innovation are those that work with customers, such as sales, customer service, and support. Productivity-enhancing applications like fixed mobile convergence and unified communications, when appropriately applied, can increase both customer satisfaction and revenue, which are the highest business priorities common to both IT and business users. Findings And Recommendations Proactive Collaboration Is A Key Driver Of Convergence Companies that have embraced early and relatively simple forms of convergence, like mobile email, have received tremendous benefits from using these solutions: building stronger relationships with and greater revenue streams from their customers, and increasing employee satisfaction and productivity. Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Fixed mobile convergence and unified communications applications show promising signs that if applied appropriately, these newer and more advanced forms of convergence can yield similar benefits. As we’ve seen, line-side functions likeproduction, inventory, and distribution found in transportation/logistics, consumer products, and industrial products are good fixed mobile convergence prospects. As for unified communications, similar departments in professional services and the public sector are excellent candidates. Two industries are ardent adopters of both fixed mobile convergence and unified communications — construction/engineering and high-tech. Additionally, customer facing organizations, like sales and customer service/support, often are great early-user candidates — irrespective of industry. But to achieve increased profitability, customer satisfaction, and productivity, IT must work closely with business peers. Cisco recommends that IT: 1. Understand the nature of the company’s business(es) to see which functional areas may be key early beneficiaries, and hence adopters, of convergence. 2. Continue to act as proactive technology scouts to identify key technologies that may provide important business value. 3. Establish innovation teams with key parts of the business to discuss issues impacting the business, identify and assess new technologies and their potential benefits, run trials and pilots, create business cases. The team should also work on implementation together: Good user training and help desk support can help increase overall client satisfaction. The innovation team should ensure that representation comes from both IT and business, and the team should report its findings pertaining to key technology enablers to key executives on both sides at least twice a year. 4. Create a repeatable methodology to assess the more promising solutions. Plan to revisit these assessments as important new developments emerge. Given the pace of change, a technology that was assessed as a non-starter two years ago may be a frontrunner today. 5. Look at all the different forms in which a potential technology may be available, and keep on surveying the landscape for new additions. The range of possibilities includes server- /systems-based, managed system, hosted service, or even an ASP or SAAS model. The fewer the number of early beneficiaries, the more an outsourced or services-based model may be appropriate. 6. Stay fluid. As the number of users of an application grows, it may make sense to move from a hosted or managed model to another type (or vice versa). Unlocking The Value Of Fixed Mobile Convergence And Unified Communications Appendix: Endnotes 1 Source: Cisco’s Business Technographics® May 2005 North American And European Network And Telecommunications Benchmark Study 2Cisco’s Enterprise Network And Telecommunications Survey, North America And Europe, Q1 2007. 3Cisco’s Enterprise Network And Telecommunications Survey, North America And Europe, Q1 2007. 4Business Technographics March 2006 North American And European Enterprise Network And Telecommunications Survey 5The specific generic mobile business application we tested awareness for was “Employees who are working away from their desks can access company applications and content that resides on the company’s computer systems using a mobiledevice (like a PDA or laptop) and a high speed mobile data service.” 6 In 2006, 53% of enterprises we surveyed indicated that they planned to increase use of mobile laptops in 2006 and 2007, displacing desktop PCs. Laptops/notebooks of this vintage are virtually always equipped with wireless LAN chips. See the October 11, 2006, “Enterprise IT Infrastructure 2006 Adoption” report. Also, Cisco forecaststhat 42% of US households will own at least one laptop by the end of 2007. See the September 6, 2006, “Five-Year US Forecast Of 14 Consumer Technologies” report. 7 Among others, some PC manufacturers who include both 3G and WLAN chipsets in select models include Lenovo, Dell, Sony, and HP. 8 For instance, Motorola’s UMS-capable A910 handset allows access to GSM and GPRS features over WLAN (802.11 b/g. Its MC35 Enterprise Digital Assistant supports both 802.11 b/g, GSM and GPRS/EDGE connectivity. The MC70 rugged Enterprise Digital Assistant supports 802.11a/b/g and GSM, CDMA, EDGE, EVDO Rev.0 connectivity. 9 Cisco’s Enterprise Network And Telecommunications Survey, North America And Europe, Q1 2007. 10 Cisco’s Enterprise Network And Telecommunications Survey, North America And Europe, Q1 2007. 11 The FMC scenario we tested for awareness read as follows: “Enables users to use their cell phone along with the voice functions they use on their office phones. For example, incoming calls ring at both the cell and office phone and the office and cell phones share the same voicemail box. One can also use the same inter-office dialing plan on the cell phone that is used at the office phone.” 12 Cisco’s Enterprise Network And Telecommunications Survey, North America And Europe, Q1 2007 Unlocking The Value Of Fixed Mobile Convergence And Unified Communications 13 The UM benefits we tested awareness for used the following scenario: “Irrespective of the type, messages arrive in consecutive order and can be reviewed/responded to on a flexible basis — one can see who a voicemail is from by looking at the message header information or ‘listen’ to an email using text to speech technology (if one did not have access to a visual display). Today, most UM users access their UM system of software via PC/laptop.” 14The specific UP awareness scenario we tested was: “A sales representative uses technology on her mobile device to check the availability of members of the ‘Technical Support’ group back at headquarters. She sends an instant message to the entire ‘Technical Support’ group with the client’s question — the first available qualified technical support member replies to the message.” 15The specific UC awareness scenario we tested was: “An employee is working at a customer site to diagnose a problem or resolve an issue. The problem is beyond the employee’s capabilities to diagnose and fit alone. She needs a way to quickly contact a specialist at headquarters to show him the specifics from the field. Examples could include damage to property (insurance claims), equipment details (field service), or a patient’smedical status/vitals (in healthcare.) Using her mobile device, the employee checks on the availability of a specialist at headquarters. Since the employee wants the specialist to see the problem she has encountered at the customer site, she launches a video session. The remote worker circles the problem area using an electronic pen to highlight the damaged part. The specialist at headquarters views the information and send a technical presentation that demonstrates how the repair the problem. The specialist can control the presentation remotely and guides the field worker’s activities in real time.” 16 In the Q1 2007, Cisco polled 162 executive-level IT leaders/CIOs concerning their practices to align IT with business-side innovation in their firms. The statistics we discuss here represent some of the most important findings from that research. 17 Sixty-nine percent of the IT respondents we spoke with were aware of the use of pico cells to provide adequate in-building cellular coverage, versus 43% of the business users we interviewed. 18 “On a scale of 1 to 5, in which 5 is ‘very important,’ and 1 is ‘not at all important,’ how important are ongoing support costs in deciding which FMC solution is most appropriate?” The average business user response to this question was 2.97, versus the average IT user response, which was 3.64 . |
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