Confidential 2 The Productivity Effect: A Survey of IP PBX Customers Prepared for Cisco Systems The Productivity Effect: A Survey of IP PBX Customers

Confidential2

The Productivity Effect: The Productivity Effect: A Survey of IP PBX CustomersA Survey of IP PBX Customers

Prepared for Cisco SystemsPrepared for Cisco Systems

January 2003

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Key FindingsKey Findings

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Measuring IT Staff BenefitsMeasuring IT Staff Benefits

• For example, 72% report that IPT has resulted For example, 72% report that IPT has resulted in faster MACs. Of these customers, the in faster MACs. Of these customers, the average benefit is 1.5 hour saved per event.average benefit is 1.5 hour saved per event.

Realized IT Benefit

Percent of Population Receiving the Benefit

Average Benefit Level Experienced

Faster moves, adds, or changes 72% 1.5 hrs per move

New office opening completed quicker 55%3.8 weeks per new office

opening

Improved productivity within the IT dept. 45% 5.4 hrs/wk, or 35 days per year

IT staff time saved as end users can use telephony features without help

43%5.5 hrs/wk/IT employee

involved with phone support

Reduced need for IT staff to travel 42%13 hrs/mo/IT employee, or 19

days per year

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Measuring Non-IT User BenefitsMeasuring Non-IT User Benefits

Realized Non–IT Benefit

Percent of Population

Receiving the Benefit

Average Benefit Level Experienced

Easier move, add, or change process allows employees to move workspaces more often

71% 3 more moves per year

Improved corporate headquarters employee productivity

51%Saves 4 hrs per HQ employee per

week, or 26 days a year

Less telephone tag for all employees

50%3.9 hours week per employee, or 25

days per year

Improved remote office employee productivity

48%4.3 hours per remote office

employee per week, or 28 days per year

Improved telecommuter productivity

47% 5 hrs per week, or 33 days per year

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The Continuum: IPT & End User ProductivityThe Continuum: IPT & End User Productivity• Most people who realize a benefit at all, realize it within 6 Most people who realize a benefit at all, realize it within 6

monthsmonths

Q21: For each of the end user benefits you have realized as a result of implementing IP telephony solutions, when did you begin to realize these benefits?

Note: Chart does not include respondents who selected “Do not know.”

0%

20%

40%

60%

80%

100%

InitialDeployment

Within 6 months Within 6-12months

Within 12-24months

In 24+ months

Easier move, add, orchange N=65

Improved corporateheadquarters employeeproductivity N=44

Less telephone tag forall employees N=45

Improved remote officeemployee productivity N=44

Improved telecommuterproductivity N=42

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The Continuum: IPT & IT ProductivityThe Continuum: IPT & IT Productivity

Q20: For each of the IT benefits you have realized as a result of implementing IP telephony solutions, when did you begin to realize these benefits?

Note: Chart does not include respondents who selected “Do not know.”

0%

20%

40%

60%

80%

100%

InitialDeployment

Within 6 months Within 6-12months

Within 12-24months

In 24+ months

Faster moves, adds, orchanges to improve ITstaff efficiency N=68

New office openingcompleted quicker N=51

IT staff time savedbecause end users canuse telephony featuresw/out assistance N=40Improved productivitywithin IT organizationN=43

Reduced need for IT staffto travel N=33

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Drivers & DeterrentsDrivers & Deterrents

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IP Telephony Deployment Drivers (1)IP Telephony Deployment Drivers (1)

• IPT drivers are quite diverseIPT drivers are quite diverse• Both productivity and non-Both productivity and non-

productivity items are productivity items are widely citedwidely cited

• ““Other” productivity benefits Other” productivity benefits mentioned include mentioned include compatibility with existing compatibility with existing systems and applications, systems and applications, simplified management, and simplified management, and ease of installation in ease of installation in remote officesremote offices

• ““Other” factors mentioned Other” factors mentioned include ease of use and include ease of use and administrationadministration

Q9: What factors motivated your company’s decision to deploy an IP telephony solution? N=100 except for “other productivity benefit” N=28 and “other factor”

N=20. Options: Very unimportant, somewhat unimportant, neutral, somewhat important, very important.

50%

46%

64%

65%

66%

75%

0% 25% 50% 75% 100%

% of responses "somewhat" or "very" important

Other factors

Call center volumeincreases

Other productivity benefits

Employee productivity gains

Need to standardizeequipment

Cost savings

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IP Telephony Provides Competitive AdvantageIP Telephony Provides Competitive Advantage

• Two-thirds agree Two-thirds agree that IP telephony that IP telephony provides their provides their company with a company with a competitive competitive advantageadvantage

12%

22%

66%

13%

13%

75%

10%

32%

58%

13%

22%

65%

0% 25% 50% 75% 100%

% of respondents

Total

50-499

500-4,999

5,000+

Agree

Neutral

Disagree

Q11: Please rate your agreement with the following statement. IP telephony provides my company with a competitive advantage over other companies in our industry.

N=100

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IP Telephony IT Benefits: IP Telephony IT Benefits: ProductivityProductivity

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IT Time Saved: Faster Moves, Adds and IT Time Saved: Faster Moves, Adds and ChangesChanges

• One-third save two One-third save two hours or more hours or more each time an each time an employee is employee is movedmoved

2%

39%

26%

21%

12%

0% 25% 50% 75% 100%

% of respondents

Other

Up to 1 hour permove

1 – 2 hours

2 - 3 hours

More than 3hours

Q22: How much time is saved in IT staff time per move as a result of a faster move, add, change process? N=66

Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

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IT Time Saved: New Office OpeningIT Time Saved: New Office Opening

• More than 60% More than 60% save two weeks or save two weeks or more when they more when they open a new officeopen a new office

16%

24%

28%

14%

10%

6%

4%

0% 25% 50% 75% 100%

% of respondents

Up to 1 week is saved

1 – 2 weeks

2 – 4 weeks

4 – 6 weeks

6 – 8 weeks

8 – 12 weeks

12+ weeks

Q36: How many fewer weeks does it take to set up a new office building with IP telephony as compared to without IP telephony? (Measure timeline from the day IT staff begin to

install IT infrastructure in the new building to the day the IT infrastructure is ready to go live.) N=51


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IT Time Saved: End User SupportIT Time Saved: End User Support

• More than half More than half report saving five report saving five or more hours or more hours because end users because end users complete tasks complete tasks without assistancewithout assistance

11%

16%

22%

14%

19%

19%

0% 25% 50% 75% 100%

% of respondents

Up to 1 hour

1 – 3 hours

3 – 5 hours

5 – 7 hours

7 – 9 hours

More than 9hours

Q34: How much time per IT employee per week is saved because end users can complete tasks without assistance from the help desk? N=37


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IT Time Saved: Within the IT OrganizationIT Time Saved: Within the IT Organization

• Half report the IT Half report the IT dept. saves five or dept. saves five or more hours per more hours per week because of week because of IP telephony IP telephony implementationimplementation

0%

3%

26%

21%

21%

5%

24%

0% 25% 50% 75% 100%

% of respondents

Less than 30 minutes

30 minutes - 1 hour

1 – 3 hours

3 – 5 hours

5 – 7 hours

7 – 9 hours

More than 9 hours

Q35: How much time is saved per week within the IT organization as a result of IP telephony implementation? N=38


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IT Time Saved: Reduced TravelIT Time Saved: Reduced Travel

• More than half More than half report saving 8 report saving 8 hours or more per hours or more per month because of month because of the IT staff’s the IT staff’s reduced need to reduced need to traveltravel

14%

28%

31%

11%

17%

0% 25% 50% 75% 100%

% of respondents

Less than 4hours

4 – 8 hours

8 – 16 hours

16 – 24 hours

24 or morehours

Q30: How much time is saved per IT employee per month as a result of the reduced need to travel? N=36


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IP Telephony IT Benefits: Non-ProductivityIP Telephony IT Benefits: Non-Productivity

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Money Saved: Less Cabling RequiredMoney Saved: Less Cabling Required

• Almost two-thirds Almost two-thirds report saving report saving $5,000 or more per $5,000 or more per year on cabling year on cabling expensesexpenses• ““Other” response Other” response

included up to included up to “50%” of cabling “50%” of cabling expenseexpense5%

10%

21%

26%

24%

5%

10%

0% 25% 50% 75% 100%

% of respondents

Other

$999 or less

$1,000 - $5,000

$5,001 - $10,000

$10,001 - $50,000

$50,001 - $100, 000

$100,000+ per year

Q25: By how much has cabling expense decreased per year as a result of implementing IP telephony? N=42


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Money Saved: Decreased Equipment ExpensesMoney Saved: Decreased Equipment Expenses

• More than half report More than half report saving $10,000 per saving $10,000 per year or more on year or more on equipment equipment expenses*expenses*• ““Other” respondents Other” respondents

had difficulty had difficulty quantifying the quantifying the amount of money amount of money savedsaved

10%

7%

13%

17%

20%

20%

13%

0% 25% 50% 75% 100%

% of respondents

Other

$999 or less

$1,000 - $5,000

$5,001 - $10,000

$10,001 - $50,000

$50,001 - $100, 000

$100,000+ per year

Q24: By how much has equipment expense decreased per year as a result of implementing IP telephony? N=30


*Due to small sample size, results are considered directional only.

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Money Saved: Decreased Reliance on Money Saved: Decreased Reliance on External VendorsExternal Vendors

• More than half report More than half report saving $5,000 or more saving $5,000 or more per month on external per month on external vendors’ support and vendors’ support and servicesservices• Increases with Increases with

company size*company size*• ““Other” responses Other” responses

indicated this benefit indicated this benefit was non-monetarywas non-monetary

3%

13%

25%

22%

19%

13%

6%

0% 25% 50% 75% 100%

% of respondents

Other

$999 or less

$1,000 - $5,000

$5,001 - $10,000

$10,001 - $25,000

$25,001 - $50,000

Over $50,000 per month

Q31: How much money is saved per month due to decreased reliance on external vendors for support, services? N=32



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Money Saved: Decreased Office Rental Money Saved: Decreased Office Rental ExpensesExpenses

• Three-quarters Three-quarters report saving report saving $5,000 or more per $5,000 or more per month on office month on office rental expenses*rental expenses*

0%

22%

35%

13%

17%

13%

0% 25% 50% 75% 100%

% of respondents

$999 or less

$1,000 - $5,000

$5,001 - $10,000

$10,001 - $25,000

$25,001 - $50,000

Over $50,000 per month

Q32: By how much has office rental expense decreased per month as a result of more employees being able to work from home? N=23



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IP Telephony End-User Benefits: IP Telephony End-User Benefits: ProductivityProductivity

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End-User Time Saved: Changing WorkspacesEnd-User Time Saved: Changing Workspaces

• Faster MACs are often Faster MACs are often thought of as an IT thought of as an IT staff benefit; this staff benefit; this research shows that research shows that non-IT employees also non-IT employees also benefit by moving benefit by moving workspaces more workspaces more oftenoften• This was a benefit we This was a benefit we

heard about in the heard about in the Phase 1 focus groups; Phase 1 focus groups; the survey confirms that the survey confirms that it is a relevant benefit to it is a relevant benefit to manymany

3%

26%

29%

21%

16%

5%

0% 25% 50% 75% 100%

% of respondents

Other

1 more moveper year

2 – 3 moremoves

4 – 5 moremoves

6 – 7 moremoves

More than 7moves

Q39: How much more frequently does each employee move workspaces per year with an IP telephony solution compared to without an IP telephony solution? N=38


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End-User Time Saved: Corporate End-User Time Saved: Corporate HeadquartersHeadquarters

• More than half of More than half of corporate corporate headquarters headquarters employees saves 3 employees saves 3 or more hours per or more hours per week because of week because of increased use of increased use of telephony featurestelephony features13%

31%

18%

21%

10%

8%

0% 25% 50% 75% 100%

% of respondents

Up to 1 hour

1 – 3 hours

3 – 5 hours

5 – 7 hours

7 – 9 hours

More than 9hours

Q44: How much time is saved per employee at corporate headquarters per week as a result of improved use of telephony features? N=39


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End-User Time Saved: Less Telephone TagEnd-User Time Saved: Less Telephone Tag

• More than half of More than half of employees save employees save three or more three or more hours per week hours per week because of less because of less telephone tagtelephone tag• That’s more than That’s more than

150 hours per 150 hours per employee per yearemployee per year

19%

24%

30%

8%

11%

8%

0% 25% 50% 75% 100%

% of respondents

Up to 1 hour

1 – 3 hours

3 – 5 hours

5 – 7 hours

7 – 9 hours

More than 9hours

Q42: How much time is saved per employee per week as a result of less telephone tag? N=37


57%!57%!

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End-User Time Saved: Remote Office EmployeesEnd-User Time Saved: Remote Office Employees

• More than 60% of More than 60% of remote office remote office employees save 3 employees save 3 or more hours per or more hours per week with week with improved access improved access to telephony to telephony featuresfeatures

10%

28%

30%

15%

8%

10%

0% 25% 50% 75% 100%

% of respondents

Up to 1 hour

1 – 3 hours

3 – 5 hours

5 – 7 hours

7 – 9 hours

More than 9hours

Q45: How much time is saved per employee at remote offices per week as a result of improved access to telephony features? N=40


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End-User Time Saved: TelecommutersEnd-User Time Saved: Telecommuters

• More than half of More than half of telecommuting telecommuting employees save 5 or employees save 5 or more hours a week more hours a week with remote access to with remote access to IP telephony featuresIP telephony features• ““Other” responses Other” responses

indicated this benefit indicated this benefit was not measured in was not measured in time savingstime savings3%

11%

18%

16%

21%

13%

18%

0% 25% 50% 75% 100%

% of respondents

Other

Up to 1 hour

1 – 3 hours

3 – 5 hours

5 – 7 hours

7 – 9 hours

More than 9hours

Q43: How much time is saved per telecommuting employee per week as a result of remote access to IP telephony features? N=38


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End-User Time Saved: Internal Dialing PlansEnd-User Time Saved: Internal Dialing Plans

• One third report that One third report that employees save three employees save three or more hours a week or more hours a week with internal dialing with internal dialing plans for nationwide plans for nationwide officesoffices• ““Other” responses Other” responses

indicated this benefit indicated this benefit was not measured in was not measured in time savingstime savings

Q53: How much time is saved per employee per week as a result of internal dialing plans for nationwide offices? N=36


3%

14%

25%

25%

19%

8%

6%

0% 25% 50% 75% 100%

% of respondents

Other

Less than 30minutes

30 minutes - 1hour

1 – 3 hours

3 – 5 hours

5 – 7 hours

More than 7 hours

33%!33%!

Documents

Confidential 2 The Productivity Effect: A Survey of IP PBX Customers Prepared for Cisco Systems The Productivity Effect: A Survey of IP PBX Customers