W H I T E P AP E R

V a l i d a t i n g t h e B u s i n e s s B e n e f i t s o f C o n v e r g e d C o m m u n i c a t i o n s Sponsored by: Siemens Information and Communications Networks, Enterprise Networks Division

Brian J. Bingham Paul Strauss Morris Edwards June 2003

E X E C U T I V E S U M M A R Y Any communications platform must allow users to communicate effectively and efficiently with each other and with customers and suppliers. To provide enterprises with a competitive edge, though, platforms also must provide maximum system availability. They also should minimize operating and support costs while increasing the accessibility and productivity of all employees, including executives, managers, professionals, remote branch employees, teleworkers, salespeople, and mobile workers.

To realize such benefits, more enterprises are migrating to a converged communications platform to integrate voice and data applications over a common IP infrastructure. In doing so, enterprises seek a smooth and easy migration path that protects their legacy system investment while ensuring the same voice quality.

One company that offers such a migration path to a converged solution is Siemens, with its HiPath communications platforms and applications. HiPath encompasses a variety of migration strategy options to move an enterprise to converged communications. This approach enables technology convergence at any level �desktop, workgroup, site, application, or network � in any sequence and at any time, while it protects the legacy investment. Depending on the existing infrastructure and user needs, the HiPath solution can contain a traditional private branch exchange (PBX), an IP convergence platform, or a pure IP softswitch. All of these solutions are easily networked and integrated into a single, centralized managed environment. A converged communications platform serves as the foundation for value-added converged applications. Both the platform and applications provide considerable business value to enterprises.

To validate the business benefits of such converged communications solutions, IDC interviewed many Siemens HiPath customers and asked questions regarding the benefits of deploying the HiPath solution, including cost savings and revenue improvements.

The IDC study focused on three popular HiPath applications: management, mobility, and contact centers. In each applications area, the results showed increases in management and administrative productivity as well as gains in user productivity and a reduction in user training costs. Other results include revenue gains, improved customer satisfaction, and a reduction in equipment and support costs.

Specifically, the study found that organizations deploying the Siemens HiPath platform with single-point network management and browser-based system administration saved an average 51% in network management costs and 55% in system administration costs. Average costs for moves, adds, and changes (MACs)

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The IDC study focused on three popular HiPath applications: management, mobility, and contact centers. In each applications area, the results showed increases in management and administrative productivity as well as gains in user productivity and a reduction in user training costs.

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fell by 67.9%. HiPath customers also realized an average 5.5% increase in user productivity and an average savings of 54.2% in user training costs.

Organizations deploying the Siemens HiPath MobileOffice solution increased employee productivity by an average of 10% and reduced IT administrative costs by an average of 3%. Organizations whose executives and other professionals are accessible while traveling saved an estimated 2% of revenue, on average. HiPath customers also realized an average 18% increase in teleworker productivity and an average 47% reduction in equipment costs to support teleworkers. In addition, employee retention rates increased by an average of 20%.

Businesses deploying the Siemens HiPath ProCenter suite into the contact center increased agent/supervisor productivity by an average of 15% while reducing call center network�related expenditures by an average of 5%. Survey respondents indicated that the ProCenter suite also enabled them to cut call center hiring/training costs by an average of 15%.

Additionally, the IDC study found that organizations using the ProCenter suite enhanced existing customer relationships, leading to an average 8% increase in customer satisfaction and loyalty. In that regard, respondents claimed that the Siemens product facilitated more effective cross-selling and up-selling of existing clientele by call center agents, resulting in an average increase of 10% in telesales revenue.

This white paper discusses the benefits of using a converged communications solution, including increased end-user and IT productivity, reduced communications expenses, lower support and remote access costs, and better LAN/WAN utilization. It also describes IDC's survey of enterprises using HiPath solutions and quantifies the business benefits realized from deploying management, mobility and unified communications, and contact center applications.

I N T R O D U C T I O N Many who have heard about the convergence of data networks and telephone systems are confused about the benefits. No wonder. Numerous articles and papers discuss IP telephony as if the technology were glorious in itself. Fortunately, IP telephony is worth considering because it brings real business benefits, such as more efficient systems management, improved configuration flexibility, reduced telephone expenditures, and � most important to most firms � improved workflow and end-user productivity.

Easier and more efficient systems management. Legacy system administration is time-consuming. Some legacy administration tools are still command oriented and do not allow scheduling or batching of administrative changes. These limitations add significant time to system administration. In contrast, new IP and converged systems typically reduce administration time because of the higher percentage of easier-to-use, object-oriented administration tools, which expedite MACs and reconfigurations.

Template-based administration minimizes the number of configuration steps required to install a telephone. Installing, changing, and removing users are among the most burdensome management requirements of a telephone system. In vintage telephone systems, the physical line to each employee was associated with a number, which an employee could not always keep when he or she changed offices. If the employee brought the old number to a new location, a manual entry had to be made in the system, linking that extension with the number. If not, configuration changes were still needed.

IP telephony brings real business benefits, such as more efficient systems management, improved configuration flexibility, reduced telephone expenditures, and � most important to most firms � improved workflow and end-user productivity.

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IP telephones enable users to perform plug-and-play IP desktop implementation and their own moves. A phone can be physically moved to another location and plugged into the network without the need for a technician to move the desktop. The system automatically recognizes the IP telephone, wherever its location may be. This process frees telecom and IT support teams to work on more strategic, value-added projects or allows smaller support staffs.

Siemens enables a more productive approach to mobility within the enterprise premises through its HiPath communications platforms, which allow employees to move their user profile from a primary location to a temporary location simply by logging in with a personal identification number (PIN). Additionally, with IP telephony and converged systems, an employee can be given either an IP telephone or a "soft phone." In both cases, the telephone function is associated with an IP address. When workers move on the corporate network and log in with their user ID/password, the HiPath system routes all of their calls accordingly. The savings can be substantial. With a traditional PBX, one simple employee change or move can often cost from $100 to $200.

In general, when a customer migrates to a completely converged network, the company uses a common infrastructure for both voice and data. This single infrastructure results in lower system administration and staff costs. Most customers, however, have a combination of legacy and IP technology, so organizations should look for native management tools that allow efficient management of coexisting technologies and network components.

Reduced telephone expenditures. Voice and fax traffic that use the traditional communications infrastructure rely on a public switched telephone network (PSTN) and thus are subject to tariffs that can be substantial in a noncompetitive environment.

There are also costs associated with providing access to users at a branch office or at home. In a legacy environment, a small office typically has a small switch with T1 or analog tie lines to connect to the main office or other sites. For home offices, users are generally equipped with two lines, one for voice and one for data, to provide narrow-band access and voice connectivity to the main office. The remote user would call periodically, often using a toll-free number, to retrieve voice messages from a central system. This setup results in multiple costs for all access lines. Hardware connection costs are also higher when supporting separate voice systems and data networks.

Firms often give calling cards to mobile workers so that they can make low-cost calls when traveling. This approach saves companies some money, but IP telephony can do better because firms can save more if mobile workers use soft phones. By using soft phones, mobile and remote workers can send and receive calls through their IP VPN service. Soft phones retain all the benefits of four-digit dialing within the system and enable all long-distance calls to be made through a single corporate office. In some cases, it is possible to make international calls through the system or to have a PBX in a low-cost long distance country call back to a traveler in a high-cost country.

Additionally, organizations can lower voice and fax communications costs through IP networking between multiple sites. Converged IP services allow a company to bypass toll PSTN charges by pushing the traffic to the corporate WAN. This bypass generates substantial savings on international calls and in areas where regional call charges are high. Generally speaking, many regulatory issues can be avoided when calls remain inside the organization.

IP telephones enable users to perform plug-and-play IP desktop implementation and their own moves. A phone can be physically moved to another location and plugged into the network without the need for a technician to move the desktop.

Firms often give calling cards to mobileworkers so that they can make low-cost calls when traveling. This approach saves companies some money, but IP telephony can do better because firms can save more if mobile workers use soft phones.

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Better LAN utilization. With IP and converged communications platforms, voice, data, and video run cost-effectively over the same network. Depending upon the company's requirements, this convergence leverages the LAN infrastructure and increases its capacity utilization.

Lower remote access costs. Converged IP services allow companies to more easily utilize and administer to the needs of workers at branch locations and mobile workers. For example, applications can be centrally hosted and upgrades can be pushed to multiple devices and locations using one mechanism. Through high-speed local access, such as digital subscriber line (DSL) or cable modems, converged network benefits can be seamlessly extended to the small office and home office environments.

Lower network support costs. A converged network allows a company to use a common infrastructure and cable plan for both voice and data. This convergence lowers hardware connection costs as well as the costs to deploy new voice over IP (VoIP) desktops that leverage the data infrastructure. Ultimately, this convergence results in a more flexible and scalable system.

Improved end-user productivity. The most significant IP telephone systems benefits come from improved end-user productivity. These benefits are made possible by new ways of using the telephone at home and at work in combination with the PC and with directories.

Click-to-dial was one of the earliest applications of IP telephone systems to leverage the benefits of integrating IP telephony and directories. Even four-digit dialing is wasteful compared with making a call with a single click. New applications make dialing even faster. The caller does not have to navigate to a personal or corporate directory. Instead, all recently placed and received calls are shown on the telephone display or as a Web page on the PC telephony client. In addition to making calling more efficient, such systems reduce user errors during the setup of teleconferences and provide graphical interfaces to voicemail systems. Other productive benefits spring from the association of incoming or outgoing calls with directories and databases. One application, for example, allows users to automatically time, code, and bill incoming and outgoing calls.

IP telephone systems also eliminate constraints imposed by location. With soft phones in laptop PCs, mobile workers enjoy all the benefits of being located within the corporate telephone system. Workers can take home standard IP telephones or can be issued special home IP telephones. This way, they receive and make calls as if they were in the office, all the while retaining all PC features such as click-to-dial and caller ID display. They also have the same mobility within the organization, whether visiting other company locations, sitting in conference rooms, or even walking down the hall, if there is a local wireless LAN.

New applications. Presence and availability management are among the new applications emerging for IP PBXs. Presence management allows the telephone system to show managers (and callers, too, if desired) the locations of staff members and if they are available, at lunch, traveling, or on vacation. One way to track employee presence and availability is with corporate or personal databases, which can hold information about scheduled holidays. Some approaches utilize an employee's PC or telephone usage to determine the individual's presence in the office. Systems may even display the location of the employee, deducing the physical location from his or her presence within a LAN segment or wireless zone. Each individual organization, of course, decides how to use this information.

Converged IP services allow companies to more easily utilize and administer to the needs of workers at branch locations and mobile workers. For example, applications can be centrally hosted and upgrades can be pushed to multiple devices and locations using one mechanism.

Presence and availability management are among the new applications emerging for IP PBXs.

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Another application provides links to voicemail systems that show the date a greeting was recorded and activated. Users often create internal or external greetings that refer to planned trips. but they may forget to change the old greeting upon their return. This feature helps to avoid such problems.

V AL I D A T I N G T H E B U S I N E S S B E N E F I T S O F C O N V E R G E D C O M M U N I C AT I O N S To validate the business benefits of such a converged communications solution, IDC interviewed many Siemens HiPath customers and asked questions regarding the benefits of deploying the HiPath solution, including cost savings and revenue improvements.

The study focused on three popular applications: management, mobility, and contact centers. For the communications management portion of the survey, IDC interviewed enterprises of various sizes in different industries about their costs and revenues before and after deploying the Siemens HiPath Communications Platform with HiPath 4000 Manager and HiPath MetaManagement software.

IDC found that organizations deploying the Siemens HiPath platform with single-point network management and browser-based system administration realized substantial cost savings in network management and system administration. HiPath customers also realized increased user productivity and lower user training costs.

To quantify the mobility benefits, IDC spoke with Siemens HiPath MobileOffice customers to determine the impact of the deployment on costs and revenues. The study found that deploying the HiPath MobileOffice unified messaging solution increased employee productivity. Customers' revenues also increased because executives and revenue-generating professionals were more accessible while traveling. In addition, IT administrative costs were reduced, employee retention rates improved, and teleworker productivity increased, while the real estate and equipment costs to support teleworkers fell.

Similarly, to validate the business benefits of deploying the Siemens HiPath ProCenter suite into the contact center, IDC interviewed many customers to compare their pre- and post-implementation service levels, infrastructure costs, operational costs, and revenue streams. Businesses deploying the HiPath ProCenter suite increased agent and supervisor productivity while reducing call center network�related expenditures. Customers indicated the ProCenter suite also enabled them to cut contact center hiring and training costs and enhance existing customer relationships. HiPath ProCenter facilitated more effective cross-selling and up-selling to existing clientele by contact center agents, resulting in increased telesales revenues.

C O M M U N I C A T I O N S M A N A G E M E N T

As enterprises evolve to IP communications that converge voice and data platforms and applications, they must have an effective network management solution that addresses networks, platforms, and applications at different stages of convergence. Siemens HiPath Communications Platform and management software aims to reduce infrastructure administration costs while maximizing system availability and improving user productivity.

To validate the business benefits of such a converged communications solution, IDC interviewed many Siemens HiPath customers and asked questions regarding the benefits of deploying the HiPath solution, including cost savings and revenue improvements.

As enterprises evolve to IP communications that converge voice and data platforms and applications, they must have an effective network management solution that addresses networks, platforms, and applications at different stages of convergence.

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HiPath 4000 Manager allows enterprises to save administration costs through single-point administrative access to multiple HiPath systems and a centralized data repository. These features allow user configurations and profile changes to be entered once for processing across all system databases in a network. Single data entry reduces the required time to perform first-time configurations, MACs, and other routine transactions. Template-based administration further reduces the required time to configure users and the possibility of errors.

Organizations in the IDC study saved an average 51% in network management costs and 55% in system administration costs by deploying the HiPath platform with single-point network management. The average cost for MACs fell by 67.9% (see Table 1).

T A B L E 1

SURVEY RESULTS OF HIPATH COMMUNICATIONS PLATFORM CUSTOMERS

Item Average (%)

Network management costs savings 51

System administration costs savings 55.1

MAC costs savings 67.9

Licensing costs savings 20

Mean time to repair faults improved 80.4

Trunking costs savings 2.5

Network costs to support quality of service reduced 3

Telephone costs reduced 31.3

Support costs for modular phones savings 12

Installation costs for new facilities reduced 30

Attendant productivity increased 60

Attendant FTEs* needed reduced 38

End-user productivity increased 5.5

User training costs reduced 54.2

* Full-time equivalents

Source: IDC, 2003

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Further savings are possible through unrestricted movement of user licenses among sites. With this HiPath 4000 Manager capability, enterprises are no longer bound to purchase a fixed number of management licenses for each switch. Instead, they work with a total license pool for the network and allocate the licenses according to dynamic subscriber needs.

Organizations in the IDC study saved an average of more than 20% in overall licensing costs and associated MAC expense.

HiPath MetaManagement works with HiPath 4000 Manager to allow enterprises to monitor service levels, maximize system availability and performance, and allocate costs based on network usage. It includes the functional areas of Fault Management, Quality of Service (QoS) and Performance Management, Accounting Management, and User Management. HiPath Accounting Management delivers usage data from multiservice networks through a Web browser interface. This capability allows organizations to optimize network usage and to deter fraud and misuse of company assets.

HiPath Fault Management identifies and diagnoses network faults and assists the system manager in identifying and fixing network faults, increasing network availability and reducing the revenue lost due to unplanned downtime.

Organizations in the IDC study reduced mean time to repair (MTTR) faults by an average of 80.4%.

Built-in traffic monitoring and control capabilities aid performance management, identify and eliminate excess trunks, and optimize provisioning. Least cost routing selects the best route for traffic, either through the PSTN or IP backbone, based on routing table settings.

Organizations in the IDC study reduced trunking costs by an average of 2.5%.

QoS ensures the level of service required for time-sensitive applications, such as VoIP.

Organizations in the IDC study that implemented QoS monitoring and control applications showed an average 3% reduction in network costs.

By consolidating voice and data circuits at the network edge, the HiPath platform reduces access and hardware connection costs as well as the expense of deploying and supporting end points and systems. Certain planned future costs can also be avoided. For instance, phones do not need to be replaced to meet changing user needs. Modular phones are readily customized to support additional user requirements, such as adding support for an analog device, a second digital phone, or a headset. Further, built-in TAPI and USB interfaces simplify and speed deployment of standards-based applications.

Organizations in the IDC study reduced their annual phone expenditure an average of 31%. They also reduced their new facilities installation costs an average of 30% and their modular phone support costs an average of 12%.

HiPath platforms that are IP networked also allow a single attendant to simultaneously support multiple sites. A user's ability to search and dial from a directory using any display telephone frees up attendants to be more productive in other areas.

Organizations in the IDC study saw an average 60% increase in attendant productivity, which translates into a 38% reduction in attendant full-time equivalents (FTEs).

Organizations in the IDC study reduced mean time to repair (MTTR) faults by an average of 80.4% and trunking costs by an average of 2.5%.

Organizations in the IDC study reduced their annual phone expenditure an average of 31%. They also reduced their new facilities installation costs an average of 30% and their modular phone support costs an average of 12%.

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Convergence also enhances user productivity with such capabilities as user and device mobility, click-and-dial directory applications, and rules-based call handling and routing. Multimedia features increase user productivity by enabling better collaboration. HiPath platforms are designed to reduce the need for new employee and ongoing training with homogeneous feature sets for digital and IP desktops and interactive, context-sensitive instructions provided through the optiGuide user interface.

Organizations in the IDC study realized an average increase of 5.5% in user productivity from deploying the HiPath platform and optiPoint and optiClient devices. They also reduced user training costs by an average of 54.2%.

M O B I L I T Y A P P L I C A T I O N S

Mobility is essential in today's highly competitive and customer-focused business world. However, it can be costly if an executive or salesperson is not easily accessible while traveling and thus unable to respond to a customer's urgent request or deal with key time-sensitive issues. Mobility applications allow traveling executives and other mobile workers to enjoy the same communications features they have in the office, so that they are always accessible and responsive while on the road.

When executives can be reached in the office, on the road, at home, or at a remote site, they are always available to make decisions about key issues and maintain their productivity levels. Because salespeople and support staff travel so much, they have significant amounts of unproductive time when they are without email access and other communications capabilities. Further, companies stand to lose business revenue if their customers become frustrated because they cannot reach a sales representative when necessary.

By providing access to corporate resources � anywhere, at anytime � Siemens' HiPath MobileOffice improves the accessibility and productivity of every teleworker and mobile employee.

Organizations in the IDC study estimated that average savings from executives and other professionals who are accessible while traveling amounted to 2% of revenue (see Table 2).

T A B L E 2

SURVEY RESULTS OF HIPATH MOBILEOFFICE CUSTOMERS

Item Average (%)

Savings from executive/professional accessibility while traveling 2

Employee productivity increase 10

IT administration costs savings 3

Teleworker productivity increase 18

Equipment costs to support teleworkers savings 47

Employee retention rates increase 20

Source: IDC, 2003

Mobility applications allow traveling executives and other mobile workers to enjoy the same communications features they have in the office, so that they are always accessible and responsive while on the road.

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HiPath CorporateConnect provides single-number/single-device capability; that is, it allows clients to reach any employee by calling a single number. This capability reduces the need for assistants to handle calls or take messages. It also reduces the number of times clients must leave voice messages because individuals are more likely to receive the client's call. Costs are minimized by routing calls through the corporate network using least cost routing. If workers need to change their mobile number, their accessibility is unaffected because clients continue to reach them through the single corporate number. Additionally, clients are protected if an employee leaves the company because their calls can be rerouted to a new company contact.

HiPath Xpressions unified messaging solution merges voicemail, fax, and email and gives users simple and direct access to all their messages, whether they are traveling or at the office. HiPath Xpressions provides user interfaces for both the PC and the telephone, which permit access to all message types from the device that is most convenient. On the PC, voice and fax messages are combined with email within the user's inbox, On the telephone, text-to-speech capability allows emails to be read and responded to while traveling. The user always has access to important messages and information for improved responsiveness and decision making. Additionally, with integrated fax messaging, users can save time by sending and receiving faxes electronically. HiPath Xpressions also helps reduce administrative costs. Conventional messaging technology consists of separate voice, fax, and email systems, which may require multiple sets of support and administration personnel. With a single system and centralized message store, fewer resources are needed and data management is simplified.

Organizations in the IDC study increased employee productivity by an average of 10% and reduced IT administrative costs by an average of 3% with the HiPath unified messaging application.

HiPath Teleworking provides flexibility for part-time, at-home workers; gives companies greater flexibility in their personnel selection and deployment; and provides office space and support cost savings. HiPath Teleworking permits office workers to transparently split their time between working at the office, at home, or at an alternate location. Teleworkers have the same telephony features at home (or alternate locations) and at work, so they are just as productive and accessible. For each office worker who is converted to a teleworker, the company realizes savings in real estate, capital equipment, and operating costs. Also, a portion of commute time is converted to productive time, and fewer days are missed due to inclement weather, unplanned family events, and personal medical conditions. Further, teleworkers can easily extend or change their working hours to accommodate the need to work with people in other time zones or to support special initiatives that require odd hours or split shifts. HiPath Teleworking also supports the geographical distribution of workers, reducing the impact of a disaster. With HiPath Teleworking, an employee who would otherwise leave the company due to a spouse's transfer, childcare needs, or preference for a different locale can now remain with the firm. The company saves the costs of losing and replacing an employee and retains a more loyal and productive worker. HiPath Teleworking also permits employers to tap the skills of disabled people who are not able to commute to an office and to take advantage of the talents of students, cyclical labor, or on-call labor.

Organizations in the IDC study realized an average 18% increase in teleworker productivity and an average 47% reduction in equipment costs to support teleworkers. In addition, employee retention rates increased by an average of 20%.

Organizations in the IDC study increased employee productivity by an average of 10% and reduced IT administrative costs by an average of 3%.

Organizations in the IDC study realized an average 18% increase in teleworker productivity and an average 47% reduction in equipment costs to support teleworkers. In addition, employee retention rates increased by an average of 20%.

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HiPath ComResponse provides a communications portal that allows authorized callers to access information without the need to reach the called party. Callers are often frustrated when they cannot reach their desired destination, particularly when they only need routine information. Delays can also be costly to a company if the caller's need is urgent and the delay will result in a lost order, difficulty in resolving a service problem, or a decline in customer satisfaction. When an employee is not accessible, HiPath ComResponse allows authorized callers to access back-end databases so they can obtain the necessary information. Employee productivity is also improved when callers can retrieve information without requiring the employee to answer the phone. In addition, mobile employees can improve their productivity by off-loading routine tasks to the communications portal. Callers can have routine questions answered, set up a meeting, or obtain the data they need without talking to the mobile employee.

C O N T A C T C E N T E R A P P L I C A T I O N S

With the sustained pressures to contain operating costs, develop new channels for marketing products and services, and generally become more competitive in the marketplace, many firms have pursued "next-generation" call center technology as part of their strategic plan to accomplish customer interaction mission and profitability goals. As businesses have realized this imperative, some communications vendors have risen to meet their call center�related technological and functional needs. More specifically, IDC has seen both pure-plays and legacy telecommunications providers introduce a variety of products over the past few years that help enterprises better serve their customers while streamlining call center operations.

By deploying leading contact center technologies, businesses can expect to improve any number of contact center metrics. Specifically, enhanced functionality will allow businesses to improve their time to answer and time to resolution, which, in turn, will increase overall customer satisfaction and loyalty. The operational efficiencies and enhanced customer experience will yield key business benefits, including cost savings, cost avoidance, revenue protection, and revenue increases.

Siemens' HiPath ProCenter Suites provide a scalable set of software, tools, and support for optimization of the contact center's operations. A primary component of the offering is an interactive routing package designed to ensure that customers are connected to the most qualified agents in the shortest period of time. The HiPath ProCenter Suites allow a business to contact their customers in the media of their choice � voice, email, or Web. HiPath Multimedia is fully integrated with HiPath ProCenter Suites, including HiPath Skills-based Routing, Queuing, Reporting, and Administration. This integration ensures that multimedia transactions are handled in the most professional and efficient manner, resulting in improved customer and employee satisfaction. At the front end of the customer call, HiPath ProCenter Prompt Response provides interactive voice response (IVR) functionality for transaction processing, information access, and other inbound call automation applications.

At the agents' level, HiPath ProCenter delivers a productivity tool intended to enhance the customer's experience. It gives agents voice/data integration with built-in screen pops for rapid access to business applications and customer-specific information.

HiPath ProCenter enables mobility by keeping executives, managers, supervisors, and agents informed via their mobile devices (personal digital assistants [PDAs]), with immediate notification of critical information. It also enables transparent customer access and operational capabilities to remote agents whether they are based at a home office or satellite location. HiPath ProCenter allows customers to schedule callbacks from a Web site, through an IVR system, or during a live conversation with an agent.

By deploying leading contact center technologies, businesses can expect to improve any number of contact center metrics.

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To validate and verify the true business benefits that can be attained by deploying the Siemens HiPath ProCenter suite into the contact center, IDC contacted a number of Siemens' customers. To measure the gains, we compared pre- and post-implementation service levels, infrastructure costs, operational costs, and revenue streams. We found that HiPath ProCenter users realized significant benefits by deploying the contact center suite. While the benefit levels varied by client, the nature of the benefits were strikingly similar.

Specifically, the study found that businesses were able to increase agent and supervisor productivity by an average of 15% while reducing contact center network�related expenditures by an average of 5% (see Table 3). Survey respondents indicated that the HiPath ProCenter suite also enabled them to cut contact center hiring and training costs by an average of 15%. Additionally, the IDC study found that organizations using the HiPath ProCenter suite were able to enhance existing customer relationships, leading to an average 8% increase in customer satisfaction and loyalty. In that regard, respondents claimed that the Siemens solution facilitated more effective cross-selling and up-selling of existing clientele by contact center agents, resulting in an average increase of 10% in telesales revenues.

T A B L E 3

SURVEY RESULTS OF HIPATH PROCENTER CUSTOMERS

Item Average (%)

Agent/supervisor productivity increase 15

Network-related expenses savings 5

Hiring/training costs reduced 15

Customer satisfaction/loyalty increase 8

Sales from cross-selling and up-selling increase 10

Source: IDC, 2003

C O N C L U S I O N By interviewing customers who have recently deployed Siemens' HiPath communications platforms and applications, IDC was able to validate and quantify the business benefits of converged communications.

During the interviews, we asked customers about the cost savings and revenue gains realized from deploying the HiPath communications platforms and three popular enterprise applications: management, mobility, and contact centers. In each area, respondents reported increases in management and administrative productivity as well as gains in user productivity and reductions in user training costs when compared with legacy systems. Additionally, respondents cited improved customer satisfaction and revenue gains as well as reductions in equipment and support costs from deploying the HiPath converged enterprise applications.

Survey respondents indicated that the HiPath ProCenter suite enabled them to increase agent and supervisor productivity by an average of 15% and cut contact center hiring and training costs by an average of 15%.

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