| VoIP providers have been playing on cheap | | | | employee productivity. However, CIOs need |
| international calling rates and low service fees to win | | | | quantifiable results that have to be measured |
| contracts from businesses that are becoming | | | | differently to make for a short cycle time. Some |
| increasingly cost conscious. However, C-level financial | | | | strategies employed by CIOs to gauge the |
| executives base their decisions on more than per | | | | performance and cost savings from a VoIP system |
| minute cost savings. VoIP service providers have their | | | | include: |
| job cut out - convincing corporate leaders about the | | | | - Measuring the impact of the time spent reconnecting |
| quick payback potential of investing in VoIP systems. | | | | dropped calls on an employee's productivity (loss of |
| Shorter breakeven period for technology spending | | | | salaried hours). |
| Trends show that corporate are looking at | | | | - Surveying customers and analyzing the impact of a |
| technologies that promise breakeven points within 6 | | | | clearer phone connection on sales lost or gained. |
| months - a sharp contrast to prevailing industry | | | | - Comparing the expense of running a tele-presence |
| standards of 18 months. In spite of advances in VoIP | | | | suite over VoIP services with an executive's travel |
| technology and products, this stipulation puts a lot of | | | | costs. |
| pressure on its service vendors. Vendors need to | | | | - Distributing the net cost of a new VoIP system over |
| produce financial breakeven data to win contracts | | | | the operations and maintenance budget of an existing |
| from buyers as corporate budgets are restricted to | | | | system for a period of 6 months. |
| purchases of projects that show significant returns | | | | Return on investment (ROI) cannot be determined |
| preferably within the same financial year. | | | | without accounting the cost of ownership. If a VoIP |
| Modular implementation of projects | | | | system successfully breaks even in 6 months, the |
| Restrictions on technology spending have made CIOs, | | | | business can look forward to removing a line item |
| CFOs, and managers rethink their project plans. | | | | from its budget. Few CEOs would argue with this cost |
| Technology needs are now met in a modular manner. | | | | benefit. |
| Earlier, implementing a VoIP system meant a lot of | | | | VoIP system service providers - Proving claims |
| changes in data lines, servers and desk equipment. | | | | VoIP service providers have to come up with sound |
| Today, interoperable equipment gives managers the | | | | financial data to back up their claims. They are using |
| flexibility to implement parts of a long-term project as | | | | case studies and numbers to prove the actual cost of |
| and when funds are available and business downtime | | | | ownership over the life of a VoIP's implementation. For |
| is minimized. | | | | example, a system that breaks even in 6 months and |
| Quantifying results of VoIP systems | | | | does not need billed maintenance for the next three |
| To measure the gains of installing or upgrading a VoIP | | | | years is a sure winner with CIOs. The budget allocated |
| system, CIOs have to consider both tangible and | | | | for the organization's business VoIP system can be |
| intangible results. Voice clarity and usable features are | | | | amortized over 36 months. |
| intangible results that contribute significantly to | | | | |