June 2000

BY DAVID PEREZ, COM2001.COM

Unified messaging. Web-based call control. Voice-recognizing personal assistants. Today's telephone systems are more technologically advanced than many of us ever imagined, and they are gaining more features and functions every year. Hundreds of calls coming into companies are automatically routed at the same time to the appropriate recipients, while workers send and receive voice mail messages, faxes and e-mail over the Internet using their PCs. Voice, data and messaging are merging together to maximize efficiency and minimize costs, giving companies of the future the ability to compete like never before.

But let's flash back for a moment to a simpler time, when there was no Internet and no PCs, and push-button phones were cutting-edge technology. Calls coming into companies were connected manually by a live operator, using cords and switchboards. Then came the 1960s and the advent of the PABX (private automatic branch exchange), as it was known at the time. For the first time since the telephone was invented, one worker could call another inside the company, as well as connect to an outside line without any operator assistance whatsoever. But the benefits didn't end there. There were cost savings inherent in this breakthrough system. Not only was there a need for fewer outgoing lines to the telephone company (reducing the costs incurred by the company for these lines), but calling from desk to desk no longer monopolized valuable phone lines that may have been needed for outgoing calls.

What became of the traditional switchboard operator? Did he or she go the way of black-and-white television and the milk man? Of course not. The operator's job became even more challenging, requiring courteous and efficient fielding of a multitude of incoming calls, connecting them to the appropriate parties. In short, the operator was obliged to be a phone-answering superhero. Today, these functions can be handled quite effectively by auto-attendants and automatic call distribution (ACD) technologies.

As for the PBX, as it later became known when all the systems were in fact automatic, it was not without its own hurdles to overcome. While the PBX did have time- and money-saving benefits, it was not as readily accepted by corporate America as one might expect. Many companies with their own existing telephone infrastructures were not willing to part with their systems and spend thousands of dollars on new technology that was not easily expandable -- or easy to use, for that matter. Many had archaic corporate networks that were complicated and not easily replaced without a great deal of investment. Of course, PBX systems at that time were proprietary and not able to be integrated into existing phone systems. Add to that the overall lack of innovation on the part of PBX system manufacturers in the 1980s and you had a system that was in a stall.

Eventually, PBX manufacturers began catching on. They added more flexibility, allowing systems to be expanded by adding cards and ports, giving companies the ability to handle more calls without tearing out their old systems and starting over with something bigger and better. Auto-attendant features became more useful and widespread, thus becoming more accepted by the general public. Thanks to open architecture, PBX systems were less likely to become technologically obsolete. PBX systems were integrated with the PC, making system administration and call handling even easier. In terms of the call center, the PBX allowed customer service representatives and company employees to speak to customers on a one-to-one basis when necessary, with other calls being routed automatically to their destinations. Instead of putting the operator out of a job, the PBX actually made his or her job easier and made the company more efficient and competitive.

Companies large and small implemented PBX systems. Whether it was a small law firm with 10 handsets or a large mail-order catalog company with a 500-person call center, the PBX was evolving into a highly efficient, ever-evolving telecommunications tool that could expand to tackle the changing needs of businesses.

Of course, the digital revolution of the 1990s that brought innovations and advancements to so many areas of our lives found its way into telephony, and the digital PBX was born. As a result, PBX systems could perform more functions than ever, using fewer resources than were necessary just a few years before. Features such as simultaneous voice and data transfer, automatic call forwarding and dial-by-voice were becoming standard practice, with more features being added all the time. PBX systems were becoming more reliable, too, because of advances in technology, manufacturing and engineering.

Today's fast-paced, mobile workforce has needs that go well beyond the conventional digital PBX, however. Workers must be able to access and manage their communications on the fly, and at a moment's notice -- from anywhere in the world. One sales representative might be at a meeting in Singapore, while another is on the road in Chicago, meeting with a prospective client. No matter where they are in the world, their e-mail, faxes and voice mail messages must be retrieved and managed on an ongoing, efficient basis if their customer service and business relationships are to thrive. Companies are no longer slaves to the endless treadmill of proprietary, closed systems with limited expansion. They demand telecommunications systems that are reliable, expandable and cost-efficient -- otherwise, many companies could not compete on a level playing field with bigger companies that have more resources behind them. After all, few companies can invest the millions of dollars necessary to implement and maintain some of the full-blown computer-telephony solutions available today. The truth is, they shouldn't have to. Internet PBX systems are now available that incorporate powerful hardware and software solutions that seamlessly and cost-effectively integrate all the needs of the modern workforce. These systems are robust, expandable, easy-to-use and low in operational and administrative costs.

To the call center, both inbound and outbound calls are easily and effectively managed using today's Internet-based PBX system. Communications such as e-mail, voice mail and fax documents are streamlined into one common inbox and directed where they need to go. A call to the sales department is routed immediately to the next available customer service representative, while at the same time, another caller can listen to the company directory and be automatically routed to the proper extension. Operators are not engaged in answering inbound calls, looking up employees in the company directory and then transferring the call. They are free to address only those calls that require immediate, personal attention.

With an Internet PBX, calls are distributed automatically to the appropriate recipients, so customer needs can be addressed effectively. Those calls that cannot be taken, or are chosen not to be taken using sophisticated Web-based call screening, are sent into voice mail or forwarded automatically to another number using "follow me"-type functions. An employee can simply designate a particular number, perhaps a cell phone number or another office location number, as the "follow me" number. All calls to the employee's desk phone would automatically be routed to the predetermined numbers, according to his or her specific instructions. This valuable efficiency function ensures that no opportunities are lost when an employee leaves his or her desk.

E-mail from customers can be screened by call center staff, then forwarded into the appropriate e-mail inbox, where they can be read aloud to the recipient using the voice recognition software available with some Internet PBX systems. This can be done over the phone from any remote location. Faxes can also be sent as e-mail attachments to customers who do not have a fax machine, while voice mail can be sent and received over the Internet as readable text -- all with the drag-and-drop simplicity that most of today's computer users are familiar with. These e-mail, voice mail and fax communications are all readily available and easily accessible in the customer service representative's e-mail inbox. This unified messaging model is the future of computer-telephony, and it is shaping the way today's calls centers, and companies in general, are managing their customers and their businesses.

The Internet-based PBX also has another distinct advantage over its predecessors -- there are systems available that are complete, turnkey solutions. The entire hardware and software package is seamlessly integrated to work smoothly and reliably. It is also not necessary to have a dedicated systems engineer or IT department resource available to maintain and administrate the system on an ongoing basis. Nor is it necessary to devote many hours training users in the system's functions and features. Internet PBX systems are generally extremely intuitive and easy to use. There is little need for users to wade though thick user manuals looking for answers to their questions.

Of course, one of the most important features any company's call center can offer its customers is efficiency. The faster a caller can get through to the right person, receive an e-mail reply or even leave a voice mail message, the happier he or she will be -- and the more successful the company will be in retaining that customer in the long term. Dropped, misrouted and missed calls diminish dramatically with the implementation of today's sophisticated Internet PBX systems. Looking up addresses and other contact information can be as easy as saying, "dial," then speaking the person's name.

The trend appears to be moving toward businesses not having to add additional phone lines or having to deal with predicting/managing their internal growth when it comes to their voice, data and messaging needs. They will simply pay for the extra bandwidth on a flat-rate usage basis. For example, if you needed to arrange a 48-way conference call one day, blast 50,000 e-mail messages the next, arrange a 2,000-way conference call the day after that and send one million e-mail messages and transfer 500 terabytes of data to a client on the fourth day, you would simply pay for the service without adding another phone or data line or any special equipment in your phone or computer room. This seems to be where the real future of computer-telephony is going: flexibility, cost-efficiency and ease of use.

The phone system of the future is nothing more than a few simple edge devices, like IP routers and switches, that look to a centrally hosted bank of computers with integrated IP gateways and gatekeepers to process calls and deliver enhanced services. These services will include unified messaging, conference calling, automated call distribution (ACD) and personal assistant functions and broadband Internet access that will, in turn, free users from the treadmill of managing and investing in a rapidly changing communications infrastructure.

The journey from the old days of the switchboard operator has certainly been a remarkable one. The lightning-fast speed at which technology is changing in today's e-business environment can be mind-boggling. So the question becomes, where is the PBX going? Recognizing computer-telephony is moving toward the convergence of multiple technologies will only make call center activities more efficient and responsive. The increased use of IP telephony to make calls over the Internet will bring with it inherent cost benefits, but there will also be an increased capacity benefit. With bandwidth becoming available virtually on demand, phone systems of the future will be able to respond to rising and falling needs of companies and their call centers on an as-needed, on-the-fly basis. Again, increased services, and the ability to send 50,000 e-mail messages to prospects, will not require additional phone or data lines. The increased usage would be supplied on-demand and paid for on a flat-rate usage basis. The same might hold true in the case of seasonal or event-driven spikes in call volume. Increased calls during the holiday season or during a special promotion could be handled efficiently thanks to Internet PBX solutions, without costing the company anything extra in added equipment, maintenance or administration. On-demand communications servers that provide companies with flexibility and cost-efficiency are indeed the future of computer-telephony, and are the not-too-distant future descendants of the good old-fashioned PBX.

We are in an exciting time of changes and advancements in technology. The evolution of today's PBX is here to stay; the future of anytime, anywhere communications is now. Please join me for the ride of a lifetime!

David Perez is the co-founder of COM2001.com, the manufacturer of InternetPBX, a business phone system that integrates unified messaging with real-time Web-based call control and personal assistant features. Before starting COM2001.com, Perez was president of Cellular Solutions and the founder of two other high-tech communications companies.