October 2000

Voice XML -- A Crisis For IVR

BY BRIAN STRACHMAN

IVR: COOL OR GROWING COLD?
When many people think about IVR, or interactive voice response, they think about an outdated mode of gathering and inputting information. Really, who needs the telephone now that the Internet is around? Well, most people do. In many cases, the telephone is still the simplest, easiest way to get access to things like banking information or even movie times. And what's better is that it works away from the home or office. (In case anyone doesn't already know, I've discussed the IVR industry on several occasions, and I've been one if its biggest advocates.)

As I've mentioned in previous columns, all an IVR really does is talk to a database. The "interactive" part of IVR communicates with various types of databases, allowing the user to either input or receive information via the telephone. The really great part is that we all have telephones, or at least can find one pretty easily.

However, when the Internet came along, many people predicted the end of the IVR industry. For example, they might say, "Think of how much cooler it is to check movie times and account balances over the Internet, rather than using a piece of technology from the 19th century."

Despite this erroneous view, the IVR industry continued to thrive, very profitably so. And now, the more forward-thinking IVR vendors are using their technical expertise to enter the realm of e-commerce. Who better than someone who has facility with the remote manipulation of databases to create a contact center that allows the user to talk that same database through multiple channels (computer or telephone)? It's so simple an idea, I wish I had thought of it.

VOICE XML DANGER
Will IVR continue to thrive, exploiting its advantages in the e-commerce space? Some people may express doubt, given the introduction of voice XML. Voice XML, or VXML, is an extensible markup language for distributed voice applications, or more specifically voice applications on the Internet. The same way the HTML is the common language for visual applications the Web, VXML will allow universal voice access online.

VXML is designed for creating audio dialogs that feature synthesized speech, speech recognition, and even DTMF key inputs. The goal is to provide a way to access Web pages over the telephone. This movement is being promoted by the Voice XML Forum, a group of vendors founded by AT&T, IBM, Lucent Technologies, and Motorola, whose goal is to make VXML the universal voice standard on the Web, and make most Web pages accessible to the telephone.

The really intriguing property about VXML is that anything that can be done on a Web page can now be done over the telephone. While this has been true previouly to some degree, VXML allows the worlds of telephony and the Internet to merge. One of the best applications I have seen demonstrated is not even consumer-based, but form driven. I refer to it as the "cable guy application," although there are surely other more marketable titles.

The idea is simple. Consider this scenario: When the cable guy (or any other remote service person) is on site and completes a job, he typically calls in to the office, reports the details of the completed job, and awaits instructions as to the next service call. On the other end, a call center agent inputs the information of the previous job, and then queries the database as to where to next send the technician.

This entire process is streamlined using VXML and some speech recognition. When the service person calls in, the system answers the call and prompts him to complete an online form... through the telephone. The form is populated and submitted just as if the service technician had done it from a computer. Then the system gives him directions and information about the next job, all without ever using a call center agent, and using the same interface designed for the Web.

Using the same interface is really the key. Right now, most databases have at least two different entryways, an IVR for the telephone, and a Web page for the computer. VXML makes the IVR redundant by embedding code in the Web page to make it accessible via the telephone. The user can simply dial into an 800 number, and deal with what appears to be IVR scripts with the telephone, yet in actuality be interfacing with the Web page. Does this put IVR vendors out of business? Hardly.

VOICE XML OPPORTUNITY
VXML should be taken as a wake-up call. I've said before that IVR vendors should leverage their experience with customer contact and database interfacing by entering a more e-commerce data-centric market. After all, there are certain design rules that apply to voice response systems that are very likely unknown to Web developers. This deficit could be filled in by the IVR vendors. This is their opportunity, for VXML will take a collaboration of skills to be successful. VXML, then, is a convenient bridge over which the IVR vendors may cross over to a higher growth market.

To conclude, I believe VXML is an amazing technology that will certainly find a home in e-commerce. It will be several years before we see widespread adoption, but it is now clear that voice is a necessary component in any e-commerce strategy. VXML will create opportunities for the IVR industry in voice-enabled e-commerce.

Brian Strachman is industry analyst, Voice and Data Communications, Cahners In-Stat Group. To correspond with the author, please send your comments to [email protected].

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