Avaya Forum Barcelona: Optimize Your Enterprise Communications --
Reduce Cost, Lower Risk, Grow Revenue
Avaya recently held its very successful
Avaya Forum for its European, Middle-Eastern and African (EMEA) customers. The venue was beautiful --
Barcelona with all the flare and romance for which the Spanish are known. It was a great setting with many
of the top-level Avaya executives from both Europe and the USA readily
available to field customers’ questions.
The theme of the conference was “Reduce Cost – Lower Risk –
Grow Revenue.”
Avaya seems genuinely
interested in doing all three for its customers. While we are normally skeptical of these
sorts of “customer-centric” forums because of the normal marketing
hype and sales promotions, we walked away feeling that Avaya had really
turned a corner and come to some rather solid business directions and
decisions. Each executive spoke
with assurance that Avaya was moving in a new direction that would better
serve his or her customers. In fact, a statement made by Michael Thurk,
Group VP Enterprise Communications, particularly impressed us.
“Listen, we have to do
this stuff right. Communications
are our only product. e study
it, we live it, we breath it -- it is what we do. We don’t have any other products to
rely on to keep the company afloat, therefore, we have to excel at
building better products that meet your needs.” - Michael Thurk, Avaya
FOCUS ON COMMUNICATION APPLICATIONS SOFTWARE
That is a very powerful statement that sets a course for the future. Thurk
added that Avaya is changing from a hardware company to a software company
with a new emphasis on “business communications applications.” This
means more than just voice or speech-enabling user interfaces to business
applications; it means a combination of IP infrastructure, application
servers and end-user devices that enable personal contacts to be more
effective, which in turn makes the enterprise more productive. We coined the terms “micro-productivity”
to measure an individual’s productivity increase and “macro-productivity”
to measure the productivity increase across a group or the enterprise as a
whole. More importantly, we believe
that macro-productivity is where the real ROI payoffs to the enterprise
will be made from these new products and technologies.
Just as business process
engineering helped us streamline many of our enterprise work flow
operations, these new communication applications will improve enterprise
accessibility and responsiveness to its customers and supply chain
partners -- and that is where the real money is!
So Avaya’s new thrust is
“Lower Cost – Reduce Risk – Grow Revenue.” We feel that is the
proper mantra for the enterprise market.
LOWER COSTS: “IS THAT
ALL THERE IS?”
We are not sure if “lower cost” alone is truly viable, though. After the economy’s blood-bath of the
past years, the budget cuts, the “doing without but still doing the
business,” we have trimmed the fat and gotten back to lean operations. Yes, we could probably still shed a few
more dollars, just as we could always shed a bit more fat from the body
during a diet, but maybe we have reached a good enough state for now. Continuing to focus on cost reduction
may cause us to lose sight of a bigger payoff: Grow Revenue.
Avaya now provides the
ability to lower technology costs because they are dispensing with
expensive, proprietary hardware and leveraging IP technology
infrastructure. But that switch
introduces the risks of change into any operation -- as the adage states,
“If it ain’t broke, don’t fix it.” There are many, perfectly good
phone switches, voice mail systems and ACD boxes installed and running.
The expense to move to new technology may not be justifiable at this
point, plus it could be risky.
Avaya has overcome the “rip
and replace” mentality of the past and lowered the risk factor by
introducing their Unified Communication Center (UCC) product, along with
Professional Services whereby a customer can outsource the care and
feeding of enterprise communication technologies systems to Avaya. They have introduced some interesting
migration strategies to move their existing customers to the newer
platforms. And they have made their
newer products work with their older products to make that transition less
risky.
END-USER COMMUNICATION NEEDS AND REVENUE GENERATION
But the point that warmed our hearts the most was Avaya’s focus on
enabling their customers to grow their revenues, in addition to reducing
operational costs. They see that enterprise-wide communications are a very
critical ingredient to growing revenues -- just as integral as the
manufacturing production of “widgets” or methodologies for delivering
services. By providing technology
products that make enterprise communications more effective (less phone
tag, more responsiveness, faster decisions, fewer missed opportunities),
Avaya can help enterprise personnel efficiently and effectively acquire,
support and retain customers and make more sales. More sales mean more
revenue.
So, we are seeing a shift in emphasis from simply reducing costs
to that of group productivity and revenue focus. This is really practical
because it moves the enterprise perspective from just technology costs and
management toward increasing the operational benefits to its end users and
to the bottom-line results of the enterprise. That means a fundamental
change in how enterprise planning and deployment of new communication
technologies will take place. Rather
than focusing on technology administration, hardware consolidation,
packing more users onto one server, lowering the cost of handsets and disk
storage -- which inherently have limited payoffs, we can begin to focus on
more unlimited operational activities and payoffs.
Part 2
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