Retail Collaboration Benefits Calculator
Retail Collaboration Benefits Calculator
This calculator provides a simple way to approximate the business benefits of creating a collaborative retail solution infrastructure.

The calculator is intended as a tool to help retailers educate internal constituents about the possible benefits and opportunities of an implementation including voice replacement, collaboration productivity tools, and retail solutions. It is not intended as a definitive business case, and users of this calculator should not use this as the basis for justifying an implementation.

To get started, fill in the appropriate values for your organization in the shaded “input” area for the calculator below to see the potential benefits of a Cisco collaboration solution for your business.
Number of Stores
Number of Phones per Store (average)
Number of Employees at Headquarters
Number of Store Employees per Store (average)
Hourly Wage per Store Employee US$
Average Hours Worked per Week
Total District/Regional Managers
Average District/Regional Annual Salary per Manager US$
Number of Transactions per Store per Day (average)
Average Dollar per Transaction US$
For more details, see the chart below or the Benefits tab.

Use the selection boxes below to tailor your benefit forecast based on the Cisco and Cisco partner solutions you intend to deploy. Selecting or deselecting the boxes below changes the chart at the bottom of the page.

 
Include Cisco Voice Transformation Solutions
Include Cisco Productivity Transformation Solutions
  Include Cisco Business Process Transformation Solutions:  
 
Retail Connect with VoiceRite
 
Customer Service Connection with Radianta
 
Store Workforce Management Connection with Kronos or Infor
 
Store Floor Task Management with Reflexis
 
Retail Customer Call Routing with Spanlink




Disclaimer

The Retail Collaboration Calculator and its output provide general guidance only. Contents of this calculator are based on public information or third party research current as February 2009. You understand and agree that Cisco Systems, Inc., its affiliates and their respective directors, officers, employees and agents ("Cisco) are not engaged in rendering business, legal, accounting, tax, or other professional advice and services. The Tool must not be used as a substitute for consultation with professionals. While Cisco has attempted to provide reliable data and formulae in this Tool, Cisco is not responsible for any errors or omissions, or for the results obtained from the Tool. You shall indemnify and hold Cisco harmless from any and all losses, damages, liabilities, settlement, costs and expenses as incurred, arising out of or related to your use or misuse of the Tool. THE TOOL IS PROVIDED AS IS, WITH NO WARRANTIES OF ANY KIND, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE, COMPLETENESS, ACCURACY OR TIMELINESS. IN NO EVENT WILL CISCO BE LIABLE TO CUSTOMER OR ANYONE ELSE FOR ANY DECISION MADE OR ACTION TAKEN IN RELIANCE ON THE INFORMATION OR OUTPUT OF THIS TOOL OR BE LIABLE FOR ANY LOST REVENUE, PROFIT, OR DATA, OR FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES HOWEVER CAUSED AND REGARDLESS OF THE THEORY OF LIABILITY ARISING OUT OF THE USE OF OR INABILITY TO USE TOOL EVEN IF CISCO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. Any use of the Tool is at user's sole risk.

View details links to see annual benefits.  
Cisco Voice Transformation: VOIP, High Network QoS, Power Over Ethernet, Call Control
  Voice and connectivity trunking expense reduction
  Toll and usage charge expense reduction
  Conferencing and voicemail expense reduction
  Support and maintenance expense reduction
  Operating personnel expense reduction
   
Section Total
Cisco Productivity Transformation: Click to Call, Presence, and Mobility
5-Year Benefits
  Improve telephony, voicemail, and conferencing productivity for in-store employees
  Improve telephony, voicemail, and conferencing productivity for in-store management
  Improve telephony, voicemail, and conferencing productivity for regional/traveling managers
  Improve telephony, voicemail, and conferencing productivity of headquarter employees
  Reduce headquarters employee infrastructure burden
   
Section Total
Cisco Business Process Transformation Solutions
5-Year Benefits
  Retail Connect: Increase profit through prioritized handling of incoming high-value customer calls
  Retail Connect: Increase profit through proactive and timely customer call-backs
  Retail Connect: Reduce OpEx through streamlined invoice order entry
   
Total
 
  Customer Service Connection: Increase profit through faster in-store response and improved department coverage
  Customer Service Connection: Decrease in-store staffing costs through improved store
floor coverage
   
Total
 
  Store Workforce Management Connection: Reduce in-store labor costs through better workforce management practices
  Store Workforce Management Connection: Increase profit through better department and
floor coverage
   
Total
 
  Store Floor Task Management: Increase profit through improved task communication and management
  Store Floor Task Management: Reduce governance and non-compliance costs
   
Total
 
  Retail Customer Call Routing: Increase profit through optimized routing of sales and
service calls
   
Total
     
   
Section Total
 
Grand Total


Disclaimer

The Retail Collaboration Calculator and its output provide general guidance only. Contents of this calculator are based on public information or third party research current as February 2009. You understand and agree that Cisco Systems, Inc., its affiliates and their respective directors, officers, employees and agents (ÒCisco) are not engaged in rendering business, legal, accounting, tax, or other professional advice and services. The Tool must not be used as a substitute for consultation with professionals. While Cisco has attempted to provide reliable data and formulae in this Tool, Cisco is not responsible for any errors or omissions, or for the results obtained from the Tool. You shall indemnify and hold Cisco harmless from any and all losses, damages, liabilities, settlement, costs and expenses as incurred, arising out of or related to your use or misuse of the Tool. THE TOOL IS PROVIDED AS IS, WITH NO WARRANTIES OF ANY KIND, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE, COMPLETENESS, ACCURACY OR TIMELINESS. IN NO EVENT WILL CISCO BE LIABLE TO CUSTOMER OR ANYONE ELSE FOR ANY DECISION MADE OR ACTION TAKEN IN RELIANCE ON THE INFORMATION OR OUTPUT OF THIS TOOL OR BE LIABLE FOR ANY LOST REVENUE, PROFIT, OR DATA, OR FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES HOWEVER CAUSED AND REGARDLESS OF THE THEORY OF LIABILITY ARISING OUT OF THE USE OF OR INABILITY TO USE TOOL EVEN IF CISCO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. Any use of the Tool is at userÕs sole risk.

Include Cisco IT Transformation Solutions

Establishes the VOIP Platform, Network QoS, Power over Ethernet and Call Control needed to modernize your telephony infrastructure.

Include Cisco Employee Transformation Solutions

Leveraging the VOIP Platform, a series of web, voice and video turn-key services can be deployed to make nearly any buisness process more efficient.

Retail Connect with VoiceRite

Identifies incoming priority customer calls to ensure higher level of service while enabling the return of missed calls.

Customer Service Connection with Radianta

Allows customers to directly connect with the most appropriate in-store employees, while providing management with service response metrics.

Store Workforce Management Connection with Kronos or Infor

Gives store employee real-time accessibility to workforce management applications from store IP phones.

Store Floor Task Management with Reflexis

Provides store employees with direct access to task assignments while communicating compliance status to retail management.

Retail Customer Call Routing with Spanlink

Intelligently routes customer sales and service calls based upon service agent availability enabling improved, 24/7 customer service and faster order processing.

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Voice & connectivity trunking expense reduction
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Annual expense per analog trunk
A
Total number of analog trunks
B
Annual expense per voice T1 line
C
Total number of T1 lines used for voice
D
% reduction in total annual expense for phone lines, T1 etc.
E
Formula: -1*((A*B)+(C*D))*E
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Unlike traditional TDM-based communications systems, Cisco's pure IP platform can direct voice and data traffic over a single converged network. This enables businesses to rationalize phone lines within sites as well as across multiple sites in a region (the extent of line reduction will depend on proportion of on-net traffic), and eliminate individual POTS lines for faxes and other dial-up services (e.g., use fax server over WAN rather than paying monthly charge per line). This platform also helps drive cost reductions in PSTN interconnect charges (usage based costs as well as leased lines) paid to the Local Exchange Carrier (LEC) by directing more of the local voice traffic over the corporate LAN/WAN.

Single number reach (SNR) enables further savings by reducing cell phone air-time. About 40% of the times the cell phone is answered, it's on Campus. SNR allows businesses to switch those minutes to the PBX.

Toll & usage charge expense reduction
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total annual expense for local calls ($)
A
Total annual expenses for domestic long distance calls ($)
B
Total annual expenses for international calls ($)
C
% reduction in total annual expense for local calls
D
% reduction in total annual expenses for domestic long-distance
E
% reduction in total annual expenses for international long-distance
F
Formula: -1*((A*D)+(B*E)+(C*F))
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Unlike our competitors with TDM or hybrid-IP offerings, Cisco's pure IP Unified Communications platforms drives significant savings in long distance costs. Key drivers of these savings are:

Toll bypass - ability to route inter-site calls over WAN and avoid paying toll charges to service providers.

Tail-end hop off - ability to route calls through WAN to maximum possible extent and use external network only at the tail-end (e.g., for international call from New York to customer in London, route calls through WAN between company sites in New York and London, then access London PSTN to place local call at that end).

Single number reach - Allows businesses to avoid premium price international calls from cell phone by routing them on-net or at fixed telephony prices.

Conferencing & voicemail expense reduction
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total annual expenses on Audio Conferencing ($)
A
Total annual expenses on Video Conferencing ($)
B
Total annual expenses on voicemail ($)
C
% reduction in audio conferencing expenses
D
% reduction in video conferencing expenses
E
% reduction in voicemail expenses
F
Formula: -1*((A*D)+(B*E)+(C*F))
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Exclusively from Cisco is a pure IP, converged Unified Communications platform that enables true seamless unified communications including single unified mailbox and audio, video and web collaboration. This enables significant benefits in a number of areas:

a) On-net conferencing bridges can be self-managed and eliminates premiums paid to conferencing service providers; additionally, routing conference calls over the WAN can help avoid the bulk of 800 number charges and also eliminate charges for dedicated ISDN lines/bandwidth needed for video.

b) Lower costs and better quality of video conferencing helps drive utilization and consequently lower costs of travel.

c) Centralized network voicemail system lowers equipment cost for voicemail and is easier to maintain and support than managing different systems at individual sites; storage requirements for voicemail can be consolidated with data storage, driving better management of storage capacity. Based on Salire third-party analysis of IPT implementations at over 20 retailers.

Support & maintenance expense reduction
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total number of moves, adds, changes
A
Average time per event (hours)
B
Fully loaded cost per hour ($)
C
Total annual maintenance expenses ($)
D
% reduction in MACs
E
% reduction in maintenance expenses
F
Formula: -1*((A*B*C*E)+(D*F))
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Unlike traditional TDM systems that involve physically moving cards around in the PBX, with charges of $150-$200 per move being paid to a third-party provider, Cisco's Unified Communications platform is essentially an IP PBX, e.g., a software based PBX which enables extension mobility. In other words, phone moves are "soft" moves that are easily accomplished in a matter of minutes with a few clicks of the mouse.

This also drives lower equipment maintenance cost (e.g. break fix on traditional geographically dispersed PBX requires expensive labor and parts with third-party providers whereas IP PBX is centralized in clusters and therefore much easier and cheaper to maintain); additionally, software upgrades for the IP platform are also cheaper and less complex compared to replacing cards and hardware.

Lastly, Cisco's converged platform also results in lower wiring costs for new buildings because separate drops for phones are no longer needed.

Based on Salire third-party analysis of IPT implementations at over 20 retailers.

Operating personnel expense reduction
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total number of PBX, Telephony & other FTEs
A
Average fully loaded cost per FTE per year ($)
B
% reduction in annual personnel expenses
C
Formula: -1*(A*B*C)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Unlike traditional TDM-based competitors, Cisco's pure-IP unified communications platform enables reduction in operating personnel dedicated to supporting the voice network. This is because centralization, and convergence of voice and data networks leads to economies of scale and enables streamlining of workforce.

Further, the relative ease of support and maintenance activities using management software (compared to the traditional hardware-centric PBX) drives reduced demand for operating personnel.

Improve telephony, voicemail, and conferencing productivity for in-store employees
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total number of in-store employees
A
% of in-store employees in project scope
B
Average annual in-store employee salary plus benefits
C
Average hours worked per week
D
Number of hours saved/week via Cisco Presence, Click to Collaborate & Converged Collaboration
E
Number of hours saved/week via Cisco Unified Mailbox & Visual Voicemail
F
Number of hours saved/week via Cisco Single Number Reach (find expert) and Call Continuity
G
Number of hours saved/week via Cisco TelePresence and desktop video
H
Formula: -1*(A*B*C)*(D/(E+F+G+H))
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Cisco Unified Communications capabilities such as Single Number Reach, Presence, and video can help retail associates provide better service to customers, especially when integrated with key retail tasks and applications. In fact, an IBM study on "Retail Task Integrations" in 2007 found that associate floor time can be improved by one hour per employee.

An intangible productivity benefit can be transformed into a tangible benefit via three methods:

1. The organization may choose to reduce or redeploy the headcount of the affected department commensurate with the productivity gain.

2. The organization may choose to close open headcount requisitions of the affected department commensurate with the productivity gain.

3. The organization may choose to have the employees of the affected department to work on a "higher-order" of work, such as management reporting, customer-facing activities, or forecasting and planning.

Improve telephony, voicemail, and conferencing productivity for in-store management
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total number of in-store managers
A
% of in-store managers in project scope
B
Average annual in-store managers salary plus benefits
C
Average hours worked per week
D
Number of hours saved/week via Cisco Presence, Click to Collaborate & Converged Collaboration
E
Number of hours saved/week via Cisco Unified Mailbox & Visual voicemail
F
Number of hours saved/week via Cisco Single Number Reach (find expert) and Call Continuity
G
Number of hours saved/week via Cisco TelePresence and desktop video
H
Formula: -1*(A*B*C)*((E+F+G+H)/D)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Forrester Research's "Unified Communications Industry Study" in 2006 found that 75% of store managers expect Single Number Reach to save them time, to the tune of 22 minutes per event (weighted average across all respondents). Assuming just 2 events per week, this could save ~5 days per year for each manager. The same study also concluded that Unified Communications could enhance store manager productivity by streamlining response to Out of Stock situations, with 50% expecting that store managers could save up to 30 min. Ð 1 hour per day.

An intangible productivity benefit can be transformed into a tangible benefit via three methods:

1. The organization may choose to reduce or redeploy the headcount of the affected department commensurate with the productivity gain.

2. The organization may choose to close open headcount requisitions of the affected department commensurate with the productivity gain.

3. The organization may choose to have the employees of the affected department to work on a "higher-order" of work, such as management reporting, customer-facing activities, or forecasting and planning.

Improve telephony, voicemail, and conferencing productivity for regional/traveling managers
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total number of regional/traveling managers
A
% of regional/traveling managers in project scope
B
Average annual regional/traveling manager salary plus benefits
C
Average hours worked per week
D
Number of hours saved/week via Cisco Presence, Click to Collaborate & Converged Collaboration
E
Number of hours saved/week via Cisco Unified Mailbox & Visual voicemail
F
Number of hours saved/week via Cisco Single Number Reach (find expert) and Call Continuity
G
Number of hours saved/week via Cisco TelePresence and desktop video
H
Formula: -1*(A*B*C)*((E+F+G+H)/D)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Cisco Unified Communications capabilities such as Presence, click to collaborate, converged collaboration, unified messaging and video collaboration (including TelePresence) can save time and speed the process of communication and collaboration within and across functions. These capabilities are particularly impactful for virtual teams or employees who travel a lot. For example, as a result of deploying Cisco Unified Communications technology, one large software company estimated >$200 million annual productivity gains across their entire organization (e.g., in roles with communication intensity similar to corporate roles in retail businesses).

An intangible productivity benefit can be transformed into a tangible benefit via three methods:

1. The organization may choose to reduce or redeploy the headcount of the affected department commensurate with the productivity gain.

2. The organization may choose to close open headcount requisitions of the affected department commensurate with the productivity gain.

3. The organization may choose to have the employees of the affected department to work on a "higher-order" of work, such as management reporting, customer-facing activities, or forecasting and planning.

Improve telephony, voicemail, and conferencing productivity of headquarter employees
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total number of product buyers, planners & merchant employees
A
% of product employees in project scope
B
Average annual product employee salary plus benefits
C
Average hours worked per week
D
Number of hours saved/week via Cisco Presence, Click to Collaborate & Converged Collaboration
E
Number of hours saved/week via Cisco Unified Mailbox & Visual voicemail
F
Number of hours saved/week via Cisco Single Number Reach (find expert) and Call Continuity
G
Number of hours saved/week via Cisco TelePresence and desktop video
H
Formula: -1*(A*B*C)*((E+F+G+H)/D)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

Forrester Research's "Unified Communications Industry Study" in 2006 found that communication bottlenecks when trying to meet demand for promotional products cause frequent delays ranging from 1 or more times per week to a few times per quarter. Cisco Unified Communications capabilities such as Presence, click to collaborate, converged collaboration, unified messaging and video collaboration (including TelePresence) can streamline these communications and speed the process of communication and collaboration within and across functions. As a result of deploying Cisco Unified Communications technology, one large software company estimated >$200 million annual productivity gains across their entire organization (e.g., in roles with communication intensity similar to corporate roles in retail businesses).

An intangible productivity benefit can be transformed into a tangible benefit via three methods:

1. The organization may choose to reduce or redeploy the headcount of the affected department commensurate with the productivity gain.

2. The organization may choose to close open headcount requisitions of the affected department commensurate with the productivity gain.

3. The organization may choose to have the employees of the affected department to work on a "higher-order" of work, such as management reporting, customer-facing activities, or forecasting and planning.

Reduce headquarters employee infrastructure burden
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Average square foot of office space per on-site employee
A
Average $ cost per square foot of office space per year
B
Average number of sheets of paper consumed per employee per year
C
Average $ cost per sheet of paper
D
Average additional $ burden per on-site employee per year
E
Total number of HQ on-site employees
F
% reduction of paper consumed via Cisco Collaborative Solutions
G
% of on-site employees eligible to work from home via Cisco Collaboration Sol.
H
Formula: -1*(((A*B)+E)*(F*H))+(C*D*G*F)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
75%
100%
100%
 

Assumptions

An intangible productivity benefit can be transformed into a tangible benefit via three methods:

1. The organization may choose to reduce or redeploy the headcount of the affected department commensurate with the productivity gain.

2. The organization may choose to close open headcount requisitions of the affected department commensurate with the productivity gain.

3. The organization may choose to have the employees of the affected department to work on a "higher-order" of work, such as management reporting, customer-facing activities, or forecasting and planning.

Retail Connect: Increase profit through prioritized handling of incoming high-value customer calls
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Annual average number of high-value customer transactions via phone
A
Average high-value customer Revenue per transaction
B
% of dropped, missed, or un-returned calls
C
% improvement in first-call-connect with High-Value customers via VoiceRite
D
% Improved conversion based on improvement on first-call connect
E
% Profit Margin
F
Formula: (((A*B*C)*D)*E)*F)
Expense Reduction [ Future - Current ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

Identifies and flag calls from high-priority customers, with pop-up data on the screen to enable a tailored experience for the most important customers. The solution also captures missed calls for additional sales opportunities.

1 - Drive profits through faster order handling time and customer satisfaction for priority customers.

2 - Drive profits through capture and call back to missed calls.

Retail Connect: Increase profit through proactive and timely customer call-backs
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Annual average number of customer transactions via phone
A
Average customer Revenue per transaction
B
% of dropped, missed, or un-returned calls
C
% improvement in expedient returned calls to customers via VoiceRite call logging
D
% Improved conversion based on timely call-backs
E
% Profit Margin
F
Formula: (((A*B*C)*D)*E)*F)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

Identifies and flag calls from high-priority customers, with pop-up data on the screen to enable a tailored experience for the most important customers. The solution also captures missed calls for additional sales opportunities.

1 - Drive profits through faster order handling time and customer satisfaction for priority customers.

2 - Drive profits through capture and call back to missed calls.

Retail Connect: Reduce OpEx through streamlined invoice order entry
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Annual average number of high-value customer transactions via phone
A
Number of seconds saved per transaction due to VoiceRite click to invoice via phone
B
Number of seconds saved per transaction due to VoiceRite accurate invoicing via phone
C
Number of weeks per year
D
Number of seconds per hour
E
Number of hours saved/week across all stores via VoiceRite Click to Invoice
F=((A*B)/D)/E
Number of hours saved/week across all stores via VoiceRite more accurate Invoicing
G=((A*C)/D)/E
Hourly Wage per Store Employee
H
Formula: -1*(D*(F+G)*H)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

An intangible productivity benefit can be transformed into a tangible benefit via three methods:

1. The organization may choose to reduce or redeploy the headcount of the affected department commensurate with the productivity gain.

2. The organization may choose to close open headcount requisitions of the affected department commensurate with the productivity gain.

3. The organization may choose to have the employees of the affected department to work on a "higher-order" of work, such as management reporting, customer-facing activities, or forecasting and planning.

Customer Service Connection: Increase profit through faster in-store response & improved department coverage
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total annual Revenue
A
% of lost sales due to inadequate department or floor coverage
B
% of lost sales due to inability to locate department subject matter expert staffing
C
% of lost sales due to inability of floor staff to respond to in-bound calls
D
% improvement in department, floor coverage, and phone coverage via the Radianta Mobile solution
E
% Improved conversion based on enhanced floor coverage
F
% Profit Margin
G
Formula: (((A*(B+C+D))*E)*F)*G
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

Allows customers to directly connect with the most appropriate in-store employees, while providing management with unprecedented insight into service responsiveness. Example: One employee assigned to multiple departments for in-store service requests and external call assistance. Use of IP phone as service request device. Service metrics capture.

1 - Drive profits thru customer satisfaction to faster response (in store) less store noise.

2 - Drive store employee productivity; don't have to walk to the phones.

3 - More profit and staff optimization because reporting on department coverage.

Customer Service Connection: Decrease in-store staffing costs through improved store floor coverage
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total annual non-management, in-store department and floor sales staff expense
A
% reduction in staffing due to Radianta's department/floor coverage analysis, reporting and optimization
B
Formula: -A*B
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

Allows customers to directly connect with the most appropriate in-store employees, while providing management with unprecedented insight into service responsiveness. Example: One employee assigned to multiple departments for in-store service requests and external call assistance. Use of IP phone as service request device. Service metrics capture.

1 - Drive profits thru customer satisfaction to faster response (in store) less store noise.

2 - Drive store employee productivity; don't have to walk to the phones.

3 - More profit and staff optimization because reporting on department coverage.

Store Workforce Management Connection: Reduce in-store labor costs through better workforce management practices
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total annual non-management, in-store department and floor sales staff expense
A
% of in-store staff expense attributable to overtime
B
% of in-store staff expense attributable to over-staffing
C
% of in-store staff expense attributable to questionable or malicious practices (false clock-in/out, etc.)
D
% of non-productive in-store travel time due to back office time-clock & on-boarding process
E
% reduction in overtime via tighter human capital management control
F
% reduction in staffing via tighter management reporting and analysis
G
% reduction in questionable or malicious practices through audit & management approval capabilities
H
% reduction of non-productive in-store travel time via phone time-clock & automated on-boarding process
I
Formula: -1*(A*B*F)+(A*C*G)+(A*D*H)+(A*E*I)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

Provides the store employees access to workforce management applications from multiple locations within the store while improving collaboration with store management.
Customer Benefits:
- Improve service levels provided by employees.
- Greater access to employees through improved floor coverage.
Employee Benefits:
- Workforce transactions at the point of work.
- No travel time.
- Speed up associate clock in at start of shift.
Retailer Benefits:
- Affordable endpoint devices, for flexible placement throughout the store.
- Real-time labor information, visibility, and control from the store floor.
- Improve allocation and management of store payroll investment.

Store Workforce Management Connection: Increase profit through better department and floor coverage
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total annual Revenue
A
% of lost sales due to inadequate department or floor coverage
B
% of lost sales due to insufficient staffing due to inadequate planning and scheduling systems
C
% improvement in department and floor sales coverage via the improved human capital management
D
% Improved conversion based on improved floor coverage
E
% Profit Margin
F
Formula: (((A*(B+C))*D)*E)*F
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

Provides the store employees access to workforce management applications from multiple locations within the store while improving collaboration with store management.
Customer Benefits:
- Improve service levels provided by employees.
- Greater access to employees through improved floor coverage.
Employee Benefits:
- Workforce transactions at the point of work.
- No travel time.
- Speed up associate clock in at start of shift.
Retailer Benefits:
- Affordable endpoint devices, for flexible placement throughout the store.
- Real-time labor information, visibility, and control from the store floor.
- Improve allocation and management of store payroll investment.

Store Floor Task Management: Increase profit through improved task communication and management
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total number of in-store employees
A
% of in-store employees in project scope
B
Revenue per hour per employee
C
Number of hours saved/week via store floor task management accessibility per employee
D
% Profit Margin
E
Number of hours saved/week via store floor task management accessibility per store manager
F
Number of hours saved/week via store floor task management accessibility per district/regional manager
G
Store Manager equivalent hourly fully burdened salary (6% of total employees)
H
District/regional manager equivalent hourly fully burdened salary
(1 per every 7 stores)
I
Total number of stores
J
Formula: (A*B*C*D*E)+((A*6%)*F*H)+((J/7)*G*I)
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

Gives the retailer the ability to assign tasks to an individual employee, store department, store management, and field supervision while providing the reporting to measure compliance. Access individual and department task assignments from the sales floor. Receive real-time new task assignments.

Incorporate task assignment into daily time keeping process (clock-in/clock-out). Acknowledge task completion at the time and from the place where work was conducted. Track and measure new hire training deliverables. Improve compliance by assigning tasks directly to store associates through IP phone. Automatically notify and escalate non-completed tasks through voice-based communication. Increase store workforce productivity. Enhance supervisor to store associate communication. Improve operational efficiency and increase task execution compliance (e.g. Product recalls). Measure task completion by individual employee (e.g. Benefits enrollment).


Store Floor Task Management: Reduce governance & non-compliance costs
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Estimated annual cost (lost Revenue) attributable to improperly trained employees
A
Estimated annual costs of avoidable injuries due to improperly trained employees
B
Estimated annual cost of avoidable employee and customer lawsuits due to lack of compliance with store operating procedures
C
of avoidable state, federal and industry fines due to lack of compliance with governing laws and standards of operation (e.g. product recalls, price changes, etc.)
D
Estimated annual energy waste due to non-compliance with heating, cooling, and lighting policy
E
Estimated preventable theft and leakage due to insufficient governance, oversight and auditing of security compliance
F
Estimated annual "other" costs due to insufficient governance, oversight and auditing of compliance
G
% governance improvement attributable to improved task management, auditing, reporting and management escalation
H
% Profit Margin
I
Formula: -1*((A*I)+B+C+D+E+F+G)*H
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Gives the retailer the ability to assign tasks to an individual employee, store department, store management, and field supervision while providing the reporting to measure compliance. Access individual and department task assignments from the sales floor. Receive real-time new task assignments.

Incorporate task assignment into daily time keeping process (clock-in/clock-out). Acknowledge task completion at the time and from the place where work was conducted. Track and measure new hire training deliverables. Improve compliance by assigning tasks directly to store associates through IP phone. Automatically notify and escalate non-completed tasks through voice-based communication. Increase store workforce productivity. Enhance supervisor to store associate communication. Improve operational efficiency and increase task execution compliance (e.g. Product recalls). Measure task completion by individual employee (e.g. Benefits enrollment).


Retail Customer Call Routing: Increase profit through optimized routing of sales and service calls
 
Variable
Current State
(as-is)
Future State
(with Cisco)
Total annual Revenue
A
% of lost sales due to inability to route call to appropriate sales, service, or product professional
B
% increased sales by extending operating hours (7x24) through call routing to available, remote: sales, service or product professional
C
% reduction in lost sales through better routing of phone inquiries to appropriate sales, service and product professionals
D
% Profit Margin
E
Formula: ((A*B*D)+(A*C))*E
Expense Reduction [ Current - Future ]

  Benefit Phase-in
Year 1
Year 2
Year 3
Year 4
Year 5
5-Year Benefit
25%
50%
100%
100%
100%
 

Assumptions

Intelligently routes customer sales and service calls based upon service agent availability enabling improved, 24/7 customer service and faster order processing. Fast, easy access to product and service information. Order placement according to individual customer preferences. Improved service levels. Centralized PBX, instead of multiple PBXs. Reduced operating costs. Greater routing flexibility. Consistent experience throughout each call.