Retail Collaboration Benefits Calculator

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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).

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.