Essay Preview: Voip
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ZDNet Make the Case Series:
IT Business Case Template:
Voice over Internet Protocol (VoIP) Solutions
General Introduction
Voice over Internet Protocol (VoIP) is one benefit of the convergence between data and telecommunications. Companies today are seeing the value of transporting voice over IP networks to reduce telephone and facsimile costs and to set the stage for advanced multimedia applications and services such as unified messaging, in which voice, fax, and e-mail are all combined.
[Include description of selected VoIP product(s) or solution(s) here, including features, benefits, etc.]
This business case explores the opportunities and benefits that can be realized in the deployment of VoIP product(s) or solution(s), as well as the costs and associated risks involved. However, the template may need customization. Each organization is likely to have unique challenges and opportunities that the business case should address.
Need/Opportunity
Key technical and business objectives for VoIP:
Tangible goals or objectives
Lower recurring transmission charges
Deploy integrated voice-and-data applications
Reduce operating costs
Consolidate accounting systems
Reduce cost of owning two separate networks
Enable new features, services, and capabilities
Reduce customer churn
Reach new customers
Scope
Impact and benefits from deploying VoIP
Determine number of employees who send and receive voice and data services
Provide expanded set of services with new and higher-value offerings
Identify risk factors
Systems affected upon deployment of VoIP
Define project size and market opportunity
Manage complexity of technology
Increase bandwidth allocation
Select proper standards
Interoperate with other vendor systems
Improve latency
Stakeholders
Primary
Executives looking to expand market opportunities
Managers who want to maintain high level of customer satisfaction and reduce customer churn
Secondary
End-users like employees that communicate with co-workers, business partners, and customers
Alternatives
No change
No change may be the best option if there is no strong demand for voice and data convergence services.
Cost
While the cost for the VoIP service is eschewed, other costs may be incurred:
Inability to deliver expanded services to customers
Lost productivity of employees
Return on savings
Savings can be derived from the following:
Based on the costs, the potential return on investment for not implementing VoIP may be zero or a negative number
Risk
Risks include those mentioned in the “cost” section
Higher cost of phone call charges in the future
Delay Procurement/Implementation
Cost
While the cost of VoIP is postponed, other costs may be incurred:
Costs may be similar to a No Change alternative. However, these costs will decrease once the service is implemented at a latter time
The short-term savings of not implementing VoIP are weighed against the costs of waiting and avoiding other costs to determine length of time to break even and see a return on the initial expenses.
Several implementation timelines may be used to show the incremental costs of waiting shorter or longer periods
Risks
Future VoIP services may have higher costs if implemented
Future VoIP technology may not be compatible with current hardware therefore purchase of hardware will be necessary
Outsourcing
List possible vendors for outsourcing services. Solutions may be layered and come from multiple vendors, or may be a single solution from one vendor. For each vendor, consider:
Costs
Initial and monthly/ annual costs paid directly to the service provider for proposed solutions
Cost of ongoing maintenance
Costs related to make existing hardware or software compatible, such as upgrades, replacements, reconfigurations, and additional telecommunications tools/ facilities
Labor costs for installing and/or implementing VoIP
Issues with associating costs with operational budget rather than capital budget
Cost of additional bandwidth
Short-term savings of outsourcing over buying
Short-term