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TRANSCRIPT
TeleCom Tech Confusion: Cut Through the Clutter of New
Technologies and Applications for Dealership TeleCom Systems
With
Philip Sherman of Telecom Advisors Group
Moderated by
Mike Bowers of DealersEdge
Phillip A. Sherman - President/CEO, Telecom Advisors Group, IncPhillip has been a telecommunications professional since his first position with Harris Corporation in 1971. Since then, Phillip has held positions and acted as an independent consultant with firms such as United Technologies, Walker Communications, Western Union, WiltelTelecom Corp., Inter-tel, Union Bank, California Microwave, DataProducts and Bechtel Corporation.
Phillip has been a frequent speaker for The North American Telephone Association and continues to be active in industry trade shows and corporate speaking engagements. He's a published author with numerous articles involving various facets of the telecommunications industry.
The “Top 7” Dos and Don’ts of Choosing a Telephone System Upgrade
Cut through the clutter of the new technologies for your dealership
Speaker Background
� Active in Telecom Industry since 1971� Founder of four Telecom firms� Published author of various articles
Created Telecom Advisors Group, Inc. in 1996 to advise dealerships in matters
relating to telecom technology and services.
Basic Communications
Accessories
Bandwidth
Twisted Pair
Fiber
Co Axial
Cat V/VI
Data Network
Business Communications Requirements
Telecom Confusion
The telecom solution that works for one dealership may be totally wrong for another….The solution should adapt to the
store, not the other way around
Once you announce that you’re looking for a new telecom system, you’ll be busy
Every telecom salesperson’s solution will be “perfect for your dealership”
New Telecom System Pricing
$- $200.00 $400.00 $600.00 $800.00
$1,000.00 $1,200.00
1985 1995 2005 2010
50 stations100 stations200 stations
Average price per station or endpoint
System Upgrade Pricing
$- $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00
1985 1995 2005 2010
50 stations100 stations200 stations
Average price per station or endpoint
Reduced cabling cost
Networking remote locations
LD and local toll costs
VoIP uses data cable
VoIP phones on Internet
Central Control of calls
Benefits of VoIP include the elimination of duplicate cabling and the possibility of
reduced monthly costs
Traditional connectivity for dealerships with multiple locations
Store #1
Store #2
Remote locations are connected via mileage-based
point-to-point T-1 circuits
Body Shop
VoIP configuration for dealerships with multiple locations
Carrier’s Network
Store #1
Store #2
Eliminate LD Charges and provide “intercom” dialing
between locations.
Body Shop
ADP Network Phone & R&R Integrated Telephone System configuration for dealerships with multiple locations
PRI or SIP Trunks from Carrier
Store #1Store #2
Body Shop
DMS
Network
Twinning and Mobile Phone Handoff
Dealership
Incoming call rings desk phone and cell phone simultaneously.
While on Desk Phone, call can be “moved” to Cell phone and back again.
Remote Office (Vacation Home)
DealershipSt. Louis
Calls transferred to dealer’s remote extension
Dealer’s Vacation
HomeFt. Lauderdale
Calls made from remote extension show Dealership’s
Caller ID
ALL features functional from remote extensionDealer’s main extension
placed in “Forward All” mode
Mistake #7
Expecting that Voice over IP (VoIP) Call Quality will be as good as your old land
line call quality
Call Quality vs. VoIP/SIPIt’s all about Bandwidth
Land LinePOTS
Land LinePOTS
Land LinePOTS VoIP/SIP
VoIP/SIP VoIP/SIP
When upgrading to VoIP, keep a few analog lines
NOLand Line(POTS)
Land Line(POTS)
VoIP/SIP
VoIP/SIP
Network
Network
Mistake #5
Assuming that the existing network cable infrastructure will work with the new VoIP
system
Before you start a search for a new system, verify with your IT department that your network cabling is CAT 5e or better
VoIP/SIP
VoIP/SIP
CAT 3 Cable
CAT 5e Cable
VoIP/SIPCAT 6 Cable
Make sure any products you’re evaluating have been on the market long enough to ensure trouble free operation
=+
The Piggly Wiggly grocery chain with over fifty locations throughout Texas was the first to install the Cisco Call Manager in a multi-location environment. The result
was catastrophic.
Before you begin your search for a new system, perform a billing audit to eliminate unwanted lines and to decrease cost
$122,675.28
$48,348.00
$74,327.28
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
Riverview Mercedes-Benz
Existing Yearly ExpenseProposed Yearly ExpenseProposed Yearly Savings
Mistake #1
Not developing a specific list of system requirements and specifications with
which all bidding vendors MUST comply
Develop a list of system specifications, requirements and minimum terms for each bidding vendor to receive
=
This is an absolute MUST to ensure all vendors are bidding to the same size and configuration
Some other, less critical mistakes
� Not having a back-up Internet connection
� Buying a VoIP system without SIP interface
� Not allowing for growth of stations or trunking
� Not buying a system that’s compatible with your other technologies
� Not coordinating the dealership dialing plan with the new system install
� Signing a long term maintenance agreement when buying the system
Pros and Cons of the DMS provided phone system
PROS
� Tight integration with DMS modules
� Single point of contact
� Installation coordination
CONS
� Less control of costs
� Non competitive acquisition
� Possible upgrade costs
� Long term commitment to single vendor� Dependant on DMS supplier’s relationship with telephone supplier
Standard for VoIP Telephone System are just that…..STANDARDS
Tips when buying VoIP SystemsKnow going into the process WHY you are looking at VoIP.
Know going in if your internal IT staff will be making programming changes on the new system and therefore require some training.
Don’t necessarily buy the least expensive system. Explore all the options and concentrate on the longevity of the equipment vendor.
Use trusted brands….don’t buy systems that are generic in nature and built on“White Box” server design.
Don’t commit to a new voice system from your DMS provider without shopping the competition who can offer similar and compatible products.
DON’T BUY USED!
Gather and copy all telecom related billing
Survey all managers for input of needed features
Identify the vendors that will receive bid document
Interview vendors and check references
Conduct staff and manager meetings
How to start the process
Make vendor selection