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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

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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.

So much confusion…

…and to make matters worse…

Let’s see how it got so crazy

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”

Don’t listen to the vendors that tell you that VoIP is the only way to go..it’s not

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

Mistake #6

Not holding on to at least a small number of Analog Trunks…just in case

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

Mistake #4

Buying new technology too late

Make sure any products or services you’re evaluating aren’t obsolete at time of purchase

=

=

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Mistake #3

Buying new technology too early

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.

Mistake #2

Not performing a Billing Audit prior to the installation of the new system

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

Questions ?

[email protected]

www.telecom-advisors.com