Purpose of the Study To examine the criteria used in the adoption of VoIP Overview of the Study –4 criteria sets: Economic & Financial criteria Technology & Usability criteria Legal & Regulatory criteria Sources of information Research Question: –What criteria do small and medium sized businesses use when they decide to adopt VoIP?

Significance of the Study Evolution of telephony –“Other than the invention of the telegraph, in 1876, nothing else will do so much to revolutionize the way individuals communicate more the IP telephony” -David Greenblatt New technology (and a new industry) but a lack of formal independent research SMBs are fundamentally different than a large organization –No formal procedure for the adoption of new technology –Lack of financial bandwidth to research/develop strategies for technology adoption Provide independent information to both the consumer (SMB) and the vendor (ITSP)

Conceptual Framework

Conceptual Framework (continued)

Focus on 2 of the 4 criteria sets –Economic & Financial criteria –Technology & Usability criteria Independent Variable #1 - Economic & Financial criteria –Long-distance toll savings –Cost of Technical Support –Cost of On-going Maintenance –Return on Investment –Equipment Costs –Cost to Expand System –Time Lost during transition

Conceptual Framework (continued) Independent Variable #2 - Technology & Usability criteria –Ability to Expand System –Proprietary System –Security of Communication Channel –Ability to Integrate with current network –Ease of Use

Research Design & Data Collection Requirements –Provide a “snapshot” perspective –Need to complete the study in 6 months Help keep costs down Help to reduce resource consumption –Work within a budget of $50,000 Population –SMBs with a credit score DNB has over 18 million in their database

Research Design & Data Collection (continued) Sample –What is a SMB? Combine statistics from the SBA and the U.S. General Accounting Office. The SBA has a clear definition for a “Small Business” There is no formal definition from the U.S. government for a “Medium sized Business” –Small Business: Has 1 to 500 employees Earns $0.00 to $7 million per fiscal year –Medium Size Business: Has 1 to 500 employees Earns $7 million to $500 million per fiscal year –An SMB is a business that has 1 to 500 employees and earns less than $500 million per fiscal year.

Research Design & Data Collection (continued) Sample (continued) –The Hartford - the list of businesses by Industry 109 industries in the U.S. Categorized by 5 groups –Services –Contractors –Educators –Manufacturers –Wholesalers –Need to purchase a list DNB’s list will cost $1.2 million and have 18 million entries InfoUSA’s list will cost $3, and have 16,500 entries –This list will provide: company demographics, IT or Communications Director contact information, line of business, employee size, sales volume and credit score.

Research Design & Data Collection (continued) Sample (continued) –Randomly select 1 company from each industry –Repeat this process 5 times –This results in 545 respondents Problems with the sample –Must individually contact all 545 respondents –To ensure accuracy and confirm participation –Must randomly select new company if previously chosen respondent does not wish to participate The Plan –A cross-sectional analysis that includes an online self-administered survey in the form of a questionnaire –Babbie states that a cross-sectional analysis is appropriate for studies observing a sample at a specific point in time.

Research Design & Data Collection (continued) Data Collection –Types of Data: Fixed response questions Numbered scale (1 though 5) Semantic Differential (Very Positive through Very Negative) Costs –Labor costs –Facilities costs –Equipment and supplies (including the electronic list) –Indirect costs G&A Financial Administration Audit –Miscellaneous

Findings Total Number of Companies:545 Small Businesses:46585% Medium sized Businesses:8015%

Findings (continued)

Recommendations for Future Studies Recreate this study - develop a trend study Examine the other two criteria sets –Legal & Regulatory criteria –Sources of Information Examine Small Businesses only

The End Q & A - Are we drinking beer tonight or tomorrow night?