© 2006 Avaya Inc. All rights reserved. The Evolution to Intelligent Communications Lawrence Byrd, Avaya 25 January 2006 H.323 SIP SIMPLE Web Services SOAP HTTP VXML ccXML WSDL WS-BPEL SOA XMMP The Evolution to Intelligent Communications

2 © 2006 Avaya Inc. All rights reserved. Communications: A Force for Market Transformation Throughout History IP telephony’s impact on… The telegraph’s impact on mass transportation The telephone’s impact on mass production The stock ticker’s impact on capital markets

3 © 2006 Avaya Inc. All rights reserved. Communications = Business Transformation “The old voice platform did not lend itself well to innovation. But when you put voice on an Internet platform, all sorts of innovative options for collaboration become possible.” “Introducing new technology alone is never enough. The big spurts in productivity come when a new technology is combined with new ways of doing business.”

4 © 2006 Avaya Inc. All rights reserved. “The important dividing line... will be between those who see VoIP as just a new way to do the same old things and those who use it to rethink their entire business.” September 2005 Using VoIP to Compete Communications = Business Transformation

5 © 2006 Avaya Inc. All rights reserved. Source: Avaya analysis based on independent industry analyst reports 35% IP U.S.: 49% 35% IP U.S.: 49% 8% IP U.S.: 13% 8% IP U.S.: 13% IP Telephony CAGR 47% Growth will be driven by transformational opportunity Global Enterprise Telephony Installed Base Total Lines (Million) 463M 423M IP Telephony – Beginning Of The Road

6 © 2006 Avaya Inc. All rights reserved. 1 Avaya interpretation of analyst data 2 ComputerWorld survey Branch Offices 91% of employees work in branches and remote offices 1 Virtual 58% companies consider theirs to be a virtual workplace today 1 Mobility In 2008, 72% US workforce will be remote and mobile 1 Home Working 89 of top 100 US companies offer telecommuting 2 60%+ Britons & Germans equipped to work remotely 1 We Work Differently Today

7 © 2006 Avaya Inc. All rights reserved. Instant Messaging Voice Messaging Unified Communication Telephony Contact Centers Mobility & Softphone Conferencing Collaboration One “Converged” Market

8 © 2006 Avaya Inc. All rights reserved. Creating Business Value Evolution to Intelligent Communications Real-time Enterprise ANY NETWORK BUSINESS COMMUNICATIONS APPLICATIONS BUSINESS APPLICATIONS BUSINESS PROCESSES NETWORK BUSINESS APPLICATIONS Intelligent EnterpriseIntelligent Communications embedded into the fabric of business ANY NETWORK BUSINESS PROCESSES TRADITIONAL Cost Reduction Operational Efficiency CONVERGED TDM  IP  SIP Business Agility Competitive Differentiation Customer Loyalty EMBEDDED SIP + SOA Business Processes

9 © 2006 Avaya Inc. All rights reserved. Processes Involve People! Scenario from Insurance Industry 2 Reinforce brand: consistent global call treatment 6 Customer claim resolved; results evaluated real-time 4 Message for agent accessed through speech while mobile 5 Collaboration with expert at home 1 Customer calls branch office, agent not available 2 hour settlement (vs. industry 5+ days) Increased retention Increased referrals Lower cost per customer Claim Process Reduced from 5 Days to 2 Hours 3 Call redirected to contact center providing immediate assistance

10 © 2006 Avaya Inc. All rights reserved. Single Consistent Virtual Infrastructure Web Customer Interactions Large multi-site centers Outsourced agents Global agents Satellite agent groups At-home agents Voice Point-of-sale Branch offices Sales person Knowledge expert Back office The Customer Contact Enterprise

11 © 2006 Avaya Inc. All rights reserved. TeleworkerCampus Roamer Road Warrior The Collaborative Enterprise Desk Worker Desktop Voice, Video, IM, Presence Web Collaboration Outlook, Notes Home/ Remote Office WiFi Dual-mode Mobile “One Business Number” Speech Access Conferencing

12 © 2006 Avaya Inc. All rights reserved. Human Latency Slows Processes Scenario from Manufacturing Industry

13 © 2006 Avaya Inc. All rights reserved. Human Latency Slows Processes Scenario from Manufacturing Industry

14 © 2006 Avaya Inc. All rights reserved. Communications-enabled Business Processes Click-to- Conference Appliance Desktop Business Application Business Process Flow Business + Communications Task Flow Task Conference Expert Notify Resident Expert

15 © 2006 Avaya Inc. All rights reserved. Service-Oriented Communications Architecture

16 © 2006 Avaya Inc. All rights reserved. Case Study Setting the Standard for Luxury at Wynn Las Vegas Processes Delight guests Check-in experience In-room experience, personalization Understanding and accessing services Empower staff to drive customer loyalty with accessibility and mobility

17 © 2006 Avaya Inc. All rights reserved. Case Study Improving Child Safety in Palm Beach County Schools Processes Get special-needs kids home Meet regulatory requirements Keep parents notified real-time about times, delays and locations Proactively manage absenteeism Help find missing children Application from Avaya DeveloperConnection partner

18 © 2006 Avaya Inc. All rights reserved. Case Study 2006 FIFA World Cup ™ 12 stadiums… 32 teams… 15,000 volunteers… 15,000 international press… 200,000 security clearances… 3,100,000 spectators… 30,000,000,000 viewers worldwide… 15,000,000,000,000 bytes of voice and data ___________ % communications availability required Processes Accreditation in <10 minutes RFID tickets Stadium WLAN for press Transportation logistics Video conferencing General collaboration Largest converged communications event network ever

19 © 2006 Avaya Inc. All rights reserved. Practical evolutionary steps Leverage existing investments and infrastructure “Add-on” mobility, presence, collaboration, video, … With mission-critical high availability and security Standards and open interoperability SIP, SIMPLE, More SIP, Web Services, WSDL, BPEL, …SOA Business process integration Providing help Global skills, services, rich partner ecosystems Managed service and hosted deployment choices The Real Challenge How on earth do customers get there from here?

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