Use of Voice over Internet Protocol (VoIP) is evolving from a solution to deliver low-cost phone service into a platform for integrated business communications, with new applications that not only reduce telecommunications costs, but also can help to boost employee collaboration and strengthen connections to customers.

VoIP may seem complicated at first glance, but the concept is simple: Any form of communication that travels through a conventional phone line — voice calls, faxes, voice messages and conference calls — can also travel in digital form through an IP (Internet Protocol) network. Using an IP network to transfer voice traffic can lower telephony costs, especially for long distance and international calls. And because the phone network is now running on the same lines as your data network, your staff will have less to manage and administer. As we’ll see, moving people, changing phone numbers, and adding staff is also easier with an IP phone network.

Getting started with VoIP is often simple. There’s no need to remove old wiring and install new wiring, because VoIP service flows through your existing data network. And VoIP isn’t an all-or-nothing proposition.

Small- and medium-sized businesses (SMBs) can introduce VoIP to a single location, building, or work group by adding an IP-based Private Branch Exchange (IP PBX) and IP phones to get a feel for the return on investment, and then roll out the service company-wide to gain even more cost savings and productivity benefits. Such incremental expansion is particularly cost-effective when the existing phone system is reaching capacity, or when there are new locations to be opened.

According to Josh Holbrook, a program manager for enterprise research at the Yankee Group, “for businesses that are risk averse, or capital constrained, I would recommend putting VoIP in the hands of power users, those who are going to derive the most value from the service. They will not only get the most benefit, but they can become advocates for the service for others in the organization, to help a larger deployment.”

Ultimately, a larger deployment will enable companies to more fully realize the benefits of VoIP. As Holbrook points out, “You really want to get a hold of those rich features and functionality that VoIP enables as quickly as possible. Many of those features are productivity enhancing, not just cost savings.”

A Single Network for Data and Voice

The efficiencies of VoIP go far beyond lower phone bills. SMBs save time and money by administering a single IP network for data and voice communications instead of supporting a separate phone system. Moving employees within an organization can be as simple as carrying their VoIP phones from one desk to another, without calling a technician to make changes in the wiring closet. Feature upgrades can be delivered through the network without a technician going from desk to desk.

VoIP is also scalable. As an SMB expands its data network, it can also increase its phone capacity without the need to build additional infrastructure. Many SMBs already lease more Internet bandwidth than they use, so the additional network traffic generated by VoIP often causes little or no increase in connection charges.

But VoIP offers much more than a better way of delivering phone service. New applications are transforming VoIP into a valuable platform for improving business processes. One level of change involves the way employees manage their workload and stay in touch with each other. These applications include: 

􀂃 Universal Inbox puts all incoming communications — e-mail, voice messages and faxes — into a single inbox accessible by PC or phone, making it easier and faster to stay on top of work tasks.

􀂃 VoIP-based audio and Web conferencing simplifies the process of assembling a conference call and makes it possible to identify who is participating at any given moment.

􀂃 Single Number Reach, where incoming calls can roll from one desk to another or to a mobile phone, keeps workers always in touch.

􀂃 WiFi VoIP within the enterprise makes it possible to place and receive calls, using WiFi handheld phones, wherever workers may roam—even in areas where cell phones don’t work.

􀂃 Improved auditing and security help managers easily track calls without having to wade through pages of paper phone bills.

􀂃 Full phone service on the road, identical to what workers have on their desks, is available by installing VoIP client software on notebook computers. This service reduces expensive cell-phone talk time and hotel room phone charges.

􀂃 Videoconferencing that uses inexpensive Webcams added to computers is available without the high purchase price and connection fees of dedicated videoconferencing equipment. This can eliminate the need for some business trips, another big savings. In a hospital, for example, a VoIP system can connect doctors, nurses and other health-care workers who move around all day, without intercoms, pagers or cell phones. For financial institutions that can’t staff every branch with a wide range of experts, VoIP enabled videoconferencing allows them to deliver the answers their customers need, when they need them. 

Using VoIP to Connect with Customers

SMBs can also improve the customer experience with VoIP. We all know the frustration of calling a business and having to listen to a long list of options, such as “press 1 for sales, press 2 for finance, press 3 for tech support” and so on. Because VoIP runs on the same computers as the data network, it’s possible to install affordable voice-recognition software. The automated attendant can then ask, “How may I help you?” and understand if the caller is asking for a department or a specific person. Callers can also be routed more efficiently.

Call centers become more efficient and responsive with VoIP. Managers can set more sophisticated rules for call routing and change those rules more quickly with VoIP software instead of a conventional PBX. Automated attendants, using speech recognition, make it easier for customers to give important information—such as their account number and the nature of their problem—at the beginning of a call, allowing the VoIP software to send them straight to the appropriate support representative. By tapping Caller ID, the VoIP software can put a customer’s full history on the screen with the first ring—allowing agents to greet the caller by name and move more quickly to resolve the customer’s request.

While VoIP has a proven return on investment, there are some expenses up front. SMBs need technology partners with the skills to integrate hardware and software as well as to provide training and support. Most important, the partner should offer guaranteed quality of service, because an improperly configured VoIP network can deliver less-than-satisfactory audio quality and even drop calls in mid-stream.

Why now is the time to integrate VoIP in SMB networks

Making the move to VoIP is a “when” not an “if” for most SMBs, because industry analysts expect conventional PBX equipment will disappear from the market by the end of this decade. Still, some SMBs can reap more benefits with VoIP right now. Among the indicators of a business best positioned to benefit from VoIP today are a highly mobile workforce, employees who are frequently involved in conference calls, overloaded call centers and existing PBX systems that are obsolete or have no room for further expansion.

One problem SMBs don’t have to worry about with VoIP is employee resistance. Once workers see how their daily interactions are improved by the power and convenience of VoIP, as the Yankee Group’s Holbrook suggests, the biggest issue with an incremental rollout is likely to be complaints from workers still stuck with regular phones.

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