How We Work Today: Are You Prepared to Support the New Workplace Reality?

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1 How We Work Today: Are You Prepared to Support the New Workplace Reality? A Frost & Sullivan White Paper

2 frost.com Introduction... 3 Redefining the Office: Where You Need to Be to Get the Job Done... 4 Technology to Support the New Ways of Working... 6 The Benefits of Cloud-based Collaboration... 8 What to Look for in a Cloud-based UCC Provider... 9 Conclusion contents

3 How We Work Today: Are You Prepared to Support the New Workplace Reality? INTRODUCTION If you ve been following workplace trends over the past five years, one significant change is impossible to miss: work is an activity that we do, not a place where we go. Gone are the days when the vast majority of employees made the daily commute to a corporate office, sharing a communal space with colleagues on a regular, dependable basis. Thanks to globalization, nine-to-five hasn t been most employees reality for many years, but now these same workers who used to arrive early or stay late at the office to get all their work done are pushing the boundaries of where and when they work. To be successful in this new, virtual environment, employees need access to business data and applications, advanced communications tools, collaboration spaces, and their colleagues and customers on any device and any network. And they insist on a form of work-life integration that allows them to manage their family and personal obligations with their work duties in ways that boost their productivity while minimizing any extra time spent in an office. Frost & Sullivan research shows that more than half of all employees in the United States and Europe work outside of a traditional office be it from the road, a client site, or a permanent home office. The benefits of such a virtual workplace are clear: with more freedom to shape their own work environment, employees can support global business operations around the clock, from literally anywhere. They can make better decisions, more quickly. They can redefine the customer experience. And best of all, they can boost productivity to increase revenues and cut costs in order to measurably improve the bottom line. Companies, meanwhile, can hire the best and brightest regardless of where they live in relation to the corporate organization. But to be successful under this new arrangement, employees must have the tools they need to stay in touch with their co-workers and customers, even when they rarely see them in person; and access to all the necessary collaboration tools and data that make it possible for them to do their jobs efficiently and effectively. These applications must run on any device, over any network. And they must fit into an environment in which the majority of employees are bringing their own technology into the workplace, supported (and even encouraged) by enterprise IT. This paper will outline the changing nature of how we work and identify the key benefits and challenges therein; discuss the need for communications tools that support collaboration across geographic and network boundaries; address the value of deploying a cloud-based solution for a complete unified communications and collaboration experience; and highlight what to look for in a service provider. A recent Frost & Sullivan survey of more than 1,000 IT decision makers in the US and Europe reveals that the majority of employees no longer work in a traditional corporate office. 3

4 frost.com REDEFINING THE OFFICE: WHERE YOU NEED TO BE TO GET THE JOB DONE A recent Frost & Sullivan survey of more than 1,000 IT decision makers in the US and Europe reveals that the majority of employees no longer work in a traditional corporate office. About a quarter of employees work from home most or all of the time. Others work from small satellite locations some of which are not owned or rented by the company, but rather on a per-diem or weekly basis by the employees themselves. Still others are traditional road warriors, who need to be productive from hotels, airports, and client sites. And countless employees spend part of their time in an office and the rest of it juggling work and home life, doing much of their business from the train into work or any number of personal activities. This trend is itself both the result of, and a contributor to, several others that are shaping the modern workplace. These include: The Knowledge Economy. If the 20th century was the Age of Information, the 21st is the Age of Innovation. With the remarkable uptick in data available to all employees, and the commoditization of everything from production to basic services, businesses must differentiate themselves on creativity and innovation. As a result, a larger percentage of employees are so-called knowledge workers, meaning they spend their time analyzing information and developing newer, better products and services; or they are primarily responsible for ensuring a better customer experience. These employees thrive in a flexible, open environment that lets them collaborate with their colleagues, partners, and customers, sharing information across geographic and organizational boundaries. Mobility. Frost & Sullivan research shows that roughly 13% of all employees in the US and Europe are considered mobile, meaning they spend the majority of their time on the road. While sales and service personnel have played the road-warrior role for years, the demands on their time and the expectations around their productivity are changing. Today s mobile workers must be able to work on any device be it a PC, smart phone, or tablet and on any network, whether it s inside or outside the corporate firewalls. And they must have access to the business and communications applications and services that allow them to be as productive as possible, regardless of where they are working. Finally, they need to be able to reach their colleagues, partners, and clients regardless of where they are, or what type of device they are using, responding in real time to urgent requests, meeting invitations, and social media updates and information. But today s mobile employees go beyond the traditional road warrior and comprise almost all knowledge workers at some point during a typical work day. Whether it s an employee who works a split schedule, starting the day from home to avoid rush hour traffic and then heading into the corporate office for the afternoon, or one who travels throughout a corporate campus, moving from one meeting to the next, all employees need a complete set of communications tools that allow them to conduct business, regardless of where they are, physically, in relationship to their regular workplace. And as more employees look for ways to stay connected to the customers and partners on a global scale, they need to take calls, answer , and participate in meetings outside of traditional business hours and typical business locations. If the 20th century was the Age of Information, the 21st is the Age of Innovation. 4

5 How We Work Today: Are You Prepared to Support the New Workplace Reality? Bring Your Own Technology (BYOT). Although up to three-quarters of organizations supply at least some of their employees with smart phones and/or tablets, it s the rare company that provides mobile devices for all its workers. As a result, the vast majority of employees in the US and Europe use their own personal devices for mobile business purposes. This trend, known as Bring Your Own Technology, or BYOT, is impacting not only the ways in which people work, but also the types of apps and services they use to do so. Increasingly, and thanks in large part to the globalization of the marketplace, employees are relying on their personal smart phones and tablets to conduct business outside of normal business hours, or from remote locations during the typical workday. Doing so helps them stay productive and in ready contact with their key colleagues and customers, but they must have the tools they need to communicate and collaborate, anytime and from anywhere, securely, and under IT s control as needed. Millennials and Beyond. According to the Brookings Institute, Millennials will make up 75% of the workforce by They already constitute one-third of all employees, and they are making their presence known. Of course, every new generation is different from the one before it, but when it comes to the workplace, Millennials really are changing the way business gets done. For one thing, they are the first generation to grow up with a wide variety of easy-to-use, ubiquitous, personal technology at their fingertips. This doesn t just mean that they are comfortable with mobile devices, advanced communications, and data-driven processes; it means they know no other way to work. Whether working or playing, this generation expects to do so on the go, in real time, without regard to status, titles, or geographic or cultural boundaries. Equally important, however, is the fact that Millennials are much more inclined toward collaboration than other recent generations. They ve grown up in a sharing economy, in which people routinely exchange not just goods, but also information; and in which they are rewarded for their insights and knowledge based on how often and effectively they share it with co-workers, friends, and acquaintances. Businesses can leverage this new-found instinct to collaborate, but only if they outfit their employees with the right tools and technology to get the job done. Enabling collaboration is also critical for employee satisfaction and job retention, both of which can deliver a competitive advantage. 5

6 frost.com TECHNOLOGY TO SUPPORT THE NEW WAYS OF WORKING Frost & Sullivan research shows that IT decision makers are especially concerned with their ability to make timely and effective technology investments (52%), comply with new regulatory requirements (51%), improve business processes (47%), and align IT and business strategies (46%). But when it comes to spending money, IT managers are most concerned with improving productivity (75%), reducing costs (72%), staying ahead of the curve (72%), and improving the customer experience (71%). Almost two-thirds also want to accelerate decision making, boost creativity and innovation, and improve collaboration and market effectiveness. Frost & Sullivan research shows that, when it comes to navigating this new business landscape, IT decision makers are especially concerned with their ability to: 52% Make timely and effective technology investments 51% 75% 72% When it comes to spending money, IT managers are most concerned with: Improving productivity Reducing costs Comply with new regulatory requirements 47% Improve business processes 46% Align IT and business strategies 72% 71% Staying ahead of the curve Improving the customer experience Almost two-thirds also want to accelerate decision making, boost creativity and innovation, and improve collaboration and market effectiveness. As they look to address these challenges, IT managers are deploying unified communications and collaboration (UCC) tools to ensure their employees can get in touch with one another from anywhere, and then share information and documents as needed. To do this, they are leveraging a wide variety of new technologies, including: Presence and Instant Messaging (IM), to make it easy for users to see whether a colleague is available for a chat, and then instantly send him a message. Conferencing, to allow employees to meet from anywhere, on any device, without having to incur the high costs and lower productivity of travel. Stand-alone audio conferencing allows people to meet quickly and easily; video adds the ability to read facial expressions and body language, enabling deeper connections; and Web conferencing delivers presentation and screen sharing, as well as advanced features like polling, Q&A, sidebar chat, and mark-up capabilities. By integrating these services into a single interface, IT can offer users one-click access to all the conferencing tools they may need, enabling them to move from an audio call to a video or Web experience with ease. Desktop and file sharing, so that users can collaborate on documents in real time and offline. For this, they need to be able to see and mark-up presentations, spreadsheets, text documents, and so on; having an easy sharing tool encourages true collaboration among and within business teams. Team spaces make it easy for users to create persistent virtual rooms where they can meet, collaborate, share content, and manage the meeting experience without the need for lengthy dial-ins, pin numbers, and passwords. 6

7 How We Work Today: Are You Prepared to Support the New Workplace Reality? Many companies today use advanced UCC tools, but there is clearly an opportunity for more and for those that deploy best-in-class technology to gain a competitive advantage. Frost & Sullivan research shows that Web conferencing is the most frequently deployed of these advanced UCC tools; 63% of respondents to the survey of more than 1,000 IT decision makers say their employees use the technology today. It s followed by desktop video conferencing (56%), instant messaging (55%), audio conferencing (49%), and room-based video conferencing (45%). Frost & Sullivan research shows that web conferencing is the most frequently deployed advanced UCC tool of IT decision makers say their employees use web conferencing, 63% followed by: 56% 55% 49% 45% video conferencing instant messaging audio conferencing room-based video conferencing Web conferencing is also the most frequently used tool in the virtual box: among those organizations that use the technology, 32% deploy Web conferencing to all employees. Video conferencing is more likely to be deployed based on job role or geographic location. Almost two-thirds of employees with access to both technologies use them on a daily or weekly basis. And 55% of IT decision makers say Web conferencing is extremely or very effective when it comes to automating and streamlining business processes. Web conferencing is the most frequently used tool in the virtual box: 32% of companies deploy web conferencing to all employees. Video conferencing is more likely to be deployed based on job role or geographic location. Almost two-thirds of employees with access to both web and video conferencing use them on a daily or weekly basis. 55% of IT decision makers say web conferencing is extremely or very effective when it comes to automating and streamlining business processes. 7

8 frost.com THE BENEFITS OF CLOUD-BASED COLLABORATION Clearly, UCC tools can be a boon to organizations that need to support an increasingly mobile and dispersed workplace. But the idea of evaluating, buying, and implementing a complete suite of applications and services to a diverse employee base can be daunting for even the most experienced IT organization, let alone a small or mid-size business. An appealing alternative is a cloud-based solution that allows every user to have every application he or she needs, easily and cost effectively. Cloud-based UCC offers many advantages, including: A reliable monthly charge for all services. By moving the cost of communications to Op-Ex rather than Cap-Ex, companies know exactly how much costs will increase or decrease along with their employee base and can budget for their needs accordingly. Management and support. With cloud-based services, all management and support costs are included. This allows IT staff to focus on more strategic initiatives that drive innovation within the organization, without sacrificing the security and control enterprises require, or leaving users to fend for themselves for troubleshooting and support no matter where or when they work. A single, robust solution. Frost & Sullivan research shows that often, companies are running multiple versions of multiple UCC products, depending on the business unit or geographic location of the end users. By getting all their UCC capabilities from a single provider, companies have one place to go when problems arise. It also makes it easier to integrate applications and to encourage use among employees who are always on the same, most up-to-date version of the software as their colleagues. Business continuity. By contracting with a cloud provider, customers know they are covered in the event of a natural disaster, power failure, or other situation that affects their data center and/or prevents employees from making it into the office. With cloud-based UCC solutions, employees can work from anywhere they can get an Internet connection, preventing downtime and ensuring the customer experience is never affected. Better still, employees can leverage these tools on any device, including a smart phone or tablet, ensuring them access to communications and back-office applications, even if they don t have their work PC on hand. Frost & Sullivan research reveals that today, 57% of companies use cloud-based UCC services. That number is expected to grow to 63% by IT decision makers look to the cloud because it offers advanced functionality (80%), supplements their limited in-house IT resources (76%), and makes it easier to manage multiple vendor relationships (76%). And 79% trust the cloud for their communications needs. Frost & Sullivan research reveals that today 57% of companies use cloud-based UCC services 63% of companies will use cloud-based UCC services by % of IT decision makers look to the cloud because it offers advanced functionality 76% 76% say the cloud supplements their limited in-house IT resources of respondents say the cloud makes it easier to manage multiple vendor relationships 79% trust the cloud for their communications needs. 8

9 How We Work Today: Are You Prepared to Support the New Workplace Reality? Finally, among companies that use unified communications, 37% rely on multiple vendors today. But by 2017, 75% want to have either a tightly integrated multi-vendor solution or an end-to-end, single-vendor solution in place. Cloud-based UCC can help with that, since a single provider can deliver a complete suite of applications, perfectly integrated for maximum performance. WHAT TO LOOK FOR IN A CLOUD-BASED UCC PROVIDER When it comes to choosing a service provider for hosted services, Frost & Sullivan research shows that IT managers care about security, reliability, and cost. Vendor reputation, cutting-edge features, and scalability matter, too. Although many say they want an integrated IT infrastructure, they do not rank the need for a broad portfolio highly in this area they want the specific tools they know they need, now and into the near future. Given all these drivers, it s important to evaluate several key attributes before selecting a provider for UCC in the cloud. Many providers say they can offer a full set of applications and services, but with so many new vendors in the space, it s important to stay vigilant on selection criteria. Look for a provider with: A long and successful track record in the communications marketplace; Rich and deep knowledge of business needs and processes; Excellent security, control, and performance guarantees; and A complete set of UCC tools to deliver excellent collaboration capabilities now and into the future. Frost & Sullivan recommends that businesses evaluate service providers based on features and functionality; ease of use and management; their own unique infrastructure and endpoint requirements; reliability and security; any needed integration capabilities; and overall value. Look for a service provider with a good track record in the field, experience in voice and data communications, a proven understanding of business processes, a clear vision for the future, and healthy financial footing to ensure you ll have a partner for the long run. A complete UCC suite should include: Enterprise Voice Voice still matters enormously for business communications. Make sure your provider offers everything from basic capabilities like find-me/follow-me to more advanced features such as auto attendants and call-center functionality. Instant Messaging and Presence Among the most popular UCC tools, IM and presence make it easy for dispersed employees to see whether a colleague is available for a call or chat, and then engage with them in the most effective and appropriate manner. Look for a system that integrates with telephony and calendaring to automatically update a user s status. Desktop and File Sharing Web collaboration tools ensure employees, partners, prospects, and customers can exchange data, files, and documents whenever they need to, securely and effectively. They can share presentations, spreadsheets, text files, and multi-media from anywhere to speed work processes and drive collaboration. 9

10 frost.com Conferencing Multi-party voice and video allows employees to see their co-workers, customers, and business partners, enabling them to read body language and facial expressions, and have a much more productive meeting. Web conferencing makes it easy to share presentations and other content. Look for a solution with one-click invites than can support a large number of attendees on any network or device. Team Spaces By giving each user a personal space in which to conduct meetings and collaboration sessions, companies can eliminate the frustration that comes from having to juggle multiple invites, dial-in numbers, and passcodes. Moderators should be able to set security levels around content, and have control over functions such as muting or passing control to other participants. Unified Messaging Mobile workers need access to s, voic s, and texts in the format that works for them best, depending on where they are and what they re doing. Unified messaging allows users to locate voic s, faxes, s, texts, and even video messages in a single mailbox. It should include notifications and user-defined call routing for maximum productivity. Support for Multiple Devices With as many as 80% of employees using a smart phone and/or tablet at work, it s no longer enough to deploy UCC clients only on PCs. Make sure the service you buy includes clients for mobile endpoints running any popular operating system, and that they automatically synch with desktop applications. SIP Trunking SIP trunking lets businesses take advantage of UCC capabilities without having to upgrade their existing infrastructure. This is especially useful for companies with multiple sites and a diverse communications infrastructure, and which may not be ready to migrate to 100% cloud-based voice throughout the organization. CONCLUSION With the majority of employees now working outside of a traditional office routinely conducting business from home, the road, and even leisure activities companies must provide them with the tools they need to communicate and collaborate with one another, as well as their partners and customers. Advanced UCC applications and services allow dispersed workers to connect with one another from anywhere, on any device, and across any network. Features like IM and presence make it easy for users to see who s available for a call or chat; video conferencing lets participants take advantage of face-to-face interactions without having to literally be in the same room; and desktop and file sharing enable real-time collaboration on the documents and applications people use every day. As they deploy UCC across the organization, many companies look to the cloud to deliver a single, robust solution that can deliver business continuity and the most up-to-date software to all their end users in any location. Cloud services make it easy for companies to know exactly how much they should budget every month for a complete set of UCC capabilities, and allow them to direct costly and skilled IT resources toward more strategic business initiatives. They also support remote workers, ensuring companies are well prepared for the virtual workplace and enabling them to hire the best people for every job, irrespective of location. When selecting a cloud provider, decision makers must pay close attention to several key criteria to ensure they get maximum return on their investment. Look for a provider with a long and successful track record in the communications marketplace; rich and deep knowledge of business needs and processes; excellent security, control, and performance guarantees; and a rich set of UCC tools to deliver excellent collaboration capabilities now and into the future. 10

11 Auckland Bahrain Bangkok Beijing Bengaluru Buenos Aires Cape Town Chennai Dammam Delhi Detroit Dubai Frankfurt Herzliya Houston Irvine Iskander Malaysia/Johor Bahru Istanbul Jakarta Kolkata Kotte Colombo Kuala Lumpur London Manhattan Miami Milan Moscow Mountain View Mumbai Oxford Paris Pune Rockville Centre San Antonio São Paulo Seoul Shanghai Shenzhen Singapore Sydney Taipei Tokyo Toronto Valbonne Warsaw Silicon Valley 331 E. Evelyn Ave., Suite 100 Mountain View, CA Tel Fax San Antonio 7550 West Interstate 10, Suite 400 San Antonio, TX Tel Fax London 4 Grosvenor Gardens London SW1W 0DH Tel +44 (0) Fax +44 (0) Melanie Turek Vice President Enterprise Communications Frost & Sullivan P: E: melanie.turek@frost.com 877.GoFrost myfrost@frost.com Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today s market participants. For more than 50 years, we have been developing growth strategies for the Global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? For information regarding permission, write: Frost & Sullivan 331 E. Evelyn Ave., Suite 100 Mountain View, CA 94041