If you consider all of the different business telephone system manufacturers, the different system options available from each, the different technologies used, the many configuration and feature options, multimedia integration with your network and data systems, and then throw in figuring out cost to value for each variable in order to come to a good purchase decision, it becomes a daunting task for the typical business owner or office manager to figure out whats best for their needs and budget.
The way the process often goes is to start with the Internet or Yellow Pages to find two or three local system and service vendors and ask for proposals. Then sift through all of the options and recommendations presented to you and pick what looks like the best solution for the money.
Some times this process leads to the best choice, and sometimes it doesn't. Often companies end up buying a lot more system than they actually need, or choose the least expensive and end up spending money on an inadequate system. Either way, you can and end up not getting the functionality that you need or best value for your investment.
Whats the best way to figure it all out?
My suggestion is to flip the process on its head and work backwards. In other words, start with where you want to get to and work backwards from their to reach the best options to meet your requirements.
There are Two Primary Considerations that all of the details to consider fall under:
Functionality and Cost.
Functionality: Until you have determined what you need the system to do, you can't develop specifications, and without specifications you can't determine cost and develop a budget. Functionality considerations should start with, what do you need the system to do, and what additionally would you like it to do?
Once you know your functionality needs and wants, work with your telecom vendors or consultant to develop base specifications and options, and corresponding pricing.
Some basic questions to answer in determining base specifications are:
How many telephones do you need and with what features?What is the typical maximum number of simultaneous phone calls expected at the highest calling time of day and week? A good way of judging this is to look at your current phone bill and make adjustments on that base line with any change assumptions added.
What kind of messaging do you want, e.g. voice mail, receptionist, multimedia messaging?
What are networking and multimedia requirements, e.g. multiple offices, connect to vendors or customers, remote workers, and other business systems integration?
Once you have the system specifications, and design and pricing options its time to look at cost factors and figure out a budget baseline to measure your options against.
To develop your Budget Baseline add together all of your current monthly recurring cost factors including: equipment, services, support, and if possible, quantify and include lost opportunity costs due to any inadequacy of your current systems and services that you plan to remedy with the new project. Although lost opportunity cost may not be readily apparent, they are definitely a cost factor and should be included if possible. For purposes of this analysis all current costs need to be broken down to a monthly recurring number. If your system is already paid for use the initial cost and apply a term lease or finance factor for a term that corresponds to the number of years it has been in use to get your monthly cost assumptions.
Next, identify the projects business goals, e.g. reduce cost, keep cost the same but upgrade to newer similar functionality equipment, accept increased cost to add functionality, accept increased costs to improve business revenue and/or profit. Again, work with your telecom vendors or consultant to develop a "Return On Investment, Analysis, "ROI", to quantify assumptions that meet your goals.
Costs: New system costs break down into two primary categories, Nonrecurring and Monthly Recurring.
Initial Nonrecurring Costs includes: any new cabling required, the one time cost of the new system and installation, less the trade in value of the old system.
Note: You can get the value of the old system by contacting a company that purchases and recycles telephone equipment and requesting an offer.
Monthly Recurring Costs may include: a lease or term purchase payment for the new system, a service contract, dial tone and telephone usage service, Internet, and networking services.
As with your baseline, once you have developed your scope of project with your telecommunications vendors and have received the proposals for the different options you will consider, you need to first convert all nonrecurring costs to monthly recurring costs, even if you intend to buy. In order to do that use a lease factor or financing rate with a term that matches the life term you expect from the new system. Also ask your telephone system vendor to give you a term service contract quote over the same term, again even if you plan to pay for service and support per incident.
Now you can easily and quickly start plugging in the different system and network services options to compare against your baseline budget, in order to give you a clear cost to benefit analysis of all options being considered.
Another thing to consider is Internet Protocol, "IP", systems and service verses traditional analog or digital. IP is prevalent in telecommunications now and almost any system that you look at will be labeled IP. However, there are many different flavors of IP, so make sure to identify and understand the real functional and cost advantages to using any given proposed IP solution before committing to it. Also, don't assume that one IP-based system or service functions the same as the next and be aware that there are a lot of systems labeled IP that use traditional analog and digital dial tone and networking circuits and usage, not IP. Also don't assume that quality of service between different IP systems and circuits will be equal either, it isn't.
One last suggestion is to find and read reviews and ask for references from the different service providers and system manufacturers you are considering. They are not all equal either, and it is important to do your homework to make sure to get the vendor companies and systems and services with the best reputation in order to insure that you get the best value and are happy with your decision for the life of the system.
Good Luck!
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