Developing an Effective RFP For the New Environment

1. Developing an Effective RFP For the New Environment

2. ProfessionalServices Delivering Client Value Through Expert Market Research and Custom Consulting To End Users, Channel Partners and Manufacturers Market Intelligence and Analysis Programs • IntelliCom Market DashboardSM • IntelliCom Market Performance DashboardSM • IntelliCom Intelligent EndpointsSM Database • IntelliCom Managed, Hosted, Cloud Services Database • Market Demand Drivers • Disruptive Technologies and Application Assessments • Service Attach Rates • Forecasting & Opportunity Assessment • Customer Needs Analysis • RFP Develop & Proposal Evaluation • Contract Negotiation • Strategic Alliances with Voice Report, TMC and InfoCom Manufacturer Channels SMB / Enterprise Users

3. Agenda • This session will draw upon the latest IntelliCom Analytics market research and experiences regarding the construction of an effective RFP for the evolving communications environment. • Background… the Evolving Communications Environment • Key points to be addressed… from the End User Perspective: • Typical end user participants in the process • Information sources for the requirements • A crisp and effective RFP format • Essential information for the RFP supplier recipients • Guidelines for the RFP supplier recipients • Striking the balance between too much vs. too little detail • Dealing with questions from the RFP supplier recipients • Techniques to facilitate proposal evaluations

4. Agenda(Continued) • Proposal / supplier evaluation criteria and weightings • Knowledge of the customers business • Proposed “Solution Fit” • ROI and TCO • Proposed solution roadmap and enhancement path • Supplier service, support, project management capabilities and resources • Supplier financial stability • Financial assistance • Channel partner and manufacturer references and reputation • SLAs • End user communication with the winning and losing suppliers

5. Background… The Evolving Communications Environment • Average Life-Cycles Of TDM vs. Converged Systems • Five Basic Conditions That Drive Businesses to Install New, Replace or Upgrade Telecommunication Systems • Multiple Telecommunications Manufacturers in a Typical Enterprise And Mid-Size End User Base • High-Level View of Telecommunications Station Equipment Shipments into the U.S. by System-Type

6. Background

7. Over 7 Years 5-to-7Years 4-to-5 Years 3 Years or Less The Typically Long Product Life Cycles of TDM Telecom Systems Are Changing As Convergence Proliferates 2% 3% 2% 5% 7% 100% 7% 9% 90% 34% 38% 35% 41% 80% 49% 41% 70% 60% Percentage of Respondents 29% 50% 40% 57% 60% 55% 30% 42% 43% 29% 20% 10% 8% 0% Software Telephones Servers / PCs Storage Devices TDM Systems Network Eqmnt.

8. Five Basic Conditions Drive aBusiness to Install New, Replace or Upgrade Telecommunication Systems 1) Greenfield Opportunities • Opening New Business 2) Real Estate-Related Events • New Location / Relocation • Renovation 3) Existing System Deficiencies • Limitations in Feature / Function / Capacity • Reliability • Manufacturer Discontinues Production and / or Support 4) Financial Factors • Lease Expiration

9. Five Basic Conditions Drive aBusiness to Install New, Replace or Upgrade Telecommunication Systems (continued) 5) New Business Improvement Applications… Enabled by IP Technology • Measurable Employee Productivity Gains • Collaboration Capabilities: Messaging, Presence, Mobility, Video • Improved Customer Service / Satisfaction • Expense Reduction / Avoidance / Containment • Business Competitive Advantage / Differentiation

10. Most Large and Medium Sized Businesses Have Telephone Systems From Multiple Manufacturers in Their Base… However This is Changing TDM System Decisions Were Made On A Site-By-Site Basis… Converged System Decisions Are Typically Made From A Corporate Wide Perspective

11. End User Demand For Converged Telephony Solutions is Steady • Excessive Oversupply During The 1996-1999 Period • IP Telephony Is Accelerating Base Churn…. But Challenges Include: • Tight IT Budgets For Many End User Companies • Understanding How Applications Can Improve Business Productivity Today Enterprise Communications Shipments Total Stations Lines Shipped; U.S. Normalized Average Growth * Includes all IP Telephony lines, including IP equipped lines of IP-Enabled and Converged Systems, all IP-PBX lines, and those offered as Managed/ Hosted Services ** Reflects shipments of traditional Centrex offers; IP Centrex and IP lines offered as Managed / Hosted Services included in Converged Source: IntelliCom Analytics; IntelliCom Market Performance Dashboard & Other Research Databases

12. Typical Participants in the Process

13. Large and Mid-Sized Companies Are Increasingly Using Project Teams to Select New Communications / Collaboration Solutions Information Technology Business Units Finance / Accounting Purchasing / Legal Terms & Conditions Fit & Reliability Applications ROI / TCO QoS & Reliability Business Impact Budgeting Scalability Productivity Financing Manageability Differentiation Ease of Migration

14. Financial Health / Stability R&D Investment Reputation Resources / Technical Competence Business Knowledge Responsiveness Flexibility Customer Friendliness Current Needs Projected Requirements Technical Longevity Business Productivity / Customer Service Impact The Solution Selection Criteria Used By Most End Users Typically Fall Under These Four Major Areas • Customer Support Manufacturer / Channel • Installation Capabilities • Service & Maintenance • Remote Diagnostic Tools • Network Audits • Training • Geographic Reach • Single Point Of Contact • Professional Services • TCO / ROI Factors • Proposed Solution Fit • Initial Acquisition Cost • On-Going Expenses (TCO) • Warranty Coverage • Cost Reduction / Avoidance / Containment • Measurable Benefits • Return On Investment (ROI)

15. Information Sources and Requirements for the Communication Solution Power Users Critical Functions Executives • Revenue Generators • Mobile Employees • Remote Workers • Users With High-Tech Needs • Customer Service • Sales • Marketing • Information Technology • Security • Legal • Senior • Middle-Management • Executive Assistants Identifying, Qualifying, Quantifying And Articulating the Current and Evolving Needs and Expectations of These Users Will Facilitate the Development of an Effective RFP

16. RFP Format and Contents

17. Use Of RFI’s and RFP’s By SMBs And Enterprises ►Request For Information (RFI) • Effective approach to assess supplier interest and capabilitiesto address requirements • Typically less formal than a Request For Proposal (RFP) • An approach to develop / refine a “short-list” of supplier RFP recipients ►Request For Proposal (RFP) • Typically more formal and detailed than a Request For Information (RFI) • Effective approach to determine the best supplier, solution, service and pricing ►Usage Trends • RFPs used much more than RFIs…about a 10-to-1 ratio • RFPs and RFIs used more by Enterprise and Mid-Market…rather than Small organizations • Many suppliers state that RFPs are used to solicit proposals in approximately 50% of their sales situations • RFPs are almost always used for Government, (Federal, State, Municipal) and Education verticals

18. A Crisp And Effective RFP FormatStriking the Balance Between Too Much vs. Too Little Detail Introduction and Background Other Important Information: - Confidentiality - Disclaimer - Contract RFP Guidelines FormatAnd Critical Dates Selection Process , Criteria and Weightings Technical Specifications, Requirements and Expectations Supplier Information And Qualifications + Company History General Geographic Presence and Reach Architecture Pricing Resources and Tools Features / Functions • Capital Expense • Operational Expense • Training • Other Expenses Financial Stability Applications References Terminals / Endpoints

19. An Effective Format For RFP’s…From The End User Perspective ►Introduction and Background • An overview of the company • Company values and differentiators • A brief description of the conditions that triggered this RFP • The goal to be realized and / or objectives to be attained ►RFP Guidelines • Format to be followed • Compliance requirements • Critical dates to be met • Confidentiality • Selection process…who’s involved, selection criteria, weightings • Supplier alternative recommendations

20. An Effective Format For RFP’s…From The End User Perspective (Continued) ►Supplier Background Information • Business description • Executive and Senior Management profiles • Supplier values, specialties and differentiators • Staffing resources, tools and certifications • Escalation process • Products and services offered • Geographic reach • Financial health • References • Testimonials • Awards

21. An Effective Format For RFP’s…From The End User Perspective (Continued) ►System / Solution Requirements And Specifications • Overview • Locations To Be Served • Current And 5 Year Growth Projections • Detailed Specifications • Architecture • Applications • Station Equipment / End Points • Attendant Consoles • Power • Wiring • Administration • Integration • Interfaces

22. An Effective Format For RFP’s…From The End User Perspective (Continued) ►System / Solution Requirements And Specifications • Installation • Maintenance • Service And Support • Training • Documentation • Pricing • List Pricing • Applicable Discounts • Other Incentives • Leasing Options • Financing

23. Communicating With Winning And Losing Suppliers ► The Losing Suppliers • Strengths • Limitations • Appreciation ►The Winning Supplier • Strengths • Limitations • Next steps

24. Q & A Thank You!