Contents Document Overview ............................................................................................................................. 3 Document Purpose.............................................................................................................................................................. 3 Intended Audience .............................................................................................................................................................. 3 Document Structure............................................................................................................................................................ 3 UC BVA Background and Overview ..................................................................................................... 4 UC BVA Background ........................................................................................................................................................... 4 Customer Benefits ................................................................................................................................................................................ 4 Partner Benefits ..................................................................................................................................................................................... 4 Process Overview ................................................................................................................................................................. 5 Qualify .................................................................................................................................................... 6 Phase Description ................................................................................................................................................................ 6 Expected Outcomes ............................................................................................................................................................ 6 Process ..................................................................................................................................................................................... 6 Discover ................................................................................................................................................ 10 Phase Description .............................................................................................................................................................. 10 Expected Outcomes .......................................................................................................................................................... 10 Process ................................................................................................................................................................................... 10 Best Practices for Successful Interviews ..................................................................................................................... 14 Analyze ................................................................................................................................................. 15 Phase Description .............................................................................................................................................................. 15 Expected Outcomes .......................................................................................................................................................... 15 Process ................................................................................................................................................................................... 15 Finalize.................................................................................................................................................. 17 Phase Description .............................................................................................................................................................. 17 Expected Outcomes .......................................................................................................................................................... 17 Process ................................................................................................................................................................................... 17 Appendix A .......................................................................................................................................... 19 Frequently Asked Questions: UC BVA Tool Kit........................................................................................................ 19 Appendix B .......................................................................................................................................... 21 Process Flow Chart ............................................................................................................................................................ 21 Appendix C........................................................................................................................................... 22 Opportunity Qualification Checklist............................................................................................................................ 22 2 Document Overview Document Purpose The UC BVA User Guide is a comprehensive handbook for conducting a Unified Communications business value assessment (UC BVA). This document will prepare a user for the UC BVA process and will introduce the accompanying documents included in the UC BVA Tool Kit. Intended Audience This user guide is intended for current Microsoft® partners who are interested in or are planning to conduct a UC BVA. This user guide will most benefit partners who: Are familiar with Microsoft technologies Have a background in Information Technology (IT) sales and marketing Are comfortable presenting to decision makers outside a company’s IT department Document Structure This document first provides background and an overview of the UC BVA process. It then provides a detailed look at each phase in the process. Finally, the appendices provide additional information about the UC BVA Tool Kit: Appendix A addresses frequently asked questions about the Tool Kit; Appendix B shows the Tool Kit’s Process Flow Chart; and Appendix C includes the Tool Kit’s Opportunity Qualification Checklist. All other documents in the UC BVA Tool Kit can be accessed at https://partner.microsoft.com/global/40118464. 3 UC BVA Background and Overview UC BVA Background Business Value Assessment Services from Microsoft comprise a new initiative to help you identify and unlock the business value of Unified Communications (UC) solutions for customers. Through a proven, structured process, you can work with customers to solve business problems using UC technologies. This business value assessment process can help customers realize a greater return on their UC technology investments and allow you to broaden their reach, benefitting both the customer and the partner. Customer Benefits Gain better understanding of hidden costs and complexity Improve efficiency and effectiveness of business processes using UC solutions Achieve better alignment between business value and technical solution Gain access to financial metrics and a business value analysis conducted by a third party to help prioritize IT projects Partner Benefits Drive sales by expanding current projects or selling subsequent products and services Improve customer satisfaction and trust by helping customers understand how to get the most from their Microsoft technology investments, leading them to call on you for future needs Create access to top-level sponsors (for example, Chief Executive Officer, Chief Technology Officer, and Chief Information Officer) Microsoft has developed business process-based content, interview/discovery guides, and detailed presentation materials to make it easier for you to successfully engage with customers. This document continually references this content. 4 Process Overview The UC BVA process begins with an introductory section and continues with four engagement phases (Figure 1). Learning the UC BVA process and being able to use the materials provided in the UC BVA Tool Kit is the first phase. The four UC BVA execution phases are Qualify, Discover, Analyze, and Finalize. Figure 1: BVA engagement phases Qualify—In the Qualify phase, you will identify potential customers for the UC BVA. Discover—In the Discover phase, you will begin the engagement with the customer and collect the data needed for the final analysis. Analyze—In the Analyze phase, you will enter the collected data in the UC Business Value (BV) Tool and create the financial analysis. Finalize—In the Finalize phase, you will create the final deliverables and present to the Executive Sponsor and Champion. 5 Qualify Phase Description The Qualify phase of the UC BVA process helps you to determine which customers you should approach with the offering. This phase will take your customers through your sales pipeline, determine what representatives of the customers’ organizations you should approach, and help you present the offering to them. Expected Outcomes Determine qualified customers to approach about UC BVA Gain approval from customer Champion to conduct UC BVA Process 1. Create List of Target Customers—When building a list of potential customers for the UC BVA, begin by focusing on your current customer base. Refine your list to the customers you want to initially target by considering: Customers you have recently worked with Customers who are looking to reduce operational expenses (for example, e-mail, conference, or voice) Customers who need to upgrade their private branch exchange systems (PBXs) Customers who are growing, moving, or merging 2. Complete Opportunity Qualification Checklist for Target Customers—This user guide provides an Opportunity Qualification Checklist—a set of qualifying questions to help you choose which customers you should first approach about conducting a UC BVA. Complete this checklist and examine the answers before contacting the customer. You can continually update the checklist as you move the customer through the sales cycle. Resources and Tools Opportunity Qualification Checklist 3. Prioritize List of Customers—Based on the answers to the questions in the Opportunity Qualification Checklist, create a short list of the customers who have the most positive responses to the questions. This will focus your efforts on the opportunities that have the best chance for success. 6 4. Determine Customer Champion to Contact—To successfully complete the UC BVA, you must understand who you will work with at the customer’s organization. Throughout the UC BVA documentation, you will see the following roles: Role Description Executive Sponsor CXO to VP level who will review the output of the UC BVA and has budget authority to approve implementing its recommendations Champion VP to Director level who has sufficient access to parts of the business and the ability to fund the UC BVA engagement Customer Project Lead Manager level who can provide logistical support to execute the UC BVA 5. Contact Customer Champion with UC BVA Opportunity—Contact the customer Champion and let him or her know that you would like to meet to discuss the UC BVA. The UC BVA Tool Kit provides an Engagement Datasheet, which you can include in an e-mail or leave with the Champion in a face-to-face meeting. Resources and Tools Engagement Datasheet E-mail Invitation Template 6. Research Information on the Company—Once you have established the customer’s interest in a UC BVA, research the customer’s company. By researching the company, you can tailor the UC BVA to the customer’s situation and help the Champion understand the value the company will receive. Common sources of information include press releases, current annual reports, and quarterly earnings reports: Source Description Action Press Release “First Bank has announced the acquisition of Second Bank and its 320 branches.” Explore the opportunity to use UC to modernize and incorporate the acquired branches. Annual Report “Wide World Importers will continue to make investments and implement its environmental sustainability program for the coming fiscal year.” Emphasize the reduced travel and carbon offset from using UC. Quarterly Earnings “Current market conditions will force Graphic Design Institute to reduce headcount in non-core support roles.” Discuss how the company can reduce support costs for legacy e-mail by moving to Microsoft Exchange. Report 7 7. Prepare Sales Presentation—The UC BVA Tool Kit contains a Sales Presentation—a template you can use to present the UC BVA to the customer. With this presentation, you can educate the customer on the process and gain their commitment to conduct a UC BVA. When preparing the presentation, use the information you gathered on the company. 8. Conduct Customer Meeting—In your one-hour meeting with the customer Champion, present the UC BVA Sales Presentation to achieve the following goals: Educate the customer on the UC BVA offering Discuss scenarios that could best fit the customer’s needs (for example, All-up Platform, Voice, Conferencing, E-mail) Describe the scope of the engagement and set expectations for timing and deliverables Assign the roles of Executive Sponsor and customer Project Lead Gain acceptance to follow up with a proposal to fund the UC BVA engagement Resources and Tools Sales Presentation 9. Create Proposal for UC BVA—Once you have met with the customer and presented the UC BVA offering, create a proposal for the customer using a Statement of Work (SOW). The SOW will detail the start date, duration, assumptions, deliverables, and cost of the UC BVA. Resources and Tools SOW Template 8 When you are seeking the customer’s approval to proceed with the UC BVA, the customer may have questions or objections. Below is a list of common objections and some responses to help resolve them: Objection Response Shouldn’t this be free? The results of the UC BVA provide a detailed analysis of your current cost structure and provide value to your organization. Won’t the results be biased towards Microsoft? You, the customer, provide the data for the UC BVA. We present all assumptions, calculations, and results to you for review and validation. How can we be sure that return on investment (ROI) results will come to fruition? As a partner, our task is to work with you to explore your UC options and to see your decision through to implementation. Because of that, we are motivated to ensure that what we promise in the results of the UC BVA will be deployed. Can you really get a good analysis of our company in 40 hours? The BVA process has been used with great success at multiple companies of various sizes and industries. To fit into the time period, we may need to restrict the scope of the BVA to a division or business unit and then extrapolate the benefits to the full company. I can’t dedicate this much time to the BVA. With the BVA process, we can interview a smaller subset of users and use industry standards and assumptions in place of the rest. 9 Discover Phase Description As part of the UC BVA process, the Discover phase is designed to be 12 to 14 hours and is focused on gathering information from the customer stakeholders to develop your findings for the final presentation. Expected Outcomes Select UC BVA focus area Collect customer data through interviews Process 1. Contact Champion to Schedule Kickoff Meeting—Once the Champion agrees to conduct a UC BVA, schedule the kickoff meeting and identify participants and a point person to act as the day-to-day contact. The point person is often a customer Project Lead; that is, someone whom the customer Champion has assigned as project leader (for example, an IT manager or business manager). Schedule an introductory meeting or phone call with the point person to determine expectations and explain the steps of the UC BVA process. To facilitate the UC BVA discovery process, both you and the Champion should identify participants for the kickoff meeting and the discovery interviews that follow. These participants will help you collect data, identify and document problems, design solutions, and plan for adoption and implementation of the UC BVA. The participants in the discovery meetings can also provide feedback for the UC BVA deliverables. The customer Champion should recruit four to eight people as interviewees, who can be end users, IT personnel, lineof-business (LOB) managers, and IT/LOB executives. Ideal interviewees: Should know the areas, technologies, and processes under review and the associated problems, costs, and design Can serve as a sample of people to test the solution Can serve as advocates of the proposed solution Can encourage stakeholders to support implementation 10 2. Have Customer Complete the Pre-Engagement Questionnaire—The Pre-Engagement Questionnaire provides you with foundational information that can help to ensure the interviews and discovery process run as efficiently as possible. You can use four scenarios to assess the business value of Microsoft Unified Communications. The Pre-Engagement Questionnaire will highlight what scenario delivers maximum return, best aligns with the Microsoft UC capabilities, and best addresses the customer’s issues and desired future state. Scenario All-up Platform (Modules 2–5) Messaging (Module 6) Conferencing (Module 7) Customer Benefits Early in their evaluation of UC Reduce TCO Seeking value opportunities in several areas of the business Improve business processes Looking to upgrade their Microsoft Exchange system Reduce cost of third-party solutions Using legacy e-mail systems such as IBM Lotus Notes Reduce impact of down time Looking to reduce high travel costs Reduce travel and training costs Beginning green initiatives to reduce carbon emissions Reduce audio conferencing charges Enable telework Reduce carbon emissions Voice (Module 8) Wanting to upgrade from their legacy PBX system Looking for a solution for many locations or branches Reduce telephony provider costs Consolidate and centralize hardware Reduce management and maintenance costs Additionally, the Pre-Engagement Questionnaire identifies potential interview candidates and ensures alignment between the Executive Sponsor’s objectives and those of the Project Lead. Resources and Tools Pre-Engagement Questionnaire 11 3. Prepare for Kickoff Meeting—To prepare for the kickoff meeting, research the customer and the customer’s industry. This preparation will increase the value you can provide to the customer and decrease ramp-up time required during the interviews. When researching a customer, consider the following areas: Company profile, product and services lines, history Recent press and press releases Current leadership and any recent leadership changes Current and projected financial position Company market positioning Potential strengths and weaknesses Industry trends, forecasts, analyses Company market and industry competitors Recent mergers and acquisitions Recent or ongoing regulatory pressure You may find this information by searching publically available sources, including the company’s Web site, business news publications (for example, Wall Street Journal), the company’s Security and Exchange Commission filings (if applicable), and research publications (for example, Gartner Group, Forrester Research, Inc.). In addition, you may interview your customer’s solution partners. Solution partners are any potential vendors or solution providers that do not represent a competitive threat (for example, IT outsourcing partners, contact center vendors, IT hardware and software vendors). Conducting interviews with potential partners may provide the following: Additional information about the customer or environment that the customer may have omitted Opportunities for formal or informal partnerships Insight into potential areas of overlap or competition Better position within the customer account 12 4. Conduct Kickoff Meeting—Before interviewing, meet with the customer Champion, Executive Sponsor, and discovery interviewees for a 60- to 90-minute kickoff meeting. In this meeting, describe the format and logistics, answer any questions, and gather supporting materials for the analysis (for example, architecture documentation, list of sites, process documentation). The primary goals for the kickoff meeting are: Discuss the challenges and initiatives in the Pre-Engagement Questionnaire Set customer expectations for the interviews and discovery process Agree on roles, responsibilities, and timeline for both your organization and the customer Discuss and plan discovery meeting logistics Resources and Tools Kickoff Presentation Template 5. Schedule Discovery Meetings—To ensure an efficient discovery process, you and your customer should: Schedule and confirm discovery interviews Forward the Discovery Questions document to the interviewees and ask them to review and complete it prior to the interviews Ensure the availability of the conference rooms and work space Determine access to network, printers, documents, projectors, and other tools Arrange physical access to customer facilities 6. Conduct Discovery Meetings—The interviews are the focus of the Discover phase Best Practice—Approach the interviews as of the UC BVA. Through interviews, you will conversations; this will put the interviewees at ease and help them provide information. work with the customer to better understand their existing processes, workflows, technology investments, costs, and design. To implement the solution, the UC BVA should include a current state analysis, a future state analysis, a business case, recommendations for adoption and implementation, and a proposal for subsequent solution engagement work. 13 Best Practices for Successful Interviews To maximize the effectiveness of the interviews and discovery process, you may incorporate the following best practices: Conduct interviews in person when possible If possible, include at least one person to take notes while you meet with the customer Limit each interview to 60 minutes Allow 30 to 60 minutes between interviews to summarize notes Provide an agenda to the interviewees Explain that these are not technical interviews Inform your customer that you may estimate data as long as you and the customer agree the information is “reasonable and conservative” Collect data from a representative cross-section of marketing, sales, human resources, operations, finance, IT, legal, and so forth Use the Discovery Questions to collect data Collect simple metrics that you can convert into a business case Collect as much information as possible to ensure you receive timely data and reduce the need for follow-up interviews Resources and Tools Discovery Questions 14 Analyze Phase Description Once you have completed the Discover phase, you can move to the Analyze phase. In the Analyze phase, you synthesize the information you gathered from the interviews into an analysis that the customer can use to make decisions about a Unified Communications strategy. Expected Outcomes Complete the analysis Process 1. Compile Discovery Data—The first step in the Analyze phase is to review the data you have collected. By reviewing the data, you can confirm that you understand the information and have everything you need for the analysis. If you were unable to collect some of the information, you may need to make assumptions. Track your assumptions so you can later adjust the values and review them with the customer Champion. Financial Definitions Total Cost of Ownership (TCO)—Total cost of ownership is a financial measurement of the total cost of a piece of technology, including direct and indirect costs such as hardware, software, support, and maintenance. Return on Investment (ROI)—Return on investment is a measurement of cash flow gained or lost based on an initial investment for a certain time period. The ROI is represented as a percentage. A positive ROI means that the UC investment is returning value in excess of the initial investment. Net Present Value (NPV)—Net present value is the sum of cash flows that an investment will deliver discounted by the time that it will take to receive them. The NPV is represented by a dollar amount that should be a positive number for investments that add value to a firm. Discount Rate—The discount rate is the rate at which a company can borrow money to finance investments. It is used to calculate NPV. Most companies employ a standard discount rate of 8 to 15 percent. Payback Duration—Payback duration is the time required for an investment to produce cash flows that equal the initial investment. Companies usually seek 12- to 18-month payback durations. Capital Expenditures (CapEx)—Capital expenditures are those that a company makes on tangible items (fixed assets) that generate benefit to the company, such as software, equipment, and computer hardware. Operational Expenditures (OpEx)—Operational expenditures are those on services and consumables such as consulting, salaries, and monthly licensing fees. Companies are usually willing to make additional CapEx (for example, software upgrades) if they can show a greater reduction in OpEx (for example, support salaries). 15 2. Import Data into Business Value Tool—The Business Value (BV) Tool allows you to import the customer data captured in the discovery questions to calculate the data needed for the final presentation. 3. Calculate Financial Data—The BV Tool will create both a return on investment (ROI) calculation and a total cost of ownership (TCO) calculation based on the data that have been imported. These figures will be entered into the final presentation. 4. Refine and Adjust the Data—As you examine the output of the BV Tool, you may encounter one of the following scenarios: Some of your results may show a negative ROI or increased TCO for the future state you recommend. If this is the case, review your assumptions and ensure you are accurately reporting the customer’s current costs. Include costs for all components and associated hardware, software, support, and maintenance. Your results may show a negative ROI if you understate the benefits of the future solution. Review your data and assumptions. If your results continue to show a negative ROI after you review your data, select a different scenario for the customer. This may require you to go back and capture additional data to calculate a new set of benefits for the customer. Once you enter the data into the BV Tool and calculate the preliminary results, your numbers may come out too positive. In this case, the customer may not believe the results because they seem overly optimistic. Re-evaluate the assumptions and look for those that you can make more conservative to reduce the ROI and benefits that are calculated. Document these adjustments and review them with the customer Champion, showing that you have worked to keep the financial metrics realistic. Resources and Tools BV Tool 5. Create a Draft of the Final Presentation—Using the Findings Presentation Template, customize and complete the data required for the final presentation. The template explains where you should put information from the BV Tool and how to customize the slide deck for an effective final presentation. Resources and Tools Findings Presentation Template 6. Review Draft with Customer Champion—Review the draft with the Champion before delivering the presentation to the customer. The Champion can help to validate your assumptions and avoid any controversial recommendations in the final presentation. 16 Finalize Phase Description In the Finalize phase of the UC BVA, you will present your findings to the customer and confirm their understanding and acceptance of the data. The goal of this phase is to establish your next steps with the customer and to validate the value of the UC BVA engagement. Expected Outcomes Complete the UC BVA engagement Discuss next steps for follow-on work Additional discovery Architectural design session (ADC) Proof of concept Sale of UC software and services Process 1. Make Final Changes—Based on your review with the customer Champion, you may need to change elements of the final presentation. Using the templates in the BV Tool, complete the following steps: Align benefits to customer initiatives—Review the original pre-engagement goals, challenges, and initiatives and ensure that your proposed solutions relate Add quotes from customer interviews—Add context to the report by providing supporting data and quotes from your interviews Expand on next steps—Explain to the customer how to validate and adopt the steps you propose 2. Schedule Final Meeting with Customer—Once you have delivered the final presentation and the customer Champion has vetted it, schedule a final review session. The Executive Sponsor, customer Champion, customer Project Lead, and any additional stakeholders (including the customer interviewees) should attend this session. 17 3. Present UC BVA Findings—In a two-hour meeting, present the results of the UC BVA to the Executive Sponsor, Champion, Project Lead, and other stakeholders. Be prepared to cite sources for your information (including the discovery questions) to support your presentation. Resources and Tools Findings Presentation Template 4. Follow Up on Next Steps—Revealing the value of moving to Microsoft UC is only the start. To conclude the UC BVA, schedule a meeting with the customer Champion to adopt the recommendations of the UC BVA. 18 Appendix A Frequently Asked Questions: Microsoft Unified Communications Business Value Assessment Tool Kit 1. What is the UC BVA Tool Kit? The Unified Communications Business Value Assessment (UC BVA) Tool Kit is a set of tools and resources designed for the Microsoft field and partners. Using the UC BVA Tool Kit, you can show customers and their business decision makers (BDMs) how to document, analyze, optimize, justify, sequence, and propose a plan to improve their business by using Microsoft UC technologies. We provide a reliable, repeatable process that you can use to conduct fiveday engagements to help customers understand the business value they can receive by moving to the Microsoft UC Platform. 2. What is included in the UC BVA Tool Kit? Learn Training Modules User Guide Process Flow Chart (see page 21, below) Qualify Opportunity Qualification Checklist (see page 22, below) Engagement Datasheet E-mail Invitation Template Sales Presentation SOW Template Discover Pre-Engagement Questionnaire Kickoff Presentation Template Discovery Questions Analyze BV Tool Finalize Findings Presentation Template 19 3. How does the UC BVA benefit partners? The UC BVA provides several benefits to partners: A structured engagement process that is deliverable worldwide—Use the UC BVA to identify the scope of the engagement and to generate more service engagements: Improve business processes Effectively identify and license service engagements Gain direct access to BDMs and line-of-business (LOB) managers across a customer’s organization, driving future consulting engagements Make engagements highly repeatable, lowering the cost of sales and delivery Compensation from Microsoft to deliver UC BVA Tool Kit services—Provide customers with planning services at a reduced rate as a sample of your work: Benefit from compensation available from Microsoft for customers with Software Assurance benefits through the Exchange Deployment Planning Service (EDPS) Establish new, or deepen existing, business relationships Reduce the risk and cost of business development Marketing opportunities with the UC BVA Tool Kit—As a qualified partner, you can build and introduce services to the customer: Help to identify additional opportunities Broaden exposure throughout a customer’s organization Open doors across an organization beyond the IT Department, elevating you to trusted advisor status within the customer account 20 Appendix B Process Flow Chart The UC BVA Process Flow Chart provides a detailed overview of the engagement, including steps to be followed and timeline. 21 Appendix C Opportunity Qualification Checklist The Opportunity Qualification Checklist can help you determine which of your existing customers you should first approach with the UC BVA offering. Complete the checklist for each of your targeted customers, entering as much information as possible. Replace the italicized text and enter your responses in the Answer column. Customers with the most number of “+” responses should be the highest priority to approach with the UC BVA engagement. Question Is there an executive who can sponsor the BVA? Will that person retain long-term spending authority? Answer Provide name and title Describe the relationship with the customer sponsor. Rating Yes + No - Strong + Weak - Have the customer’s existing costs of operation for communication and collaboration been evaluated? Provide cost per user and other relevant breakdowns Yes + No - Describe the level of influence of unified communications (UC) competitors in the account. List competitors and associated products Strong - Weak + Describe the customer’s existing communications environment. As compared to the Microsoft offering Good - Poor + High + Low - Yes + No - What is the intensity/urgency of making a UC purchase/deployment decision? Does the customer have an estimated budget for deploying a UC solution across the organization? Figures, estimated breakdowns Which and how many pain points can be resolved or addressed by a Microsoft UC solution? Such as reducing travel costs or improving work processes High + Low - What percentage of “high-value” workers work from geographically separate locations (outside headquarters)? Define as a percentage High + Low - What is the customer’s growth rate in terms of opening branch/regional offices each year? High is greater than 10 percent High + Low - 22 What is the customer’s willingness to upgrade to future communication and collaboration technologies that will improve their business performance? Yes + Does the organization proactively acquire new/future technologies? No - Yes + No - Is the customer entitled to the Exchange Deployment Planning Services? 23