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IAG NZ “Project Converge” delivers full ROI inside 12 months with costs slashed by 25 per cent

  • Avaya’s Agile-delivered platform is one of New Zealand’s largest IP deployments to date

Media Contacts:
Alicia Price, Avaya
Tel: (02) 9352 9107
aprice@avaya.com

Investor Contacts
Matt Booher, Avaya
Tel: 908-953-7500
mbooher@avaya.com


For Immediate Release: 26-May-2005

Sydney, AUSTRALIA – Avaya Inc. (NYSE:AV) - a leading global provider of business communications software, systems and services – has today announced the completion of one of the largest IP Telephony deployments in New Zealand which comprises an end-to-end migration from a traditional TDM network to a fully-featured Avaya IP Telephony infrastructure. According to IAG, full ROI is projected within 12 months and costs will be slashed by more than 25 per cent.

IAG in New Zealand in 2002 faced an urgent business need. The merging of two leading insurance brands – State Insurance and New Zealand Insurance – presented an opportunity for a new IT strategy but also demanded a more sophisticated and innovative system. After outsourcing the non-core IT&T function, the team then looked to establish a next-generation, function-rich communications platform that could move the business forward and enable the dual business goals of cost-reduction and heightened customer service – delivered through a 900-seat virtual contact function.

As a general insurer, it was recognised that to survive in a competitive climate, the business needed to be able to respond to its customers’ needs in the event of all kinds of personal loss quickly and in any manner customers chose. The mobility benefits inherent in an IP Telephony network makes the business much more flexible, responsive and productive; while having the realistic potential for video-use that enables a fully-functioning, multi-channel contact centre.

In a rare case of a “brown-site” migration, IAG overhauled the entire existing cabling system and then migrated to a fully-managed service based on a converged voice, data and video-capable network including function rich softphones for call centres. The topology also included an integrated numbering plan across fixed AND mobile telephony. “What we have done proves that migration to a converged telecommunications platform is not only feasible but delivers tangible and significant business benefits in a very short time frame,” said Mr Brenton Hall, National Sales Support Manager, IAG New Zealand. “In fact, we saw service level improvements the day we migrated and our overflow capability allows us to use our outlying sales site network more effectively,” he said.

There were several benchmarks on which the business measured service levels. Abandon rates were high enough pre-convergence to be rated as a business problem. Post-converge targets were set at five percent, but the new system was very quickly delivering only one or two per cent as a result of smarter call routing, better data access, easier multiple queuing and higher productivity. Equally, an 80 per cent standard for calls answered within 20 seconds was easily surpassed. These targets were set based on expected performance of the new system rather than the old system. Nevertheless, expectations had been surpassed to such an extent, IAG NZ is looking into whether new ways of measuring service levels are required.

In addition, functionality was exponentially increased. Previously, there was no CTI, and real-time visibility of traffic was achieved through unreliable wallboards. Equally, overflow queuing was impossible to manage, so once a call was re-routed, the call centre manager lost visibility of it. Consequently there was limited ability to plan, project or respond to traffic oscillations. The new level of control delivered by the ‘smarts’ within the Avaya system mean that call centre managers now have real-time visibility of traffic and complete control over volume management, while IAG NZ can cleverly utilize its staff network across the country.

“Ultimately, this is a fantastic outcome for our customer service provision,” said Carlton Taya, managing director, Avaya South Pacific. “Because of the reporting facilities inherent in the Avaya system, IAG can continuously monitor and control the system to ensure they can maintain these service levels and scale them up should volume grow unexpectedly. This is truly mission critical given 85 per cent of IAG’s sales, claims and service is completed over the telephone.”

 

About Avaya
Avaya Inc. designs, builds and manages communications networks for more than 1 million businesses worldwide, including over 90 percent of the FORTUNE 500®. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol (IP) telephony systems and communications software applications and services.

Driving the convergence of voice and data communications with business applications - and distinguished by comprehensive worldwide services -Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya website: www.avaya.com.au.

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