Evolving your network into a strategic asset: A roadmap

Evolving your network into a strategic asset: A roadmap

It is hard to believe that only twenty-five years ago the communication network consisted of conference rooms, telephones and the mail cart. Since then, networks in Canada and around the globe have gone digital, and they are evolving at an accelerating rate. The network continues to increase organizational productivity by leaps and bounds, but the challenge for those responsible for managing that network remains the same: connecting people and information in a more secure and efficient fashion.

1.0 The tremendous opportunity of the evolving network

IP connectivity is the latest step in network evolution, bringing about significant improvements in network reliability and speed. The network is quickly becoming a powerful strategic asset–evolving from a simple information conduit to a resource with built-in intelligence.

IP-based network processes have created major shifts in the ways that corporations structure network management, and have spurred growth in new kinds of functionality. Thanks to IP connectivity, the network can now connect people better and more intelligently, bring the knowledge of your entire organization to bear on any undertaking, and leverage top-tier network components –for less cost and with less administration required.

This white paper will show you how to build and implement a roadmap for network evolution according to best practices. Read on to discover:

• How to engage with the network model of the future
• How service providers are adding significant value
• What benefits will accrue
• How to plan and execute a network evolution for your organization

1.1 Business impacts

IP networks add value to enterprises by enabling shifts in how communications and IT are delivered: because of the ubiquitous nature of IP connectivity, there is no longer a need to tether applications to specific sites. Users can connect to enterprise applications wherever they happen to be. This anytime, anywhere connectivity is changing business processes, significantly increasing productivity and encouraging the proliferation of new applications.

At the same time that working anywhere is becoming a reality, IP-enabled unified communications tools are also delivering game-changing benefits, giving colleagues and business partners visibility into each others' status (available, on the phone, in a meeting, etc.) and access to knowledge as never before.

1.2 Impacts on IT

The emergence of the IP network is changing the way that IT organizations operate and provision services at the most fundamental levels. It has paved the way for IT to:

• Evolve from a standalone business function to a strategic enabler of business delivery
• Change from a collection of discrete elements and functions to now utilize a network-based corporate cloud model
• Move towards a distributed delivery model of hosted and managed solutions

IP connectivity has significantly improved network connectivity and speed while driving cohesion in the provisioning of network elements. At the same time, it is also adjusting the relationship between enterprises and their providers.

1.3 The evolution of network-based services

The emergence of IP networks is changing the way that network-based services are provisioned, enabling ICT service providers to deliver far more than just Internet bandwidth. Applications such as upstream network security, session initiation protocol (SIP) Trunking, application acceleration, content delivery networking and more are now offered as services.

Service providers are playing a greater role in the provisioning and administration of the network, contributing specialized expertise and economies of scale, while concurrently reducing enterprises' capital expenditures. Service provider tools and services are also helping network architects to better address the changing role of the network and to fill the often conflicting needs of users and administrators.

2.0 The changing role of the network

One of network architects' and administrators' chief challenges as they strive to satisfy all the needs of their organization has always been reconciling the divergent demands of end users and policymakers. And today, the needs of those two groups are farther apart than ever.

Users want greater access

The end user wants more unfettered access to the corporate environment and applications. Consider the growing number of unsanctioned laptops tapping into corporate networks. This practice is often tolerated for the sake of expediency, even if it flies in the face of company policies that govern information privacy, security and backup.

A big part of the reason for this tolerance is that users' demands for more network access are legitimate. Users rely more on the network than ever before, accessing it from many locations and at all hours of the day, so they understandably have high expectations of the network. Several trends contribute to this growing reliance:

• Digitization of business processes
• Information dependence
• Migration of communications streams to IP
• Network-based information and service availability
• New network intelligence services such as:
  • Location-based applications
  • Cloud computing
  • Radio-frequency identification machine-to-machine communication

Policymakers want more security

At the same time as users' demands for access is increasing, policymakers face a growing number of complex organizational issues: the need to guard against Internet- borne security threats; the need to comply with increasingly stringent regulatory requirements on financial, operational and IT processes; and the pressing need for more sophisticated and affordable methods of securely storing ever-increasing amounts of information.

The proliferation of these entirely valid demands from both users and policymakers has made the need to evolve more pressing than ever. The good news is that evolution is not an insurmountable task–it just requires a roadmap.

2.1 A transformational network shift

As a result of new applications, especially in communications and increased mobility, the network's role is changing from simple conduit to a cloud with intelligence. This transformation is increasing its value as a strategic asset that plays a critical role in how a business competes.

The network is shifting in two ways:

• Site-centric to user-centric - wireless and cellular technology, IP-voice capabilities, security capabilities and content delivery facilitation have all made enterprise applications accessible to employees wherever they are, on a variety of devices.
• Physical to virtual - in-house network assets are being replaced by network-based corporate cloud infrastructure. Software as a service (SaaS) is increasingly prevalent for network applications and services like Unified Communications (UC).

Businesses need faster, more efficient communication, and this shift in network focus makes it possible. There are now many more options for connecting people to the information they need and for drawing upon collective knowledge–something that organizations were never able to do effectively in the past. A key ingredient in this transformation is network tools and services provisioned from outside the organization.

2.2 The increasing importance of service providers

The move to IP-based networks has made service providers more integral to organizations' technology architecture. Hosted services are now replacing some capital expenditures. There are many reasons for this shift:

• A consistent level of reliability and performance
• Continuous improvement of business infrastructure
• The ability to leverage best practices in management processes and tools
• Industry-leading technology expertise
• Elimination of expensive capital investments and reduction of administrative costs
• Off-site backup and other remote services for use in disaster recovery and continuity planning
• Managed data centers reduce the burden of complying with regulatory requirements
• Reduced complexity within the IT infrastructure that strains internal resources and capabilities

ICT service providers are increasing investment in hosted capabilities, and now offer expertise and economies of scale that are difficult to replicate. Many of the non-IP technologies that organizations currently have installed were designed for utilization as individual components, or on a pay-per-use basis.

But advancements in IP technologies and SIP trunking have changed this. It is now much easier to take advantage of robust technologies in every category as hosted or pay-per-use services. If you aren't familiar with your current service provider's solutions, ask for an expert to discuss them with you.

The following table illustrates some key service provider capabilities:

Table: ICT provider network-based capabilities

3.0 Best practices in evolving the network, Part I: Building the Roadmap

One of the central challenges that IT departments face is providing for a new application or capability when the business need arises, because it rarely comes with enough notice to optimally plan and adjust network infrastructure. A long-term roadmap and evolution plan ensures that, even in rush situations, you can work toward the future state without making compromises along the way–or that you are at least aware of what compromises are unavoidable.

A comprehensive future-state roadmap should factor in the following:

• Key goals and objectives
• Business challenges, and how they might be addressed by technology
• Current IT infrastructure, life span and support model
• future-state technology and support model, including how to integrate with current infrastructure
• Timelines and business implications–both positive implications of enabling technologies, and any risks should technology not be upgraded within appropriate timelines
• Financial implications of the technology and operational models for both the current and future states

3.2 Building the Roadmap

Putting a plan into action involves a number of broad steps and a great many smaller tasks in between. While the details of every plan will differ greatly, the roadmap framework generally involves the following steps, in order:

• Create use-case scenarios
• Benchmark the current environment
• Identify technology components
• Build timelines
• Calculate business impacts and ROI
• Create a financial model

Calculating a return on investment is almost always a crucial factor in implementation, and you should have some idea that a return is likely and sufficient at the outset. But it is only when most other steps have been taken, and a more detailed roadmap emerges, that ROI can be calculated with any degree of accuracy.

3.2.1 Create use-case scenarios

Before delving into specifics regarding budgets and security requirements, forget for a moment about the current model and instead focus on building use-case scenarios around key business uses and processes. Consult closely with business owners and end users of technology capabilities in order to understand and map all of the end-user needs. This process will also help garner early support for investments that improve usability.

Start by building use cases for simple scenarios like voicemail. For instance, what is the best use case for checking voicemail on a mobile device: a sound file delivered in an email as an attachment, or consolidating mobility and landline voice mailboxes?

A more complex use-case scenario may include examining a business process enabled by technology. For example, how could customer experience be improved by using presence information and location tracking to find the right expert in the shortest amount of time? Use-case scenarios should be built around the communication flow patterns with the highest impact.

3.2.2 Benchmark the current environment

Having a clear picture of the current ICT environment is a prerequisite for building an effective roadmap. Benchmarking your current state will allow you to measure your progress in evolution, both in terms of pure functionality improvement and in terms of detailing improvements in efficiency, functionality, cost savings and more.

Here are the steps involved in completing a benchmarking process:

• Collect user specifications for services currently being delivering to various business groups
• Detail contracts that you have in place with suppliers
• Amass specifications on existing vendor technologies
• Undertake interviews with operating groups

Note: it is important to measure actual service levels and metrics to the contracts that are being fulfilled, rather than relying on published details. It is not uncommon to find gaps between what is intended for delivery and what is actually being delivered.

Compare present and future state metrics

Once current environment mapping is complete, including any end-of-life implications, it is time to compare the metrics of this benchmarked current state with anticipated future- state metrics. This comparison will form the basis for the roadmap's framework, and will help to identify where existing technologies satisfy best use cases, and what additional technologies will be required in particular areas. This is necessary in order to assess the business impacts and timing of investments.

Cost per user evaluations

Part of the comparison between current- and future-state metrics involves cost-per-user calculations: current costs per user, and anticipated costs per user. These are normally based on a variety of user types. Specifically, you may have costs-per-user for contact centre agents, field operations, sales associates, various line and support functions, and more. If, however, a high percentage of capabilities are common to all, splitting user costs into different categories may not be worthwhile.

3.2.3 Identify technology components

Once you have completed use-case scenarios and benchmarked your current environment, you will be in a position to identify the ways in which different technologies–some that you may have already and some new–can be applied across your organization to satisfy use cases. Common goals include maximizing use of existing, in-house technologies, and settling on additional technology solutions that satisfy several use-case scenarios. As an example, organizations in the health care sector often find that radio frequency identification (RFID) technology can be used to track the location of both equipment and people, satisfying two common and important use cases.

Keep it high level

How technology components are defined can vary greatly. Choosing specific components for each use case involves decisions on expenses, vendors, service providers, integration, upkeep and other considerations. During roadmapping, it is best to define components at a high level, based on a capability to do something or to obtain information rather than delving into great detail. What is critical at this stage is to map technology components back to the use-case scenarios and ensure that the right level of detail is defined for the business-dependent components.

3.2.4 Build timelines

Developing a detailed timeline is an important part of ensuring that benefits are realized, inputs are well managed and expectations are clear. The first step is to consider who is involved. The total size of the group, the relationships between groups involved and their ability to move the process forward in a timely fashion will have a direct impact on the timeline. As an example, use-case scenarios can take longer than planned because of competing priorities.

Your timeline should:

• Show dependencies–what actions are dependent on prior action(s) being taken
• Schedule key tasks, including inputs required. These will help build the financial model so that you can ensure that all the input needs are being addressed, and so that you won't find yourself scrambling for input in the analysis stage
• Allow for strategic update sessions where you will have the opportunity to give progress updates and ensure alignment
• Include review sessions that engage stakeholders to look at recently completed steps before moving forward

There is more to it–the factors involved in building a timeline could occupy an entire white paper in and of themselves. But the steps listed above are critical to ensuring a credible timeline that you can actually execute. You might find value in bringing on a third party with experience in developing and acting upon network evolution roadmaps.

3.2.5 Business impacts and ROI

Before initiating any major network upgrade work, one thing you must have is a solid business case that forecasts a return on investment (ROI). The return forecast will depend on the business impacts of a network upgrade. In determining business impacts, you'll need to work closely with business owners in order to quantify and develop some anticipation of what precisely they consist of. This is an important first step in setting the groundwork for ROI calculation.

The greatest business impacts will concern, of course, the savings that are created, some of which will be thanks to productivity increases that future capabilities enable. Take a look at the roadmap's individual components and predict high-level impacts, such as:

• Existing revenue they support
• Additional revenue they can support
• Areas of potential cost savings they offer

Once you have accomplished this, work with business owners to drill down and gain a deeper understanding of the specific impacts created through changes in process, simplified administration and reduced latency.

3.2.6 Demonstrate ROI

There are two key return scenarios that should be considered when planning and building your ROI analysis. The first concerns the simplification of existing business processes through technology, which result in lower costs. There are a variety of potential ways that this can happen:

• Technology consolidation, with reduced equipment, software, maintenance costs, etc.
• Reduced administration
• Reliability and stability in the technology platform or service being provided

The second return scenario centres around creating cost savings and/or increasing productivity by changing processes with technology. There are many such scenarios. One strong example is video conferencing. Of course, this scenario must include the cost of the technology and operating support, as well as reduced travel costs and associated expenses. But indirect savings–in terms of increased productivity, employee satisfaction and even environmental impact–also must form part of the equation, and can easily add up to greater savings than reduced travel alone.

3.2.7 Build a financial framework

Building a future-state cost model is complex. Above all, it is important not to get lost in the details at this stage. Keep in mind that the primary goal is to get to a future-state financial model, not to make exact decisions regarding how the model is executed. Once again, focus on high-value capabilities. Following are some tips for creating a model that works:

Know your mandate

One challenge of building a financial framework for a network evolution roadmap lies in determining its boundaries. Many new technologies enable benefits and savings that fall far outside the typical reach of the IT organization. Video capabilities like telepresence, for example, can bring about significant savings in work hours and travel costs. But company travel expenditures are not often in direct view of the IT organization, nor does that department have the ability to control budgets.

Both financial provisioning and ROI models should be predicated on your mandate: are you accountable for and keeping track of the impacts of improvements across the organization, or are your efforts limited to business processes more directly connected to IT? Be certain to begin with a clear mandate.

What's involved

Once you have estimated returns on investment, determined business impacts, established a timeline and have a clear mandate, you are now in a position to build a financial framework. Start by mapping changes as they affect the system's cost and revenue base and as legacy costs and expenses are subtracted when old systems and equipment are taken offline. These include:

• Capital costs - these typically cover technology and assets, including appropriate assumptions around their expected life spans
• Expenses - these usually include implementation, maintenance and support costs as well as costs of management, including change management and help desk/user support costs
• Revenue streams - in some scenarios, there may be a charge-back to other departments for services

Calculating costs

Once you have a general idea of costs and expenses, it's time to gain a more precise picture of the costs involved: what has changed since the roadmapping phase, what has remained the same, and whether looking at different management models–such as managed services or outsourcing–will create a more positive financial impact.

This requires a good understanding of the future-state model, and it is where your ROI calculations will come in handy. In building a financial model, we go through the same steps outlined above–understanding the capital, implementation, maintenance support, management and help desk costs–while also determining when the hard savings that will be gained through simplified administration, greater productivity, savings on travel etc. begin to kick in and offset the investment in network upgrades.

Getting estimates

While you may well understand the costs associated with capabilities that exist now and what will remain in the future state, new capabilities demand budgetary estimates from vendors and partners. In asking vendors for estimates, be sure to request:

• The cost of the technology
• The cost of implementation
• The cost of ongoing management support

3.2.8 Build in evolution

Approaches to building a strategic roadmap for network evolution vary widely across organizations. But regardless of the degree of planning, investment levels and even methods of financial analysis, organizations should follow a consistent approach. It is important to invest time in understanding the following:

• The business goals and how technology can support them
• How to leverage existing infrastructure
• What investments will offer the most value
• How the financial implications of current- and future-states will support the IT organization for years to come

Note that in building a roadmap for evolution, everything will evolve, including the roadmap itself. As technology and business goals change, so too will your roadmap. But if it is built in accordance with best practices–and it is revisited on an annual basis and revised as needed–it should serve for the long term.

4.0 Best practices in evolving the network, Part II: From Roadmap to Action

Once a roadmap of capabilities is established, it is time to delve into greater detail and deliver on the first sets of technology capabilities. The following are best practices in executing on the network evolution roadmap.

4.1 Check the financial framework

The roadmapping phase concluded with the building of a financial framework. Now, at the beginning of the execution plan, is the time to make sure that assumptions you made previously are still valid; that the models you forecast are still optimal; and to do any last- minute fine-tuning before moving to action.

Revisit use-case scenarios

The first action in the roadmapping phase concerned mapping use-case scenarios. Revisit these to see if they still hold true. Ask yourself:

• Do use-case scenarios and preliminary assumptions concerning ROI still make perfect sense after all that you have accomplished to this point?
• Does your roadmap still address prime business drivers?
• Will it increase revenue, reduce costs, or both?

Review operations model

Understand how the various options for choosing an operations model (covered in detail in section 4.4) can change the business case. Ask yourself:

• Can financial support for the investment be blended into your current operating approach?
• Would a managed service model deliver the same results at a lower cost?
• Would purchasing capabilities on a pay-per-use model help manage the risks associated with driving high user adoption?

Review costs, expenses and revenue streams

Do the predictions you made in roadmapping still hold true? If the cost and expense model has changed in the interim, now is the time to adjust, as it is crucial to know what funds you have available ahead of selecting the technology.

4.2 Select the technology

You will already have preferred technology vendors and some established technologies in your organization. This is typically a good starting point for exploration, as existing suppliers will likely have a good understanding of your user needs, your culture and what is required to ensure successful project execution.

But it is also important to resist the urge to spend all your time with established vendors and technology models. The technology landscape is constantly changing, as are the delivery models. Many network providers offer pay-per-use hosted services, which let you try out the technology you want to implement before you adopt. It is a great way to ensure that you are getting what you need, but also to test end-user adoption and reduce your own risk.

Prioritize investments

A simple principle for evaluating technology vendors and providers is to put your requirements into three buckets: critical, preferred and optional. Separate technology solutions into buckets by examining the required components, re-exploring the use-case scenarios and looking at their business impacts.

Once you have your three buckets, be sure to spend most of your time on choosing the technology in the first bucket. Keep in mind that the ongoing management model that you choose will greatly affect your decisions regarding technologies. Choosing a managed services model, for example, will mean that there are fewer choices to make in terms of technology components, but that more attention needs to be paid to service contracts.

4.3 Provision expertise, manage change

A big challenge with any implementation is getting people up to speed. Common areas of concern include skills requirements, staffing levels, workload and training time–but more than anything else, resource challenges often have a lot to do with a simple lack of experience. For this reason, implementations of evolutionary networks–as opposed to a simple technology update–are rarely completed entirely in-house.

As you examine technology options, assess your ability to handle implementation internally by asking yourself:

• Is the team well versed in the technology?
• Does the staff have the sufficient background knowledge and detailed expertise to implement, configure and support new capabilities on the roadmap?
• How many employees are available, and how does this compare to size of the project?

A good test of your organization's in-house implementation capability is to consider how much the design and operation of new technologies will vary from those of current technologies. If platforms and protocols are substantially different, you may have a gap that is difficult to fill using the current staffing base and skill sets.

4.4. Provisioning options

If you will not be able to bridge the technology gap with internal resources, there are several options:

Training

This is often the first option considered by IT organizations, but it comes with significant costs not only in terms of actual price, but also time. If the intent is to build in-house expertise, and the option exists to stage the implementation and investments accordingly, training can be a viable option. However, don't forget risks associated with employee retention: many organizations have trained staff in new technology only to find them use those skills to find new employment.

Increase staffing

Hiring experienced professionals who have implemented similar projects will help pinpoint areas of risk, potential gaps in the technology and ensure that you have the support you need to get the work done. This model often provides some level of on-the- job training for your staff and allows you to establish the base of skills you need faster than standalone training practices would. Increasing staffing could be the right model if the expectation is that resources hired will be needed for the long term–and if there is sufficient time to allow for appropriate hiring processes.

Hire a transitional team

If the duration of the project doesn't require increased staff levels on a sustained basis, the training period is lengthy or a high level of expertise is needed, the best way forward could involve hiring experienced professionals as part of a transition team. Best practices dictate that the internal project leader structures the transition team as part of the overall project team, rather than keeping them as an independent group. In this way, the benefits of a transition team are threefold: you get the experience of past implementations applied to your own project work; project risk is significantly reduced; and your permanent staff learns from specialists on the job.

The build-operate-transfer model

When there are many concurrent projects or the complexity of a particular project makes it difficult to execute with increased staffing or a transitional team, it is worthwhile considering a build-operate-transfer model: a third-party specialist organization builds and operates the solution, then hands it off when operations are running at steady- state–typically with your own trained resources. Although this model allows for the execution of critical projects when an organization lacks the necessary skills or sufficient resources, it can be difficult to ensure a smooth transition and to ensure ongoing support. Make sure that this step is carefully planned at the outset.

4.5 Choosing an operations model

As technology has become more integrated–single devices now provide traffic routing, prioritization, in-building wireless access, security capabilities and more–network administrators face growing demands over how features are delivered, managed and maintained. It is critical that best-practice frameworks such as the IT Infrastructure Library are followed as part of the delivery model. It's also essential to consider standards such as SAS 70, PCI and others, whether future-service capabilities are ultimately handled internally or outsourced. Consider the following common models for operations management:

Standby support

Standby support is usually the simplest operating model. Used to augment internal knowledge, the standby support model provisions expertise on an on-call basis to provide advanced troubleshooting capabilities. This option, normally considered an extension of in-house support, can be invaluable during the early stages of a new implementation.

Managed services

Managed services can range from basic remote monitoring to providing all assets, upgrades and complete Fault, Performance, Change and Capacity Management. Managed services are on the rise, because they reduce capital expenditures for systems and reduce staffing requirements. Managed services are particularly beneficial during the transitional period when new technology is being implemented. As noted above, a pay-per-use hosted services model can let you try out the technology you want to implement before you adopt, ensuring you get what you need, and test end-user adoption. It also reduces your risk–the onus to execute is on the managed service provider.

Outsourcing

Outsourcing solution management is a strategic decision that is typically made for financial considerations, and usually involves having a third party take on existing contracts, assets and people, although the scope can vary considerably. While this option exists, it is unlikely that a network evolution plan and implementation would provide the impetus to make that shift.

Test your decision

Regardless of which approach you use to manage ongoing operations, it is important to choose resources with demonstrated capabilities in areas of implementation. Take the following steps in order to make sure that you are making the right decision:

• Request roadmaps from your network provider
• Request proof points on what capabilities they can deliver
• Ascertain whether a pilot program can be undertaken for proof of concept
• Talk to other customers in order to find out what their experience was like

5.0 Considerations in choosing a partner in evolution

Your choice of ICT partner can increase the quality and scope of your network evolution. Making the leap to next-generation network and IP-based services is normally a long- term project that can span several years. The complexity of such a project requires planning and strong, established processes. Successful execution requires in-depth knowledge of the steps involved, the supporting infrastructure and operational interdependencies.

Expertise, offering, R&D

Be sure to look for a partner that will be of value from the planning stages right through implementation–their expertise will be invaluable, and they will gain great insight into your particular situation.

In addition to expertise, it is important to examine potential partners' total ICT offerings. Consider choosing a partner that can offer many of the component pieces your solution requires and is adept at integration, or may have pre-integrated capabilities that will simplify and accelerate the process.

Keep in mind that you are engaging more than experts–you are leveraging the sum total of a partner's research and development efforts over decades. Closely compare potential partners' total offerings in terms of applications, services, expertise and experience.

6.0 Positive growth

In Canada and the world, the network continues to evolve quickly, but the challenge faced by network administrators remains the same: connecting people and information in a secure, orderly fashion. The move to IP-based network processes has enabled us to do this better, engendering tremendous growth in network functionality. It has also created great change in the way that network management is structured, increasing the role that service providers play, providing better end results and reducing capital expenditures for organizations large and small.

Ultimately, the switch to user-centric and virtual networks better connects people and information, encouraging collaboration, eliminating waste and increasing productivity and satisfaction among all parties.

In order to effectively harness the benefits of Unified Communications and other productivity-enhancing technologies, organizations require a solid roadmap and a comprehensive plan for growth that will help them get the most from their networks now and in the future. Fortunately, there are clear best practices for evolving the network.

When planning for evolution, your choice of ICT provider is critical. It is important to analyze potential providers' offerings in terms of high-level expertise and technical experience, the depth and breadth of their offerings, and their overall ability to fill your specific needs.

6.1 Talk to Bell

Bell is a Canadian leader in network evolution, with Canada's most reliable and redundant network. We offer a broad array of Unified Communications and other network-based capabilities and services. We have the vision, the experience and the expertise to help you at all stages of evolving your network, from planning through to execution and the ongoing provisioning of equipment, services, applications and expertise.

To find out more about how Bell can help you to evolve your network, to explore your options, or to inquire about a specific technology, contact your Bell representative or have a Bell representative contact you.

About the author

Jeremy Wubs is Director of Product Management for Bell's Network Data, Voice and Managed Services portfolio. Jeremy has held a number of senior positions in product management and channel marketing within Bell and was General Manager/VP of Network Business Solutions at Nortel.