10 Common Mistakes Associated
With Buying a Telephone System
A White Paper by Steve Allen
Steve Allen, the Owner of Allen Telecom Professionals periodically releases informational papers targeted toward business owners and consumers of telecommunications products and services.
Mistake # 10 – Lack of Advance Planning
For a number of reasons business or IT managers don’t do a thorough enough job when it comes to preparing for their new telephone equipment. Often times they rely on the advice of the equipment vendors who unfortunately have other motives, to sell their equipment! After all that is how they make their living.
The advance planning, although sometimes viewed as a grueling task, is the framework for how the new telephone system will work within your specific environment. The correct site engineering, system programming, and subsequent installation is made possible from the data collected here.
Information such as the trunk configuration, station lists, voicemail setup, and automated attendant messaging help bring the system to life. Knowing how a call flows through your business is even more important. Imagine yourself as the caller. Where do I go first, for how long, do I have choices?
This is how the public ultimately judges your company and makes their final determination’
“They are a great company to work with, quick and efficient. It was a real pleasure” or “What a waste of my time I got into their automated system and couldn’t get out, and then I was on hold forever”
Which one are you? Here is a tip; “If you try to rush through a telecom system purchase and to save time you would rather skip this step, SAVE YOUR MONEY! Once about every ten to fifteen years you have the opportunity to vastly improve an integral part of your business. Do It Right!
Mistake # 9 – Insufficient Connectivity Evaluation
When making a major change to your Telephone System you will want to review your current services. The key to making an informed decision is to know what services you currently have and how much you pay for each of them.
You will need to evaluate which new services are available to you in your geographical area and get pricing for them as well.
Finally you will evaluate the technology that is available with the new telephone systems you are considering that were not part of your old system. You may want to consider a T-1 PRI for voice traffic. Perhaps you want to consider VOIP telephone services or you have a system that is IP based or has an IP based component. If that’s the case you will want to consider your bandwidth connectivity between sites and if the new telephone system requires QOS (Quality of Service) to function properly.
This item is a big one. It is not uncommon to find the cash, in the form of monthly savings, to pay for your new telephone system.
Mistake # 8 – Insufficient Training
When investing a huge amount of money into a new telephone system, the proper training of your entire staff on how to use it is essential. Unfortunately this part of the process is commonly overlooked. Overlooked by management because their staff can figure it out on their own or because the installation vendor charges extra for training, we don’t need it. Sometimes it’s overlooked just because no one thought about it.
A well trained staff is the difference between operating efficiently or operating in slow motion. Proper training will allow you to take advantage of your new system’s efficiencies immediately.
System administration training is often not offered by the installation vendor, why? For every change to your system, even simple adds, moves, or changes the vendor will charge you each time they are called. This can become very costly to your organization. Insist on having at least one person within your group trained on administration functions.
Mistake # 7 – Substandard Installation
Insist on visiting a project of like size with a like industry that was completed by the installation vendor you are considering. Make note of the quality of the work completed. Is everything properly labeled? Interview several people at that site to determine their level of satisfaction and get a full understanding of their installation process.
Take Pictures! If your installation when completed looks nothing close to this one you have the right to ask why. Can you see a ground wire connected to the system? Ask them to show you the lightning protection (if there is no lightning protection, do not use this vendor). Lightning is the number one reason for critical system failure.
Verify that the system is powered via ups (uninterruptible power supply) with line filtering capability. The bottom line is that every vendor will try to convince you that they do a good job. Take the time to check it out.
Ask the vendor to provide you with their testing policy. Then look at the records for this job to see that it was followed. That will tell you very clearly who you are dealing with.
Mistake # 6 – Not Having a Clearly Defined Ongoing Maintenance Agreement
If you’re not paying close attention, this one can cost you a lot of money. There are a few things you need to be aware of when entering into an ongoing maintenance contract.
First is the term. In the ever changing world of technology, it’s usually not a good idea to enter into a multi-year contract for services such as Telephone Company services, Bandwidth, and Long Distance Services. Make these as short a term as possible.
The term for the Telephone System and peripheral equipment however sometimes offer huge discounts for multi-year contracts. It’s fairly safe to say that if you recently purchased or are now purchasing a new telephone system, recording system, call center, or call accounting system that you do not intend to replace it for several years. If you can budget for it, take advantage of these savings which sometimes exceed 30% per year.
Second is to know what your maintenance includes. Some vendors include all service work, some do not. Some vendors include automatic software upgrades that will always keep you at the latest revision. Some agreements include a mix of services along with equipment warranty items.
What is the “Upgrade” policy of the vendor and manufacturer? Take the time to understand these agreements. A mistake in this area could cost you more than the original price of the entire system!
Mistake # 5 – Not Using the Right Consultant
Using a consultant has tremendous benefits. If you don’t hire the right one it could be catastrophic. What should you look for?
The first rule is to NEVER hire a consultant that also sells equipment. He is obviously biased in his opinion and will be specifically looking for reasons to sell his equipment to you.
Interview and make sure that the consultant is qualified in the area you need him to be. For instance, if you need a new PBX for your operations and want to explore IP Telephony, you should not hire a consultant that comes from the used equipment industry.
Find a consultant that is well rounded. Look for a consultant that not only does Analysis, Consulting, RFP Management, and Project Management but also belongs to associations, lectures on telephone related topics or teaches technology courses at a local College or University.
You may not require all these services but this person will be more knowledgeable and most likely more efficient.
Finally check references. That goes without saying!
Mistake # 4 – Overlooking Disaster Recovery
Disaster Recovery means different things to different businesses based on their specific needs, for instance if you are a catalog warehouse that takes 92% of their business from forms off the internet you are more flexible to an outage than a police station or a bank would be. So the first thing to do is identify what an acceptable outage level is to your organization. Then work off that benchmark when designing your Plan.
Some telephone systems can operate on multiple bandwidth platforms, satellite systems, or public switched telephone lines. Make sure you know its capabilities.
Some systems have built in redundancies and failovers. Know what they are and how they can be incorporated into a voice recovery plan.
If you are using an IP based platform, the disaster recovery plan must include the network it resides on. Because of the complex issues surrounding Disaster Recovery, it is always a good idea to hire a professional even if you only have him look over a plan you came up with on your own.
Mistake # 3 – Making Your Decision Based on Lowest Price
When all the apples are just alike, always buy the cheapest one. When looking at Telecommunications Systems that is a big mistake!
Telephone systems can, and will if used properly, increase your companies’ efficiency thereby increasing your profitability. They can provide you with a greater “up time” because of built in redundancies that also increases your bottom line.
Especially in telecommunications, cheaper is not always better!
Mistake # 2 – Not Choosing the Right Vendor
You could find the best product solution for your organization but if you choose the wrong Vendor you will still be dissatisfied. The Vendor you choose is responsible for ultimately seeing your project through completion. There are several areas where this process can go wrong.
• Check out the Vendors financials – A Vendor that has other worries will not be focused on your specific project.
• Check out the Vendors references – Get as many as possible. Don’t specifically listen to what these references say, pay closer attention to what they didn’t say. A person who is really sold on the treatment they received by a vendor will brag about them. After all they were the one’s who made this decision. It’s human nature for them to let you know how smart they are. If you don’t get that type of response, ask more questions. The truth will ultimately be exposed.
• RFP – Don’t skip the RFP process. If done properly it will provide you not only with the detailed information about a Vendor but will compare them to the other vendors you are exploring. You will most definitely see some glaring differences.
• Personality – The Vendor you choose will not only be involved in your project but will be involved throughout the life of your system. You will become partners and will work together for years to come. It’s important that you share the same views on how you expect a relationship with your Vendor to work. Make sure you get beyond the sales rep. Meet the Service Manager or even a couple of the technicians.
• Qualifications – How long have they been selling this specific product? Are their technicians and sales reps certified? Ask them why they feel they are better than the other candidates.
• Contingency – Ask yourself, “What happens if this company goes out of business”. Is there a contingency plan? Are there other Vendors in the area who can service my equipment? Do any service agreements carry over to the new company? Your primary goal is to see that your system is being services no matter what. As you progress through these steps, a clear solid choice will emerge.
Mistake # 1 – Not Choosing the Right Product
Just because you found the best Vendor for your project, doesn’t necessarily mean that they are the ones who are selling the best product.
What is the best product? Ultimately you are the one who makes that determination. After going through the steps outlined above, you are now a quasi expert in Telecommunications. You not only understand how your business communicates today but you are informed of the technology that’s available to help you communicate more effectively in the future. You know the systems that are available and the features offered by each one and you have met with and know the people involved with Vendor.
Too often people are swayed by factors that remove the decision maker from his ultimate goal; “Finding the right product, at the right price, with the right vendor, that best fits the needs of my organization” This focus can be derailed by several issues you may not even know is happening;
• Perhaps the sales representative for Vendor “B” is very professional. Keep in mind that the person you are talking to may be the only one employed by that vendor that has any detailed product knowledge. After all his JOB is to get you excited about his products and services.
• The consultant may want to steer you in a specific direction. Although it is his job to see that you have all the information you need to make an informed decision, it’s up to you to verify that his recommendations are impartial. You should ask if the consultant has a history with any of these vendors or product manufacturers.
• Sometimes focus is lost due to one specific very sexy feature that the other suppliers do not offer. This may be a feature that only one or two people within your organization will actually use. So be sure the rate the value of this feature over the whole group.
Your Telephone related expenses are, next to your payroll and real estate, the single largest expense within your company. Too often that is overlooked or dismissed as just a cost of doing business. The telephone system is then looked at as just an expense. To the contrary the telephone system should be viewed as a business tool. One that can increase your efficiency, save you a ton of money, or give you the upper hand against your competition.
This is one area where cutting corners or bypassing the process can really get you into trouble. For more information about avoiding these mistakes when preparing for your upcoming project call 800-803-2186.
Steve W. Allen - Copyright 2006 All Rights Reserved
