DRIVING NEW REVENUE OPPORTUNITIES WITH CONVERGED SERVICES
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> DRIVING NEW REVENUE OPPORTUNITIES
> WITH CONVERGED SERVICES
Case Study
Convergence
> JB Hi-Fi Customer: JB Hi-Fi
Evolving from a single store 30 years
Challenge: Rapid national expansion and increased business communication
ago to a superstore network today,
requirements highlighted the need for a new telephone system as the old key
JB Hi-Fi is a large and fast growing
system was incapable of coping with the communication needs of increased staff
Australian home entertainment
and stores
product retailer focused on “cheapest
Solution: Nortel Business Communications Manager and Nortel IP Phone
prices, best brands” with a huge range
2002 delivering fully converged voice and data services, including voicemail,
of products. Sixteen new stores were
call centre, IVR, CTI and more, in one compact chassis with browser-based
opened between 2000 and 2003,
management
another five are planned for 2004,
with a total of 50 stores by the end Benefit: With centralised customer enquiry and direct dial capabilities as well
of 2005 as complete access to voice, email and fax messages from remote locations, costs
are cut significantly. The system meets all present and future communication
requirements with the added investment protection of a secure migration path“... the simplified The Challenge
In three decades, JB Hi-Fi has evolved from a single store in the Melbourne
network infrastructure
suburb of East Keilor to a 33-superstore network spanning most Australian
provided by the states and the Australian Capital Territory. At the heart of JB Hi-Fi’s success is
BCMs will cut costs a winning “discount warehouse” formula – leveraging a philosophy its website
describes as focused on “cheapest prices, best brands” and a “huge range” of home
significantly by
entertainment products. These span the entertainment spectrum, from home
connecting IP phones theatres and TVs of all descriptions to hi-fi speakers and digital cameras, as well
over our LAN wiring as car audio systems, over 150,000 CD titles and every major studio DVD film
release.
system. It will
streamline our network JB Hi-Fi is a large and fast growing Australian home entertainment product
retailer. Sixteen new stores were opened between 2000 and 2003, another five are
management and
planned for 2004 and, according to IT manager Geoff Craig, “We’re looking at
extend connectivity 50-odd stores by the end of 2005.”
over the IP network to
It was this rapid national expansion and the subsequent increase in business
stores nationwide, no communication requirements that highlighted the need for a new telephone
matter how many more system at JB Hi-Fi’s head office in Brighton, Victoria.
we open.” “We were using an old key telephone system that was simply incapable of coping
with the communication needs of the 50 staff located at head office,” said Craig.
Geoff Craig
“Not only did attempts to expand the key system continue to fail, it offered no
IT Manager
JB Hi-Fi voice mail, unified messaging, automated reception or centralised remote-to-port
capabilities, as well as no possibility of evolving to voice over IP, a technology in
which we were very interested.”
What attracted Craig to IP telephony was its ability to carry voice traffic over
JB Hi-Fi’s data network by linking branch offices to headquarters across an
infrastructure that would eliminate the cost of long distance calls and deliver the
efficiencies of a single, network-wide coordinated dialling plan.
After evaluating submissions from a number of different vendors, JB Hi-Fi
soon settled on a converged branch solution based on the Architecture of the
Converged Enterprise (ACE), incorporating a Nortel Business Communications
Manager (BCM) voice/data system. In addition to meeting the retailer’s current
requirements – and providing a compact, all-in-one platform for an easy and cost-
effective migration to IP telephony – the solution also included strong multimedia
call centre and wireless capabilities for future expansion.
This commitment to providing systems that can grow with customer requirements
– Nortel’s Evergreen philosophy – was one of the key factors in Craig’s choice of
supplier. The Evergreen approach protects a customer’s original investment byproviding quick and cost-effective pathways, such as memory cards or software
>Solution Snapshot
upgrades, to grow a system to meet the customer’s evolving needs.
Converged Branch Solution:
Implemented by Nortel’s channel partner Business Integration Solutions, the
Delivers a network
system quickly demonstrated its productivity and cost-cutting potential – so much
infrastructure that enables
so that it has already been extended beyond head office to include IP telephony
secure access to centralised
communications trials at a dozen of the company’s superstores. “Over time, we
network and application
are planning to migrate all existing stores to the new phone system, so they can
resources and the delivery
also take advantage of voice over IP,” said Craig.
of an array of services.
“This highlights one of the key features of our converged branch solution Unsurpassed features and
using ACE – that it can happen at a pace that suits the customer,” said Steve powerful applications that
Wood, President Nortel Australia and New Zealand. “Customers can adopt boost productivity and
an evolutionary or revolutionary approach, depending on circumstances, and improve customer reach
introduce standards-based elements of convergence at a time that fits with their
particular business objectives.” Architecture of the
Converged Enterprise:
The Solution A converged networking
The Nortel Business Communications Manager delivers complete, integrated environment to transform
and fully converged voice and data services, including rich and robust telephony enterprise networking
features, voice mail, call centre, interactive voice response (IVR), computer – making physical boundaries,
telephony integration (CTI) and much more – all in one compact chassis with network boundaries and
browser-based management for streamlined set-up and trouble-free operation. service boundaries irrelevant
or invisible
With BCM, JB Hi-Fi can now use the system’s Auto Attendant feature to handle
incoming calls via advanced Custom Controlled Routing (CCR) techniques,
deploy a 1300 number to centralise customer enquiry calls, and provide access to
Nortel CallPilot unified messaging system – allowing a user to listen to voice mail,
save or forward voice messages, view faxes on screen and forward them as email, or • Business Communications
even use Caller ID to go straight to a message for which he/she has been waiting. Manager (BCM) delivers
This technology also provides complete access to messages from remote locations small/medium-sized
and, via BCM, allows CallPilot voice mail services to be extended across an entire businesses and branch
network. offices the only converged
voice/data solution in
BCM also provides a complete, stand-alone solution for IP telephony, and JB
the industry, providing a
Hi-Fi has deployed Nortel IP Phone 2002 (previously known as i2002) Internet
choice of IP-enabled or
telephones at head office and at the superstores participating in the current IP
pure-IP strategy
telephony trial. The Nortel IP Phone 2002 phones will carry voice calls over the
local area network (LAN) JB Hi-Fi had earlier installed to support its computer
environment, eliminating the need to rewire head office or install new voice
lines in new locations. High- bandwidth connectivity between head office and
superstores is provided by a Telstra upgrade of JB Hi-Fi’s corporate wide area
network (WAN) to frame relay technology.“My biggest concern Nortel IP Phone 2002 Internet telephones have integrated switch modules
designed to split a single 10/100 LAN drop into two separate feeds into and
was dealing with
through the phone, supporting both voice and data. In addition, the module
some of the new automatically prioritises voice traffic over data transmissions for consistent
technologies from high-quality voice performance. Unlike digital handsets that must be hardwired
directly to a PBX, Nortel Internet telephones work anywhere on an IP network,
other companies. They
even over frame relay, ATM, cable or DSL links to remote sites.
were either computer
BCM is available in two different models: the BCM 400 for sites of 30 to 200
or network equipment
users as deployed at JB Hi-Fi’s Brighton headquarters, and the smaller BCM 200
manufacturers who for 10 to 20 users, installed at the 12 superstore locations in the IP telephony trial.
had moved into
Customer Benefits
telephony systems, With 12 stores still in the process of trialling IP telephony, most of the benefits
but Nortel was a long- delivered by the Nortel BCM convergence solution to date have been in the head
office communications environment.
standing telephone
system company that “In the past, we were never able to give any of our incoming callers a phone
number to directly dial one of our internal product managers, our buyers or any
had perfected the
member of our management team,” said Craig. “Now everyone has a separate
voice side and then phone number.”
successfully rolled out
Integrated voice mail is also delivering substantial benefits, with people “starting to
an integrated voice use voice mail as a direct means of communication,” Craig noted. “Staff members
and data system to particularly appreciate having their messages presented in email format, as well as
being able to access voice call, faxes and the like from anywhere in Australia.”
world markets.”
“At the same time, the simplified network infrastructure provided by the BCMs
Geoff Craig
IT Manager will cut costs significantly by connecting IP phones over our LAN wiring system.
JB Hi-F It will streamline our network management and extend connectivity over the IP
network to stores nationwide, no matter how many more we open.”
In addition, JB Hi-Fi is now beginning to implement BCM’s automatic reception
capabilities to save a lot of the employee-intensive work involved in answering
and directing calls that come into the company. Centralised remote support
capabilities are also proving popular with executives. “I can now actually log on to
any of the BCMs around Australia directly from my workstation in our Brighton
headquarters,” said Craig.
And just down the line for JB Hi-Fi are the full benefits of IP telephony. “Call
costs between Brighton and stores across Australia are going to be next to nothing
with voice over IP,” stated Craig. “With the BCM systems we’ve purchased, we’ll
also be able to introduce a number of additional capabilities if and when we wishto – capabilities such as virtual private networks (VPNs) for secure voice and data “Nortel was the only
communications, call centre applications and IVR systems.
company to offer
At present, the major focus for JB Hi-Fi’s IT team is the full rollout of IP a system that met
telephony capabilities to its 33 stores across the country. But Craig also has an
all our present and
eye on the future, and in particular on the wireless communications capabilities
possible with Nortel BCM technology. Although the organisation doesn’t have future communication
a need for softphones at the moment, Craig is currently exploring the potential requirements with
for wireless in-store communication, with conversations carried, virtually free of
the added investment
charge, across the company WAN – just as happens now with the Nortel IP Phone
2002 Internet telephones. protection of a secure
“Nortel’s vision for today’s enterprise is ‘Business Without Boundaries’ –
migration path.”
eliminating boundaries to efficiency, productivity and growth,” said Wood. “And Geoff Craig
this strategy is helping companies like JB Hi-Fi drive new revenue opportunities IT Manager
by leveraging the power of advanced voice, data and multimedia services.” JB Hi-Fi
Final Note
In reaching the decision that led to his selecting the Nortel solution over that of
other vendors, Geoff Craig spent “six or seven months actually looking at finding
the correct solution for our head office and then finding something we could also
roll out on an unlimited basis to our stores.
“My biggest concern was dealing with some of the new technologies from other
companies,” he continued. “They were either computer or network equipment
manufacturers who had moved into telephony systems, but Nortel was a long-
standing telephone system company that had perfected the voice side and then
successfully rolled out an integrated voice and data system to world markets.
“One of the things I most appreciated about Nortel was its Evergreen philosophy
– they had designed a system for the future,” added Craig. “I was looking for a
solution to roll out nationally, and I didn’t want one where, whenever I wanted to
grow it, I would have to go out and replace pieces of equipment.
“Nortel was the only company to offer a system that met all our present and future
communication requirements with the added investment protection of a secure
migration path.”Australia Korea Singapore
1 Innovation Road 16F, Haesung 2 Building 151 Lorong Chuan #02-01
Macquarie University Research Park, 942-10 Daechi 3 Dong, Kangnam-ku New Tech Park
Macquarie Park NSW 2109 Seoul 135-283 Singapore 556741
Australia Korea Singapore
Tel: 61 2 8870 5000 Tel: 82 2 3707 4600 Tel: 65 6287 2877
Fax: 61 2 8870 5222 Fax: 82 2 508 2006 Fax: 65 6380 8888
India Malaysia Sri Lanka
Salarpuria Adonis, Ground Floor Level 2, Annexe Block Menara Milenium Residential Accommodation Unit 60/3/8
#3/1, Old Madras Road 8 Jalan Damanlela, Bukit Damansara Sahasapura Housing Scheme
Binnamangala 50490 Kuala Lumpur Baseline Road, Borella
Bangalore 560 008 Malaysia Colombo 8
India Tel: 60 3 2080 8000 Sri Lanka
Tel: 91 80 5527 8000 Fax: 60 3 2080 8100 Tel: 94 7 533 1133
Fax: 91 80 5527 8080 Fax: 94 7 533 1134
New Zealand
Indonesia Sofrana House Thailand
Graha Paramita, Level 8 Level 16, 396 Queen Street 1768 Thai Summit Tower,
Jalan Denpasar Raya Auckland 1036 24th Floor, New Petchburi Road
Blok D 2 Kuningan Jakarta 12940 New Zealand Bangkapi, Huaykwang
Indonesia Tel: 64 9 309 9052 Bangkok 10320
Tel: 62 21 2553 5400 Fax: 64 9 357 0893 Thailand
Fax: 62 21 252 2250 Tel: 66 2309 5500
Pakistan Fax: 66 2309 5555
Japan Ground Floor, Evacuee Trust Building
Gate City Ohsaki, East Tower 9F Agha Khan Road, F-5/1 Vietnam
1-11-2 Ohsaki, Shinagawa-ku Islamabad 6th Floor, The Prime Centre
Tokyo 141-8411 Pakistan 53 Quang Trung
Japan Tel: 92 51 111 203040 Hanoi, Vietnam
Tel: 81 3 5740 1300 Fax: 92 51 220 6589 Tel: 84 4 943 7955
Fax: 81 3 5740 1852 Fax: 84 4 943 7957
Philippines
Wynsum Corporate Plaza
Level 29, 22 F Ortigas Jr Road
Ortigas Centre, 1605 Pasig City
Philippines
Tel: 63 2 580 5500
Fax: 63 2 580 5530
Nortel is a recognised leader in delivering communications capabilities that enhance the human
experience, ignite and power global commerce and secure and protect the world’s most critical
information. Serving both service provider and enterprise customers, Nortel delivers innovative
technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and
applications and wireless broadband designed to help people solve the world’s greatest challenges.
Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at
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Copyright © 2005 Nortel Networks. All rights reserved. Information in this document is subject
to change without notice. Nortel assumes no responsibility for any errors that may appear in this
document. (1st edition 2004. 2nd edition 2005)
Produced by Asia Pacific Enterprise Marketing Services.
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