Product strategists in the PC industry are gearing up for 2012 to be the year of the “ultrabook” — very thin, very light laptops, usually with solid-state drives (SSD), that compete with Apple’s MacBook Air — such as the Asus Zenbook and Lenovo U300s. We agree that ultrabooks’ lighter, thinner form will appeal to many consumers. Already, 21 percent of U.S. online consumers say they’re interested in owning one, according to a Forrester Research survey fielded in September. But we see the ultrabook as an evolution of the laptop rather than an entirely new form factor. So what is the next big thing in consumer computing?

The “next big thing” is likely to be many things — we anticipate accelerating form factor diversification beyond the desktops, laptops, netbooks, tablets and smartphones we have today, as we advance deeper into the Post-PC Era. Based on what we see in research and development labs, new products beginning to come to market and gaps in consumer computing experiences, we’ve identified these five form factors as the best candidates for what comes next:

• Wearables: Wearable devices, or “wearables” for short, are devices worn on or near the body that sense and relay information. Many wearables, like the heads-up display (HUD) contact lenses in development at the University of Washington, are years from marketability. But other wearables are already available as consumer products, for uses such as communication and health and fitness. An increasing number of wearables in the health-and-fitness space interact with Apple iOS devices, such as the Lark Technologies vibrating wristband that doubles as an alarm clock and a sleep sensor; and BodyMedia FIT Armbands, which have four sensors to track activity, sleep and calorie intake. WIMM Labs, a Foxconn-funded start-up in Los Altos, Calif., has designed multifunctional wearables, based on Google’s Android software, that it will license to other companies.
• Embedded devices: We define embedded devices as physical objects that incorporate computing processors and sensors, excluding those worn on the body, which we classify as wearables. Like wearables, embedded devices are diverse in form, ranging from devices such as Livescribe smartpens that fit into your pocket, to LG Thinq refrigerators that sit in your kitchen. Embedded devices may or may not have a display — Livescribe pens don’t; the LG Thinq appliances do. Today, embedded devices are widely used in industrial automation and automotives, and they have emerging consumer uses in home automation, entertainment and productivity.
• Surfaces: Surfaces are large interactive displays, which may incorporate multitouch, voice and gesture control, facial recognition, near field communication (NFC), quick response (QR) codes or other input/output mechanisms. Today, surfaces are found mostly in public places such as hotels (Microsoft Surface tables in Sheraton bars) and conferences and events (Obscura Digital’s custom multitouch video installations), as well as in education (interactive whiteboards) and news media (red state/blue state maps), but we see potential for additional uses, especially in retail and marketing. For example, retailers such as Victoria’s Secret have commissioned the design firm frog design to create interactive displays for their retail stores. In Seoul, South Korea, retailers use surfaces to extend their reach beyond their stores: Tesco Homeplus, the No. 2 grocery retailer in South Korea, built “virtual malls” in subway stations to reach more customers without building more stores. Commuters take pictures of QR codes under the groceries they want to buy, and the groceries are delivered to their homes.
• Flexible displays: Flexible displays are computing screens that can be rolled, folded or flexed. Flexible devices can take the form of personal devices, such as an e-reader, or larger surface displays, such as furniture or wallpaper. Flexible displays are likely the farthest from becoming commercialized products because of the lack of a defined use case or customer: Polymer Vision, a spinoff of Philips Electronics, promoted its flexible eBook Reader for years, but declared bankruptcy before bringing the device to market. HP has been developing printable Mylar displays that it imagines could be used for candy wrappers, armband computers for the military or living room wallpaper, but the displays are still several years from commercialization.
• Miniprojectors: Miniprojectors are small devices that project a larger image onto another surface or, in the case of holographic projection, into 3-D space. Miniprojectors can be combined with cameras that recognize gesture to become interactive, similar to the Microsoft Kinect for Xbox 360. Today, miniprojectors such as the Brookstone Pocket Projector are gaining in popularity as iPhone accessories. But they’re still niche products, as consumers must purchase them separately. Apple has already filed a patent to embed interactive projectors into its iPhones, iPads and Macs. Embedded miniprojectors would appeal primarily to information workers, but there could be broader consumer uses as well, such as impromptu photo slide shows or YouTube viewing in a group.

It’s easy to read about computing wallpaper, or contact lenses with embedded heads-up displays, and think that these form factors have no bearing on what product strategists are doing today. But product strategists who see what’s coming can anticipate disruption — or even innovate and become disruptors themselves. As you think about what’s coming in 2012 and beyond, know that none of these devices will operate in isolation. The most successful products will work with other products — for example, wearables that talk to smartphones and TVs; surfaces that are activated by the presence of your smartphone. We’re living in a multidevice, multiconnection world, and the best experiences will be those that work across devices and platforms. In that sense, the next phase of the Post-PC Era doesn’t look so different from today.

Sarah Rotman Epps is a senior analyst at Forrester Research, serving consumer product strategy professionals. Follow her on Twitter at @srepps

Tucker is a 13-year veteran of Sun Microsystems whose last job was as Sun’s CTO of cloud computing. He was also VP of the AppExchange at Salesforce.com. He’s also known for “Lew’s Law,” which he describes as more of an informal observation about how far the cost of computing can realistically fall.

I caught up with him last week in New York City to talk about what Cisco, long the powerhouse of networking, plans to do in the cloud.

NewEnterprise: First off, what is Lew’s Law?

Lew Tucker: It’s just an observation, not a real law, that the price of computing will never be free, because it requires energy to compute. Computing is really about changing the state of physical bits, and that requires energy. It’s great that we’re driving the costs down. Moore’s Law is hammering the costs. But there is a lower limit. Right now the dominant cost is around managing software, operations and everything else. So we can take a lot of those costs out through automation.

NewEnterprise: When I think of Cisco I think of industrial-strength routers and switches. How do you get from there to cloud computing?

LT: Eight months ago I thought the same thing. I was with Sun for many years and then left to go to Salesforce.com to do software as a service. I became very enamored of the Salesforce model. I came back to Sun to build the Sun Cloud, which was to be a direct competitor to Amazon Web Services. I was an Amazon user myself and I loved how you could so easily spin up as many servers as you wanted without having to buy them, configure them and so on. Building a cloud is another thing entirely. When Cisco called me, I said to them, “You’re about routers and switches and I’m all about complex distributed computing systems.” And Cisco said they were really about networking and making distributed systems. I started digging into it and realized there was a really unique position at Cisco if you think of cloud computing as a fully automated system with different elements. Some of those are networking elements, and some of those are integrated boxes with computing and storage and networking all in one. Some are networking services.

NewEnterprise: When you think about how cloud computing works, you really can’t do anything without fast connections between one system or another, which is something that Cisco knows very well.

LT: The network has always been a shared piece of infrastructure. There are a lot of different applications running on different servers that are trying to reach either each other or their endpoints. So there’s an awful lot that’s going into the network to make that happen in a fair and efficient way.

NewEnterprise: So what hardware is Cisco building here?

LT: We build pre-integrated compute, storage and networking that we’re calling our Unified Computing Systems. You can buy a rack of these systems, and they’re driven by a set of APIs [application programming interfaces]. We’re not alone in that. Hewlett-Packard does something similar. Then the customers add in their own preferred storage environment, like EMC or NetApp, or they can build their own.

NewEnterprise: What kind of use cases are you seeing in companies? What are your customers asking for right now?

LT: Right now what they are asking about is collaboration services, the integration of video and voice and calendaring and messaging. We’ve seen consumer services like Facebook change what people expect at the office. We have a collaboration product called Quad that looks just like Facebook. WebEx is a Cisco service. We’re working on offering that as both a hosted form and one that runs inside the customer’s own environment.

NewEnterprise: So there are a lot of cloud providers out there already–Amazon, Google and Microsoft, which has its Azure platform. They’ve already deployed their services and have relationships with vendors. How do you see the market shaping up, and what is Cisco’s place in it?

LT: I think there’s going to be two or three large cloud providers, but then there will be many smaller ones who specialize in delivering specialized services. Take health care. In that industry, groups of companies are going to get together and offer a HIPAA-compliant cloud. You’ll also see something similar happen around financial services. Those are two industries that have very specific needs. The cloud will be dominated by a few large providers for sure, but there will also be many specialty cloud providers.

NewEnterprise: You’ve been on the job about six months. What have you learned so far?

LT: I’ve learned that there’s an amazing amount of technology within Cisco. It has the largest concentration of network engineers in the world. Part of my job is to go and align our products and roadmaps with this future world that we’re moving into and to uncover a lot of the new approaches to how we solve different networking problems. I’m an engineer, and I like nothing better than being in a room with a bunch of other engineers with a whiteboard as they all battle it out. I’ve also learned that building cloud infrastructure is a lot harder than everyone thought.

HP today said it will reduce its employee roster by 3,000, or one percent of its workforce, over the next few years. Nine thousand workers will lose their jobs, with 6,000 new staff to be hired in the same period.

Evidently, the completion of HP’s integration with EDS, which it bought in 2008 for nearly $14 billion, has made the move necessary. And the continuing automation of the company’s computer services business has made it possible.

“We think the next 5 to 10 years will be all about automation,” Ann Livermore, Executive VP of HP’s enterprise business said during a conference call about the ugly news this morning. “These changes will allow HP to reinvest in further growth….We have a chance to further accelerate our competitive advantage. This is a substantial opportunity for us and something that we think is a good opportunity for our clients as well.”

HP expects to take a $1 billion charge for the cuts and says it anticipates they will will ultimately generate the same amount in annual savings.

Industry analysts, at least in the case of the Altimeter Group, are ultimately becoming market catalysts.

With today’s news, this is of course, only fortified.

The Altimeter Group released a new report on social customer relationship management, and while analysts release reports all the time, this is different. The report is free to read and share under creative commons, and this is a big disruptor, one that reflects the socialization of information and the spirit of social media. By giving away insight, Altimeter ignites change and thus brings its report to life.

As such, the Altimeter Group is demonstrating how new models are needed to thrive in the social economy and concurrently putting into practice the ingredients of an effective social CRM framework.

The New Rules of Relationship Management

The essence of the new report by Altimeter’s R “Ray” Wang and Jeremiah Owyang is putting the customer first. While that seems like a simple principle, it’s easier said then done. The case the duo make is rooted, of course, in social media and the self-actualization of personal influence.

As the report notes in the beginning:

“Rapid adoption of social networking enables users to connect with individuals and communities who share mutual interests, increasingly leaving organizations out of the conversation.

Simply hiring more people to keep up with social marketing, sales, and support will not be sufficient, as consumers and their new channels will always outnumber employees. As a result, companies need an organized approach using enterprise software that connects business units to the social web–giving them the opportunity to respond in near-real time, and in a coordinated fashion.”

And indeed, they’re right.

Social media didn’t invent conversations, it simply amplified and connected them to audiences and the actions that are triggered as a result. With the right tools, and more important, mindset and resolve, we can now uncover these incredibly valuable, insightful and prominent conversations where and when they happen. Listening is only the beginning however. As in anything, we need a little less conversation and a little more action.

As the report notes, social CRM does not replace existing CRM efforts, it complements them with an outbound extension to connect with the very social beacons that shape and steer perception–those previously untouched with inbound-only infrastructures. Essentially the “s” in sCRM should be viewed as a verb…as in socialize. Actions speak louder than words and thus, sCRM transforms words and intent into action.

As the “godfather of CRM,” Paul Greenberg, notes, “We’ve moved from the transaction to the interaction with customers, though we haven’t eliminated the transaction–or the data associated with it….Social CRM focuses on engaging the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. Social CRM is the company’s response to the customer’s ownership of the conversation.”

The Socialization of an Entire Organization

The social customer is only one part of the equation. As any listening program will reveal, conversations map specifically to departments within an organization and as such, all units affected by outside activity will socialize over time. This is why I believe that over time, we should focus less on the “C” of sCRM and focus our attention, energy and ingenuity on the aspects of SRM–social relationship management.

The social Web is distributing influence beyond the customer landscape, allocating authority among stakeholders, prospects, advocates, decision-makers, and peers. SRM recognizes that whether someone recommended a product, purchased a product, or simply recognized it publicly, in the end, each makes an impact on behavior at varying levels. Therefore customers are now merely part of a larger equation that also balances vendors, experts, partners, and other authorities. In the realm of SRM, influence is distributed and it is recognizes wherever and however it takes shape.

“SRM is a doctrine aligned with a humanized business strategy and supporting technology infrastructure and platform. SRM recognizes that all people, no matter what system they use, are equal. It represents a wider scope of active listening and participation across the full spectrum of influence mapped to specific department representatives within the organization using various lenses for which to identify individuals where and how they interact.”

But we must begin somewhere and for many businesses, the evolution from CRM to sCRM is in fact, revolutionary.

After months of study and interviews with over 100 organizations, Altimeter Group identified 18 use cases for Social CRM to help businesses assess, adapt, and create new programs and processes to socialize their brands.

As the report notes, social CRM programs start at the departmental level, but require corporate support to transform fiefdoms into united efforts. The challenge lies in mobilizing and organizing resources around distributed conversations and building the connectors that link CRM systems to social networks. And, organizations must set priorities based on market demand and technology maturity.

Customers have already migrated toward new channels and in the process, companies that are not in pursuit are quickly falling behind. Relationships between organizations and customers might be better defined simply as “relations” as the existing framework was traditionally optimized around the organization and not the customer.

“Traditional CRM projects have failed to grasp the complexities of the customer-company relationship. Though these CRM programs started out with the goal of providing a single customer view and 1:1 relationship management, early efforts quickly refocused on automation of front-office tasks and improving management visibility across marketing, sales, service and support. Because these programs have often failed to support the front-office worker’s needs to manage relationships, internal adoption halted as users grew to resent, and in some cases revolt, against CRM.”

To begin at the beginning, businesses must deploy social CRM for business value and not get caught up in the hype of Twitter and Facebook. We have to go where our customers seek, discover, and share information. Alitimeter suggests focusing on bite-sized entry points as today’s tight budgets, limited resources, and little time will ensure that companies get the most bang for the buck initially. (Click graph below to enlarge.)

In the report, each one of the 18 use cases brings definable metrics that should be incorporated in each Social CRM program.

- Begin with the end in mind

- Metrics should be aligned with an organization’s entry points

- Quantify the baseline and determine the effort

- Adjust ROI targets to align resources with efforts to move the needle

- The goal–drive business value

The 18 recommended use cases are organized in seven categories and in order of operations. As observed, most organizations start their initiatives by building out the “5 M’s” and deploying a customer insight program that matures with experience and earned intelligence. I previously discussed the maturation of social media infrastructure in business usually evolves in at least 10 stages. (Click table below to enlarge.)

Social Customer Insights form the Foundation for All Social CRM Use Cases–Everything begins with listening

1. Social Customers Insights

Social Marketing Seeks to Achieve Customer Advocacy

2. Social Marketing Insights

3. Rapid Social Marketing Response

4. Social Campaign Tracking

5. Social Event Management

Social Sales Enables Seamless Lead Opportunities

6. Social Sales Insights

7. Rapid Social Sales Response

8. Proactive Social Lead Generation

Social Support and Service Drives Sustainable Customer Satisfaction

9. Social Support Insights

10. Rapid Social Responses

11. Peer-2-Peer (P2P) Unpaid Armies

Social Innovation Streamlines Complex Ideation

12. Innovation Insights

13. Crowd-sourced R&D

Collaboration Reduced Organizational Friction and Stimulates Ecosystem

14. Collaboration Insights

15. Enterprise Collaboration

16. Extended Collaboration

Seamless Customer Experience Sustains Advocacy Programs

17. Seamless Customer Experience

18. VIP Experience

The Customer (R)evolution
The methodologies, systems, and people that entwine CRM are unquestionably forcing a historical (r)evolution from the outside in. As customers earn prominence online and ultimately in the marketplaces they define, CRM is far more consequential to the prosperity and relevance of businesses, than perhaps ever before.

This is about earning a prestigious position in the hearts, minds, and ultimately, decisions of customers, prospects and those who affect their actions, today and tomorrow. Essentially, with the socialization of media and the redistribution of authority and influence, we are competing for the future simply by listening, responding, learning and adapting.

Social customers are disrupting the balance of power and actively exerting their new found eminence within every social network and community that thrives off of shared experiences. The socialization of CRM is effectively measured by the dedication of resources and resolution the organization commits not just to social media, but to all existing channels where customers, influencers and prospects seek help.

Divided we share…united we change.

Rarely known for their technological savvy, law firms are nonetheless turning to technology to try to address clients’ cost concerns. Some are rolling out budgeting tools to keep better tabs on expenses. Others are using software to automate tasks.

“Firms are starting to recognize that clients are not willing to pay for a custom-made suit when all they really need are jeans and a t-shirt,” says Jeffrey Carr, the general counsel of FMC Technologies Inc., a Houston-based oil services and technology firm.

One longtime gripe about law firms is that their costs are hard to predict. Typically, firms bill by the hour, and they often are hard-pressed, at the inception of a matter, to estimate how many hours they will take to complete assignments.

Read the rest of this post on the original site

Financial terms, first reported by The Deal, were not disclosed. That said, when rumors of the acquisition began circulating in October, the purchase price was said to be $60 million.

Writing in a company blog post, Microsoft corporate VP Brad Anderson said Opalis is an essential piece of Redmond’s “dynamic data center initiative.”

“This deal brings together the deep datacenter automation expertise of Opalis with the integrated physical and virtualized datacenter management capabilities of Microsoft System Center. I believe Opalis’ software together with the System Center suite will improve the efficiency of IT staff and operations, and customers will gain greater process consistency. Opalis’ software captures the IT processes, in a documented and repeatable way, which can be run over and over again. These capabilities will be added to Microsoft System Center to help customers automate complex IT processes, increase cost savings and shorten timeframes for IT service delivery across physical, virtual and cloud computing environments.”

These boasts grew less frequent in recent months as the company’s hiring binge drew to a close, then switched into reverse when AOL announced it would need to shed a third of its staff. Meanwhile, AOL’s plans to inject automation into its content factory freaked out both employees and outsiders.

So the company’s most recent hire, announced shortly before AOL (AOL) separated from Time Warner (TWX), may help soothe some frayed nerves: New York Times (NYT) veteran Saul Hansell, who will run AOL’s new Seed.com content-creation platform.

But what does that actually mean? Is Hansell going to be running “AOL’s News Borg,” as Gawker put it? Or something less ominous?

I talked to Hansell yesterday and the answer is…not really clear.

Hansell, who spent 17 years at the Times, can’t spell out exactly what he’s going to do at AOL because he’s not exactly sure himself. He says he reached out to AOL CEO Tim Armstrong when the paper announced its most recent round of buyouts in October, and then he and the company went about creating a job that made sense for him.

But beyond his new title, “programming director,” a lot of what Hansell will do at his new gig is do is up in the air. The positive spin: That’s okay because uncertainty is a way of life at a start-up and AOL is in many ways a company that has to reinvent itself on the fly, just like a start-up. You can fill in the less positive interpretation of this yourself.

Hansell does have some big-picture ideas about AOL’s ability to combine its audience, workforce, technology and ad sales to produce a next-generation publishing platform. And in the interview, he offers a very nice parable about visiting Amazon’s (AMZN) warehouse, where technology and humans coexist quite nicely.

Okay. But what about the robots he’s supposed to be in charge of? “I don’t know anything about the robots,” Hansell says. “I haven’t gotten there.”

Anyway, Hansell was a good sport about letting me shove a Flip camera very close to his face, and he can tell his story much better than I can. So here you go:

]]> http://allthingsd.com/20091211/aols-newest-hire/feed/ 0 http://allthingsd.com/20091013/ad-giant-publicis-tells-publishers-to-throw-bodies-at-the-fake-web-ads-problem/ http://allthingsd.com/20091013/ad-giant-publicis-tells-publishers-to-throw-bodies-at-the-fake-web-ads-problem/#comments Tue, 13 Oct 2009 12:12:27 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=12001 Last month, the New York Times (NYT) was attacked by hackers who bought fake Web ads from the publisher. And one of the world’s biggest ad companies says that won’t be the last assault.

Publicis, the giant French ad holding company, has been warning Web publishers to be “hyper-vigilant” about other bogus ads like the ones the Times mistakenly sold, which were purportedly for Vonage (VG) but were actually designed to distribute malware. Publicis, whose units includes Starcom, Digitas, Optimedia, MediaVest, Zenith, and Spark, has been sending out letters warning publishers to be wary of the rogue ads, which it describes as an “industry issue.”

The catch: It appears that the only way to combat the attacks, at least in the near-term, is to do something that runs counter to industry trends: Throw bodies at the problem. Publicis wants publishers to individually verify the ad orders they receive, which would be a nonissue for traditional media but is a problem for Web publishing, which increasingly relies on automation. Mediapost:

The incidents have exposed potential vulnerabilities in on online publishing security, and are causing advertisers, agencies and publishers alike to reassess the processes they use to conduct business, especially as they interact with an increasing array of third-party intermediaries–advertising networks, exchanges, etc.–many of which place insertion orders automatically and without human intervention. The solution, as the Times’ and Publicis’ new policies suggest, is to reinsert human interaction into the process–at least for the time being.

Whoops. That whole thrust of Web publishing is get humans as far away as possible from buying and selling decisions: The ad exchange that Google (GOOG) launched last month, for instance, is designed to handle those tasks in milliseconds. Now think about how long it takes to pick up the phone to actually confirm that ad buyers are who they say they are [shudder].

It’s possible that this is simply butt-covering on the part of Publicis (these attacks have been out there for quite some time) and that this will blow over soon. But I don’t think so. Which means the ascent of Web ads may slow down, just a bit, as the industry figures out just how many humans it will take to fight the problem.

]]> http://allthingsd.com/20091013/ad-giant-publicis-tells-publishers-to-throw-bodies-at-the-fake-web-ads-problem/feed/ 0 http://allthingsd.com/20090428/new-tellme-mobile-product-to-try-to-help-microsoft-fight-the-iphone-with-voice-power/ http://allthingsd.com/20090428/new-tellme-mobile-product-to-try-to-help-microsoft-fight-the-iphone-with-voice-power/#comments Wed, 29 Apr 2009 04:01:20 +0000 Kara Swisher http://kara.allthingsd.com/?p=12959

Tellme, the voice services subsidiary of Microsoft, is announcing a “one-button” voice access for Windows-enabled mobile phones, as well as some new technologies to improve call automation for customer service centers.

Aiming at smartphone users who might prefer to use voice over the Apple (AAPL) iPhone’s popular touch, tap and swoosh features, Microsoft (MSFT) is trying to differentiate its mobile offerings.

“Unlike other voice-based services, Tellme is the first to allow people to press one button, say what they want and get it, whether that is to send a text, make a call or search for information,” said the company in a press release, which noted the service would be available in the fall on WIndows mobile phones.

Here is a video of Tellme GM Mike McCue, showing off the new one-button service:

And, here are the full press releases:

MICROSOFT’S TELLME ANNOUNCES ‘ONE BUTTON’ VOICE ACCESS TO MOBILE COMMUNICATIONS AND INFORMATION

More than 75% of Smartphone Users Prefer Voice and Would Buy Phones With Tellme; Free to Carriers and Handset Manufacturers for Windows Mobile 6.5 Phones

APRIL 29, 2009–Mountain View, CA–Today Tellme®, a subsidiary of Microsoft Corp. and pioneer of voice services, announced the first mobile voice service to combine content and communications, simplifying how people interact with their phones every day. Unlike other voice-based services, Tellme is the first to allow people to press one button, say what they want and get it, whether that is to send a text, make a call or search for information. Tellme has designed a unique version of this experience specifically for Windows phones due out this fall.

The new service puts many of the most popular phone functions behind a single button. Windows phone users just press the side button of their phone to:

- Send a text by saying “text” to open a text box, then speak the text message and send to call anyone in their contact list

- Initiate a call simply by saying “call” and then the name of anyone in their contact list

- Search the Web with Microsoft Live Search by speaking your request, such as “weather in San Francisco, California”, “Pizza in Kansas City” or “mother’s day gift ideas”

“Because it’s so intuitive, we believe there is a real opportunity for voice to materialize as the leading user interface for the phone,” said Dariusz Paczuski, senior director of consumer services at Tellme. “By bringing voice access to calling, texting and searching together we reduce ‘menu surfing’ on phones and make the convenience of voice more tangible for everyday needs.”

In a head to head comparison, it’s clear why people prefer voice over touch. For example, it requires four touches and more than 20 keystrokes to find a business with the Apple iPhone, while it only takes one button push and one verbal command to find the same business with Tellme. Tellme’s research shows similar results for other tasks, such as making calls, sending text messages and searching for content like traffic, movies, news and sports.

“For example, Sprint has integrated our voice access to the Live Search application on Sprint Instinct phones and subscribers love it,” continued Paczuski. “In fact, we’ve seen impressive adoption of voice with 3 of every 4 search queries being initiated by voice.”

Finally, in a recent study conducted by Sanderson Studios, more than 70 percent of respondents said that voice is superior to keypad or touch-based methods to perform some of the most popular mobile tasks. This includes looking up a business listing or location (78 percent), sending a text message (72 percent), placing a call (79 percent), getting information such as movies, weather, traffic or sports (77 percent) and getting directions (81 percent).

For the past decade, Tellme has been pioneering voice services for businesses and consumers, answering billions of calls every year and helping millions of people get the information they need simply by speaking a request. Now the convenience of voice is coming to Windows phones, bringing people closer to the things they want by providing easier access to more of the phone’s functionality. With Tellme, people using the latest Windows phones will be able to simply say what they want, such as “call mom” or “text Jim” or “pizza,” and results display on the screen.

Tellme will be available for free on Windows Mobile 6.5 phones in the Fall 2009 when the phones hit store shelves. Initially available in the Windows Marketplace for Mobile store, Tellme will also make the service available for free to mobile operators and carriers to embed ‘on-device’ for a voice experience right out of the box.

MICROSOFT AND TELLME DELIVER BENEFITS OF VOICE IN THE CLOUD TO CONTACT CENTER CUSTOMER SERVICE

Speech Innovations Improve Call Automation, VoIP Infrastructure Shrinks Telecom Costs

APRIL 29, 2009–Mountain View, CA –Tellme®, a subsidiary of Microsoft Corp., today announced three core speech and network innovations that advance its platform for cloud-based voice services. The new technologies significantly reduce costs for enterprise customer service while enabling a faster, smarter caller experience. These advancements include the roll-out of a VoIP carrier service that reduces customer transport costs, advanced speech services that improve automation of customer service calls, and a new ‘voice font’ technology that delivers a more natural text-to-speech experience.

The new speech services area a result of collaboration between Tellme and Microsoft’s Speech Components Group. These jointly designed technologies will be leveraged to advance natural user interfaces across Microsoft products to benefit billions of customers worldwide. Because Tellme operates as an on-demand service, the new capabilities are immediately available to enterprises across Tellme’s platform. In addition, Tellme is now using these technologies to power its mobile services, including the Windows Mobile 6.5 application announced today.

“Providing quality customer service is a top priority for E*TRADE. Tellme’s flexible platform has helped us unify our customer service experience across multiple channels and deliver improved performance year over year,” said Hartley Caldwell, Senior Vice President, Software Engineering at E*TRADE FINANCIAL Corporation.

“Our goal is to provide enterprises with technology that improves their customers’ experience but also affords them the ultimate financial flexibility when deploying voice services. From initial deployments we’re seeing impressive cost savings and results that we’re sure our customers will be excited about,” said Jamie Bertasi, senior director of Business Solutions at Tellme.

Saving Money on Operating Costs

Handling customer phone inquiries represents a multi-million dollar expense for many Fortune 1000 companies, with telecom being one of the largest technology costs. Now with carrier VoIP service, enterprises can extend their VoIP strategy to customer service calls and eliminate transfer fees, lowering the average per-minute cost 60% per call and reducing transfer fees by 100%.

Additionally, Tellme enterprise customers have another option to save significant money on telecom beyond the expensive maintenance of toll-free numbers: local number service. With the rising, widespread use of mobile phones, nation-wide caller plans lessen the need for consumers to use toll-free numbers. With the benefit of toll-free numbers diminishing, having an alternative local number can save costs without affecting the consumer experience. Now, Tellme’s VoIP service makes it possible for enterprises to use less expensive local numbers for their customer service.

Getting the Right Answer More Often, Increasing Automation

One of the biggest frustrations of speech services is that they don’t always understand the caller. Increasing the odds of getting it right makes the overall customer experience better, improving their confidence in using the system, and lowering the total cost per call to the enterprise.

Partnering with Microsoft’s speech team, Tellme provided tuning data from its billions and billions of calls and design expertise to develop new acoustic models, phonetic dictionaries and grammar products that increase the accuracy of every response. The teams built an “online adaptation” capability where the system can adapt to a caller’s acoustic patterns within the first three seconds of speaking. These new platform features make it possible to get the right answer to the caller more often.

Results in early deployments are impressive. With an average of $3 per customer service call handled by a live agent, a phone service handling 200,000 calls per day would save nearly $6 million per year for every 1% improvement in call automation. Trials of the new services with customer applications that handle millions of calls every week indicate an up to 2% increase in automated task completion, which translates to millions of dollars in savings every year.

Creating a Faster and More Natural Experience

Both the way customers request information and the way they hear the answer have been improved with two new technologies: expanded multi-slot recognition and a new ‘voice font’ called Zira.

Multi-slot technology makes it possible for callers to ask for information in a full sentence or phrase, such as “I wanna buy five thousand shares of Coca Cola” and the system listens for the relevant words, in this case “buy,” “five thousand shares” and “Coca-cola.” Then, if any information is missing or not understood the system can ask just for the specific word clarification without re-prompting for the entire answer, making the call faster and increasing the customer’s satisfaction.

In addition, Tellme, leveraging the Microsoft Text-to-Speech (TTS) engine, has developed a new custom TTS service with its ‘voice font’ called Zira. Zira has been created with a patented technique designed for consistency in voice quality and delivery that provides a more conversational experience. The Zira voice talent was coached by audio engineers to record popular phrases and words used in customer service requests. The Zira technology benchmarks close to actual human pronunciations–delivering the industry’s highest quality TTS service and reducing the expense of custom audio recordings for enterprise IVR.

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