Are unified communications an essential component for business transformation?
Adopted as a necessity by many businesses during the pandemic, unified communications can help meet other transformative challenges from decarbonisation to workforce well-being
Unified communications (UC) have enabled many businesses not only to survive but also to thrive during the Covid-19 pandemic by facilitating flexible working, reducing costs and improving productivity. For example, the accelerated move from in-person meetings and phone to video calls has brought huge changes and benefits to businesses. There are also new and emerging drivers for the adoption of UC by businesses, which feature an increasingly rich application of the technology as part of their business transformation.
There is an important role for UC to play in the digitalisation of businesses as many move from clunky on-premise to agile cloud-based solutions. However, businesses are also increasingly realising that UC can help with a range of other transformation objectives whether these are to meet decarbonisation goals, to support hybrid and mobile working, or to improve workplace diversity and employee well-being.
Digital transformation
UC are a crucial part of any digital transformation strategy. Effective communication channels (for example, voice, video and messaging) in a single integrated user interface gives businesses optimal opportunity to connect with customers and suppliers. UC tools can give staff a broad overview of the customer relationship in one location, helping improve insights, and to sustain and to grow customer connection and service – especially as more and more business is conducted remotely.
Cloud-optimised solutions can supplement these essential building blocks and enable businesses to integrate and manage the Internet of Things as they look to transform further through automation, the use of data analytics and robotics. Moreover, there is great potential for artificial intelligence to improve customer experience using applications such as chat bots, virtual assistants and augmented reality to personalise communication, increase their engagement and to offer business feedback through trend analysis. Businesses that successfully leverage these applications and avoid tools being dispersed will find that this can help increase innovation, streamline business processes and grow revenue. This can lead to the wider adoption of UC – and to upgrades to UC as a service (UCaaS) models.
New urban dynamics
There is a central role for UC in supporting sustainable solutions for urban environments, and the technology will underpin moves to decarbonise cities internationally (as identified in the recent Economist Impact study with Osborne Clarke). As long as infrastructure such as 5G or superfast-fibre broadband is in place for uninterrupted communication, UC can help business reduce emissions by enabling remote working and, in the longer term after the pandemic, reducing travel locally and internationally. Although there is a balance to be stuck with consequent increased building emissions from home and data centres.
Developments in UC features that improve employee agility, productivity and collaboration, together with the reduction in carbon emissions, are often far more important than traditional drivers for the adoption of UC technology (such as its cost-effectiveness compared with on-premise equipment). Although costs remain an important factor, priority is given to taking a positive look at how holistic communications can boost wider business strategies.
Fragmention and consolidation
The boom in UC during the pandemic and the wider ongoing transformation of business is driving mergers and acquisitions activity. In the UK, the market's evolution has been fragmented. End users have been purchasing their solutions from a large number of resellers and managed service providers that act as channel partners for an array of networks and technology platforms.
There has been large-scale consolidation across the UC arena funded by private equity and debt funds looking to capitalise on the opportunity. The consolidation has brought UC together with other services, such as IT support and cybersecurity consulting. This has allowed business customers to buy fully managed, turnkey communications, hosting and IT services, which can help further unlock business performance.
Security risks
Businesses undergoing transformation need, as always, to take account of the increased risks and ensure these are addressed so they do not override the benefits. One of the most important components of this is security, given the heightened cyber risk of cloud-based communication and the potential for those solutions to host considerable employee and customer data. Businesses procuring new solutions will need to ensure compliance with the General Data Protection Regulation standard of “appropriate technical and organisational measures” to protect personal data and, in the UK, providers will need to bear in mind security standards imposed on suppliers of electronic communications services in the Communications Act 2003.
Nevertheless, these risks can be managed and do not operate as barriers to the flourishing adoption and development of UC communication tools to support transformation in a post-pandemic world.
Connect with one of our experts
Eleanor Williams, Lead author Associate Director, UK eleanor.williams@osborneclarke.com +44 117 917 3630
Dr. David Plitt, LL.M. Partner, Germany david.plitt@osborneclarke.com +49 40 55436 4042
Mike Freer Partner, UK mike.freer@osborneclarke.com +44 118 925 2050
Xavier Pican Partner, France xavier.pican@osborneclarke.com +33 1 84 82 45 88