A case study on the road to IP telephony: A company´s strategic decision to move toward the Next-Generation Network

Organizations are currently facing a critical decision with respect to their legacy telephone systems. Deploying IP telephony for voice communications is no longer a matter of “if” but “when” for any enterprise. Time-division multiplexing (TDM) systems are no longer a practical option for new enterprise telephony services because all telephony vendors are phasing out TDM systems in favor of those based on IP. Therefore, enterprises must decide when and how to deploy IP-based systems throughout their operations, with the pace of rollout being based on benefit, capability and cost. In this study, we will be analyzing Aramco Services Company (ASC) in its effort to migrate toward a “Next Generation Network,” since it currently has a traditional telephone system based on TDM that is expected to reach its end of life. In order to keep up with telecom industry trends in a way that is strategically aligned with its corporate objectives, ASC needs to develop strategies and plans that align with the core business objectives of the organization. After performing a strategic analysis by employing strategic management of technology tools and concepts, it is concluded that ASC should consider replacing its current TDM telephone system with a new IP-based system that will allow for full IP functionality and therefore put ASC in a position that will allow the company to realize economic benefits that are unmatched by other technologies and overcome the deficiencies associated with its current telephone environment.