Speech Technology: Finally, a Competitive Necessity
Posted Jan 1, 2006

Innovative technologies that are eventually successful follow a typical timeline.

  1. The capabilities and markets are over-stated in early stages as struggling start-ups try to make a case to investors and the press, leading to over-hype and disappointment.
  2. The core technology improves, and several early applications are identified where the use of the technology is particularly needed and is cost-effective, providing a base for growing businesses.
  3. Core technology continues to improve, making possible more marketable applications, but moving out of niche markets raises platform compatibility and integration issues that slow adoption.
  4. The technology breaks through barriers on two levels—the performance of the core technology exceeds thresholds required for wide use and barriers to integration have been largely breached. Enough applications have been fielded that market skepticism and fear of being on the "bleeding edge" begins to fade.
  5. Growing markets and competition lead to consolidation and lower cost, as companies begin to compete over real market opportunities. Larger companies begin to flex their marketing muscle and increase customer awareness. The general press is often slow to recognize this stage because of over-optimistic past coverage.
  6. The technology becomes a competitive necessity in some applications and markets, leading to solid growth and widespread adoption. The speed at which this stage expands often makes it seem to those outside the business as if the technology has exploded onto center stage.

Having gone through most of these stages, speech technology is moving through the fifth level and entering the sixth. It is becoming a competitive necessity in many markets, driven by real advantages and business requirements. A few major trends:

Targeted Marketing, Call Centers, and Speech Technology
Marketing is undergoing a paradigm shift as conventional mass marketing becomes more difficult and fractionated. The growing profits of companies like Google and Yahoo signal the trend toward targeted marketing, where the consumer receives a message relevant to them and to their current buying interests. Both of those companies have hired speech experts, and it is likely that some company will launch a voice business directory assistance service or a broader telephone voice search and information service. Such "voice portals" will increase calls to conventional call centers, simply because call center numbers will be easier to find.

The long-term impact will, however, be much greater than a minor boost in call volume. The trend is certain to focus top management on the marketing and branding opportunities implicit in a voluntary call from a customer. At a minimum, call centers' priorities and budgets will begin to reflect a transition from being viewed as a necessary but regrettable cost center to being seen as a customer relationship enhancement center. The objective of making each call as short as possible will change to making the most of each call.

Adding to the call volume, the use of Voice over IP (VoIP) technology on PCs for customer service will grow, perhaps with the initial focus on click-to-call interactions. (Click-to-call was cited by EBay as one of the motivations for its purchase of Skype, a VoIP provider.) As phone services get less expensive (or free), calls to a company will be more comparable to Web visits—they will be numerous and encouraged.

Speech recognition will be required to handle the increased volume of calls economically and provide round-the-clock service while maintaining customer satisfaction; agents will be reserved for the most difficult tasks. The STM Buyers' Guide lists the companies that can help meet the challenge that higher volumes and new attitudes toward call centers will create.

Bill Meisel

Core Technologies
Once you determine you need speech technology, you have more choices than ever before. The core technologies you have available to you include:

Variations in these technologies include the platform on which the software runs, support for standards, supporting development environments, and other significant variations. Speech technologies are available in server configurations for telephone applications or for sharing across an enterprise. They can be standalone, running as a PC "desktop" application or as "embedded" software on a small device.

Buyers' Guide
The Buyers' Guide in this issue of Speech Technology Magazine outlines the way the marketplace has defined the practical use of speech technology. The categories provide a quick outline that can help you find the right vendor or vendors to support your needs.

Vendors are a good source of information as well as a resource for specific bids. They will, of course, tell you why their solution is best, but the criteria they use to do so can be useful in sorting out what is important in your specific case. Settling on the most important criteria for your application will make the process simpler than it appears. The result will justify the effort.

View the 2006 Speech Technology Magazine Buyer's Guide