Before the Dawn of IP Telephony - Part 10Return to the development of VoIP products (1998)
These contents translated a serialization article carried by ITPro IP telephony ONLINE published by Nikkei Business Publications, Inc. Jump to the original (Japanese).
Shinji Usuba
General Manager
eSound Venture Unit
Oki Electric Industry Co., Ltd
After the development of the first product, the author had moved on to another project. However, he held a strong desire to return to VoIP product development after feeling the reaction during the presentation at ISS.
Photo 1 : BS1200, the second VoIP gateway model
In February 1998, five months after the presentation at ISS (International Switching Symposium) held in Toronto, Canada, OKI released the BS1200 (photo 1), the new VoIP gateway model. It was the successor of BS1100, making its debut as VOICEHUB. Starting with this model, implementation into the corporate network market shifted into high gear.
About this time, equivalent products began to appear mainly in the U.S., and we were able to hear the opinions from implementations among leading users. Our BS1200 was appraised highly in specialized magazines such as Internet Telephony in the U.S., and it received a number of awards (photo 2). Fortunately, the reputation began to spread within Japan that it can be sufficiently used as a viable commercial product.
Photo 2 : BS1200 was appraised highly overseas
A number of awards was received from Internet Telephony, Network World, etc.
I was happy that a suitable market referred to as VoIP gateway was opened, and that our product was used by many customers. On the other hand, I was feeling left out at the time since I had moved to another development project, and not VoIP gateway.
At ISS, there were various reactions. But I was certain that there was also a positive response and felt strongly that now is the time to develop VoIP gateway. I also firmly believed that VoIP products would become popular. With such strong emotions, I strongly requested my return to the development of VoIP gateway to my supervisor. And two months later, my wish came true — just like that. This was due to a major change in OKI's in-house environment.
Favorable wind with new CEO
In the middle of April 1998, there was an announcement that a new CEO was being appointed. This refers to our current President & CEO, Shinozuka. Since then, the atmosphere at OKI changed drastically. The new CEO set a clear vision and quickly promoted reforms. The changes we saw were nothing we had ever experienced.
Simply speaking as a single engineer involved in VoIP since I cannot get into managerial theory here, there seemed to be more understanding among in-house personnel as VoIP was raised as an important field for devoting our efforts. By this time, I had returned to the development of VoIP gateway. In addition, the promotion of VoIP operations allowed "human integration" or the interaction among personnel in the Information Department and Communications Department that was simply not possible in the past.
There is no mistake that this human integration accelerated our VoIP product development. Incidentally, I spent a few years sitting at a desk next to Manager Yamamoto of the information field who designed the card-type PC in Takasaki, Gunma Prefecture, where I frequently visited and received help. Sharing the same office with Yamamoto was something I never would have expected.
Return to the development of VoIP gateway
The mission upon my return to the development of VoIP was to strengthen the product lineup. In order to lead the market, we needed to introduce products into the market on a continuous basis. My role was to manage the lineup. Different from when I was developing VOICEHUB, I also played a role of a manager.
I first started with the development of a model with a larger capacity. By this time, there were many VoIP gateway products in the market from overseas vendors. Models with larger capacity were also being released. I felt that we could meet a variety of needs by adding a model with a larger capacity to the BS series, which I had my absolute confidence in when it came to voice quality.
But reality is harsher than it appears.
Product planning proceed with difficulty
Although we had settled on a development theme of VoIP gateway model with a larger capacity, we immediately reached a dead end when entering in detail the product planning stage. In all honesty, this was due to the fact that we had no way of making decisions if such products will sell, or even if such markets existed.
Although the market for small line models was on the rise, we could not obtain enough references to hold a product planning meeting for determining availability of business and sales concerning VoIP gateway models of larger capacity. As a person responsible for development, I presented plans to the Planning Department a number of times. However, we could not get the approval of the Sales Department and others because the market simply did not exist and sales were unclear.
The debate seemed to go back and forth a number of times. Will the product sell if we create a market? Are there demands to begin with? We were in a deadlock, with no answer. Our development team felt stagnated. And I didn't want it to end as a mere technological development. I wanted to create a VoIP market, introduce products one after another into the world and lead the market we have created. Wasn't the reaction at ISS real? Irritation began to fall upon us.
CEO's major commodity determination meeting saves VoIP
Things took a rapid turn at the major commodity determination meeting. Impossible to imagine in the past, the CEO himself determined the product planning. All the agony we went through to determine commercialization was decided in only one day by the CEO.
I believe the future of this product and the value of strengthening the lineup of VoIP products were recognized. When I heard about this from the person responsible for planning in the Operations Department, I felt that we have moved a step toward commercialization and that the company has changed. There was never this much speed. This decision allowed us to go straight to the product development of the large-capacity model and preparation for commercialization. This later triggered OKI to release VoIP related products one after another.
Then, we stumbled unexpectedly during the commercialization. First, we needed a product name.
... To be continued
