SpinVox carcass laid bare in final accounts

Dragon's Den TV star Julie Meyer described SpinVox as "the first major technology success story out of Europe", but the company's final accounts show a business running at a huge loss, spending heavily, and with interest payments alone exceeding income.

The accounts also show that CEO Christine Domecq repaid the company a six figure sum.

Speech giant Nuance acquired the controversial British company - which dominated the business pages last summer - shortly before Christmas in a stock deal.

Although its executives bravely talked of an IPO, SpinVox's liabilities far exceeded its assets. The company listed current liabilities of £124m, including trade and other payables of £59.6m and borrowings of £64.3m.

Yet SpinVox booked just £7.8m in revenue for the nine months year ending 30 September 2009, reporting a staggering loss of £56.49m. In the nine months ending 30 September 2008, accounts reveal, the company posted a £45.25m loss on income of just £2.97m.

The cost of doing business was high, with SpinVox buying customers. In June, the company announced a deal with Telefonica to provide text-to-speech voicemail in 13 Latin American countries.

The accounts refer to an "intangible asset of £22.2m, in respect of the right to provide its service to a customer". This was to be amortized over the term of the deal. But the accounts added that "since the contract is at an early stage of deployment, management consider it reasonably possible that the net revenue under the contract may be zero".

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Nuance Study Finds Automated, Live Agent Preferences

Nuance Communications has announced the findings of a commissioned study conducted by Forrester Consulting on behalf of Nuance titled, “Driving Consumer Engagement with Automated Telephone Customer Service.”  

It found that consumers rate automated telephone customer service higher than live agents for certain straightforward interactions. 'In five out of ten posed scenarios, consumers preferred automated telephone customer service systems over live agent interactions for tasks like prescription refills, checking the status of a flight from a cell phone, checking account balances, store information requests and tracking shipments.

Consumers’ satisfaction with customer service leaves a lot of room for improvement, too, the study found: 'Only 49 percent of U.S. online adults report being satisfied, very satisfied or extremely satisfied with companies’ customer service in general.' 

And we're just used to it by now: Automated telephone systems are 'an expected and accepted customer service channel,' the survey found, with 82 percent of US online adults having used an automated Touchtone or speech recognition system to contact customer service in the past 12 months.  

Spinvox bought by Nuance for £64m

UK firm Spinvox, which converts voicemails into texts, has been bought by speech recognition company Nuance for $102.5m (£64m).

The deal is worth $66m in cash and $36.5m in stock, about a third of the previously rumoured $146m price tag.

Spinvox investor Invesco Perpetual had confirmed in September that Spinvox was up for sale.

In recent months doubts had been cast on how effective Spinvox's speech-to-text software actually was.

The company claims to use advanced voice recognition software for its service, but the BBC found that human operators were also involved in transcribing many messages.

Humans 'hear' through their skin

Sensations on the skin play a part in how people hear speech, say Canadian researchers.

A study found that inaudible puffs of air delivered alongside certain sounds influenced what participants thought they were listening to.

Writing in the journal Nature, the team said the findings showed that audio and visual clues were not the only important factors in how people hear.

The findings may lead to better aids for the hard of hearing, experts said.

It is already well known that visual cues from a speaker's face can enhance or interfere with how a person hears what is being said.

In the latest study, researchers at the University of British Columbia in Vancouver wanted to look at whether tactile sensations also affected how sounds are heard.

They compared sounds which when spoken are accompanied by a small inaudible breath of air, such as "pa" and "ta" with sounds which do not such as "ba" and "da".

At the same time, participants were given - or not - a small puff of air to the back of the hand or the neck.

They found that "ba" and "da", known as unaspirated sounds, were heard as the aspirated equivalents, "pa" and "ta", when presented alongside the puff of air.

[source: BBC - see references]

Tweetrad.io: Listen to Twitter Search Results

Here’s something fun and amusing. We just happened upon Tweetrad.io, a site that treats tweets from your Twitter searches like tunes on an old school radio channel, so tweets are read aloud by an automated Twitter DJ as they roll in.

The site is self-explanatory, as you can search for tweets, or select from the pre-programmed channels or trending topics, and listen to the tweets instead of having to waste the effort of actually reading them. It may sound a little a dry in theory, but in practice, it’s absolutely hilarious.

 

Case study: BT uses open source BI to support its voicemail system

BT has deployed open source software to support its voicemail system, which currently serves around eight million UK customers.

With the help of systems integrator Unisys, the telco deployed Jaspersoft ’s open source business intelligence (BI) software in its statistical data warehouse (SDW) around 18 months ago, following an initial six-month development project around the source code.

About 50 employees currently use Jaspersoft to query and report on data stored in BT’s vast voicemail database. Staff can analyse mailbox and message counts by class of service, service provider, and usage level and frequency, for example, and produce and distribute reports quickly and easily in multiple formats, which include PDF, Excel, Word and CSV.

This has helped the telco reduce the time it previously took to research and respond to its voice mail customer queries, and to lower the cost of producing ad hoc reports that were previously available only either in standard, daily formats or obtained by submitting a special request to Unisys.

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US Court rules a bank can be sued for their failure to adopt multi-factor authentication

Late last month an Illinois District Court ruled a bank can be sued for their failure to adopt multi-factor authentication and concluded the bank breached its duty to protect the Plaintiffs' account against fraudulent access, and if the bank's failure to adopt multi-factor authentication caused fraudulent access to plaintiffs' account, it could be held liable for negligence.

In 2007, a hacker gained access to the plaintiffs' online accounts by using the plaintiffs’ username and password. The hacker ordered a $26,500 advance on the plaintiffs’ home equity line of credit, which was transferred to a bank in Austria. When the theft was discovered and the funds traced, the Austrian bank refused to return the money.

Citizens Bank notified the plaintiffs that it intended to hold them liable for the harm. The online banking agreement between Citizens and the plaintiffs stated "We will have no liability to you for any unauthorized payment or transfer made using your password that occurs before you have notified us of possible unauthorized use and we have had a reasonable opportunity to act on that notice." Citizens billed the plaintiffs for the $26,500, and when failed to pay the balance on time, Citizens reported the account as delinquent to credit bureaus, and threatened to foreclose on their home, if the plaintiffs continued to refuse to make payments.

The plaintiffs sued Citizens, claiming that the bank's actions violated the Fair Credit Reporting Act (15 U.S.C. § 1681, et seq.), the Truth in Lending Act (15 U.S.C. § 1601, et seq.), the Electronic Funds Transfer Act (15 U.S.C. § 1693 et seq.) and constituted common law negligence.

The Court ruled, "In light of Citizens' apparent delay in complying with FFIEC security standards, a reasonable finder of fact could conclude that the bank breached its duty to protect Plaintiffs' account against fraudulent access[,]" and if the bank's failure to adopt multi-factor authentication caused fraudulent access to plaintiffs' account, it could be held liable for negligence.”

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The Advantages of On-Demand Speech Technology

 

SpeechTEK 2009:This year's closing keynote panel examines speech solutions delivered via the software-as-a-service model.

 

Early in the session, Nancy Jamison, a market analyst for Jamison Consulting, asked panelists to define what made the hosted model unique.

RJ Auburn, chief technology officer for Voxeo, said that one of the big advantages of managed services and SaaS is the ability to provide redundancy — even in a hybrid or on-premises implementation. He cited as an example a contact center that handles its typical call volume via on-premises ports, but rents extra ports from a vendor to handle seasonal spikes in trafiic. The contact center can use its own ports the rest of the year, possibly saving some money without sacrificing the control provided by the on-premises option.

SaaS models also allow enterprises to leverage technologies that might be too complex and/or too expensive to implement themselves. Paul Watson, general manager of multichannel and self-care solutions for Convergys, pointed specifically to speaker verification as one such example. Installed as an on-premises technology, Watson argued, voice biometrics can require prohibitive capital investment for licensing, infrastructure, and training; not only does the SaaS model address those concerns, he said, but it makes the technology more manageable and quicker to implement.

Jamie Bertasi, the senior vice president of enterprise at Microsoft subsidiary Tellme, said that one of the biggest advantages of SaaS and managed solutions is the ability to tune a system with every call, quickly and efficiently, making that system more powerful over time.

Voxify Executive Vice President Daniel Reed agreed, adding that a managed-services environment also enables vendors to “aggregate data for the benefit of individuals.” In other words, a vendor draws from the well of its experience, making increasing its competence and capabilities with each deployment.

Auburn, Reed's colleague at Voxeo, noted another advantage of a hosted environment: technology updates and the ability to keep systems and platforms evergreen with the latest advances. Some contact centers. he pointed out, are running legacy hardware but competing against newer, easier systems. “There are a lot of old, scary boxes sitting in basements [for 10 years at a time]," he said. "Having the technology move forward is very, very valuable.”

The panel agreed broadly that one of the main advantages of SaaS is speed of deployment, but also cautioned that sufficient attention must be paid to the implementation.

“Talk to people about their experience with speech and you’ll get very mixed results,” Tellme's Bertasi said. “We can be fast all we want, but if it doesn’t work — whatever the reasons are that things go wrong — we’re not, and our clients are not, going to achieve [our] goals.”

Bertasi also argued that systems continuing to move callers through the call flow in a very serial manner miss the point entirely. Good design, she said, helps users achieve goals quickly.

Despite the panel’s consensus on some matters, the stage also saw its share of occasional disagreement. Panelists, speaking to an audience of potential customers, vied to push their messages and wares within the allotted time constraints.

In one exchange, as Convergys's Watson had begun to wrap up an overview of his company's offerings, Voxeo's Auburn pointedly asked how many of Convergys’s ports were VoiceXML-enabled. Watson replied that he didn’t have an exact figure, but that it was above 50 percent. The exchange was polite but also illustrative of how competitive the hosted space -- with its multiplicity of vendors and plans from which to choose -- can be.

40% of callers avoid speech systems wherever possible

 

Many consumers avoid using speech automated systems when calling customer call centres and prefer to use the Internet as their first port of call. In fact, one-third of consumers surveyed struggle to see any benefits to using an automated contact centre service, representing a rise on last year’s figures.

Most consumers also believe companies only use automated services in their contact centres to save money. Furthermore, two in five people claim they are unhappy with the automated systems’ ability to deal with queries.

These are some of the highlights of the 2009 Alignment Index for Speech Self-Service report releasedby Dimension Data in conjunction with Cisco, and Microsoft subsidiary, Tellme Networks Inc.

The report, which compares and measures consumer, vendor and enterprise perceptions of speech systems, reveals that of 2,000 consumers polled across six countries* some 40% - up from 36% in 2008 - said they avoid using speech systems “whenever possible”, while 50% said they use the Internet as their first choice for interacting with a business or organisation.

And with only 25% of consumers saying they would be happy to use speech solutions again, organisations are not winning their hearts and minds.

 

When using automated systems, over a third of consumers that were polled are most frustrated when a human agent requests they repeat themselves after they’ve already provided information to the automated system. And 19% of consumers say that they are most annoyed when the system doesn’t recognise what they’ve said.

On the other hand, companies that have deployed speech recognition are fairly optimistic about the long-term viability of such systems for customer service. They believe the path to improving customer satisfaction with speech recognition lies in making it easier for consumers to use the systems.

Looking at consumer behaviours, the report statistics indicate that attitudes toward customer service among the younger age groups are changing. Over half of consumers between the ages of 16 and 34 use an online channel for their customer service needs, and this will continue to place more pressure on companies to design customer service solutions that provide choice, accuracy and speed.

 

 

Verizon Business Extends Automated Speech Recognition Services to Internet Protocol Networks

 

To meet the needs of the growing number of businesses that are converting their networks to an Internet protocol infrastructure, Verizon Business is now offering its speech services in an IP-enabled version.

The new capability, announced Tuesday (Aug. 25), allows customers to run their speech services on the company's Hosted IP Interactive Voice Response (IVR) platform, as an alternative or in addition to its traditional Hosted IVR platform.

The services help callers conduct simple self-service inquiries and transactions over the phone. For example, a caller could use a speech application to check an account balance, find a store location, order literature, update an appointment, or inquire about an insurance claim -- all without having to wait on hold to speak to a customer service agent.