So far, my experience of GITEX has been an exciting and inspiring one. As the conference focuses on themes of digital transformation, brands throughout the world have come together to show how they’re planning on evolving in the coming years. One of the most significant companies to face a state of transformation this year has been Avaya, thanks to the huge changes the brand has faced in everything from structure, to employee hierarchy.
Jim Chirico, CEO of Avaya, took to the stage at GITEX for his very own speech about the future of the company. Without any slides or prepared documents, Jim gave an entirely natural and genuine insight into the heart of the business, in front of many of the biggest business leaders, partners, and customers in the Avaya network. Afterwards, I caught up with him for an exclusive UC Today interview.
Celebrating the Avaya Community
While Jim Chirico’s speech on the GITEX stage did draw attention to the idea that Avaya would be continuing to change the nature of communication for the future, perhaps the biggest theme that the CEO addressed was a celebration of the Avaya community. He began by saying that during his time at Avaya, he’s seen a number of transformations and transitions taking place in the company, and now the brand is finally moving towards a stage of true success.
Jim stated that he was excited to be at GITEX, and went on to describe the values of Avaya as a company:
“Our solutions and technology are here to genuinely help people. We’re here to show people what technology can do, giving individuals the resources they need to communicate more effectively in real-life scenarios. Our tech has helped people with hearing disabilities to connect with others on a deeper level, as well as making police departments safer and more secure.”
Avaya is focusing on really transforming the digital experience, and what technology means to communication. They hope to be the company that will lead the technology revolution of tomorrow, and with so many new solutions available, it’s easy to see a strong future for Avaya.
Jim touched briefly on the chapter 11 situation, acknowledging that the company entered voluntary bankruptcy in an attempt to acquire the freedom and flexibility they needed to truly invest in the technology of the future. He went on to say:
“This experience has been a stressful one for all of us. Every member of our community has felt the impact of chapter 11. The good news is that we’ve continued to generate cash and customers during this time. Right now, I want to give a special thank you for the loyalty our partners, vendors, and customers have demonstrated. Thank you for fighting for us, and thank you for your commitment.”
Chirico noted that in the future, Avaya will continue to fight together, and win together with its partners, delivering the high-quality that customers have come to expect, to the largest install base in the world.
What Does It Feel Like to Be the New Avaya CEO?
The day after Jim Chirico’s speech, I had the opportunity to catch up with him for an amazing one-on-one interview. The first thing I wanted to know, was how it felt for him to be the new CEO of the company, after years within Avaya.
“It’s exciting. I’ve been with the company for almost 10 years now, and during that time I had several different positions. As CEO, it’s an honour to be able to take the company to its next stage. Before this, I was chief operating officer, and now I can really take the company and look at it from a new perspective, combining both R&D and sales.”
“I’m looking forward to aligning the R&D roadmap with our sales strategy and making the whole process more seamless. I also think that it’s a great time to start looking at the new products and really bringing the voice of our customers back into the company.”
Chirico went on to say that the whole experience of transformation taking place within Avaya has been exhilarating. Today, he’s working with a new team, driving more innovation than ever, and even entering a brand-new business model.
“We’re also going to be coming out of Chapter 11 too, which is very exciting.”
So, Is the Business Now in Good Shape?
In his speech, Chirico had drawn a lot of attention to the future of Avaya, and what’s coming next for the company. I was interested to hear his opinion on the current condition of the company, and how the overall brand felt about exiting chapter 11 at last:
“The business is in great shape now. When we first entered chapter 11, we saw some pretty significant headwinds, but the team rallied around us, and made sure what needed to be done, got done. In the last three quarters, our revenues have remained flat, which is above anyone’s expectations. Basically, in the face of adversity, we’ve begun to see what we can truly accomplish.”
Chirico went on to offer a positive comment on the future of Avaya after chapter 11: “Now, with clarity around the path for chapter 11, and in a few weeks, the actual confirmation of our chapter 11 plan, we have a lot more freedom.”
“The shackles are coming off, and we’re excited about the future. By the first part of December, we’re hoping to be a publicly traded company.”
It’s important to note that exiting chapter 11 frees up more than $300m in cash flow for Avaya, which is more than twice Avaya’s current R&D budget. If the savings are spent wisely, we should see a spike in innovation in the next few years, possibly even some more strategic acquisitions.
You’re Sat at Your Desk in 2020, How Will You Know You’ve Been Successful?
The atmosphere of growth and change in GITEX this year has inspired me to think about the future, and what it means for success in the eyes of the biggest businesses in the UC industry. I was keen to hear more about Chirico’s vision of success within the next two to three years after he’s had time to settle into his position as CEO.
“First, as an operator, I’ll want to make sure that we’re growing in revenue. Secondly, I’ll want to know that we’ve delivered what we said we were going to deliver in the beginning – did we give our customers the R&D roadmap they were expecting? Third, I’d be focused on how we were serving our customers – whether we were gaining or losing new customers, and whether our customer satisfaction index was going up. Finally, I’d want to evaluate Avaya from an employee perspective. For instance, are we keeping our talent, getting new talent? Do people in the business feel like they’re winning?”
Chirico acknowledged: “The last year has been difficult, but we can see things are turning around now. People are excited to come to work, moral is building. The future looks bright.”
