Monday, May 21, 2012

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Phone Systems Offer Expanded Services

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It wasn't long ago that the thought of getting information from anywhere in the world while sitting at a computer in your home or office was unimaginable. Now, telephone conferencing is also possible with just the click of a mouse, and some Lansing-area companies are touting the communication opportunities.

G.E.E! Communications & Network Solutions of Lansing was a successful company in its own right, but the 2005 merger with New Jersey-originated Strategic Products and Services, also known as SPS, turned the telecommunications company into a multi-million dollar enterprise.

"We served the community well, but the merger with SPS allowed us to take our technology to another level," said Shawn Grady, former CEO of G.E.E! Communications and now general manager – Midwest for SPS. Grady came by the idea of increasing communications access after leaving a job at AT&T. "I needed work," he joked. Taking what he had learned from the telephone giant, he and his wife, Terri, decided to take a chance with their future and invest in their own company. "I was offered work out of state but we wanted to stay close to family, so we figured it was worth a shot." With the objective of providing communications solutions, the idea for G.E.E! Communications was born. Grady developed a system to connect not only telephone service, but also voice mail, e-mail, and a communications infrastructure.

He said the technology has dramatically changed the way people communicate. "The iPhone is to a cell phone what VOIP (Voice Over Internet Protocol) is to traditional telephony." Grady stated VOIP allows people in offices all over the world to view the same presentation at the same time, combining data and voice networks, with just the click of a mouse. The company has won a number of awards due to its advanced technology, including Small Business of the Year by the Michigan Chamber of Commerce. Some systems are small enough to hold in your hand while others are rack-mounted or freestanding and require much more space. But Grady said bigger isn't always better.

"We work with the client to determine communications needs, then design something to fit those needs specifically," he explained. Currently, SPS has clients throughout North America and even some customers abroad, but the main client base involves those in the Midwest region: Michigan, Ohio, Illinois and Wisconsin. While requests for the communications service can be as small as two to three phones, the majority are big number orders, like Michigan State University's 30,000 phone line system. Other clients include the University of Michigan, The City of Lansing, the Lansing School District and Ingham County.

Grady has no regrets about the decision that took him from chief executive officer of his own company to general manager of the bigger SPS. "I love change. You change your dress and your hair to adjust to the times. Change is an absolute catalyst for growth," he said. Even Grady is amazed at how far the company has come in such a short period of time. "We started the business in an office in the back of my buddy's building and now we have 300 employees—55 in Michigan." He added that the growth will continue to keep SPS current. "We're always looking for valuable workers. … We'll grow to provide whatever services our clients need." Grady said the Internet will likely spur the greatest amount of growth in the years to come, taking the telecommunications industry to a whole new dimension. "Phone systems used to be wires that ran into a closet. The Internet has made what we took for granted more complex. VOIP answers that call, at least for now."

A telecommunications company expecting some big growth in the near future is Konnech Inc. of Okemos. Its phone system technology is designed to enhance the communications experience: connecting phone lines through the Internet to allow for free communication for businesses. The brainstorm of a Michigan State University professor some twenty years ago, the idea took off five years later when Eugene Yu received a grant to develop the hardware. Yu eventually established Konnech in 2002. The company once worth $2 million, according to its president and CEO, is expected to be worth $100 million in another five years.

The Detroit Public School system was Yu's first client, offering the service on a trial basis at a reduced cost. St. Thomas Aquinas in East Lansing, along with the Shabaaz Academy in Lansing, are also clients. Currently 28 schools are now either using the technology or considering its use. While dealing with some governments and retailers, Konnech's main client base involves schools. "We're finishing up pilot projects with schools in the area and are now looking to sign on with the 600,000-student Chicago school district," said Yu. "As the concept takes off so will our client base and our revenue."

The company currently has seven full-time programmers, and Yu said expansion will come with client need. "We're working on an emergency notification system that will allow for written and voice alerts." Yu believes that will likely require adding some personnel. As for advice to those purchasing the technology, Yu said to do research and buy the best technology has to offer. "Look for data integration that can be updated. There won't be any single, stand-alone phone system anymore!"

Another telecommunications company operating in Lansing boasts of an additional service for clients. Those at First Telecommunications say they not only offer fully customized communications services, but also a way to always have the very latest on the market. "We can rent our clients the materials," explained President Mark McKersie. "That not only cuts down on money needed up front, but keeps businesses from having to deal with outdated systems." McKersie said what is the latest in communications technology now could be obsolete in a year or two. "Clients pay us and we orchestrate a plan to meet all of their needs. We take the risks." First Telecommunications also guarantees its product for the term of the contract at no additional cost "The coverage includes losses due to fire, floods or other acts of God," McKersie said. Thirty-five percent of the new First Telecommunications clients sign up for the service.

Client service requests range from as few as two phones to as many as 800, but 250 requests and under are their niche. Started in 1981, First Telecommunications began operations in Grand Rapids, where its headquarters remain, then expanded to include an office in Kalamazoo, and eventually Lansing. The company is now doing about $6 million in receipts. They have many partners but Inter-tel is the largest; in fact, First Telecommunications was named by the exclusive business partner as its 13th largest dealer out of some 250 nationwide..

McKersie is pleased with how operations have evolved over the years. "Originally my dad ran the business, my mom was a secretary/typist, and I did sales out of my car," he said. Today McKersie is the company president and employes 52 workers, including technicians that are certified. He said that's especially important since there are no licensing regulations in the telecommunications industry. "You don't know who these techs are or how they're trained in most cases. At First Telecommunications, we make sure our technicians are certified in their training so they can be trusted by the client." McKersie said he's not looking to expand much in the future; in fact, the company was forced to downsize due to the economy. However, he said he wouldn't be surprised if expansion comes some day. "I've seen a lot of change in the last 25 years with the economy going up and down. I expect it'll go up again eventually."

Author: Jo Anne Paul-Stanton
Photography: Terri Shaver

General Manager Midwest
Strategic Products and Services

4166 Legacy Parkway
Lansing, MI 48911
(517) 853-6000
www.spscom.com <http://www.spscom.com/>

Mark McKersie
President
First Telecommunications
15851 South U.S. 27
Building 30. Suite 312
Lansing, MI 48906
(517) 322-0600
www.first-tel.com <http://www.first-tel.com/>


Eugene Yu
President and CEO
Konnech Inc.
4211 Okemos Road
Okemos, MI 48864
(517) 381-1830
www.konnech.com <http://www.konnech.com/>

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