2.0 Introduction
In today’s world, technology has evolved in many ways that are beneficial for businesses. One technology that has been developed is videoconferencing. Videoconferencing can be defined as a conference between two or more participants by using the computer network to transmit audio and visual data. (Beal, n.d.) The participants would be able to communicate simultaneously regardless of their location. A basic videoconferencing systems consists of a coder and decoder (CODEC), Integrated Services Digital Network (ISDN), a control system, video camera, display monitor and cabinet. (Lynch, 1994) One critical characteristic of videoconferencing is the CODEC. CODEC is a device that facilitates the digital compression of audio and visual streams during a videoconference. These streams would then divide into packets and be transmitted over the network. With videoconferencing, businesses can practice smart management by conducting virtual meetings and gain many benefits in the long run.
3.0 Question 1
One consulting firm has predicted that video and web conferencing will make business travel extinct. Do you agree? Why or why not?
Video conferencing allows individuals at different locations to communicate simultaneously through two- way video and audio transmissions. It eases travelling costs and save time for businesses that have multinational operations. Thus, profitability and efficiency of those businesses’ operations have improved. Some firms that have benefitted from using video conferencing are Rip Curl and Korn Ferry International. Based on the statement above, I do not agree that video and web conferencing will make business travel extinct. There are several reasons why.
Firstly, certain business activities simply cannot be carried out via video or web conferencing as they require the physical presence of the business parties involved. These activities include contract signing and demonstration approval. (Bajagain, 2013) Also, confidential documents also would not be able to be signed through videoconferencing as they have to be revised and signed in person. (“BBC – GCSE Bitesize: Video conferencing”, 2016) These activities have to be done in person to ensure that no errors occur.
Next, business relationships cultivated face-to-face is better compared to relationships cultivated via the screen. Although it is easier to have discussion with international clients or suppliers via videoconferencing, these work relationships may not be deemed genuine or sincere as face-to-face meetings. For instance, when building a relationship or finalizing contracts. It is essential to have face-to-face communication for these activities, as it would be easier to come to an agreement and to avoid any miscommunication from occurring.
Another reason is that the use of video conferencing could lead to overdependence on the system. As an example, if an issue or problem were to arise with the video conferencing system or parts, maintenance would need to be done. This maintenance could take some time and thus, could slow down the businesses’ activities. For instance, meetings and proposals would have to be postponed as video conferencing cannot be carried out when the system is not functional. However, with business travelling, businesses would not have to face this issue. Also, a strong and stable internet connection would also be required to ensure that videoconferences can be carried out. Without a good connection, the company would face disruptions and distortion during the videoconference.
Furthermore, a high quality videoconferencing system can be quite expensive. (“The time for videoconferencing,” 2003) Companies that utilize videoconferencing systems in their operations would want a clear and good videoconference that has no disruptions. Hence, the company would have to invest in an expensive system for better quality videoconferences. One example of high quality videoconferencing is Telepresence. Currently, Telepresence is installed by Cisco systems and prices can range up to $500,000. This price range is high for small to medium sized businesses, and hence, is not deemed affordable.
Not only that, another reason is that an immense improvement in video conferencing has to exist for it to be fully implemented and to replace business travel. This reason is further backed by a sentence in the case study, which states that ‘a June 2008 report issued by the Global e-Sustainability Initiative and the climate Group estimated that up to 20 percent of business travel could be replaced by virtual meeting technology’.
To conclude it, the use of video conferencing in businesses is becoming more and more wide spread every year. However, it would merely decrease the need for business travelling to some extent but not cause it to be extinct.
4.0 Question 2
Provide an analytical review, what is the distinction between videoconferencing and telepresence?
Videoconferencing allows individuals at different locations to communicate simultaneously through two- way video and audio transmission. On the other hand, telepresence is a better version of videoconferencing. Telepresence enables users to feel as if they are actually present in a different location during a videoconference although they are actually still within their office. Both videoconferencing and telepresence are often linked together but they have several differences.
From the technological point of view, one distinction is the level of technology being used. Compared to telepresence, the level of technology used in videoconferencing is lower. Telepresence displays a higher level of technology as it displays sharp high- definition images. Users of telepresence would be able to feel as if they are present in a location other than their own and be able to see the other user in life-size through the screen. On the contrary, the quality of videoconferencing images may be blur and not as reliable as Telepresence. (DeGennaro, 2015)
In addition, telepresence would enable businesses to have better quality videoconferences. Compared to videoconferencing, telepresence would provide businesses with top-notch video and audio quality. Thus, facilitating a better and smoother experience while communicating to the other user.
From the business point of view, the installation cost of videoconferencing and telepresence is distinct. This distinction is an especially important factor for budget conscious businesses that are considering the implementation of videoconferencing in their business operations. Although telepresence system performs better, it is more costly than videoconferencing system. (DeGennaro, 2015) Not only that, videoconferencing has a lower, cheaper installation cost compared to telepresence.
Another distinction between videoconferencing and telepresence is the complexity of the system. The traditional videoconferencing system is more complex, thus making it hard to set up and utilize. On the contrary, telepresence is simple and more user friendly. For example, Cisco systems has made telepresence user friendly by making connections simple by pressing a single button. Also, telepresence users do not need to do any confusing configurations such as adjusting the call speed or the pan tilt zoom of the camera. (Wainhouse Research, LLC Copyright, 2008)
To conclude this, both videoconferencing and telepresence have systems that allow the transmission of audio and video data. Although telepresence is more costly, it utilizes a higher level of technology, produces better video and audio quality, and simpler to use. (Webopedia.com, 2016)
5.0 Question 3
Critically discuss what are the ways in which videoconferencing provides value to a business? Would you consider it smart management? Explain your answer.
There are several ways videoconferencing provides value to a business. Firstly, face-to-face communication is being emphasized. Face-to-face communication is facilitated in videoconferencing via a screen. This form of communication makes it easier to build a more sincere and genuine relationship between the businesses that are involved in the videoconference. It also provides a more ‘personal’ experience.
In addition, communication can be frequently and easily done with videoconferencing. Videoconferencing makes it easier for businesses to interact with their suppliers, customers and other counterparts frequently. All this interaction can be done just by pressing a button and within the comfort of one’s office. Without videoconferencing, frequent communication between the business parties involved cannot be carried out, as it simply cannot be achieved through business travelling. Additionally, businesses would also be able to communicate with business contacts that cannot be met at all without the videoconferencing system.
Another value of videoconferencing that is brought to the business is that it enables immediate action or decisions to be made. This is because videoconferencing is real-time, meaning that both parties involved in the videoconference can simultaneously communicate and get instantaneous response. Deals can also be closed in a shorter period of time, thus speeding up a projects’ progress.
Besides that, videoconferencing can also help reduce costs for the business. Through videoconferencing, a business that has operations in foreign countries does not have to send their representatives overseas just to attend a meeting. Instead, the meeting can be done through videoconference in the comfort of one’s office. Representatives do not have to purposely take a flight or travel overseas. Thus, helping the company to save on travelling and accommodation costs that they would have to incur when sending a rep overseas.
Not only that, videoconferencing helps businesses to be more efficient. As an example, Nike, an American multinational sports company, has plans to collaborate with French designer Maison Kitsune. Nike arranges for their representatives to fly to France to meet Kitsune in person. However, in that same period of time, Adidas also wants to collaborate with the same designer. So, instead of flying their reps to France, Adidas meets Kitsune through a videoconference call. As Adidas managed to contact and negotiate with Kitsune first, Kitsune ended up collaborating with Adidas instead of Nike. Through this example, it shows that businesses that use videoconferencing would be able to achieve more in an allocated period of time compared to businesses that do not use videoconferencing. This shows a higher efficiency in work progress.
Futhermore, videoconferencing can also help businesses to achieve their environmental goals. One example of company that has managed to achieve their environmental goal is MetLife. MetLife is an international life insurance company based in the United States of America (USA). As they have international customers, they often have discussions overseas. By installing Telepresence in their office, the company has managed to reduce the need to send employees overseas by flight, hence, reducing the company’s carbon emissions. This statement can be further proven in the case study ‘when MetLife, a company that installed Cisco Telepresence, managed to meet its environmental goals of reducing carbon emissions by 20 percent in 2010.’
To sum it up, I would consider it as smart management to use videoconferencing in business operations, especially if the business requires a lot of interaction and communication with its foreign counterparts. This is because the business would be able to reap many benefits when using videoconferencing in the long run.
6.0 Question 4
If you were in charge of a small business, would you choose to implement videoconferencing? What factors would you consider in your decision?
If I were in charge of a small business, I would choose to implement videoconferencing. There are several factors that I would consider in my decision. Firstly, the type of business. Nowadays, most small businesses conduct their operations and reach out to customers online. Hence, having the videoconferencing system would be useful as it can be used to communicate with not only customers, but also suppliers that are local and overseas.
Next, another factor is the cost of setting up the videoconferencing system. Some analysis has to be done to ensure that the videoconferencing system will be a useful investment for the company. Although videoconferencing has been known as not feasible for small businesses, a company called LifeSize has introduced videoconferencing products as low as $5000. Thus, this would allow my small business to be able to use high-quality videoconferencing product at an affordable price. Small businesses can also opt for free videoconferencing options such as Skype or Oovoo.
Besides, I would also consider implementing videoconferencing as it would help my small business to reduce business travel expenses. Business travelling consists of flight ticket and accommodation costs. These costs can amount to large amounts, especially when travelling to a far country. With videoconferencing, business travel can be reduced while still being able to maintain a quality relationship with foreign business counterparts. (Bower, 2011)
In addition, utilizing videoconferencing system would help my company to increase productivity. In today’s world, competition among businesses is higher than ever. So, to ensure that my small business would be able to compete effectively against others, it would be beneficial to be able to provide services and to communicate with customers in real time. Videoconferencing would also enable my employees to meet with my international business partners quickly without having to waste time travelling. (Earon, 2014) Thus, this would help to speed up my business’s operations and increase productivity.
Additionally, another factor that influences my decision is the ability to increase business contacts. It is impossible to conduct meetings in person often, especially when it involves meetings overseas. With videoconferencing, my small business would be able to meet business contacts that are from foreign countries without having to travel.
Another factor that I would consider is employee socialization. Small businesses usually have a smaller number of employees compared to larger organization. So, it is vital that employees have a good working relationship with each other. Videoconferencing would help to facilitate a good relationship between co-workers as it enables them to hold collaborative meetings and communicate conveniently. (Business Matters Magazine, 2016) Videoconferencing would also make it easier for employees to communicate when they are on-the-go.
In conclusion, I would implement videoconferencing if I was in charge of a small business as it is affordable, helps to save on travelling expenses, increase productivity, increase business contacts and promotes employee socialization.
7.0 Conclusion
In conclusion, the use of videoconferencing should be heavily implemented especially in this technological intense society. Small and medium-sized businesses that are not capable of installing high- quality conferencing systems due to their high costs should not give up. Instead, they should look for cheaper videoconferencing alternatives such as the $5000 videoconferencing system by LifeSize. From this case study, it is apparent that businesses would be able to gain many benefits after implementing a video conferencing system. Some of the benefits that can be gained is the expansion of business contacts, the achievement of environmental goals, increased employee productivity and increased savings in the long run. Videoconferencing would also enable businesses to conduct virtual meetings more often, thus improving the company’s relationship with their business counterparts.
8.0 References
Journals
• Lynch, J. (1994). Videoconferencing. Work Study, 43(5), 23–24. doi:10.1108/eum0000000004005
• The time for videoconferencing (2003). Work Study, 52(1), . doi:10.1108/ws.2003.07952aaf.005
Webpage
• Bajagain, B. (2013). Binod Bajagain :: Homepage and Blog. Binodbajagain.com.np. Retrieved 5 October 2016, from http://binodbajagain.com.np/blogs/62
• BBC – GCSE Bitesize: Video conferencing. (2016). Bbc.co.uk. Retrieved 7 October 2016, from http://www.bbc.co.uk/schools/gcsebitesize/ict/implications/2workpatternsrev6.shtml
• Beal, V. (n.d.) What is videoconferencing? Webopedia definition. Retrieved October 8, 2016, from Webopedia, http://www.webopedia.com/TERM/V/videoconferencing.html
• Bower, J. (2011, June 2). 4 ways video Conferencing can benefit small businesses. Retrieved October 8, 2016, from http://mashable.com/2011/06/02/online-meetings-small-biz/#FnFS9cGlSkq1
• Business Matters Magazine (2016, July 1). Can small businesses benefit from videoconferencing? Retrieved October 8, 2016, from Business Matters, http://www.bmmagazine.co.uk/in-business/can-small-businesses-benefit-from-video-conferencing/
• DeGennaro, M. (2015, January 25). 3 Major Differences between Telepresence & Video Conference Technology. Retrieved October 8, 2016, from LinkedIn, https://www.linkedin.com/pulse/3-major-differences-between-telepresence-video-matt-degennaro
• Earon, A. S. (2014). Benefits of video Conferencing in business | lifesize. Retrieved from https://www.lifesize.com/~/media/Documents/Related%20Resources/White%20Papers/The%20Real%20Business%20Benefits%20of%20Video%20Conferencing.ashx
• Guerrero, M. (2010, October 31). What Are the Disadvantage of Video Conferencing? Retrieved 7 October 2016, from http://www.brighthub.com/office/collaboration/articles/93880.aspx
• Wainhouse Research, LLC Copyright. (2008, January 28). Telepresence vs videoconferencing. Retrieved from http://www.wainhouse.com/files/papers/wr-tpvc-cost.pdf
• What is telepresence? Webopedia Definition. (n.d.) Webopedia.com. Retrieved 7 October 2016, from http://www.webopedia.com/TERM/T/telepresence.html