online video collaboration for manufacturing industry - full report

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Market Research Report Online Video Collaboration

for Manufacturing

Prepared By

Abhizar Bootwala

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Table of Contents

1. Executive Summary ................................................................................................................ 3

2. Introduction to Video Collaboration ....................................................................................... 5

2.1. Flavors of Collaboration .................................................................................................. 5

2.2. The Business Value Proposition for Video Collaboration .............................................. 6

2.3. Video as a Pervasive Tool ............................................................................................... 7

2.4. Video Collaboration: A New Paradigm........................................................................... 7

3. Video Collaboration and Corporate Objectives ...................................................................... 9

4. How Businesses Benefit from Video Conferencing ............................................................. 10

4.1. Video and the Sales Process: Greater Customer Loyalty .............................................. 10

4.2. Research and Development: Video Makes Serial Development Possible ..................... 10

4.3. Video and Human Resources: Better Interviews, Training, and Morale ....................... 11

5. Videoconferencing: Competitive Advantage or Business Glamour? ................................... 11

6. The Telepresence Factor ....................................................................................................... 12

7. The Bottom Line Value of Video Collaboration................................................................... 14

7.1. Growing Awareness and Importance of Collaboration Tools .................................. 15

8. Key Vendors and Products .................................................................................................... 17

8.1. Key Vendors .................................................................................................................. 17

8.2. Telepresence Products of Key Vendors......................................................................... 18

8.3. Rating of Key Telepresence Vendors ............................................................................ 21

9. Manufacturing and Video Collaboration............................................................................... 22

9.1. Uses of Collaboration Tools in Manufacturing .......................................................... 22

9.2. Benefits in Manufacturing ............................................................................................. 23

9.3. Application of Video Collaboration Technologies in Manufacturing ........................... 25

10. Taking Video Collaboration from the Boardroom to the Manufacturing Plant Floor ...... 26

11. Appendix 1 – Survey Questionnaire.................................................................................. 29

12. Appendix 2 – Survey Results ............................................................................................ 35

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1. Executive Summary

According to Cisco Systems, by 2014, video will dominate the global internet consumer traffic,

accounting for more than 90% share. The adoption of video and video collaboration is increasing

amongst enterprises. As the popularity of video is growing so are the technologies delivering them,

some of the key video collaboration technologies for enterprises are:

Desktop Videoconferencing

HD room-based Videoconferencing

Mobile Videoconferencing

Telepresence

Webcasting

Market Size:

The global market for enterprise video collaboration/ conferencing is estimated to be USD 3.0 bn in

2010. North America has the highest share of 39% while Caribbean and Latin America have smallest.

The major driver for the video collaboration/ conference market is Telepresence. Worldwide

Telepresence market stood at USD 842 mn in 2010, accounting for 28% of the total enterprise video

conferencing revenues. Telepresence market is expected to show significantly faster growth at a CAGR

of 28% during the forecasted period of 2010-15. The market size of video collaboration / Telepresence

in manufacturing industry cannot be estimated but based on surveys conducted in this domain; it

constitutes very small part of the market.

Video Collaboration and Manufacturing:

Video collaboration technologies are already in use by various industries such as financial services,

education, large corporate, healthcare etc. While Manufacturing is not a significant market presently

but it is expected to grow in future because of various benefits video collaboration provides:

Improved Operational Efficiencies

Remote (Manufacturing) Site Control

Improved Quality Assurance

Real-time Supply/Inventory Management

With the development of new mobile technologies, the opportunity for video collaboration has

expanded. Manufacturers are now taking video collaboration outside of the boardroom and onto the

plant floor, to a supplier location, or into the field where the problems are occurring.

Key Market Trends:

Some of the key trends in the video collaboration industry are:

Popularity of desktop video conferencing – one of the most popular and widely used video

collaboration method

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Presently, video collaboration is used by top management and managers. The usage, especially

of immersive video conferencing is low among normal employees

Video collaboration adoption by firms is expected to look like a pyramid in ste ady state. For

every immersive Telepresence room there will be 10 room-based collaboration solutions and

100 desktop and mobile solutions.

Utilization rates of installed video collaboration systems are low thus impacting the ROI

calculations

Already, 63% of small businesses (defined as those with fewer than 250 employees) use real -

time and non-real time collaborative technologies

Video collaboration / Telepresence market is consolidating and expected to further consolidate

in future

Key Players in Telepresence:

Key market players in the Telepresence market are:

Hewlett-Packard

LifeSize Comm.

Polycom

Tandberg (Cisco)

Magor

Based on a research by Gartner, Cisco is the most promising firm in Telepresence space followed by

Polycom and Teliris.

Challenges and Success Requirements:

Immersive systems are expensive, cost is a major barrier for adoption

Interoperability among various product brands and types of video collaboration

Low utilization rates for currently installed systems, thus making it hard for vendors to prove

ROI point to their clients

High bandwidth requirements of current systems

To succeed in the market, vendors will have to make sure that their systems are easy to use and deliver

quality. Vendors should also address the bandwidth and interoperability issues to ensure widespread

adoption. Further, vendors can start small by introducing desktop based or no-frill room video

conferencing solutions and then move up the value chain.

Video collaboration Applicability in Manufacturing

Key manufacturing application areas in which collaboration can make a major impact include:

Offshoring/Line Efficiencies

Quality Assurance

Supply Management

Customer Service

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Telemedicine

Through collaboration solutions voice communications, video conferencing and wireless telephony will

help turn these challenges into key differentiators. This will enable manufacturers to be more efficient,

more effective and, ultimately, more competitive.

2. Introduction to Video Collaboration

Large companies with project teams spread over several countries and multiple time zones are

increasingly turning to videoconferencing to connect geographically dispersed groups. Companies are

realizing that flying employees from one location to the next not only chalks up travel costs, but al so

decreases productivity and leads to team exhaustion.

Of course, videoconferencing isn’t a complete replacement for face -to-face meetings. Companies that

are leading the way in videoconferencing report those periodic in-person visits are still necessary and

they caution that videoconferencing is most effective if team members already have an existing

relationship. There’s no doubt personal videoconferencing tools can enhance remote employees’

communication and productivity. Video ties together disparate and often isolated workers by letting

physical, visual nuances shine through.

What is the return on investment of uniting geographically dispersed teams? The value of faster

decision making and more effective problem resolution can be many times the dollars spent on

technology. If the teams start use communication and collaboration technologies effectively, these

tools and the networks that support them can save companies millions of dollars.

Once cost prohibitive and complex, today’s systems are making face -to-face communications available

to everyone. The trend toward IP-based videoconferencing equipment, rather than ISDN-based units,

and the spread of IP networks is clearly making it easier than ever for companies to roll out

videoconferencing. IP conferencing lets users offer real -time, multimedia voice, video and data

conferencing over their existing IP networks, instead of having to lease and manage a dedicated ISDN

network to do the job. According to a Wainhouse Research white paper, IP conferencing is more

reliable than the typical 384K bit/sec ISDN videoconferencing call, which is dependent on six data

channels working simultaneously, each of which carriers charge for on a per-minute basis.

For collaboration vendors, now the challenge is to provide a unified experience to the users. They will

have to take islands of conferencing technology--audio, video and Web collaboration--and unify them

into a conferencing experience that lets anyone join in at anytime, from anywhere and via any network

connection. The videoconferencing industry needs to move into this unified messaging space to sustain

the growth it’s seen for the past couple of years.

2.1. Flavors of Collaboration

Videoconferencing: This tool lets people see each other as they talk. A point-to-point

videoconference connects two locations, while a multipoint videoconference links three or

more sites. Most legacy videoconference systems run over ISDN and comply with H.320

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international standards, but newer systems support IP connections and support the H.323

international standards for videoconferencing over packet-switched networks.

Data Collaboration: This includes application sharing, white boarding, instant-text messaging

and file transfer. These collaboration tools turn a videoconference into a full -featured video

meeting. A graphical presentation or whiteboard may fill most of the screen with two small

video windows displaying the faces of the videoconference participants. Some users skip the

video and use teleconferencing with data collaboration tools.

Video Mail: This is a video message delivered as an e-mail attachment. Video mail is useful

when time zone barriers render real-time interactions impractical. The video message may

show a prototype, an animated product design, or the face of a manager describing a problem

or delivering kudos.

Streaming Video: This is a video clip stored on a server and sent in compressed form over a

network such as the Internet. Users can then view the clip through a Web browser. A

videoconference can be taped, stored for reference, and made available via streaming to those

who missed the real-time video meeting. Many companies use streaming video to deliver CEO

speeches to the troops.

2.2. The Business Value Proposition for Video Collaboration Over the past two years, the pressures driving businesses to use video in the workplace have

dramatically changed. In December 2008, Aberdeen surveyed the video usage patterns of over 180

companies and found that the top pressures for video collaboration were the need for real -time

collaboration by geographically dispersed teams and the need to control increasing travel costs. These

two pressures made sense considering the recession emerging at that time. However, in the following

two years, the corporate perspective of video shifted dramatically.

Exhibit: Top Pressures for Video Collaboration

72%

63%64%

31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

December 2008(n=187) November 2010(n=111)

Pe

rce

nta

ge o

f Re

spo

nd

en

ts

Real-timecollaboration forgeographically dispersed teams

Increasing travel costs

Source: Aberdeen Group, January 2011

Video is still seen as a strong collaborative tool, but over the past two years, travel costs are perceived

as only one of several core business pressures for pursuing video collaboration in the enterprise as only

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31% of respondents identified travel cost as a key pressure for pursuing video conferencing. Why has

this occurred?

A number of new pressures emerged in Aberdeen's November 2010 benchmark on the video frontier.

Respondents to this survey sought to use video to improve productivity, increase revenue, and improve

the product development and delivery cycle. As companies have shifted f rom seeing video as a pure

travel reduction tool to a holistic business process enabler, Aberdeen has seen the value proposition

shift into three maturity levels:

Travel and Green Footprint Reduction

Process Efficiencies

Top Line Growth

2.3. Video as a Pervasive Tool Overall, 41% of respondents associated video with additional business process efficiencies. These

changes took a number of different forms, since video was used in a number of different departments .

Exhibit: Departments Identified as Using Video Collaboration

Department Percentage of Respondents

Executive Teams 62%

Information Technology 50%

Learning and Development 38%

Business-to-Business Sales 34%

Product and Service Development 31%

Project and Portfolio Management 30%

Supply Chain 20%

Manufacturing 17%

Source: Aberdeen Group, November 2010

A majority of respondents are using video both in their executive teams and in their information

technology departments. These two constituencies have long been the strongest stakeholders in

enterprise video usage. However, as the bandwidth requirements of video decrease, image quality

increases, management capabilities improve, and video migrates downstream to desktop and mobile

endpoints, businesses are seeing adoption throughout the enterprise. Video is being democratized.

From an operational perspective, 20% or more of respondents are using video for customer service,

supply chain management, learning and development, talent acquisition, and / or project management.

Two years ago, use cases of video in supply chain and service departments were few and far between,

because of the challenges in implementing video collaboration tools into these operational processes.

Today, companies are crossing that chasm to use video as an operational tool.

2.4. Video Collaboration: A New Paradigm When we think of collaborative applications, we often think of large companies with far-flung locations

and herds of mobile employees - all using the latest and greatest communications applications to stay

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connected and productive. Collaboration, though, has just as much of an impact on small businesses,

particularly those that compete with the big guys by making location irrelevant.

Exhibit: Small Business usage of collaborative technologies

Don’t Use Collaboration Technologies,

37%Use Collaboration Technologies,

63%

Source: Nemertes Research

Already, 63% of small businesses (defined as those with fewer than 250 employees) use real -time and

non-real time collaborative technologies, including conferencing (Web, audio, and video), instan t

messaging, shared workspaces, wikis, blogs, and unified messaging, according to Nemertes’ Building the

Successful Virtual Workplace benchmark. How do these tools make location irrelevant? Small

businesses that don’t need to hire employees in a particular geography can now select from a broader

pool - either within a large city, state or province, country, or even multiple countries. They can acquire

the best talent, and perhaps reduce their compensation for that talent by hiring in areas with lower

costs of living.

The key enabler to making this strategy successful is the communications capabilities available.

Companies that hire employees in any locale, but do not give them the appropriate communications

links are destined to fail. But build in the processes (no small feat, by the way) using the right means of

communications, and the virtual workplace becomes hugely successful. For example, small businesses

with 20 employees located in, say, home offices or small branch offices in 10 cities must conduct regular

companywide calls. Each week at a standing time, those employees dial into an audio conferencing

bridge to catch up on items on a standing agenda. Works great. Now, add Web conferencing into that

mix. Not only can the employees talk, they can all view the same presentation, Excel worksheet, or

diagram. Now, add the ability to use a shared workspace, and a subset of those 20 people can work

together to modify the presentation, worksheet, or diagram in real -time - with the input of their peers.

The productivity improvements continue.

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These technologies can extend to product development, design, engineering, or manufacturing -

enabling small businesses to compete more aggressively with large companies. Based on our research

to date, it’s clear that innovative, small businesses understand the advantages of collaboration tools.

What will be interesting is to see how these tools improve their margins and their growth curves

moving forward.

3. Video Collaboration and Corporate Objectives

Video collaboration goes a step beyond videoconferencing to actually become part of an organization’s

business processes and competitive advantage.

Average Increase in Productivity

As corporations compete for business on a global scale, companies are requiring their

employees to become more productive. In some cases, one employee is being asked to do the

work of two employees. For instance, in manufacturing, video is used to select suppliers and

extract the best price. By utilizing resources, including the sourcing of less critical tasks to

outside suppliers, companies can offset margin shrinkage by reducing production costs. Also, a

multinational entertainment company was able to increase productivity of its employees using

videoconferencing to deliver a faster turnaround of projects requiring review by top-level

management. The company’s proposals were reviewed and given the go-ahead faster because

presentations and storyboard/plot reviews no longer needed to be done in person.

Increased Collaboration

Getting employees to use new technology-based tools, including collaboration tools, can be

challenging. Part of the challenge has to do with incorporating new procedures into the work

process itself to help employees attain the required proficiency for using the new tool s

productively. Concepts such as "presence" or "collaboration" are easy to define, but gaining a

tacit understanding of and traction for them can be difficult among the employee base. Video is

unique as a collaboration work tool in that actually using it can help demonstrate, in a very

tangible manner, its advantages. For instance, DHL noted that videoconferencing created a 10%

increase in the company’s collaborative activities. SABMiller, a global provider of food and

beverage products, said the deployment of videoconferencing allowed it to maintain closer

contact with local offices, fostering an understanding of how to adjust product marketing to the

tastes of a specific locale. As a result, SABMiller realized a 35% increase in collaboration with

the deployment of video.

Faster Dispute Resolution

Understanding and resolving problems both internally and externally are critical in keeping

customers happy and moving forward efficiently with project direction and design. As part of

the IDC interview questionnaire, respondents were queried as to whether or not the use of

video enabled them to quickly resolve disputes. A global pharmaceutical company noted that

videoconferencing enabled it to resolve disputes 75% faster than it used to. In the past,

problems related to product development that occurred in different labs around the world

tended to take longer to resolve. Videoconferencing helped cut through the language and

cultural barriers to enable all parties to resolve a dispute in a collaborative manner, savi ng time

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and increasing the agility of companies during the innovation process The ability to jump on a

video call with a customer and experience the entire continuum of speech, gestures, and facial

expressions enabled the respondent to dig deep into the issues at hand to get at the root of a

customer problem. Internal issues are also resolved faster. For instance, DHL, a large

multinational shipping concern, said the use of videoconferencing enabled it to respond to

internal problems and issues 15% faster.

4. How Businesses Benefit from Video Conferencing

As we’ve learned from the discussions in the previous section of corporate objectives and globalization,

virtually all areas of an organization benefit from video collaboration as an internal communications

tool.

4.1. Video and the Sales Process: Greater Customer Loyalty In addition to the internal uses, however, it is clear that many business units are also utilizing video

communications in a much more external or customer-facing manner. For example, W.R. Grace’s sales

force is using video to keep communications with key customers open and recurring. This includes

weekly videoconferences that address problems as they occur and, more important, strengthen

customer relationships and increase loyalty. In this scenario, the relationship between the sales

organization and the customer becomes much more collaborative. Problems and concerns are solved as

if both are part of a team located in the same place and able to have an open and frank dialogue. Guy

Welty, manager of global media networks and collaborative services at W.R. Grace believes that using

videoconferencing enables him to spend sales visits entertaining and exploring new business

opportunities and less time engaged in bare-knuckle negotiations.

Altera, a designer of specialized microprocessors, reports that its sales and design teams are heavy

users of videoconferencing, accounting for 75% of the company’s total usage. The company outsources

some of the manufacturing processes to a plant in Asia, enabl ing it to work on a 24 x 7 basis thanks to

video handoffs. In addition, the Altera sales team utilizes videoconferencing to keep in touch with

customers, get their feedback, and answer their needs. These concerns and needs are relayed back to

the design team via videoconferencing, thus enforcing a closed loop collaborative design process

between sales, customers, outsourcers, and the design team. As a result, instead of hearing about

customer needs after they become public knowledge, Altera can respond in a more agile manner to

changes in the market.

4.2. Research and Development: Video Makes Serial Development Possible One of the especially vexing problems in bringing a new product to market is the long development

cycle. Companies that work efficiently to reduce the time and processes involved in product

development will reap the rewards. To reduce product development t ime many corporations have

moved from linear to serial development processes, creating an efficient yet highly complex process

that breaks development into smaller, more manageable tasks. Once accomplished, the smaller tasks

are then reassembled and a complete product emerges from the process. Of course, keeping all of

these different tasks on time with enough separation so that no one process interferes with another

can be a daunting task. The key to reducing delays in a serial business process is collaboration and

communication. Issues such as engineering reviews of sub-processes must be completed prior to a final

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product being brought to market. All teams must be kept informed, especially those that are scattered

across the world.

A global pharmaceutical concern found that the use of videoconferencing reduced time to market for a

new drug by 20%. Much of that saved time resulted from engaging the best talent available at the

outset, no matter where the expert resided. The research and development team that created the new

drug then used video to convey the drug’s benefits to the company’s marketing team as well as answer

questions from the global sales team about the drug’s efficacy. This seamless dissemination of

information avoided misunderstandings and disagreements that had plagued new product

introductions in the past.

4.3. Video and Human Resources: Better Interviews, Training, and Morale Human resources also benefits from using video to enable better communications and facilitate better

hiring. SABMiller uses videoconferencing to allow employees to interview for positions in other business

units within the company without drawing attention from current supervisors and placing employees in

an awkward and potentially career-limiting situation.

At W.R. Grace, virtual town hall meetings over audio and video connect 2,000 employees on a single

call, saving the company over $1 million annually. These meetings take place approximately 16 times

per year, and although the cost savings are demonstrable, the ability for an executive to inspire

employees is considered immeasurable.

5. Videoconferencing: Competitive Advantage or Business Glamour?

When thinking about videoconferencing, many people’s views are stuck in something of a time warp -

believing it to be a poor quality, awkward means of communicating with colleagues. But

videoconferencing has come a long way since it was first demonstrated in the 1960’s, and in the last five

years has taken a quantum leap in terms of quality and usability.

What’s making videoconferencing so important in today’s modern, globalised business environment

and why is the term ‘collaboration’ becoming a new buzzword?

To explore the reasons why so many Fortune 1000 companies have decided to invest in

videoconferencing technology solutions. Senior executives are really starting to recognize the true

potential in videoconferencing, aside from the cost savings and reduced carbon footprint that it brings.

Research has found a 30% increase in productivity as companies started delivering a faster turnaround

of projects as videoconferencing took place in meetings that no longer had to be delivered in person. In

addition, where disputes occurred within a company, respondents from the research attested to

quicker resolutions via videoconferencing; in fact, one global pharmaceutical company saw a 75%

increase in resolving disputes faster as videoconferencing cut-through cultural and language barriers.

Research has shown consistently, through customer examples, that videoconferencing has emerged as

an important collaborative and indispensable tool that can remove geographical boundaries, encourage

cross-cultural and frequent discussions between disparate business units, increase productivity and

deliver that elusive competitive advantage.

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The near future will see HD videoconferencing systems becoming an increasingly important part of the

corporate collaboration toolset delivering crystal-clear audio and visual experiences that will enable

users to catch even the most subtle of changes in facial expression.

The recent emergence of ‘telepresence’ where end users experience a realistic meeting by combining

very-high-quality audio and video communications within two nearly identical physical environments,

show that the videoconferencing future is here.

6. The Telepresence Factor

Like most new (and expensive) technologies, telepresence is gaining the attention of global enterprises

that have large concentrations of employees at a dozen or two dozen locations worldwide. They can

install these expensive systems at those sites, and reduce costly international travel expenses.

For years, individuals who work in remote offices have had mixed blessings. But for the most part,

ambitious people must move to the corporate location if they want to advance beyond a director-level

position. (Of course, in certain disciplines such as sales, that’s not always the case because they’re on

the road the majority of time.) Enter telepresence. As this technology becomes more pervasive, will

individuals still need to move to locations they may dislike working in an atmosphere filled with politics?

Doesn’t look like it though.

For those of you who haven’t been involved in a telepresence, it’s worth the time to schedule a

demonstration. The rooms are engineered to make each participant feel as though he/she is sitting at a

table with all of the people on the conference. For example, the table on the real world continues at the

same height and in the same color as the table in the virtual world. People are the actual size they

would be if they were in the room. The resolution is high-quality, and when you look at someone on a

screen, you truly get lost in the conversation, thinking that person is right across the table.

Telepresence systems, which rely upon high-definition video, high-speed networks, and wall-size video

screens, produce an environment that make meeting participants feel as though they’re in the same

room, across the table from one another. They have advanced traditional videoconferencing systems to

the point where high-level executives feel comfortable using the technology.

One of the biggest drivers for telepresence is the business case. Enterprises typically spend about

$500,000 per room, though prices start at about $250,000. Even at the high end, organizat ions will

recoup that cost within a year by reducing international travel by 2% to 5%.

But one question weighing heavily on some IT executives’ minds (particularly those responsible for

hundreds or thousands of locations) is whether it will ever be affordable enough for branch locations.

The answer would be yes.

Like most new product lines, the technology will improve and the cost to produce it will drop. Already,

one necessary component for telepresence is affordable. High-speed Internet access is available to

branch locations in most urban and suburban locations.

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As the prices drop, we’ll see more telepresence suits in both urban and suburban areas, enabling

branch-office employees to become more fully engaged in meetings. Rather than being a voice

projecting from an audio bridge, they will be a visible meeting participant, able to project their voices,

facial expressions, and hand gestures in a virtual meeting - one that is much more life-like than

traditional ISDN-based videoconferences. The end result: Working in a branch office will not limit

employees’ potential for climbing the corporate ladder.

Worldwide Telepresence market stood at USD 842 mn in 2010, accounting for 28% of the total

enterprise video conferencing revenues. Telepresence market i s expected to show significantly faster

growth at a CAGR of 28% during the forecasted period of 2010-15 (refer Exhibit below).

Exhibit: Telepresence Revenue (in USD mn) forecast (2010-2015)

Source: IDC, 2010

Thus, during 2010-15, Telepresence will be major driver for the revenue for enterprise

videoconferencing market.

But it will take some time for the products, including high-definition, room size screens and

accompanying video equipment, to become affordable. None of the vendors in this space are marketing

the equipment to branch offices today, but you can bet they wi ll as the technology becomes more

prevalent.

Exhibit: Key Telepresence Competitors Positioning

Cisco LifeSize Polycom RADVISION Vidyo

Extend and improve collaboration with customers, partners and prospects.

Best Performance Architecture at any bandwidth.

World leader in Unified Communications from desktop to immersive telepresence.

Leading provider of products and technologies for unified visual communications

Enabling multi-party HD-quality video conferences over regular

In 2015,

Telepresence will

account for 43%

of revenues up

from 28% in 2010

3.0 bn 5.1 bn 6.9 bn

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over IP and 3G networks.

IP networks using commodity desktop systems.

Tandberg now part of Cisco powering the new way of working where everyone, everywhere can be more productive through face to face communication.

Only architecture with Adaptive Motion Control for real time protection of visual motion and clarity.

Polycom’s Open Collaboration Network gives you the flexibility to choose from multiple mission-critical UC platforms.

Offers broadest and most complete set of standards based video networking infrastructure and developer toolkits.

Patented technologies leverage the new H.264 Scalable Video Coding (SVC) standard to produce the best error resilient and low latency products.

Seamless Interoperability brings all videoconferencing users into Cisco TelePresence meetings with ease.

Best Embedded Multipoint Bridging to ensure visual motion and clarity while adding participants in real time.

Multi-vendor UC approaches with interoperable video, telepresence, voice and content sharing offerings.

Enable customers and partners to deploy unified communication networks and services.

Designed to take advantage of an organization’s existing IP Infrastructure with no detected networks required.

Source: NetworkWorld

7. The Bottom Line Value of Video Collaboration

Many global organizations are maintaining their competitive edge and adding further efficiencies by

cutting costs through outsourcing, off-shoring and strategic partnering. However these business models

are adding distance into the workplace and this can have the effect of lowering productivity and

efficiency by preventing people from coming together to collaborate, to discuss and to innovate.

Decisions are slower, and the ability of the organization to react to changing market conditions is

damaged.

It is clear that in modern day business, providing a culture of team working, collaboration, knowledge

reuse and thereby efficient innovation provides real benefit. In his book “The Culture of Collaboration”,

Evan Rosen reports that “collaborative cultures are breaking down silos, changing business models and

the very nature of the way we work. They are a hallmark of the most successful global enterprises

which realize real-time, interactive video is essential to collaboration”.

The industry analyst IDC, in their recent whitepaper on video collaboration, reported on how the

modern, multinational corporation has developed these silos of expertise, with little sharing and reuse

of information, leading to inefficiencies and the inhibition of innovation. Fostering a spirit of

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information sharing, teamwork and collaboration will enhance productivity, supplier and customer

relations and if executed properly improve sales and profitability.

However, fostering this spirit is a necessary but insufficient condition to getting the benefit of

collaborative working, as the organization must move to provide its teams with the tools they need to

communicate effectively. Today many people report on how they are swamped with information via

email, intranets and databases, so much so that you can’t recall the data when required. On the other

hand, human, face to face interaction is reported as the most effective means for learning,

understanding and recall.

Tools, from the telephone handset, to the telepresence, and all points in between, have a part to play in

overcoming this barrier of distance whilst maintaining the human element required for memorable

communications. The video collaboration mission is to help organizations create top and bottom line

value by improving performance in today’s globally dispersed companies. The aim is to encourage

teamwork, allow better decisions, enable better customer and supplier relations, delivers faster time to

market and increased sales and provides a sustainable competitive advantage, whilst ensuring that the

organization travel related carbon footprint is not spiraling upward.

According to Melanie Turek of Frost and Sullivan, “more and more companies are deploying un ified

communications and collaboration technologies, recognizing that such tools can make the difference

between success and failure in today’s global marketplace”. CIOs report their top four priorities are

improving business processes, reducing enterprise wide operating costs, attracting and growing

customer, relationships, and supporting competitive advantage. Their budgets are primarily going to

security enhancement tools; mobile workforce applications and collaboration technologies. Polycom

delivers market leading solutions for secure collaboration and mobility that address all four of these IT

priorities. In fact, two of the top three applications driving future investments in company data and

telephony network budgets are remote tele-worker solutions and video conferencing solutions.

7.1. Growing Awareness and Importance of Collaboration Tools The key factors which will impact growth and awareness in online video collaboration

Globalization

Travel cost saving and ROI

Migration to UC

Greater awareness/Ease of use

Web 2.0 evolution

Green Imperatives

Consumer video (Skype, Gtalk)

While a lot of focus in 2009-10 was on cost savings, the long term approach to using online video

collaboration will be will be strategic i.e. business process-centric collaboration.

A recent Frost & Sullivan end user survey of C-level executives indicates that the awareness for

collaboration tools is high however they suspect that the respondents may have mixed their consumer

and enterprise video and web communications awareness, it’s an overall positive indication for the

collaboration industry.

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Exhibit: Awareness of Communications and Collaboration Tools (N=102)

Source: Frost & Sullivan

The same survey showed a lower rating for the importance of collaboration tools in the enterprise,

indicating that the business case for collaboration as a standard is still being established.

Exhibit: Importance of Communications and Collaboration Tools (N=102)

Source: Frost & Sullivan

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8. Key Vendors and Products

8.1. Key Vendors The products of video collaboration industry have been evolving and many players catering to multiple

needs have emerged. Some of the key vendors providing video collaboration are mentioned in the

Exhibit below.

Exhibit: Key Vendors Offering Video Collaboration Technologies

Technology Key Vendors Desktop Videoconferencing Avistar Communications

Hewlett-Packard

LifeSize Communications (Logitech) Polycom

Radvision, Tandberg (Cisco Systems)

Vidyo HD room-based videoconferencing Hewlett-Packard

LifeSize Communications (Logitech) Polycom

Radvision Tandberg (Cisco Systems)

Vidyo Mobile videoconferencing Fring

Polycom

Qik Skype

Tango Yahoo!

Telepresence Hewlett-Packard LifeSize Communications (Logitech)

Polycom Tandberg (Cisco Systems)

Teliris Webcasting Accordent Technologies

Kontiki

Onstream Media

Panopto

Qumu Sonic Foundry

TalkPoint Thomson Reuters

VBrick Systems Source: Forrester

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Some of the players such as Kontiki cater to one video collaboration technology while others such as

Cisco are present in many. Exhibit below provides how the players are present in this space.

Exhibit: Vendors Mapping for Video Collaboration Technologies

Players Desktop Video conf.

HD Room

Mobile Video Conf.

Telepresence Webcasting

Avistar √ Hewlett-Packard √ √ √ LifeSize Comm. √ √ √ Polycom √ √ √ Radvision, √ √ Tandberg (Cisco) √ √ √ Vidyo √ √ Magor √ Fring √ Qik √ Skype √ Tango √ Yahoo! √ Teliris √ Accordent √

Kontiki √

Onstream Media √

Panopto √

Qumu √

Sonic Foundry √

TalkPoint √

Thomson Reuter √

VBrick Systems √

Source: Forrester and analysis

8.2. Telepresence Products of Key Vendors

Cisco Systems

Products Comments Cisco Telepresence System 3010 Targeted towards executive communication

Provides fully immersive environment 3 screen system, 6 participants per room, with upto 48

locations Cisco Telepresence System 1300 Targeted for a general purpose meeting room, customer

presentations, multi-point meetings, etc.

Single screen system

Supports six people per room Cisco Telepresence Profile Series Single or double screen with single camera

Players

with

multiple

offerings

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This product was known as “TANDBERG Profile Series” before Cisco acquired Tandberg

Cisco Telepresence EX Series On the desk video collaboration Available in two screen sizes, 24 and 21.5 inches

Cisco Telepresence System 500 Targeted towards individual office, multi-location meetings

Single screen Source: Company website

Hewlett-Packard

Products Comments HP Studio Targeted towards executive communication

Provides fully immersive environment 3 screen system

2, 4, 6, and 12 seat configurations HP Room Single and double screen system

For general and team meetings HP Executive Desktop On the desk video collaboration

Single screen and size system HP Desktop Video collaboration over desktop Source: Company website

LifeSize (Logitech)

Products Comments LifeSize Conference Targeted towards executive communication

Provides fully immersive environment

3 and 4 screen system Encode / decode - 1080p30, 720p60, and 720p30

Variants - Conference 200 and Conference LifeSize Room Low cost room HD video conferencing

Single or two screen Variants – Room 220 and Room 200

LifeSize Desktop Video collaboration over desktop LifeSize Team Targeted towards general team meetings and collaboration

Single or two screen

Variants – Team 220 and Team 200 LifeSize Express Positioned as affordable HD Telepresence solution for work

groups

Variants – Express 220 and Express 200 LifeSize Passport Targeted towards individuals, small offices, teleworkers, etc.

720p30

Skype compatible Source: Company website

Polycom

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Products Comments Polycom RealPresence™ Experience Targeted towards executive / board communication, project

management


Uses a cinematic video wall Upto 28 participants per room

Rear-projection RPX system can support both standing and sitting participants

Polycom Open Telepresence Experience

Provides an immersive environment 3 Screen display

Upto 6 participants Room can be used for non-video meetings

Polycom Architected Telepresence Experience

Provides an immersive environment 2.3 or 4 video displays

Flexibility in designing environment Room can be used for non-video meetings

Polycom Room Telepresence – HDX Series

1-2 Screens

Suitable for small meetings Supports - 1080p30, 720p60, 720p30, 1080p

Variants – HDX 9000, HDX 8000, HDX 7000, HDX 6000, Polycom Personal Telepresence – HDX 4000 Series

For personal usage

Single screen in 2 screen sizes (20.1 and 24 inches) Full HD upto 720p60 and 1080p30

Variants – HDX 4002, HDX 4500 Source: Company website

Teliris

Products Comments Teliris VirtuaLive Telepresence Targeted towards executive / board communication, project

management


Uses a upto 4 screens Upto 16 participants per room

Teliris Express Telepresence 1, 2 or 3 screen systems Deployed in existing conference rooms

6 participants per location Teliris Personal Telepresence For individuals and executive offices

Single 46 inch screen Video – 720p

Teliris Executive Telepresence For individual usage

Panaromic desktop Telepresence experience Source: Company website

Magor

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Products Comments HDTrio Targeted towards executive / board communication, project

management Provides immersive environment

3 screen, 2 or 3 camera system HDDuo 2 screen, 1 or 2 camera system HDSolo For frequent and general team meetings and collaboration

Single screen, single camera Source: Company website

8.3. Rating of Key Telepresence Vendors

There has been some activity in the Telepresence market lately. Cisco acquired Tadberg and Telanetix

exited the market in 2010. The players have upgraded their products and have also launched new ones.

Telepresence vendors offer variety of systems, some can be called as fully immersive while others

adaptive (a bit less immersive in settings and experience). Immersive systems have the following

characteristics:1

It has tailored environments in which the lighting, acoustics, decor and furniture on both sides

of the video are tightly controlled (and often identical)

It gives conference end users the appearance of being in the same room and sitting at the same

table as participants in other locations

Immersive Telepresence is built out in a dedicated room, or essentially dropped into an existing

space as a "room in room" solution.

Adaptive systems are delivered with limited “environment” such as furniture and lightning , but these

systems are complete in technological terms as immersive ones, example includes Cisco Telepresence

1300, etc.

Gartner analyzed and rated key Telepresence vendors based on the following parameters: 2

Significant visibility in the immersive Telepresence market

Product quality, with focus on immersive Telepresence systems

Overall long-term viability as a company (business unit, organization, financial, strategy)

Flexibility to offer customers a choice of in-house management or a managed service offering

Network alternatives associated with the Telepresence solution

Interoperability to include different signaling, codec’s and networks

The range, quality and innovation of collaboration tools available with the product

Exhibit: Rating of Telepresence Vendors

Vendors Strong Negative Caution Promising Positive Strong Positive Cisco √ HP √ LifeSize √

1 Gartner, MarketScope, 2010 2 Gartner, MarketScope, 2010

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Magor √ Polycom √ Teliris √ Source: Gartner, as of Aug. 2010

In its analysis, Gartner rated Cisco as the only firm with strong positive rating and only two firms –

Polycom and Teliris with positive rating.

9. Manufacturing and Video Collaboration

Collaboration technologies are already in use by various industries such as financial services, education,

large corporate and healthcare

The challenges facing manufacturing companies’ today span across the industry , independent of

company size or product. Manufacturers must overcome these challenges but it is no easy task.

Communication technology will play a major role in this effort.

9.1. Uses of Collaboration Tools in Manufacturing By using voice and video conferencing and collaborative solutions, manufacturers have the solutions,

applications and tools to become more efficient in their operations and more successful in the long run.

HD Voice: Manufacturers with global locations are often faced with cultural issues, time zone

differences and language barriers. The ability to be heard clearly and concisely is the key to

ensuring accuracy and comprehension. The slightest differences in voice inflections or word

pronunciations can result in misunderstandings and problems. The word “ma” in Chinese, for

example, can have four different meanings depending on the pitch or inflection used by the

speaker. HD voice ensures accuracy and full comprehension, which is crucial when dealing with

remote, diverse manufacturing groups in different locations and in various countries.

IP Telephony (VoIP): By using IP, calls can be made using packets of data on shared lines (such

as a Local Area Network or the Internet) thereby avoiding costly PSTN-related tolls. The savings

can be significant especially when considering the recurring costs of domestic long distance

calling, international long-distance and local telephony connections. For manufacturing

companies, IP telephony allows high quality, reliable communications betwe en remote,

offshore locations at a fraction of the cost of traditional analog lines.

Conference Speakerphones: Conference speakerphones are ideal for cross functional meetings,

development discussions and manufacturing process descriptions as with traditional

telephones, not all conference speakerphones are created equal. Manufacturers seeking to

maximize the productivity in their conference rooms must consider the use of speakerphone

solutions that provide life-like, high-fidelity audio.

In-Building, Premise-Wide Wireless Phones: Manufacturers can utilize these premise-based

wireless phones in a number of ways. By leveraging off of an existing Wi -Fi computer network

infrastructure, the addition of voice mobility is highly cost effective. And easy integration with

existing PBX and phone systems streamline implementation.

From a productivity standpoint, a recent manufacturing industry survey found that:

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a. 50 percent of overhead pages went unanswered because personnel could not hear the

page

b. Technicians lost nearly 40 minutes due to unanswered calls and time spent traveling to

a phone to answer a page

c. 30 out of 50 customer service calls were abandoned due to long hold times

Wireless telephony solutions help to resolve these manufacturing-specific issues and increase

productivity levels.

HD Video: In manufacturing, in addition to travel savings and improved partner/supplier

relations, HD video can be used to remotely analyze specific product components or minute

configuration designs (such as printed circuit board layouts) thereby eliminating the need for

time-consuming shipping of product samples. HD content (presentations, videos, etc.) can also

be shared with multiple manufacturing locations. And technologies such as loss packet

recovery optimize image quality even in low bandwidth areas.

Immersive Telepresence: It is ideal for corporate board meetings or executive-level briefings

where face-to-face, life-like discussions are expected. Heads of manufacturing operations or

executives from partner or supplier companies can meet regularly with counterparts

throughout the world as if they were across the table.

Operational Video: A manufacturing floor is a dynamic environment. The need for mobility is

obvious not just for voice as mentioned before, but also for video. A technician equipped with a

wireless video conferencing system could transmit video images of the defective equipment to

remote support personnel. These remote experts could assist in the repair process by

identifying the problem, making recommendation and, if needed, walking the technician

through the entire repair process. A mobile video conferencing unit could be also be used to

have interactive discussions with line personnel and engineering directly on the manufacturing

floor to discuss new designs or build processes in real-time.

Source: Polycom

9.2. Benefits in Manufacturing Video collaboration offers multiple benefits to enterprises. The usage and benefits of video

collaboration vary based on industry. For example, in case of medicine, video collaboration plays a

crucial rule enabling tele-medicine while in most of large organizations; it acts a medium for senior

management to interact without spending time and money on travel.

Exhibit: Benefits of Video Collaboration in Manufacturing

1. Improved Operational Efficiencies

2. Remote (Manufacturing) Site Control

3. Improved Quality Assurance

4. Real-time Supply/Inventory Management

5. Green initiatives

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Manufacturing industry can harness the benefits of video collaboration; some of the key benefits are

discussed below:

Reduction of Product Development Delays: Every new product development program has

many (often dozens) points in the process where there is potential for a slippage. Resulting

delays can range from less than a day to weeks or months. Online video collaboration and

communication can reduce product development delays and in the process pay for itself many

times over.

Reduction of Time-to-Market Delays: Most organizations in manufacturing depend on a steady

flow of new products to grow and maintain revenues. Any issue that results in a product

development delay will usually mean an associated delay in market introduction. Revenue and

margin will be deferred or lost, resulting in an additional cost beyond those encountered in the

product development process. Organizations that see themselves as market leaders, who win

and lose based upon their new product development performance will especially see the value

of online video collaboration and communication as a tool which can reduce time -to-market

delays.

Reduction of Production Down-Time: Production down time is very expensive for

manufacturers. Online video collaboration and communication pays for itself quickly through

the reduction of production down time. This is achieved in many ways including remote

troubleshooting and maintenance of production equipment, consultation with a remote expert

about an assembly problem, or rapid inspection of a new batch of parts that may be rejected

unnecessarily.

Avoidance or Reduction of Travel Costs: More often that desired issues and problems

ultimately require an experienced senior engineer or production specialist making long trips to

where the problem or issue is only to find that after seeing it, a fix or resolution is found within

a short period of time. Cost of expensive and often last minute travel as well as the lost

productivity associated with it can be another significant benefit of using online video

collaboration and communication as an effective tool.

Scrap Reduction: The scrap costs involved in a bad shipment of parts can be substantial.

Vulnerability can be most acute when a new supplier is introduced, or an existing supplier

introduces a new process. The cost impact of these surprises can range from relatively minor to

very severe. Manufacturers can now make use of online video collaboration and

communication to help avoid these costly errors and as "insurance" against negative surprise s.

Improved Customer Satisfaction: Although sometime difficult to quantify, many businesses

choose to make improved customer satisfaction one of their top priority metrics. Online video

Shortened time-to-manufacture,

improved cost control without

sacrificing quality

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collaboration and communication can improve an organizations ability to be responsive to its

customers, especially for complex products that involve extensive support.

Improved Market Credibility: Slippages in product launch dates can be very damaging to an

organization's credibility, especially if important customers are depending on the new product.

Many manufacturers will make the choice to invest in online video collaboration and

communication tools because of the convincing case that it can reduce the likelihood or length

of such slippages.

Avoid or Reduce "Standing Army Costs": Some manufacturers penalize their suppliers if late or

defective shipments halt production on their line. These "standing army costs" can result in

penalties that from $100s to $1000s per hour. Use of online video collaboration and

communication to rapidly deal with production line problems as they occur can save valuable

time and help avoid these charges in many circumstances.

Intelligent hiring, active training and collaboration among team members lead to productivity gains.

Reduction of travel of management and team members saves money. Frequent and constructive

interaction of marketing and operational team with customers may lead to increase in top line.

9.3. Application of Video Collaboration Technologies in Manufacturing

The following application areas are potential usage areas for voice and video collaboration solutions.

Customer examples are included where available to provide additional proof points.

Offshoring/Line Efficiencies

In offshore locations, improving the manufacturing bui ld process can result in reduced costs and

operational efficiencies. Voice and video solutions are ideal for manufacturing activities such as video -

based training, remote meetings with engineering or procurement, tracking and status checks or

promoting facility-wide wireless communications. As a result, organizations enjoy improved yields,

shorter development and build times and reduced costs.

Example: Automobile Manufacturer (Europe)

A German automobile manufacturer uses video conferencing for interactive consultation between

customers, sales agents and design specialists. 3-D CAD designs shared over video enables customer to

see the design, engage in discussion and make modifications in real -time. This has resulted in improved

customer satisfaction, accelerated decision making and competitive advantages.

Supply Management

For optimal profitability, most manufacturers can benefit from better inventory management and more

accurate supply and demand forecasting. Real-time video and voice collaboration solutions keep

information flowing between manufacturing locations, suppliers, vendors and customers. Better

information leads to improved customer satisfaction, faster response to market and sounder

upstream/downstream supply management.

Example: Aircraft Manufacturer

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The developer of one of the newest and largest aircraft uses video conferencing to manage and

coordinate the development activities of its various part suppliers throughout Europe before final

assembly. Over 1200 meetings are held each month to ensure synchronization of efforts and to

minimize travel.

Customer Service

A satisfied customer often results in a loyal customer, so it's no surprise that companies continuously

look to improve customer service and increase customer satisfaction. Voice and video conferencing

solutions are used to enhance a manufacturer's interface with customers as needed in the repair

process for visual diagnosis, engineering assistance or instructional support. This leads to enhanced

satisfaction and shorter repair times.

Example: Chip Manufacturer

Sales executives at the world’s leading developer of system-on-a-programmable-chips use video

conferencing to instantaneously connect with customers to discuss solutions resulting in increased

problem visibility and improved customer satisfaction.

Telemedicine

Most manufacturing sites are home to dozens, even hundreds of workers. Aside from industrial staff

nurses, there is usually scant access to more sophisticated medical professionals and services. When

workers become ill or injured the situation must be assessed on the spot or via the phone. The time

involved in moving a worker, with a life-threatening condition, from the site to a medical facility could

mean the difference between life and death. HD video offers vivid, li fe-like images and instant access to

medical experts so patients can be diagnosed quickly and properly.

Source: Polycom

10. Taking Video Collaboration from the Boardroom to the

Manufacturing Plant Floor

Video conferencing has become a standard form of communication across enterprises. The standard

form of video collaboration facilitates face to face meetings in video conferencing meeting boardrooms.

For manufacturers, though, the heart of their business is often the plant floor—where traditional video

conferencing doesn’t reach.

Secure Mobile Video

With the development of new mobile technologies, the opportunity for video collaboration has

expanded. Manufacturers are now taking video collaboration outside of the boardroom and onto the

plant floor, to a supplier location, or into the field where the problems are occurring. These mobile

technologies generally include wireless video devices for use on the plant floor and collaboration

software for the remote experts’ desktops. Plant workers use the mobile device to share video, voice,

telestration (i.e., onscreen drawing) and images with the experts who interact live through the

collaboration PC software. Remote experts can also share images or pre-recorded videos to play on the

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touch screen panel of the device. By sharing this visual content, the experts can provide plant floor

personnel or field technicians with visual instructions. For many manufacturers, their plant floor

operation contains competitive and sensitive information; for this reason, cameras are typically not

allowed on the plant floor. In many Fortune 1000 companies, potentially “rogue” video devices such as

smart phones must be checked at security. New video conferencing mobile devices overcome that

concern by providing tight security over the wireless communication, media content and device usage.

Security, encryption, authentication and even centralized administrator control have become table-

stakes for mobile video collaboration products.

Reduced Downtime

For one major consumer packaged goods (CPG) manufacturer, this kind of mobile collaboration has

helped in various operational situations, including production line equipment maintenance and repair,

supply chain interaction, and OEM vendor communication. Video collaboration was f irst used on the

CPG manufacturer’s plant floor to help maintain and repair critical production line equipment. If a

machine was down and the right engineer was not available onsite to troubleshoot the probl em,

downtime rapidly escalated. By using the mobile video device to show a remote expert the failed

equipment, the manufacturer was able to remove costly delays from the repair process. Together, the

production line engineer and remote specialist can now collaborate to identify immediate corrective

action plans. Production equipment downtime costs can be staggering. With downtime costs averaging

from $500 for a stand-alone machine, $1500-8500/hour for a production cell or even as much as

$3500/minute for an entire auto factory line, reducing downtime is critically important. Trying to

troubleshoot an equipment problem through pictures via e-mail or waiting for an offsite specialist to

travel to the problem site adds costly hours that can be easily avoided with mobile collaboration

technologies. Much of this delay can be reduced or eliminated by bringing the problem to the expert, as

opposed to the other way around.

Improved Supplier Interaction

The CPG manufacturer also uses mobile collaboration to streamline supply chain interaction. Design

reviews and first-run production samples are an ongoing part of standard communication with

suppliers. Normally, team members would travel to the supplier locations for live interactions,

introducing delays into the process. Instead of travel, the mobile devices are now kept or shipped to

major suppliers to perform live visual communication when needed. The camera optics within these

mobile devices are so advanced that remote experts can see detailed design aspects where even a

fraction of a millimeter matters. In some cases, third-party cameras such as microscopes or borescopes

can also be attached to the mobile device to show the remote experts even more detailed visuals. By

interacting live with suppliers on the plant floor, this manufacturer has accelerated product delivery,

reduced travel costs, and leveraged scarce expert resources in their own company and that of their

supply chain partners. The CPG manufacturer also uses mobile collaboration with its OEM vendors to

perform acceptance test processes on new production line equipment. The process was traditionally

conducted at the supplier site. Multiple skill sets were required to adequately inspect and test the new

production line equipment, which equated to teams of peopl e travelling to the supplier’s facility. In

many cases, the OEM vendors were not just in the next state, but in another country or continent.

Instead of sending a team of people, this manufacturer now sends one person with the mobile

collaboration device to stream video and interact with colleagues to perform the acceptance test.

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Expense savings in this application alone have been as high as €50,000 (approximately $67,500) in just

one use.

Remote Process Reviews

For global manufacturers with internal or supplier locations around the world, the importance of visual

communication becomes even more important to overcome language and cultural barriers. For one

supplier to the automotive, aerospace and medical industry, mobile video collaboration has helped

visually connect engineers in technical centers with plants in locations such as Mexico. In one instance,

the manufacturer experienced an abnormally high scrap rate for one of its products. Language barriers

and the inability to capture movement made e-mail and phone communication insufficient to resolve

the detailed process issues. Instead of sending specialized engineers to Mexico, the manufacturer held a

live collaboration session. The team in Mexico streamed video from the plant floor using the mobile

device to show the engineering team the existing production process. By seeing the process live, the

specialists identified numerous process errors. They then communicated the problems and corrective

action steps during the live collaboration session. To make sure the feedback was clear, the production

team in Mexico then showed the remote engineering team the revised process. This collaboration took

three hours instead of the estimated three or four days that typically resulted from attempts to correct

problems over e-mail or travel. As a result, the scrap rate immediately decreased by 25% after the new

process was implemented.

Internal Education

With the emerging problem of aging workforces, leveraging scarce expert resources can also be a major

concern. For one manufacturer of industrial equipment, this was their top concern. This manufacturer

had more people in their company over the age of 50 than under the age of 30. Within five to 10 years,

their top experts would retire, leaving their business without adequately trained resources. Mobile

video collaboration provided this organization with a way to leverage its scarce expert pool and

effectively mentor staff in the field to develop new experts.

Network Requirements

While many benefits and cost savings opportunities are related to using mobile video collaboration on

the plant floor, it is important to consider the infrastructure requirements. The main requirement is

that the mobile devices have either an Ethernet or wireless network connection to access the Internet.

Wireless connectivity (i.e. 802.11 b/g) is the most common method used at a manufacturing plant to

keep the device mobility level high. While manufacturers have often invested in wireless networks to

share equipment sensor data, these networks were not always constructed with video in mind. As a rule

of thumb, most manufacturers use video settings for their mobile devices that require approximately

500 kbps of bandwidth at the plant. However, this mobile video collaboration can be succe ssful with

less than 500 kbps as well. In other industries, such as oil and gas or mining operations, it is more

common to see bandwidth consumption below 128 kbps due to narrow bandwidth backhaul

connections. Even with only 128 kbps, mobile collaboration can include live video, voice, telestration,

and image sharing between the field technician and the remote expert. For manufacturing plants,

though, the additional bandwidth capacity is typically worth the investment.

Wireless Alternatives

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Another alternative to consider is the use of 3G or 4G cellular networks through mobile Wi -Fi hotspot

devices such as the MiFi or Cradlepoint. By using a hotspot device, a wireless network can be created

for the mobile device anywhere there is adequate cellular coverage. For example, heavy industrial

equipment manufacturers use cellular connectivity to perform live collaboration from the field when

they need help repairing equipment. Deferred collaboration is another possible alternative to a live

video session. When access to the Internet isn’t available or other challenges arise, such as problems in

connecting with experts due to time zone differences, the video devices can record to a local SD card.

The recording can be uploaded to a shared directory for the remote expe rt to access later, or the device

operator can share the recording in a deferred live collaboration session with a remote expert. While

the recording is playing, both parties can still talk, telestrate and share images in a fully interactive

deferred session.

Extend Existing Video Infrastructure

For organizations with investments in meeting room video infrastructure such as Cisco TelePresence

suites or Tandberg videoconferencing rooms, mobile collaboration solutions become immediate

extensions. The mobile devices and collaboration software use the same industry-standard protocols

and media Codec’s as the room-based video technologies. For manufacturers, that means that these

mobile devices can immediately deliver a “live feed” from the plant floor or the fi eld to add value to

traditional face-to-face video meetings. In addition to face-to-face video rooms, mobile collaboration

sessions can also be shared with multiple experts on their desktop computers. This “one -to-many”

experience can be provided in many ways. One method is to simply call another desktop that has the

collaboration software loaded. In this case, the additional experts can interact fully with capabilities like

telestration and image sharing. Another way is to launch an online meeting tool such as Cisco WebEx.

With this method, colleagues, suppliers or customers can be brought in to a collaboration session for

ad-hoc meetings very quickly. With the advent of mobile technologies, securely extending the power of

video collaboration across a manufacturing enterprise is now a reality. Manufacturers have proven that

mobile video helps reduce downtime, drive quality improvements, accelerate product delivery, leverage

experts and eliminate unnecessary travel.

Video is now an essential component of interaction between manufacturing facilities, suppliers,

customers and OEM vendors. For many manufacturers, engaging in a video collaboration session has

become as simple as making a phone call.

11. Appendix 1 – Survey Questionnaire

1. Looking ahead to the future what is your organizations top priority?

a. Improving business processes

b. Reducing enterprise wide operating costs

c. Attracting and growing customer, relationships

d. Supporting competitive advantage

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e. Don’t Know

2. Do you think that in today’s fast paced world a telephonic conference call is an inefficient &

outdated mode of business communication?

a. Yes

b. No

c. Don’t Know

3. Do you agree that ideal business communications should be personal, interactive, and

accommodate both data and face-to-face (high quality audio/video) information sharing?

a. Agree

b. Disagree

c. Can’t say

4. Does a face to face meeting deliver a greater impact on the decision making process?

a. Yes

b. No

c. Don’t Know

5. What’s the potential of high-end video collaboration in US markets?

a. High

b. Medium

c. Low

d. Don’t know

6. What according to you is the most important advantage of video communication? (Select all

that apply)

a. Messages are easier to understand

b. Enables quicker decisions

c. Builds high trust

d. Makes negotiating easier

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e. Reduces confusion and misunderstanding

f. Makes people more accountable

g. Better for detailed explanations.

h. Others (Please Specify)

7. According to you what is the most important criteria for video solutions in your place of work?

a. Reliable

b. Scalable

c. Usability and Manageability

d. Others (Please Specify)

8. Every organization has a comprehensive strategy for email, voice and other communication

systems; do you think that in moving with the times, video should also be included in that

strategy?

a. Yes

b. No

c. Don’t Know

9. What does your video communication system need to do, for each set of users?

a. It should act like a phone

b. A PC monitor

c. A stand-alone system

d. All of the above

10. Do you think that in comparison to normal video communication services an HD video and

audio embedded into a communication system will create a significant impact in terms of

improvement in business?

a. Yes

b. No

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c. Don’t Know

11. On demand business communications and video collaboration can spur growth, boost

productivity and significantly cut operating costs. Do you agree with this statement?

a. Agree

b. Disagree

c. Can’t say

12. Video communication and collaboration in an organization is ……

a. Competitive advantage

b. Business glamour

c. Both

d. Neither

13. Are data, voice collaboration and instant messaging (IM) or presence required?

a. Yes

b. No

c. Don’t Know

14. Do you think that web collaboration is a necessity in today’s business world?

a. Yes

b. No

c. Don’t Know

15. Does your organization network have adequate bandwidth for video?

a. Yes

b. No

c. Don’t Know

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16. Does your video solution provide access to the 3G network?

a. Yes

b. No

c. Don’t Know

17. Is your organization planning to increase the productivity of its mobile work force?

a. Yes

b. No

c. Don’t Know

18. Is video collaboration and communication it meant only for large organizations with huge travel

budgets?

a. Yes

b. No

c. Don’t Know

19. What do you think should be the ideal turnaround time for return of investment on a Video

communication and collaboration system?

a. Less than 12 months

b. 12 to 18 months

c. 18 to 24 months

d. Above 24 months

20. How do you think organizations will benefit by installing Video communication and

collaboration systems? (Select all that apply)

a. Faster decision-making

b. Improved employee morale

c. Improved access to the best talent

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d. Reduced time to market

e. Better customer responsiveness

f. More efficient work practices

g. Greater focus on results overall

h. Others (Please Specify)

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12. Appendix 2 – Survey Results

Primary research was conducted with professionals working in manufacturing industry in US to get first-

hand account of manufacturing organizations use of video collaboration and quantify the potential

productivity benefits that can be achieved from the use of this technology. The research was conducted

through an online survey. The results of primary research are being analyzed in this section.

40% of respondents think that their organizations top priority for the future is attracting and growing

customer relationships.

Exhibit: Organizations priority for the future

20% 20% 20%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Improving business processes

Reducing enterprise wide operating costs

Supporting competitive advantage

Attracting and growing customer, relationships

% of respondents

of 42

Majority of the respondents think that a telephonic conference call is an inefficient & outdated mode of

business communication.

Exhibit: Perception of telephonic conference calls

90%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No

% of respondents

70% of the respondents think that the potential of high-end video collaboration in US is high.

Exhibit: Potential of Video Collaboration in US

70%

20%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

High Medium Don’t know

% of respondents

of 42

70% of the respondents think that using video communication tools will reduce confusion and

misunderstanding while interacting, it will build greater levels of trust & it will enable them to make

quicker decisions.

60% believe that using video communication tools will enable them to make negotiating easier.

Exhibit: Advantages of Video Communication

40%

50%

70% 70%

60%

40%

70%

0%

20%

40%

60%

80%

% of respondents

of 42

According to 40% of the respondents ‘Usability and Manageability’ as well as ‘Reliability’ are the most

important criteria for video solution in an organization.

Exhibit: Most important criteria for video solution in an organization

40% 40%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Reliable Usability and Manageability Scalable

% of respondents

40% of the respondents need their video communications system to act like a phone, a PC monitor and

a stand-alone system all rolled into one.

Exhibit: User Requirements for their video communication systems

30%

20%

10%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

It should act like a phone

A PC monitor A stand-alone system All of the above

% of respondents

of 42

Majority of the respondents think that an HD video and audio embedded into a communication system

will create a significant impact in terms of improvement in business.

Exhibit: Will HD video and audio embedded into a communication system improve business?

80%

10% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No Don’t Know

% of respondents

40% of the respondents say that Video communication and collaboration in an organization is both a

competitive advantage as well as business glamour where as 40% say that it is purely a competitive

advantage.

Exhibit: Perception of Video Collaboration and Communication

20%

40% 40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Business glamour Competitive advantage Both

% of respondents

of 42

70% of the respondent’s organization has adequate bandwidth for video.

Exhibit: Does your organization network have adequate bandwidth for video?

70%

10%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No Don’t Know

% of respondents

50% of the respondents think that Video collaboration and communication is meant only for large

organizations with huge travel budgets.

Exhibit: Is Video collaboration and communication it meant only for large organizations with huge

travel budgets?

50%

40%

10%

0%

10%

20%

30%

40%

50%

60%

Yes No Don’t Know

% of respondents

of 42

40% of the respondents think that the ideal turnaround time for return of investment on a Video

communication and collaboration system should be between 18 to 24 months.

Exhibit: Ideal turnaround time for return of investment on a Video Collaboration system

30%

20%

40%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Less than 12 months 12 to 18 months 18 to 24 months Above 24 months

% of respondents

of 42

80% of the respondents think that by installing Video communication and collaboration systems

organizations will benefit by reduced time to market where as 70% think that the primary will benefit

will be faster decision-making.

Exhibit: Perceived Benefits

70%

50%

80%

60%50% 50%

30%

0%

20%

40%

60%

80%

100%

% of respondents

An overwhelming 90% of the respondents agree that ideal business communications should be

personal, interactive, and accommodate both data and face-to-face (high quality audio/video)

information sharing.

All the respondents are in complete agreement that video should also be included in an organizations

comprehensive strategy similar email, voice and other communication systems strategy.

90% of the respondents agree with the statement “On demand business communications and video

collaboration can spur growth, boost productivity and significantly cut operating costs”.

70% of the respondents believe that face to face meetings deliver a greater impact on the decision

making process.

More than half of the respondent’s organizations are planning to increase the productivity of its mobile

work force.

Majority of the respondents feel the need for data, voice collaboration and instant messaging (IM).

90% of the respondents think that web collaboration is a necessity in today’s business world.

Half of the respondent’s organizations video solution provides access to the 3G network.

online video collaboration for manufacturing industry - full report

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