online video collaboration for manufacturing industry - summary report

Video collaboration - Manufacturing© Abhizar Bootwala

Video Collaboration - ManufacturingJune 2011


Key enterprise video collaboration technologies

2

Technology Description

Desktop Videoconferencing This is live video and audio two way interaction using a laptop / desktop

HD room-based

Videoconferencing

Similar to Desktop videoconferencing except that the interaction happens using

HD in-room platforms (cart-based or stationary), with HD cameras and large

displays

Mobile Videoconferencing This is live video and audio two-way interaction using smartphones of tablets

Telepresence “Live, interactive, two-way video and audio telecommunication that emulates in-

person meetings with life-size images of remote participants. Specially

constructed Telepresence rooms provide the lighting, sound, acoustics,

furniture, and ambiance of a face-to-face meeting experience.”

Webcasting “Solutions to broadcast live events over the Internet, to archive and manage

those recordings, and play them back. Webcasting solutions may incorporate

different presentation mediums such as slide decks and interactive features

such as chat and polling.”

Technologies are at different stage of adoption. Some such as desktop video conferencing are already popular while others such as telepresence are gaining popularity

Technologies are at different stage of adoption. Some such as desktop video conferencing are already popular while others such as telepresence are gaining popularity

Source: Forrester Research, analysis


Market size and forecast – enterprise video collaboration

3

3.0 bn 5.1 bn 6.9 bn

Worldwide Enterprise Videoconferencing Revenue (in % and USD mn) Share by Region

Largest market share at present and expected to maintain lead in 2015.

2nd largest, but slowest growth rate

3rd largest, but expected to overtake EMEA

Smallest but fastest growing

17.8 %

17.5%

18.4 %

26.6 %

18.4 %

CAGR

North America will continue to be largest market, followed by EMEA and Asia Pacific. Highest growth opportunities are expected to be in Caribbean and Asia Pacific market.

North America will continue to be largest market, followed by EMEA and Asia Pacific. Highest growth opportunities are expected to be in Caribbean and Asia Pacific market.

Source: IDC, analysis


Top Pressures for Video Collaboration

4

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

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

Source: Aberdeen Group, January 2011


Video as a Pervasive Tool

5

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.

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.

Source: Aberdeen Group, November 2010

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%

Departments Identified as Using Video Collaboration


Growing Awareness of Collaboration Tools

6

Awareness of Communications and Collaboration Tools (N=102)

An end user survey of C-level executives indicates that the awareness for collaboration tools is high, an overall positive indication for the collaboration industry.

An end user survey of C-level executives indicates that the awareness for collaboration tools is high, an overall positive indication for the collaboration industry.

Source: Frost & Sullivan


Growing Importance of Collaboration Tools

7

Importance of Communications and Collaboration Tools (N=102)

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.

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.

Source: Frost & Sullivan


Market Size and forecast – telepresence

8

Worldwide Telepresence Revenue ( in USD mn) and share (in %) 2010-15

12.7%

28.0 %

18.4 %

CAGR

Telepresence is expected to drive the enterprise video collaboration market during 2010-15Telepresence is expected to drive the enterprise video collaboration market during 2010-15

3.0 bn 5.1 bn 6.9 bn

Source: IDC, analysis


Key Telepresence Competitors Positioning

9Source: NetworkWorld

Cisco LifeSize Polycom RADVISION VidyoExtend 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 over IP and 3G networks.

Enabling multi-party HD-quality video conferences over regular 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.


Key video collaboration market facts and trends

• Desktop video conferencing is one of the most popular technologies

• Video conferencing is mostly used by management and managers

• “Telepresence” is misunderstood and misinterpreted by users

• Video collaboration adoption expected to follow a pyramid with

desktop / mobile at base, room based solutions in the middle and

telepresence at the top

• Video-as-a-service is gaining popularity

• Currently there is low utilization rates of installed systems, thus

increasing penetration is tough

• Market consolidation is underway

10Source: Primary Survey, internet research and analysis


Key video collaboration vendors

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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 √

Players with multiple offerings

Source: Forrester, internet research and analysis


Manufacturing View on Video Collaboration

• Majority of the respondents believe that face to face meetings deliver a greater

impact on the decision making process.

• Majority of the respondents think that a telephonic conference call is an inefficient

& outdated mode of business communication.

• 70% of the respondents think that the potential of high-end video collaboration in

US is high.

• Majority 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.

• According to 40% of the respondents ‘Usability and Manageability’ as well as

‘Reliability’ is the most important criteria for video solution in an organization.

• 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.

12Source: Primary Survey and analysis


Manufacturing View on Video Collaboration

• Less than half of the respondents say that video communication and collaboration

in an organization is both a competitive advantage as well as business glamour.

• Most of the respondent’s organization has adequate bandwidth for video.

• Half of the respondents think that Video collaboration and communication is

meant only for large organizations with huge travel budgets.

• 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.

• Majority of the respondents think that by installing Video communication and

collaboration systems organizations will benefit by reduced time to market.

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

in an organizations comprehensive strategy similar to email, voice and other

communication systems strategy.

13Source: Primary Survey and analysis


Manufacturing and video collaboration – key benefits

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1. Improved Operational Efficiencies2. Remote (Manufacturing) Site

Control3. Improved Quality Assurance 4. Real-time Supply/Inventory

Management5. Green initiatives

1. Improved Operational Efficiencies2. Remote (Manufacturing) Site

Control3. Improved Quality Assurance 4. Real-time Supply/Inventory

Management5. Green initiatives

Shortened time-to-manufacture,

improved cost control without sacrificing

quality

Shortened time-to-manufacture,

improved cost control without sacrificing

quality

Source: Polycom, internet research and analysis



15

Problem Online video collaboration and communication

Benefit

Product development program has potential for a slippage resulting in delays.

Can reduce product development delays through effective communication and collaboration.

Reduction of Product Development Delays

Steady flow of new products - Issue results in a product development delay - Delay in market introduction.

Can solve these issues through real time communication via video

Reduction of Time-to-Market Delays

Production down time is very expensive for manufacturers.

Through remote troubleshooting, consultation with a remote expert and rapid inspection of a new batch of parts that may be rejected unnecessarily.

Reduction of Production Down-Time

Problems require an experienced senior engineer or production specialist making long trips to where the problem or issue is.

Can eliminate the cost of expensive and often last minute travel as well as the lost productivity associated with it.

Avoidance or Reduction of Travel Costs

Source: Polycom, internet research and analysis



16Source: Polycom, internet research and analysis

Problem Online video collaboration and communication

Benefit

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

Can to help avoid these costly errors and act as "insurance" against negative surprises.

Scrap Reduction

many businesses choose to make improved customer satisfaction one of their top priority metrics.

Can improve an organizations ability to be responsive to its customers, especially for complex products that involve extensive support.

Improved Customer Satisfaction

Slippages in product launch dates can be very damaging to an organization's credibility.

can reduce the likelihood or length of such slippages.

Improved Market Credibility

Some manufacturers penalize their suppliers if late or defective shipments halt production on their line which can result in penalties that from $100s to $1000s per hour.

Can rapidly deal with production line problems as they occur can save valuable time and help avoid these charges in many circumstances.

Avoid or Reduce "Standing Army Costs"


Application of Video Collaboration in Manufacturing

17Source: Polycom, internet research and analysis

Offshoring/Line Efficiencies Supply Management Customer Service Telemedicine

In offshore locations, improving the manufacturing build process results in reduced costs and operational efficiencies.

For optimal profitability, most manufacturers can benefit from better inventory management and more accurate supply and demand forecasting.

Manufacturers are continuously looking to improve customer service and increase customer satisfaction.

Manufacturing sites are home to many workers. There is usually scant access to more sophisticated medical professionals and services.

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.

Real-time video and voice collaboration solutions keep information flowing between manufacturing locations, suppliers, vendors and customers.

Collaboration solutions are used to enhance a manufacturer's interface with customers in the repair process for visual diagnosis, engineering assistance or instructional support.

When a worker is ill or injured at site, time involved in moving him to a medical facility could mean the difference between life and death.

As a result, organizations enjoy improved yields, shorter development and build times and reduced costs.

Better information leads to faster response to market and sounder upstream and downstream supply management.

This leads to enhanced satisfaction and shorter repair times.

Video offers instant access to medical experts to diagnose the patient quickly and effectively.


Challenges and success requirements

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• Challenges

– Changing end-user behavior

– Interoperability issues

– External deployments

– Low utilization rates of existing systems

– High bandwidth requirements

• Success requirements

– Enhance customer experience

– Start small, capture desktop space first

– Product design considering bandwidth usage

– Video-as-a-service

Source: Internet research and analysis

online video collaboration for manufacturing industry - summary report

Devices & Hardware