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02/08/2010

Why Video Conferencing Needs a Better Story

By now we know a lot of details about why HD voice calls are better than conventional phone calls. We've heard how the PSTN cuts off much of the audio range human conversation usually employs, making it hard to distinguish between fricatives such as s and f, and to understand people with different accents. We know that straining to fill in the words and phrases we can't understand produces listener fatigue and makes conference calls an ordeal.

All this information is evidence that the HD voice promoters have done a good job of getting the word out about their favored technology. But we don't have the same kind of information about why video calling is better than voice calling. The general assumption seems to be that everyone understands the benefit of video communication intuitively. In reality, understanding is limited, because detailed information is in short supply.

A recent survey put out by Global IP Solutions (GIPS) made a start towards rectifying that shortfall. The survey, conducted by Research Now, polled 1,200 business professionals in the U.S. and Asia. It asked whether they had used Web or desktop video chat or conferencing, and what types of video solutions they used. It also asked them how they considered video communication to be helpful, as well as about problems and concerns with the technology.

The survey revealed substantial cultural differences among the countries involved, which were the China, Japan, South Korea and the U.S. More important, though, it went beyond the standard pitch for video conferencing, which is that it produces big savings on travel costs during the recession. That's a savvy pitch, because it's easy for purchasing decision-makers to comprehend. But if it's the only pitch, it misses many factors that could make the video communication story more compelling.

Where the survey does mention reduced travel, it does so from the user's point of view. Specifically, it focuses not on cost savings, but on time savings. That's not to say that saving time doesn't save money, it's just harder to measure such savings than, say, those resulting from eliminating air fares and hotel bills. Either way, the value of spending less time traveling is obvious to overworked employees. In particular, the survey found it was the most important benefit of video communication to users in South Korea, where traffic jams make getting around even within cities an ordeal. But users in all the surveyed markets considered reduced travel time one of the most helpful results of communicating by video.

At the same time, users in all the markets found three factors involving inter-personal relationships to be collectively more important than travel as reasons to use video. The factors were: clear communication and understanding, understanding subtle cues, and building relationships. These are of course just the kind of reasons that bottom-line-oriented executives love to shoot down. But that might be less likely to happen if the executives had been hearing messages as precisely targeted as those promoting HD voice.

Some insights from Scott Wharton, CEO of video conferencing provider VidTel, may point the way to developing such messages. Wharton recently described some specific ways in which his company has found video makes communication more effective. One is that it helps get emotional content across more clearly, which is especially useful when giving employees either positive or negative feedback, i.e. praise or constructive criticism. It is also, Wharton added, a good way to get someone's undivided attention: Multitasking, by chatting, emailing or accessing Web sites during a call, is difficult while one is visible to the other callers. Video conferencing may in fact conceivably shorten meetings by forcing everyone to concentrate. And there are undoubtedly plenty of other such specific benefits waiting to be identified.

An increased emphasis on such benefits could make the case for video communication stronger than it has been to date, showing that the technology has actual worth, even if it's not necessarily easy to measure. After all, just because it might take a complex consultant study rather than a simple spread-sheet calculation to pin down the dollar value of improved inter-personal communication doesn't meant that the value isn't real.

Comments

Robert: Excellent post and very valid points raised, particularly about placing value outside of hard numbers (ie. travel costs). While managing emotion-driven discussions are best done when one can watch body language, it is so true that the bean counter will lose interest in this quickly.

It may be that not until we see re-worked packaging/messaging (from the video conferencing leaders) that clearly focus on non-travel business processes, will we this change. Or until we see third party companies evolving that sell - for instance - 'selling' or 'hiring' software that happens to be powered by video.

We are seeing this shift in voice. Where once buyers were sold minutes of voice communications (and bought it on savings only), now buyers are increasingly offered packaged services that address business processes (ie. Ifbyphone for automating Marketing; or SayHired for automating phone screening). The buyer is no longer buying minutes, but improved business processes that in some way save or make them money - that are powered by voice.

I expect this similar evolution in video, although not soon. For the moment (and rightfully so) the sellers are focused on travel savings because it works. And we'll need companies like VidTel to expose interoperability to allow for true user-to-any-user video.

Thanks for the post.

While I do see where you're going with it, and even share your view (I am using such systems myself, coming from a company that develops video conferencing infrastructure and endpoints) - I don't like that last one - the lack of multitasking that comes with video conferencing.
That said, I don't really see that much, as I tend to decide on each interaction if it is going to be a video call, a voice call, an instant message or a simple email.

Tsahi

Great points and I agree that video offers substantial benefits for some meeting situations. With that being said you must understand your client on the other end of the line (as said in the comment above). If the relationship warrants, there is no substitute for an in-person meeting. Most times a call will suffice.

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Resources

  •     A selection of free documents for download to help make purchasing decisions when shopping for a business phone system.
  •      Get customized price quotes on a business phone system from top vendors.

Reports

  • SMB Video Conferencing: Getting Beyond Clouds & Interoperability
         This 31-page VoIP Evolution report provides an in-depth analysis of a market that has suddenly become very competitive. It identifies and dispels some of the misconceptions that have become part of the conventional wisdom surrounding SMB video conferencing. Chief among these are unrealistic expectations regarding the cloud approach and interoperability.
         The report provides an innovative approach to analysis by illustrating that these issues are just two of many important factors that differentiate solutions from one another. The report surveys 10 Companies to Watch and compares 16 cloud solutions using a unique Differentiation Matrix that clarifies their strengths and weaknesses.

  • Voice Over LTE: More Pitfalls Than Promise for Now
        This 18-page Heavy Reading Insider report, written by Robert Poe, analyzes the prospects for delivery of voice calls over cellular networks using LTE (long-term evolution) 4G wireless technology. Operators are originally looking to use LTE mainly for mobile data services, since a number of technical issues make delivering voice traffic over LTE complicated. The report describes the various options available to operators, and explains why they are likely to move to voice over LTE later rather than sooner. Information about the report is available at Heavy Reading 4G/LTE Insider.

  • Making HD Voice Happen: Choosing Codecs, Connecting Islands
        This Heavy Reading Insider report by Robert Poe evaluates the impact HD voice will have on voice services providers ranging from traditional telcos to cable MSOs to cellular carriers to VoIP operators. The 20-page report also analyzes the role vendors' and providers' choices of codecs will play in ensuring that HD voice services can be delivered end-to-end, rather than only within individual providers' or enterprises' networks. It also surveys the HD voice efforts of 14 vendors.
        Information about the report is available at Heavy Reading Insider. A column about the report is available at Light Reading.

  • Disruptive VoIP Services: What Carriers Need to Know
        A report by Robert Poe for Heavy Reading, analyzing the innovative VoIP services with the most potential to disrupt the telecom services market over the next three to five years.
        The 57-page report describes the changes VoIP innovation brings to telephony models, practices and concepts. It identifies 17 categories of potentially disruptive VoIP services, and analyzes their potential impact on the market. It also profiles 50 potentially disruptive companies and services.
        Information about the report is available on the Heavy Reading Website. Coverage of the report is available on the Light Reading Website.


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