This question has been asked seriously for at least the last five years, however, technology and cheap flights have turned back the tide. Until now. Today it seems there is a palpable buzz for video conferencing. New programs that compare the costs of video vs. travel, tighter travel budgets, international flu epidemics, environmental pressures and better, cheaper video technology are moving us closer to a tipping point.
Scientific American, earlier this year, focused a story on the realities and improvements to video conferencing. They provided example after example of folk using video techonology and eschewing travel.
Several companies, including Cisco Systems, LifeSize, Polycom and Siemens, among others, have been working on such technology for years—and the cost-cutting reality of the present economic crisis is helping to speed its adoption. It is unlikely that videoconferencing can replace all travel, but organizations are turning to it more and more as the technology’s downside—shaky connections, dropped calls and disorienting lags—largely has been eliminated.
The story went on to discuss changing economics and the affordability of video conferencing as well as the lower-tech versions of the technology such as that found with skype or google video chat. These high- and low-tech video solutions are already starting to change many procedures in medical care and law enforcement.
The Harvard Business Review discussed specifically the impact of video conferencing on business travel and diminished use of business class travel. Both Cisco and Hewlett-Packard have seen 30 percent growth in their video conferencing sectors over the past year.
The business of telework is interesting to me on two levels. First, from the customer’s side, even though the upfront investment is not small, it clearly saves a lot of money. Telework also represents a great way to show your most harried and valued employees that you care both about their life balance AND about greening your business.
But second, from the perspective of the suppliers of these technologies, the story has some interesting strategic angles. With their pitch of reducing travel, who are Cisco, HP, and the others truly competing against? The phone? No, they’re going after the airlines — and targeting their best, most frequent, business-class customers. Do you think the airlines ever thought they’d be competing with IT companies?
A New York Times article adds a more personal voice to the adoption of video conferencing. The artcle notes that video technology is getting so good that even skeptics forget they are interacting thousands of miles apart from each other.
This advancement of video conferencing has been continuing under the radar screen as the technology slowly but surely improved.
The emerging trend, analysts say, goes well beyond a reaction to rising travel costs and a weakening economy. “These technology tools are going to change the way corporations think about travel and work in the long run,” an analyst at Forrester Research, Claire Schooley, said.
Past predictions that technology could replace travel have been frequent and premature. The main difference today, analysts say, is that the technology is finally catching up to its promise. No single breakthrough explains the progress, but rather a series of step-by-step advances — and steady investment — in telecommunications networks, software and computer processing.
More and more, business travel does not only need to be justified in terms of the bottom line but also in terms of the environment. Furthermore, recent health factors such as H1N1 (swine flu) has made video conferencing an even more compelling alternative to face-to-face meetings.
Much of the routine travel is predicted to be shifted to video conferencing systems — either with dedicated high-tech telepresence videoconferencing operations or simpler solutions.
From the major corporate travel agent market, American Express is developing a service that will calculate costs of myriad corporate options and requirements. The new American Express system will advise during the trip booking process when teleconferencing can be more economical than boarding an aircraft.
This competition between the airlines and videoconferencing technology will continue to intensify in the coming years. It is a battle that the airlines can’t win.
Airlines will have to develop a new revenue model that does not depend so heavily on business-class and first-class travelers for their profit margins. Someday, we will look back on the airline ads for luxurious sleeper seats and airborne suites with the same nostalgia that we view ads from pre-airline-deregulation days.
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Is this some sort of “news”? Didn’t we hear this the 4th quater of 2001 and into the first two quarters of 2002? And it was expense related – not just “safety”…… As soon as businesses feel that it makes sense to travel again, they will.
DCTA. I started the post out with the fact that this is well-worn news. The point here is that the technology has changed to a point that companies are now using videoconferencing more and more. Plus, it is real news that corporate travel software is now considering videoconferencing as an alternative to travel and that videoconferencing has become an integral part of the decision-making matrix. I’m not so sure that business will jump at traveling when they have far more affordable videoconferencing availability.
Charlie – before beiong a TA, I was a Hospital Administrator – we were video-conferenceing then (1995) but nothing beats a face to face meeting in Amman….. I certainly do believe that business travel will bounce back. further to that – the Agency that I work for has a large contingent of business travellers and of those, many are Government Contractors – they never stopped traveling. While the national average drop in business travel last Spring (April/May ‘09) was something like 18%, here is was about 7%. I forsee teleconferencing for “intramural” meetings – within an organization – growing, but contractors to clients – no, I think face-to-face will bounce back.
For meetings with clients, I’d agree nothing beats a firm handshake and a face-to-face meeting, but internally that’s become an expensive luxury.
At my firm we do a lot of video conferencing between our NYC HQ and office in LA, London, and such, but when it comes to meeting with clients it’s done in person for the most part, with some video conferences for established clients.
Video conferencing means you don’t get an order, in my experience. If you are not going to pick yourself up and see a customer eye-to-eye, it is so much easier for them to turn down your proposal. If you aren’t going to see your important clients, you might as well have that going out of business sign made. In this day and age, we have to work even harder for the business we get.
Once you’ve met the people and shaken hands and established a relationship, video conferencing can be extremely useful for interim meetings. I don’t think they will become a substitute for pressing the flesh and looking people in the eyes – and not on camera.
I am not sure whether I see video conferencing as an adjunct to in-person visits or vice versa, but while video conferencing has its place I do not think it will ever fully replace in-person visits. Video conferencing is typically far too structured (which can be an advantage) and does not permit the all-important one-on-one contact which is a significant part of any conference or meeting.
I particularly liked Janet’s comment “If you aren’t going to see your important client’s…”
Apparently Airbus and Boeing agree as they both announced this morning that they are ramping up production….