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
conferencingrevenues. Telepresence marketisexpectedtoshow significantly faster growth at a CAGR
of 28% duringthe forecastedperiodof 2010-15. The marketsize 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,videocollaborationisusedbytopmanagementandmanagers.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 steady state. For
everyimmersive 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
 Videocollaboration/Telepresence marketisconsolidatingandexpectedtofurther consolidate
in future
Key Players in Telepresence:
Key market players in the Telepresence market are:
 Hewlett-Packard
 LifeSize Comm.
 Polycom
 Tandberg (Cisco)
 Magor
Basedon a researchby Gartner,Ciscois the mostpromisingfirmin Telepresence space followedby
PolycomandTeliris.
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 succeedinthe market,vendorswill have tomake sure thattheirsystemsare easy to use and deliver
quality.Vendorsshouldalsoaddress 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
Throughcollaborationsolutions voice communications,videoconferencingand wirelesstelephony will
helpturnthese challenges intokeydifferentiators.Thiswill enable manufacturers tobe more efficient,
more effectiveand,ultimately, more competitive.
2. Introductionto Video Collaboration
Large companies with project teams spread over several countries and multiple time zones are
increasinglyturningtovideoconferencing to connect geographically dispersed groups. Companies are
realizing that flying employees from one location to the next not only chalks up travel costs, but also
decreases productivity and leads to team exhaustion.
Of course,videoconferencingisn’tacomplete replacement for face-to-face meetings. Companies that
are leadingthe wayinvideoconferencing 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 prohibitiveandcomplex,today’ssystemsare makingface-to-face communications available
to everyone.The trendtowardIP-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
conferencingovertheir 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 collaborationvendors,nowthe challenge isto provide a unified experience to the users. They will
have to take islandsof conferencingtechnology--audio, video and Web collaboration--and unify them
intoa conferencingexperiencethatletsanyone joininatanytime,fromanywhere and via any network
connection.The videoconferencingindustryneedstomove intothisunifiedmessaging 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
videowindowsdisplaying 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
showa prototype,ananimatedproductdesign,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 canbe taped,storedforreference,andmade available viastreamingto those
whomissedthe real-timevideomeeting.Manycompaniesuse 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
collaborationbygeographicallydispersedteamsand the need to control increasing travel costs. These
twopressuresmade sense consideringthe 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)
PercentageofRespondents
Real-timecollaboration
forgeographically dispersed
teams
Increasingtravel costs
Source: Aberdeen Group, January 2011
Videoisstill seenasastrongcollaborative tool, but over the past two years, travel costs are perceived
as onlyone of several core businesspressuresfor pursuingvideocollaborationinthe 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 numberof newpressuresemerged in Aberdeen's November 2010 benchmark on the video frontier.
Respondentstothissurveysoughttouse videotoimprove productivity,increaserevenue,and improve
the product development and delivery cycle. As companies have shifted from 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
changestooka numberof differentforms,since videowasusedina number of different departments.
Exhibit: Departments Identified as Using Video Collaboration
Department Percentage of Respondents
Executive Teams 62%
InformationTechnology 50%
LearningandDevelopment 38%
Business-to-BusinessSales 34%
Productand Service Development 31%
ProjectandPortfolioManagement 30%
SupplyChain 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,managementcapabilities 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,
supplychainmanagement,learninganddevelopment,talentacquisition,and/or projectmanagement.
Two yearsago,use casesof videoinsupplychain and service departments were few and far between,
because of the challengesinimplementingvideocollaboration 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
Whenwe thinkof collaborative applications,we oftenthinkof large companieswithfar-flung locations
and herdsof 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), instant
messaging,sharedworkspaces,wikis,blogs,andunifiedmessaging,accordingtoNemertes’Buildingthe
Successful Virtual Workplace benchmark. How do these tools make location irrelevant? Small
businessesthatdon’tneedtohire employees in a particular geography can now select from a broader
pool - eitherwithinalarge city,state orprovince,country,orevenmultiplecountries. 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
linksare destinedtofail.Butbuildinthe processes(nosmall feat, by the way) using the right means of
communications,andthe virtual workplace becomeshugelysuccessful. For example, small businesses
with20 employeeslocatedin,say,home officesorsmall branchofficesin10citiesmustconductregular
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
togethertomodifythe presentation,worksheet,ordiagraminreal-time - withthe input of their peers.
The productivity improvements continue.

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These technologies can extend to product development, design, engineering, or manufacturing -
enablingsmall businessestocompete 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 CollaborationandCorporate Objectives
Videocollaborationgoesastepbeyondvideoconferencingtoactuallybecome 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
employeestobecome more productive.Insome 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,companiescanoffsetmarginshrinkage by reducing production costs. Also, a
multinationalentertainmentcompanywasable toincrease productivity of its employees using
videoconferencing to deliver a faster turnaround of projects requiring review by top-level
management.The company’sproposalswere reviewedand 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 understandingof andtractionfor themcan be difficultamongthe employeebase.Videois
unique as a collaboration work tool in that actually using it can help demonstrate, in a very
tangible manner,itsadvantages.Forinstance,DHLnotedthat 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 withlocal offices,fosteringanunderstandingof how toadjustproductmarketingto 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
videoenabled 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 barriersto enable all partiestoresolveadispute inacollaborative manner, saving time

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and increasingthe agility of companies during the innovation process The ability to jump on a
videocall withacustomerand experience the entirecontinuum of speech, gestures, and facial
expressionsenabled 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. HowBusinesses Benefit from Video Conferencing
As we’ve learnedfromthe discussions inthe previoussection of corporate objectivesandglobalization,
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
communicationsinamuch more external orcustomer-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
organizationandthe customerbecomesmuchmore collaborative.Problemsandconcernsare solvedas
if both are part of a team located in the same place and able to have an open and frank dialogue. Guy
Welty,managerof global medianetworks 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
usersof videoconferencing,accountingfor75% of the company’stotal usage. The company outsources
some of the manufacturing processes to a plant in Asia, enabling 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,gettheirfeedback,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 time many corporations have
moved from linear to serial development processes, creating an efficient yet highly complex process
that breaksdevelopment 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.Issuessuchasengineeringreviewsof sub-processesmustbe completedprior to a final

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productbeingbroughtto market.All teamsmustbe keptinformed, especially those that are scattered
across the world.
A global pharmaceutical concernfoundthatthe 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,nomatterwhere the expertresided.The researchanddevelopmentteam that created the new
drug thenusedvideotoconveythe drug’sbenefitstothe company’smarketingteam 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 resourcesalsobenefitsfromusingvideotoenable better communications and facilitate better
hiring.SABMillerusesvideoconferencingtoallow employeestointerviewforpositionsinotherbusiness
unitswithinthe companywithoutdrawingattentionfromcurrentsupervisorsandplacingemployees 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?
Whenthinkingaboutvideoconferencing,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
videoconferencinghascome alongway since itwas firstdemonstratedinthe 1960’s,and in the lastfive
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 invideoconferencing,aside fromthe costsavingsand reduced carbon footprint that it brings.
Researchhasfounda 30% increase inproductivityascompanies started delivering a faster turnaround
of projectsasvideoconferencingtookplace inmeetingsthatnolongerhadto be deliveredin 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 inresolving disputes faster as videoconferencing cut-through cultural and language barriers.
Researchhasshownconsistently,throughcustomerexamples,thatvideoconferencing has emerged as
an importantcollaborativeandindispensabletool thatcanremove 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 HDvideoconferencingsystemsbecoming 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 recentemergence of ‘telepresence’where end users experience a realistic meeting by combining
very-high-qualityaudioandvideocommunications within two nearly identical physical environments,
show that the videoconferencing future is here.
6. The Telepresence Factor
Like mostnew(andexpensive)technologies,telepresence isgainingthe attentionof 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,
ambitiouspeople mustmove tothe corporate locationif theywant 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
individualsstill needtomove tolocationstheymaydislike workinginanatmosphere filledwithpolitics?
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 roomsare engineeredtomake each participantfeel asthoughhe/she is sitting at a
table withall of the people onthe conference.Forexample,the tableonthe real worldcontinuesatthe
same height and in the same color as the table in the virtual world. People are the actual size they
wouldbe if theywere inthe 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,whichrelyuponhigh-definitionvideo,high-speednetworks, and wall-size video
screens, produce an environment that make meeting participants feel as though they’re in the same
room,across the table fromone another.Theyhave advancedtraditional videoconferencingsystems 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, organizations 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
hundredsorthousandsof locations) is whether it will ever be affordable enough for branch locations.
The answer would be yes.
Like mostnewproductlines,the technologywill 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
projectingfromanaudiobridge,theywill be avisible 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 videoconferencingrevenues. Telepresence market is 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
accompanyingvideoequipment,tobecome affordable.None of the vendorsinthisspace are marketing
the equipment to branch offices today, but you can bet they will as the technology becomes more
prevalent.
Exhibit: Key Telepresence Competitors Positioning
Cisco LifeSize Polycom RADVISION Vidyo
Extendand
improve
collaborationwith
customers,
partnersand
prospects.
Best
Performance
Architecture
at any
bandwidth.
Worldleaderin
Unified
Communications
fromdesktopto
immersive
telepresence.
Leading
providerof
productsand
technologiesfor
unifiedvisual
communications
Enabling
multi-party
HD-quality
video
conferences
overregular
In 2015,
Telepresence will
accountfor 43%
of revenues up
from 28% in 2010
3.0 bn 5.1 bn 6.9 bn

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overIP and3G
networks.
IP networks
using
commodity
desktop
systems.
Tandbergnow
part of Cisco
poweringthe new
wayof working
where everyone,
everywhere can
be more
productive
throughface to
face
communication.
Only
architecture
with
Adaptive
Motion
Control for
real time
protectionof
visual
motionand
clarity.
Polycom’sOpen
Collaboration
Networkgives
youthe
flexibilityto
choose from
multiple
mission-critical
UC platforms.
Offersbroadest
and most
complete setof
standardsbased
video
networking
infrastructure
and developer
toolkits.
Patented
technologies
leverage the
new H.264
Scalable
VideoCoding
(SVC)
standardto
produce the
besterror
resilientand
low latency
products.
Seamless
Interoperability
bringsall
videoconferencing
usersintoCisco
TelePresence
meetingswith
ease.
Best
Embedded
Multipoint
Bridgingto
ensure visual
motionand
claritywhile
adding
participants
inreal time.
Multi-vendorUC
approacheswith
interoperable
video,
telepresence,
voice and
contentsharing
offerings.
Enable
customersand
partnersto
deployunified
communication
networksand
services.
Designedto
take
advantage of
an
organization’s
existingIP
Infrastructure
withno
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
cuttingcosts throughoutsourcing,off-shoringandstrategicpartnering.Howeverthesebusinessmodels
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 isclear that inmodernday business, providing a culture of team working, collaboration, knowledge
reuse andtherebyefficientinnovationprovidesreal benefit.Inhisbook“The Culture of Collaboration”,
Evan Rosenreportsthat“collaborative culturesare breakingdownsilos,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 corporationhasdevelopedthesesilosof 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,asthe organizationmust 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,intranetsand 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,fromthe telephone handset,tothe telepresence,andall pointsinbetween,have apartto playin
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,allowbetterdecisions,enablebettercustomerandsupplierrelations,deliversfaster time to
marketand increasedsalesandprovidesasustainable competitiveadvantage, 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 unified
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
deliversmarketleadingsolutionsforsecure 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 keyfactors whichwill impactgrowth andawareness inonline videocollaboration
 Globalization
 Travel cost savingandROI
 Migrationto UC
 Greaterawareness/Ease of use
 Web2.0 evolution
 GreenImperatives
 Consumervideo(Skype,Gtalk)
While alot of focus in2009-10 was on cost savings,the longtermapproachto usingonline video
collaborationwillbe willbe strategici.e.businessprocess-centriccollaboration.
A recent Frost & Sullivan end user survey of C-level executives indicates that the awareness for
collaborationtoolsishighhowevertheysuspectthatthe 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 surveyshowedalowerratingforthe importance of collaborationtoolsinthe enterprise,
indicatingthatthe businesscase forcollaborationasastandardis still beingestablished.
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 videocollaborationindustryhave beenevolvingandmanyplayerscateringtomultiple
needshave emerged. Some of the keyvendorsprovidingvideocollaborationare mentionedinthe
Exhibitbelow.
Exhibit: Key Vendors Offering Video Collaboration Technologies
Technology Key Vendors
DesktopVideoconferencing  AvistarCommunications
 Hewlett-Packard
 LifeSize Communications(Logitech)
 Polycom
 Radvision,
 Tandberg(CiscoSystems)
 Vidyo
HD room-basedvideoconferencing  Hewlett-Packard
 Polycom
 Radvision
 Vidyo
Mobile videoconferencing  Fring
 Polycom
 Qik
 Skype
 Tango
 Yahoo!
Telepresence  Hewlett-Packard
 Polycom
 Teliris
Webcasting  AccordentTechnologies
 Kontiki
 OnstreamMedia
 Panopto
 Qumu
 SonicFoundry
 TalkPoint
 ThomsonReuters
 VBrickSystems
Source: Forrester

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Some of the playerssuchas Kontiki catertoone videocollaborationtechnologywhile otherssuchas
Ciscoare presentinmany.Exhibitbelowprovideshow the playersare presentinthisspace.
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 √
OnstreamMedia √
Panopto √
Qumu √
SonicFoundry √
TalkPoint √
ThomsonReuter √
VBrickSystems √
Source: Forrester and analysis
8.2. Telepresence Products of Key Vendors
Cisco Systems
Products Comments
CiscoTelepresence System3010  Targetedtowardsexecutivecommunication
 Providesfullyimmersive environment
 3 screensystem, 6participantsperroom, withupto48
locations
CiscoTelepresence System1300  Targetedfora general purpose meetingroom, customer
presentations,multi-pointmeetings,etc.
 Single screensystem
 Supportssix people perroom
CiscoTelepresence ProfileSeries  Single ordouble screenwithsingle camera
Players
with
multiple
offerings

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 Thisproduct wasknownas “TANDBERG Profile Series”before
CiscoacquiredTandberg
CiscoTelepresence EXSeries  On the deskvideocollaboration
 Available intwoscreensizes,24and 21.5 inches
CiscoTelepresence System500  Targetedtowardsindividual office,multi-locationmeetings
 Single screen
Source: Company website
Hewlett-Packard
Products Comments
HP Studio  Targetedtowardsexecutivecommunication
 3 screensystem
 2, 4, 6, and 12 seat configurations
HP Room  Single anddouble screensystem
 For general andteammeetings
HP Executive Desktop  On the deskvideocollaboration
 Single screenandsize system
HP Desktop  Videocollaborationoverdesktop
LifeSize (Logitech)
Products Comments
LifeSize Conference  Targetedtowardsexecutivecommunication
 3 and 4 screensystem
 Encode / decode - 1080p30, 720p60, and 720p30
 Variants- Conference 200and Conference
LifeSize Room  Low cost roomHD videoconferencing
 Single ortwoscreen
 Variants– Room 220 and Room 200
LifeSize Desktop  Videocollaborationoverdesktop
LifeSize Team  Targetedtowardsgeneral teammeetingsandcollaboration
 Single ortwoscreen
 Variants– Team 220 and Team 200
LifeSize Express  Positionedasaffordable HDTelepresence solutionforwork
groups
 Variants– Express220 and Express200
LifeSize Passport  Targetedtowardsindividuals,small offices,teleworkers,etc.
 720p30
 Skype compatible
Polycom

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Products Comments
PolycomRealPresence™ Experience  Targetedtowardsexecutive/boardcommunication,project
management
 Uses a cinematicvideowall
 Upto 28 participantsperroom
 Rear-projectionRPXsystemcansupportbothstandingand
sittingparticipants
PolycomOpenTelepresence
Experience
 Providesanimmersive environment
 3 Screendisplay
 Upto 6 participants
 Roomcan be usedfornon-videomeetings
PolycomArchitected Telepresence
Experience
 Providesanimmersive environment
 2.3 or 4 videodisplays
 Flexibilityindesigningenvironment
 Roomcan be usedfornon-videomeetings
PolycomRoomTelepresence –HDX
Series
 1-2 Screens
 Suitable forsmall meetings
 Supports - 1080p30, 720p60, 720p30, 1080p
 Variants– HDX 9000, HDX 8000, HDX 7000, HDX 6000,
PolycomPersonal Telepresence –
HDX 4000 Series
 For personal usage
 Single screenin2 screensizes(20.1and 24 inches)
 Full HD upto720p60 and1080p30
 Variants– HDX 4002, HDX 4500
Teliris
Products Comments
TelirisVirtuaLive Telepresence  Targetedtowardsexecutive/boardcommunication,project
management
 Uses a upto4 screens
 Upto 16 participantsperroom
TelirisExpressTelepresence  1, 2 or 3 screensystems
 Deployedinexistingconference rooms
 6 participantsperlocation
TelirisPersonal Telepresence  For individualsandexecutive offices
 Single 46 inchscreen
 Video–720p
TelirisExecutive Telepresence  For individual usage
 PanaromicdesktopTelepresence experience
Magor

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Products Comments
HDTrio  Targetedtowardsexecutive/boardcommunication,project
management
 Providesimmersive environment
 3 screen,2 or 3 camera system
HDDuo  2 screen,1 or 2 camera system
HDSolo  For frequentandgeneral teammeetingsandcollaboration
 Single screen,single camera
8.3. Rating of Key Telepresence Vendors
There has beensome activityinthe Telepresence market lately. Cisco acquired Tadberg and Telanetix
exitedthe marketin2010. The playershave upgradedtheirproductsandhave alsolaunchednew 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 tailoredenvironmentsinwhichthe lighting, acoustics, decor and furniture on both sides
of the video are tightly controlled (and often identical)
 It gives conference endusersthe appearance of beinginthe same roomandsitting at the same
table as participants in other locations
 Immersive Telepresence isbuiltoutina dedicatedroom, oressentiallydroppedintoanexisting
space as a "room in room" solution.
Adaptive systemsare delivered with limited “environment” such as furniture and lightning, but these
systemsare complete intechnological termsasimmersive 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)
 Flexibilitytooffer 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
Collaborationtechnologiesare alreadyinuse byvariousindustriessuchasfinancial 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 usingvoice and video conferencing and collaborative solutions, manufacturers have the solutions,
applicationsandtoolstobecome more efficientintheiroperationsandmore successful inthe 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
pronunciationscanresult 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. HDvoice ensuresaccuracyand full comprehension,whichiscrucial whendealingwith
remote, diverse manufacturing groups in different locations and in various countries.
 IP Telephony(VoIP): ByusingIP, calls can be made using packets of data on shared lines (such
as a Local Area Networkorthe Internet) therebyavoidingcostlyPSTN-relatedtolls.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 between remote,
offshore locations at a fraction of the cost of traditional analog lines.
 Conference Speakerphones: Conference speakerphonesare ideal forcrossfunctional 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
wirelessphonesinanumberof ways.By leveraging off of an existing Wi-Fi computer network
infrastructure,the additionof voice mobilityishighlycosteffective. 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 percentof overheadpageswentunansweredbecausepersonnel could not hear the
page
b. Technicians lostnearly40 minutesdue tounansweredcallsand 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
Wirelesstelephonysolutionshelptoresolve 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
configurationdesigns(such as printed circuit board layouts) thereby eliminating the need for
time-consumingshippingof productsamples.HDcontent(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
obviousnotjustforvoice as mentionedbefore,butalsoforvideo.A technicianequippedwitha
wirelessvideoconferencingsystemcouldtransmitvideoimagesof 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 discussionswithline personnel andengineeringdirectlyon 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 OperationalEfficiencies
2. Remote (Manufacturing) Site Control
3. Improved Quality Assurance
4. Real-time Supply/Inventory Management
5. Green initiatives

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Manufacturingindustry canharnessthe benefitsof videocollaboration;some of the keybenefitsare
discussedbelow:
 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
communicationcanreduce productdevelopmentdelaysandinthe process pay for itself many
times over.
 Reductionof Time-to-MarketDelays:Most organizationsinmanufacturingdependon a steady
flow of new products to grow and maintain revenues. Any issue that results in a product
developmentdelaywill usuallymeananassociateddelayinmarketintroduction. Revenue and
marginwill be deferredorlost,resultinginanadditional costbeyondthose encounteredin the
productdevelopmentprocess.Organizationsthat see themselves as market leaders, who win
and lose basedupontheirnewproductdevelopmentperformance will especiallysee 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.Onlinevideo collaboration and communication pays for itself quickly through
the reduction of production down time. This is achieved in many ways including remote
troubleshootingandmaintenance of productionequipment,consultationwitharemote 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
ultimatelyrequire anexperiencedseniorengineerorproductionspecialist making long trips to
where the problemorissue isonlytofindthatafter seeingit,afix or resolutionisfoundwithin
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 anewprocess.The cost impactof these surprisescanrange fromrelativelyminorto
very severe. Manufacturers can now make use of online video collaboration and
communicationtohelpavoidthese costlyerrorsandas"insurance"againstnegative surprises.
 Improved Customer Satisfaction: Although sometime difficult to quantify, many businesses
choose to make improvedcustomersatisfactionone of theirtoppriority metrics. Online video
Shortened time-to-manufacture,
improved cost control without
sacrificing quality

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collaborationandcommunication 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'scredibility,especiallyif importantcustomersare dependingonthe new product.
Many manufacturers will make the choice to invest in online video collaboration and
communicationtoolsbecause of the convincingcase thatitcan reduce the likelihood or length
of such slippages.
 Avoid or Reduce "StandingArmy Costs":Some manufacturerspenalize theirsuppliers 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 torapidlydeal 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 build process can result in reduced costs and
operational efficiencies.Voiceandvideosolutionsare 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,salesagentsanddesignspecialists.3-DCADdesignssharedover video enables customer to
see the design,engage indiscussionandmake modificationsinreal-time.Thishasresultedin improved
customer satisfaction, accelerated decision making and competitive advantages.
Supply Management
For optimal profitability,mostmanufacturerscanbenefitfrombetterinventorymanagement 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 satisfiedcustomer 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
involvedinmovingaworker,withalife-threatening condition, from the site to a medical facility could
meanthe difference betweenlifeanddeath.HDvideooffersvivid,life-likeimagesandinstant 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
formof videocollaborationfacilitatesface toface meetingsinvideoconferencingmeetingboardrooms.
For manufacturers,though,the heartof theirbusinessisoftenthe plantfloor—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 forthe 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
collaborationPC software.Remoteexpertscanalsoshare imagesorpre-recordedvideos 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
allowedon the plantfloor.InmanyFortune 1000 companies,potentially“rogue” video devices such as
smart phones must be checked at security. New video conferencing mobile devices overcome that
concernby providingtightsecurity overthe wirelesscommunication, 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
helpedinvariousoperational situations,includingproductionline equipment maintenance and repair,
supply chain interaction, and OEM vendor communication. Video collaboration was first 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 manufacturerwasable toremove costly delays from the repair process. Together, the
production line engineer and remote specialist can now collaborate to identify immediate corrective
actionplans. Productionequipmentdowntime costscanbe 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.Muchof thisdelaycan be reducedor eliminatedbybringingthe problemtothe 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
fractionof a millimetermatters.Insome cases,third-partycamerassuch as microscopes or borescopes
can alsobe attachedto 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 OEMvendors to
perform acceptance test processes on new production line equipment. The process was traditionally
conductedat the suppliersite.Multipleskill setswere requiredtoadequately inspect and test the new
production line equipment, which equated to teams of people 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 savingsin this application alone have been as high as €50,000 (approximately $67,500) in just
one use.
Remote Process Reviews
For global manufacturerswithinternal orsupplierlocationsaroundthe 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
visuallyconnectengineersintechnical centerswithplantsinlocations such as Mexico. In one instance,
the manufacturerexperiencedanabnormallyhigh scrap rate for one of its products. Language barriers
and the inabilitytocapture movement made e-mail and phone communication insufficient to resolve
the detailedprocessissues.Insteadof sendingspecializedengineerstoMexico,the manufacturerhelda
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
specialistsidentified numerous process errors. They then communicated the problems and corrective
actionstepsduringthe live collaborationsession. Tomake sure the feedback was clear, the production
teamin Mexicothenshowedthe remote engineeringteamthe revisedprocess.This collaboration took
three hoursinsteadof the estimatedthree orfourdaysthat typicallyresulted from attempts to correct
problems overe-mailortravel.Asa result,the scraprate immediately decreased by 25% after the new
process was implemented.
Internal Education
Withthe emergingproblemof agingworkforces,leveragingscarce expertresourcescanalso be a major
concern.For one manufacturerof industrial equipment, this was their top concern. This manufacturer
had more people intheircompanyoverthe 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 manybenefitsandcostsavingsopportunitiesare 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 deviceshave eitheranEthernetorwirelessnetwork connection to access the Internet.
Wireless connectivity (i.e. 802.11 b/g) is the most common method used at a manufacturing plant to
keepthe device mobilitylevel high. While manufacturers have often invested in wireless networks to
share equipmentsensordata,these networkswere notalwaysconstructedwithvideoinmind.Asarule
of thumb,mostmanufacturersuse video settings for their mobile devices that require approximately
500 kbps of bandwidth at the plant. However, this mobile video collaboration can be successful 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.Evenwithonly128 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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Anotheralternative 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
equipmentmanufacturers 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
videosession.Whenaccesstothe Internetisn’tavailable orotherchallengesarise, such as problems in
connectingwithexpertsdue to time zone differences, the video devices can record to a local SD card.
The recordingcan be uploadedtoashareddirectoryforthe remote experttoaccesslater,or the device
operatorcan 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 field to add value to
traditional face-to-face videomeetings. 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
collaborationsoftwareloaded.Inthiscase,the additional expertscaninteractfullywithcapabilitieslike
telestrationandimage 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-hocmeetingsveryquickly. Withthe adventof mobiletechnologies,securelyextending the power of
videocollaborationacrossa manufacturingenterpriseisnow areality.Manufacturers have proven that
mobile videohelpsreducedowntime,drive qualityimprovements,accelerate productdelivery,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. Lookingaheadto the future whatisyour organizationstoppriority?
a. Improvingbusinessprocesses
b. Reducingenterprise wideoperatingcosts
c. Attractingand growingcustomer,relationships
d. Supportingcompetitiveadvantage

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e. Don’tKnow
2. Do youthinkthat intoday’sfast pacedworlda telephonicconference call isaninefficient&
outdatedmode of businesscommunication?
a. Yes
b. No
c. Don’tKnow
3. Do youagree that ideal businesscommunicationsshouldbe personal,interactive,and
accommodate bothdata and face-to-face (highquality audio/video) informationsharing?
a. Agree
b. Disagree
c. Can’tsay
4. Doesa face to face meetingdeliveragreaterimpacton the decisionmakingprocess?
a. Yes
b. No
c. Don’tKnow
5. What’sthe potential of high-endvideocollaborationinUSmarkets?
a. High
b. Medium
c. Low
d. Don’tknow
6. What accordingto you isthe most importantadvantage of videocommunication?(Selectall
that apply)
a. Messagesare easierto understand
b. Enablesquickerdecisions
c. Buildshightrust
d. Makes negotiatingeasier

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e. Reducesconfusionandmisunderstanding
f. Makes people more accountable
g. Betterfordetailedexplanations.
h. Others(Please Specify)
7. Accordingto youwhat isthe most importantcriteriaforvideosolutionsinyourplace of work?
a. Reliable
b. Scalable
c. UsabilityandManageability
d. Others(Please Specify)
8. Every organizationhasa comprehensive strategyforemail,voice andothercommunication
systems;doyouthinkthat inmovingwiththe times,videoshouldalsobe includedinthat
strategy?
a. Yes
b. No
c. Don’tKnow
9. What doesyourvideocommunicationsystemneedtodo, foreachsetof users?
a. It shouldact like aphone
b. A PC monitor
c. A stand-alone system
d. All of the above
10. Do youthinkthat incomparisonto normal videocommunicationservicesanHD videoand
audioembeddedintoacommunicationsystemwill create asignificantimpactintermsof
improvementinbusiness?
a. Yes
b. No

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c. Don’tKnow
11. On demandbusinesscommunicationsandvideocollaborationcanspurgrowth,boost
productivityandsignificantlycutoperatingcosts.Doyouagree withthisstatement?
a. Agree
b. Disagree
c. Can’tsay
12. Videocommunicationandcollaborationinanorganizationis……
a. Competitive advantage
b. Businessglamour
c. Both
d. Neither
13. Are data, voice collaborationandinstantmessaging(IM) orpresence required?
a. Yes
b. No
c. Don’tKnow
14. Do youthinkthat webcollaborationis anecessityintoday’sbusinessworld?
a. Yes
b. No
c. Don’tKnow
15. Doesyour organizationnetworkhave adequate bandwidthforvideo?
a. Yes
b. No
c. Don’tKnow

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16. Doesyour videosolutionprovideaccesstothe 3G network?
a. Yes
b. No
c. Don’tKnow
17. Is yourorganizationplanningto increase the productivityof itsmobile workforce?
a. Yes
b. No
c. Don’tKnow
18. Is videocollaborationandcommunicationitmeantonlyforlarge organizationswithhuge travel
budgets?
a. Yes
b. No
c. Don’tKnow
19. What do youthinkshouldbe the ideal turnaroundtime for returnof investmentonaVideo
communicationandcollaborationsystem?
a. Lessthan 12 months
b. 12 to 18 months
c. 18 to 24 months
d. Above 24 months
20. How doyou thinkorganizationswill benefitbyinstallingVideocommunicationand
collaborationsystems?(Selectall thatapply)
a. Fasterdecision-making
b. Improvedemployeemorale
c. Improvedaccesstothe besttalent

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d. Reducedtime tomarket
e. Bettercustomerresponsiveness
f. More efficientworkpractices
g. Greaterfocus onresultsoverall
h. Others(Please Specify)

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12. Appendix 2 – Survey Results
Primaryresearchwasconductedwithprofessionalsworkingin manufacturingindustryinUS to get first-
hand account of manufacturing organizations use of video collaboration and quantify the potential
productivitybenefitsthatcanbe achievedfrom the use of thistechnology.The researchwasconducted
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
Reducingenterprise
wide operating costs
Supporting competitive
advantage
Attracting and growing
customer, relationships
% of respondents

of 42
Majorityof the respondentsthinkthatatelephonicconference call isaninefficient&outdatedmode of
businesscommunication.
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
Accordingto 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 respondentsneedtheirvideocommunicationssystemtoact like aphone,aPC monitorand
a stand-alone systemall rolledintoone.
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
Majorityof the respondentsthinkthatanHD videoandaudioembeddedintoa 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%
Lessthan 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
organizationswillbenefit 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 respondentsare incomplete 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’sorganizationsare planningtoincrease the productivityof 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.

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