VIRTUAL

MEETINGS: SMART
MANAGEMENT
A Case Study

Date Submitted: Dec. 2, 2019

BS Acc 4-1
Guarin, Julie Pearl
Machida, Erika
1. One consulting firm has predicted that video and Web conferencing will make business travel
extinct. Do you agree? Why or why not?

According to Ksenia Klykova (2018), the estimated total substitution effects — switching from
one mode of communication to another — were 4.3%. In other words, less than one in twenty
business trip were substituted by an audio or video conference. It will lessen the business travels
but it will not result to extinction.

Establishing eye contact in videoconferencing systems (at least for the most extended ones) is
impossible since the camera for face capture is usually mounted above. If the angle between the
line from the camera to the eyes and the line from the eyes to the screen is more than 5 degrees
the loss of eye contact is noticeable; in differences bigger than 15 degress the loss of eye contact
is inevitable (Jaklič et al, 2017). Video communication without eye contact is even less trusted
than just a voice connection or an email.

Videoconferencing will have substantial impacts on business air travel unless green taxes or other
environmental instruments leading to large increases in air fares are introduced. Business travel
develops in line with business cycles, and the main driving force in this market is economic
growth. Modern work life is organized around different networks where travel and face-to-face
contact are crucial. Virtual communication systems have an advantage over physical travel when
the working task has a high degree of formality. However, business travel very often includes an
informal element that is difficult to recreate in virtual meetings. Face-to-face contact and
networking are embedded parts of business practice. Although new technologies can create
‘‘virtual rooms’’, giving the participants a sense of co-presence, videoconferencing can never
replace the genuine aspect of personal meetings: the face-to-face contact.

2. What is the distinction between videoconferencing and telepresence?

Telepresence is more likely an upgraded form of videoconferencing. The two systems are both
used in document sharing, technologically displayed information using computers and both
allows transmittal of audio and video data.

Videoconference is usually associated with a place-to-place communication system that is

permanently installed in a room or studio meanwhile telepresence is more technically
 sophisticated form of conferencing with a higher level of picture and audio fidelity which makes
it more costly than video conference.

Telepresence is different in a way that it creates a more presence of a person experience and an
digital illusion that the user is in the same room as the others in a meeting. One factor to create
this illusion is the physical placement of the furniture and equipment around the room through
telepresence conference suits that allow for a larger screen display and perfectly same physical
appearance as the room used. Also, the high definition transmission capability of telepresence
resolves some problems of videoconferencing including eye contact, voice echo, choppy audio
and video transmittal.

Lastly, the two systems’ major difference is in cost. The Wainhouse Research, an independent
marketing research firm conducted a study to compare telepresence and videoconference on an
economic basis. Most telepresence systems currently fall in the range of $200-400K each, with
$300K list price perhaps representing the average for a 6-seat room. In contrast,
videoconferencing systems range from $10K to $65K, with perhaps $25K representing a good
industry average.

A careful consideration of the economics of telepresence and videoconferencing will take into
account not only the costs of these solutions, but also the reality of their use. Many
videoconferencing systems deployed today are not delivering the benefits that were anticipated
for a variety of technical and human factor reasons – but the end result is that the systems are not
delivering benefits because they are not being used. Hence, despite their relatively low costs, the
return on investment for most videoconferencing systems is limited. Telepresence systems, on the
other hand, typically experience higher demand and higher usage, and through this usage deliver
the benefits anticipated when the purchase decision was made. (Davis & Kelly, 2008)

3. What are the ways in which videoconferencing provides value to business? Would you consider it
smart management? Explain your answer.

Reasons for adopting videoconference are reduce travel costs, time savings, increase efficiency of
decision making, improve internal contact, reduce travel fatigue, improve contact with clients or
suppliers, internal training or upgrading, and lastly, it saves the environment. (Denstadli, J. M.
2004). A number of studies agree that the most important reason for the increase in the use of
 audio/video conferencing tools is that it is a way to reduce travel expenses which come in the
form of direct cost savings such as flights, hotels, car services and food as well as indirect cost
savings, for example the cost of saved employee time. The time saving factor appeals to many
business travellers since technology could be utilized as an alternative to gain lost travel time
while enhancing productivity and business performance, as well as the quality of business level
decision making. Organizations’ concerns about saving costs may be encouraging them to
implement green alternatives to business travel. Videoconferencing can help lessen an
organization’s carbon footprint (Arnfalk & Kogg, 2003) since organizations are beginning to give
consideration to the carbon-based effect of their policies, and are reducing air travel as a way to
deal with climate change (MacKenzie, 2008).

Videoconferencing has been gaining in popularity over the past year, and is named as one of the
main sustainable business strategies (Sustainable Life Media, 2009).

4. If you were in charge of a small business, would you choose to implement videoconferencing?
What factors would you consider in your decision?

According to Denstadli & Julsrud (2003), videoconferencing is used most frequently by top and
middle managers, reflecting earlier investigations of the use of videoconferencing in work
organizations. Yet project managers too are frequent users, and the results indicate that
videoconferencing is used more as a working tool for projects than for board and management
meetings. At least for the larger enterprises, videoconferencing appears to be a working tool for
collaboration on geographically distributed intra-organizational projects.

But in an era that is developing the technology of the future, and videoconferencing is being
perfected for a reason, implementing videoconferencing might be considered. By investing in
videoconference technology, the firm will be able to save company money by not having to make
trips via car or airplane. Videoconferencing would also keep the business close to its important
factors which help run the business, and would make it stronger and more efficient.

Some factors must be considered prior to implementing videoconferencing. First is the return on
investment in exchange of the upfront costs in purchasing this technology. Second is if the nature
of the business requires remote employees to participate in day to day operations. Lastly, if the
business has teams working in different offices, decision making would be easier and made real
time with web conferencing.

REFERENCES
Denstadli, J., Gripsrud, M., Hjorthol, R., & Julsrud, T. (2013). Videoconferencing and business
air travel: Do new technologies produce new interaction patterns?. Transportation Research Part
C: Emerging Technologies,29, Retrieved from 10.1016/j.trc.2012.12.009
Klykova, K. (2018). The impact of videoconferencing on business travel: an historical point of
view, Retrieved from https://medium.com/sam/the-impact-of-videoconferencing-on-business-
travel-an-historical-point-of-view-3b5fa85e0a9d

Denstadli, J., Julsrud, T., & Hjorthol, R. (2012). Videoconferencing as a Mode of Communication:
A Comparative Study of the Use of Videoconferencing and Face-to-Face Meetings. Journal of
Business and Technical Communication - J BUS TECH COMMUN, 26, Retrieved from
10.1177/1050651911421125

Davis, A., & Kelly, B. (2008). Telepresence Vs. Videoconferencing: Resolving the Cost/Benefit
Conondrum, Retrieved from http://www.wainhouse.com/files/papers/wr-tpvc-cost.pdf

Douglas, A., & Lubbe, B. (2013). Travel or Technology? Business Factors Influencing
Management Decisions, Retrieved from http://www.scielo.org.za/pdf/sajems/v16n3/04.pdf