2009 saw India earning the highest 'return on
collaboration' investment, when it came to adopting unified communications and
collaboration among companies. However, the country has the lowest average spend
on UC&C. India's nearest competitor, China, is embracing UC&C in a big way. As
many as 89% used some form of VoIP as their primary phone service.
This startling fact was revealed by a study conduced by
Frost & Sullivan jointly with Verizon Business and Cisco. The study was
conducted for a second time to determine a model for measuring a ROC, and the
impact of IP enabled advanced collaboration on business performance. The first
study was conducted in 2006 to find out that collaboration is a key driver of
business performance. However, India and China were not a part of the first
study.
"The average ROC score was 4.2-meaning that overall,
organizations that invested in collaboration performed on average four times
better than introducing UC&C technologies. Organizations deploying more
sophisticated collaboration tools realize a corresponding improvement in
business results relative to the overall amount of money invested in a given
functional area," says Benjamin Green, practice manager, unified communication,
Asia Pacific, Verizon Business. The greatest impact of collaboration was found
to take place in organizational areas where the largest numbers of people
interact, including sales, research and development, and marketing.

Adopting UC&C
The study conducted across ten countries found that almost 44% of all
organizations surveyed have deployed UC&C tools. Of those organizations that
have not yet deployed, 80% plan to deploy UC&C in the next two to three years.
Those companies that deployed UC&C reported that they are more successful than
their peers compared to companies who have not deployed. The interesting part is
that 40% of the current UC&C adopters planned to increase spending even when the
economy was in a bad shape.
The study also said that organizations were deploying more
advanced IP enabled collaboration tools to see a progressive and a better
performance and higher returns on their collaboration. The most advanced
collaborations see over 2x return on collaboration than their less collaborated
peers. Sales, R&D, and marketing verticals saw the most dramatic returns on
collaboration.
The findings show that larger the size of a collaboration
network, greater is the return. The network effect held true while looking at
enterprises vs SMBs and greater the number of individuals working to reach a
goal, greater the ROC. Consequently, the overall ROC for enterprises was
significantly higher than it was for SMB. However, all sized organizations can
increase their ROC across all functional areas by using more advanced
collaboration tools and encouraging a more collaborative culture within an
organization and in working with customers, suppliers, and partners.
Collaborative Culture
The study also highlighted the regional differences in work culture of
various regions as they have influence on the adoption of UC&C in an
organization. "Culture has a very weak influence on UC adoption. Technology
adoption decisions tend to be driven more by business imperatives, and perhaps
less on the wider culture in which an organization is located. However, I would
guess that a society's culture could have an influence on an organization's
corporate culture, as it interacts with UC. For those countries that tend to
have a more communal culture, which may influence the work environment,
collaboration could be enhanced by UC technology," says Green.
Across the World
Employees in the US had the highest percentage among all the regions being
surveyed. The US citizens lead busy professional lives and require readily
available substitute communication technologies for business travel. They feel
that conferences are a good alternative to face-to-face visits and prefer them
because of the increasing amount of hassle and safety concerns associated with
air travel. They like the ability to telecommunicate and if possible, would do
most of their work from home. These people guard their privacy, sending calls
via voice mail or instant messaging.
| What is ROC? |
- Frost & Sullivan created the ROC index to qualify the return of
collaboration deployment, measured across six areas, including research
and development, human resource, sales, marketing, investor relations, and
public relations. ROC shows the improvement in a particular area, relative
to the organization's overall collaboration solution spend. However, ROC
does not equal dollars invested and dollar gained. It equals dollars
invested and improvement gained.
- ROC is based on UC&C deployment investment across organizations,
average organizational spending in a given performance area-R&D, and
change in performance areas directly attributed to using UC&C. For
example, an organization invested $1 mn deploying UC&C and spends on
average $50 mn on R&D. It estimates an 8% improvement in R&D activities
such as improving the speed of bringing new products to market, improving
success of new products introduced and reducing the cost of new products
deployment process. Thus, the $1 mn invested in UC resulted in a $4 mn
improvement in R&D business results.
|
In Europe, people like to work in the office, as opposed
to working from home. They are least likely to multi-task while on conference
calls. They prefer in-person meetings and business travel over using conference
calls for meetings. These people are least likely to disconnect from
communication tools, in order to preserve their privacy. They do not feel that
communication technologies keep them too connected, leaving them no time of
their own.
| About the Study |
- This was the first study to develop a model for measuring return on
collaboration and the impact of IP enabled advanced collaboration on
business performance. The study targeted both lines of business managers
and IT decision makers. Both enterprises and SMBs were covered in the
study. More than 3,600 people were surveyed. The seven verticals covered
included healthcare/ pharmaceuticals, government, financial services,
manufacturing, professional services and hi-tech retail. The ten countries
surveyed included the US, the UK, Germany, France, Sweden, Japan, Hong
Kong, Australia, China, and India.
|
People living in the APAC region think that communication
technologies give them the control over their lives and allow a better work-life
balance. They are most concerned about the security of their information, while
using these technologies. People living in the region like to work in projects
with teams, and accept that conferences can be a good alternative to
face-to-face meetings. They love the ability to telecommunicate, and believe
that communication technologies reduce the need to travel for business.
Collaboration Trends
India also emerged as the most telecommunication friendly country. No doubt
the telecom industry in India is adding about 8-10 mn subscribers every month,
even during the time when the global economic turmoil was at its peak. Hong Kong
ranks the second, and the US and China hold the third slot. China has the
largest proportion of its firms, currently having both desktop videoconferencing
(69%) and immersive videoconferencing (62%). China ranked first with the highest
percentage of companies giving these communication tools to their non-management
employees. The US ranked second and Australia came third.
APAC came out as the most improved region in the study,
driven by China and India. "The recession is likely to have played an important
role. A major finding in China and India's successful standing in the study is
that there was a lot of investment in communications infrastructure, including
UC&C. Perhaps this is due to these strong growth of these economies before the
recession that resulted in such investments. But the study showed that the
amount of money invested in both the markets was comparatively low. The data
also indicated that the spendings tend to be on more advanced UC&C technology
solutions. Perhaps because the recession hit these markets less hard than
others, China and India were able to realize the catalytic benefits of UC&C,"
says Minaz Zia, national sales manager, unified communications, Cisco.
More than half of the respondents say that reducing their
organization's carbon footprints and other environmental concerns are important
considerations in determining UC&C technology requirements. With the economy
showing early signs of improvement, 2010-11 could be a good year for the
adoption of UC&C tools across the globe.
Akhilesh Shukla
akhileshs@cybermedia.co.in
Page(s) 1