Web Conferencing Its role in strengthening the business - Essay Example

Web Conferencing - Its role in strengthening the business Purpose: Web conferencing is increasingly adopted by most of the business organizations in today's competitive world where all are competing hard to stay atop in their respective areas through innovative strategies and eliminating costs wherever feasible. The present paper aims to study the need, advantages and disadvantages of web conferencing in businesses. Design/Methodology/ Approach The data for this study was collected and compiled from various literatures like books and journals so that a conclusion could be arrived on advantages and disadvantages of the technology. Qualitative methodology was used for this study so that literature related to the topic only could be used throughout the study underlining the topic of this study. Findings The study reveals that web conferencing is more beneficial when compared to its disadvantages in the long run. The tool completely reduces the costs related to travel, food and accommodation of the team members and also saves time that is consumed during travelling facilitating the employees to communicate with their team members and participate in the conference from their branch office. Originality Value The present paper will provide information to other researchers about the impact of web conferencing on the business organization and their disadvantages and advantages. The study is compilation of good number of literatures which are not easy to find and will serve the researchers with good information. Keywords: web conferencing, business, business conference Introduction The development has come a long way in terms of communication. Gone are the days when king used to send his messenger to convey message to his counterpart. Then came the government postal service followed by historic invention of telephone which enabled voice based communication minimizing the time and effort on both sides. But development was not meant to be stopped, only through innovation of telephone, the world wanted more. Internet created a revolution in the world providing effective communication through email and online chatting. Businesses compete in this competitive world of business on the basis of effective communication. Most of the organizations have gone global paving the way for globalization. In view of this, multinational companies opt for better and effective communication regarding the performance of business which was possible through email, online chatting, etc. But, there are times, when the organization wants to communicate through all its managers located at different locations, make some presentation, management briefing, etc., where email and chat tools look inefficient and web conferencing offers which other communication tool don't offer. David Geer (2005, p.14) states that web conferencing reduces the time for making decisions and according to the In-Stat/MDR statistics, web conferencing services have increased by 70% i.e $765 million from $450 million between the years 2002 and 2004 and was expected to reach $1.5 billion by the year 2007. Therefore the present paper is aimed at the importance of web conferencing in the present global scenario in regards to business and to identify its advantages and disadvantages. Web Conferencing - What, Why and How According to IEEE (2010) 'web conferencing' is a technology that allows multiple meeting with participants for effective communication with each other, live over the internet. Web conference requires people to meet in a dedicated online conference center which has the facility to share audio, video and files in real time. It facilitates an individual or group of people scattered from different places to communicate and accomplish common goals without travel expenses or technical hurdles. The technology which is the product of Web 2.0 offers variant support and facilities with regard to communication strategy. In general, web conferencing facilitates elimination of expensive and time consuming business travels; sharing video, audio, viewing presentations and other files in real time; sync on-screen views allowing the participants to see the same thing; discussions; sharing of opinions, etc. The technology is useful to everyone who may want to communicate views and require suggestions from people from different parts. Gordillo, D. (2009, p.110) classified web conferencing into ad hoc, two-person or multiple - person provided through the web using any type of the software from free simple one to sophisticated products that are available in the market. Similarly Brian Hodges, CEO of VIACK during an interview with business affairs writer Leslie Carter described web conferencing as a tool to conduct meetings, presentations or collaboration sessions through internet wherein each participant can connect to other participants sitting on his/her computer which is different from the traditional conferences when meetings were conducted face to face in conference rooms, brainstorming sessions on whiteboard, voting or polling activities, distribution of papers round the table, etc. Further he states that change in business is inevitable with business becoming more distributed, global and mobile which propelled the organizations to change their strategy therein giving rise to web conferencing which provides equal or improved efficiency and productivity subsequently saving travel time and money. (Scribd.com) According to Mann in (Deans, 2009, p.203), web conference is getting better and better with year passing by and can be defined as collaborative way to interact over a network in a real time by participating in peer - to - peer meetings or one-to-many presentations. The web conferencing uses Voice over Internet Protocol (VoIP) and video which support e-learning, enables document centric conferencing and changes is deployment models as mentioned by Smith. (Deans, 2009, p.203) Mann further explains the deployment options for Web Conferencing through Software as a Service (SaaS) model where user accesses the software through the Internet from the vendors system; on premise model where user has the license to install the software in his/her system and blended model which is the combination of both SaaS and on premise model. Further Mann analyses that web conferencing will be available to 75% of the corporate users by the year 2010 as a standard facility other that email, presence, calendaring, IM and other collaborative facilities. What motivated the business organizations to use web conferencing Grant and Meadows (2006, p.329) stated that telephonic conversation was present in the business world since its invention allowing real time conversation, though not physically present. David (2002, p.43) mentions that the teleconference existed in business strategies even after the arrival of web conferencing and business meetings were attending in person. Post 9/11, the scenario has changed entirely with companies still holding global business meetings and the fear of air travelling laid the emphasis for using web conferencing as a tool of actual communication in virtual conference room. Denise and Carolyn (2001, p.28) report that dissent in most of the American citizens to travel by air after the terrorist attacks, the business analyst opined that something was going to change which included business travels also. According to National Business Travel Association, more than half of the 60 travel managers have reported that they were reducing travel and 90% of them were expecting to deploy video conferencing gear or services so that the business communications are not affected. But due to the inflexibility of using the device at one particular location and individual presentation was not possible. Spielman and Winfield (2003,p.23), while analyzing the report on 'Meetings in America; A WorldCom Conferencing White Paper' prepared by INFOCOM in 1998, found that average domestic business trips had a hard cost of $1,334 per meeting participant, average business meeting consists of five people out of which four have to travel from abroad. It was further found in Harris Survey which was conducted for Delta Airlines that 5% of business travelers consider themselves focused on work while on airplane, while 81% read books for pleasure, 64% relax or fall asleep and 55% watched the in-flight movie or listen to the audio feed. The findings suggest that if the organizations keep their employees at their home base, time will be saved and the objectives of the meeting will also be achieved as all the information required will be available at their home base and also cuts down on physical wear and tear and stress. In yet another findings related to business travels in 2000 International Symposium on Stress, 73% respondents rated the travel as stressful and more than half of the 73% reported that business travels negatively affected their family life, their sleep, their overall well being and general performance. Further 100% respondents'spouses or partners reported that business travels have negative impact on the stability and happiness of their family life. And last but not the least, the World Bank found that 76% of business travelers suffer more health problems and reported that frequent business travelers are three times more likely to use the corporate health programs for meant health assistance. In view of the above findings, web conference is regarded as more convenient option as an employee can set the conference from his desktop and communicate as well as participate in group discussion or conference without any physical movement. Further the inability to recognize and understand the business concepts or inability to understand what the person on the other side is trying to convey which was the driving force for companies to indulge in an effort to make video conferencing more stable, more accessible and more affordable, which has not been possible till now, making it the product of wealthy organizations. (Spielman and Winfeld, 2003, p.16) Brian Hodge, CEO, VIACK, during an interview comments that many drivers cause a huge promotion in web conferencing. He cites pandemics like swine flu as one of the causes why such alternatives are useful instead of face to face meeting where physical contact actually promotes physical risk. (Leslie Carter, 2009) Gordillo, D. (2009, p. 110) states that companies in the present competitive world should be more inclined towards the creation of effective knowledge management system. While explaining the importance of human resource, the author states that it is very important to maximize the inflow and outflow, as people who carry knowledge, skills and expertise join and leave the organization, knowledge sharing should be part of the corporate culture which could be achieved by web conferencing which brings people together and creates and environment predisposing for effective knowledge sharing. As stated earlier, businesses in the present global environment face unprecedented challenges and strive hard to remain in the market above its competitors. Nowadays businesses need to overcome challenges that are not only business oriented but also decisions taken by the government like increase in fuel prices which shall also increase the travel costs, both by car and air; intensifying price competition and budgetary constraints preclude businesses from sending their sales and training personnel to meet with customers or employees in person unless very necessary; there is need to provide remote employees an effective way of communicating so that they can collaborate with their colleagues instantly to share knowledge and drive projects to completion on time and within the budget; cost constraints make it difficult for the businesses to afford traditional on-site customer or employee training programs; businesses want their workers to do more with less expenditure in sales, marketing and increase revenue and global business need metrics driven programs and tools to maximize their return on investment (ROI) as they enter new markets in other country. Moreover it is also pertinent to mention here that the communication trends have also increased in the present scenario as compared to the past when most organizations communicated in a 'linear' fashion which is no longer effective in today's increasingly competitive business environment. Web conferencing has the technology to change the way growing businesses operate internally and communicate with partners and customers externally. (Citrix Online, 2006, p.3) What are the benefits and advantages of the Web Conferencing Web conferencing has become one of the most powerful and increasingly popular methods for communication with current or prospective customers along with partners and employees. It enables geographically dispersed employees to improve their productivity by allowing them to collaborate online. It can be used for external and internal training purposes and also as a cost effective sales tool in order to increase the customer base. Large organizations along with small and growing business are adopting the new way of communication to increase their business activity while being cost effective and attain the objectives of the business. (Citrix Online, 2006, p.2) Kostner (2001, p.25) regards web conferencing technology as one of the most important technologies for virtual teams which enables to create an online meeting space by quickly share documents, live participation, brainstorming sessions which rivals the traditional small meeting room of the yesteryear. It is further mentioned that in today's so called 'Mechanical Phase' people use web conferencing technology for viewing and explaining their views through presentation. DeCarlo (2004, 431) states that web conferencing is the ability to use a browser based communications service for live, interactive meetings and presentations which streamline the decision making process: more diverse viewpoints can be considered in less time than is feasible for meetings that are limited to those who can attend the meetings in person and the technology also eliminates the unproductive time that is spent while traveling on road. Black (2005, p.115) states that prospects in near future may want to hear audio testimonials, listen and see live products and service presentation and also would like the opportunity to test the product online and in real time. The present day businesses need to use these technologies which are also cost effective and can make differences in the next annual reports. It is further mentioned that businesses need to adopt and update themselves with new advance technological support that may provide them the much need push for achieving the success. Web and Video conferencing provide the latest tools to deliver and cultivate a memorable and sensational experience to customers. With the use of the technology, the businesses can reach to its target customers making their products available to the customer's right on the desktop on the customer, giving them a chance to try the product. Web conferencing can be very useful to the online marketer in selling products and services and the combined power of web and video allows delivering media-rich presentations which include interactive video, images, animations, sounds and other effects that can give the product and organization a unique look and feel to the customer. Naisbitt too predicted new era of university-industry cooperation and further states the today's information economy demands that management should be as aware of educational philosophy as it is of economic theory. (Wright and Siwek, 2005, p. 6) Meyerson and Scarborough (2007, p.115) pointed out certain advantages of web conferences in businesses that are as follows: The technology brings down the cost of the organization with regards to travelling by air, road and any other means to and from site locations, the costs which are also attributed to the rise in fuel price, service charges, etc. The conferences can be scheduled quickly and participants can attend the conferences from any location if they have the necessary equipment and software installed in their computer. And if for any reasons the conference has to be cancelled, no one has to feel embarrassed or no losses are incurred. Sessions during the web conferencing can be recorded as well as saved in the archives for broadcasting and future references. The content can also be used as superior marketing content for the website. It includes all the options and opportunities that are available in teleconferencing and tele-seminars in addition to providing more intimate, lifelike environment allowing the participant to hear and see in real time. Technically, web conferencing allows to deliver the visuals of participants and presenter, product demonstration, deliver PowerPoint presentations and incorporate PDFs with live links, allows groups to share files for project planning team consensus, updating, product demonstrations, and managing participant involvement through live Q & A session, real time polling, group chats, etc. Eisendadt and Vincent (2000, p.119) states the advantage of using web browser for conferencing using software because it is familiar to the user, is installed on the user's machine, is available widely; web conference is available from any internet connected system and provides the flexibility to work from any computer which has the requirements, the software does not have to installed by the conference provider, no need to be maintained or updated by the conference provider, integrates into the web which makes it easier and participants don't have to face any technical hindrance while initiating web conference. In a survey of Wainhouse Research, it was found that 72% of the respondents used web conferencing to include participants in meetings who didn't attend before and over two-thirds of the respondents used web conferencing to conduct new meetings that could not be held in the past and the same number of respondents used the technology to replace in person meetings. The web conferencing allows the sales representative to provide online demo of the software and facilitates remote engineers to collaborate with their co-workers on specific projects. Financial service professionals such as mortgage brokers can make offers and review sensitive information in a secured environment over web conferencing. (Citrix Online Report, 2007) Greenberg and Nilssen (2007, p.4) in a survey of 553 respondents found that the greatest impact of web conferencing was to attract those participants who could not attend previously. 63% of the respondents used the technology to reach more participants, 79% used it to save the travel costs, 51% believed it to more or just as effective as in-person training while 36% believed it is almost effective and surprisingly 70% respondents believed it is more than or just as effective as asynchronous tools. Further 57% respondents stated that value returned by web conferencing is good whereas 14% thought of it as marginal. The aforementioned data reveals that web conference is more than or just as effective as synchronous tools and make a fundamental paradigm shift for the corporate training. Stewart-Gross and Michael Gross (2007, p.168) states that companies of any size can use web conferencing which is supported by Brian Hodges, CEO VIACK (2009) wherein he states that web conferencing technology is a game changer for small businesses as it allows them to interact them with the world in a way that makes them appear 10 times larger than they actually are. It is further stated that the advantages of web conferencing are both significant and obvious which enables the organizations to improve communications, provide instant access to data and increase productivity and also provides the facility of 'just in time' training as well as 'just in place' training. However like every innovation can't be free of criticism in the same way every product can't be perfect. In the same way web conferencing technology has some drawbacks or disadvantages. Web Conferencing - Disadvantages and Warnings Wright and Siwek (2005, p.60) states that virtual web conferencing is gaining momentum among the business facilitating easy communication through online forums, bulletin boards, etc. But the author cautions the people regarding their dependence on technology and states that isolation of such interaction in today's business and social world compounds the desire for social interchange. One of the most important reasons why traditional form of conferences or meetings should be organized is to make people interact with each other, share, renew friendships, exchange ideas and strengthen relationship in person, some of these cannot be met through correspondence, telephonic conversations, computer interface or exotic media which are all components of web conferencing. It is further stated that the meetings main purpose is to provide people an opportunity to interrelate and to 'press the flesh' which is not possible through web conferencing. It also important to mention here about the seriousness of the participants involved in the session and the risk of not having all the team members actively present during sessions is more realistic. Web conferences are conducted in virtual environment where virtual teams meet to discuss, share and other activities and according to Kirkman, B.L. et al (1993, p.71) virtual teams face numerous challenges as compared to the conventional method of conferencing. It is further stated that building trust among virtual teams is extremely difficult due to limited face-to-face interaction; struggle while creating synergy; team members experience isolation and detachment as they cannot interact with the other team members which was the main reason for conducting conferences in the past where people were allowed to introduce themselves to their colleagues. Further web conferencing requires the team member to posses' technical skills in order to operate the software or tools underemphasizing the interpersonal and teamwork skills. With regard to technological aspect, DeCarlo (2004, p. 432) states that though technology is effective and affordable, it can be fatal if one key point is forgotten as connectivity does not equal communication. The author explains that communication is most effectively achieved in person, through eye contact rather than I (Internet) contact. It is further stated that though real time information is essential for smooth and effective functioning of the business but it is the not the replacement for walking around which keeps the body physically healthy. Technology makes people dependent, for example too many project managers strap themselves to chair, endlessly tweaking the project plans, even assigning tasks and giving orders via email and finally they are out of the project. Meyerson and Scarborough (2007, p.174) while explaining the drawbacks and limitations of web conferencing stated that though web conferencing is improving day by day, there is possibility of difficulties which could arise due to differences in equipment and connectivity resulting in disconnects when the conference is in progress and also other session snafus. Eisendadt and Vincent (2000, p.121) mentioned limited capability of browser to do more is the main disadvantage of web conferencing software and states that if browser does not support the software then web conference cannot be initiated. Gordillo, D. et al (2009, p.112) mentioned low resolution and quality, less probability of having good quality internet speed, meeting quality based on the quality of the attendee's Internet Access and computer capabilities and the proceedings of web conference that don't have no impact on the team members, as some of the disadvantage of web conferencing. While using service based web conferencing as provided by online service providers like WebEx, GoToMeeting, Meeting Bridge, etc., the cost of the conference may be more as compared to actual conference if the service is used by all the frequent users instead of buying their own equipment. The service bypasses the security policies which is set by the IT personnel of the organization which generates greater security risk of being hacked by malicious software and can intercept documents and other files that are shared during the online sessions and can also gain entry to conference and disrupt the proceedings. Similarly server based web conferencing, where companies maintain their own servers for web conferences, must use their own bandwidth for group meetings which can be a major problem for small businesses. This type of web conferencing is very expensive as it requires infrastructure like software licensing fees, large equipment costs, and other infrastructure which small businesses cannot afford. Moreover the staff should know how to handle and operate the system to conduct web conferencing. (David Geer, 2005, p.15) Like, any other software or technology, web conference has certain benefits and limitations which need to be considered by the business organizations. Conclusion Murray (2007) stated that 'competing in the global knowledge economy means that your organization must learn and innovate as fast as change in the marketplace.' It is further mentioned by Gordillo, D. (2009, p.109) that companies can benefit from real time collaboration as it fosters innovation and improve the timeliness of decision making. Company can compete in the fast-paced economy if all the departments, branches located at various places are able to share information and collaborate on complex problems on a continuous basis. Further it is also stated that communication between the employees and departments enables free flow of data and information which results in increased efficiency and effectiveness of an organization. But it is necessary for the organizations to find alternatives to travelling in order to facilitate face to face meetings which are financially not affordable. Therefore, web conferencing is an important tool in business organization which enables effective communication and sharing of information through rich text, audio and video files and facilities real time decision making. The web conferencing technology provides benefits not only to the organizations but to the employees also. In the period of recession, where most of the companies are looking for options to cut down the costs, web conference has saved them good amount of money with regard to travel expenses, food and accommodation costs, and conference organizing costs along with stationery and other material which are prepared for the purpose of conference only. As web conference allows online sharing of files, the rare necessity of hard copies is eliminated which benefits the company in much better way if the numbers of participants are more. In regard to employees who live in remote areas, most of the times complain of stress which is mainly due to long distance travelling. The web conferencing tool eliminates the time of travel for conference and isolation from family during the period of conference. Web conference facilitates employee the flexibility to enter into conference from his own desktop and share real time information then and there itself. However there are some disadvantages with web conferences which include societal isolation by not meeting with company colleagues, minimized affection, less eye contacts during web conferences, etc. While web conferences reduce the company's expense of travelling, small businesses may not be able to afford the server based web conferencing technology as it is expensive. The thought of web itself gives an impression that there will be security intrusion and breach of companies IT security policies which makes the company vulnerable to external threats like hackers who can damage and enter the conferences and disrupt the proceedings while in progress. And moreover, technology confines the people to their houses and offices as they do all their work sitting on the chair in front of desktop and don't have any physical movement. Though web conferencing is having certain limitations, its contribution will be great as it saves time, money and effort of the company and facilitates decision making in real time through online polling and Q&A sessions. Web conferencing is an important tool for businesses in today's competitive environment. References 1. IEEE. (2010). 'What is Web Conferencing'. IEEE. www.ieee.org. [Accessed on 4th March 2010] 2. David Dobrin. (2002). When Face-to-Face Doesn't Fly. CIO 15 March 2002. 15(11) CIO. 3. Kostner, J. (2001). Boinic eTeam Work, Kaplan Financial Series, United States: Dearborn Trade. 4. Spielman, S. and Winfeld, L. (2003). The Web Conferencing Book: Understand the Technology, choose the right vendors, software, and equipment, start saving time and money today! United States: AMACOM Div American Mgmt Assn. 5. Denise, P. and Carolyn, D.M. (2001). Travel's loss could be conferencing's gain, Network World. 18(40) United States: IDG Network World Inc. 6. Deans, C.P. 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