Business Models

  • Enhancing Products with Collaborative Services

    Last Wednesday, I stopped into Rosetta Stone’s splashy event in a trendy nightclub in San Francisco’s SOMA district. Company officials were on hand to demonstrate Rosetta Stone Version 4 TOTALe. Chris Spiller, executive producer, demonstrated the Spanish version of the popular software for learning languages.

    Chris and I discussed how immersing oneself in another culture is by far the best way to learn a language. And we shared stories about the overemphasis on grammar in high school foreign language classes.  It turns out that cultural immersion is exactly what Rosetta Stone had in mind when developing Version 4 TOTALe. “We looked at what are the pieces of that experience we can recreate through technology,” Chris explained.

    Rosetta Stone has recently transformed its offering into a hybrid product/collaborative service. This means that no longer must customers learn a language in a vacuum. They can now collaborate with other learners globally and can also learn from language coaches who interact with customers through one-way video and two-way audio. Adobe provides and hosts Rosetta Stone’s video and audio through its Adobe LiveCycle Collaboration Service Platform. Incidentally, today Adobe is releasing version 8 of a related web conferencing product called Adobe Connect.

    Rosetta Stone Version 4 TOTALe includes Rosetta Studio, which involves live, interactive coaching. The bundle also features Rosetta World, which lets users collaborate with fellow learners. There are lots of activities and games that geographically-dispersed users can do together while talking with each other in the language they’re learning via voice over IP (VOIP) and text chat. Other activities pair learners with native speakers who are, in turn, learning their partner’s language. This collaboration among customers accelerates learning and creates value.

    Getting customers to collaborate with each other can turn a maturing product into a virally-adopted habit. Smart companies realize that collaboration is more than customers participating in discussion forums. It’s about getting customers to create value using a product or service together in real time. Depending on the product, collaborating among customers may involve creating, learning or playing.

    Besides enhancing learning, the collaborative service lets Rosetta Stone enhance its business model and presumably its revenue. The software includes three months of access to Rosetta Studio and Rosetta World, and customers can then buy more access. I suspect that this hybrid software-as-a-product/collaborative service model is a prelude to a pure software-as-a-service (SAAS) offering.

    While Rosetta Stone officials say the company has no plans to expand offerings beyond language software and services, this collaborative approach to online learning could apply to subjects ranging from history and geography to algebra and physics. A user in India and a user in Germany could collaborate to learn the geography, history and culture of their respective countries.

    The big picture is that companies in many industries can create value by encouraging customers to collaborate with each other. This produces greater stickiness by building interactive communities around products with the potential of generating new revenue streams.  And this goes well beyond software. Take a product like a motorcycle. With a 3D model of the motorcycle plus interactive audio and video, enthusiasts can collaborate on maintenance, diagnosing problems, and doing repairs. Collaborating among customers could also apply to furniture. Using a 3D model of a home or office and choices of virtual furniture, customers could exchange ideas and collaboratively design spaces for living and working.

    Collaboration among customers can build brands, increase marketplace stickiness, and create new revenue streams.   

     

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  • Taking Collaborative Risk at The State Department

    Shifting from command-and-control to collaborative culture involves what might be termed collaborative risk, but some organizations are realizing that there’s greater risk in clinging to old ways of working.

     

    State Department Logo One organization that is recognizing the need for taking collaborative risk is the United States Department of State. “We’re a very risk-averse culture,” notes Duncan MacInnes, principal deputy coordinator for the Bureau of International Information Programs. State Department professionals fear that misstating policy or saying the wrong thing could become a diplomatic crisis. This parallels the fear in companies that trade secrets or market-moving information could leak. Nevertheless, the State Department has determined that the benefits of collaborating internally and externally outweigh the risks of resisting work style change.

     

    Change agents across the State Department are guiding the culture towards embracing collaboration. These change agents have wisely realized that eliminating disincentives to collaboration is as important as creating incentives. Therefore, the Department has updated its policies to eliminate disincentives to taking collaborative risk. “People will make mistakes, and those who have made too many mistakes have not been dinged for it,” according to MacInnes. This approach is critical to shifting the culture, because people must feel that the organization values collaborative risk and will provide the cover for them to try new ways of working.

     

    Externally, the State Department enables embassies to broadcast their own events including speeches by ambassadors on the Web with input from the public. The State Department uses ConnectSolutions Podium high-definition webcasting, which lets users ask live text questions, text chat with each other about the event, and leave video comments. The ConnectSolutions Real-Time Collaboration Platform enhances and extends Adobe Connect web conferencing. Embassies are also using the tool to collaborate internally. At first, embassy staff resisted the shift. “We’re showing them a new way to work, and we’re meeting in the middle,” says Tim Receveur, a foreign affairs officer coordinating global use of the tool.

     

    Aside from real-time collaboration, the State Department is also chalking up results in collaborating asynchronously. Over 3500 State Department team members have contributed some 12,000 articles to Diplopedia, an internal online encyclopedia based on Wikipedia. You can view an amusing video on Diplopedia here. The Department has also seen compelling growth in the use of an ideation tool. Ideation means developing and refining ideas so that people can make their organization better. The tool, dubbed Secretary Clinton’s Sounding Board, is based on a blogging platform. The tool lets people across embassies, bureaus, regions and levels of leadership brainstorm, make process improvements and create value collaboratively.

     

    In the last eighteen months, people have contributed 1800 ideas. “What in the past would have been water-cooler conversation that went nowhere is now [getting results], because the person who can make it happen is part of the conversation,” explains Richard Boly, director of e-Diplomacy. The ideation tool lets a person hired locally who’s working in a small West African consulate to collaborate, brainstorm and develop communities of interest with counterparts globally.

     

    One success factor for Richard and his team as they guide the work style shift is focusing on “the how rather than the what” for starters and saving the “thorniest issues” for last. By thorniest issues, Richard means U.S. policy and diplomacy. Meantime, he and his colleagues are encouraging culture shift and emphasizing use of collaborative tools for brainstorming improvements in “how” policy can be crafted. As the culture warms to the new way of working, the change agents believe diplomats will more collaboratively create policy itself.  

     

    Private industry is now looking to the State Department for clues regarding how to engage people effectively through corporate ideation tools. Increasingly, companies collaborate through ideation tools with their customers, but lag in collaborating internally. A big factor is fear. Companies often fail to give people cover so that they take collaborative risks. In this case, the Federal government may clear a path for business.

     

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  • Collaborative Law

    Competition, arguing, and maneuvering defines law as it’s traditionally practiced. Now, though, a collaborative law movement is gaining traction globally. I had a compelling conversation the other day with J. Kim Wright, a collaborative law practitioner who runs the site CuttingEdgeLaw.com. We discussed Kim’s new book, Lawyers as Peacemakers: Practicing Holistic, Problem-Solving Law (American Bar Association, 2010).

     

    “We have not in recent history been very collaborative folks. We are the people to avoid in society,” Kim began. I knew instantly this conversation was going to be interesting. Kim was referring to lawyers who, she says, graduate from law school with “no heart and no soul.” Kim had read “Smashing Silos,” a column I wrote for Bloomberg BusinessWeek. And she insisted that law is all about silos. “We are taught to compartmentalize everything.” These silos include specialties and sub-specialties of law.

     

    Collaborative law begins with the premise that people work out their differences towards the common goal of resolution rather than compete and fight through litigation. This is different from the various forms of court-ordered and pre-court alternative dispute resolution (ADR) such as mediation, because ADR often begins with the premise that if the parties are unable to resolve their differences, the case will proceed to trial. Mediation, for instance, often involves “shuttle diplomacy” in which the mediator runs back and forth between both parties and points out the weakness of each side’s case in hopes of avoiding a trial.

     

    In contrast, collaborative law involves an acknowledgment from both parties that litigation constitutes failure to achieve goals and places a premium on preservation of relationships. Divorce and family law practice has been faster to adopt the shift to collaboration than many other specialties. In such cases, collaborative divorce and family lawyers sign contracts committing to resolve cases rather than litigate. If they fail to settle, the contracts require that the lawyers withdraw from the case.

     

    Collaborative law grew out of a movement in Minneapolis developed by Stu Webb and others during the late 1980’s and quickly spread to northern California and beyond. The International Academy of Collaborative Professionals based in Phoenix brings together lawyers, mental health professionals, and financial professionals to resolve divorce and other conflicts.

     

    One barrier to collaborative law is that many lawyers embrace tradition. “Lawyers hate to be on the fringe. They’d prefer to die than be weird,” Kim explained, adding that her goal is to embrace the fringe. Kim focuses on spreading collaborative law across specialties including corporate law. Too often, corporate agreements encourage conflict and ultimate litigation.  In her practice, Kim abandons “boilerplate” or standard contract language and instead writes agreements in plain language designed to anticipate and prevent conflict. “When a conflict comes up, we’ve actually already talked about what to do if there’s a conflict,” she notes.

     

    Like corporations, lawyers are waking up to the value collaboration creates both for practitioners and customers.

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  • Telepresence Enhancing Travel?

    Videoconferencing and telepresence vendors have traditionally marketed their products as a replacement for travel. This is shortsighted in that real value creation comes from integrating real-time video into business processes. Using telepresence so that people can come together spontaneously and design an airplane or develop animation or create a 24-hour healthcare delivery service produces far greater value than travel savings.

     

    Considering the obsession with marketing real-time video as a travel replacement, you might think hotels would be lukewarm about videoconferencing and telepresence. But there was nothing tepid about Mary Casey and Bob Hermany’s view of Cisco TelePresence as they announced on Tuesday Starwood’s roll out of public TelePresence rooms. The first two Starwood properties to offer TelePresence are the Sheraton on the Park in Sydney, Australia and the W Chicago. You can view the announcement video here. Incidentally, Mary is Starwood’s vice president of global corporate sales and Bob is Starwood’s senior vice president of operations.

     

    Starwood will also install Cisco TelePresence at the Sheraton New York Hotel & Towers, the Westin Los Angeles Airport and the Sheraton Centre Toronto during 2010. Later, the hotel chain will adopt TelePresence at properties in San Francisco, Dallas, Brussels and Frankfurt, among others. In my October 15, 2008 post, I wrote that Cisco and its partner, Tata Communications, were introducing public TelePresence rooms and that the first hotel chain to participate was the Taj Hotels.

     

    During a TelePresence call linking several global locations, Sean Hunt, a Starwood executive who manages the Sheraton on the Park in Sydney positioned Australia’s first public TelePresence room as both a travel benefit and alternative. “The problem is we’re isolated from the rest of the world, so this is a great alternative to long-haul travel.” The point is that rather than replace travel, TelePresence lets somebody outside Australia who may never have taken the flight get face-to-face with colleagues and partners.

    Aside from marketing and public relations advantages, there are potentially tangible benefits for hotels that adopt TelePresence. Besides renting rooms at rates that can approach $500 a day, hotels can charge $500 an hour for TelePresence. That’s the rate at the Sheraton on the Park in Sydney. Australian dollars, of course.

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  • Collaboration Curing Multiple Sclerosis

    It was definitely unorthodox. Many said it was impossible. But it looks like The Myelin Repair Foundation has done it. MRF, which is working on curing multiple sclerosis, is about to meet its ambitious goal of licensing a discovery for commercial drug development within five years. Through a collaborative research model, the Silicon Valley-based foundation has reduced drug development time from 15 years to 5 years. MRF is negotiating with a biotech company and believes a license agreement is in the works.

     

    Intuit Founder Scott Cook, a foundation supporter, suggested I research MRF when I was writing The Culture of Collaboration book.  In the book, I tell the story of how Scott Johnson, who has MS, learned that a cure was taking three or four times as long because of competition among researchers. This prompted Johnson to rethink the culture of medical research and begin changing that culture. Scientists often refuse to share data and information, because they compete for limited grant money and for publishing articles in top medical journals. The answer was to get experts in different disciplines to collaborate. So Johnson raised money, ultimately plowed $20 million into drug discovery work, and built a collaborative medical research foundation.

     

    Johnson brought in fellow tech start-up veteran Russell Bromley as chief operating officer. And Johnson and Bromley recruited five principal investigators who head labs.  They proposed a level of collaboration for curing disease that none of the scientists had ever experienced. Their focus was to repair myelin, the sheath that surrounds the nerves, which MS damages. Johnson and Bromley with input from the researchers developed a Collaborative Research Process, which addresses everything from tools to incentives.

     

    Since its founding in 2004, MRF has advanced work towards a cure for MS beyond anything anybody else had imagined within this timeframe. “Because of our work, we have a much clearer understanding of how to drive neural stem cells to the site of myelin damage in the central nervous system and instruct the myelin-producing cells to remyelinate,” Johnson writes in his recent president’s message.

     

    The Myelin Repair Foundation’s game-changing collaborative approach sets a new standard for medical research. The broader medical research community should sit up and take notice that collaboration among researchers creates greater value than competition.

     

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  • Collaborate to Fix Venture Capital and Innovation Ecosystem

    With a severe liquidity squeeze and a withered initial public offering (IPO) market, the venture capital industry and entrepreneurs face incredible challenges. The infrastructure to take companies public has nearly collapsed.

     

    “The ecosystem is broken,” Judy Estrin told an audience at the Tech Policy Summit this week in San Mateo, California. Judy, serial entrepreneur and former chief technology officer of Cisco, was referring to the ecosystem comprising venture capitalists, investment bankers, universities, entrepreneurs, scientists, customers and others that has launched scores of innovative and profitable companies including Intel, Apple, Cisco and Google over the last forty years.

     

    Judy has become a crusader for innovation, one of the Ten Cultural Elements of Collaboration that I identify in The Culture of Collaboration book. While there have been “exit” opportunities for venture-backed companies in recent years, those exits have been almost entirely mergers and acquisitions (M&A). “M&A is not enough to spur innovation,” Judy insists. Therefore, we must fix the innovation ecosystem and repair the IPO market to regain innovation leadership.

     

    In her book, Closing the Innovation Gap (McGraw-Hill, 2009), Judy chronicles the breakdown of the innovation ecosystem.  She argues that sustainable innovation never happens in a vacuum. “It is not just a flash of brilliance from a lone scientist, nor is it simply the result of a group going offsite to brainstorm and play team-building games.” Judy also quotes Danny Hillis, former vice president of research and development at Walt Disney Imagineering, as saying essentially that the key is not only to create the “soup” where people brainstorm, but also to develop a system that translates their ideas into something effective. Clearly, Judy believes that collaboration is key to innovation.

     

    Collaboration is also key to fixing the innovation ecosystem. Let’s face it. Greed-fueled star culture helped break the ecosystem. To fix it, we must recruit and promote collaborators throughout the ecosystem. This means funding entrepreneurial teams focused on the fundamentals of building great companies. It also means rebuilding the public trust that companies are rooted in innovation rather than hype. It also means changing expectations to embrace long-term growth over short-term returns.  

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  • Telehealth Revisited

    Telehealth is back on radar screens of policy makers, health care professionals, engineers and marketers. As we rethink healthcare economics and delivery systems, technology advances are enabling new approaches and better execution of old approaches. Telehealth can enable healthcare access for underserved populations including rural areas, inner city areas, isolated regions, developing countries, and prisons.

     

    Michigan Corrections Polycom  Telepresence creates new opportunities for virtual consultations to approximate face-to-face encounters between providers and patients and among providers. Tandberg and Polycom, established vendors in  telehealth, now offer telepresence for healthcare. Polycom announced last month at the American Telemedicine Association 14th Annual Meeting and Exposition that the Michigan Department of Corrections is using Polycom telepresence for everything from tele-psychiatry to tele-nephrology.  Cisco’s Internet Business Solutions Group hasCisco HealthPresence developed HealthPresence, which combines Cisco TelePresence with patient health data captured by connected medical devices such as stethoscopes and vital signs monitors.

     

    In the late 1990’s, I conducted research in telehealth and wrote the “Personal Telemedicine” column for Telemedicine Today magazine. The magazine allowed me to write about every aspect of telehealth with an emphasis on how the tools and delivery mechanisms impact people. The name of the column played off my first book, Personal Videoconferencing (Manning/Prentice Hall, 1996). Since many of the telehealth topics I researched then are now re-emerging, I’ll share one column that’s still available online. It’s called "Twenty Minutes in the Life of a Tele-Home Health Nurse," which appeared in the December, 1997 issue of Telemedicine Today. You can read the column here.

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  • Collaborating out of the Downturn Focus of Blog Talk Radio Interview

    I discussed collaboration with Zane Safrit yesterday morning on his hour-long Blog Talk Radio show. You can listen to the show here.

     

    When he was CEO of Conference Calls Unlimited, Zane masterfully used blogging as a marketing and business tool. His small company, based in a rural Iowa community, adopted collaborative culture and tools as an advantage in a marketplace saturated with large players. Zane is a super-capable, collaborative leader.

     

    Our conversation ranged from common denominators and motivators for companies wanting to adopt collaborative culture and the biggest mistakes companies make. We also discussed the need to replace star-oriented culture and the role of collaboration in an economic recovery.

     

    Zane asked me how companies can balance the need for collaboration with the need for consistency, routines and procedures. It’s a thoughtful question that organizations should consider. I explained that it’s necessary to include collaboration in policies and procedures, so that people are consistently collaborative J.

     

    Towards the end of the show, we focused more on the economy. Zane asked me about the biggest trends regarding collaborative culture over the next two years. Here’s what I said:

     

    People are going to realize what collaboration is and what it isn’t, and I absolutely believe that collaboration will help deliver us from the downturn. We need to abandon the herd mentality. I blogged about this on March 15, 2009 with a call to action. You can read the post here.

     

    There’s a misconception that collaboration is about running with the herd. Real collaboration involves constructive confrontation….coming together to hash out issues, make decisions, improve processes and develop products and services. And it’s much broader than companies. It’s about governments collaborating across agencies and departments, with citizens and with other governments. It’s about people working together to create value in our communities.

     

    It’s about changing education so that we’re developing collaborators. The more educated people are, the more competitive they are. Our educational system beats collaboration out of us. That’s changing.

     

    I’ve lived and worked in smaller communities where many people get jobs right out of high school. They’re used to working together to cook dinner at the VFW or help neighbors repair tornado damage. It’s this type of attitude that we need to nourish in our country, in higher education, in companies, in and among governments. Coming out of this downturn, star culture and internal competition are unaffordable. Collaboration will drive the recovery.

     

    “How will that change our economy, culture, country?” Zane asked me.

    I responded:

     

    It’ll be back to basics…working together to create real value. The mortgage mess, the financial collapse were rooted in artificial value. We gave the keys to the country and the economy to star competitors… the best and the brightest who went to top schools and competed for themselves without considering the bigger picture. Now we need to entrust our companies, governments and communities to collaborators. And we’re going to build long-term, sustainable value.

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  • Innovation Value Institute Enhances Collaboration and Unlocks IT Value

    As I stepped into the new “innovation zone” outfitted with leather couches, lounge chairs and café-style tables and stools at Chevron’s headquarters in San Ramon, California yesterday, ideas were flying. The Innovation Value Institute, a consortium focused on enhancing information technology’s role and demonstrating its value, has set up shop for two days at Chevron and yesterday announced its efforts. You can hear the announcement and see slides here. Collaboration is fundamental to IVI in that:

     

    1) Competitors are collaborating in the consortium

    2) IVI’s framework will enhance collaboration between IT and business units

     

    The core consortium includes oil and gas competitors Chevron and BP, competing consulting firms Boston Consulting Group and Ernst & Young, and software companies Microsoft and SAP. Northrop Grumman is also part of the core group as is Intel. In fact, Martin Curley, Intel’s global director of IT innovation, co-directs the Institute, which is housed at the National University of Ireland, Maynooth. Each company is sharing intellectual property, and the partners are all getting more out of the collaboration than the IP that they’re investing. Through the consortium, according to Curley, the members are shifting their thinking and approach from “competitive advantage to collaborative advantage.”

     

    IT is evolving from a service to a “business-embedded” role within enterprises. “IT organizations grew up with the service business model… acting as waiters and waitresses. What technology can I serve you today?” notes Natalie Stone, director of business strategy for Northrop Grumman. “We’ve come pretty far, and we’re poised to take the next leap.”

     

    That next leap for the consortium members involves developing an IT Capability Maturity Framework (IT-CMF) of 36 interconnected processes—things like service analytics and intelligence, enterprise architecture, and innovation management. The idea is to establish a common language and standards for measuring how IT creates business value.

     

    So, how does IVI quantify the value? Ralf Dreischmeier, partner and managing director of the Boston Consulting Group, says the consortium is focused on “50/50/50.” That means increasing IT return-on-investment by fifty percent, reducing time-to-market by fifty percent, and reducing business costs by fifty percent.

     

    Consortiums often deliver little more than announcements and joint news releases, because of the lack of collaboration. “Five to ten years ago, this would have been dead,” insists Dreischmeier. “People were much more protectionist, thinking only about their little environment.”  IVI is succeeding because of the premium its members are putting on trust, sharing and innovation. These are three of the Ten Cultural

    Elements of Collaboration that I identify In The Culture of Collaboration book.

     

    In parallel, businesses can create greater value if there is more trust between IT and business units. “If you don’t have the trust, there’s no way you’re going to make IT better,” acknowledges Chevron CIO Louie Ehrlich. Environment is another element, and Chevron’s “innovation zone” is designed to enhance collaboration and experimentation. “Chevron likes to do things with quality or not at all, but sometimes we need to lighten up and make mistakes,” insists Jack Anderson, Chevron’s innovation specialist, a consortium participant who is also championing collaboration within his company.

     

    I’ve blogged and written in my book, spoken and advised organizations about how cultural diversity enhances collaboration, enables broader input and contributes to better decisions and products. Culture may be regional, organizational, functional, or departmental. The IVI includes cultural diversity on all of these levels. “Diverse groups work much better together,” is how Edwina Fitzmaurice, partner with Ernst & Young, sums it up. Fitzmaurice, based in Ireland, has a diverse professional background including stints as CEO of Prudential Europe Management Services and CIO of J. Rothschild International.

     

    Many of the consortium members—and many other enterprises and IT vendors—have developed their own frameworks for IT value. Microsoft is no exception. There’s broad agreement, though, that an industry standard framework makes more sense for vendors and enterprises. “We can then talk about our product portfolio in a way that resonates rather than being product-centered,” says Samm DiStasio, senior director for business architecture and optimization in Microsoft’s enterprise and partner group.

     

    Ultimately, ITI’s work will be publicly available—but it will never be finished. The nature of a collaborative framework is that it’s dynamic. As business shifts and IT evolves, ITI’s model will also change.

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  • Cisco, Tata and Taj Hotels Bringing Telepresence to Smaller Companies and the Public

    As I walked into Cisco’s new public telepresence suites yesterday at the WebEx tower in Santa Clara, Cisco Video Receptionist California, I was greeted by a video receptionist. “Hi, may I help you?,” the receptionist said. I immediately sensed professional intimacy, because of the quality of the visual experience. “I’m here for a Cisco telepresence session,” I explained. The receptionist then invited me to help myself to the catered breakfast in the outer lobby. I then grabbed a cup of milky, cardamom-spiced Indian coffee, which hinted at the global nature of what was about to happen.

     

    Down the corridor were several public telepresence rooms of different sizes. Cisco people including Marthin De Beer, senior vice president of the emerging technology group, were in one room with Peter Quinlan, director of telepresence managed services for Tata Communications. I was in another room with the research director of The Culture of CollaborationÒ Institute plus a few journalists and analysts.

     

    Joining from his home in Bangalore, India was Wim Elfrink, Cisco’s chief globalization officer, presumably conducting his last meeting of the day at 11:00 p.m. Bangalore time. In London, Vinod Kumar, chief operating officer of Tata Communications, and his colleagues participated. From Boston, Taj Boston Hotel General Manager David Gibbons joined us from the Taj’s new telepresence public room. From New York, an industry analyst was also connected.  So, our group spanned the globe—six connections in four time zones. However, we felt almost as if we were sitting across the table from each other.

     

    Cisco and its partners are challenging the notion that telepresence is an exclusive tool for Fortune 500 executives. “We have found that the largest users of telepresence are the mid-management level in our organization,” says Kumar of Tata Communications, a subsidiary of the $62.5 billion Tata Group. If you’ve been to India, you know that the Tata name is everywhere—on motor vehicles, industrial equipment, and even tea. In recent years,Tata has become a global company.

     

    Tata is a highly-strategic relationship for Cisco in that besides its communications business, the Mumbai, India-based conglomerate has holdings in engineering and building, services, chemicals and consumer products. Taj Hotels, a Tata company, is providing public telepresence rooms in Boston, London, Bangalore, Mumbai and other cities throughout India. “Small and medium-sized businesses will be the greatest users,” predicted Gibbons of the Taj Boston Hotel. There will be a hundred public TelePresence (note that Cisco capitalizes the “P” in its trademarked product name) suites globally by late 2009, according to Cisco. Hourly fees currently range from $299 for a 1-2 participant room to $899 for an 18-participant room.

     

    Unlike office buildings that typically close nights, weekends and holidays, hotels are open 24/7 every day of the year and provide perhaps the best opportunity to maximize a global business environment through pay-per-use telepresence. It’s a holiday in your city, but you need to connect intimately with colleagues in another region where it’s a regular work day? Hotel-based telepresence addresses that issue.

     

    Significant from a technical perspective, Cisco and Tata are providing secure, encrypted conversation through any company’s firewall. “This has not been possible before with any technology,” noted Marthin De Beer of Cisco. Tata Communications delivers converged voice, video and data over Internet protocol (IP). Tata’s strategy is to get companies used to telepresence through public rooms and work on migrating some companies to invest in their own telepresence rooms.

    Cisco says it has integrated 300 telepresence systems into its own operations globally. Some senior leaders including De Beer have their own systems, and Wim Elfrink, Cisco’s chief globalization officer, joined yesterday’s telepresence session from his home office in Bangalore, India.

     

    While much has been made about videoconferencing and telepresence reducing long-distance travel, these tools can also reduce local travel and commuting. De Beer noted that he saves an hour per day by using telepresence instead of driving to meetings on and around Cisco’s campus. As telepresence becomes more widespread, people will gain the opportunity to work globally while reconnecting with their physical—as opposed to virtual—communities. Telepresence will also allow for better work/life balance and potentially take social responsibility to the next level.

     

    After the session, as I said goodbye to the video receptionist, I wondered whether receptionists in Mumbai, Manila and Montego Bay will soon be greeting visitors in corporate lobbies in Memphis, Modesto and Milwaukee. Well, Cisco’s Marthin De Beer, who is based at the company’s headquarters in California, has a video assistant who works from Texas and virtually greets visitors to his office. So, Cisco is clearly practicing what it’s preaching.

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