business case for video

Session ID-ITMGEN-2007

Business Case for Video

www.ciscolivevirtual.com

http://www.ciscolivevirtual.com/

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco PublicITMGEN-2007 2

Agenda

Pervasive Video Business Value

Tiered Video Strategy

Video Funding Model

Managing Pervasive Video

Value and Usage Metrics

Support and Operations

Lessons Learned

Leveraging Your Video Investment


Change business models

Improve productivity

—faster decisions

Scale expertise

Competitive advantage

Reduce emissions

Reduce expenses

Cut travel

ROI achieved within one yearCisco’s Goals

Cisco Pervasive Video Deployments Internal Global Deployment: 13,000+ Endpoints & Growing


Value of Pervasive Video PortfolioImmersive and

Desktop/Personal Video

Choice of life size, in

person or desktop

endpoint

Video Streaming

Video broadcast to desktop PCs

Unified Communications

Video calling, Web Conferencing and

Interoperability

Video Sharing

Creation and storing of

video content for easy

and secure retrieval

Virtual Events

End-to-end planning

and support for off-site,

high profile meetings

• Enable effective CXO level decision making

• Build customer intimacy

• Improve high cost resource productivity

• Increase SME access with high impact at low cost

• Increase

management

communication

efficiency

• Reduce

interpretation

• Improve retention

• Low loss,

time-shifted

communication

• Enable large group

collaboration

• Communicate

effectively

• Provide ad-hoc, low

cost

• Video capability to

all employees

• Reduce

training costs

• Increase executives

interaction with

employees

• Informal messaging

to broad audiences

• Integrated

webcasting,

breakout sessions,

discussions, etc.

• Consistent

experience across

all platforms

• Reduction of

traditional

event costs


Video Enablement Lifecycle

Phase 1

Financial

Justification

• Travel savings

• Productivity

increases

Phase 2

Mechanics of

Deployment and

Operations

• Network capacity

• Governance

process

• Support

Phase 3

Interoperability,

Integration and

Scalability

• User adoption

• Device

Management

Phase 4

Future

of Video

• Pervasive

• Natural and

intuitive for the

user

We Are

Here


Sales: increase customer contact; reduce sales cycle

Marketing: accelerate content development, time-to-market

Product Development: reduce development cycle

Manufacturing: improve supply-chain integration

Professional Services: more consulting time

HR: reduce hiring cycle resulting from remote job interviews

Reduce travel for internal and external meetings

Reallocate travel to increase customer / vendor intimacy

Positive environmental impact, reduce emissions

Facilitate work-life integration, workplace flexibility

Reduce travel ―downtime‖

Increase ―in-person‖ interactions

Improve access to busy executives

Scale and improve access to subject-matter experts

Enhanced communication and decision making

Increased face time with customers

Accelerate decision-making

Effective crisis management

Emergency executive meetings

Improve communication and decision making

Pervasive VideoAreas of Financial Value

Business Continuity

New Business Models

Employee Productivity

Travel Reduction


3 Years—From Initial Video

Program Rollout

Improving Sales Success Rate+ $127 Million2% Increase

Reducing Sales Cycle+ $68 Million2% Decrease

Travel Savings

– $61 Million

5.5% Decrease

Executive & Employee

Productivity Gains+ $42 Million

Cost Avoidance

In Services$21 Million

Source: Cisco IBSG, 2007

* Data Is Based on Present Value of Free Cash Flows Over

a Three-year Period

Based on 170

Rooms Assessment

Changing the Way We Work, Live,

Play, and Learn

$240M

Cisco Internal TelePresence Value CaseNew Business Model Delivers Strategic Value


3-Year Business Value

Drivers

Planned @

170

Actual @

500 Business driver

Increased Sales Closure

Rates (*)

$127.2M $156M Increased customer exposure to subject-matter experts and Sales

leaders via virtual briefings (+2%)

Reduced Sales Cycle

Time (*)

$67.7M $90M Increased availability and reach of subject-matter experts and

business decision makers shortens average sales cycle by 2% (5 days

out of 270)

Travel Avoidance $61.2M $264M Conservative travel substitution: 5.5% of meeting participants avoid a

trip

Productivity thtough

Reduced Travel

$42.1M $99M Four hours saved with every trip avoided, savings based on average

fully loaded cost per employee

Services Cost Avoidance $21.2M - Services cost avoidance from improved training, reduced TAC

escalation costs

Total Deployment Costs -$79.3M -$280M Hardware, facilities readiness, infrastructure upgrades, installation,

network bandwidth, support

Total $240.2M $329M Actual payback was achieved in 9 months

Source: Cisco Emerging Technology IT, IBSG Economics & Research, 2009

Cisco Internal TelePresence Value Case: Benefits Exceeded Plan


Cisco TelePresence

WebEx Video Meetings

Cisco Unified Video Conferencing

Cisco Show and Share

Digital Media Signage

Cisco TV Broadcast

Cisco Desktop / Personal TelePresence

WebEx Connect Video

Cisco Unified IP Phones

Personal collaboration with

Video chat / phone

Interactive life size,face-to-face, real time

collaboration

Cisco Video Ready Network

1 to 1

1 to Many

Many to Many

Tiered Pervasive Video Strategy

Scalable employee communication and

collaboration


Cisco TelePresence


Cisco Unified Video Conferencing



Cisco TV Broadcast

Cisco Personal / Desktop TelePresence (Movi / EX Series)

WebEx Connect Video

Cisco Unified IP Phones1 to 1

1 to Many

Many to Many

Integration and Interoperability




CUVC

Cisco TelePresence




Cisco TV Broadcast

Cisco Personal / Desktop TelePresence

WebEx Connect Video

Cisco Unified IP Phones

1 to 1

1 to Many

Many to Many

Integration and Interoperability

Customer

Partner

Service Provider

Home



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http://www.emilydewan.com/blogpix/20070107_gma_095.jpg


Step 1: After completing our travel

analysis and value case, worked with Finance to use % of our travel budget towards TelePresence program to cover:

• TelePresence resources

• Room readiness

• LAN and WAN upgrade, if required

• Equipment costs

• Cross Atlantic and Pacific links for our core network

Step 2: Introduced client-funded model,

where each organization funds for TelePresence for their locations:

• Equipment costs

• Prepare, plan, and design

• Installation

• Room readiness

• LAN/WAN upgrade if required

• On-site support and remote support

Initial Video Funding Model


Stages of Video Enablement FundingA

DO

PT

ION

Cisco has been through all phases

Pay for Play

Client Paid

Corporate Funding

Allocation Budget Transfer

TIME—TECHNOLOGY LIFE CYCLE


Tiered IT Video Conferencing Offering Strategy

1 to

1

1 to

Many

Many to

Many

Multipurpose

TelePresence

Personal TelePresence

Desktop Video (Movi)

Tiers Service Offering Service Level Drivers

Immersive TelePresence

1-Screen


IP Phone with Video(RT Phone)


3-Screen

Network : Dedicated

Resolution : 5 Mbps

Support : High

Network : Dedicated

Resolution : 15 Mbps

Support : High

Network : Dedicated

Resolution : 3 Mbps

Support : Medium

Network : Shared

Resolution : 384 Kbps or less

Support : Low

Network : Shared

Resolution : 1Mbps

Support : Medium


Tiered IT Video Conferencing Offering Strategy

1 to

1

1 to

Many

Many to

Many

Multipurpose

TelePresence

Personal TelePresence

Desktop Video (Movi)


1-Screen

IP Phone with Video(RT Phone)


3-Screen

5.7 BW units

3.1 BW units

.27 BW units

.27 BW unit

15.5 BW units

.047 BW unit

Tiers Service Offering Service Level Drivers



Planning For In-Room Video Deployments

Completed global travel analysis

Completed analysis of existing Operations

Model

Identified all dependencies and owners

Established cross-functional team to

deploy video and capture lessons learned

Completed LAN/WAN assessment and

site/room readiness

Site prioritizations and phase approach


SecurityNetwork Security, Information Security, Access Control

StoragePhysical Storage Management, Digital Asset Management, Records Management

DeploymentFacilities, Governance & Communication, Provisioning, Logistics & Installation

Network & Capacity ManagementBandwidth Mgmt, Call Management, Network Monitoring, Content Delivery / Distribution

ArchitectureNetwork, Infrastructure, Data Center

z

Bu

sin

ess V

alu

e (V

alu

e/C

os

t,

Use

Cas

es

) Managing Pervasive Video

Service & OperationsSupport Strategy/Model, Case Mgmt, Proactive Monitoring, Upgrade & Release Mgmt,

Training

Video

ConferencingVideo Sharing Video

StreamingM

etric

s(P

roc

es

s &

Data

Mg

mt,

Op

era

tion

s/O

ptim

iza

tion

Me

trics

)


Cisco TelePresence Metrics Dashboard

Global Deployment by Unit Type

Utilization Rates for

Public/Private Rooms

Business Value Metrics


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Immersive Desktop/Personal

Growth of Video UsageN

um

be

r o

f C

alls

90% Y/Y growth in

Desktop/Personal


Growth of Home Video UsageN

um

be

r o

f M

ee

tin

gs

26,381

0

5,000

10,000

15,000

20,000

25,000

30,000

Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12

35% Q/Q growth in home unit usage


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12

Requested To-Date Deployed in Production To-Date

Internal Desktop Video Request

12,500

9,000


Executive Messaging Product Demonstrations Learning and Tutorials

HR Training Community Involvement

Meeting Recordings

Company Meetings

The Valueof Video Sharing


Show and Share Traffic Trends

0

5000

10000

15000

20000

25000

30000

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12

Cumulative Site Views Cumulative Video Views Cumulative Video Uploads

Nu

mb

er

of V

iew

s

Nu

mb

er

of U

plo

ad

s


Average Support Cases per TelePresence Room

FY09Q2 FY09Q3 FY09Q4 FY10Q1 FY10Q2 FY10Q3 FY10Q4 FY11Q1 FY11Q2 FY11Q3 FY11Q4 FY12Q1

7.83

6.48

4.58

3.55

2.61 2.48 2.30 2.20

0.82 0.88 0.70 0.48


Entitlement process and ROI reporting strategy are key to initial set up

Network path assessment prior to deployment is critical to ensure successful calls

Location selection, room remediation and metrics strategy should be considered as part of the architecture for TelePresence rollout

Proactively managing network jitter & packet loss is essential for quality of experience

Regular audits of video rooms helps ensure standards, excellent call quality and reduced support calls

Having easy access to support helpdesk is key in reducing support issues

Cisco on Cisco Pervasive VideoLessons Learned


Future Video Solutions – Here TodayLarge Video

Conference Room Virtual Cafe

Virtual AssistantActive Collaboration Room


Video in the Enterprise Today

IMMERSIVE

DESKTOP

LOBBY AMBASSADOR

TEAM COLLABORATION

OFFICE


Leveraging Your Video Investments

ANYWHERE

PARTNER RELATIONS

HOME OFFICE

CUSTOMER CARE HOME

CUSTOMER INTIMACY


Process

Technology

Culture

Beyond the Technology


Thank you.

business case for video

Documents

cisco andor

cisco ibsg

pervasive video value

cisco public3

cisco public4

video calling

video investmentitmgen

cisco emerging technology