Measuring ROI
Webcast technology vendors today can only dream of building the image of rich multimedia communications as a "must-have" solution for effectively executing day-to-day business. But the costs of using the technology are dropping and will continue to fall as the corporate infrastructure of high-speed networks and advanced PCs becomes even more advanced than it is today.
Even so, cost remains a leading barrier that serves to slow or block the deployment of Webcasting. Roughly one-fourth of those surveyed by IMS cite the cost of the technology as the primary barrier to implementing use of the technology.
Fortunately, concerns over the technical complexity of using the technology are beginning to melt away. Only 8% of 1,206 corporate executives surveyed by Interactive Media Strategies in the Q4 2003 cited "technical complexity" as the key barrier to deploying multimedia-enriched communications applications online. As the technology itself becomes more widely accepted, the key questions that are stumbling blocks to enterprise multimedia communications are the same as those that foil the development of any other type of technology in the corporate sector. One of the key themes that must be addressed to garner more widespread use of Webcasting comes from answering the question, "How is the company going to use it?"
The Right Profile
Even with more reliable technology in place, vendors still face the challenge of raising Webcasting’s profile among corporate users. The ability to use Webcasting to cut travel costs certainly has its appeal but resonates with only a subset of the executives that could benefit from using the technology. In order to win widespread acceptance, online multimedia has to be perceived as a premium communications alternative that enriches the experience of executives who would otherwise use email, telephone, or Web conferencing technology to convey their message to individuals in far-flung offices.The cold, hard truth is that people who have not used Webcasting cannot fathom the value it brings to the table. Indeed, individuals who haven’t been exposed to Webcasting at their organizations perceive the barriers to its deployment far differently from those who have seen it first-hand.
While the percentage of people citing cost as the primary barrier is relatively consistent—near the 25% level—across a variety of respondent groups, the perceptions about the usefulness of Webcasting can vary dramatically.
Among those at companies that deploy zero Webcasts annually, 31% cite the factor of "No Need/No Use in Business" as the primary factor that slows or blocks the deployment of online multimedia in the enterprise. In contrast, among those at companies deploying more than 50 Webcasts annually, only 15% say that there is "No Need/No Use in Business" for online multimedia applications.
It seems that those who see and experience Webcasting come to perceive it as a valuable communications tool. Those without exposure to the technology have a difficult time figuring out what all the fuss is about. At companies where Webcasts are deployed 50 or more times a year, more than 90% of executives surveyed by Interactive Media Strategies describe the technology as an effective tool for communications. At companies that produce no Webcasts, only 35% consider online audio and video to be an effective communications tool.
Other variables besides existing usage, however, can be employed to determine whether an organization or corporate department is a good candidate for experimenting with the use of multimedia-enriched communications.
Executive Decision
Often, an organization’s relative level of interest in Webcasting—and the primary factors that will encourage deployment of the technology—can vary from executive to executive within a company. Indeed, the arguments for Webcast deployment that may resonate with executives within the information technology department may fall flat with those working in a functional department of the organization.
That’s because when it comes to gauging the ROI of Webcasting, beauty truly is in the eye of the beholder. An individual’s role within an organization certainly can color the way they gauge the usefulness of enterprise Web communications applications. The differences in perceived value are evident between IT executives and those from other disciplines in the corporate environment.
In general, IT professionals are likely to be more pragmatic in their evaluation of technology solutions. Their priority is to find ways to make their organizations more thrifty in their use of resources. Not only do these executives have a higher than average interest in reducing costs, they also are more likely to value applications that save an executive’s time as well. Individuals outside of IT, in contrast, are more interested in creating new opportunities, with a more keen focus on issues such as increasing productivity, boosting revenue, and generating sales leads.
In our study, "Increased Productivity" topped the list of relevant ROI factors for both IT executives and their non-IT counterparts. However, 28% of non-IT executives cited "Increased Productivity" compared to 23% of IT executives.
In contrast, the percentage of IT executives citing "Reduced Costs" as a key factor outstripped the percentage of non-IT executives citing cost issues. Instead, non-IT respondents focused more heavily on ROI issues such as "Increased Revenue" and achieving communications objectives in the form of "Improved Employee Understanding of Business Strategy."