Virtual Meetings: Smart Management Analysis
Jeff Hebert
April 27, 2012
City University, Bellevue, WA
Virtual Meetings: Smart Management Analysis Teleconferencing and video conferencing are a technologies that allow individuals to conduct meetings virtually. A virtual meeting can be as simple as a multi person conference call, to a full blown video meeting with several individuals from all over the world. Technology advances and increases in travel costs have made virtual meetings an attractive option for both small and large businesses. However, companies must be aware of the risks of virtual meetings and implement proper precautions to avoid loss of intellectual property or sensitive company information. This paper will analyze case study Virtual Meetings: Smart Management (Laudon, K. & Laudon, J., 2012, pg 62)
History
The American Telephone and Telegraph introduced the concept of teleconferencing in the 1960s through its Picturephone device (Furnem 2007). Initial Picturephone’s were small Cathode Ray Tube (CRT) units with a small camera built into the housing. Many units were designed to sit on a desktop with the average unit size being approximately 6 inches. It would be several years before color would be available on the Picturephone (Wikipedia n.d.a). AT&T was one of the first to offer Picturephone service to businesses. Initial cost was high at approximately monthly cost of $169, plus 25 cents per minute after the first 30 minutes. (Wikipedia n.d.a). The high cost of use along with a slow scan picture rate greatly limited the appeal of the Picturephone. At its peak Picturephone service had about 500 subscribers, with the service fading away in the 1970s and finally ceasing in the mid 1970’s. Increase cost of travel along with advances in technology, mainly the internet, faster computer processors, smaller web cameras, and greater bandwidth have revitalized videoconferencing and virtual meetings. There are several providers of videoconferencing software, such as WebEx (owned by Cisco), Microsoft Office Live Meeting, and Skype. Other companies, such as Cisco Systems, HP, Panasonic, and Sony offer both hardware and software for larger business applications, such as telepresence.
Technology
A virtual meeting utilizes video cameras, usually web cams, monitors, audio devices, such as microphones, computer hardware, video monitor, and software. The video and audio streams are captured on the host system and compressed. After compression, the data is divided into segments, called packets. The packets are then transmitted from the host to a recipient, or recipients system through a digital network, such as the internet. The data is decompressed and converted into audio and video on the recipient’s hardware. Video and audio transmissions occur in real time, with little latency or delay for high bandwidth systems. Advances in technology have allowed personal computers, cell phones, IPads, virtually any device with internet connectivity to be used for virtual meetings. Larger, higher quality systems use dedicated computers and audio devices solely for virtual meetings. Video conferencing software also allows to real time editing of documents from all participants, real time file sharing, white board applications, and several annotation and note features.
Video versus Telepresence Telepresence is best described as a high end, enhanced video conference. Good (2007) describes telepresence as “a set of technologies which allow a person to feel as if they were present, to give the appearance that they were present, or to have an effect, at a location other than their true location.” Telepresence systems are relatively new. However, several companies, including Cisco, ATT, and HP, are producing telepresence products. Telepresence systems are separate from standard video conferencing in that there is usually a special meeting room dedicated specifically for telepresence meetings. The conference rooms are equipped with high resolution plasma monitors displaying all attendees that participate in the meeting. The monitors display a near life size image of the attendee, to give the appearance that they are present. Additionally, an integrated VoIP phone line is used for high quality audio communication. [pic] Cisco Telepresence System (Copyright – Cisco, 2011) Telepresence systems range in cost from as low as $5000 to upwards of $700,000. Use of telepresence systems is not expected to skyrocket, but many major companies are installing rooms for high-end board meetings, briefings, and research and development (Dosh, 2007). Due to the high cost and difficulty in measuring return on investment, telepresence systems remain an option for large companies.

Security As with any type of electronic business communication, security is paramount. Unlike a hacker breaking into personal email or computers, a hacker who breaks into a virtual meeting will be able to survey company data, steal intellectual property, or sabotage the video conference. Security measures, such as using passwords for meetings and encryption for data transmission, will help prevent hackers from unauthorized access (Levine, 2010). Identity theft is another major concern for companies that use virtual meetings. A hacker could break into a virtual meeting and simply observe the participants, mining for personal information. Therefore, virtual meeting participants should refrain from sharing personal information, especially when the participants do not know one another outside of the virtual meeting (Levine, 2010). Another security issue companies may encounter is unauthorized recording of virtual meetings. If a virtual meeting contains trade secrets or sensitive company data or intellectual property, the host should make sure that recording the meeting cannot take place. One method would be to use a web conferencing agent that does not allow for recording. It is also a good idea to remind participants that recording is not permitted.
Impact on Business Travel With all the benefits of virtual meetings, one industry, the travel industry, has felt a negative impact. The high cost of fuel, along with rising ticket prices has made virtual meetings a valuable substitution for many business travelers. When businesses use video conferencing, airline travel is reduced, hotels see reduced occupancy, and rental car companies see decreased revenues. Even the government is utilizing virtual meetings. According to Internet MegaMeeting (2012) “The Department of the Interior could stand to save millions of dollars and reduce carbon emissions if it uses video conferencing technology to cut back on travel”. While travel has decreased, it is unlikely that v virtual meetings will eliminate business travel as a whole. Some business functions, such as contract signing and keynote speaking will require in person presentation. Some hands on training cannot be completed with video conferencing. Engineers and technicians will need to travel to review products or assist in repair of items too big to transport. Studies into the psychological aspects of in person meetings suggest there is a benefit to meeting face-to-face. For example, in person meetings allow observation of non verbal communication, such as body language and hand movements that might not be visible during a video conference (Arvey, n.d.). Face-to-face meetings allow participants opportunities to develop transparency and trust among each other in ways that are not always possible compared to other forms of communications. Trust is very important in business. In person meetings allow trust to develop faster. Another feature is simply the fact that face-to-face business meetings provide human contact among members. (Arvey, n.d.).
Recommendations
Virtual meetings, video conferencing, and teleconferencing are beneficial to businesses. It reduces travel budgets and allows instant communication with one or more business colleagues, partners, suppliers, or customers. With the advance in technology, mainly web cams and video conferencing software, small business can take advantage of virtual meetings. Increases in technology have also reduced the cost of hosting a virtual meeting. When conducting virtual meetings, businesses need to be aware of the risks. Hacker with sophisticated hardware, software, and knowledge, can hijack a virtual meeting. Company data, financial data, and even personal information are at risk. Businesses should make sure they have protected systems, including passwords and encryption. Meeting organizers should be familiar with how to host virtual meeting and be familiar with the equipment. While virtual meetings will never completely replace business travel, businesses should use virtual meetings at every opportunity.

References
Arvey, R.D. (n.d.). Why Face-to-Face Business Meetings Matter. Retrieved from: http://www.iacconline.org/content/files/WhyFace-to-FaceBusinessMeetingsMatter.pdf
Dosh, C. (2007). Remote Conferencing on the Rise, Supplementing High-Growth Business Travel. Retrieved from: http://www.businesstravelnews.com/Business-Globalization/Remote-Conferencing-on-the-Rise,-Supplementing-High-Growth-Business-Travel/?a=proc
Furnem, J. (2007). All About Teleconferencing. Retrieved from: http://ezinearticles.com/?All-About-Teleconferencing&id=508274
Good, R. (2007). What Is TelePresence? Retrieved from: http://www.kolabora.com/news/2007/03/28/what_is_telepresence.htm
Laudon, K. C. & Laudon, J. P. (2012). Management Information Systems. Managing the Digital Firm (12th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
Levine, R. (2010). 10 Common Video Conferencing Security Issues. Retrieved from: http://www.brighthub.com/computing/enterprise-security/articles/99328.aspx
Internet MegaMeeting (2012). The Department of the Interior may reduce travel costs, increase video conferencing. Retrieved from: http://www.megameeting.com/news/articles/The-Department-of-the-Interior-may-reduce-travel-costs,-increase-video-conferencing-800683641.html
Wikipedia (n.d.b). Videoconferencing. Retrieved from: http://en.wikipedia.org/wiki/Videoconferencing
Wikipedia (n.d.a). Videophone. Retrieved from: http://en.wikipedia.org/wiki/Videophone