Sunday, July 24, 2011

As Video Becomes More Ubiquitous, Decisions More De-Centralized

Interactive Media Strategies released data on July 14 showing that 62% of corporations that purchased video communications technology made the decision at the President/CEO level when there was no prior investment in this kind of technology.  That number dropped to 58% when the prior year's spend was as much as $10,000.

The same data shows that when an enterprise already spends $100,000 or more annually on video, the decision-making authority is almost evenly distributed between IT (35%), functional department heads (31%), and the President/CEO level (34%).

I think the clear implication of this data is that when corporations are already committing resources to video communications and the value of video has already been established, and this kind of technology is no longer considered exotic, then decision-making authority becomes more broadly distributed to IT and the business units.

This data is interesting when paired with data released in 2010 that shows 15% of executives surveyed that do not spend money on video and are thus not using video communications believe video communications are "very effective."  58% of executives surveyed that spend $100,000 or more annual on video technology indicated they believe video communications are "very effective."

I am sure this great difference is due to several factors, including: executives who are predisposed to see value in video are those most likely to invest in it, and those that have already made a six figure investment in video will likely not be motivated to feel as if the investment was wasted.  Nonetheless, video obviously wears well because executives who are heavily invested in video believe much more in its value than executives who do not employ the technology.