Lakhasly

Cisco TelePresence: The "As if you were there" Technology Research demonstrates that visual clues--such as raising an eyebrow or slumping the shoulders--comprise more than 50 percent of the information conveyed in a conversation. Unfortunately, until now, video technologies failed to provide the necessary fidelity to transmit these revealing clues effectively. However, Cisco Systems has created a two-way video communications system that preserves all those important nuances, in the process pioneering a new form of digital communications that rivals the effectiveness of in-person meetings. Twenty-five patents are pending for the Cisco TelePresence "as if you were there" technology.As the price of key TelePresence technologies, such as plasma screens and broadband connections, will almost certainly continue to decline rapidly, Cisco believes that the system will enjoy a wider array of applications, making it affordable for more organizations and even for individuals from home.Benefits By reducing the need for in-person face-to-face meetings, organizations can reap significant benefits from reduced travel costs, greater productivity, and better relationships with customers and partners.One industry analyst observed that video conferencing is like riding a 10-speed bike while TelePresence is like driving a Ferrari.The Price Tag The Cisco TelePresence 3000 costs approximately $300,000 for each installation, or room, plus additional support costs.For global companies, executive travel is disruptive, costly, and time-consuming.By contrast, the Cisco TelePresence 1000 is priced at $80,000 per room.Why travel to meet in person if you can communicate just as effectively through TelePresence?Discussion Questions 1.

Cisco TelePresence: The “As if you were there” Technology
Research demonstrates that visual clues—such as raising an eyebrow or slumping the shoulders—comprise more than 50 percent of the information conveyed in a conversation. Unfortunately, until now, video technologies failed to provide the necessary fidelity to transmit these revealing clues effectively. However, Cisco Systems has created a two-way video communications system that preserves all those important nuances, in the process pioneering a new form of digital communications that rivals the effectiveness of in-person meetings. Twenty-five patents are pending for the Cisco TelePresence “as if you were there” technology. One industry analyst observed that video conferencing is like riding a 10-speed bike while TelePresence is like driving a Ferrari.
Benefits
By reducing the need for in-person face-to-face meetings, organizations can reap significant benefits from reduced travel costs, greater productivity, and better relationships with customers and partners. For global companies, executive travel is disruptive, costly, and time-consuming. Why travel to meet in person if you can communicate just as effectively through TelePresence?
The Price Tag
The Cisco TelePresence 3000 costs approximately $300,000 for each installation, or room, plus additional support costs. By contrast, the Cisco TelePresence 1000 is priced at $80,000 per room. As the price of key TelePresence technologies, such as plasma screens and broadband connections, will almost certainly continue to decline rapidly, Cisco believes that the system will enjoy a wider array of applications, making it affordable for more organizations and even for individuals from home.
Discussion Questions

1. Using the technology life cycle as a framework, propose particular marketing strategies that Cisco might employ to “cross the chasm.”


2. Identify particular market segments that Cisco might target for the TelePresence product.
   Brief of the Case:
   Cisco Systems has created a two-way video communications system that preserves visual clues, creating a new form of digital communications that rivals in-person meetings. Organizations can benefit from reduced travel costs, greater productivity, and better relationships through TelePresence. Cisco's TelePresence 3000 and 1000 offer a wider range of applications, making them more affordable for organizations and individuals.

Answers:

1. 
   

   The technology adoption life cycle explains the type of customer in the course of technology development. It includes innovators, early adopters, early majority, later majority, and skeptics. The case study explains company C and its tectological development. C’s Telepresence is a digital communication innovation in the market. It helps to eliminate face-to-face in-person meetings and reduce costs and improve productivity. C cost $80000 per room for 1000 Telepresence. C believes that it can be made affordable wince it enjoys a wider acceptance.

   
   


2. 
   

   The best way to cross the chasm, company C should focus on pragmatists. These are individuals who are called early majorities. These individuals make a bulk purchase of technological upgrades since they believe in technology evolutions. Focusing on early adaptors of innovators may not work effectively since they will tend to move to the next revolutionary product if rival companies introduce any new products. Here, the best fit type of customers is early majorities. These individuals are large in number and they tend to stick to the market leader who has a proven track record. C already has a proven track record of excellence in technology upgrades. Thus, it is the best way to cross the chasm.