Collaborate to keep up

AV Magazine

As the AV sector takes on the ‘as a service’ model, procurement is changing, and providers need to work in partnership with the client to benefit both parties.

The conventional vendor-specific ‘room in a box’ no longer cuts it when the modern enterprise is looking for unified communications and collaboration.

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“There has been a shift in the enterprise space in the last few years regarding AV and communications, from tactical to strategic,” says Byron Tarry, executive director at the Global Presence Alliance (GPA). “The modern workplace is moving towards Microsoft or Cisco teams and AV in the conference space is moving from ‘nice to have’ to an integral part of collaborative workflow.”

Ultimately, the customer is looking for “improved collaborative outcomes”, Tarry argues. “From an industry standpoint, if we start to realise we are not technology providers but human collaborative outcomes providers, then it opens up a whole different world of what the opportunity is and the role we as AV suppliers, integrators, vendors and consultants can potentially play to support that goal.”

GPA will formalise this at InfoComm, where it will promote its new Velocity Ecosystem for global enterprises. This is described as an “integrated and standardised portfolio of collaboration solutions”, which includes program planning, hardware/software and deployment and support, along with a strategic management and analytics dashboard. Developed in partnership with Crestron, Cisco, Logitech, Legrand AV, Domotz and LG, the aim of Velocity Ecosystem is to deliver a quick path for standardisation, simplification and scale worldwide.

“The starting point for this was asking ourselves if we could deploy 1,000 rooms in 90 days and we decided we couldn’t do it in the way we’ve traditionally done,” Tarry says. “Even with all the advantages of global alignment, we still felt it would be a tall order.”

He explains: “The effort that goes into room remediation alone would mean it would take years to deliver. But when you shift the lens in terms of what you’re trying to provide to customers, which is essentially to help organisations move faster and which, in turn, brings them competitive advantage, then you think about mitigating the risk of each individual space by working with vendors to innovate and design your way to a fresh solution.”

However, this hugely magnifies the complexity of procurement. From simple models based on cost where, all things being equal, the vendor with the least expensive solution would win, the industry is slowly taking on the attributes of ‘as a service’.

Accountability shift
“In a world where ‘as a service’ is becoming prevalent, the challenge for procuring AV as a service is about a shift in accountability and risk from the consumer of the service to the provider,” he says. “Basically, it’s putting the onus on the provider to deliver results. That’s opposed to the prevailing capital expenditure model where (the industry) sells customers millions of dollars of kit with a service wrapped around it and if the customer doesn’t get what they want then the industry gets them to buy more kit and services.”

In the service model, the customer is willing to pay more if the provider can deliver better outcomes. However, it’s also extremely complex to measure, which is why part of the procurement package has to be about measurement and analytics for return on investment.

“New technologies now offer organisations insights into how and where they can drive efficiencies in existing AV setups, while advanced features such as energy-saving modes reduce the total cost of ownership in the long term,” says Carl Standertskjold, corporate segment marketing manager at Sony Professional Solutions Europe. “This is especially important at a time when budgets are limited and procurement teams need to have a firm understanding of a solution’s return on investment before authorising any purchases.”

He says the Internet of Things will also see AV solutions become increasingly connected, offering organisations two main benefits. “It enables them to collect valuable data on how and when these technologies are being used to spot patterns, understand user behaviour and challenges, and ultimately, help inform future procurement decisions,” says Standertskjold.

“On the other hand, the more connected an organisation’s AV solutions are, the easier it is to integrate new technologies into an existing setup without the need for a complete overhaul. This, again, helps streamline the procurement process.”

Tarry advises that partnership is needed for procurement on the industry and customer side to ensure innovation, optimisation and alignment of complex but highly strategic and business-critical services.

“Together, we must look for ways to minimise risk, create transparency and focus on common goals. It’s about putting a financial model in place that doesn’t create mistrust, yet has benefit for all parties,” he says.

One of the main bones of contention between parties is that AV is often engaged late on in a project, which results in tight timescales.

“The best and most effective processes are those with a defined forecast and defined roll-out, where accessibility to advance information supports a just-in-time operation,” affirms Guy Phelps, end-user account manager in the finance and legal team at NEC.

While he does not highlight any major issues with current policies, pressure points are building as more projects are created at the last minute, often as end users react to the previous quarter’s performance.

“The more advance notice gained from the end user with detailed specifications, the more slick and effective the process will become,” Phelps emphasises. “The AV industry is responding, but the end user needs to understand that as equipment and projects become ever more complex, and with roll-out processes based on ‘just-in-time’ in order to meet tight budgets, access to information to enable accurate forecasting is vital. It is essential that manufacturers, integrators and end users work very closely to ensure the best information is available to all parties in advance.”

However, Tarry contends that the AV sector needs to adapt further: “As a tech provider, we tended to say we were brought too late into the planning phase and that we were reliant on the space and construction parts aligning – but we can’t continually blame everyone else for that. We have to shift our perspective and change our pitch.”

With regard to the procurement of AV systems as part of a construction project, late AV systems involvement “forces projects down a two-stage tender route”, says Daniel Watson, senior consultant – AV and multimedia at PTS Consulting. “Communication between the main contractor/builder and the AV integrator is key, and as such this relationship often takes precedence over how suitable and/or capable the integrator is to deliver on the project.”

‘Procure AV earlier’
While single-stage tendering provides the project with greater cost certainty earlier on, the total cost of variations (such as changes to system designs) can be expensive.

“Given the speed of technology innovations and constant changes in user habits, this is a serious risk to a client,” Watson warns.

With the two-stage process, the client may enjoy greater flexibility but the AV systems’ cost is a moving target. What’s more, the full impact on other services (IT, building management systems, mechanical and electrical) is also unknown until the project end. According to Watson, this is often the root cause of the narrowing of commissioning windows on site as all trades are commissioning at the same time.

“If AV was taken into consideration earlier in the project lifecycle, and consultant practices were engaged earlier, much of the design development, tech trials and third-party integration requirements (IT and networks for example) would be completed upfront,” he insists.

Manufacturers are increasing specialist engineer resource engagements with integrators, especially at the commissioning stages. PTS Consulting reports that a number of manufacturers are providing commissioning services that can be specified by the consultant as part of the AV systems invitation to tender/specification package.

No ‘one-size-fits-all’
Ultimately, the key to successful investment into new technologies is to ensure high user adoption, so new solutions need to be rigorously tested and analysed to ensure they are intuitive to use, perform as intended and meet user expectations before being deployed.

Of course, decisions must also fit with the firm’s wider investment policy. “Once the decision has been made to invest in new technologies that meet the needs of users, it is essential that procurement, facilities, IT and AV managers work together to ensure new solutions they want to deploy are in line with the company’s wider AV investment strategy,” says Standertskjold.

That being said, there is no one-size-fits-all approach here. Every enterprise is unique, with specific needs, so suppliers need to collaborate closely with all AV integrators and managers in order to offer customised solutions that best achieve an organisation’s strategic aims.

By having these conversations between end users, integrators and manufacturers, AV suppliers can continue to have a finger on the pulse of the market and develop solutions in line with the requirements of modern enterprises.