The technology uses video cameras and high speed network connections to provide personal contact between participants. Currently, both the cost and limitations of the technology are decreasing at dramatic rates. At the same time, corporations are increasingly pressured by international competition to both lower costs and increase dispersed group decision making. The limited availability of digital communications infrastructures capable of supporting the data intensive flow of information required for desktop based videoconferencing is its most significant inhibitor. However, it has been predicted that current advances in data compression and transmission infrastructure will address many of the technical issues required to integrate audio, video and data transmission in desktop based conferencing in advanced, developing and under-developed countries.
Managers select a communication channel trading off convenience with media richness.
This selection process is confounded in the global arena when infrastructure limitations restrict the availability of technology intensive options. The IT infrastructure necessary to support the large bandwidth for video-conferencing is being expanded around the globe. Video-conferencing can now be integrated as part of a desktop PC with capabilities similar to large scale meeting rooms. The global nature of the world economy makes video-conferencing an ideal problem solving tool over long distances when travel is infeasible. Figure 2 is a graphical representation of this relationship.