Internet telephony also known as VoIP (Voice Over Internet Protocol) is a rising trend in businesses today. According to Information Technology Management for Management, section 4.3 on commucnication, VoIP can work in several ways, but first lets look at how traditional telephone calls are made. A person picks up a phone and dials a number which then travels via analog signals along a circuit-switched network. The final destination is another telephone at a specific location. VoIP calls can be made from a VoIP phone or a PC. The call are digitized and travel over packet-switched networks, such as the internet. These calls are not associated with any physical location or device. To place VoIP call, users can use regular phones that are connected to VoIP adapters, use IP phones (which connect to the internet instead of a phone jack), or use software, such as Skype, on a PC or PDA (Turban, Leidner, McLean, and Wetherbe).
This has become a popular form of communciation in the business world. One company that is using VoIP capabilities to its advantage is Dutch express-delivery company, TNT. This company uses 47 aircraft and over 26,000 delivery trucks on a daily basis. Obviously, this requires the use of a large amounts of gasonline and oil. The health of the business is dependent on fuel, so TNT must find other areas to recoup some of the costs incurred by rising fuel prices. Also, TNT recognizes the importance of attepting to offset some of its CO2 emissions in order to shrink its carbon footprint (Schenker).
TNT implemented a program titled Planet Me, which encourages employees employees to reduce carbon dioxide emissions by teleconferencing using VoIP rather than commuting into the office everyday. Videoconferences have also reduced the need for excessive business travel. By using VoIP, TNT employees can work from any location. TNT estimates that the Planet Me program will result in a CO2 savings of 2.6 kilotons a year. Not only is teleconferencing good for the environment, but it also helps TNT employees achieve a better work life balance. (Schenker).
TNT is also saving money through reducing international phone calls. VoIP does not recognize physical locations so there are no long distant charges. If VoIP is used in lieu of traditional telephone calls, companies have the potential to save a considerable amount of money.
Worldwide videoconferencing systems and services market was a 1.63 billion dollar business in 2007. It is expected to grow to $4.2 billion by 2012. However there is some concern that the subprime crisis will result in cutbacks which will reduce spending in VoIP equipment (Schenker).
view article at http://www.businessweek.com/globalbiz/content/aug2008/gb2008085_094217.htm
Sources:
Schenker, Jennifer. "Economic Woes Boost Videoconferencing." BusinessWeek. Aug. 5, 2008. Retrieved Sep. 16, 2008, <http://www.businessweek.com/globalbiz/content/aug2008/gb2008085_094217.htm>
Turban, Leidner, McLean, Wetherbe. Information Technology for Management. 6th ed. John Wiley & Sons, 2008. p.141-142.
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I absolutely love skype. I wish I have found it sooner. Started researching for work for net conferences, meetings and training sessions. Some of our consultants use Voip to manage their overseas associates.
Does have a downside, it too can be hacked and since it is live streaming and extra effort for firewalls and virus must be made by IT departments.
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