Tense market environment influences the corporate AV market
Video and collaboration first.
A great user experience is crucial.
Increased office space density and “office as flagship”.
Flexibility, scalability and efficiency in roll-out and operation.
External market influences.
The corporate AV business model is changing – a fictitious example
In a large company based in Germany with several international production and sales locations, the Corporate AV Manager’s remit has expanded considerably. He is responsible for ensuring that all technology systems (e.g. UCC, digital signage, room and desk booking) function smoothly and always meet the company’s current business requirements.
This requires a high level of technical expertise, process competence, project management skills and the ability to work with different teams and stakeholders. He understands user and business requirements and always translates these into appropriate technology solutions and services. Always focussing on user experience, business continuity and meeting productivity.
When procuring solutions and services, he decides on “make or buy” – which services and competences are to be developed and managed in-house and which are to be outsourced to external experts. He focusses on investment and operating costs in terms of total cost of ownership and benefits. It manages delivery times and availability with foresight and makes conscious decisions about single or multiple vendor procurement models.
When realising AV projects, he differentiates specifically between recurring requirements for standard projects and special requirements. In order to realise economies of scale in terms of resources, costs, speed and quality, he develops scalable technology and process standards for equipment, implementation and operation for standard rooms.
This is also where he sees the greatest potential for outsourced “Meeting Room as a Service” models in order to relieve his own organisation, outsource risk and increase service quality. For special areas (e.g. boardrooms, showrooms, control desks, event areas, etc.), he sets up projects with specialised planning and implementation partners. He is aware that the operational phase determines the success or failure of concepts and solutions.
His focus during operation is on productivity, security and availability of the AV systems. He continuously optimises costs and quality through effective service management across the entire AV lifecycle. Managed service or AV as a service models offer him an important alternative to traditional investment and the establishment of his own structures.
In terms of strategic technology management, he regularly evaluates technological innovations and potential partners in terms of their relevance and potential for his organisation. He has committed to the sustainable use and operation of technology as part of his organisation’s ESG goals. Measuring the performance of corporate AV, he has actively developed KPIs and established them in a planning and management model for his area of responsibility.
Market changes and trends in the corporate AV market
In view of the tense market environment and the expanded and changed business model of corporate AV on the customer side, there are many opportunities for market participants, but also considerable challenges. On the user and end customer side, the internal organisational silos in IT, RE, FM and HR will increasingly dissolve and merge in order to provide users and the organisation with a flexible, sustainable and hybrid workspace service.
The lead for corporate AV is increasingly anchored in the IT organisation and the mindset of corporate AV is changing from technology expert to digitalisation consultant for the core business. This change is linked to increasing consideration of outsourcing for all competences and services that can be provided more flexibly, better and more economically externally. Consultants, specialist planners, manufacturers and system integrators need to question their own business model and organisation in order to align themselves strategically.
Differentiation, cost leadership or niche strategies come into question. “Think global, act local” is a strategic approach that combines supra-regional or international market coverage with local or national delivery capability in order to be able to serve large customers in a scalable manner. This is achieved by forming strategic networks of integrators (e.g. GPA or PSNI), M&As or strategic co-operations (e.g. WEAVE – European AV Experts).
As corporate AV is increasingly merging with IT solutions, IT topics must be included and offered as part of integrated technology management in the future. Today, AV installations are increasingly becoming part of a corporate IT architecture. Important additions to expertise include the Internet of Things, smart buildings, IT networks and cloud-based application platforms, data protection and IT security.
Manufacturers are facing the increasing challenge of providing international pricing, delivery and service models. Only a few providers have been set up for global supply agreements to date, but this is increasingly expected by customers. Their aim is to provide internationally available solution standards and defined service levels for standardised and consistent quality in the provision of services. Products and solutions must be designed to fit all systems and interface-compatible in order to realise success and distribution on the market.
To summarise, the professional AV industry will have to strategically align itself, particularly in the corporate AV growth and volume market, in order to face increasing competition from large IT players on the international market and meet future customer expectations. Expanding areas of expertise, strategic sales, scalable delivery and service models and the formation of strategic alliances are important components of a future-oriented strategy.
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