Quality Audio: a sound investment The changing role of audio in business A global research report by EPOSEarlier this year, we revealed that bad audio is bad for business1, and that “what?” is the most expensive word in business today. Our pre-pandemic research showed that the average audio solution end user loses 29 minutes per week due to poor sound quality on voice calls. In the current climate, with more workers than ever collaborating remotely, the cost of “what?” has skyrocketed. EPOS is committed to developing audio solutions that support people to perform at their very best professionally. For us, it is essential for business leaders to understand the important role audio communications plays in their companys success and to know how to access the right technology to support those communications. To help us share the message about the importance of audio, we wanted to get clearer picture about how decision-makers globally and across a range industries perceive the role of audio and to understand how they see this role evolving in the near future and the corresponding levels of investment they expect to make. The new research highlighted in this report digs into how businesses are responding to the rising status of audio in business, and how they plan to invest in audio solutions in the future. The headline results are encouraging. With the already emerging hybrid-working trend accelerated by the current health situation, it is may be no surprise that companies globally are recognizing the power of audio as a key business tool - 83% of decision makers say that audio equipment has become more important to their business over the last two years. But I am encouraged that our research also shows this recognition translating into a focus on quality of experience, and a commitment to investment in audio to match. 95% of decision makers we surveyed globally are planning to invest in new audio equipment periodically over the next few years. Business leaders have realised that collaboration technology works just as well as face-to-face meetings in many cases, and that there is a positive correlation to time and money saved when it comes to using virtual solutions. Those who might never have considered audio technology as a key business tool, are now recognising its significance. In the future, I expect to see the global workforce move to fully embrace hybrid working, to a model where we wont be in the office all the time, where people will work in a place that suits them. This will change the future of work forever, and audio and collaboration technologies have a vital role to play. With audio technology constantly evolving from AI helping to personalize our experience, through to considerations about the workspace and how premium audio can influence the optimal layout for businesses, I am excited to see how these trends evolve in future. I hope that the insights shared in this report spark some ideas to help business leaders plan for the future of virtual collaborative working practices, and encourage further thought and discussion about the role of audio and the solutions we need to support its essential role in making our businesses future-proof. Foreword from Jeppe Dalberg- Larsen The role of audio is changing, and it has never been a more important tool for business. Think about your average working day. How many conversations are you having via phone or video call? More than ever? If this is your experience, you are not alone. Working culture is changing and quickly. More of us are connecting with customers, colleagues and other professional contacts using audio tech than ever before. And with this reliance, the grade of equipment and technology we use to have these conservations is or should be becoming increasingly important. Jeppe Dalberg-Larsen - President at EPOS 2 Quality audio prioritization for the pandemic and beyond Quality audio prioritization for the pandemic and beyond 3Contents 06 Introduction 08 Insight 1 Hybrid working has increased the importance of audio in business 12 Insight 2 Audio quality is a priority, and businesses will pay more for it 16 Insight 3 Quality audio communications is key to business performance 18 Insight 4 Bigger employers make a bigger commitment to audio investment 22 Insight 5 There are clear global trends, with regional and market-led early adopters 24 Conclusion 28 About the research 4 Quality audio prioritization for the pandemic and beyond Quality audio prioritization for the pandemic and beyond 5Introduction In September 2020, EPOS commissioned research, in collaboration with business and consumer market research company, Sapio, to discover business decision- makers perceptions about the role of audio communications in business success, and the levels of investment they expected to make in audio technology now, and in the near future. We conducted online surveys with almost 2,000 business leaders and decision- makers across: US, EMEA (UK, Germany, The Netherlands, France, Belgium and Denmark), APAC (Hong Kong, Singapore and Australia), and from the following industry sectors: IT & Digital Manufacturing/production & engineering Retail & Leisure Business Services Finance Construction Healthcare Transport & Wholesale Local Authority & Public Sector Hospitality (4%) Insurance Media Telecommunications & Utilities NGO This report highlights the key insights from this research, with commentary from Jeppe Dalberg-Larsen, President at EPOS. Further information about the research methodology can be found at the end of this report. 6 Quality audio prioritization for the pandemic and beyond Quality audio prioritization for the pandemic and beyond 783% of the decision makers say that audio equipment has become more important over the last two years Attribute this trend to increases in business conversations being held via phone or video Attribute this trend to increases in business to remote working 49% 51% Hybrid working has increased the importance of audio in business Insight 1 The majority of businesses recognise that audio communication is important to their business, and for most of our respondents its valuable role is growing. 83% of decision makers say that audio equipment has become much more important to their business over the last two years. And 56% think it has become much more important. Respondents attribute this trend to increases in business conversations being held via phone or video call (51%) and hybrid working (49%). As we progress in our response to the current health situation and a return to the office is permitted, Gartner research suggests that 41% of hybrid workers are likely to continue working from home. Research from Microsoft supports this: 82% of managers it surveyed stated that they expect to have more flexible work-from- home policies post-pandemic. More broadly, 71% of the employees and managers reported a desire to continue working from home at least part-time. With these facts, the number of people working remotely is likely to remain high into 2021 and beyond. Cultural shifts in ways of working also mean that a high level of virtual communication is to be expected in the future, even if people do return to the office, we can only expect this dependence on audio technology to increase. Yet, while it is tempting to see at home working prompted by the current pandemic response as a key factor, it is not the only one. Hybrid working was already a growing trend before the pandemic, and other shifts in workplace culture are also playing a part in accelerating virtual communications. Many business leaders recognize that live conversations even if they are virtual are still vitally important to building relationships: 42% said that audio communication was important to ensure quality and reliable communication lines with clients and partners. Among decision makers surveyed by EPOS, 45% cited time savings and 41% cost savings as two of the most important reasons for using video meetings or calls over face-to-face. 8 Quality audio prioritization for the pandemic and beyond Quality audio prioritization for the pandemic and beyond 9Younger users really care about what they use and have strong feelings about design and functionality ( . ) Getting the right audio equipment for the individual user and task is key to getting better results from your employees. Jeppe Dalberg-Larsen - President at EPOS consider audio contact to be very important to their business say it is essential 79% 41% The increased globalization of business (30%), and younger employees driving demand for new technology at work (28%) are also factors that our research respondents noted as driving the increase in audio technology use. Four out of five (79%) consider audio contact to be very important to their business. Two in five say it is essential (41%) “Younger users do have a greater awareness of communication endpoints. They really care about what they use and have strong feelings about design and functionality. It is a good idea to involve your employees by providing them with the right tools that fit their way of working, acknowledging that everyone has different needs and there will be a different solution them. For optimal performance, you might need bigger ear cups for noise cancelling, others will prefer light weight headsets. Getting the right audio equipment for the individual user and task is key to getting better results from your employees.”says Jeppe Dalberg- Larsen, President at EPOS 10 Quality audio prioritization for the pandemic and beyond Quality audio prioritization for the pandemic and beyond 11Audio quality is a priority, and businesses will pay more for it Insight 2 But with the trend towards increased phone and video conversations across all sectors, it is also suggested that in the years to come over three quarters of all roles will move towards spending more on quality tools to achieve higher levels of sound quality and performance. 57% of business leaders expect investments in audio equipment to increase over the next years and just 2% anticipate a decrease. Businesses in APAC (66%), the UK (65%), US (57%) and Germany (56%) are set to lead investment levels globally. The top sectors committed to an increased investment include telecoms/utilities (73%), hospitality (68%) and finance (68%). Over three quarters of decision makers will spend more to get a higher quality product (78%) Telecoms/utilities (73%), hospitality (68%) and finance (68%) are the top sectors committed to an increased investment in audio Our research suggests that business leaders recognize the significant role audio equipment will play in their future organization. Four out of five decision makers surveyed by EPOS (79%) consider audio contact to be very important to their business, while two in five say it is essential (41%). 83% think audio equipment has become more important to their organization over the last two years, and 56% say it has become much more important. Business decision makers cite quality of sound as the highest priority in their search for the most suitable audio solution, with 49% selecting it as the most important characteristic. Other factors taken into consideration include durability of hardware (36%), ease of use (35%) and user comfort (32%). These results together indicate the quality overall is important to business leaders. This desire for the full package aligns with the 79% of business leaders who recognise audio is very important to their business. They know that with phone and video conversations a significant part of their everyday business, they cannot afford for any part of those conversations to be lost - previous EPOS research showed that the average audio user loses 29 minutes per week to poor audio quality. They also want to help employees work at their full capacity, by giving them equipment which is effective, which is easy and comfortable to use and which lasts. 56% of business leaders and decision makers say that high quality audio equipment is essential to their business, and a further 34% think it is desirable. In fact, audio quality is becoming so important that businesses will pay extra for it. EPOS results showed this is especially true for those in the sales and marketing industries, where customer service central. Where customer conversations the beating heart of a business, it is easy to see why ensuring focused conversations that are uninterrupted by audio problems are an essential consideration. And with employees in these industries potentially spending most of their working day on calls, it is encouraging to see their comfort being prioritized. 12 Quality audio prioritization for the pandemic and beyond Quality audio prioritization for the pandemic and beyond 13Businesses are going through a turbulent time ( . ) they need to recognise that working with working UC is one of the investments you really need to make to stay in business. Jeppe Dalberg-Larsen - President at EPOS What are the most important considerations for you when buying new audio equipment for your organisation? Select up to three Compatibility with other workplace platforms Use-life Low cost Latest technology 49% 29% 36% 25% 35% 22% 32% 21% Quality of sound Durability / quality of hardware Easy to set up and use Comfort for the user “Businesses are going through a turbulent time, with many companies seeing a negative impact as a result of the current health landscape, but if they want to survive, they need to recognise that working with UC is one of the investments you really need to make to stay in business. On the other side of the pandemic, it is likely this will play out beneficially as part of the hybrid model going forward. We are seeing our customers prioritizing quality solutions where they might have been using more inexpensive models in the past. Now is the time for business leaders to ensure they have the right technology for the tailored experience that will help them deliver on their goals.” says Jeppe Dalberg-Larsen, President at EPOS Over three quarters of decision makers will spend more to get a higher quality product (78%) 14 Quality audio prioritization for the pandemic and beyond Quality audio prioritization for the pandemic and beyond 15Which is more important in the following scenarious at work, the quality of your laptop / PC, or the quality of your audio equipment? Conference calls 70% 64% 59% 48% 44% -30% -36% -41% -52% -56% Communicating with a client Communicating with employees Taking part in a webinar Giving a presentation Audio equiptment (ie. headphones, speakerphones) Laptops / PCs Quality audio communications is key to business performance Insight 3 The 0.5% of what you miss during a call becomes 100% of your concern. EPOS audio devices empower you to not only hear, but fully understand everything being said. Jeppe Dalberg-Larsen - President at EPOS When it comes to staying connected, audio quality is no longer a luxury. Effective cal