What are the pedagogical and institutional implications of implementing a Lecture Capture system?
I was involved in the installation of lecture capture systems in many of the classrooms on our campus with funding from a grant from the US Department of Education. Overall, this has been a very positive addition, and both students and faculty seem to be happy that we've introduced the technology. However, there were and are some concerns.
Student concerns. The lecture capture system records in-class discussion. Some students have been concerned about their privacy, but a policy that the lecture capture recordings will only be used for the current system and be made available only to students in the class takes care of most of this concern. A related privacy issue is that instructors should be careful not to have sensitive discussions with students (e.g. about grades, absences from class, etc.) while the system is turned on- this could easily lead to FERPA violations.
Faculty concerns. Some faculty were concerned that students would stop attending class if recordings were available. Our experience has been that having lecture capture recordings available to students has little or no effect on attendance. Faculty have also been concerned that the recordings would be used in ways that they didn't approve of (e.g. for administrative evaluation of teaching or to offer the course to other students without paying the faculty member to teach the course.) You should have clear policies in place to address these concerns.
A major faculty concern had to do with how they present written content in the lecture. For practical reasons, video recordings of material written on a blackboard (with chalk) or a whiteboard (with dry erase markers) simply don't work well with lecture capture systems. Some faculty simply use prepared slides for their lectures. An alternative (the one that I use) is to write the lecture material on a tablet or digitizing display. Some folks use a document camera and write notes on pieces of paper that are displayed by the document camera.
Distance ed concerns. Instructors and students can use lecture capture recordings as an informal way to have distance education courses without official permission. This might not be acceptable to your administration or your accrediting body (or the US DoED- such a course would count as a "correspondence course" because of the lack of two regularly scheduled two way interaction with the student) but there's no good technical way to prevent it from happening.
In my institution, lecture capture, though not with Panopto, has been going on for many years. We have policies in place to address such concerns. There are, as you note, also opportunities.
Issue 1: availability of the captured lectures to students
If students are enrolled in a traditional face-to-face (F2F) course, why do they need access to captured lectures? If your institution is (or plans to) offer distance education courses to off-campus students, make the captured lectures available only to them. Of course, if you have instructors who would like to try the flipped classroom model, where F2F students watch the lectures before class meets and then do the work (assignments, group projects, etc.) with the faculty member facilitating during class time, there would be exceptions.
Issue 2: Maintenance of recorded lectures
We have developed policies and purchased professional recording equipment to help ensure quality. In addition, faculty are not allowed to use captured lectures for longer than 3 years. Some subjects, such as computer science, for example, change so frequently that 3 years is much too long. Those might be re-recorded each semester. Alternatively, these faculty may tailor most of the lecture to more timeless topics, then record "update" videos to include the latest news and research in their subject area. This is possible in our institution because we provide recording studios for faculty use, so F2F students don't have to watch the "canned" version of the lecture. Since we use our recorded lectures for distance students (except for the occasional flipped class - I can think of only one of those currently offered, off the top of my head), they get both the "canned" or generic lecture plus the freshly recorded update videos. We provide "re-development" stipends to faculty to offset the additional time required to re-record every 3 years.
Issue 3: Quality
Because few of those who will be capturing their own lectures have education or experience in lighting, design, and the like, it is most helpful to provide them with training and/or "tip sheets" on the best recording situations. We've had more than one professor capture lecture using a webcam in a dark room with a bright sunlit window behind the instructor, resulting in very poor quality. They may also be too far from the on-camera mic and produce low-quality audio, which is also frustrating to students, and rightly so.
Another quality issue to consider is length of the video you provide to students (for whatever reason). Research on instructional video favors segments of 10 minutes or less. Sign up for a free Coursera course and you'll likely see this in use. If you're capturing live lecture in a classroom setting, breaking the lecture into 10 minute segments is jarring for the viewer unless the lecturer has prepared for it. He or she should locate stopping points at the end of a topic, sub-topic, or example, and employ a transition (pre-communicated to the video team) to switch topics. One research-backed way to do this is to stop and ask a handful of review questions to increase student mastery. Panopto, according to their website, allows the addition of interactive quizzes quizzes to facilitate this practice for online learners.
Issue 4: "Replacing" faculty Our institution does wish to use the video of a professor who is no longer at the institution. Our instructional videos are primarily used for online/distance instruction, which is delivered through a Learning Management System (LMS). The instructor is the primary developer of the online course, with support from staff and teaching/graduate assistants. Student evaluations have shown that students are confused and frustrated when "Professor Smith" is the instructor of record, but retired "Professor Martin's" lecture videos are utilized in such a course. Because we host our own video on our own servers, video is deleted when no longer needed. I presume you could do the same on Panopto.
One opportunity related to the implementation of this system is increasing offerings and enrollment in distance education courses (or, if your institution doesn't offer such courses yet, implementing such a program). This could be a most helpful source of additional revenue for the university and for non-traditional students who cannot attend F2F courses.
I'd recommend joining an organization like the Online Learning Consortium to have training and discussion opportunities about such topics with other administrators of online learning programs. This will help shorten the learning curve.