By Jerry Glynn, Chief Information Officer, American Direct and Chief Technology Officer, AccessNsite
Memoori Research, a consultancy company based in Stockholm that provides independent market research and business intelligence on smart building technologies, published their report The Physical Security Business 2017-2022 in early December. Several trade publications provided commentary on the report here and here.
As we digest the report’s findings and what it means for our industry and our company, a few key takeaways come to the forefront — most important being the tremendous opportunity available to companies willing to innovate and reimagine new ways of doing business.
Good News, a Conundrum, and Opportunity
• The good news: Industry growth over the next five years is to continue at a steady rate. For now, this will support at least some level of momentum for the current players and help attract new entrants.
• The conundrum: From a manufacturing and hardware standpoint, commoditization is underway and has the potential to accelerate as Chinese manufacturers make greater inroads to the U.S. market. Being in a "race to the bottom" on pricing (and margin) is not the best competitive strategy for most.
• The opportunity: There is great opportunity available for players large and small willing to put in the work to define, consolidate, and dominate the three business segments. Innovation is open to more than just a large few, it is available across the spectrum; though this will not be an easy task given the many players contending for market share and will take some to time to play out. Meanwhile, continuing technical innovation makes this even more difficult.
Creating Value Through Reimagined Innovation
When most people think of innovation, they think about technology, but of course, the latest and greatest technology isn’t worth a whole lot if you don’t know how to use it. Today, a door opening is much more than a slab, frame, and hardware; it’s an entire, ever-evolving ecosystem, and it’s increasingly complex. To work effectively and without fail, it requires the right mechanical and electronic components, as well as smart, seamless access control solutions, like AccessNsite.
Just as important, though, safe, secure openings are dependent on total integration in every facet. That’s why when we say that we provide “totally integrated safety and security solutions” we mean totally integrated safety and security solutions. Ultimately, our innovation is in being able to offer deep expertise in design and sourcing, consolidate distribution, streamline project management, simplify installation, and provide superior reliability through ongoing service and support. That’s why when we read a report like this, we aren’t concerned about fading into irrelevancy. Instead, we are reaffirmed that our relentless pursuit of innovation will not only bolster our business for the long haul, but ultimately serve our clients and end users in providing safer, more secure buildings for people to work, learn, and live.