Great expectations for years ahead

Jan 1, 1997 12:00 PM, By TINA D'AVERSA-WILLIAMS

Offering analysis and commentary on the security industry at large, our goal is to keep readers informed of the market growth and forward move-ment within the industry. The column is authored by Tina D'Aversa-Williams, publisher of Access Control and Security Systems Integration, whose background includes work in market research and analysis.

We want your feedback. Send comments to: Access Control and Security Systems Integration, Attn: Editorial Comments, 6151 Powers Ferry Road, Atlanta, GA 30339; or e-mail us at acssi@intertec5.com.

As the world becomes increasingly networked, the corporate security system of the next decade must be a total integrated solution. In the 1990s larger Fortune 1000-class corporations have begun seeking more standardized and complete security systems - total systems solutions. The security executive or facility manager wants to control building and data access and his facility's lighting and telecommunications operations, while monitoring fire and intrusion detection from the same software driver.

Traditional access control and fire detection equipment and system companies are rising to become total system providers. But as traditional security companies grow through mergers, strategic alliances and acquisitions, electric utility companies and cable and telephone service providers are also targeting the electronic security market - vying to be the one-stop-shop as the security supplier of the future.

To assess the future of the security market, we asked some of the most influential security company leaders to share their views for 1997 and beyond. Here are their thoughts: Mike Wolpert, president, Cardkey Systems: "Today the electronic security market is more dynamic than ever with the pace expected to increase over the next few years. With the consolidation of suppliers and the coming of age of integrated security management systems, the industry can look forward to more capable, more flexible, and more integrated systems."

David A. Schuldt, president, Casi-Rusco: "I remain confident that we will continue to see our unprecedented growth in the access control industry over the next three years, especially in the +large system' sector. During this same period, the evolution of the +integrated system' market will begin to unfold. However, the challenge of the industry remains the distribution of these newly combined technologies to the end user customer."

Jim Williams, president, Dedicated Micros USA: "Our industry is experiencing the fastest growth ever. With this growth, it is imperative that our industry experts - the integrators and the manufacturers - educate the end-users on the proper use of the products. The continued advancement of products and their features will require an effort for our industry to train our customers."

Don Nelson, president, HID Corp.: "Lead times for proximity cards will drop precipitously due to field programmability, new manufacturing processes and design innovations. Multi-technology cards in various combinations of proximity, Wiegand, smart chip, photo, barium ferrite, biometrics and bar code will be the rule rather than the exception. Increased awareness of Wiegand's inherent security, combined with new multi-technology capabilities and international exposure, will create dramatic growth."

Larry Midland, president, Hirsch Electronics: "In the new millennium, electronic access control will play a central role in the information delivery system of the business enterprise. Knowing who goes where, when, will become increasingly important to management. The challenge for manufacturers is to provide reliable, flexible systems today which can take advantage of future innovations and technologies as they become available."

Dean Gilliam, chief executive officer, Loronix Information Systems Inc.: "In the next decade, software will become the most significant element in overall security solutions. Digital software technology combined with hardware advances will propel the security industry to new levels of capability. This new capability will provide significant amounts of data to better analyze and control a particular environment. In addition, new skill sets will be needed to translate this information into more secure operating environments."

Joel Konicek, president, Northern Computers: "I see in the next four years focused attention on the integration of security and communications for access control, badging/photo imaging, physical security and asset tracking. Even today we can offer systems that will track not only the individual person, but also their valuable portable assets like laptops, documents, briefcases and even their vehicles with little or no user intervention. The future will require more flexibility in software to allow customization to individual end users' needs and the ability to provide good local control while providing worldwide monitoring for larger organizations."

Denis R. Brown, president and CEO, Pinkerton's Inc.: "Workplace violence again will top Fortune 1000 company security directors' concerns. Corporate America will rely on the security industry to reduce the enormous risk to employee safety and business productivity. Security technology such as access control, closed-circuit television and intrusion detection will be utilized in conjunction with uniformed security officers. Security consulting and planning, crisis management, employee awareness and communications programs will be in increasing demand."

Ron Kirby, vice president, industry relations, Simplex: "Advances in digital technology will continue to accelerate the integration of electronic security systems with other building systems to provide more cost-effective, more feature-intensive, easier-to-use solutions. While many groups of building owners historically have resisted the development of codes and standards relating to security (physical and electronic), there will, I believe, be an increased Acceptance of the need for such standards leading to their development."

Ron Spiller, executive director, Security Industry Association: "1997 will be the first year of a new era for the security industry. The recent, but significant, encroachment of utility suppliers into the alarm business is a clear indicator that the suppliers of services into American homes and offices are intent on bundling more and more services into their offerings, not only to increase their recurring revenues, but even more importantly, to make it more inconvenient for their customers to shop around for better prices on individual service needs. Happily for designers and manufacturers of security equipment and systems, bundled services will create a need for more system integration."

Terry Price, president, Sensormatic Electronics: "We expect 1997 will be a strong growth period for the electronic security industry. Frequency and public awareness of terrorism, crime and other security infractions is at an all time high. Against this backdrop, price performance and overall effectiveness of electronic security solutions will continue to meet marketplace requirements."

John Ellis, president, Silent Knight: "It is evident that economies of electronic security will fuel market growth and that seamless integration of all system attributes must occur in order to satisfy the user's need for information and remote facility control. Integration must also recognize the requirement for an intuitive graphical user interface that enables simple management of the security environment."

Stuart M. Evans, chief executive officer, Amtech Electronic Security Group: "Security will become more of a strategic business tool, with senior executives from other functional areas being involved in decisions about how best to protect their people, assets and data. They will be looking for reliable, sustainable companies delivering real value for the money, with full integration and proper support."

Susan Ellerin, Ph.D., president, STAT Resources: "Convergence is the obvious technological trend. Less obvious is the trend toward competitive differentiation through service(s) rather than products. Buyers - both residential and commercial - take excellence in product features, product design and product reliability as givens. As we close the decade, the companies who will lead the converged industries are those that have maximized the loyalty of their customers with stellar service, delivery and support. It is in this area that the industry faces the greatest threat from new entrants who have traditions of customer service."

Sandra Jones, Sandra Jones and Co.: "1997 will become a pivotal year for suppliers who cannot provide full service, or who do not have the mindset of adding value to their customers' business. Suppliers will either have to develop the capabilities internally, create them through an alliance, or be ready to give up market share."

The move to integration

The commercial security systems of the next decade will integrate premise control and facility management, including HVAC, lighting, fire detection and data and voice communications. Trends creating a climate for integration and centralized security systems are:

* demand for standardization and simplicity of system management; * consolidation of traditional security companies; * technology and software advancements; * compatibility of equipment and software; * the rise of the executive level security and life safety manager; * importance and sophistication of company management's view of security; * an ever-present concern over crime.

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