The Future of CCTV
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Transcript of The Future of CCTV
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The CCTV industry has remainedtechnologically stable over several decades.
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A stable technology often implies a stableindustrial structure…
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Entry barriers have remained high and consequently, CCTV has been dominated by
a few large players…
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However, things have started to change with the riseof digital, IP-based video surveillance.
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Companies with a background in IT or electronics are increasingly entering the industry…
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IP CCTV has grown
rapidlyover the
last years, but from
very small volumes.
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Up until now, the ongoing shift has not created a lotof industrial turbulence since the analogue players
have still been reasonably well off.
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But some more recent events suggest that the industry structure is about to change…
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One such event is GE’s announcement that theirsecurity business is for sale.
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A large, established
player is pullingout of video surveillance,
which is predicted to
grow a lot over the coming
years.
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The only reason for this must be that GE does not believe that
their securitybusiness will be
competitive in the future.
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At ASIS 2009, Pelco and Cisco stated that they havestarted a collaboration around IP cameras.
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Would Pelco have gone into this if they were able to provide a good IP offer themselves?
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Would Cisco have gone into this if they hadn’tbeen struggling to develop a competitive
line of IP cameras?
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I think this example illustrates that the competencebase of the industry is shifting. Firms with a
background in IT need to learn about surveillance, and CCTV firms like Pelco need skills in IT and
electronics.
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Some time ago, Pelco stated that they will seek to enter emerging markets such as China.
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In other technological shifts, established firms haveoften tried to sell their current products to new markets as a way to offset declining revenues.
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Kodak tried to do this during the 1990s.
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Facit was a Swedish manufacturer of mechanicalcalculators. With the rise of electronics in the 1960s, the company approached the Soviet Union with its
outdated technology…
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… In both cases, this strategy failed to compensatefor the declining revenues in the core business.
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It may still be a good decision to go for emergingmarkets, but one should bear in mind that this won’tenhance the long term competitiveness of the firm.
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And sucheffortscan be
regardedas an
indicationof things
to come…
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Maybe we’re witnessing the beginning of the end for analogue CCTV.
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Christian Sandström is a PhD student at Chalmers
University of Technology in Gothenburg, Sweden. He writes and speaks about disruptive innovation and
technological change.
www.christiansandstrom.orgchristian.sandstrom at chalmers.se