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A comparison between the implications that electronics had for cash registers and the ongoing shift to digital, IP-based video surveillance.

A comparison between the implications that electronics had for cash registers and the ongoing shift to digital, IP-based video surveillance.

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IP Video and Networks IP Video and Networks Presentation Transcript

  • A shift is currently taking place in the video surveillance industry…
  • … from analogue cameras…
  • … to digital cameras that are connected over the internet.
  • Even though only 15‐20 percent of the  p market is digital  today, this shift has  already created some turmoil…
  • … The game is changing and new companies are increasingly dominating the surveillance industry…
  • … and the established analogue players have so far not really managed to capitalize upon this new technology.
  • One reason for this would be that those One reason for this o ld be that those firms do not command electronics.
  • This was the main problem for the  manufacturers of mechanical calculators of mechanical which collapsed in the early 1970s.
  • Many Man companies in the camera ind str in the camera industry encountered similar problems.
  • But this comparison is not 100 percent accurate.
  • After all,  After all Cameras and  calculators function as as  individual units th t it that are  not  connected to  each other other…
  • … Whereas surveillance cameras are connected to each other…
  • … And monitored together from a central point. 
  • In that sense, the shift to IP‐based video has more in common with the shift f ith th hift from mechanical t l t i cash registers. h i l to electronic h it
  • Mechanical M h i l cash registers functioned as individual units, which added h i t f ti d i di id l it hi h dd d things up, produced a receipt and registered the total amount of  transactions each day.
  • With the shift to electronics, cash registers became interconnected. All  machines could be controlled via a central master unit… 
  • With the advent of personal computers later on, the value of having a  network of cash registers increased even further.
  • Hence, value was created for the  customer on a  more systemic level, where electronics  enabled an  easier and more intelligent  management.
  • This also implied that  the value the value proposition  in the  industry changed with the  ith th new  technology.
  • In that sense, the shift to electronic cash registers has a lot in common with the ongoing displacement of analogue surveillance.
  • Internet‐based video surveillance offers an easier monitoring and an increased scalability.
  • More cameras can be attached to an existing network and it is much easier to handle large systems.
  • Therefore, in order to survive, the analogue players do not  only have to renew their technical competence.
  • Video Surveillance will become a  warzone How to compete They also need to change the way that customers are approached, and  the value proposition they bring to the market.
  • Evidence f E id from the cash register industry th h it i d t suggests that this is not an easy thing to do.
  • Christian Sandström is a PhD  student at Chalmers  University of Technology in  Gothenburg, Sweden. He  g, writes and speaks about  disruptive innovation and  technological change. technological change www.christiansandstrom.org christian.sandstrom at chalmers.se