The performance
of Digital, IP-
based video
surveillance has
increased
significantly over
the last decade...

… And consequently, the use of such products has
grown a lot in this time.

Along virtually
every
performance
dimension
(except for unit
cost), IP
cameras have
now
outperformed
analogue CCTV.

The technology offers many benefits today:

The technology offers many benefits today:
Cheaper installation

The technology offers many benefits today:
Cheaper installation
Easier maintenance

The technology offers many benefits today:
Cheaper installation
Easier maintenance
Better image quality

The technology offers many benefits today:
Cheaper installation
Easier maintenance
Better image quality
Intelligent video

Yet still, it has up until now only captured 15-20
percent of the entire CCTV market.

Given all the
advantages
with the new
technology, it
is somewhat
surprising
that it has not
taken a bigger
share of the
market.

Why?

In 1962, Everett M. Rogers wrote a book called
’Diffusion of Innovations’ which dealt with
these kind of issues…

Rogers had performed an extensive amount of
research into how and why some innovations take
off and at what point it happens.

He identified five factors that influence the adoption
of an innovation. Let’s take a look at those factors,
maybe they’ll help us to understand why IP
surveillance hasn’t really taken off (yet).

Please note that all these factors concern how
potential users perceive the innovation.

1.
1. Trialability – to
what extent it is
possible to
experiment with it on
a limited basis or not.

IP surveillance performs quite well along this
dimension. One camera can be connected to
an existing network in order to try it out.
Moreover, analogue CCTV can be made digital
by using video encoders.

2. Observability
– the degree that
the effects of the
innovation are
visible or not.

The enhanced intelligence, and better image quality
should be quite visible to users. Hence, IP cameras
would get a high score along this dimension.

3. Relative
advantage – the
degree to which
an innovation is
perceived as
better than its
predecessor.

While IP cameras are often thought of as better and
the cost of owning an IP system is lower, the
individual camera is more expensive. IP
manufacturers have a communication problem here,
but an IP system would still be considered as
superior to analogue systems.

4. Compatibility
– to what extent
it is consistent
with current
values, past
experiences
and needs of
adopters.

This is maybe the weakest point for IP cameras. The
technology is obviously compatible with the needs
of adopters, but they are not compatible with the
current values and past experiences of most of the
security industry.

Security people have historically had little
knowledge about IT issues and network technology.
And analogue cameras have served their customers
well in the past, so why change?

3. Complextiy
– whether it is
thought of as
difficult to
understand
and use or not.

It is easier and cheaper to install a network camera,
and such a system offers an enhanced scalability.
But that’s not the way that most people in the
security industry perceive the technology.

Summing up:

Summing up:
1. Trialability +

Summing up:
1. Trialability +
2. Observability +

Summing up:
1. Trialability +
2. Observability +
3. Relative Advantage +

Summing up:
1. Trialability +
2. Observability +
3. Relative Advantage +
4. Compatibility -

Summing up:
1. Trialability +
2. Observability +
3. Relative Advantage +
4. Compatibility -
5. Complexity -

How then, can IP companies overcome the
abovementioned hurdles related to
compatibility and complexity?

Education

Education
Make Installation even simpler

Education
Make Installation even simpler
Reduce the amount of IT knowledge that is
needed to install and use the camera

Education
Make Installation even simpler
Reduce the amount of IT knowledge that is
needed to install and use the camera
Provide free online training sessions on
Youtube?

Education
Make Installation even simpler
Reduce the amount of IT knowledge that is
needed to install and use the camera
Provide free online training sessions on
Youtube?
Communicate the relative advantage (what can an
IP camera do that an analogue can’t)

Education
Make Installation even simpler
Reduce the amount of IT knowledge that is
needed to install and use the camera
Provide free online training sessions on
Youtube?
Communicate the relative advantage (what can an
IP camera do that an analogue can’t)
Launch incredibly cheap cameras that are good
enough (everyone understands the price
parameter)

IP video will not really take off and dominate the
market until the compatibility and complexity issues
have been taken care of.

Sources
Rogers, E.M. Diffusion of Innovations,
The Free Press, 1962

Image attributions

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.org
christian.sandstrom at chalmers.se