Aberdeen Group Presents: Video Intelligence to Secure and Grow


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Aberdeen Group Presents: Video Intelligence to Secure and Grow

  1. 1. Video Intelligence: to Secure, and Grow Recent Research Highlights December 2011 $ Derek E. Brink, BS, MBA, CISSP Vice President and Research Fellow, IT Security and IT GRC [email_address]
  2. 2. Executive Summary <ul><li>Video analytics provide organizations not only with a layer of security that can help sift through terabytes of video in seconds, but also with an increasingly rich opportunity to contribute to both top line and bottom line growth </li></ul><ul><li>New video intelligence analytics such as dwell time , queue line analysis and customer not present are changing the way retail operations and merchandising teams leverage video in customer-centric strategies to improve sales and customer service </li></ul>
  3. 3. Definitions For the Purposes of Aberdeen’s Research … <ul><li>Video surveillance refers to the monitoring, analysis and response to video data as it is being captured and displayed </li></ul><ul><li>Physical Security Information Management (PSIM) refers to solutions designed to aggregate, normalize, correlate, monitor, analyze and report on information from traditional physical security devices and systems, and to provide a common view of the organization's current posture as an aid to proactive situation response and resolution </li></ul><ul><li>Video analytics refers to solutions designed to automate the monitoring and analysis of video data, to identify and track objects, to analyze motion, and most importantly to generate alerts on exceptions or abnormal events </li></ul><ul><ul><li>Rules-based refers to video analytics solutions in which algorithms for determining normal / abnormal or acceptable / non-acceptable behavior, along with pre-defined classes of objects, are programmed into the system and calibrated for the specific operating environment </li></ul></ul><ul><ul><li>Behavior-based refers to emerging video analytics solutions which process visual data without programming and calibration, learn and define normal versus abnormal behavior based on its observations, and self-adjust over time </li></ul></ul>
  4. 4. Business Context: Value Chain and Market Trends in Video Security Risk Management Physical Security Information Management Video Analytics Video Surveillance Video Cameras Digital Analog
  5. 5. Business Context: Value Chain and Market Trends in Video Security Risk Management Physical Security Information Management Video Analytics Video Surveillance Video Cameras Digital Analog IP-based Inertia against “rip-and-replace” Transitioning over (long) time Widely installed Leverage existing investments Cost Functionality Reliability In camera (IP-based) At camera (plug-and-play encoders) In back-end (transmit relevant data to centralized system) Remote Guarding Enterprise-wide view of risk Digital assets, physical assets, human assets Centralized Common view of logical and physical security posture Alerts  Situations Emerging standards Human  Automated Maximize resolution Minimize impact on network bandwidth, storage Rules-based  Behavior-based Aggregation Normalization Correlation Monitoring Alerting Analysis Reporting Security  Security + Growth
  6. 6. Business Context: Video Surveillance <ul><li>Historically, video surveillance has been primarily about forensic investigation, not real-time incident response </li></ul><ul><ul><li>Forensics = reactive; “what happened” </li></ul></ul><ul><ul><li>Incident response = proactive; alarms / alerts; real-time situational management and response </li></ul></ul><ul><li>The human factor </li></ul><ul><ul><li>Control rooms have fewer monitors than cameras </li></ul></ul><ul><ul><li>Not enough eyeballs to monitor and analyze the volume of video data that is being captured </li></ul></ul><ul><ul><li>Labor costs for 24/7 monitoring are high </li></ul></ul><ul><ul><li>Humans have other duties and distractions </li></ul></ul><ul><ul><li>Increasingly, fines for false alarms; lower priority of dispatch for unverified alarms </li></ul></ul><ul><li>So challenges with scalability , effectiveness and total cost </li></ul>
  7. 7. Business Context: Video Analytics <ul><li>Purpose </li></ul><ul><ul><li>Monitor and analyze an overwhelming volume of data </li></ul></ul><ul><ul><li>Filter, normalize, consolidate across multiple systems </li></ul></ul><ul><ul><li>Monitor continuously </li></ul></ul><ul><ul><li>Identify and track objects </li></ul></ul><ul><ul><ul><li>Analyze motion </li></ul></ul></ul><ul><ul><ul><li>Alert when something relevant happens – the needles in the haystack </li></ul></ul></ul><ul><ul><ul><li>Currently: algorithm / rules-based </li></ul></ul></ul><ul><ul><ul><li>Emerging: heuristic / learning / behavior-based </li></ul></ul></ul><ul><ul><li>Assist guards / operators in their decision-making process </li></ul></ul><ul><li>Challenges </li></ul><ul><ul><li>False positives </li></ul></ul><ul><ul><li>Anecdotally, sentiments that the capabilities of traditional video analytics solutions have been oversold </li></ul></ul><ul><ul><li>Recall Aesop's moral: even when liars tell the truth, they are never believed. </li></ul></ul><ul><li>Confusing terminology; a.k.a. </li></ul><ul><ul><li>Smart CCTV </li></ul></ul><ul><ul><li>Object Tracking </li></ul></ul><ul><ul><li>Intelligent Video </li></ul></ul><ul><ul><li>Video Content Analysis </li></ul></ul><ul><ul><li>Behavior Recognition </li></ul></ul><ul><li>Applications (illustrative) </li></ul><ul><ul><li>Unattended luggage </li></ul></ul><ul><ul><li>Illegal parking </li></ul></ul><ul><ul><li>Loitering </li></ul></ul><ul><ul><li>Object removal </li></ul></ul><ul><ul><li>Line crossing / virtual tripwire </li></ul></ul><ul><ul><li>Wrong direction / counterflow </li></ul></ul><ul><ul><li>License plate recognition </li></ul></ul><ul><ul><li>Facial recognition </li></ul></ul><ul><ul><li>Customer Counting </li></ul></ul><ul><ul><li>Dwell time </li></ul></ul><ul><ul><li>Queue line analysis </li></ul></ul><ul><ul><li>Customer not present </li></ul></ul>
  8. 8. Technology Adoption Trends: Video Analytics Current Use (by Maturity Class), Current / Planned / Evaluating (All Respondents) <ul><li>Architectural choices about the location of video analytics (in the back-end, in the camera, or in between) include considerations of resolution, storage, and network bandwidth; in the back-end is currently the most predominant, for the participants in Aberdeen’s study </li></ul>Leading performers are nearly 6-times more likely than lagging performers to implement Year-over-year increase in plans, evaluations
  9. 9. Drilldown – Aberdeen’s Research Findings Video Analytics Users Exhibit a Highly Effective Force Multiplier <ul><li>Based on Aberdeen’s analysis of 48 current video analytics users and 52 non-users </li></ul><ul><li>Video analytics users are able to support 4-times more cameras per FTE employee and 15-times more alerts per day requiring evaluation and action </li></ul>Effectiveness and Scale All Respondents Video Analytics Users Video Analytics Non-Users Video Analytics Delta Average points of observation 1,300 2,180 440 3.4-times more Full-Time Equivalent employees 98 108 89 1.2-times more Average points of observation / FTE employee 13 20 5 4-times more Alerts requiring evaluation and action (typical 30-day period) 260 518 35 15-times more Average alerts per day 8.7 17.3 1.2 15-times more
  10. 10. Drilldown – Aberdeen’s Research Findings Video Analytics Users Support Significantly Higher Scale at Significantly Lower Cost <ul><li>Video analytics users have invested twice as much in enabling technologies and modestly more in FTE staff; for a total annual investment of about 28% more than non-users </li></ul><ul><li>However on a per-camera basis they are spending 75% less on FTE and 59% less on enabling technologies, successfully supporting higher scale while spending 74% less overall </li></ul>Effectiveness and Scale All Respondents Video Analytics Users Video Analytics Non-Users Video Analytics Delta Annual cost (FTE) ($K) $3,520 $3,890 $3,200 22% more Annual cost (non-FTE) ($K) $430 $590 $290 2-times more Total annual cost ($K) $3,950 $4,480 $3,490 28% more Annual cost / point of observation (FTE) $2,710 $1,790 $7,290 75% less Annual cost / point of observation (non-FTE) $330 $270 $660 59% less Total annual cost / point of observation $3,040 $2,060 $7,950 74% less
  11. 11. Video Analytics: Summary of Key Benefits <ul><li>Better surveillance </li></ul><ul><ul><li>Higher probability of detection </li></ul></ul><ul><ul><li>Lower rate of false alarms </li></ul></ul><ul><ul><li>Automated video monitoring </li></ul></ul><ul><ul><ul><li>Filter out irrelevant information </li></ul></ul></ul><ul><li>Better intelligence </li></ul><ul><ul><li>Provide operators with data to make decisions </li></ul></ul><ul><ul><ul><li>&quot;Actionable&quot; data (Information Technology) </li></ul></ul></ul><ul><ul><ul><li>“ Situational knowledge” (public safety) </li></ul></ul></ul><ul><ul><ul><li>“ Total domain awareness” (homeland security) </li></ul></ul></ul><ul><ul><ul><li>“ Customer-centered insights” (retail & banking) </li></ul></ul></ul><ul><li>Reduced cost </li></ul><ul><ul><li>More cameras / FTE staff </li></ul></ul><ul><ul><li>Lower total cost / camera </li></ul></ul><ul><ul><li>Free up FTE resources to allocate to other initiatives </li></ul></ul>
  12. 12. Customer-Centric Retail Banking Fast Facts from Aberdeen’s Retail Banking Research <ul><li>Best-in-Class banks are at least two times more likely than all others to use real-time data to help increase efficiencies in customer-facing processes </li></ul><ul><ul><li>On average, 60% of the leading performers leverage real-time data to improve their execution of customer interaction, engagement, promotions, and product innovation at the point-of-service, in comparison to just 30% of laggards </li></ul></ul><ul><li>More than half (53%) of leading performers are expanding customer touch points and capabilities across all channels, compared to less than one in five (18%) of lagging performers </li></ul><ul><ul><li>Including more targeted financial and wealth management products </li></ul></ul><ul><li>Three of five (60%) leading performers are providing incentives to all job roles for attaining and exceeded customer service and satisfaction targets, compared to less than half (45%) of lagging performers </li></ul><ul><li>&quot;Rapidly evolving sales channel preferences and inadequate product knowledge of our branch employees are two of our biggest business pressures. The immaturity of branch IT assets and associated business processes is a major challenge for us. “ ~ IT Manager, Large Federal Credit Union, United States </li></ul>
  13. 13. Significant Room for Improvement Aberdeen’s “Retail Banking: Five Technology Imperatives for Customer-Centricity” <ul><li>Aberdeen’s research in retail banking indicates significant room for customer-centric improvement, not only in stand-alone and in-store branches, but also in non-traditional delivery channels (online, mobile banking, and call centers) </li></ul><ul><li>Top performers leverage processes and systems such as the following to increase mindshare and sustain relevance: </li></ul><ul><ul><li>Enhance consumer insights for branch and channel employees, to increase customer engagement </li></ul></ul><ul><ul><li>Focus on customer experience in the branch and channels, to increase customer retention </li></ul></ul><ul><ul><li>Create a balance between assisted and non-assisted customer service </li></ul></ul><ul><ul><li>Build cost efficiencies by upgrading and refurbishing branches and channel operations </li></ul></ul><ul><ul><li>Integrate branch, online and mobile banking to create a differentiated retail banking model across-channels </li></ul></ul><ul><li>&quot;The goal is about identifying customer behaviors and analyzing and measuring where they go to pre-purchase, what triggers the actual purchase, and the preferred end channel for transactions.“ ~ Marketing Director, Retail Banking, Europe </li></ul>
  14. 14. Customer-Centric Retailing: Before/During/After the Transaction From Aberdeen’s “The State of Customer-Centric Retailing” <ul><li>Determining prospective customer buying patterns, affinities, personalization, and delivery methods is a critical component to driving merchandising, marketing and pricing decisions and bottom-line success </li></ul><ul><li>Retailers must grab customer mindshare and appeal to the five senses of the customer before, during and after the sales process has been completed </li></ul><ul><li>Cost reduction and incremental revenue then become a much easier business puzzle to solve </li></ul><ul><li>&quot;Detailed knowledge of how our customers perceive our products, our services, our promotions, and the brands in all channels give us the most important facts to decide how to be more closely personal with them.“ ~Director of Marketing, Large Specialty Retailer, North America </li></ul>
  15. 15. Before, During and After the Transaction Representative Processes and Systems <ul><li>Before </li></ul><ul><ul><li>Processes and systems that enable the “pre-sale” customer experience include layout, product location, space planning, signage, digital signage, props and displays, shelf-placement, planograms, pricing, promotions, marketing, product information, product demos, product comparisons </li></ul></ul><ul><li>During </li></ul><ul><ul><li>Processes and systems that enable the ”during the sale&quot; customer experience include greeting, selling process, clienteling, cross-selling, up-selling, POS, self-service, assisted and non-assisted service, suggestive selling, order FAQ, order placement, order processing, scan and bag, order debit, credit, cash pay, cash back, gift card, order delivery, order pick-up </li></ul></ul><ul><li>After </li></ul><ul><ul><li>Processes and systems that enable the &quot;after sale” customer experience include POS, customer satisfaction survey, consumer research, customer feedback loop, returns, exchanges, and manual customer feedback loops </li></ul></ul><ul><li>&quot;Customer-centricity and customer experience management is embodied in our vision of creating a lasting experience. Customer satisfaction leads to trust of pricing and product, and hence further business growth.“ ~ CIO, Large Retailer, Asia / Pacific </li></ul>
  16. 16. Integration with Video / Video Analytics is Emerging From Aberdeen’s “Top 10 Technologies at NRF 2011” <ul><li>Data and Analytics: Deeper Customer / Shopper Insights </li></ul><ul><ul><li>Customer or shopper knowledge remained front and center in NRF retail discussions. Retail customer or shopper data is an enormous source of information that retailers have yet to fully leverage. Case studies of leading retailers such as Lowes, Wal-Mart, Target, Best Buy, and Chico’s FAS indicate that these companies are successfully using their data about customers and leveraging it for actionable intelligence every day in stores, web stores, call centers, warehouses, and with suppliers </li></ul></ul><ul><ul><li>Aberdeen’s research indicates that deeper customer analysis is both a major challenge and an imperative due to the enormity of data from different channels. Retailers are seeing repeat customers and the best margins by addressing deeper and more segmented customer analysis. More than half (51%) of leading retailers are leveraging customer analytics as well as predictive customer insights to drive retail success </li></ul></ul><ul><ul><li>Solution providers have shown a strong intent towards innovating for increased customer-centricity in 2011 … including partnerships designed to enable retailers to correlate data from security systems, including video, video analytics , access control and intrusion detection </li></ul></ul><ul><li>Retailers with Best-in-Class customer-centric processes and technologies deliver consistently higher customer conversion rates, response, frequency, gross margins, and retention rates </li></ul>
  17. 17. Demonstration Dwell Time <ul><li>Maximize the success of displays and promotions with intelligent monitoring of Dwell Time </li></ul><ul><li>Actionable Intelligence: </li></ul><ul><li>Improve Customer Experience </li></ul><ul><li>Analyze Promotion Display Effectiveness </li></ul>Queue Line Analysis Identify when a line gets a certain length or there are more than a pre-defined number of people present Actionable Intelligence – improve customer service by automatically monitoring line lengths and adjusting staffing needs to accommodate more customers Line Queuing Teller Line 2
  18. 18. Summary: Video Analytics Yield Demonstrable Business Value To Secure … and Grow <ul><li>Although certainly made possible by the ongoing evolution and innovation of enabling technologies, the real impetus for moving video security initiatives to a higher priority should be the demonstrable business benefits as identified in Aberdeen’s benchmark research: </li></ul><ul><ul><li>Better protection of the organization's physical assets and people, alongside the protection of its digital assets </li></ul></ul><ul><ul><li>Faster, proactive responses to alerts, incidents, and events related to physical security </li></ul></ul><ul><ul><li>Lower operational costs, effectively multiplying the existing guard force and increasing the resources available for other important initiatives </li></ul></ul><ul><ul><li>Sustained compliance with internal policies and external regulatory requirements </li></ul></ul><ul><ul><li>Improved collaboration between logical and physical security teams, towards an integrated, enterprise-wide view of risk </li></ul></ul><ul><ul><li>Emerging opportunities to improve productivity and growth in retail operations </li></ul></ul><ul><li>In addition to the tangible benefits of greater effectiveness and higher scale at lower total cost as identified in this study, the capabilities noted above are sustainable advantages for any organization looking to compete successfully in the global economy </li></ul>
  19. 19. Next Steps Aberdeen 3VR For more information on 3VR Products: Call: 877.387.6061 Visit: www.3vr.com Follow: @3vr For more information on Aberdeen: Call: 800-577-7891 Visit: www.aberdeen.com Follow: @Mobile Aberdeen
  20. 20. For More Information Commercial / Marketing Services Dennis Beggan [email_address] +1-617-854-5395 Scott Mitchem [email_address] +1-617-854-5366 Research Derek E. Brink, BS, MBA, CISSP Vice President and Research Fellow, IT Security [email_address]