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© H+D Consulting Group / Biometrics LATAM REPORT - Page 1
BBIIOOMMEETTRRIICCSS
LLAATTAAMM RREEPPOORRTT
AA NN AA LL YY SS I...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 2
TABLE OF CONTENT .
I. Introduction………………………………………………….……...……………...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 3
I. INTRODUCTION
Terrorist attacks, plane hijackings and increasi...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 4
The US dominates as the single largest worldwide market for biom...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 5
II. LATAM SOCIAL & ECONOMIC OUTLOOK
Even if the economic outlook...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 6
An assessment of spillover risks showed that Latin America would...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 7
improve its competitive edge. However, the country still suffers...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 8
high-tech industries, as well as solid business sophistication a...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 9
8. Brazil benefits from several competitive strengths, including...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 10
III. ITC ADOPTION IN THE REGION
Latin America continues to suff...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 11
economic impacts and shift the national economy toward more kno...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 12
Panama and Costa Rica, in 57th and 58th position, respectively,...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 13
Brazil, positioned narrowly above the middle range of our ranki...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 14
Mexico government has made important efforts to increase the nu...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 15
Argentina, in 92nd position, benefits from a fairly well develo...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 16
Venezuela (107th), Paraguay (111th), Bolivia (127th), and, clos...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 17
IV. LATAM E-GORVERNMENTS OVERVIEW
In the current recessionary w...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 18
The following figures show us AMERICAS Region E-Governments Ran...
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increased in El Salvador, broadband and other access infrastruc...
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technology is not only capable of linking a person to past acti...
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Fingerprint: Fingerprints consist of a regular texture pattern ...
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larynx constitute the behavioral component of voice which can v...
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VII. BIOMETRICS MARKET FORECAST DATA
Biometrics market is forec...
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2. Global Criminal Biometrics Revenues @ 2016
3. Civil Biometri...
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4. Civil Biometrics Analysis of Percent of Revenues by Vertical...
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6. Civil Biometrics Market: Geographic Analysis (World), 2009 a...
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2012 Gartner’s latest Hype Cycle statement concludes that risin...
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8. Players
Major players in the marketplace include 3M Corporat...
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Government mandates and regulations will continue to boost the ...
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IX. BUSINESS OPPORTUNITIES ON THE RISE
1. Security- as- a-servi...
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Advice: While the availability of device-embedded biometric aut...
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Advice: The visibility of phone-based authentication methods in...
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4. Device-Embedded Biometric Authentication
Definition: Device-...
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X. ISSUES & CHALENGES
Despite the encouraging results and the s...
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biometric records. The collection of biometric information coul...
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XI. STRATEGIC RECOMMENDATIONS
The following recommendations, ba...
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 Innovation & future orientation
 Research & application orie...
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 Diversify the structure of domestic demand to diminish depend...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 39
enables the permanent adaption of objectives, resources and str...
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Information, and above all personal information, has become val...
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in areas involving biometrics, universal identifiers, and video...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 42
Resources:
 Workshop London, England, June 23, 2009, available...
© H+D Consulting Group / Biometrics LATAM REPORT - Page 43
 About.com Terrorism Issues. History of Biometrics URL:
http:/...
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Security & Biometrics LATAM Report

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SECURITY & BIOMETRICS LATAM MARKET ANALYSIS.
OUTLOOK, TRENDS, CHALLENGES, OPPORTUNITIES & STRATEGIC RECOMMENDATIONS

Terrorist attacks, plane hijackings and increasing crime rates have underlined the need for greater security measures around the world. Consequently, biometrics is growing in eminence as an essential security measure taken at airports and other critical access sites. Further, the limitations and inconveniences with alternative identification methods through photographs, passwords and PIN codes drive the development as well as growth of biometric technologies.

Biometrics usage should increase in public sector owing to criminal and civil security issues, and in commercial sector for cost savings and convenience factors. The process of technology convergence is slated to become critical and virtually inevitable in future for sustaining growth and profitability.

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Security & Biometrics LATAM Report

  1. 1. © H+D Consulting Group / Biometrics LATAM REPORT - Page 1 BBIIOOMMEETTRRIICCSS LLAATTAAMM RREEPPOORRTT AA NN AA LL YY SS II SS OOUUTTLLOOOOKK,, TTRREENNDDSS,, CCHHAALLLLEENNGGEESS,, OOPPPPOORRTTUUNNIITTIIEESS && SSTTRRAATTEEGGIICC RREECCOOMMMMEENNDDAATTIIOONNSS
  2. 2. © H+D Consulting Group / Biometrics LATAM REPORT - Page 2 TABLE OF CONTENT . I. Introduction………………………………………………….……...………………..…..3 II. LATAM Economic & Social Outlook 1. México……………….……………..…………………………………………...6 2. Panamá………….……………….………………………………………….....7 3. Venezuela………....….………….………………………………………….…7 4. Costa Rica……….….…………….……………………………………………7 5. Colombia…………....….…………..…………………………………………..8 6. Perú………………….….………….………………………………….………..8 7. Chile……………….…….………….…………………………………………..8 8. Brasil…………….……….………….……………………………………...…..9 9. Uruguay………….……………..………………………………………………9 10. Argentina…………….….………..….……………………………………….….9 III. ITC Adoption in the Region………………….………….……….…………………...10 I. LATAM E Governments Overview…….……….……………....…………………...17 II. Security through Biometric Technology………………....…………………...19 VI. The Popular Biometrics Modalities…….………….……….…………………...20 1. Face……………….………….…..…………………………………………..20 2. Fingerprint……………….…….………..…………..………………………..21 3. Iris……………….………………...…………………………………………..21 4. Palm Print…….…………………..…………………………………………..21 5. Hand Geometry…….…………....…………………………………………..21 6. Voice …….…………………….....…………………………………………..21 7. Signature…….…………………...…………………………………………..22 8. DNA…….………………………....…………………………………………..22 9. Hand Vein…….…………………..…………………………………………..22 VII. Biometrics Market Forecast Data………………..………....…………………...23 VIII. Biometrics Growth Areas………………..…………………....…………………...28 IX. Business Opportunities on the Rise …………....……………………...……...30 X. Issues & Challenges…………....……………………………………...……...……...34 XI. Strategic Recommendations………………..….……………….……………………36 1. Vision……………….…….………..…………..……………….…………..36 2. Mission……………….…….………..…………..………………..………..36 3. Objectives…………….…….………..…………..……………….………..36 4. Financial ……………….…….………..…………..……………...………..37 5. Strategic……………….…….………..…………..……………….………..37 6. Social & Environmental…………….…………..…………………..……..38 7. Strategy Proposal……………….…….…………….……………………..38 XII. Conclusion……………………………….……..…………..…..………………………39
  3. 3. © H+D Consulting Group / Biometrics LATAM REPORT - Page 3 I. INTRODUCTION Terrorist attacks, plane hijackings and increasing crime rates have underlined the need for greater security measures around the world. Consequently, biometrics is growing in eminence as an essential security measure taken at airports and other critical access sites. Further, the limitations and incontinences with alternative identification methods through photographs, passwords and PIN codes drive the development as well as growth of biometric technologies. Biometrics usage should increase in public sector owing to criminal and civil security issues, and in commercial sector for cost savings and convenience factors. The process of technology convergence is slated to become critical and virtually inevitable in future for sustaining growth and profitability. The technology is forecast to witness an accelerated pace of growth in the next decade, with main emphasis on development of solutions and infrastructure. This will help in enabling mainstream biometric authentication and customer- centric corporate expenditures. Fingerprint technology and signature verification would assume leadership positions supported by factors such as pricing, high degree of accuracy and convenience. Biometric applications in the public sector accounts for more than 50% share, and include integrated eBorders (passports, visas and border control), eIDs (National IDs and ID cards) and eGovernment (ID verification & electronic access). In 2008 and 2009, the biometrics industry witnessed low or negligible demand in noncritical IT applications, as there was drastic reduction of commercial investments in the wake of recession. However specific niche areas of development such as the time and attendance tool sustained the overall healthy pace in the market. In addition, barring few instances of withdrawals, postponements and delays of some large scale public sector projects, biometrics industry was for the most part stable and immune through the economic slowdown.
  4. 4. © H+D Consulting Group / Biometrics LATAM REPORT - Page 4 The US dominates as the single largest worldwide market for biometrics. Europe and Asia-Pacific follow the lead at the second and third positions respectively; Latin America should be the fourth most important market worldwide. The consolidated share of the US and European biometrics markets constitutes a sizeable chunk of over 60%. In terms of fastest pace, the Latin America and Asia-Pacific markets are projected to race ahead of the other world markets by the year 2015. The Non-AFIS/Finger Scan represents the largest technology driven segment worldwide. The other leading technology, Signature Verification is slated to grow at the overall fastest pace compounded annually through 2015. The Government/Civil is one of the key end-user category of the technology, playing a critical role in its wide acceptance and proliferation. Biometric technologies are implemented in government agencies such as state, local, federal and critical military and defense-related access sites. Other important biometric end-use segments gaining prominence include Access Control/Time & Attendance, Financial and Computer & Network Security. Major participants in the biometrics market are categorized into device suppliers, solution providers and algorithm providers. The intensely competitive biometrics market comprises a huge pool of diverse players driving majority of the technology trends. The biometrics market is characterized by select market leaders with a global presence, competing alongside smaller and niche players. Few key global players include 3M-AiT, Ltd, AuthenTec, Inc., BIO-key International, Inc., Biometric Security Limited, Cogent Systems Inc., Sagem Sécurité, Printrak International, Inc, Siemens Biometrics Center, Fujitsu Microelectronics America Inc. and NEC Corporation among others.
  5. 5. © H+D Consulting Group / Biometrics LATAM REPORT - Page 5 II. LATAM SOCIAL & ECONOMIC OUTLOOK Even if the economic outlook for Latin America shows a relatively positive picture for the coming year 2013 it is important to know that the General Regional Economic Forecast was trimmed from 4.2% to a 3.9%, by the FMI.
  6. 6. © H+D Consulting Group / Biometrics LATAM REPORT - Page 6 An assessment of spillover risks showed that Latin America would be one of the regions to be hardest-hit from a sharper-than-expected slowdown in China. The region could also suffer more than others if the United States fails to avoid the 'fiscal cliff', a tightening in fiscal policy in 2013. Looking to specifics, Brazil will lead the region domestic demand and growth was seen picking up to 4% in 2013. Mexico's outlook was trimmed slightly to 3.5% in 2013. Peru was expected to grow the fastest, at 5.8% in 2013. (Except Paraguay 11%). Chile and Colombia are both forecasted to grow 4.4% in 2013. Venezuela and Argentina are particularly at risk of upside pressure on inflation, although this remained above the mid-point of the target range in many countries. Latin American small and medium-sized enterprises (SMEs) can become catalysts for productivity growth. The heterogeneity of these SMEs has to be considered, since different firms have very different development needs and potential. While the region is vast and heterogeneous as a whole, four main key challenges that affect each country differently can be highlighted:  Weak institutions with high costs associated and lack of physical security  Poor development of infrastructure  Inefficient allocation of production and human resources; and, increasingly  Lack in innovation vis-à-vis more developed, but also emerging, economies Addressing these challenges in the next decade will be crucial to ensure the economic and social progress of the following countries that lead the region: 1. Mexico has one of the highest improvements in the region. The country’s efforts to boost competition and its regulatory improvements that facilitate entrepreneurial dynamism are contributing to an improvement of the business environment. This development, coupled with the country’s traditional competitive strengths such as its large internal market size, fairly good transport infrastructure, macroeconomic policies, and strong levels of technological adoption have led Mexico to
  7. 7. © H+D Consulting Group / Biometrics LATAM REPORT - Page 7 improve its competitive edge. However, the country still suffers from organized crime; security concerns. Adopting and implementing policies to boost ICT, energy, and retailing, along with additional reforms to render the labour market more efficient are still needed to increase the efficiency of the Mexican economy. The current overall poor quality of the educational system, insufficient company spending in R&D, and limited innovation capacity can jeopardize the future ability of the country to compete internationally in higher value-added sectors. 2. Panama, has remained relatively stable in most competitiveness drivers. Overall, it benefits from important strengths in its efficient financial market, solid transport infrastructures, and very good technological adoption, especially through FDI. Except these advantages, the country still faces important weaknesses in terms of education. Panama also struggles with rigidities in its labour market, low levels of public trust of politicians, insufficient judicial independence, and favouritism in the decisions of government officials a situation that has deteriorated in the past years. 3. Venezuela continues to fall because of quality of the country’s public institutions. This dismal showing, coupled with severe weaknesses in its markets efficiency and deterioration in the macroeconomic stability have led the country to feature at the bottom of the region and among the least competitive countries in the world. Despite being at the forefront in its tertiary education enrolment rate, the overall quality of the educational system is weak. This, added to a lack of sophisticated businesses and poor innovation potential, critically constrain the competitiveness performance of the country. 4. Costa Rica, is suffering of the macroeconomic imbalances seen in its high budget deficit and inflation and a scarcity of financial resources for the private sector. With fairly nice forecasts of around 4.5% GDP growth rates for the coming years, the country still depicts a strong overall position in the region thanks to its friendly trade policies, with low tariffs, few constraints on FDI, and its strong educational system. Costa Rica presents strong levels of technological adoption with many companies in
  8. 8. © H+D Consulting Group / Biometrics LATAM REPORT - Page 8 high-tech industries, as well as solid business sophistication and innovation. All these factors can generate significant benefits. 5. Colombia experiences an improvement based on its competitive strengths clustered around a stable macroeconomic environment; an improving educational system with a high level of enrolment and a large domestic market. On the other hand, despite the sustained efforts of the government to improve social pacification and eradicate organized crime, security concerns remain very high on the list of factors dragging down its competitive potential. In addition, improved regulation to foster domestic competition and facilitate a more efficient allocation of resources, as well as further investments to improve the transport infrastructure, are needed. 6. Peru improved its macroeconomic stability and strengthened its competitive edge thanks to a better control of inflation, a reduction of the government deficit, coupled with a friendlier environment for entrepreneurship. The country still faces a number of important challenges to solve as a weak public institutional environment, an educational system in need of higher quality, and the very low level of innovation. The impressive economic outlook for the next years, with GDP growth rates forecast of 6% in 2012 thanks to high mineral prices, provides a good opportunity to undertake the necessary investments and reforms to address its pending competitive limitations. 7. Chile: remains the most competitive economy in the region. Early measures to open and liberalize its markets by introducing high levels of domestic and foreign competition, a relatively flexible labour market, and one of the most sophisticated and efficient financial markets have also helped the country to maintain its long-term growth prospects in the past decades. As Chile moves quickly toward higher levels of rent and the next stage of development, companies with low investment in R&D and a weak capacity for innovation act in an innovation environment characterized by relatively low-quality scientific research institutions and weak university-industry collaboration in R&D. Making sufficient progress on this front is the major challenge that Chile will face in the next decade.
  9. 9. © H+D Consulting Group / Biometrics LATAM REPORT - Page 9 8. Brazil benefits from several competitive strengths, including one of the world’s largest internal markets and a sophisticated business environment. Moreover, the country has one of the most efficient financial markets and one of the highest rates of technological adoption and innovation in the region. On a less positive note, Brazil still suffers from weaknesses that hinder its capacity to fulfil its tremendous competitive potential. The lagging qualities of its overall infrastructure despite its Growth Acceleration Programme (PAC), its macroeconomic imbalances, the poor overall quality of its educational system, the rigidities in its labour market, and insufficient progress to boost competition are areas of increasing concern. 9. Uruguay leverages its traditional competitiveness strengths thanks to its transparent and well-functioning public institutions, its high rates of education enrolment and its stable policies that encourage FDI. However, despite this progress, inflationary pressures and the reduction of the national savings could bring significant macroeconomic distress if not properly tackled. Moreover, as Uruguay keeps growing and moves steadily toward a higher stage of development, policies to increase domestic competition that would incentivize higher business-sector investment in R&D and innovation capacity will become increasingly important. 10.Argentina is getting more and more unstable. The extraordinary competitive potential of the country that benefits from a large domestic market size and a population that has a high level of education remains unfulfilled because of both a lack of trust in its institutions and the large inefficiencies in its allocation of goods, as well as labour and financial resources. Excessive red tape that benefits the expansion of the informal economy and high barriers to trade bring a lack of confidence in the financial system. The progressive deterioration of the country’s macroeconomic stability and a two-digit inflation rate, casts additional worrisome uncertainties about the sustainability of its economic growth. Unless these weaknesses are addressed, this situation could lead the economy back into the erratic fluctuations of the past, characterized by high expansionary periods followed by deep recessions.
  10. 10. © H+D Consulting Group / Biometrics LATAM REPORT - Page 10 III. ITC ADOPTION IN THE REGION Latin America continues to suffer from an important lag in adopting ICT and technology more broadly. This is reflected in the rankings, as no country manages to reach the top 30 and only a handful of small economies manage to be included among the top 50 the exceptions are Chile and Uruguay. Although the region is vast and heterogeneous, three shared reasons for this lag can be identified: these countries all exhibit an insufficient investment in developing their ICT infrastructure, a weak skill base in the population because of poor educational systems that hinder society’s capacity to make an effective use of these technologies, and unfavorable business conditions that do not support the spur of entrepreneurship and innovation. Addressing these weaknesses will be crucial for improving the region’s competitiveness and shifting its economies toward more knowledge-based activities. Information and communication technologies have an important role to play, both in reducing education’s costs and in organizational innovation to optimize the allocation and distribution of human resources. Chile, in 38th position, clearly depicts the strongest performance in Latin America. Benefiting from an entrepreneurial-friendly and well-functioning legal framework, recent efforts to improve the overall innovation system, while still insufficient, have paved the way for this top position within the region. Notwithstanding these important merits, the country still suffers from a series of weaknesses that do not allow it to benefit from the potential benefits of ICT and technology more broadly. Although its ICT infrastructure achieves good scores in certain dimensions, notably mobile network coverage (1st), the technological preparedness of the country is severely hindered by the excessive costs of accessing ICT (89th) and above all the poor quality of an educational system that requires improvement and that fails to provide the necessary skill base (83rd) to fully optimize the use of ICT. Therefore, despite the government-led effort to leverage ICT (26th) with one of the widest offerings of online services in the world (18th), the penetration rates in individual households (55th) still lags behind. In addition, the business community needs to invest in upgrading its capacity for innovation (62nd) in order to facilitate the achievement of further
  11. 11. © H+D Consulting Group / Biometrics LATAM REPORT - Page 11 economic impacts and shift the national economy toward more knowledge intensive, higher-value-added activities. Uruguay, at 44th place, is one of the leading countries in the region that has recognized the importance of ICT. This process has been led by the government (36th), which has made important efforts to build a good ICT infrastructure in the country (49th) and grant wide access to ICT to school pupils (11th) with its one computer per student policy. Despite these efforts, the technological readiness (63rd) of the country still needs improvement, especially in terms of raising the quality of the educational system that presently hinders the ability to seize the full benefits of the opportunities that ICT, and technology more broadly, can offer. Moreover, weaknesses in the innovation system, especially at the corporate level (65th), hamper the capacity of the country to move toward more knowledge-intensive activities (67th). Addressing these weaknesses would represent the next step to fully leveraging ICT deployment for competitiveness and social well-being.
  12. 12. © H+D Consulting Group / Biometrics LATAM REPORT - Page 12 Panama and Costa Rica, in 57th and 58th position, respectively, clearly stand out from the rest of the countries in Central America a region that suffers overall from an important connectivity lag, a low skill base, and weaknesses in its business environment. Despite obtaining similar scores and levels of ICT usage (56th and 63rd, respectively), Panama and Costa Rica face different challenges to improving their level of preparedness to leverage ICT for competitiveness and well-being. In the case of Panama—while by regional standards the country benefits from a fairly good ICT infrastructure (55th), especially in terms of international Internet bandwidth (47th)—the very low skill base hinders its capacity to achieve higher ICT uptakes and stronger economic impacts (65th). Conversely, Costa Rica benefits from a strong skill base (26th) thanks to a well- performing educational system (23rd), but the country suffers from an ICT infrastructure lag (77th) that thwarts its ability to achieve higher ICT uptake rates. In both cases, improving their overall innovation systems would allow them to benefit further from the ICT efforts and contribute to shifting their economies toward more knowledge-intensive activities, especially in the case of Panama (84th).
  13. 13. © H+D Consulting Group / Biometrics LATAM REPORT - Page 13 Brazil, positioned narrowly above the middle range of our rankings at 65th place, benefits from strong levels of business ICT usage (33rd). These, combined with fairly advanced levels of technological capacity (31st) in particular segments of its industry, allows the country to achieve one of the strongest performances of ICT-enabled innovations in the region, both in terms of new products and services (29th) and more efficient processes (34th). Notwithstanding these strengths, its overall business environment with its burdensome procedures to create new businesses (138th) and its high tax rates (130th), in addition to its high mobile cellular tariffs (133rd) and poor skill availability (86th), hinder the potential of the Brazilian economy to fully benefit from ICT and shift toward more knowledge-based activities (76th) at a faster pace. Colombia, at 73rd place, right below the median of our sample, presents a mixed picture in terms of ICT development and uptake. On the one hand, the government offers a large number of public services online (9th) and the information it provides through its websites encourages citizens’ participation (26th). Moreover, Colombia benefits from a relatively skillful population (58th). On the other hand, the country still suffers from important challenges that hamper its capacity to leverage ICT to boost competitiveness and raise well- being. The lag in terms of ICT infrastructure and digital content (88th), coupled with unfavorable framework conditions for entrepreneurship and innovation (95th), result in a low ICT usage by businesses (71st). In addition, the uptake of ICT by individuals (76th) is still low, with less than 20 percent of the population accessing the Internet at home.
  14. 14. © H+D Consulting Group / Biometrics LATAM REPORT - Page 14 Mexico government has made important efforts to increase the number of services online (38th) and boost the e-participation of citizens through useful, high-quality, and relevant websites (32nd) that provide information, thus enhancing public governance. However, the country still faces significant weaknesses. An insufficient development of ICT infrastructure (81st), especially in terms of international Internet bandwidth (87th), coupled with the high costs of telecommunications (100th) and poor educational standards (107th) negatively influence the effective and productive use of ICT by individuals (77th) and businesses (75th). Moreover, despite the recent improvements that facilitate entrepreneurship by reducing the number of procedures and time to open a business (42nd), the functioning of some public institutions and the development of a strong innovation system are still pending challenges to creating a conducive environment for higher ICT impacts (79th). Addressing these weaknesses in a holistic manner will determine the success of the country in benefitting from the opportunities that ICT has to offer.
  15. 15. © H+D Consulting Group / Biometrics LATAM REPORT - Page 15 Argentina, in 92nd position, benefits from a fairly well developed ICT infrastructure (58th), especially in terms of international Internet bandwidth (41st) and high levels of adult literacy (51st) that could pave the way to a high and effective ICT uptake by all members of society. However, while individuals reach acceptable usage rates (58th), businesses (86th) seem to lag behind, and the perception of the business community is that the government is not prioritizing the use of ICT sufficiently (134th). In order to further leverage ICT usage, reducing the high costs of accessing ICT (103rd) would be beneficial. In addition, addressing the enduring shortcomings in the political and regulatory environment (122nd) as well as in the framework conditions to boost entrepreneurship and innovation (113rd) would allow the country to increasingly shift its economy toward more knowledge-intensive, higher-value-added activities. Peru, despite the economic growth, has experienced in the past year, at 106th place the country still lags significantly behind in terms of ICT. An insufficiently developed and expensive (141st) ICT infrastructure (86th) coupled with a low- quality educational system (128th) hinders the preparedness of Peru to make an effective use of ICT. As a result, the use of ICT by all three actors individual, business, and government is still low (81st), and despite relatively good framework conditions for entrepreneurship (56th), the potential economic impacts are not yet accruing.
  16. 16. © H+D Consulting Group / Biometrics LATAM REPORT - Page 16 Venezuela (107th), Paraguay (111th), Bolivia (127th), and, closing the rankings Nicaragua (131st), trail behind the rest of countries in the region. These countries continue to suffer from some worrisome connectivity weaknesses, both in terms of physical and human infrastructure, which coupled with an innovation-adverse environment result in poor leverage of ICT for boosting competitiveness and raising well-being.
  17. 17. © H+D Consulting Group / Biometrics LATAM REPORT - Page 17 IV. LATAM E-GORVERNMENTS OVERVIEW In the current recessionary world climate, in which the lives of people have become ever more interconnected, governments have been harnessing the power of information and communications technologies (ICT) for delivering much needed sustainability in social, security and economic services to their citizens. As part of this shift towards e-government, there has been an increasing recognition that efforts towards an approach to governance for sustainable development require strategic national planning to ensure efficacy, transparency, responsiveness, participation and inclusion in the delivery of public services. These aims could not be achieved without the underlying notion of sustainable development for the people. E-government has an important role to play, now and in the future. As the world moves towards 2015, the date set for reaching the Millennium Development Goals, the unmet targets of poverty reduction and other social and economic development goals are being revisited. As part of their effort to advance citizen services, developed countries are paying greater attention to the concepts of an integrated government portal and the re-engineering of back-office processes in designing their e-government capabilities. E-government strategies are geared towards user centric solutions, which serve to synergize governance processes and systems across multiple public administration domains.
  18. 18. © H+D Consulting Group / Biometrics LATAM REPORT - Page 18 The following figures show us AMERICAS Region E-Governments Ranking: Regional E-Governement: Top Ranked Countries Americas: Central America Ranking: South America Ranking: As it appears, all countries of the Central America region increased their offerings in 2012. Mexico (0.6240) was the leader with e-government offerings around 27 per cent higher than other countries of the region. Closely following Mexico as number two in the region, Panama (0.5733) improved its world ranking from 79 in 2010 to 66 in 2012. It is followed by El Salvador (0.5513) and Costa Rica (0.5397). On the other hand, even as mobile telephony
  19. 19. © H+D Consulting Group / Biometrics LATAM REPORT - Page 19 increased in El Salvador, broadband and other access infrastructure remained low, impeding its online service delivery uptake. Other countries of the sub- region that improved e-services are also demonstrating that the expansion of mobile infrastructure has allowed them to complement, and indeed supplement, traditional access to narrow the digital divide. V. SECURITY THROUGH BIOMETRIC TECHNOLOGY Considering the development of security policies, we can observe a shift towards an increasing concern with identity and an accompanying focus on the need for new identification technologies to ease and speed up the task of identification on the assumption that this will offer greater security. This is arguably a trend that the introduction of ideas such as ‘governmental identity management’. In other words, security and defense are no longer just a question of observing whether a neighboring state is increasing its weaponry or carrying out research into novel defense technology that is perceived as a threat. Today, an additional security concern is the problem of accurately identifying which individuals are regarded as embodying the potential to become a future threat – one that security policies need to target and act upon before this potential materializes as reality. Indeed, it has been noted that confronted with these new threat perceptions: “defense and intelligence communities require automated methods capable of rapidly determining an individual’s true identity as well as any previously used identities and past activities. In this particular context, identification has thus come to be regarded as a prerequisite for countering contemporary threats before they materialize as reality, a prerequisite for security from individuals who are defined as portraying a potential to become ‘threats’. Similarly, it has been noted that: “as the scope of threats are widening with globalization, the targets are becoming individuals”. It is within this context that biometric technology has gained prominence, given its claim to produce a specific type of knowledge needed for such types of identification: biometric
  20. 20. © H+D Consulting Group / Biometrics LATAM REPORT - Page 20 technology is not only capable of linking a person to past activities and/or monitoring a person’s present activity. More than that, the collection and storage of biometric data allows for ‘data mining’, i.e. a process that extracts predictions about a person’s future ‘becoming’ from his or her biometric data and, in that way, promises to deliver superior knowledge about who might and might not come to be of particular danger. VI. THE POPULAR BIOMETRICS MODALITIES As our society becomes electronically connected to form one big global community, it has become necessary to carry out reliable person recognition often remotely and through automatic means. Surrogate representations of identity such as passwords (prevalent in electronic access control) and cards (prevalent in banking and government applications) no longer suffice. Biometrics, which refers to automatic recognition of people based on their distinctive anatomical (e.g., face, fingerprint, iris, retina, hand geometry) characteristics, is becoming an essential component of effective person identification solutions because biometric identifiers cannot be shared or misplaced, and they represent the individual's bodily identity. Biometrics will be an enabling technology with the potential to make our society safer, reduce fraud and lead to user convenience by using the following modalities: Face: Face recognition systems typically utilize the spatial relationship among the locations of facial features such as eyes, nose, lips, chin, and the global appearance of a face. The problems associated with illumination, gesture, facial makeup, occlusion, and pose variations adversely affect the face recognition performance. While face recognition is non-intrusive, has high user acceptance, and provides acceptable levels of recognition performance in controlled environments, robust face recognition in non-ideal situations continues to pose challenges.
  21. 21. © H+D Consulting Group / Biometrics LATAM REPORT - Page 21 Fingerprint: Fingerprints consist of a regular texture pattern composed of ridges and valleys. These ridges are characterized by several landmark points, known as minutiae, which are mostly in the form of ridge endings and ridge bifurcations. The spatial distribution of these minutiae points is claimed to be unique to each finger; it is the collection of minutiae points in a fingerprint that is primarily employed for matching two fingerprints. Emergence of low cost and compact fingerprint readers has made fingerprint modality a preferred choice in many civil and commercial applications. Iris: Iris images acquired under infrared illumination consist of complex texture pattern with numerous individual attributes. Iris recognition has been integrated in several large-scale personal identification systems. However, relatively high sensor cost, along with relatively large failure to enroll (FTE) rate reported in some studies, and lack of legacy iris databases may limit its usage in some large-scale government applications. Palm print: Similar to fingerprints, latent palm print systems utilize minutiae and creases for matching. While law enforcement and forensics agencies have always collected fingerprints, it is only in recent years that large palm print databases are becoming available. Palm print recognition systems have not yet been deployed for civilian applications, mainly due to their large physical size and the fact that fingerprint identification based on compact and embedded sensors works quite well for such applications. Hand Geometry: Person identification using hand geometry to extract a number of geometrical features such as finger length, width, thickness, perimeter, and finger area. The discriminatory power of these features is quite limited, and therefore hand geometry systems are employed only for verification applications in low security access control and time-and-attendance applications. The hand geometry systems have large physical size, so they cannot be easily embedded in existing security systems. Voice: The generation of human voice involves a combination of behavioral and physiological features. The movement of lips, jaws, tongue, velum, and
  22. 22. © H+D Consulting Group / Biometrics LATAM REPORT - Page 22 larynx constitute the behavioral component of voice which can vary over time due to person’s age and medical condition. The spectral content of the voice is analyzed to extract its intensity, duration, quality, and pitch information, which is used to build a model for speaker recognition. Speaker recognition is highly suitable for applications like tele-banking but it is quite sensitive to background noise and playback spoofing. Again, voice biometric is primarily used in verification mode. Signature: Signature is a behavioral biometric modality that is used in daily business transactions. However, attempts to develop highly accurate signature recognition systems have not been successful. Dynamic signatures help in acquiring the shape, speed, acceleration, pen pressure, order and speed of strokes, during the actual act of signing. This additional information seems to improve the verification performance (over static signatures) as well as circumvent signature forgeries. Still, very few automatic signature verification systems have been deployed. DNA: Human DNA samples can be acquired from a wide variety of sources; from hair, finger nails, saliva and blood samples. Currently, not all the steps in DNA matching are automated and therefore results can be skewed if the process is not conducted properly or the DNA samples themselves get contaminated. In summary, the DNA matching process is expensive, time consuming and therefore not yet suitable for large scale biometrics applications for civilian usage. Hand Veins: The vein patterns are generally stable for adults (age of 20-50 years) but begin to shrink later due to decline in strength of bones and muscles. Biometric authentication devices using finger and palm vein imaging are now available for some commercial applications; there is no known large scale vascular biometric system. This could be primarily due to concerns about the system cost and lack of large scale studies on vein individuality and stability.
  23. 23. © H+D Consulting Group / Biometrics LATAM REPORT - Page 23 VII. BIOMETRICS MARKET FORECAST DATA Biometrics market is forecast to reach US$14 billion by 2015. The market is mainly driven by an increasing need for security against terrorist activity, sophisticated crimes and financial frauds. Legislative compulsions in major markets worldwide including North America, Europe and The Middle East are also expected to play an important role in furthering the cause of Biometrics. Market growth in the rapidly developing economies including Latin America and Asia Pacific would result from government expenditures and customer focused corporate investments. Emerging Countries will be the most relevant markets to develop in the next 5 years. Applications with the potential of short-term, quantifiable returns on investment such as biometrics enabled time and attendance tools will also experience increased demand in the upcoming years. Government mandates and regulations have and will continue to boost market prospects for biometrics. Security compulsions of government and law enforcement services will continue to encourage governments to enhance their spending on biometric technologies. Incremental technology development induced rise in product sophistication and fall in prices will also help expand demand further. With businesses prioritizing safety and security of physical assets, its opportunities galore in the biometrics market in the upcoming years. 1. Global Civil Biometrics Revenues @ 2016
  24. 24. © H+D Consulting Group / Biometrics LATAM REPORT - Page 24 2. Global Criminal Biometrics Revenues @ 2016 3. Civil Biometrics Technology Mapping @ 2016 As we can see Fingerprint plays a dominant role within the biometrics market and still holds tremendous potential followed by high potential emerging modalities such as face and iris recognition. Multimodal biometrics offering high levels of accuracy while maintaining a relatively non-invasive approach is expected to offer tremendous potential throughout the forecast period. However price and usability still hinder widespread uptake particularly for emerging region as Latin America
  25. 25. © H+D Consulting Group / Biometrics LATAM REPORT - Page 25 4. Civil Biometrics Analysis of Percent of Revenues by Verticals (World), 2009 and 2016 5. Civil Biometrics Analysis of Percent of Revenues by Applications (World), 2009 and 2016 Government sector will remain the largest contributor, Healthcare sector share of the market will almost double (because of adoption of biometrics within access control, healthcare cards and for transactional authentication). At last Automotive, retail, corporate and education are expected to increase investments in the medium to long term to perform stronger authentications. During this period of time, we can expect a continued success within government installations critical in building awareness and uptake within regulated industries (healthcare, finance, transportation) and eventually towards mass adoption in other commercial sectors.
  26. 26. © H+D Consulting Group / Biometrics LATAM REPORT - Page 26 6. Civil Biometrics Market: Geographic Analysis (World), 2009 and 2016 As stated, the US continues to remain the largest regional market for biometrics. Asia-Pacific represents one of the fastest growing regional markets for biometrics, with dollar sales from the region waxing at a CAGR of about 23.8% over the analysis period. Characterized by burgeoning economies, increase in foreign investments, rise in business formation activities, presence of large relatively untapped private security markets and increase in crime rates, Latin America have been witnessing increased adoption of security systems, particularly latest biometric technologies like iris scans, facial recognition. Iris/Retinal Scan market is the fastest growing segment, by technology, with dollar sales waxing at a CAGR of about 25.9% over the next four years. The technologies on the Hype Cycle that make this possible include human augmentation, volumetric and holographic displays, automatic content recognition, natural-language question answering, speech-to-speech translation, big data, gamification, augmented reality, cloud computing, NFC, gesture control, virtual worlds, biometric authentication methods and speech recognition. Many of these technologies have been "emerging" for multiple years and are starting to become commonplace, however, a few stand out as tipping point technologies including natural-language question answering and NFC.
  27. 27. © H+D Consulting Group / Biometrics LATAM REPORT - Page 27 2012 Gartner’s latest Hype Cycle statement concludes that rising up the slope of enlightenment are consumerization of IT and biometric authentication. The issue is that both are still two to five years away from the Plateau of Enlightenment. 7. Priority Matrix for New Technologies
  28. 28. © H+D Consulting Group / Biometrics LATAM REPORT - Page 28 8. Players Major players in the marketplace include 3M Corporation, AcSys Biometrics Corp., AuthenTec, Inc., BIO-key International, Inc., SecureTouch Retail Systems, Biometric Security Limited, Communication Intelligence Corporation, Ivrnet, DigitalPersona, Inc., Fujitsu Limited, i2 Inc., Imprivata, RCG Holdings Limited, SAFRAN Group, Morpho, SecuGen Corporation, NEC Corporation of America, Precise Biometrics AB, Sensory Inc., Atos Origin S.A., TSSI Systems Ltd., ZK Software, among others. VIII. BIOMETRICS GROUTH AREAS The biometrics market is projected to experience strong growth in the coming years, a fact that is expected to attract buyers and investors to the space. In a study recently published by ReportLinker, the biometrics industry is projected to grow at a 21% CAGR during the 2012‐2014 period. Other studies show similar growth rates extending through 2017. Some of this growth will undoubtedly result from large government contracts going to sizable public companies. With such strong growth anticipated, both corporate buyers and private equity groups are looking for opportunities to enter, or expand in, the market. As stated, industry growth is being driven by increasing public security requirements and the need for superior security systems around the world, including those concerning Internet & network access and in financial transactions. The biometrics industry has made great progress in the markets of national and homeland security, the military and law enforcement; approximately 59% of industry revenues are generated by the public sector. But the commercial market has been gaining share in recent years and industry experts believe that targeted commercial opportunities will drive rapid market expansion and represent exciting growth potential for the industry. Declining prices, increased standardization, improved developer toolkits and the increased involvement of established IT and electronics companies will all lead to further penetration of the commercial market.
  29. 29. © H+D Consulting Group / Biometrics LATAM REPORT - Page 29 Government mandates and regulations will continue to boost the civil market, while consumer‐based applications will be wide‐reaching, from securing personal computers, mobile devices, and physical locations to improving social media experiences, e‐commerce and time and attendance tools. Growth areas include: Mobile Security: Mobile biometrics is slated to grow dramatically as mobile payment systems will require greater security than devices currently offer. Mobile payment technology is on the rise and biometrics will likely follow. Biometric Passports: While biometric passports have been around for a number of years, their prevalence is increasing. eGate implementation is expected to be a main revenue generator for civil and military biometrics markets globally in the coming years. Banking and Financial Services: Biometrics is increasingly being used to improve security in financial transactions, especially abroad. While the established US financial sector may be more reluctant to adopt this approach to security, overseas growth is likely to be strong. In terms of biometric technologies, fingerprint technology continues to dominate the industry, but iris and face recognition are gaining ground. There are plenty of emerging technologies as well, including DNA, fingernail patterns, gait recognition, vein patterns and skin biometrics. In the coming years, technological advancements should continue to revolutionize the ease of use, accuracy, performance and cost of biometrics, expanding their use in both commercial and government applications.
  30. 30. © H+D Consulting Group / Biometrics LATAM REPORT - Page 30 IX. BUSINESS OPPORTUNITIES ON THE RISE 1. Security- as- a-service & managed Services: Definition: Security-as-a-service (SaaS) is a fast emerging outsourcing model for security management and the technology is expected to play a significant role in the development of safer cities in the coming years. It may refer to security management provided in-house by an external organization. Numerous security vendors are planning to leverage cloud based models to deliver security solutions. Advice: With growing interest from various security solutions providers, the market expects this technology to fast catch up and witness significant growth in the coming years. Business Impact: Following are some of the major drivers of the global SaaS market:  Replacement of human resources  Convergence of physical security  Switch from CAPEX to OPEX  Complexity reduction  Following are some of the major restraints of the SaaS market:  Privacy & data concern  Reduced control of security systems 2. Biometric Authentication Definition: Biometric authentication methods use biometric characteristics or traits to verify users' claimed identities when accessing devices, networks, networked applications or Web applications. Across a wide range of use cases, any biometric authentication method may be used in one of two modes: one-to-one comparison or one-to-many search mode.
  31. 31. © H+D Consulting Group / Biometrics LATAM REPORT - Page 31 Advice: While the availability of device-embedded biometric authentication in mobile phones remains low and inconsistent, server- or cloud-based biometric authentication products can exploit phones' (as well as PCs') microphones, user-facing cameras and keyboards (including touchscreen keyboards) as capture devices for voice, face topography (and possibly iris structure) and typing rhythm. Some vendors offer solutions that exploit phones as capture devices to authenticate access from users' PCs and without tying users to particular PCs. Mobile phones will overtake PCs as the most common Web access device worldwide by 2013. A significantly increased interest should be expected in biometric authentication for workforce and external users accessing higher-value Web applications via mobile phones during the next two years, as well as increased success in the year or two following. Benefit Rating: Moderate Market Penetration: 5% to 20% of target audience Maturity: Early mainstream 3. Phone-Based Authentication Definition: Phone-based authentication methods are those that make use of a mobile phone as an authentication token. There are two popular options:  A one-time password (OTP) software token for a mobile phone, which allows the phone to be used like a traditional OTP hardware token with a display and PIN pad  An out-of-band (OOB) authentication method, in which a user and an authentication server exchange authentication information over a different channel from the one between the endpoint and the server In both cases, the same mechanism can be used to provide transaction verification. While this is an important component of online customer security, especially in financial services, transaction verification is out of scope for this profile.
  32. 32. © H+D Consulting Group / Biometrics LATAM REPORT - Page 32 Advice: The visibility of phone-based authentication methods increased over the past 2 years, most notably when Google announced that it was offering both OTP software tokens for phones and SMS-based OOB authentication for access to Google Apps, and when Facebook (in 2011) announced it was enabling SMS-based OOB authentication for user access. OTP software tokens for mobile phones are less popular, but enterprises tend to prefer them for users with time-critical remote access needs, because OOB authentication methods can be vulnerable to cellular-network coverage, availability and latency problems. OTP software tokens also provide higher assurance than OOB authentication methods, and so suit higher-value access. However, phone-based authentication methods alone may still be suitable for medium-risk use cases. It is now evident that there is a significant volume of use cases where this is appropriate, that the incidence of these use cases is rapidly increasing, and thus that there will be productive use of phone-based authentication methods and adoption by 20% to 50% of the market within the next few years but these methods will take more than 10 years to reach the plateau. Mechanisms that generate a digital signature on the phone to provide transaction verification are emerging. Business Impact: Phone-based authentication methods provide authentication in a form that is independent of any particular PC or OS, at a lower cost than traditional OTP tokens, and with greater convenience for the user. Furthermore, these methods help with "green" IT initiatives, because they avoid the need for further devices that will have an environmental impact. Some phone-based authentication methods can provide additional value through transaction verification via the same mechanism. Benefit Rating: Moderate Market Penetration: 5% to 20% of target audience Maturity: Early mainstream
  33. 33. © H+D Consulting Group / Biometrics LATAM REPORT - Page 33 4. Device-Embedded Biometric Authentication Definition: Device-embedded biometric authentication is a specialized use of biometric authentication methods to improve the endpoint security of mobile devices, such as PCs and phones, using capture devices ("sensors") and feature extraction and comparison software built into the device itself. Because such a mobile device is essentially personal to one user, the mode is typically a one-to one comparison of a probe biometric sample against the user's biometric reference stored on the device. Advice: There is good reason to believe that enterprise interest will increase as mobile phones become ever more capable and endpoint security for phones grows in importance. Even with continued improvement in fingerprint-sensor technologies, we should expect "passive" biometric authentication (for example, using face topography) to provide more consistency and universality. Thus, it will become more prevalent during the next five years, particularly on phones, where front-facing cameras are increasingly common. A more robust strategy for access to the network and downstream or Web applications is to leverage the endpoint (PC or smartphone) as just a capture device for back-end biometric authentication. Business Impact: For mobile devices, such as PCs and phones, device- embedded biometric authentication provides endpoint authentication without the need for passwords or additional tokens. Thus, it has the potential to provide significant improvements in user convenience and reduced operational costs. However, usability issues and a lack of consistency of technology across different endpoints and vendors will continue to limit the potential value, and the approach is unsuited for access to the network and downstream or Web applications. Benefit Rating: Low Market Penetration: 1% to 5% of target audience Maturity: Adolescent
  34. 34. © H+D Consulting Group / Biometrics LATAM REPORT - Page 34 X. ISSUES & CHALENGES Despite the encouraging results and the success of biometric technology in controlled laboratory environments, there are still a few concerns and challenges when collecting and using biometrics in actual environments with plans to a major scaling up to establish an identification system at a national level. 1. Not everyone can be enrolled in a fingerprint-based identification system. Fingerprints can be unrecognizable due to cuts or burns or extreme weight gain or loss. In addition, older individuals may have poor fingerprints, or the operation of fingerprint readers may be jeopardized due to arthritis. In other cases skin pigmentation obfuscates the possibility of getting readable prints. In the most comprehensive study to test the process and customer attitude during the recording of biometric information, the UK Passport Service Trial reports an enrolment success rate of 100 per cent for the 9,250 non-disabled participants and 96 per cent for the 750 disabled participants. 2. The accuracy of biometric technology remains untested. Biometric companies report very high accuracy rates from highly controlled trials which typically use artificially generated data. However, because the performance of a technology depends greatly on the context, trials using real life data are far less impressive. Different Trials reports that only 80 per cent of the cases could be correctly verified, younger individuals being more successful than older. According to a recent review of available systems, only a handful of products achieved an equal error rate of under 3%, and the performance of most was much worse. The cautionary tale is that as the collection of biometric information increases, and as it moves from law enforcement to civilian applications, the error rate may significantly increase 3. Individuals negative attitude towards providing their biometrics. there is the widespread public perception that fingerprinting is linked to the criminal justice process, individuals may refuse to provide biometrics for fear of persecution by authorities or others that gain illegal access to such
  35. 35. © H+D Consulting Group / Biometrics LATAM REPORT - Page 35 biometric records. The collection of biometric information could be considered an infringement of civil liberties. 4. The cost of collecting biometrics can be high. The estimates are sparse and detailed cost-benefits analyses have not been systematically conducted. However, the costs of using different types of biometric technology starting from basic fingerprinting techniques to voice and iris recognition software can be prohibitively expensive. 5. Biometric technology is not infallible. While biometric technology can be big step forward to combating issues of identity theft, fraud, and money- laundering efforts, it is essentially a technological application. As is the case with any other technology, it can be hacked, infiltrated, or runs the risk of having data fall into the wrong hands. Since biometric technology in only at present being piloted on a large scale in some pockets of the world, legitimate concerns on privacy do arise. For example, it is possible to imagine that workers on the ID database will be corrupted, threatened or blackmailed. After all, the perpetrators of 80 per cent of all computer security lapses are not hackers, but employees. Optical scanners that use minutiae-based and pattern-matching technologies have been tricked into accepting reactivated latent prints or artificial fingers with forged fingerprints. It is important that a common platform is used if biometrics data is merged with other datasets. Biometric data is stored in formats that may not be compatible with the information systems of other government agencies so an effort must be made to have compatibility if it has to serve as the basis for a national identification system.
  36. 36. © H+D Consulting Group / Biometrics LATAM REPORT - Page 36 XI. STRATEGIC RECOMMENDATIONS The following recommendations, based on literature review for this paper, may provide useful advices for Biometrics Solutions business initiatives in Latin America. 1. Strategic Vision: Japan is the world’s leading and most innovative biometric environment. The Japanese biometric industry leads international competition in research, technology, applications and sales. Sovereign, other public and private customers worldwide prefer Japanese biometric solutions due to their superior quality and reliability. The industry is a strong and growth oriented part of the Japanese economy and sells products and solutions that make the society safer and provide convenience to users. 2. Business Mission: Biometric solutions are dedicated to meet and exceed the requirements of governmental, other public, private sector and consumer needs in the field of biometrics fast, efficient, with superior quality, and on the highest security level. They research, develop, manufacture, integrate, sell, operate and consult in the field of biometrics. Understanding the societal responsibility of any business, the industry commits to the Corporate Governance Code and the values of ethical business behavior. This means respect for human dignity, responsibility, trustworthiness, fairness and caring towards their customers, all interest groups and the society. Biometric solutions seek to improve the legal and societal framework of biometric technologies, and they support environmental issues. Summarizing basic values, these are:  Public and private customer orientation  High security  Superior quality  Technological competence and leadership in international competition
  37. 37. © H+D Consulting Group / Biometrics LATAM REPORT - Page 37  Innovation & future orientation  Research & application orientation  Commitment to economic policy  Ethical commitment – responsibility, trustworthiness, respect, fairness, and caring  Environmental commitment 3. Objectives: Objectives translate both vision and mission into concrete outcomes and milestones, and they express the commitment to achieve a given result in a given time. Therefore, they should be measurable, tied to a time restraint, and achievable. Objectives are either financial (e.g., a higher Return on Investment) or strategic (market-, efficiency-, competition-, prestige- oriented etc.). Moreover, they can be oriented towards social and ecological achievements. Based upon the strategic analysis results, and pursuing vision and mission, the following objectives are suggested: 4. Financial  Annual revenue growth equivalent to total world biometric revenue growth, i.e. at least 15% annually in the next 5 years. In the long term, the LATAM market growth rate should even exceed the world market growth rate to close the gap to the main competitors.  Biometric investments should create a positive and steadily increasing net cash flow.  Costs and prices of biometric products should reduce faster than the U.S. and British biometric industries.  Other financial objectives could be defined by the Strategy Department. 5. Strategic  Achieve a world market share over 5% by 2017. This means to participate in the growth of international markets and, simultaneously, large-scale entry in the Latam Region and other emerging Markets.
  38. 38. © H+D Consulting Group / Biometrics LATAM REPORT - Page 38  Diversify the structure of domestic demand to diminish dependency on government purchases.  Gain technology and quality leadership in the world biometric market, demonstrated by internationally recognized comparative tests.  Brand recognition should exceeds the U.S. and British biometric brand recognition among customers in terms of quality, reliability and security.  Research and develop new innovative biometric technologies and market new products faster than international competitors.  Achieve legal certainty with respect to detailed data protection and biometric application guidelines.  Support market consolidation to become competitive in size on the company level. 6. Social & Environmental  Enhance public perception of biometrics and technology acceptance. This should be reflected in positive media coverage.  Reduce risk aversion among customers.  Prevent ecological criticism in biometric technologies, e.g. concerning recycling of sort-out products. 7. Strategy Recommendations The pursued strategy approach for biometric solutions entry should be strongly market-oriented for three reasons. First, the strategic analysis indicated that developing the LATAM biometric market is the most difficult strategic aspect. Second, the industry comprises many players with contradictory competitive and financial interests. Therefore, an industry strategy will concentrate on non-competitive domestic aspects and international competition. Financial aspects must remain general as described by the objectives in the previous section. Third, this approach is supported by the observation that increasingly, markets are the bottleneck of managerial and business activities. Therefore, strategic marketing applies strategic management methods to analyze complex market situations and provide the basis for decision making and implementation of activities. This
  39. 39. © H+D Consulting Group / Biometrics LATAM REPORT - Page 39 enables the permanent adaption of objectives, resources and strategies to changing environment and market conditions to guarantee the survival of the company. Modern, market-oriented management has to comprise all these fields. The strategy should also consider general regional economic and security interests. Considering these premises, a joint industry strategy is possible as a consensus that can differ from the companies’ individual strategies.Based on this approach, the sub-strategies should be develop systematically, then illustrated in a strategy grid. XII. CONCLUSIONS Four technological developments will lead to evolution of second generation biometrics systems; (i) emergence of potentially new biometric traits, (ii) added value offered by soft biometrics, (iii) effective use of multiple biometric traits for large-scale human identification, and (iv) technologies to ensure a high degree of privacy, security and flexibility in the usage of biometrics systems. The expectations and the challenges for the second generation biometrics technologies are huge, technologies is going to be cumulative and continuous effort, rather than resulting from a single novel invention. The low cost of biometrics sensors and acceptable matching performance have been the dominating factors in the popularity of fingerprint modality for commercial usage. Continued improvements in the matching performance and gradual reduction in cost of biometrics sensors can be cumulative enough to alter the selection of biometrics modalities in future. The development of smart sensing technologies will allow the researchers to effectively exploit extended biometric features and develop high performance matchers using efficient noise elimination techniques. Surveillance will be a key issue for social and political analysis in the 21st century. It is also a crucial arena for ethical scrutiny and for policy debate. It takes its place within a larger politics of information that promises to expand as organizations come increasingly to depend on informational infrastructures.
  40. 40. © H+D Consulting Group / Biometrics LATAM REPORT - Page 40 Information, and above all personal information, has become valuable both to corporations seeking to construct customers for their products and for governments concerned about the adequacy of their security arrangements. Because these two very powerful entities are pushing hard for access to ever- increasing sources of digital data it is clear that the struggle to ensure that sufficient safeguards are in place to protect persons will be severe. Social and privacy concerns associated with biometrics technologies can be effectively handled with a two-fold approach. Firstly, the personal privacy should be regarded as an essential component of biometrics technologies. Policy makers, system developers and system integrators must ensure that these technologies are used properly. Secondly, the policy issues (ethical and legal framework) relating to the deployment of biometrics technologies should be clearly formulated to demarcate the conflict of interests among the stakeholders. The development of widely acceptable biometrics standards, practices and policies should address not only the problems relating to identity thefts but also ensure that the advantages of biometrics technologies reaches, particularly to the underprivileged segments of society who have been largely suffering from identity hacking. The future of biometrics societies is by no means a foregone conclusion. What actually happens from day to day is not the result of some technological fate or some relentless social process. Organizations are governed by many other factors in addition to bureaucratic rationality. Human beings are knowledgeable and reflexive, fully capable of intelligent response to the growth of surveillance systems, particularly when the latter appear to operate in unfair or inappropriate ways. So much, in other words, is contingent, that no definitive forecasts about surveillance societies are either possible or desirable. At the same time, standing back to take a long-term view of where discernible trends seem to be leading is worthwhile. Positively, this means that every effort should be made both to understand and to intervene in surveillance societies, on multiple levels. More research is required to follow through the implications of surveillance expansion, especially
  41. 41. © H+D Consulting Group / Biometrics LATAM REPORT - Page 41 in areas involving biometrics, universal identifiers, and video (CCTV), along with the growing cross-border traffic in personal data for both law-enforcement and commercial purposes. Ethical and policy research is also vital as a background to how governments and other authorities should debate attempts to regulate personal data flows. Educational initiatives are also required, both at a general level within high schools and universities and (especially) within university departments of computer and information science, to encourage contextual understanding of everyday processes involving personal information. While the future of the surveillance society may not be a foregone conclusion, present directions suggest that urgent, concerted and informed action will have to be taken on a number of fronts to harness surveillance power for humane and just purposes, and thus to preclude the possibility that it creates as many risks as it sets out to limit. While there are palpable risks to be faced – yes, with the aid of technology in the unstable globalized world of the 21st century, it must be seen that these risks include ones that are technologically mediated and augmented. Companies and governments must come to realize that nothing important is lost, and much that is vital could be gained, by attending carefully to the social and political consequences of automating personal data processing. The future of liveable democratic societies will depend in part on seeing questions of data protection and civil liberties as more than mere noise in the process of selling technologies and promoting security. . Herve Delhumeau Managing Partner H+D Consulting Group
  42. 42. © H+D Consulting Group / Biometrics LATAM REPORT - Page 42 Resources:  Workshop London, England, June 23, 2009, available at http://www.ipc.on.ca/images/Resources/2009-06-23 TrustEconomics.pdf3  Cavoukian, Ann (2011) “Patience, Persistence, and Faith: Evolving the Gold Standard in Privacy and Data Protection”, IFIP Advances in Information and Communication  Biometrics Collection Device Fails to Meet Standards”, Data Breach Today, http://www.databreachtoday.asia/articles.php?art_id=3600  Georgia Institute of Technology “Walk the Walk: Gait Recognition Technology”, http://gtresearchnews.gatech.edu/newsrelease/GAIT.htm  Global Security Intelligence (2012) http://globalseci.com/ page_id=44  Identification”, USAWC Strategy Research Project. http://www.dtic.mil/cgibin/GetTRDoc?AD=ADA404488  Conference on Emerging Trends in Engineering and Technology, http://www.computer.org/portal/web/csdl/doi/10.1109/  Applications, Challenges and Research Areas”, International Journal of Biometrics  Biometrics and the Challenges to Privacy, Ottawa, Canada. http://www.i-gov.org/images/articles/15467/Biometrics.pdf  Systems News: http://www.securitysystemsnews.com/article/report- finds-biometrics-‘fallible’-siadisagrees  U.S. Department of Defense (DOD) Annual Report Military and Security Developments.  U.S. Department of State (DOS) (2012) “Safety & Security of U.S. Borders”. http://travel.state.gov/visa/immigrants/info/info_1336.html  360 Biometrics, What is a Hand Geometry, URL: http://360biometrics.com/faq/Hand-Geometry-Biometrics.php  360 Biometrics, Difference Between Identification and Authentication, URL: http://www.360biometrics.com/blog/difference-between- identification-authentication/
  43. 43. © H+D Consulting Group / Biometrics LATAM REPORT - Page 43  About.com Terrorism Issues. History of Biometrics URL: http://terrorism.about.com/od/issuestrends/tp/History-of-Biometrics.htm  A Century of Biometrics, URL http://www.cnil.fr/fileadmin/documents/en/AR-22-biometrics_VA.pdf  Authentify Voice Biometric Authentication URL: http://www.authentify.com/solutions/voice_biometrics.html  Biometrics in the Here and Now URL: http://www.technewsworld.com/story/59728.html  Demistifying Voice Biometrics: The Future of Security is Available Today URL: http://www.usfst.com/article/Demystifying-Voice-Biometrics--The- Future-of-Security-is-Available-Today  Derawi Biometrics: Research on Different Biometric Modalities, Gait, URL: http://biometrics.derawi.com/?page_id=38  DNA as A Biometric Identifier, URL: http://www.cse.msu.edu/~cse891/Sect601/CaseStudy/DNABiometricIde ntifier.pdf  Global Security.org, Hand Geometry and Handwriting, URL: http://www.globalsecurity.org/security/systems/biometrics-hand.htm Bometric Gait recognition, Jeffrey E.Boyd, James J.Little, URL: http://course.ku.ac.th/lms/files/resources_files/2512/157917/gait_10.1.1. 110.9741.pdf  Biometrics History, URL:http://www.biometrics.gov/documents/biohistory.pdf  Biometrics in the Here and Now URL: http://www.technewsworld.com/story/59728.html  Derawi Biometrics: Research on Different Biometric Modalities, Gait, URL: http://biometrics.derawi.com/?page_id=38  DNA as A Biometric Identifier, URL: http://www.cse.msu.edu/~cse891/Sect601/CaseStudy/DNABiometricIde ntifier.pdf  Gartner Group / July 2012 Report  Frost & Sullivan

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