Pelco, a leading analogue CCTV manufacturer, has announced a 4% layoff as it struggles with the industry shift from analogue to digital video surveillance. The company faces challenges in acquiring new skills necessary for this transition while managing layoffs and streamlining its business. The rapid changes in technology and increased competition pose significant risks for Pelco's future viability.

1. Pelco Surveillance
in trouble

2. Christian Sandström holds a PhD from Chalmers
University of Technology, Sweden. He writes and speaks
about disruptive innovation and technological change.

3. Pelco – one of the largest manufacturers of analogue CCTV
cameras recently announced that around 4 percent of its
workforce will be laid off.

4. The company had another minor layoff in late 2008.

5. The industry is currently experiencing a shift from analogue
to digital internet-based video surveillance.

6. The shift means that a company like Pelco has to acquire
plenty of new skills in order to sustain is position.

7. With an analogue tradition, however, it is difficult to
remain competitive when the competence base of
the industry is shifting.

8. Pelco is therefore facing the challenge of
transforming the company, while at the same time
having to coordinate layoffs and streamline its
existing business.

9. Shifts to digital technology tend to be fast and violent.

10. New products quickly lose their value.

11. So if Pelco manages to renew its business…

12. … paradise is still not waiting for the company.

13. On the contrary…

14. … competition will be tougher than ever before.

15. Acquiring new skills is not easy for an established firm, and
it’s even more difficult if it has already been wounded.

16. Is Pelco heading for the graveyard?

17. Is Pelco heading for the graveyard?
We’ll see.

18. Find out more:
www.christiansandstrom.org