This document discusses the challenges facing physical security integrators according to a survey of 174 solution providers. It identifies the top challenges as keeping pace with evolving technologies, managing client expectations, finding and retaining staff, creating recurring revenue streams, competition from low-cost alternatives, and maintaining vendor relationships. The document then provides advice on how to overcome each challenge by focusing on customer needs rather than technologies, building recurring revenue models, leveraging distributors like Ingram Micro, and prioritizing customer relationships over all else.
Emergent Methods: Multi-lingual narrative tracking in the news - real-time ex...
Ingram micro physical security ebook
1. Tips on how to overcome
today’s market challenges
physical
security
threats
6
2. The recent “2017 State of the Security Industry Report”
by the SouthComm Security Media Group identifies the
trends that threaten and/or concern physical security
integrators today. Based on the results of a survey
of 174 leading security-focused solution providers,
the revealing data makes the study a must-read for
anyone working in this field.
At Ingram Micro, we see firsthand how the physical
security landscape is changing and have daily
conversations with partners about the threats and
challenges they face. Therefore, as a companion piece
to the original study, we’ve added the missing pieces
that take the data from compelling to business altering.
2
3. 1
In the report, 48.3% of
respondents listed this as
their top challenge, most likely
referring to the rapid pace of
technological advancement taking
place in the physical security field. Indeed,
the manufacturers have been busy and
technology is changing and improving
at speeds that can be overwhelming to
follow. While there’s no doubt that these
changes will propel the industry forward,
should they be keeping solution providers
awake at night?
“Keeping pace
with evolving
technologies”
Our advice
New technologies come to market every day, and
manufacturers will continue to innovate. Keeping pace
will always be a challenge difficult or impossible to
overcome. Step away from the hype, and build your
sales process around the needs of your customers
rather than the latest features that customers don’t
even understand.
When all they hear about are technical specifications
and new products, they get frustrated and decide on the
cheapest thing they can find because they know there
will be something better tomorrow.
For example, rather than talking to a hospital about
the features of the latest 4k cameras, ask about their
needs as they pertain to active shooter situations, their
workers’ compensation needs, theft and visitor safety.
Talk about what makes their hospital run, as well as their
goals and needs. Ask what they want to accomplish and
help them find the right vendor with the right solution
set to meet their long-term needs—perhaps their 5- or
10-year goals.
Stop focusing on technology and start listening to
what end users are telling you. Rather than keeping
pace with technology, keep pace with the needs
of your customers. Don’t recommend technology
because it’s new; recommend it because it solves a
customer’s problem.
3
4. Our advice
The majority of end users have their problems at
the forefront of their minds, not in the specs of new
technology. They expect solution providers to help
them solve their problems. Unfortunately, as discussed
in the previous point, many solution providers don’t
put enough energy into identifying and addressing
customer problems and instead focus too much on
technology during the sales process. This can result
in customers assuming they’re getting what they need
when gaps exist.
Work with your customers to break their issues down
to root causes and themes and then apply the right
technology to solve the problem. Only then can you and
your customers feel confident that their needs are being
met and expectations are aligned.
44.4% of respondents
made this the second
greatest challenge in the
report. Your customers do their
own research about technology. If you have
trouble keeping pace with technological
change, imagine how customers who don’t
focus on the technology every day feel.
2“Managing client
expectations
with reality as
new solutions are
promoted”
4
5. 3 Our advice
If technology is the only thing you’re going to focus on
as a company, you’re not going to be challenging your
team with anything new, creative or innovative. You’ll be
the same as 9 out of 10 other solution providers. At that
point, retaining talent will come down to being able to
pay them more than someone else.
If you’re focused on real solutions and learning about
how to help your customers, you’ll be better able to
keep employees engaged and focused on doing the
right thing. A sales focus on helping the customer
solve problems will result in more sales and happier
salespeople. Salespeople will also be happier to not
have their focus be based on a specific technology
or, worse, a brand. Leading with a brand today is the
fastest way to price yourself to the bottom. As a side
note, focusing on deeper customer engagements will
often lead to upsell opportunities and larger sales.
Encourage your employees to pursue certifications
and better themselves. This too, will lead to higher
satisfaction (and better-served customers).
Bottom line, your team will get more satisfaction from
their day-to-day jobs when they know they’re making a
difference and helping customers rather than pushing a
product or brand out of forced loyalty.
“Finding and
retaining
technical and
sales staff”
Regardless of the market
focus, the IT industry
has historically faced the
challenge of finding and
retaining technical and sales staff, so it’s not
surprising to see that 36.2% of physical
security solution providers named this a
top challenge.
5
6. 4 Our advice
10 years ago, solution providers had few options in the
physical security space. Today, we see many new cloud-
based physical solutions coming to market, such as
hosted access control, cloud-based video management
system (VMS) cloud storage (for video backup and
retention) and maintenance and service plans—all great
ways to create a new recurring revenue stream.
Some solution providers are adding hardware
as a service (HaaS) offerings to give customers
leasing options.
If you’re looking to compete on a different level,
consider branching out to attend to the needs of
your customers beyond physical security. Unified
communications and collaboration (UCC) tools, digital
signage, and other technologies not only give you
additional revenue streams and allow you to more
completely address the needs of customers, they create
stickier relationships with customers, making you more
difficult to replace by competition.
“Creating new
areas of recurring
monthly revenue”
Building recurring revenue
makes bad businesses good
and good businesses great,
which is why 31% made this a
top challenge. Pursuing recurring monthly
revenue (RMR) creates stability, can be
closely tied to efficiency gains and allows
businesses to better manage the ups and
downs of the year. Additionally, more RMR
is a major factor in increasing the value of
business when it’s time to sell it or retire.
6
7. 5
Our advice
If your sales conversations are based on technologies,
you’re going to lose out to low-cost alternatives. A
$500 4k camera will look like a $2,000 4k camera to an
uneducated customer. Focus on identifying problems
and identifying the right technology to achieve business
outcomes, and your customers will understand
that what you’re selling is not the same as a low-
cost alternative.
For example, a cheap $500 4k camera might not have
the onboard storage and built-in analytics a retailer
requires, while the more expensive camera you’re
proposing does. Unless you fully understand your
customers’ needs and then discuss the application of
the right technology, they might not know the difference
between what you’re offering and what they can find
online at a fraction of the price.
“The influx
of ultra-low-
cost video
surveillance and
access control
technologies in
the market”
Nearly neck and neck with
creating monthly recurring
revenue in the survey, 30.5%
of respondents pointed to the
challenge of low-cost competition, and
rightfully so. Competition is fierce and
increases every day.
7
8. Our advice
Determine your core competency and what you want
to be known for, and talk to your Ingram Micro rep for
help in identifying which of the 46 vendors we carry fit
your model. While some of our competitors carry every
brand in the market, we’ve handpicked the best, most
relevant vendors that cover VMS, cameras, access
control, networking and more. Rather than having
to maintain multiple relationships with vendors, you
can have one relationship with Ingram Micro. This is
particularly effective if you’re a solution provider looking
to add physical security to your line card and have no
knowledge of the vendor landscape or how to evaluate
their fit with your business.
Additionally, as you build complex solutions for your
customers, Ingram Micro can help you confirm the
interoperability of the pieces you’re using to overcome
integration challenges. Finally, if you have a customer
with very niche needs, we can help you identify the
vendor and product you need.
While down the list a bit at
17.2%, maintaining vendor
relationships—especially as
they relate to mergers and
acquisitions—is critical to the
operational efficiency of a physical security
solution provider. Nurturing multiple vendor
relationships can create a burden on your
staff and dilute the relationships you have
with those vendors.
6“Maintaining
vendor
relationships as
security mergers
and acquisitions
continue”
8
