Acknowledged as one of the most innovative, competent and comprehensive suppliers of safety and security solutions in the world, Bosch Security Systems continues its commitment of continual improvement on a truly global level. The company is a subsidiary of Robert Bosch GmbH, which was founded in Stuttgart, Germany in 1886 and now comprises three technology business sectors Automotive, Industrial and Consumer Goods and Building. In fiscal 2006, the group had sales of Eur 43.7 billion and employed 260,000 people. The manufacturing, sales, and after-sales service network has some 300 subsidiaries and more than 13,000 Bosch service centers in over 140 countries.
A CORE BUSINESS
Although Bosch Security Systems has been active since 1920, its present-day activities have mainly developed from the former Bosch Telecom in 1995. The combined experience and expertise of industry leaders such as Detection Systems, Radionics, and Philips CSI, backed by more than 100 years of Bosch’s quality and innovation, has enabled Bosch to become a major global force in security. Activities now include all areas of CCTV surveillance, intrusion and access control, fire detection, alarm and management systems, as well as public address, conference, care solutions, paging and personal security. It is a core business within the Group, contributing more than 1,3 billion Euros to overall sales in 2006 with a workforce of 10,297 people and operations in more than 45 countries.
Marketing and sales are co-ordinated through three regional headquarters based in Germany, the U.S.A. and Singapore. An independent profit center was set up in January 2006 to enhance customer service worldwide. Service centers based in the U.K., the U.S.A., Singapore and China control more than 100 authorized repair facilities in 75 countries.
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Airport evacuation system (Photo by Bosch Security Systems) |
ATM security (Photo by Bosch Security Systems) |
DEALS & ACQUISITIONS
Like many other major corporations, Bosch enters into partnerships and acquisitions that streamline operations and broaden product and market scope, providing benefits to installers, system integrators, dealers and end-users. In addition to the three companies, Detection Systems, Radionics, and Philips CSI above, Bosch has concluded a number of agreements in the last few years. In 2004, Bosch acquired the share are capital of Video Communication Systems AG in Nuremberg, Germany, immediately adding substantial technology know-how and a portfolio of innovative digital network IP-based products. Also in 2004, the acquisition of Micos GmbH in Germany allowed Bosch to strengthen its technology and market position in access control. In 2005 Bosch acquired ADC Technologies International Pte Ltd, headquartered in Singapore with offices in Malaysia and China. This acquisition enabled Bosch to further expand its product offer in access control and building integration.
More recent deals, in 2006, include the acquisition of Telex Communications Holdings, Inc., and TeleAlarm Group. Telex is a US-based leader in professional audio and electro-acoustic systems and the acquisition broadens Boschs product offer at the same time as strengthening market position by expansion in North America, Japan and Europe. In fiscal 2005, Telex had sales of US$308 million with nearly 2,000 workers at 14 locations in nine countries. Telex owns such brands as Electro-Voice, Dynacord, Midas, Klark Teknik, Telex and RTS. The business unit of Bosch Security Systems that now includes these brand names was named Bosch Communications Systems on 1 January 2007.
The acquisition of TeleAlarm Group, a Swiss company, enhances the range of care solutions and nurse call systems, contributing an additional Eur 10 million in sales through offices in five key European countries. TeleAlarm products are primarily installed in the homes of people being cared for, in retirement and care centers and in sheltered accommodation facilities and hospitals.
These acquisitions have extended Bosch Security Systems’ manufacturing facilities by seven more plants, bringing the total to 12 based in Germany, the Netherlands, U.K., France, Switzerland, Portugal, China, the U.S.A. and Mexico.
BUSINESS MODELS
The company operates on three business model levels: Product Business, Installer Business and Communication Center. Product Business involves the supply of the entire product line through conventional sales channels, with global service and training support for consultants, installers, system integrators, dealers, distributors and OEMs. Installer Business provides customized solutions in Germany, the Netherlands and Hungary, through Boschs own technicians, supported by a comprehensive sales, installation, maintenance and service network. And the Communication Center provides communication and monitoring services across Europe.
PROFESSIONAL CHANNEL PROGRAM
Other services for system integrators, Value-added Resellers (VARs) and their customers are provided through Bosch’s Professional Channel Program, a global network of professionals who supply, install and service Bosch security solutions. Channel partners incorporate the Bosch range in their product and service offer that allows business opportunities to be maximized through identifying business prospects in the market. Partners further benefit from full training and service support as well as being listed in the dealer locator on the Bosch Website.
SUCCESS FORMULAS
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Railway security (Photo by Bosch Security Systems) |
Remaining at the forefront in the highly competitive security market is a constant effort that requires major investment. One of the key factors in Bosch’s strong position is its comprehensive product range, probably the most complete and innovative in the world. Keeping the range up to date is essential in maintaining a leading position and customer satisfaction. In the last 12 months, Bosch has introduced a number of significant new products and product enhancements. Announced was an improved version of the acclaimed Local Security Network (LSN) fire and intrusion alarm bus system, now with a higher level of loop current, expanded loop length, more efficient programming and maintenance, as well as downward compatibility and security at lower cost.
Additions were made to the award-winning professional series detectors that employ Bosch’s patented TriFocus optics for maximum gain and Sensor Data Fusion (SDF) digital signal processing. A new generation platform for the 360-degree AutoDome camera range was introduced that adds even greater intelligence and advanced functionality such as TCP/IP connectivity and object tracking.
In October 2006 Bosch introduced Bosch Video Management System, a unique enterprise IP video security solution that provides seamless management of digital video, audio and data across any IP network. Such developments are essential in pursuing continuous innovation and are part of Bosch’s investment in quality improvement.
UNIQUE TECHNOLOGY POWER
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Swimming pool voice alarm system |
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Residential security (Photo by Bosch Security Systems) |
Bosch recognizes that the main driver of technology in the security industry continues to be the transition from analogue to digital, with emphasis on IP, although it will still take some years for the large installed base of analogue systems to make the transition. Along with the transition to digital, a major issue in 2006 also addressed by Bosch was the continuing integration of CCTV security systems with fire and evacuation, and management systems. This is where Bosch functions as a “One-stop-shop”-- a single vendor of all that is required by the security industry, making it easier for all customers.
An emerging technology that is greatly enhancing the effectiveness of CCTV security is Video Content Analysis (VCA). Bosch is developing algorithms that are much smarter than the relatively simple video motion detection algorithms of a few years ago. They are capable not only of motion detection, but also of detecting specific objects like dropped baggage, direction of movement and even suspicious behavior such as loitering all in real-time. The group of algorithms is known collectively as Intelligent Video Motion Detection (IVMD) and Bosch is currently deploying it in its range of IP network products. IVMD suppresses most false alarms in VCA systems caused, for example, by moving tree branches, leaves, clouds, shadows and falling rain and snow. The algorithms are also capable of dynamically adapting to changes in background so that alarms are triggered only in real alarm situations. Interestingly, Bosch is also developing VCA intelligent sensors for automotive applications an example of shared R&D resources and projects between Business Units, which is taking place at the Hildesheim facility.
Wireless technology is also at the forefront in security and a market that is predicted to grow at a compound annual rate of close to six percent for the next five years. One of the areas Bosch has addressed is the Easy Series residential intrusion control system for which the wireless Local Security Network (wLSN) has been developed. This high-security and robust system has been developed in co-operation with the Robert Bosch research center in Palo Alt, California, the U.S.A.
Also in camera technology, Bosch has developed advanced chipsets as part of its continuous improvement program. For the future, Bosch is looking at developing solutions based on Micro-Electromechanical Systems (MEMS) technology and systems for mobile security applications that employ GPS/GSM technology.
MARKET PRIORITIES
Identifying and addressing market opportunities is also key in gaining and maintaining a leading position. One of the most important developments at Bosch is the rapid growth of its Security and Communication business in the Asia-Pacific region, which has grown faster than the global market. Major contributors are booming economies in markets like China, India, Singapore, but also in markets with lower GDP growth like Australia, Thailand, Korea security systems sales were outstanding with customer-oriented solutions. In 2006 Bosch grew at more than double the market growth rate in Asia-Pacific. One of the steps taken to meet the market demand is to customize the product portfolio to suit the market requirements.
Special products and systems for Asia include a multi-tenant and video door phone solution, developed primarily for the Chinese market, and later introduced for other Asian markets; and a tailor made congress solution for courthouses.
R&d INVESTMENT
Also a key factor in Boschs success is its extensive research and development facilities. With more than ten percent of sales invested, they are among the biggest and best in the world. Central R&D support is shared by all Divisions and Business Units, thereby gaining maximum synergy in applying advanced technologies with optimal efficiency.
This is especially relevant for software-driven applications rapidly becoming a key differentiator in security solutions.
Here Bosch provides comprehensive management solutions as well as Software Development Kits that facilitate the work of installers and system integrators.
STANDARD SUPPORT
Active membership and participation in standards institutions, committees and associations are essential to product development. Included in Boschs pioneering support are organizations such as CEN, CENELEC, Euralarm, EN and the IP User Group.
WORLDWIDE CUSTOMER BASE
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Industry personal security (Photo by Bosch Security Systems) |
With its truly global reach Bosch has established installations in every continent. In Europe, for example, extensive CCTV networks are in operation in Munich’s Oktoberfest and in the National Bank of Hungary. Fire alarm systems have been installed in the luxury Kempinski Hotel in Turkey, Munich’s City Hilton Hotel and in the futuristic Audi Forum building belonging to the famous auto manufacturer in Neckarsulm, Germany.
A project is under way with a major department store in the U.S. where Bosch’s Building Integration System solution is being tested in their IT lab. When commissioned, it will be part of a nationwide upgrade spanning more than 300 outlets in the chain. FedEx Corp. is also involved in an upgrade project, deploying Bosch’s Conettix IP fire alarm communication solution in its Package Express facilities. This will affect approximately 1,100 FedEx installations in total.
In Asia, major installations in 2006 include fire alarm and public address installations in Hong Kong`s Asia World-Expo conference center, public address and sound systems for Bangkok International Airport, conferencing systems for the World Bank-IMF meeting in Singapore and Melbourne Airport, Australia, and access control for Thailand’s KBANK.
Many of these projects have been implemented by Bosch authorized installers, thoroughly professional engineering companies that have experience of national and regional standards and understand local requirements. A large number of these installers are members of Bosch’s Professional Channel Program. In addition, Bosch’s Managed Services simplify project financing and ensure optimal management of security solutions.
ENVIRONMENTALLY CONSCIOUS
Bosch`s strong, global leadership position is not only strengthened by partnerships with value-added retailers, system integrators and installers, it also has a clear social responsibility that among other things embraces on-going sustainability and environmental programs. One of the many targets set for the environment is to have all products compatible with the Restriction of the use of Hazardous Substances (RoHS) directive concerning hazardous substances within the next three years.
Protecting the environment is also reflected on a personal basis by Bosch’s workforce throughout the world. An excellent example to all employees and to industry in general is Franz Fehrenbach, Chairman of the Bosch Board of Management, who had the honor of being awarded with the title ‘Eco-Manager of the Year 2006’ for his commitment to environmental protection and sustainable, resource-conserving development.
DIFFERENTIATION
Bosch regards innovation as something more than exceptional product quality, functionality and design. Not only in technical developments, but also in the company’s commitment to society that has an effect on the world of tomorrow. Continuous process improvement is part of this. One example of how this is being achieved is through the Bosch Security Academy, an on-line training facility currently being set up, initially in Europe.
The basic Bosch corporate values were defined by the founder, Robert Bosch, and have been added to over the years as the company developed. They reflect the attitude of the way business must be conducted the ethics in dealing with customers and employees.
Boschs wide spectrum of activities in global product business and in building technology is expanding in a number of countries, which puts the company in a strong position for maintaining, or even increasing, its growth rate. Using its continuous process improvement program, Bosch is constantly renewing its extensive product portfolio and comprehensive range of services in keeping its high level of customer satisfaction. Bosch firmly believes that it is well qualified to continue its leadership position in the growing security industry and remain a key driver of its innovation.
Q&A
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"Our objective will
continue to be
the improvement of safety and security."
-Gert van Iperen
Executive Vice President of Bosch Security Systems
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With its customer orientation, constant product innovation and resolute investment in R&D, Bosch Security System is renowned as one of the top five multi-nationals in the security industry with more than 10,000 active employees in over 45 countries.
Boschs current acquisitions, including Tele Communication Holdings, TeleAlarm Groupd and Micos GmbH, have extended Bosch Security Systems manufacturing facilities by seven more plants, bringing the total to 12 based in Germany, the Netherlands, the U.K., France, Switzerland, Portugal, China, the U.S.A. and Mexico.
Sunny Kim, Editor of SecurityWorld INT`L, spoke with Gert van Iperen, Executive Vice President of Bosch Security Systems, who in the interview talked about Bosch Security Systems current acquisition and ultimate vision.
What do you think is the driving force that leads Bosch to be the worlds security market leader?
Customer orientation and product innovation are the key success factors. We have marketing, sales and support specialists in more than 45 country organizations that support our customers in the pre- and after-sales activities. Continuous training of customers and employees is part of our daily work in order to anticipate new trends in the security industry.
The Bosch Professional Partner Program is continuously enhanced to improve the service to our customers. Bosch is spending more than 10 percent of sales in research and development. Next to that the Security Systems division benefits from the basic research activities of the parent company Robert Bosch GmbH. These investments result in an innovative and competitive portfolio.
Bosch Security Systems has acquired Telex Communications Holdings, thus strengthening its position as a complete provider of security and communications system. Please explain to us the expected outcomes.
We experience an increasing demand for integration and a growing importance of audio in safety and security applications. In order to achieve effective evacuation in high-rise buildings fire detection systems have to interface seamlessly to audio evacuation systems. In soccer stadiums the Pro-Sound Music system is also used for public address announcements. In city surveillance systems the monitoring center can make announcements via public address systems to avoid or control incidents.
These are only some of the examples why communication and security will merge even more in the future from an application point of view. From a technical point of view all applications will start to share a common IP-based platform. A strong position in safety, security and communication products and systems will enable us to serve our customers’ demands not only now but also in the future.
Bosch is now at the center of manufacturing advanced video cameras and video-over-IP products. Please update our readers on some of the latest, breakthrough IP-based systems.
Maybe I should repeat our IP strategy here. First of all, with the move to IP-based video systems we should never forget the tremendous installed base of analogue video systems. Still today customers decide to install analogue systems. Bosch will continue to offer analogue cameras to support the analogue world. At the beginning of this year we introduced an improvement to our Allegiant analogue switching system. The analogue market continues to be of key importance to Bosch. We offer our customers a growth path from analogue to IP via our hybrid DVR, the DiBos 8 and our IP encoders and decoders.
The IP versions of our AutoDome and FlexiDome cameras and a ruggedized version of the VideoJet series of encoders have been introduced in the first four months of 2007. More enhancements and new products will follow.
With the Bosch Security Systems Dealer program, Bosch is offering its sales partners marketing tools, marketing support and product training. Please briefly introduce the program.
Bosch offers Security Systems Dealer programs in most countries. Next to the added value that Bosch offers in the programs to the dealers one of the most important elements of the program is to get feedback from the dealers on market trends and our performance. In addition, we discuss our marketing and product strategies. Feedback from these discussions often results in process improvement actions and projects.
Around the world, scientists, engineers and technicians are involved in developing new products and innovative manufacturing processes as well as continuously improving existing products. As a result of its R&D efforts, Bosch filed a lot of patents. Could you tell us one of the most innovative patents?
1. Flush-mounted smoke detector Series 500 with external/ virtual measuring chamber, for unobtrusive protection.
2. Wireless-LSN (wLSN) = Wireless security network with low current consumption Both of them are still pending but we are confident that the patents will be approved.
Last but not least, please comment on Boschs ultimate vision.
We see our industry moving from a product orientation to an application and solution orientation. Several types of sensors will be integrated to obtain the best catch performance at zero false alarms, cameras will be intelligent devices that can track and recognize people, and all applications will share the same IT infrastructure.
Management software will be tailored to the application of the user and so on. Our objective will continue to be the improvement of safety and security by offering an innovative portfolio to our customers.
For more information, please send your e-mails to swm@infothe.com.
ⓒ2007 www.SecurityWorldMag.com. All rights reserved.
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