VP, VSS Business Team, Digital Media Business, Samsung Electronics Co., Ltd. (Photo by Sam Jang)
Samsung Electronics’ move to enhance its security business is based on its judgement that the growth potential of the security market is much bigger than that of the consumer electronics and that by leveraging its strong capabilities in other industries to the utmost including video technology such as TV and monitors; communications technology such as mobile network; and semiconductor memory technology, it will be able to provide leading edge total security solutions to the customers.
Samsung Electronics has also announced an ambitious plan to reach the US$1 billion mark in security sales in three years catching the eyes of the industry insiders. As the industry is watching Samsung’ move carefully, SecurityWorld INT’L spoke with Inrok Do, Vice President of VSS Business Team, Digital Media Business, Samsung Electronics, about the electronics giant’ blueprint for beefing up its security business.
By Jeanny Lim
Can you please tell us more about what’s behind the decision to bolster your security business?
The security market has been growing by 16% annually and the IP-based security market, in particular, has been showing a phenomenal growth expanding at a rate of 50% year after year. The security market including video surveillance, access control and intrusion detection is expected to reach US$50 billion in 2012, from US$35 billion in 2008.
In addition, the convergence of different security technologies such as video surveillance, access control and intrusion detection is accelerating. Moreover, security technologies are quickly expanding their applications into non-security fields such as energy saving, environment and logistics. Considering the changes in market dynamics, it is a natural and logical conclusion that we focus on the high growth security business. This year, we set out three new directions for our security business -- enhancing video surveillance capabilities; targeting opportunities in new industries; and shifting the focus to solution business. Under the directions, we will try to secure contracts for solutions projects based on our highly innovative, market-specific solutions that include home networking and integrated solutions.
As Korea’s largest and most influential enterprise and a fast-growing global security player, what’s your position on partnership with SMEs in the security industry?
Samsung Electronics is Korea’s best and largest company and aiming to be the world’s best. So, we feel greater responsibilities for developing good partnerships for the sake of the security industry where SMEs are dominant market players. We firmly believe that we cannot survive or succeed alone: we only can grow when our partners grow. This is why we recently established a department dedicated to dealing with partnership.
With the partnership department, Samsung Electronics is able to seek better and more ways to work together and grow together with our partners. We believe security business is one of the typical businesses that require collaboration not only with your major partners, but also with many SMEs. Samsung Electronics does not want to play alone and is very enthusiastic about teaming with SMEs to grow the security industry. We will be active in adopting high quality products and solutions from SMEs and will also be active in expanding sales through our well-established overseas partner and distributor networks. We plan to share our mid- and long-term road map for security business with our strategic partners and give more weight to the strategic partnership by unifying hardware platform, user scenario, UI, etc.
We can’t and have no intention to develop and produce everything for the security industry. Thus, we will team up with major players in video surveillance, access control, intrusion detection and location tracking to increase our competitiveness in the global market. Furthermore, we will focus on developing core technologies and growing solution business. We hope our initiatives and activities in the security industry will contribute to the growth of the industry and bring win-win to all.
How are customers’ needs for security solutions changing, to your mind?
We see customers’ needs for security environment and solutions are changing dramatically all over the world. Until next year, the portion of IP-based solutions and hybrid products in the market will continue to grow. During 2010 and 2011, IT companies will join existing security systems integrators in providing integrated management software, and IP technology will fuel the convergence of video surveillance, access control and intrusion detection technologies. From 2012 onward, we will witness integrated solutions becoming a common thing in the market; a tug of war between security systems integrators and IT companies over the control of the market; and security applications finding their place in non-security sectors such as energy saving, environment and logistics. To rapidly respond to these changing market dynamics, Samsung Electronics has been moving quickly under the banner of “IP, Integration and Intelligence” and expanding applications into non-security fields. We’ve completed the line of IP and intelligent video products and set up a plan to launch RTLS-based location tracking solution business. Moreover, we are now developing WiFi-based wireless response solutions and auto tracking solutions using facial recognition technology.
In addition, we are also strengthening our flagship DVR and IP-based camera lines by continuing to release new products and adding new features reflecting the market needs.
Jeanny Lim is Editor-in-Chief of SecurityWorld INT’L. Send your comments to email@example.com.
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