In the second of our IP features we examine IP from the installer/integrator’s point of view: Chris Lewis of Chris Lewis Security Services says unless security providers wake up and respond to the challenges, they will face an uncertain future …
The age of broadband is fast upon us. The implications of a new generation of technology brings with it many exciting opportunities. IP and networked based security solutions are set to transform the shape and structure of the security industry. However, with the opportunities come challenges that many security providers are ill prepared for.
To date, a large majority of the industry have been slow to embrace IP and networked based security solutions. The benefits of these systems are becoming widely publicised, so why are so many security professionals still unable to provide their customers with the solutions that are available on the market?
Our customers are increasingly demanding a sophisticated and professional service, but many companies continue to fall short in this arena.
At the same time, our industry is suffering from a substantial skills gap. For many security providers to survive they will need to take responsibility for training and developing a workforce with the relevant skills and experience to take them into the next decade. Of course, all this training and investment costs money; yet the industry continues to drive its prices down. With a worrying number of security installers selling at a loss or just breaking even, the industry desperately needs to revise its priorities and focus on charging a realistic cost for its services.
The security industry is on the brink of a revolution. Are you ready for the challenge?
Technology moves faster than skills
IP technology is changing the way the security industry works. Where some companies have been quick to recognise the potential of technological advances, a large number of the industry’s ageing workforce have yet to embrace the changes.
With a worrying number of installers selling at a loss or just breaking even, the industry desperately needs to focus on charging a realistic cost for services …
As the knowledge of new technology and the obvious benefits of networked systems become more widely publicised to end users, networked and IP based security solutions are increasingly being specified and installed across the UK. The sophistication of today’s security systems means that the knowledge, skills and commitment of those within the industry have never been more tested. However, too many security providers simply aren’t making the grade and are at risk of losing their market share.
Advanced technology has historically been heralded by the IT industry. Professional security practitioners now face a simple choice; embrace the new technology or lose the majority of the market to the IT industry. Whilst IT experts can deliver the latest networks and have an understanding of IP technology, they lack the training, knowledge and experience required to install a correctly designed security solution that meets industry standards and legislation.
Skills for Productivity
The security industry still has the upper hand, but security practitioners need to rise to the challenge. They need to harness the new technology and rapidly gain the skills and the first hand knowledge required in order to remain credible and competitive.
With continuous advancements in technology, the need for more highly skilled and trained people within the security industry increases year on year. Replacement demand is also a key issue. Skilled workers are urgently required to replace the increasing numbers of security professionals leaving due to retirement or career changes.
As within a lot of industries in the UK, the security industry is struggling to recruit the numbers of skilled staff required. Provision urgently needs to be made to match training programmes with the changing shape and structure of the industry. In order to survive, we need workers with a greater breadth of skills and a greater commitment to the job.
The knowledge, skills and commitment of those within the industry have never been more tested …
Whilst there are clear implications for government support and publicly funded education and training, the security industry has a responsibility to confront the challenges it faces and respond quickly to fill the substantial skills gap.
If security practitioners want employees who are better educated and have up to date skills that are relevant to the industry, then they need to contribute to their training. Modern Apprenticeships (MAs) are designed and developed in partnership with employers and national training organisations and therefore offer the perfect opportunity to do this. MAs provide companies with staff who are equipped with the skills, flexibility, competence and loyalty they need to help them prosper and grow. The more apprentices we churn out, the better it is for the industry. At the same time, continuous investment in training existing employees is essential if the industry’s workforce is to keep up to speed with the latest technological developments.
The channels, funding and opportunities are available. Now it is time for security practitioners to take responsibility for training the skilled workforce that the industry desperately needs.
Customer Service Focus
Whilst the advent of broadband is changing the face of security solutions, technological advancements have also influenced the internal transformation of the industry. Providing excellent customer service is the new business battleground and it requires commitment and investment in new technology.
Anyone running a company knows that acquiring a new customer costs much more than retaining an existing one. Existing customers require less marketing spend and less sales effort. In today’s technological age customers are far more switched on and demanding of a sophisticated, professional and timely service. This is an area in which the industry has generally fallen short to date and that is increasingly affecting our credibility. Simply satisfying your customers will not cut it these days. Some of the major players in the industry need to wake up and recognise this.
The security industry still has the upper hand, but security practitioners need to rise to the challenge …
Retaining your existing customers within the security industry’s competitive marketplace requires investment in internal communication processes. Security practitioners need to invest in the very latest systems and processes in order to provide their customers with the fast, reliable and efficient service that they expect.
Those businesses that are succeeding today are those that have realised the importance of investing in IT as a key service delivery tool. However, there still remains a general reluctance within the industry to invest in new technology and implement it to improve customer service. Customer relationship management systems, electronic databases which hold customer specification details and have audit capabilities, satellite tracking of company vehicles and devices such as PDAs will all effectively improve customer service and bring about a measured return on investment.
Price Wars
Recent statistics released by Plimsoll Publishing Limited reveal that there are a disturbing number of security systems installers making a loss. The latest figures show that 227 of the industry’s top 997 companies are struggling and have been rated ‘in danger’, 189 companies are selling at a loss and 38 per cent of companies have seen their sales fall. Losses at this rate simply cannot be maintained. In today’s competitive market it is a case of survival of the fittest. The fittest will be those companies that are making a profit.
For too long the industry has competed for market share through price. Security practitioners need to realise that with the advent of new technology and the training and skills that are required to take it to market, they have to charge a realistic price for their services. Market share needs to be gained by improved customer service, not price. Despite the palpable skills gap, many companies are still driving prices down. Training and investment in the new technology and service delivery tools and processes that will gain your company market share all cost money. For the industry to grow and for it to attract newcomers, prices need to be hiked up and margins need to be closely scrutinised. Ask yourself, is this the industry you would choose for your children?
Investing in the future
With the technological age upon us, the security industry faces some exciting developments and some unique challenges. Whilst some security professionals are comfortably positioned to face these challenges and make the most of the opportunities, many within the industry need to wake up and react quickly.
Responsibility needs to be taken within the industry to work with the relevant training and government organisations to ensure our future workforce has the relevant skills and experience. At the same time the industry needs to embrace networked and IP based technology in order to respond to the growing market and deliver the sophisticated security solutions our customers are increasingly demanding. Investing in the latest internal technology and charging realistic prices to afford these investments is also a necessity if the industry is to remain credible and security solutions providers are to compete with the encroaching IT industry.
Source
Security Installer
Postscript
To find out more about Chris Lewis Security Services visit www.chrislewissecurity.co.uk or contact: Chris Lewis Security Services, Unit 3, Isis Business Centre, Pony Road, Cowley, Oxford OX4 2RD. Tel: 01865 782444
No comments yet