As one of the major OEM/ ODM video surveillance companies in Taiwan, DynaColor started out as a provider of automatic optical inspection (AOI) devices to CRT and LCD manufacturers, used to examine and test for defects and/or abnormal activities in their products or during the production process. Aside from its AOI devices, the company also made CRT monitor auto alignment systems, multiplexers, and DVRs used in various applications such as government, retail, and school systems. DynaColor then proceeded to produce PTZ speed domes. Leveraging the company’s expertise in software design and its powerful R&D team, DynaColor was able to succeed in launching network cameras and recorders.
As one of the major OEM/ ODM video surveillance companies in Taiwan, DynaColor started out as a provider of automatic optical inspection (AOI) devices to CRT and LCD manufacturers, used to examine and test for defects and/or abnormal activities in their products or during the production process. Aside from its AOI devices, the company also made CRT monitor auto alignment systems, multiplexers, and DVRs used in various applications such as government, retail, and school systems. DynaColor then proceeded to produce PTZ speed domes. Leveraging the company's expertise in software design and its powerful R&D team, DynaColor was able to succeed in launching network cameras and recorders. The series of advancements highlight the extremely technology-centric qualities of the company. As a publicly listed company, DynaColor strives to maintain its products, quality, and innovation.
Though the company suffered during the financial crisis, DynaColor survived when most companies would have folded. The company stood its ground and managed to remain in the Security 50 ranking of industry players who excelled despite tough economic circumstances. Instead of faltering, DynaColor toughed out its setback and came out strong in 2012.
Anthony Yeh, VP of DynaColor, revealed that an astounding 40 percent of the employees at DynaColor are in R&D. Among those R&D staff, 50 percent are devoted to software development. Their strong engineering background gives DynaColor a boost in overcoming the most challenging times. Flexibility is always key for the company to stay on top. According to Yeh, DynaColor plans to remain as a professional OEM/ODM company because they are highly confident in its business model and development capability. Also, brand marketing requires massive resources, both financial and physical.
Growth in IP
DynaColor stepped into the IP market relatively early around 2003 and produced its first network camera with H.263 compression. However, the market for IP video had not been fully matured, with very few companies developing IP products. Hence, DynaColor decided to take a step back to focus on its production of embedded DVRs. During its hiatus from IP development, DVRs became the main source of revenue for DynaColor, making up 60 percent of its production.
DynaColor decided to take a second shot at the IP market in 2008. That year, they produced around 50,000 IP cameras, five times the amount produced previously. The IP production rate continued to increase through 2011 and 2012. In 2012, 49 percent of DynaColor's products were IP cameras, followed by PTZ speed domes at 33 percent, and DVRs at around 12 percent. Some DVRs are enhanced with network functions, and these hybrid DVRs are capable of supporting both network and analog cameras. The remaining are high-end DVRs which record and play back D1 resolution in real time with local display.
According to Yeh, 80 percent of the company's productions were IP products in 2012, a 30 percent increase from its IP products manufactured in 2011.
Customer Oriented
Clients tend to make orders in small quantities but with various products, which can add to production costs. To solve this problem, DynaColor tries to minimize the differences between its product models and delivers product parts with the most efficient logistics possible to balance production costs. Having that flexibility allows the company to provide clients with the option to customize their orders and standardize their products.
As for traditional clients who are more accustomed to analog cameras and products, DynaColor has a NVR and IP camera solution for traditional four- to 32-channel players that are PoE, plug-and-play, single cable, and requires minimal configuration, making it easier to use and install than analog systems. A prime example is DynaColor's affordable H.264 NVR, able to support 1,080p real-time recording, dual streaming, and full-HD display. Additionally, the NVR integrates a PoE switch, which helps network cameras to be plug-and-play during the installation. It is designed for entry/middle-end surveillance markets such as schools, convenience stores, gas stations, and communities. Since network cameras could be discovered automatically, technicians will not need to have extensive IP-related knowledge or experience to complete the installation.
Future Direction
DynaColor plans to remain in the OEM/ODM business. The company is looking to increase its sales revenue to achieve at least double-digit growth for this year. Along with the new year, DynaColor is also preparing to launch a series of new products, such as plug-andplay NVRs for professional and economical recording applications, as well as network cameras with higher megapixel support and embedded video analytic functions. Even though DynaColor suffered annual revenue decrease in 2011, the company has since bounced back better than ever.