MEASURING ROI
System ROI is not easy to measure, especially when businesses are not aware of the inefficiencies or risks they are facing in the first place. “For example, one customer who approached us realized his operation was suffering from more losses and it coincided with a gradual drop in productivity,” Lim said. “He had tried many productivity programs but did not get any improvement.”
After the customer rolled out a cleverly designed suite of security systems, there was increased accountability in processes, visibility in operations and staff attendance. “Not only did the inventory losses decrease by 50 percent, the productivity from better staff attendance coincided with a 3-percent increase in overall operating margin,” Lim continued. “Who would have thought that security systems could increase productivity? However, in many cases, security systems discourages bad habits and practices in business operations.”
ROI is often measured though space returned to the business in dollars per square foot; system infrastructure cost reductions such as unneeded PC workstations, server rooms, phone stations; and system maintenance cost reductions, said Aaron Kuzmeskus, Director of Security Channel Development, Buildings Business, Schneider Electric. “In addition, there can be many soft savings as the result of faster response times with better information to help prevent an event, or greatly reducing an event's impact to the business.”
Operational efficiency can only be measured when objectives are met first. “In many cases for video analytics implementations, we realized that there is no comparison, as a human guard would have missed many things on a regular basis due to fatigue,” Lim said.
Marching Toward Efficiency
The inevitable trend for industrial applications is the movement towards energy efficiency and sustainability, said Jiangong Ding, Industry Director for Hikvision Digital Technology. “Digital surveillance and security systems are one of the most powerful enablers for this capability. Through technology, it is possible to reduce resource consumption and pollution, which leads to more efficient management and better operational efficiency with less reliance on manpower.”
Megapixel cameras and intelligent, integrated systems make it possible to have a comprehensive management platform, which provides support for further growth within the industrial sector, Ding said.
Industrial sites will continue to have strong demand for security and safety systems, due to the critical resources and services they bring to the market as a whole, said Gary Tan, APAC Head of Systems Solution Group, Bosch Security Systems. “Moving forward, IP-based solutions and fully integrated security systems will become a growing trend. In two to three years' time, there will be stronger demand for intelligent central management systems that integrate all the key subsystems, including the security system, and more application interfaces with automation control functions. This will mean the staff of such plants will need to be of a higher level and be trained to operate and maintain such intelligent systems.”