Making the Distributor Cut
Product management from the distributor perspective does consider end-user demand, along with regional factors. “The supplier has to provide a solution that is good for our customer base; it has to add value to our installer solutions and be a good fit for the market,” Pigram said. “Product management is not just about products — it's really about the market.”
Along with identifying a market niche, a manufacturer needs to provide market support to its channel partners, such as marketing and demand generation. Services such as presales support are needed, as well as postsales support, depending on how technical the products are. “As a distributor, we can help provide many of these services, but it's important to engage well with the supplier, especially if it's an overseas supplier,” Pigram said.
Depending on the vendor, distributors may provide their local training and support, or just help with logistics. Each vendor has different requirements, meaning each party discusses their expectations early on.
Lastly, there needs to be a financial incentive for a distributor to take on a new supplier. Price point is one factor, along with a clear product management strategy. “The product and supplier have to be financially sustainable for us,” Pigram said. “Their proposition has to be a good fit with our long-term strategy. We don't want a manufacturer that chops and changes direction. We need them to be reliable for supply and focus on our market.” Norbain has significant reach in the U.K., serving 5,000 customers. Of those customers, 80 percent of them have done business with Norbain for more than five years. “We feel our investment and our customers' investment should last years, certainly not weeks,” Pigram said.
Out of Stock
A product's end of life (EOL) must figure into product management. While it is inevitable that wear and tear will require replacing a product, a long-term migration plan eases the transition from old to new.
Microsoft is a textbook example of user frustration for EOL management. Its Windows 98 operating system was scheduled to sunset in 2006 — subsequent software releases of Microsoft Office 2007 did not support Windows 98, requiring users to upgrade. These upgrades create backlash, particularly “forklift” ones that made customers feel cheated.
Obviously, the hardware life cycle differs from software. It depends on spare parts, as availability affects price. Once parts can no longer be supplied — often after production ends for a certain line — the cost increases. Product EOL planning should consider enhancements, cost reductions and new target markets, Cremins said.
A discontinued product line results in one of two things. First, the vendor is replaced with a comparable and compatible third-party product. Another option is to go with the original maker's succeeding solution. “Most manufacturers do this pretty well, because any popular product is normally superseded with a better-performing product,” Pigram said.
Analog video surveillance equipment is relatively simple to upgrade. “You could replace the DVR or switch a functional dome or fixed camera in the majority of cases,” Pigram said.
IP-based solutions offer benefits over analog, but represent a significant investment for users with legacy equipment. “It's inevitable that demand for IP-based systems will continue to grow, but that does not mean that all existing analog systems are outdated and need to be replaced,” Ainsworth said. “We are, therefore, continuing to support analog-based systems and provide users with the option, for example, of hybrid solutions.” Another option is HD-SDI cameras, offering full HD video over analog cabling.
IP replacements are trickier due to compatibility issues, which require interoperability testing. “The good news is many VMS solutions are software-based, so that installers can add, change or replace products or brands as upgrades,” Pigram said. “That's one of the benefits of more software-based solutions with maintenance agreements.” Product migration is always painful, but thoughtful product management can make the transition easier with successive improvements.
Future-Proof
Forward scalability means product management has done its job. From the product's inception to its EOL, a long-term mindset translates into a better rapport with channel partners and customers. A few ways to offset future replacement headaches are developing a migration path, forming third-party partnerships and complying with standards.
Staying abreast of technology developments is one way to develop products with migration in mind. This can be anything, from the rise of smartphones in the consumer space to the potential of the cloud for IT applications. “Video surveillance has always taken core technology from other industries,” Pigram said. “It's quite different to understand technology and to deliver solutions. IT may have technology, but video surveillance applies it quite differently. The technology is not different, but the pace of change is quite fast.”
Strategic partnerships will further extend a product's shelf life. This can be hardware manufacturers supporting key VMS platforms, or other partnerships that are mutually beneficial. These relationships ensure customers can invest in a video surveillance system that can be expanded or upgraded with new technologies in the future, Ainsworth said.
Interoperability standards are the next level of partnerships, creating a guideline for members to observe. While the present iteration of standards is imperfect, the dominance of ONVIF is notable for its sheer numbers. It does not support all member features and is presently limited to display, but it is a welcome alternative to no standard at all. “Samsung is a member of ONVIF, and we fully support its objective of providing customers with a flexible choice,” Ainsworth said.
At the end of the day, product management comes back to market needs. “Being able to offer a migration path requires a full understanding of the overall customer application in how they are deploying solutions today and what they will want tomorrow,” Cremins said. “It requires developing a full, end-to-end solution that is backward compatible and can easily be integrated into. Our experience has been that customers maintain solutions for years but still want to be able to add on new solutions and have them all work together seamlessly.”
Product management is a holistic approach to assessing customer problems, solving them and then phasing in improvements once products reach their expiry date. The top priority is always delivering solutions with real value.