ESX Chairman's Address - George De Marco
Good News; Bad News?
By Chairman George De Marco
In the business world, any reference to “what keeps you up at night” might carry a negative connotation. From lack of sales, poor employee morale, payroll, customer complaints, and fierce competition, to a shortage of quality employees, business owners are constantly bombarded with issues that keep them tossing and turning at night.
Now that Amazon is entering the fight for the smart home, what will this mean for traditional security companies and integrators – more sleepless nights? What advantages does the company think it has over the existing players in the market?
Amazon is known for changing industries which are ripe for disruption. They are attracted to business categories with proven demand and potential for high growth. One could argue that the estimated value of the smart home industry in the short term is lower than this behemoth is used to; however, the potential for exponential growth in the long term is very appealing.
The real trick for tech giants, telecommunications companies and cable operators is to design a scalable business model using low-cost and appealing technologies for the mass market, while providing the labor to support it. So far, most consumers still find installing security and smart home devices too complicated, hence the need for a substantial labor force to help drive adoption.
With Amazon buying Ring, the deck has clearly been reshuffled. Security companies and integrators still own a substantial piece of the existing customer base; however, these traditional providers must defend and grow the market before the tech giants gain traction and scale.
The new battleground for the smart connected home is in next-gen technologies and the Support of Things (SoT). Companies that offer a suite of consultative and support services for consumers and develop a compelling operating model have an opportunity to gain a fair share of the market. Those that do not will be faced with bad news.
In addition, traditional companies must do a better job of analyzing data. Access to usage and performance-level data will provide a much richer understanding of the customer’s expectations and experiences. In other words, focusing on the consumer to deliver a hyper-personalized experience may transform their customer life cycle and inspire advocacy.
While the security industry still has a strong position as a highly trusted provider with consumers, it’s becoming more fragile. The challenge for the industry is to remain relevant by pivoting to a highly personalized experience, focusing on analyzing, communicating and serving.
The battle lines have been drawn. Tech giants have the technological edge, but security companies and integrators have a head start on the existing customer service infrastructure. The provider that can properly execute on the delivery, installation, activation and maintenance for the consumer in a seamless experience will emerge winning the battle.
Join us at ESX in Nashville to learn more about the changing competitive landscape and how to develop a meaningful battle plan that will help you sleep well and prosper.