Subjective opinion
Strictly speaking, the «Subjective Opinion» column debuted last year. But it is presented in an interview format for the first time, so the exclusive interview given to TZ by Vice President for Sales and Marketing of Siemens Security Systems Daniel Vernuccio can safely be considered the premiere of the new column. Ekaterina Guryanova, Director of the company «Protection Technologies», talks with the top manager of Siemens. Daniel VERNUCCIO, Vice President for Sales and Marketing of Siemens Security Systems: «One of the main problems for any manufacturer is adapting their solutions to a given market»
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– What, in your opinion, are the global trends in the development of each segment of technical security equipment? Of course, in each of the segments that make up the space that we call the market for technical security equipment, there is a lot of interesting things that deserve attention, and often detailed analysis. This concerns technical innovations, and the improvement of product promotion mechanisms, and the expansion of tools for shaping consumer demand. But ultimately, all of the above is united by one trend, which is today global in the world market for technical security equipment. I am talking about the use of IT solutions and network technologies in the development and production of technical security equipment. Of course, everything is not so simple, because there are different aspects of the development of the technical component of our market. And yet, I will not be afraid to repeat myself, the global trend is that all systems should be able to connect to a network, when the elements of the system are distributed, and the transfer of information is carried out using universal network technologies. Modern video surveillance systems are capable of transmitting not only the image received from the camera, but also the sound accompaniment of the video image, and it is also quite easy to organize the connection of remote monitoring nodes and control of various processes.
You cited video surveillance systems as an example. Indeed, network technologies have been in this segment for a long time and are developing quite intensively. In others, the growth dynamics do not look so rosy. Yes, you are right. The transition to IP technologies in other segments of the TSB market is somewhat slower, and the market share they occupy is smaller than in the same CCTV. But this is not due to technical problems, but mainly to the features that have regulatory requirements for fire alarms, access control and management systems in various countries. However, network technologies are becoming increasingly popular. Customers are no longer interested in solutions with complex infrastructure, such as connecting each reader to a controller. Today's customer wants a flexible system with centralized management that can be expanded without problems or large investments. Wireless technologies are in particularly high demand. In fairness, it should be said that there are important technical aspects here. After all, if the signal from the detector for some reason does not reach the panel, the system will not work, then there will be a great risk to the life and health of people at the facility. Therefore, wireless fire alarm systems must have a function for confirming the signal delivery. Such solutions are already on the market today, in particular, our company, but their widespread implementation is again limited by the standards adopted in various countries.
It is clear that manufacturers follow market trends. But leaders should still be at least one step ahead. Please provide such examples. Being ahead of everyone is probably the dream of every manufacturer. But no one has succeeded in this to the fullest extent and is unlikely to ever succeed. The competition in our market is very tough, and the only ones who can lay claim to leadership are those who not only invest a lot, but also rationally in new developments and marketing, who offer the market truly professional security solutions. Today, Siemens invests heavily in fire safety. Our developments, which are in line with the leading trends in this area, are technically superior to many systems on the market. The integration of Bewator, one of the world's top ten leaders, has helped strengthen our position in the access control and management systems segment. Siemens strives to be among the leaders in each individual type of system. At the same time, our systems can be combined into a single complex. Here I would like to separately note that we offer the market economically sound and justified Interoperability solutions. By this word we mean the compatibility of various equipment for building a comprehensive solution. We pay the closest attention to this topic today. As for security systems and video surveillance, of course, there are many companies that are ahead of us in one way or another.
Foreign manufacturers on the Russian market: achievements and main problems. One of the main problems for any manufacturer entering a new market is to adapt their solutions to this market. Formulating an offer, even if it is very good and technically perfect, is only half the battle. Any system must be adapted. This is a complex, multifaceted process that requires considerable investment. Judge for yourself: it is necessary (in our case, in relation to Russia) to Russify the interface and software, organize the training and certification of installers, and user training. And there is also such an important point as the creation of a system of warranty and post-warranty service for equipment installed at facilities. All this is the responsibility of the system manufacturer.
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– Mergers and acquisitions are an objective process in global business. Why, in your opinion, has not a single Russian brand yet interested the world market leaders? After all, domestic equipment occupies a fairly large niche in Russia. Naturally, domestic companies occupy the main niche in each market. They produce equipment adapted to local rules and regulations, it is much easier for them than for foreigners to organize technical support. Their products are in demand on the local market. But, you must agree, even all this taken together is not a reason to acquire such a company. The Russian market for technical security equipment is still very young, and therefore the liquidity of Russian brands is still low. This is a natural situation. In our opinion, there are two reasons for acquiring local companies. Firstly, the desire to increase your share of the local market. It is often very difficult to do this directly; it is much easier and more profitable to expand your presence through the acquisition of a strong company in this market. Secondly, a company can be bought if it has developed a unique technology or produces an interesting product that is in demand on the world market. We take both of these aspects into account. When the decision was made to acquire Bewator, Siemens' position in Scandinavia was not strong enough. Our company bought Bewator, and with it acquired 40% of the Scandinavian market that this brand occupied. It should be noted that Bewator had good positions in many other European countries, for example in England. And the second aspect: our company now has a very high-quality product in its portfolio, which is manufactured using the most modern technologies. Siemens has entered the Russian market of technical security equipment relatively recently. We are growing, offering our solutions, which the market perceives very positively. I do not rule out that after some time we will show interest in some Russian brand. When this happens, time will tell.
Mainly, the equipment of leading brands occupies the upper price segment. Do you plan, especially considering the current economic situation, to somehow adjust these positions, for example, to enter the market with budget solutions? Siemens does not position itself in the low price segment. Of course, we have solutions not only for large industrial facilities, but also for small buildings and premises. These are the company's own solutions, which are specially adapted for such facilities. We try to meet consumer demands, economic realities, i.e. offer adequate solutions, including in terms of cost. However, we must not forget: what is more technologically advanced, more functional and better quality will always cost more.
Thank you very much for the interview. What would you like to wish to the readers of the magazine? I really liked the form of information presentation and the design of your magazine. It is created professionally. I would like to emphasize that Siemens works to offer the market modern, high-tech and high-quality solutions. To ultimately make this world safer. I wish you and all the readers of the magazine well-being in the new year. I hope that we will continue to cooperate.
Biographical note
Daniel Vernuccio was born in 1955, a citizen of France. He received a degree in electronics engineering. He is a specialist in software development and automation. He began his professional career in 1979 as a product manager for access control systems in Sicle (France). In 1986, Daniel Vernuccio became the sales director of the American electronics company Westinghouse Security, and in 1995 — general manager EMEA (Sensormatic). His main activity in this position was the development of sales of the division engaged in the promotion of access control systems and CCTV. In 1999, Daniel was appointed sales director in Europe and Africa at GE-Security. From 2006 to the present, Daniel Vernuccio holds the position of Vice President Sales and Marketing for Siemens Security Systems.
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