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Uncertain Times Can Bring New Opportunities

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Uncertain Times Can Bring New Opportunities

  1. 1. Uncertain Times Can Bring New Opportunities Presented by: Junaid I. Ahmed National Sales Manager ADT Security Services, Pakistan On behalf of: Mr. Mark Norton Vice President Sales & Marketing ADT Security Services APAC 2009 Security Industry Outlook
  2. 2. Preparing for New Opportunities In the coming year, the world‘s economic downturn will dominate the headlines. Companies everywhere and in just about every industry, including security, must conserve cash, use capital more efficiently and get more out of shrinking resources 2009 Security Industry Outlook
  3. 3. Security Industry, the downturn will also bring New Opportunities 2009 Security Industry Outlook
  4. 4. Worldwide trends that shape demand for security solutions • Rising Crime in Hard Times • Emerging Market Growth to Continue • Globalization keeps shrinking the World • IT convergence to drive Systems Integration • Innovative, cost-effective applications & managed services 2009 Security Industry Outlook
  5. 5. Rising Crime in Hard Times • Crime rises as GDP falls • In the US, the last four recessions going back almost 30 years showed upticks in crime starting at the bottom of each recession • Current downturn will be longer & deeper than any since the 1930s and last into 2010 • Create growing demand for “peace-of-mind” across both residential & commercial security market • Those who do spend are certain to be more price sensitive than ever 2009 Security Industry Outlook
  6. 6. Stress the value of protection and peace-of-mind over their cost Residential markets- Value is tied more to emotional than financial benefits Commercial markets- Value can be tied more to financial benefits associated with reduced risk and lower insurance cost 2009 Security Industry Outlook
  7. 7. Emerging Market Growth to Continue • Developing economies as a whole will grow 6% in 2009 compared to zero growth in the developed world* • 6% growth is much less than the blistering growth rates of emerging markets in recent years • It is hardly the negative economic growth that define a recession • Continued migration of rural populations to urban areas • More than 50% of people worldwide now live in towns or cities- First time in human history** • It estimated that 93% of urban growth in the future will occur in Asia & Africa • By 2050, over 6 billion people, or 67% will be living in towns or cities** *The Quarterly World Economic Outlook, published by IMF-released in October 2008 ** UN-HABITAT 2008 Annual Report2009 Security Industry Outlook
  8. 8. With Continued economic growth comes a growing middle class and with urbanization comes more crime, so despite the world economic crises today, need for security of people and property to grow throughout 2009 and beyond 2009 Security Industry Outlook
  9. 9. Globalization Keeps Shrinking the World • IMF predicts that world trade volume will grow 4.1% • That means goods will still on moving around the planet • Goods-on-the-move are always an enticing targets for criminals • Internet Protocol(IP) continues to reduce distance & allow for more centralized management of security systems • IP video and networks can render borders and distance meaningless presents an enormous opportunity to upgrade security infrastructure worldwide to be more interconnected 2009 Security Industry Outlook
  10. 10. Globalization also spawns a growing need for global standards, which will further develop in 2009, the facts is that standards help drive down costs. So global security standards are ultimately good for companies by enabling them to mange security across borders in more cost effective ways 2009 Security Industry Outlook
  11. 11. IT Convergence to Drive Systems Integration • Future of IT belonged to systems integrators • World’s IT infrastructure was heavily proprietary, just as much of the world’s electronic security infrastructure is today • The integration of IT and physical security, while nothing new, will accelerate • Acceleration is due in equal parts to technological feasibility, performance enhancements and cost- reduction imperatives • Commercial security issues will continue migrating to wider operational and even strategic intra-company discussions 2009 Security Industry Outlook
  12. 12. Ultimately we see more and more demand for security solutions to go beyond just IT convergence to convergence with business processes. A video application for logistics involves IP video scans of packages and their barcodes. This application captures the date, time and location of the package along with its bar-coded waybill data as it moves through various check points enroute to its destination 2009 Security Industry Outlook
  13. 13. Innovative, Cost-Effective Applications & Managed Services • Deployment of innovative security applications that incorporate new technologies as well as not-so-new technologies in fresh and more cost- effective ways • RFID, a technology invented 60 years ago finding its way into practical item level, instore deployment to help retailers better manage merchandise inventories and prevent out-of-stock situation • Another major trend is security integration with web-based services also known as “Web 2.0” in both residential and commercial security application • Thanks to wireless broadband, will enable users to more actively participate in their security rather than passively awaiting an alert to some threat • Asset tracking, another example, can help authorities locate stolen goods • With advanced integration users can set preferences for alerts to be delivered as text, images or video to their mobile phones, PDAs or any other electronic means 2009 Security Industry Outlook
  14. 14. Our industry can expect to see more and more companies consider shifting their security operations from in-house to external resources. These managed security services can be customized from hybrid solution located on a company’s premises and using its own off-site solution that provide comprehensive and tailored protection 2009 Security Industry Outlook
  15. 15. Conclusion • Long term prospects for the security industry are good for all reasons already mentioned • While 2009 will certainly provide just about all parts of the world and just about every industry with economical challenges, underlying trends may slow down, but they will go away • Many world-dominating companies were launched during recessionary times • Security providers can take heart that despite the headwinds our industry faces in 2009, Opportunities still exist 2009 Security Industry Outlook
  16. 16. Thank You! 2009 Security Industry Outlook