Focus on the Future
What Happened to these Companies?
As we examine the growth of companies in our industry it may be wise to look at the past experiences of a few well-known companies in other industries. Kodak, Motorola, Sears and Blockbuster Video should be well recognized examples.
Today, 2 of these 4 companies are out of business. Blockbuster, like many companies ignored the opportunities presented by the rapid growth of the World Wide Web in the 1990’s and early 2000’s. In 2000 a little-known company, Netflix, offered itself to Blockbuster as an acquisition. Blockbuster declined the offer. Blockbuster filed for bankruptcy in 2010. As of October 2017 Netflix, had 109 Million Subscribers Worldwide. In 2016 Netflix generated more than $8.8 billion in revenue in the United States alone.
Kodak was the World Leader in 35mm film photography but is out of business today. Digital Imaging and the internet crushed the consumer film industry.
Motorola revolutionized the mobile phone industry with the flip phone. Although Motorola is still in business today they effectively disappeared from the mobile phone market for several years and Apple became the world leader in mobile phone technology and sales.
There was a point in time when there was a Sears catalog in virtually every household in America. Today Sears is struggling to stay in business. Has anyone looked at the value of Amazon stock lately? The challenge today is that technology is changing far more rapidly now that it was 25 years ago. Our fall conferences in both 2017 and 2018 are focused on emerging technologies that offer security dealers unique opportunities for growth. The ability to offer new products and services at reasonable cost to dealers and customers represents a big win for both. Based on a wide variety of industry marketing studies the benefit of these products and services for dealers are increased average RMR per customer, increased customer retention and increased company valuation. Including cloud computing as a part of your overall operational strategy adds an interesting dynamic for your business as well. The potential exists to reduce infrastructure and software cost while at the same time making them both more predictable going forward. With fierce competition for hardware installation revenue in the marketplace the revenue and profit advantage presented by “Blot On” RMR products and services have become increasing attractive to dealers across the country.
Homer Enriquez, with Kantech-hattrix brings 20 years of physical security and access control experience to our October 2018 fall conference. Homer will be discussing the profitability of hosted and managed access control RMR solutions and end user benefits. Additionally, he will explore the impact that emerging technologies will have on cloud technology. These technologies are simpler than ever to deploy and help dealers drive down operational cost.