A customer on crutches threatens a grocery store manager with a
million-dollar lawsuit, contending that he fell on the store’s
premises 35 days earlier.
He is certain that the store’s video surveillance system is an
antiquated, analog-based system that keeps tapes for only up to a
month, so the grocer won’t have pictorial proof to dispute an
older claim. He’s hoping for a quick settlement based on lack of
visual proof, but he’s made a bad decision — the store recently
implemented digital video surveillance which provides high quality
images that can be accessed immediately and retained indefinitely.
The
store can prove the customer’s injury, even if real, did not take
place on its premises and the only dollar loss here is from the
pocket of the opportunist.
Frauds and scams such as the example above are an everyday
occurrence in the retail industry. Customers boldly take items off
of shelves and attempt to return those same items for a refund
during a single vismanager with a million-dollar lawsuit,
contending that he fell on the store’s premises 35 days
earlier.
He is certain that the store’s video surveillance system is an
antiquated, analog-based system that keeps tapes for only up to a
month, so the grocer won’t have pictorial proof to dispute an
older claim. He’s hoping for a quick settlement based on lack of
visual proof, but he’s made a bad decision — the store recently
implemented digital video surveillance which provides high quality
images that can be accessed immediately and retained indefinitely.
The
store can prove the customer’s injury, even if real, did not take
place on its premises and the only dollar loss here is from the
pocket of the opportunist.
Frauds and scams such as the example above are an everyday
occurrence in the retail industry. Customers boldly take items off
of shelves and attempt to return those same items for a refund
during a single visit. Still, by a long shot, simple pilferage
remains the largest source of overall loss in retail. Perpetrators
rely on and still hedge on the limitations of analog video
deployments, which fall short on shelf life, searchability and
image quality.
With the continued adoption of digital video surveillance (DVS)
solutions, many of the traditional shor tcomings of analog-based,
closed circuit television (CCTV) deployments have been eliminated
completely.
What has fueled the accelerated growth in this space, though, is
the realization that DVS “functionality” also provide
enterprise environments with a much broader set of applications and
uses. Take video analytics for example: A marketing depar tment can
now better monitor promotional campaigns and make effective
in-store display adjustments based on analyzing the customer foot
traffic captured on camera.
Overall, what traditionally resided solely in the domain of
physical security or loss prevention has now entered into the
domain of overall company ROI and business analytics
functions.
As with any technological shift, the advent of DVS is changing
organizations internally. New digital system deployments often are
maintained by technologists who treat the images as data and manage
content much as they do all other corporate data. This shift of
infrastructure control from physical security departments to more
centralized information technology department management is the
first step to enjoying the significant advantages of DVS
solutions.
Improved image quality and more effective retention are only two of
the advantages of a digital video solution. Other benefits include
easier remote viewing of video and remote control of cameras, plus
faster search and playback of recorded footage. Other benefits over
the traditional
analog systems include the use of Ethernet or wireless networks to
transmit video; scalable, flexible storage offerings to
cost-effectively maintain large repositories of images; and
integration of video surveillance applications into core business
systems.
The Digital Evolution shift of infrastructure control from physical
security departments to more centralized information
technology
department management is the first step to enjoying the significant
advantages of DVS solutions.
Improved image quality and more effective retention are only two of
the advantages of a digital video solution.
Other benefits include easier remote viewing of video and remote
control of cameras, plus faster search and playback of recorded
footage. Other benefits over the traditional analog systems include
the use of Ethernet or wireless networks to transmit video;
scalable, flexible storage offerings to cost-effectively maintain
large repositories of images; and integration of video surveillance
applications into core business systems.
The Digital Evolution
Currently, up to 90
percent of the surveillance solutions remain partially or fully
analog. Many of these are standalone and proprietary, using closed
circuit televisions to feed images into VHS recorders. The VHS
tapes must be replaced every few hours, and then are stored for up
to a month before being reused. As VHS-based systems become
obsolete and the VCRs themselves are being discontinued, users are
forced into a hybrid solution using a Digital Video Recorder (DVR)
to digitally record video from analog cameras. But these DVRs still
fall short. While they provide higher quality recording and faster
playback, they still tend to be proprietary systems with limited
scalability.
Now corporations and government agencies are moving to an
all-digital component scheme and managing DVS on their information
systems infrastructure, making video surveillance just another
application on their IT networks.
Centrally controlled digital cameras will have IP addresses that
can be monitored by several distinct analytical applications,
enabling organizations not only to enhance existing physical
security, but make more intelligent and even predictive decisions
in sales, marketing and supply
chain systems as well.
THE DVS Advantage
Upgrading to DVS solutions
provide a significant number of advantages:
Major enhancements in image quality provide more precise
identification. A completely digital system will provide the
highest quality video recording and playback. Improved resolution
will support advanced analytics, identity management and access
control initiatives that integrate high resolution video and
biometrics with to match physical characteristics with badges and
network logon IDs.
Megapixel cameras can provide two to 16 times the resolution of
traditional analog cameras. Megapixel cameras can cover a larger
area than analog cameras while providing superior digital zoom
capabilities that show real detail instead of blurred faces.
Better analytics and remote camera control allow fewer security
personnel to monitor more cameras. Instead of struggling to stay
alert while scanning a dozen monitors showing nothing interesting
95 percent of the time, guards can be alerted automatically to
watch cameras detecting motion in a secure area or suspicious
behavior. Remote control of cameras lets security watch and control
cameras all over the world instead of only cameras in the
same
building. Comprehensive monitoring of a facility is no longer
restricted by the human attention span or coaxial camera cabling
limits.
With on-demand recording, digital systems can be configured to
record only when there is motion or some specified action, rather
than recording hours of uneventful video on an endless loop. This
reduces both network and storage requirements while enhancing
security. For example, cameras can be programmed to record only
when a door is opened, an alarm is activated, or a car enters a
garage.
DVS solutions require less manual intervention, since there is no
need for the periodic replacement of videotapes. This not only
reduces time and cost, but also reduces the risk of operator error
causing the loss of critical images, such as by swapping and
overwriting the wrong tape.
DVS solutions are built on scalable, flexible storage. Storage is
no longer limited by the number of videotapes or disks that a
company can manage. Images can be stored on traditional hard drives
when necessary, and virtually otherwise. This storage structure
also lends into detailed
indexing that enhances search and retrieval, with quicker access to
specific images.
Remote accessibility is a core benefit of a DVS solution, in that
images can be accessed from any secure computer or
workstation in the network, even via wireless connectivity.
This enables management to respond to alarms anywhere and remotely
monitor activity. It can also allow remote viewers to control
functions such as a gate or electronic lock. Normal network and
application security protect access to surveillance footage in the
same way they protect
all other remote data.
Customers remain, however, in a wait-and-see mode regarding full
implementation of DVS solutions. Business Reports plan to implement
a full DVS solution within one year, but the rest are still
waiting.
“In first-generation video surveillance, 95 percent of recorded
video is never viewed again,” according to John Kim, Senior
Alliance Manager of Content Storage for Sunnyvale-based storage
hardware provider Network Appliance Inc. “If something happened
the video would be reviewed after the event but only if the event
was noticed before the tape was recycled. A guard can watch around
the corner without being around the corner, and that’s all.
“Second-generation video-surveillance can be used to reduce
crime, reduce liability risk, and discourage lawsuits
by detecting problems as they happen,” he further explained.
“Third-generation can do all that plus improve traffic-flow,
assess merchandising activities and make employees more efficient
by monitoring the impact of employee training.”
The new capabilities provided by DVS are useful in conducting the
primary function of video surveillance, which is watching remote or
high-activity areas from a central location. They also offer
important advanced capabilities not available in traditional
systems.
“Information from video is being utilized for other purposes —
operations, marketing, merchandising, training, and business
intelligence,” according to Marty Yost, Loss Prevention Program
Manager, Retail Sector Services, IBM.
Readying for More, Robust Applications
A
digital video solution can take a traditional approach, such as
electronically sending snapshots of an intruder or an evolving
incident to law enforcement. It is also possible to authorize
outside entities to log onto cameras and view activities directly.
A system can generate alerts and send
them directly to direct response points. This functionality,
coupled with superior imagery, longer term retention and advanced
indexing, dramatically improves security. Intelligent software can
identify suspicious behavior such as a bag or suitcase left
unattended, a vehicle parked for
too long in one spot, or the difference between friendly
interaction and a violent altercation.
There are additional ways to leverage DVS solutions throughout an
enterprise. Systems can be used to monitor customer traffic and
assess the effectiveness of in-store advertising. How many
customers view an advertisement?
And for how long? DVS technology enables real-time assessment, as
well as archived activity, which is then
obtainable through normal corporate security credentials.
The same remote access that enables users to view images from
multiple locations can allow for even more
marketing and promotional granularity. Different stores with
different displays can be analyzed concurrently,
allowing supply chains to respond more quickly with added or
reduced product as needed. Using DVS capability
to execute various simultaneous pilot studies is a high-value
marketing tool that has not been possible with
conventional surveillance tools.
Multiple departments can access archival digital video on-demand to
analyze past events, and make better decisions
based on higher-quality images and rapid retrieval. DVS output can
also benefit operations; monitoring the flow of
materials and how products are handled can provide important
insights into inventory control and distribution.
Thus management processes can be improved, and employee training
can be significantly enhanced.
Figure 2, with results culled from the same Larstan Business Report
survey, clearly demonstrates that a
majority of executives perceive the value of DVS beyond standard
surveillance activities.
Source: Larstan Business Reports
DVS Means Convergence (Not Confrontation)
Two core aspects of video surveillance change during digitization
and networking. First, DVS is no longer a standalone proprietary
system, but part of a broader IT-based strategy. Second, it
migrates from control of the physical security staff to the
information technology group. This is certainly not the first
convergence of technology; however, the impact of video
surveillance migration from the unquestioned control of physical
security to IT will have organizational ramifications and can be an
obstacle toward implementation. Resistance may come from both
sides.
When IT hears the term “video,” staffers immediately think of
streaming video and its corresponding huge files clogging precious
network bandwidth and filling up storage at an alarming rate.
Although compression and intelligent video management techniques
reduce the volume, it is still substantial, based upon an
organization’s corporate requirements, and requires attention and
resolution. However, the bottom line for IT is that a DVS
solution does add more nodes to the network, as well as additional
computational and storage requirements (although not necessarily
more devices), so it needs to become involved — and sooner rather
than later. In most ways, DVS becomes another application enabled
by the
network and operationally managed by IT.
The impact on physical security will be more dramatic.
“Historically, the video surveillance guys were at the top
of the pyramid.
All of a sudden, they become data entry clerks for all of the DVS
features and functions. Video can be viewed in real time, the role
has changed,” according to Len Johnson, a digital media solutions
specialist with the I BM Systems and Technology Group.
However, even physical security will benefit from DVS solutions
since personnel can now respond more quickly to events as they
unfold. Physical access also improves through better imaging than
analog provides. Having a “better picture” provides fewer false
alarms and allows security to be more efficiently deployed on site.
Improved image quality can also be valuable in investigating a
crime.
Most organization issues can be mitigated by having IT and security
work together in building the new system.
Physical security will retain a critical role in risk assessment
and in deciding how video surveillance plays into the larger
security environment. These are core competencies which will be
enhanced, not eliminated, by implementing a full DVS solution.
However, this is a story that may not resonate with all security
departments.
Raising ROI Expectations
There is little
argument that DVS will initially be more expensive than traditional
analog systems. It requires investment in back-end systems that
might include servers, increased storage and analytic software.
Digital cameras can add to the expense, but digitizing video from
analog
cameras may be sufficient for many installations. However, the
return on investment (ROI) rests not with the costs, but
with the enhanced value of the data created.
“Customers are beginning to see the value of this capability,
which will change the dynamic from needing surveillance because it
is an industry standard or is required by the government, to
wanting it because there is a business reason and business value to
having the data,” IBM’s Johnson said.
A convenience store which has experienced shoplifting losses of a
few hundred dollars a year cannot justify the expense of a DVS
solution; however, a retail chain that escapes a single lawsuit of
$500,000 annually by investing $1 million in a DVS solution will
find the ROI very
attractive. Loss prevention in retail can easily justify this
expense as well. Homeland security and other government agencies
that utilize the technology to identify and prevent a potentially
serious event, whether in criminal investigations or terrorist
activity, have an infinite return on investment — as well as the
gratitude of a nation kept out of harm’s way.
Companies applying this video data outside of security will not
only increase their value and turn these images into a corporate
asset, but they’ll also offer various channels for financial
compensation by spreading the investment across several
departments’ budgets.
Marketing, for instance, may be willing to share in the overall
expense if they can monitor pilot studies in product placement. The
same goes for supply chain and other operational divisions.
ROI also will vary by installation. New buildings often find
setting up a total digital video surveillance system to be more
direct and require far less cabling than an analog one. These
savings often offset the premiums paid for digital equipment.
Installations that require remote video capture monitored from a
central location will also provide a high return. Contrarily, a
retrofit or replacement will not have these initial cost offsets.
In these cases, it is fundamental to assess the corporate value of
the video images to justify a DVS acquisition. The higher the value
of the video, the quicker the return.
Impact of DVS on Storage
Equipment costs and
operational reorientation are two important hurdles a company will
face when installing a DVS system. When executive were asked what
issues, beside cost, created potential obstacles to DVS
implementation, increased storage requirements ranked
highest.
The estimated increased demand of DVS solutions on storage
certainly has cost and management ramifications, but it also
provides a distinct opportunity for companies that offer storage
solutions. Figure 4 suggests that maintaining the DVS video stream
is expected by most managers and executives to increase their
storage burden by more than 10 percent. Almost a third expect
storage needs to grow by more than 25 percent.
The rate at which video images accumulate will drive demand for
storage that is scalable and flexible.
“DVS is just another infrastructure application — another piece
of a larger IT puzzle. The technology focus is less on the
front-end and more on the back-end functions of data transfer and
data management and with integration with other end points of an IT
system,” according to Jim Sara, Global Services Alliance Manager
for IBM, a major systems integrator.
Opportunities Abound
DVS is still in its
infancy but showing great potential for rapid adoption. Industry
analysts at Frost and Sullivan project this market to be worth
$6.49 billion by 2012.
Datamonitor estimates that market is growing at a compound annual
growth rate (CAGR) of 50 percent. Anticipated key areas of growth
are hardware (especially servers optimized as network video
recorders), business analytical software, storage and
integration.
Products that can extend the capability of DVRs through direct
offline storage may provide enough additional flexibility and
management for many smaller implementations with lower-value video.
That brings up the issue of open systems. Video surveillance
traditionally has been provided using proprietary equipment. There
are still products offered into the DVS market that are not fully
compatible with open systems; thus, they run
counter to DVS as a complete network application.
But for those that do jump in, enthusiasm is growing for the
technology’s use in intelligent analytics, sometimes referred to
as Business Intelligence (BI). Users can benefit from solutions
providing such advanced capabilities.
Though many offerings come from a highly fragmented market of
primarily startups, the user community can expect the best
cutting-edge technology to be absorbed by major market
players.
For the time being , however, enterprises have numerous avenues for
integrating new or upgraded DVS solutions into their
infrastructures. Such integration traditionally has fallen under
the pur view of security system integrators, now striving to
reinvent themselves as IT- capable in order to suppor t DVS.
However, the migration from a physical to IT application is
changing the type of integrators from which companies may choose.
Figure 5 illustrates the growing acceptance of non-security system
integrators among executives planning a DVS installation.
Less than 18 percent of executives would consider using a standard
security integrator to install their DVS solutions.
“Information from video is being utilized for other purposes —
operations, marketing, merchandising, training, and
business intelligence.” —Marty Yost, Loss Prevention Program
Manager, Retail Sector Services, IBM
