A comparison between the implications that electronics had for cash registers and the ongoing shift to digital, IP-based video surveillance.

2. A shift is currently taking place in the video surveillance industry…

3. … from analogue cameras…

4. … to digital cameras that are connected over the internet.

5. Even though only
15‐20 percent of the
p
market is digital
today, this shift has
already created
some turmoil…

6. … The game is changing and new companies are increasingly
dominating the surveillance industry…

7. … and the established analogue players have so far not really managed
to capitalize upon this new technology.

8. One reason for this would be that those
One reason for this o ld be that those
firms do not command electronics.

9. This was the main problem for the
manufacturers of mechanical calculators
of mechanical
which collapsed in the early 1970s.

10. Many
Man companies in the camera ind str
in the camera industry
encountered similar problems.

11. But this comparison is not 100 percent accurate.

12. After all,
After all
Cameras and
calculators
function as
as
individual
units th t
it that are
not
connected to
each other
other…

13. … Whereas surveillance cameras are connected to each other…

14. … And monitored together from a central point.

15. In that sense, the shift to IP‐based video has more in common
with the shift f
ith th hift from mechanical t l t i cash registers.
h i l to electronic h it

16. Mechanical
M h i l cash registers functioned as individual units, which added
h i t f ti d i di id l it hi h dd d
things up, produced a receipt and registered the total amount of
transactions each day.

19. With the shift to electronics, cash registers became interconnected. All
machines could be controlled via a central master unit…

20. With the advent of personal computers later on, the value of having a
network of cash registers increased even further.

21. Hence, value was
created for the
customer on a
more systemic
level, where
electronics
enabled an
easier and more
intelligent
management.

22. This also
implied that
the value
the value
proposition
in the
industry
changed
with the
ith th
new
technology.

23. In that sense, the shift to electronic cash registers has a lot in common
with the ongoing displacement of analogue surveillance.

24. Internet‐based video surveillance offers an easier
monitoring and an increased scalability.

25. More cameras can be attached to an existing
network and it is much easier to handle large systems.

26. Therefore, in order to survive, the analogue players do not
only have to renew their technical competence.

27. Video Surveillance will become a
warzone
How to compete
They also need to change the way that customers are approached, and
the value proposition they bring to the market.

28. Evidence f
E id from the cash register industry
th h it i d t
suggests that this is not an easy thing to do.

29. Christian Sandström is a PhD
student at Chalmers
University of Technology in
Gothenburg, Sweden. He
g,
writes and speaks about
disruptive innovation and
technological change.
technological change
www.christiansandstrom.org
christian.sandstrom at chalmers.se