This article originally appeared in the March 2024 issue of Security Business magazine. Don’t forget to mention Security Business magazine on LinkedIn and @SecBusinessMag on Twitter if you share it.
Growth is essential to every business. It can be measured in revenue, headcount, or clients served, but it is also measured in how a business develops, evolves, and contributes.
Growth is key to success, but it is not easy – there is commoditization, global chaos, and competition at play in the regional and vertical markets that integrators need to address skillfully. No matter how a business defines or manages growth, having the right partners and internal know-how can make the challenge easier.
How is growth achieved? For security integrators, here are four popular ways:
1. M&A: Sophisticated, well-capitalized businesses may grow by acquisition. Our industry has seen a considerable amount of M&A activity over the past five years, as small businesses become regional businesses and regional businesses go national.
2. New offerings: Security systems integrators of all sizes seek to capture growth by guiding existing and prospective customers toward fresh, new offerings, including hardware and software security solutions and, of course, service contracts and subscriptions. Systems integrators challenged to capture growth and mitigate risk should consider scalability and agility. As software applications become easier for end-users to deploy on their own, and as digitally-driven solutions extend the life of hardware, progressive systems integrators are shifting their focus.
3. SME status: Of course, becoming a trusted, go-to integrator requires more than selling a customer new products. It also takes staying up to date on the issues and changes facing the industry, digging deep to identify and solve evolving customer needs, and developing a rich knowledge base about advanced technology, integrated applications, installation techniques, and compliance. In other words, being subject matter experts.
Leading integrators can distinguish themselves by developing specific expertise in interconnected systems and network security, providing consultative and training services, and designing complex, customized security solutions.
4. Leverage partnerships: Strong partnerships with manufacturers and distributors also provide an edge, as they open more bandwidth for design and support and simplify communication.
Application engineering and systems integration should go hand-in-hand. As integrators learn the characteristics of a region, vertical market, and their customers’ operations and expansion plans, they share observations with partner resources, who then charge R&D teams to address the identified needs and challenges.
Not only does this partnership require trust and a close working relationship, but it yields near-term and longer-term advantages to all participants. It also advances the de-commoditization of security and access control solutions.
Recovering from the headaches of supply chain issues during the height of the pandemic, manufacturers are now returning to much closer to “normal” lead times. Brands with the scalability and connections to offer alternative solutions proved to be the most valuable partners for helping integrators manage through the crisis. That is why forging strong relationships with manufacturers that possess such nimble capabilities is more important than ever.
Combating Commoditization
The forces of consolidation and extension will continue to occur, and there will be a blurring of what were once distinct lines – as convergence, conflation, and commoditization combine to influence the business and technology of systems integration in North America. These forces pose potential risks to growth-oriented businesses, and this risk needs to be recognized and strategically addressed.
By capitalizing on innovation and being a trusted advisor, systems integrators can be a counterforce to commoditization. This is important since commoditization presents a risk not only to the integrator but also to the end-user who sacrifices quality and interoperability for a lower-priced commodity.
If every watered-down system ends up being the same, then integrators essentially become uniform. On the other hand, imagining new applications and customized approaches for deploying innovative technology creates greater potential for differentiation and growth.
Other Growth Avenues
Sustainability: Sustainably-made solutions and products are in higher demand from industries like design, construction, and security. That means knowing about the carbon footprint and health impact of product ingredients and how responsibly things are being made, packaged, and delivered. They expect transparency in the form of documentation and third-party certifications to back up sustainability claims. Systems integrators in tune with these expectations can also provide extra value.
Commissioning and support: Rather than hand off a product and hope for the best, systems integrators must establish client relationships founded on value and mutual trust. That often means having comprehensive professional-grade commissioning and support services to back up the sale – critical elements that yield ongoing repeat business.
Training: Security systems such as door solutions and electronic access control are sophisticated, specialized, and ever-advancing, which means that training and continuing education are essential to building expertise and being a highly successful systems integrator. In addition to product, there is also the need for comprehensive training on compliance issues and codes in what is a complex and dynamic market.
Systems integrators who look to capture growth consistently enroll their teams in programs to stay current on industry and technology trends, installation techniques, and the valuable experience other participants are usually happy to share.
Angelo Faenza is head of U.S. Digital Access Solutions for ASSA ABLOY Opening Solutions Americas. www.assaabloydss.com
