By Steven Webb, Vice-President - Aerospace, Defence & Security

Introduction

Convergence is happening across industries and markets at great pace and the security sector is no different from other infrastructure related markets such as energy and transportation. As city populations and GDP continue to rise through urbanisation, so does the threat level, with increased populations leading to anonymity and the prevalence and clustering of high threat targets presenting terrorist groups with attractive opportunities. The current slowdown in the world economy has led to an increase in crime against a backdrop in Western economies of a reduction in police force headcount. This makes the role of technology increasingly important in ensuring a Safe City environment.

The emergence of smart technology is driving the creation of Safe Cities. Vast communication and sensor networks across cities enable law enforcement and other government agencies related to citizen safety to gather greater quantities of data, interpret it and react effectively. Greater interoperability allows technologies and networks to be linked and advanced analytics provides departments with the data they need to make effective decisions. Unmanned Autonomous Systems are beginning to emerge as a viable surveillance solution in countries with a favourable legislative framework. All of these factors are influencing the way cities evaluate their security requirements.

Cities have different infrastructure, threat levels, capabilities, resources and views on civil liberty which drives suppliers to give careful consideration to which cities have the best fit with their organisation's capabilities and to prioritise accordingly. City departments are also highly complicated. Whilst one city may tender a project to provide a security solution across its infrastructure including transportation, citizen surveillance and other aspects of critical infrastructure development, in reality most city departments are highly decentralised and will manage their own tender process. This is an inefficient and expensive way to provide a Safe City solution resulting in unconnected systems. Cities must work harder to develop a city wide security master plan and industry needs to drive cooperation between government departments.

Public and Private sector procurement and implementation models also differ substantially with some city security solutions highly reliant on infrastructure provided by the private sector. CNL and the Manchester Police, UK, demonstrated how partnerships between the Public and Private sector can lead to improved security networks.

With increased IP penetration in urban areas technology is evolving and the competitor landscape has become confusing with organisations offering a wide range of solutions but rarely the entire capability required. Providing a one fit solution for all cities is not realistic and necessitates that system integrators work with a wide range of suppliers. A partner on one project may well be a competitor on another bid. The following market insight looks at the competitive trends in the market and future models of cooperation between organisations.

Selecting the Right Growth Strategy

A variety of growth models are used by organisations to strengthen their position in the Safe City market. Organisations with a single product approach need to ensure that they have a strong niche offering otherwise their role in the market will be squeezed. Shotspotter excels at positioning itself in gunshot technology with strong patents and good relationships in the market. They have identified their niche and are well positioned to grow. Other product manufacturers, especially in the area of video surveillance, understand the importance of expanding into other segments to provide a broader solution including the development of video analytics or complimentary security technologies such as access control.

Acquisitions are common place and generally fit into two categories, to either strengthen the organisations current market position or to broaden their offering. Information Technology, Telco's and Defence organisations have all made acquisitions in the cyber space in recent years and this will continue to be a fiercely competitive space. The premium on best in class network security organisations is high, driven by press hysteria and a significant number of completed acquisitions. Several organisations have taken a back seat in this area, preferring to develop their own capabilities rather than paying the current market rate.

However, it's not all about developing cyber capabilities. Cobham Tactical Communications & Surveillance has built its product portfolio and expanded the breadth of its offering to first responders steadily over the last 10 years. Key acquisitions include Micromill (2001), Orion (2003), Spectronic (2004), Domo (2006), MMI (2008), R Vision (2010) and Corp Ten (2011). The portfolio allows Cobham to provide a wide range of surveillance and cellular communication solutions including transmitters and receivers, tracking and locating solutions, audio and surveillance products and sensing solutions around the World.

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