Today, both in the engineering field and in the IT field, the status of integrated service providers and system suppliers is rapidly increasing, and selling services is becoming more and more a mainstream business model. The security industry that is similar to it, is also experiencing a transition from a model of selling products to a model of selling solutions and services in the course of exploring differentiated competition. Intelligent buildings, campus security systems, plant monitoring systems, shop security systems, etc., the need for integrated solutions one by one, has become a key project that major security companies compete to pursue, and there are also more and more security product suppliers Emphasize and strengthen its own system integration and integration services to win the corresponding market share.
From product to solution, the trend
Driven by the large-scale market demand such as the Beijing Olympics and "maintaining stability," China's security industry has achieved rapid development, and China's security companies are also facing new challenges and opportunities in the tide of industry development. At present, the development trend of the security industry has shifted from the chaos and chaos to the industry adjustment and reshuffle. The security industry has been moving toward integration, systematization, networking, intelligence, specialization, and alliance development.
The development of the industry is generally driven by endogenous technology and external markets. In recent years, the arrogant Chinese security industry has mainly benefited from the continuous improvement of its own technology and the large number of external market demands, and the market demand has played a decisive role in both. In order to stand out from the competition and to meet the needs of customers as much as possible, China's security companies have also been exploring new service models and business models.
There are many categories of security products, and the needs of customers vary. Therefore, due to the uniqueness of the security industry itself and the unique needs of customers, the most convenient business model for security companies and customers should be "Service+Solution." First of all, according to the customer's actual situation and security requirements, help customers design and build a set of "tailor-made" security solutions, and then security companies in accordance with the needs of related programs, through similar to the "turnkey" project general service provided Customers, in order to minimize the customer's possible problems in the design, procurement, installation, commissioning process.
In fact, in recent years, many companies have begun to try to explore and promote this business model. For example, GE, Tianweiye, Honeywell, Suzhou Keda, Jinpeng Electronics and many other companies have gradually opened up a single product. The plan gradually began to transition from product suppliers to system integrators and integrated service providers.
The transition from products to solutions is also in line with the development trend of the security industry. Through the implementation of the solution, it embodies the integration, systematization, networking, and intelligence; the implementation of a large number of companies to participate in and solve solutions, and also realizes the competitive position of some companies in the campus, financial, factory, building, and segmentation markets. The development of specialization; and because of the security companies in China, most of them are engaged in the production of a single category. In order to solve the implementation of the plan, they have also further promoted the cooperation between enterprises, through the way of alliance, to achieve complementary advantages and complementary products. Satisfy customers' program requirements. Therefore, from the product to the solution, it can be said that the security industry has become the general trend.
Three-Side Requirements to Promote Supplier Transformation
From product to solution has become the development direction and development trend of the security industry, and a large number of security companies in China are also planning or planning a transition from product vendors to solution providers. The reason is nothing less than the following three requirements, and promote the transformation of China's security suppliers.
First, the needs of downstream customers to meet their special needs, improve procurement efficiency, and save search costs
The needs of security customers have their own particularities. Each customer will adopt different security strategies according to their actual situation and security objectives, and then need different security systems. However, for the customers themselves, what kind of security strategies they choose, how to design their own security systems, and their lack of professional knowledge; in the face of complex security products, they cannot clearly and clearly understand all the products needed, and Since the security system also involves the cooperation of various functional modules, customers can not accurately understand the matching between the modules. Therefore, in order to meet its own specific needs, customers want to be able to carry out the installation of security products based on the design of the program; in order to improve the purchasing efficiency and save the search cost, the customer also hopes to be able to obtain a one-time solution through the acquisition of solutions. Meet their own service needs.
Second, China's security companies pursue their own profits
The increasingly fierce competition in the security industry is obvious to practitioners. In the fierce market competition, the profit space of participants is being gradually compressed. How to increase their own profitability is a question that every security company is considering. The competition of products has been pushed to the limit by many market participants, and the sales of solutions will help ease the pressure of competition. On the one hand, the provision of the solution includes the related consulting services and can effectively save the search cost of the customer, so its quotation will generally be higher than the superposition of all products; on the other hand, due to the provision of solutions, the security companies need to have strong The technical capabilities, thus in this market, can effectively block some of the low-end companies relying solely on price competition, reducing security companies' price competition pressures. Because of this, from the perspective of the company itself, China's excellent security companies also hope to improve their own profitability through the provision of solutions.
Third, the demand for service industry development trends in the manufacturing industry
The transformation of integrated service providers is also a major trend in service development in the manufacturing industry. From the complete set of equipment of industrial products to the system services of the IT industry, in the process of meeting customer needs, selling system integration and selling services have increasingly become the trend of the industry. As mentioned above, with the continuous development of the industry, the security industry will also comply with this trend. From the product to the solution change, it is also the demand for service development trends in the manufacturing industry.
The advantages of the solution model
As the main competitive means of security product suppliers, the solution is already a development trend of the security industry. As an inevitable development of the industry, compared with the traditional sales of products, the sales model of products driven by selling solutions has innate and inevitable advantages.
First, the solution model helps security companies increase profits. Integrated services, because of the inclusion of consulting, overall services, etc., the overall quotation will be much greater than the single product sales overlap. For China's security companies, in the increasingly fierce market competition, the model that can improve their profitability will be the enterprise is willing to take the initiative to adopt.
Second, the solution model will help the industry's overall technological advancement and upgrade. The implementation of the plan requires more collaboration and cooperation between the products. It needs overall harmonization and matching of interfaces. This will help to automatically adjust cooperation among enterprises in the industry and gradually eliminate production enterprises that do not meet industry standards. The industry has achieved upgrades and advancements and improved the service capabilities of the entire industry.
Third, the solution model helps to increase the efficiency of customers in the implementation of security strategies. The solution can enable customers facing many technologies and products to reduce the cost of decision-making and search, and to meet the overall needs of customers in a similar way to turn-key projects. Not only does it provide customers with more peace of mind and peace of mind, it also stimulates the purchase needs of customers who were not enthusiastic about the construction of complex security systems and who have concerns about a large number of purchases and installations.
Fourth, the solution model helps customers communicate with security companies. In the past, procurement and sales faced the demand for multiple products face to face, that is, multiple products, which not only affected the efficiency, but also resulted in insufficient equipment matching at the technical level. Through the implementation of the solution, both security companies and customers lead the procurement and sales in the form of point-to-face, that is, customers face the need of their own to provide more suppliers that can provide overall solutions, and the suppliers have their own capabilities. Facing customer's various aspects of system construction requirements. Such a model will effectively ensure communication and engagement between the two.
Fifth, the solution model will help the dominant companies in the security industry to further build their dominant position. Providing a solution requires the supplier to have a higher level of technology and the ability to integrate resources. Therefore, only those companies with better qualifications and stronger capabilities can better implement the sales model of the solution. As such enterprises further occupy the market in this way, the dominant position of advantageous enterprises will be further strengthened.
Security Enterprise Solution Supply Capacity Development Path and Potential Difficulties
In order to gain a competitive position in the market and meet the needs of a growing number of downstream customers, some aspirational Chinese security companies have already undergone a transformation of their own sales model. In order to achieve such a transformation, China's security companies should work hard from the following aspects to build their own transformation path.
First of all, companies need to strengthen market analysis and research, grasp the changes in market demand, and take market demand as the direction, build their own integration capabilities and system supply capabilities, and define their own market positioning.
Second, the supply of solutions is still new to a large number of Chinese security companies. Therefore, security companies need to carefully analyze the operation mode of domestic or foreign outstanding enterprises, and quickly improve their relevant capabilities through continuous imitative learning. After all, the service capability of the solution is not a simple integration of 1+1=2. More times, more technical, marketing, and service capabilities are needed to support the implementation of the plan. The essence of an excellent service provider is to sell the solution through the model.
Finally, the target model for enterprise transformation must be based on the development trend of the solution, build an integrated model that is in line with its own resource capabilities and strategic direction of development, and persevere in its development. Regardless of whether it is for a certain sub-sector, whether it is to focus on a certain technology module, or whether it is necessary to integrate the resources of the parties as a leader, it is necessary for the enterprise to have a clear positioning, to use resources, to give play to its advantages, and to build its own competitive advantages. status.
Looking back at history, the transformation of companies due to external market conditions will not be easy. Security companies' transition from the supply model to the marketing model of supply solutions will also be no exception. It will also face various difficulties that need to be overcome.
First, the existing integration capabilities and system service capabilities of Chinese security companies need to be strengthened. Due to historical reasons, most security companies still remain in the stage of selling products, and since their birth, they have been relying on selling products and have come to the present day. Therefore, in the process of realizing the model transformation, the ability to integrate and provide system services The strengthening will be the most important issue and the greatest difficulty faced by related companies.
Second, the implementation of the solution will also have higher requirements for subsequent service capabilities. Especially for the security alliance project that is jointly awarded by the alliance of companies, in the follow-up after-sales service, it is even more necessary to test the ability of coordination and cooperation among related companies.
Third, the change in the industry service model means that the industry has a new round of reshuffle. In the process of changing business models of the industry, companies in the forefront of the industry need to implement them carefully and steadily in the process of transition to an integrated service provider. Otherwise, they will easily lose their original market position and be controlled by others.
Fourth, the balance between the original sales model and the new sales model. In terms of market selection, large customers and high-end markets are the solution trends, but a large number of retail investors and low-end customers still rely on selling products as the main sales model. How to balance the trade-offs between the two does not only determine the operational capabilities of the company, but also It also affects the market performance of the company.
In summary, the development of the future service model of security companies must be a change to the solution provider. This is caused by changes in market demand and customer demand. In every wave of industry changes, only those companies that are good at grasping the development trend of the industry, constantly adjusting their own competitive strategies, and building competitive capabilities that match them will survive, and only those who are good at grasping industry opportunities can use it. Opportunities for the development of the industry to complete the "curve overtaking" to achieve the company's own development of the transition to a new height. As a result, China's security companies have a long way to go in order to achieve a gorgeous turnaround from products to solutions.
The advantages of the solution model
As the main competition method of security product suppliers, the solution has already been the development trend of the security industry. As an inevitable development of the industry, compared with the traditional sales of products, the sales model of products driven by selling solutions has innate and inevitable advantages.
First, the solution model helps security companies increase profits. Integrated services, because of the inclusion of consulting, overall services, etc., the overall quotation will be much greater than the single product sales overlap. For China's security companies, in the increasingly fierce market competition, the model that can improve their profitability will be the enterprise is willing to take the initiative to adopt.
Second, the solution model will help the industry's overall technological advancement and upgrade. The implementation of the plan requires more collaboration and cooperation between the products. It needs overall harmonization and matching of interfaces. This will help to automatically adjust cooperation among enterprises in the industry and gradually eliminate production enterprises that do not meet industry standards. The industry has achieved upgrades and advancements and improved the service capabilities of the entire industry.
Third, the solution model helps to increase the efficiency of customers in the implementation of security strategies. The solution can enable customers facing many technologies and products to reduce the cost of decision-making and search, and to meet the overall needs of customers in a similar way to turn-key projects. Not only does it provide customers with more peace of mind and peace of mind, it also stimulates the purchase needs of customers who were not enthusiastic about the construction of complex security systems and who have concerns about a large number of purchases and installations.
Fourth, the solution model helps customers communicate with security companies. In the past, procurement and sales faced the demand for multiple products face to face, that is, multiple products, which not only affected the efficiency, but also resulted in insufficient equipment matching at the technical level. Through the implementation of the solution, both security companies and customers lead the procurement and sales in the form of point-to-face, that is, customers face the need of their own to provide more suppliers that can provide overall solutions, and the suppliers have their own capabilities. Facing customer's various aspects of system construction requirements. Such a model will effectively ensure communication and engagement between the two.
Fifth, the solution model will help the dominant companies in the security industry to further build their dominant position. Providing a solution requires the supplier to have a higher level of technology and the ability to integrate resources. Therefore, only those companies with better qualifications and stronger capabilities can better implement the sales model of the solution. As such enterprises further occupy the market in this way, the dominant position of advantageous enterprises will be further strengthened.
Security Enterprise Solution Supply Capacity Development Path and Potential Difficulties
In order to gain a competitive position in the market and meet the needs of a growing number of downstream customers, some aspirational Chinese security companies have already undergone a transformation of their own sales model. In order to achieve such a transformation, China's security companies should work hard from the following aspects to build their own transformation path.
First of all, companies need to strengthen market analysis and research, grasp the changes in market demand, and take market demand as the direction, build their own integration capabilities and system supply capabilities, and define their own market positioning.
Second, the supply of solutions is still new to a large number of Chinese security companies. Therefore, security companies need to carefully analyze the operation mode of domestic or foreign outstanding enterprises, and quickly improve their relevant capabilities through continuous imitative learning. After all, the service capability of the solution is not a simple integration of 1+1=2. More times, more technical, marketing, and service capabilities are needed to support the implementation of the plan. The essence of an excellent service provider is to sell the solution through the model.
Finally, the target model for enterprise transformation must be based on the development trend of the solution, build an integrated model that is in line with its own resource capabilities and strategic direction of development, and persevere in its development. Regardless of whether it is for a certain sub-sector, whether it is to focus on a certain technology module, or whether it is necessary to integrate the resources of the parties as a leader, it is necessary for the enterprise to have a clear positioning, to use resources, to give play to its advantages, and to build its own competitive advantages. status.
Looking back at history, the transformation of companies due to external market conditions will not be easy. Security companies' transition from the supply model to the marketing model of supply solutions will also be no exception. It will also face various difficulties that need to be overcome.
First, the existing integration capabilities and system service capabilities of Chinese security companies need to be strengthened. Due to historical reasons, most security companies still remain in the stage of selling products, and since their birth, they have been relying on selling products and have come to the present day. Therefore, in the process of realizing the model transformation, the ability to integrate and provide system services The strengthening will be the most important issue and the greatest difficulty faced by related companies.
Second, the implementation of the solution will also have higher requirements for subsequent service capabilities. Especially for the security alliance project that is jointly awarded by the alliance of companies, in the follow-up after-sales service, it is even more necessary to test the ability of coordination and cooperation among related companies.
Third, the change in the industry service model means that the industry has a new round of reshuffle. In the process of changing business models of the industry, companies in the forefront of the industry need to implement them carefully and steadily in the process of transition to an integrated service provider. Otherwise, they will easily lose their original market position and be controlled by others.
Fourth, the balance between the original sales model and the new sales model. In terms of market selection, large customers and high-end markets are the solution trends, but a large number of retail investors and low-end customers still rely on selling products as the main sales model. How to balance the trade-offs between the two does not only determine the operational capabilities of the company, but also It also affects the market performance of the company.
In summary, the development of the future service model of security companies must be a change to the solution provider. This is caused by changes in market demand and customer demand. In every wave of industry changes, only those companies that are good at grasping the development trend of the industry, constantly adjusting their own competitive strategies, and building competitive capabilities that match them will survive, and only those who are good at grasping industry opportunities can use it. Opportunities for the development of the industry to complete the "curve overtaking" to achieve the company's own development of the transition to a new height. As a result, China's security companies have a long way to go in order to achieve a gorgeous turnaround from products to solutions.
The development trend of the solution model
The change of sales model of security suppliers is the development trend of the industry, but for security suppliers, it must also attach great importance to the development trend of solution models under the guidance of market demand. The development trend of the solution needs to be analyzed from two dimensions: customer demand and product supply.
In terms of customer needs, the direction of future solutions is the industry/professional segmentation and professional module segmentation. On the one hand, solutions have increasingly exhibited the characteristics of the industry, such as finance, chemical industry, education, public facilities, etc., and have formed differentiated demands for solutions based on the special needs of the industry. On the other hand, it is a subdivision of professional modules, which includes monitoring systems, detection systems, intelligent management systems, and so on. That is, depending on the needs of the industry, suppliers will be further subdivided. In different market segments, more will also be accumulated with focused experience and cases to win the market.
From the aspect of product supply, the suppliers of future solutions will have the following characteristics: First, there will be some non-production integrated suppliers, which will acquire orders through their own integration capabilities and integrate other manufacturers. The products provide solutions services and become service providers that truly occupy the upstream of the industry. Secondly, some leading industry segments will become the main suppliers of solution solutions in the future. These companies will rely on their own product advantages to integrate other related products to achieve the supply of solutions. Third, the shape of corporate alliances will increase even more. Because most of the current enterprises are focused on the production of a certain category of products, in order to achieve the supply of solutions, different companies will further unite to form a synergy of their respective products to meet the solution. Implementation requirements of the program.
The author believes that the future changes in the supply of solutions will also have a profound impact on the industry's competitive situation. Only those security companies that constantly adjust their service capabilities and service levels according to market demand can not only win the market in the early transition period, but also maintain their long-term market position in the industry.