Key considerations when choosing a security provider. Pauline Norstrom Chairman of the British Security Industry Association

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1 Key considerations when choosing a security provider Pauline Norstrom Chairman of the British Security Industry Association 1

2 Contents Commercial and industry credentials What's most important, price or quality? Assessing the potentially hidden costs of some low-price solutions Importance of security market knowledge for procurement Summary of conclusions Questions 2

3 About the author AD Group and Dedicated Micros Chief Operating Officer. Key expertise in business, diversification and technology marketing Dedicated Micros founder and innovator in video security surveillance solutions since 1982 AD is a group of technology companies incorporating Dedicated Micros since

4 About the author AD has a harmonised, value add strategy focused on meeting user s needs with differentiated technology innovations for retail, transport, aerospace, education, infrastructure In-house R & D, development and manufacturing 4

5 About the author Former Chair of BSIA CCTV Section, 6 years During tenure as CCTV Section Chair: BS8495, Digital Evidence Standard, Privacy Masking Guide, Chip and PIN Guide for Retailers Industry representative on the National CCTV Strategy Board shaping the National CCTV Strategy, formed the foundations of the Surveillance Camera Commissioner's code of practice Driver and Contributor to the Form 109 Planning, design, installation and operation of CCTV surveillance systems Code of practice and associated guidance containing the guiding principles of the SCC 5

6 About the author BSIA Chairman s Award for promoting the industry in 2009 Driver behind the BSIA research project into the number of UK CCTV cameras and their ownership and use, achieving a raised public profile for all BSIA members Current elected Non-Executive Chair of BSIA since 2014 Cited in UBM's Top 50 influencers in Fire and Surveillance

7 What's more important, price or quality? 7

8 Price or quality? We are discussing security and safety of employees, public, assets and commercial outputs Security and safety considerations should not be classed alongside other business procurement tasks Directors have a statutory duty and responsibility for the health and safety of their employees and the impact of the business activity on the public and environment An assessment of the business risks and vulnerabilities must precede any selection of product or service for the purpose of security and safety 8

9 Price or quality? A formal risk assessment should reveal the vulnerabilities Business vulnerabilities are board level concerns Cost of loss, has a direct effect on the bottom line Engage with a reputable security specifier to develop an operational requirements specification which contains the key risks and mitigating recommendations Security provider must respond with best fit of solution to mitigate risk and satisfy needs 9

10 Price or quality? Case study what could go wrong if you make your choice based on price alone? Remote video response designed to mitigate business risks and vulnerabilities 10

11 Price or quality? Quality defined in BS8418, a British standard designed to ensure all areas are considered, detection areas match video coverage Quality system design and installation have a direct effect on false triggers More false triggers means high chance of missing a real incident Cheap systems use non-compliant products and have non-compliant designs 11

12 Price or quality? Cheap, directly results in loss Real events are not seen due to the demand on the remote response centre to review false triggers People and assets are placed at increased risk Loss is not mitigated Procurement may have achieved their purchase price target but put the business at risk as a result 12

13 Price or quality? So, what could the true cost of cheap actually be? Damage and theft of property results in a cost of replacement of high value goods or increased insurance claims Continuity of business may be harmed which could affect vital profit generating activities People could be injured resulting in risk and liability for a business Was the saving really worth it? 13

14 Price or quality? Displacement of cost must be considered by the business owners and their buying teams. Is it about price or is it about cash? Compromises may have been made due to a lack of working capital, lack of bank lending and Government support for British companies Global economic crisis created opportunities for low cost offerings to creep into the marketplace We all know that buying cheap results in compromises 14

15 Price or quality? What does quality mean? Two offerings may meet the basic requirements set out in the operational requirements specification The cheap offering may scrape through on terminology as sadly many requirements specifications are distilled down to the lowest common denominator of basic requirements such as a product list or a minimum government standard The quality offering ticks the boxes and provides value benefits 15

16 Price or quality? What are value benefits? The offering is reliable and will work for the lifetime of the contract The product or service may offer measurable returns whereby a cheap offering just ticks boxes Combining technology with manpower efforts can provide actionable data being provided e.g a CCTV system which sends an alert to a guard on their mobile phone to ensure fast response to an incident will make guard very efficient as they are able to respond in real time. 16

17 Price or quality? Why does quality cost more? Quality does not always cost more, but typically does why? Investment into the product development incurs cost in time and resource, this is typically charged back to the user over the lifetime of the product or service. Lessor offerings don't have this investment and are cheaper as a result Support and care during the life of the product and contract incur cost, this is added to the cost of the product Training and development of people costs money 17

18 Price or quality? How do you know your provider has a quality product or service? Do they respond to customer's needs, do they have references? Are they members of the industry association? Do they invest in quality? ISO accreditation, proper systems and processes Do they provide support, SLAs KPIs and performance reports? Do they provide continual assessment and improvement programmes through training and education 18

19 Price or quality? Why are some providers cheaper than others? One size fits all cookie cut service Offer less in the basic costings, extra functionality and benefits are all extra Features claimed but not delivered, copying reputable providers terminology to sound like them No support and training, warranty No operating or quality procedures 19

20 Assessing the potentially hidden costs of some low-price solutions 20

21 Hidden costs? Ask why the other solution is cheap? How do companies make cheap products or low cost services? Cheap and good are not synonymous Balance between price and quality, where is the tipping point 21

22 Hidden costs? Loss is not alwys obvious, cost is hidden Displacement of cost? Where does it end up? In-house staff cover deficiencies, keyholders called out unnecessarily increasing overtime costs Public costs increase Insurance increases Holistic view of total business impact Cost of ownership little understood by buyers 22

23 Importance of security market knowledge for procurement 23

24 Security market knowledge? All security providers are not the same It's easy to make wild claims on paper Procurement teams must understand what makes a security provider different and better? Who is responsible for the business loss if something goes wrong? Business leaders must ensure their procurement teams are properly apprised and as a result make sound recommendations based on industry knowledge 24

25 Security market knowledge? Access and Asset Protection Asset and Property Marking Associate Cash and Valuables in Transit CCTV Crowd Management Export Council Information Destruction Leisure Industry Security Lone Worker Police and Public Services Security Equipment Distributors Security Equipment Manufacturers Security Guarding Security Systems Specialist Services Training Providers Vacant Property Protection BSIA's sections cover all aspects of the security industry. Specific requirements have to be met. 25

26 Security market knowledge? Example of CCTV Section entry criteria BS 7858 Security screening of individuals employed in a security environment CCTV system member Installer / maintainer i) Companies shall install and maintain CCTV systems in accordance with: BSIA Form No. 109 Planning, design, installation and operation of CCTV surveillance systems Code of practice and associated guidance 26

27 Security market knowledge? BS EN CCTV surveillance systems for use in security applications ii) Digital CCTV Recording Systems should be specified, selected, installed and operated in accordance with the latest version of the following: BS 8495 Code of Practice for digital CCTV recording systems for the purpose of image export to be used as evidence Members ensure that all staff receive adequate and regular training. 27

28 Security market knowledge? Who regulates the quality of solutions? The Government does not regulate the quality of solutions Bespoke solutions are different every time, this cannot be regulated The user has to ensure they are educated such that they can discern whether the provider can and will meet its needs Providers cannot hide behind a veil of Government regulation because the standards are too low Procurement teams must be apprised 28

29 Security market knowledge? Government sets the lowest bar No regulation in CCTV, non mandatory code of practice No regulation of security operators Minimum standards of training and competency for security staff Business which provide the services 29

30 Summary of conclusions 30

31 Conclusions Security and safety are board room responsibilities Directors must be apprised as to the risks and vulnerabilities Don't rely on the Government, austerity results in no investment Low quality providers get away with it if business owners take no interest, but they always end up footing the bill 31

32 Conclusions Quality is more important than price Don't compromise on security and safety Choosing a BSIA member company is an excellent starting point 32

33 Thank you Questions? 33

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