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Internet protocol (IP) network security has been on the radar for most major retailers for some years, however, cost, integration and access considerations have kept most of these businesses cautious about investing in the technology. But this is beginning to shift. With the total cost of ownership of an IP system now being reduced when compared with analog, installation challenges being overcome through open architecture and improved software development, and measures being put in place to restrict access to only those authorized to view data, some of the nation's leading retailers are now rolling out the technology across their estates. Macy's, CVS, The Home Depot and many others are a long way down the road and Bryan Strawser, who works in asset protection for Target, said the company was using IP video at around 500 locations.
"We see increased demand for the capabilities that IP video solutions provide; it's much more than just surveillance," said Johan Akesson, director of Business Development for Axis Communications, Chelmsford, Mass. "The use of network video in combination with analytics is happening now and helps retailers in many ways."
Sexy and smart
While new IP video systems can have a hugely positive effect on asset protection, the more "sexy" side is not just the increased speed, quality and accessibility of the images it provides to investigate fraud and theft, but the opportunities it lends retailers to get business intelligence. Intelligent video solutions are enabling retailers to record and analyze data across all areas of store operations to make better business decisions and improve their overall performance. No longer are video surveillance solutions just being seen by retail managers as a cost-bearing necessity to prevent loss from theft, fraud and shrinkage. Rather, an intelligent video management platform that uses analytic capabilities can increase operational efficiency and improve sales in addition to securing assets and keeping stores and facilities safe. Warren Brown, director of Marketing for IntelliVid, Cambridge, Mass., explained: "Combining IP cameras and intelligent software enables loss prevention and other parts of the retail enterprise to mine data to be used for business intelligence as well."
More retailers are beginning to recognize the value-add capabilities of intelligent video. "We are looking at using intelligent video in the future and likely will be piloting this solution within the next six months," said Paul Stone, vice president of Loss Prevention for Best Buy, Minneapolis.
Jill Evans, director of Loss Prevention operations for Lowe's, North Wilkesboro, N.C., concurred, adding that the home improvement giant is currently testing IP cameras with intelligent software and a network video recorder/server solution. "Lowe's hopes to have some analytics in place within the next year and to conduct analytics for people counting, dwell times, marketing, merchandising reviews etc."
Video, it seems, is fast becoming much more than just a standard surveillance tool for retailers, adding substance and value to the management operations through analytics.
Leading retailers and experts in video technology will be speaking at the IP & Intelligent Video for Retail Conference at the Fairmont Hotel Chicago, March 12-13, 2008. For more information, visit www.eyeforretail.com/video or e-mail Pete Carkeek at pcarkeek@eyeforretail.com..
author: By Pete Carkeek