In November 2014, the security market witnessed a landmark acquisition deal,
\nHanhwa\u2019s purchase of Samsung Techwin. In an interview, Hansoo Jung, EVP and GM of Security Solution Division of Samsung Techwin, stresses with the synergy created with Hanhwa, plus
\nSamsung Techwin\u2019s own internal strengths, the brand that has dominated in security for decades
\nwill stand even stronger.<\/p>\n
consolidation has become a major trend in the security industry and took place at a rapid pace last year. Canon\u2019s acquisition of Milestone in June and Anixter\u2019s acquisition of Tri-Ed in August were all major examples. In November 2014, another deal was announced and took the industry by surprise: the purchase of Samsung Techwin by Hanhwa, a Korean conglomerate whose businesses span various sectors including chemicals, construction, manufacturing, solar energy, financial services, and leisure.<\/p>\n
Synergy of Two Companies
\nThe news raised concerns over the future of Samsung Techwin, which has dominated in the security industry over two decades. Hansoo Jung, EVP and GM of Security Solution Division of the company, dispelled those concerns and asked people to look at this acquisition from the perspective of the synergy that will be created.
\n\u201cConsidering the fact that Hanwha has several affiliates in various verticals, SamsungTechwin will have direct end-user clients in those verticals, such as city surveillance,commercial, banking, retail, residential, and leisure,\u201d Jung said. \u201cSamsung Techwin willembrace each vertical\u2019s needs in order to provide ultimate solutions.\u201d Jung cited an example of how the acquisition would work to both firms\u2019 advantage.
\n\u201cFor example, Hanwha won a city project in one of the Middle East countries. So, weare under review to provide our products in that project,\u201d Jung said. \u201cAdditionally, we will provide our products in several commercial and residential buildings that are now under construction by Hanwha.\u201d<\/p>\n
Reinforced Bondage with Partners
\nTo enable more efficient business operations, the company integrated manufacturing to increase productivity and logistics efficiency, and restructured the distribution systemin China to supply products to more distributors. Restructuring the distribution channel in China is one of the objectives for the reformation of Samsung Techwin\u2019s managementsystem. By achieving a smooth transition from sole distribution (SD) to fulfillment distribution (FD), Samsung Techwin makes sure the nationwide distribution channel remainsstable, ensuring the continuous growth of sales. The \u201cPartner Program,\u201d which was launched in early 2014, enabled the company to carry out joint pre-sales to generate project opportunities, as well as co-marketing with its partners.
\nThrough these undertakings, Samsung Techwin was able to win even more partners.
\n\u201cMore and more system integrators and distributors were registered, while enhancedloyalties of existing distributors result in the volume of order,\u201d Jung said. \u201cFor example, awholesale distributor in the U.S. replaced a company’s products to Samsung Techwin’s products.\u201d<\/p>\n
From Security to Other Industries
\nSamsung Techwin will expand into even more market segments, building on itsexperience and reputation in video surveillance. Smart home, for example, is a target niche, with Samsung Techwin already achieving huge success globally, especially in the U.S., with its network home camera, SmartCam. To meet customers\u2019 demands for continuous monitoring and storage of video data, Samsung Techwin has enhanced the existing edge storage function and plans to expand its cloud service through partners.
\nMoreover, it will expand its customer-based distribution channel from retailers to telecommunication operators to broaden the customer contact points.
\nWith cameras becoming more portable, mobile, and even wearable, Samsung Techwin also has an interest in this particular market segment and is planning to launchproducts highlighting both stability and convenience for users. For example, in the U.S. and Europe, there is a public consensus that the police should be required to wear body-worn cameras during patrol to ensure safety as well asfrictionless interactions with the public. That said, Samsung Techwin has been working with OnSSI on a police body-worn camera that was recently launched at ISC Brazil and ISC West 2015. It also demonstrated a rear-view mirror for patrol cars utilizing the same camera at ISC West to show how security cameras can be applied in the wearable camera sector.<\/p>\n
R&D Rest ruct ures for Verticals
\nTo fulfill the mission of becoming a \u201cpremium security and safety products and solutions provider,\u201d Samsung Techwin has launched an R&D restructuring effort with the hope of raising productivity and efficiency. The existing equipment development team, which used to be divided into camera and storage sections as well as hardware and software sections, has been merged into one integrated division to boost product development speed.<\/p>\n
\u201cThis will contribute to establishing a foundation on which customer- and marketoriented product solutions, rather than technology-oriented product solutions, can be provided,\u201d Jung said. For example, Samsung Techwin selected four global target verticals \u2014 retail, banking, city surveillance, and passenger rail \u2014 after surveying the existing business channels, sales history, and market demands in order to enhance its products and secure vertical solutions. \u201cIn the retail market, where customer needs have been the most steady, Samsung Techwin has introduced ten models in the WiseNet Lite series and three models in the PoE NVR series in April 2015,\u201d Jung said. WiseNet Lite, developed with the concept of \u201cthe power of simplicity,\u201d provides key advanced functions such as hallway view, lens distortion correction, WDR, motion detection, tamper-proof, and IK10\/IP66 features. PoE NVR is \u201cplug-and-play\u201d so that retail owners can easily use the video surveillance system without becoming network experts.<\/p>\n
A Stronger Force
\nTechwin has, through its own strengths and the support of partners, built a reputation for itself as a leading security solutions brand. Now, with a new owner, the company will see greater global reach and deeper penetration into various verticals. After the acquisition by Hanhwa, one thing is clear: Samsung Techwin will only become a stronger force to be reckoned with in the security industry.<\/p>\n
Software Integration
\nTo provide products and solutions that satisfy the needs of each vertical, the company made sure that the value-added software solutions from the application partners registered in the Partner Program were compatible with each other, through the open platform based on the company\u2019s flagship network line-up WiseNetIII. \u201cAs of March 2015, about 300 application partners are registered on our Partner Program. Six partner companies, such as Agent Vi, Foxstream, Arteco, Facit Data System, intuVision, and Veracity, are now on service for WiseNetIII. We are working with five additional companies now,\u201d Jung continued.<\/p>\n
Finally, Samsung Techwin will also strengthen its own core competency to reinforce product competitiveness and succeed with the kind of vertical integration that Jung mentioned above. \u201cThe company holds industry-leading SoC development technologies and lens manufacturing technologies, and has also secured mobile, web, and video and audio technologies,\u201d Jung said. \u201cWe are planning to organize a complete stack that goes from SoC to instruments, mechanics, software, applications, and services through \u2019vertical integration\u2019 of these technologies by a single organization.<\/p>\n
source from a&s International<\/p>\n","protected":false},"excerpt":{"rendered":"
In November 2014, the security market witnessed a landmark acquisition deal, Hanhwa\u2019s purchase of Samsung Techwin. In an interview, Hansoo Jung, EVP and GM of Security Solution Division of Samsung Techwin, stresses with the synergy created with Hanhwa, plus Samsung Techwin\u2019s own internal strengths, the brand that has dominated in security for decades will stand […]<\/p>\n","protected":false},"featured_media":0,"template":"","hws_news_center_cat":[303],"acf":[],"_links":{"self":[{"href":"https:\/\/www.hanwhavision.com\/jp\/wp-json\/wp\/v2\/hws_news_center\/1012001"}],"collection":[{"href":"https:\/\/www.hanwhavision.com\/jp\/wp-json\/wp\/v2\/hws_news_center"}],"about":[{"href":"https:\/\/www.hanwhavision.com\/jp\/wp-json\/wp\/v2\/types\/hws_news_center"}],"version-history":[{"count":0,"href":"https:\/\/www.hanwhavision.com\/jp\/wp-json\/wp\/v2\/hws_news_center\/1012001\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hanwhavision.com\/jp\/wp-json\/wp\/v2\/media?parent=1012001"}],"wp:term":[{"taxonomy":"hws_news_center_cat","embeddable":true,"href":"https:\/\/www.hanwhavision.com\/jp\/wp-json\/wp\/v2\/hws_news_center_cat?post=1012001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}