By Michael Nann                                              
WBE Security
Division Manager

A new generation of high-tech surveillance equipment is bringing the power of sophisticated facial recognition and data mining in reach of retailers, commercial property owners and small-business owners. It’s a potential game changer that’s already sweeping the banking industry and likely soon to become the standard for commercial-grade security. It holds the promise of deterring and even stopping crime. The technology — cameras, computers and software — can match images from ubiquitous security cameras with transactional records compiled by a point-of-sale or other data-collection system.

But security may be just the start for this know-how. Once the pieces and networks are integrated, a system could track shopper habits and shopping patterns, and even measure the effectiveness of various sales techniques.

Experience in the banking industry shows the potential power of the technology. From the first day, the system builds a database of the faces of all bank visitors, which can be cross-indexed with transactions. If a forged check is found, the technology can quickly deliver the image of the person who passed the check and pair it against the face of the account owner. It can examine all transactions involving that account. It can display where else in the system a suspicious person has been. It can sound the alarm if that person enters any branch. And it can quickly move images to police.

3VR Inc., a San Francisco firm that makes the systems, made headlines in January with a $17 million investment from a consortium of major venture players including Menlo Ventures, Kleiner Perkins Caufield & Byers and DAG Ventures. In explaining Menlo Ventures’ interest, Managing Director Sonja Hoel Perkins said: “3VR offers some of the most sophisticated and disruptive technology in the video market today… The combination of intelligent analytics and patented search engine technology enables 3VR to deliver immediate and actionable insights that drive (return on investment) for companies of all shapes and sizes.” 

BJ’s Wholesale Club, an East Coast retail giant that competes with the likes of  Costco and Sam’s Club, recently said it is upgrading security in its 180 locations. Based in Natick, Mass., the retailer choose a surveillance system from Genetec Inc., a global company based in Montreal. The Genetec solution  is a strong fit for monitoring physical spaces, from warehouses to retail — and BJ’s is both. Genetec’s system connects to a retailer’s point-of-sale system and provides monitoring remotely via the Internet. 

Sea-Tac International Airport outside Seattle also selected with Genetec. But Dallas-Fort Worth International Airport selected an IP-enabled surveillance technology from NICE Networks Ltd. in Crescent Springs, Ky., which offers an incident management package and the ability to integrate voice recordings. ControlByNet of Norcross, Ga., is marketing a cloud-based and hosted video security surveillance solution it says is scalable from small business to enterprise level. The video hosting of the surveillance video feed can be viewed, monitored and reviewed from remote locations via the Internet.

China Security & Surveillance Technology Inc. showcased its version of surveillance technology by mounting six booths at the April International Security Conference in Las Vegas. The company, based in Shenzhen but listed on the New York Stock Exchange, is focused on municipal solutions such as surveillance of parking areas, subways and buses. It also offers systems for commercial and industrial-security use. 

The explosion of video-surveillance technology has become a fact of life in the 21^st century, and the trend will only grow as the price of the equipment comes down and the sophistication level goes up. At the end of 2010, New York City had more than 1,500 security cameras in place and expected to double that number this year. That’s a lot of data to manage, but the potential value of efficiently mining that data is huge. 

The driving force today is clearly security. Cameras cut the cost of having eyes everywhere and data-mining technology increase the chance of identifying and apprehending a suspect in the case of foul play. But for retailers much of the return also comes from deterrence. If a large retailer becomes known as having a sophisticated system, more bad actors will likely go the extra mile to visit a competitor, and more employees likely will keep their hands out of the till and away from merchandise. Plus, the future applications that stretch beyond security to business intelligence are seemingly limitless. 

All quality systems start with cameras that run about $3,000 each, but the guts of the operation is a powerful computer that can cost as much as $50,000. It’s an upfront expense that likely means the technology won’t show up at your local convenience store this year. The cost is too high to justify monitoring the likes of chocolate bars and gum balls. But for retailers trying to protect televisions and computers, cars and industrial secrets, not to mention the safety of employees, the calculus is considerably clearer: For anyone concerned about the safety of financial transactions, expensive merchandise, employees and the building itself, upgrading an existing system has a relatively low incremental cost and a ready return on investment. 

While all this may seem eerily reminiscent of Big Brother to some Bay Area sensitivities, the power of the business argument may be irresistible.

WBE has recently been notified by one of our manufacturer partners that there may be price increases, shortages, and long lead times for plenum rated cabling.  Due supply chain interruptions (manufacturing plants in Japan) and an increased demand from other industries for Flourinated Ethylene Propylene (FEP) a major component in the manufacturing of plenum rated cable.  Although this notification is from Berk-Tek, A Nexans Company.  This could affect our whole industry and end users, consultants, general contractors and contractors should take this into consideration and plan accordingly.