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ESX 2018

Daily updates from ESX 2018

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Tuesday, June 19, 2018

Thursday, June 21

My first session of the second day was “Improving the Customer Interaction Experience: Strategies to Consider Before Implementing IVR in the Monitoring Center.” Here, Peter Giacalone, president of Giacalone Associates, and Morgan Hertel, VP of technology and innovation for Rapid Response Monitoring, presented on interactive voice response technologies, or IVR, and the benefits for the companies that implement them and their users.

The main benefit of IVR is not its reduction of labor for a company like a monitoring, but instead providing a better user experience, and it can be utilized to achieve both, Giacalone said.

Hertel used Rapid Response’s relationship with Connect America, a PERS company, as an example for the benefits of IVR, though he said the technology benefits other companies in the space as well. One observation about senior users of PERS systems is that they often don’t want to bother people or be a burden, Hertel said, and that can be a difficulty when asking them to test their systems frequently. With IVR their test signals are handled quickly, and through automation. He also highlighted the reduced work load for test signals by handling those with IVR.

The rollout process for IVR should be a careful consideration, Hertel said, not something that goes on overnight but rolled out in phases with different groups. 

For a few years now I’ve been hearing about the concept and potential for on demand or pay-as-you-go monitoring models. A panel tackled exactly this topic in “Next Gen Monitoring—Do Monitoring on Demand or Pay-as-you-Use Models Really Work?” Morgan Hertel served as moderator, leading panelists Caroline Brown, EVP form Security Central, Mark Matlock, SVP of UCC, and Thomas Nakatani, IT VP—customer monitoring technology and product, ADT Security.

Customers understand that, with the MIY model, they do need to eventually sleep or go on vacation, Hertel said to open the conversation, and when they don’t want to they’ll seek a professional monitoring options.

UCC does some work with DIY installed systems, such as Lowe’s’ Iris offering. Matlock said that, overall, the company has seen a good adoption rate from MIY set ups to on demand customers.

Asked about the typical usage for monitoring from on demand customers, Matlock and Brown estimated about 10 days. Nakatani mentioned that ADT is a little different in its model, offering one month at a time.

Hertel brought up a key question: while there is an opportunity for new business from offering pay-as-you-go monitoring, will it take revenue out of existing customers who then want to downgrade their system? Each panelist seemed to portray it as more of an opportunity than a risk. Brown said that it’s important to offer the dealers different options, Matlock said that he doesn’t foresee losing many customers to DIY, and Nakatani sees tremendous opportunity for DIY and monitoring on demand.

Don Yaeger, associate editor, Sports Illustrated, NY Times best seller, presented the Thursday general session titled, “Great Teams Understand ‘Why.’”

When Yaeger started looking at what makes great teams great, he said he looked at two types of teams: those that make up exceptional sports teams, and those that make up outstanding companies.

One of the things Yaeger noted on in his presentation was that companies should look for the signs and clues of success from successes in the industry. “The truly great ones are always studying each other,” he said.

He also addressed culture, specifically that a team’s culture will form either through design or default, Yaeger said. And a key part of a culture is understanding why the team is there, who it is that they working for—whether that is friends, family or a certain cause or group of people.

According to Yaeger, culture can influence behavior, behavior brings about habits, and habits can lead to success.

Getting the right people is important for every organization, and several speakers that I’ve heard in the past few years have addressed the challenge with different approaches—and I’ve been interested to hear the variety and universal focus on the matter. That’s why, for the last session of the day, I attended “The Perfect Fit: New Strategies for Attracting and Retaining the Right Operators.” This session featured Michelle Lindus, central station manager for Vivint Smart Home, Steve Crist, director of monitoring, ADS Security, and Bill Kasko, president and CEO, Frontline Source Group.

There are now more job openings than people looking to work, Kasko pointed out, which means that companies are going to have to find individuals in new and ingenious ways. While before companies looked at college recruiting, now some are getting involved at the high school level, to get their brand out to potential employees even earlier, he said.

Lindus brought up that Vivint has programs that event engage parents and children in elementary school.

One thing Kasko recommended was a instituting a referral program, where current employees can recommend their friends for open positions. “Great people know great people,” Kasko said.

Lindus added to that, saying about 30 to 35 percent of new hires come through a referral program. Crist said that 50 percent of new hires that he sees are coming from referral programs.

Crist also stressed that job applicants of all ages ask about possibilities for advancement or developing their careers.

Wednesday, June 20

I started my day with this year’s OpenXchange breakfast. Held on the main stage, Michael Simmons, CEO of Driveway, Mike Soucie, senior product marketing manager for Google, and Jeremy Warren, chief technology officer for Vivint Smart Home gathered for a discussion, moderated by ESX chairman George De Marco.

In large letters projected onto a screen, De Marco highlighted the idea of disruption and some key questions around that topic, such as whether a company is changing as fast as the world around them, or if there are factors blinding a company to change. 

Each of the speakers was given the opportunity to introduce themselves, their company, and their perspective.

Simmons outlined the mission for his company, Driveway, as wanting to cure car crashes. The Driveway app utilizes mobile phone sensors to keep track of driving habits and keep users safer. It can let a parent know if their child is not available to talk or text due to driving and it can alert authorities in the event of a crash, among other functions. “We’re all in the peace of mind business in one way or another,” he told the audience.

Soucie define his role with Google as seeing how Google, Nest and partners work together. He addressed his reason for being—as a company with a primarily DIY product offering—at a professional security conference: “We actually believe there is a tremendous market opportunity for your, for this channel.”

Warren stood up and posed some considerations to the audience around changes in the market place, such as what to do if new companies enter the market with different ideas of profit margins for similar offerings.

Among a variety of questions, De Marco asked was about how to make sure that dealers and integrators remain the preferred home providers.

According to Warren, it’s about finding out where it is that companies are really providing differentiated value.

Soucie brought up making business models around reducing complexity for consumers, as well as hearing from consumers what is important to them.

From Simmons’ perspective, it will be important to have great customer experience, but also around a profitable business model.

The first educational session I attended for ESX 2018 was, “The Monitoring Center of the Future is Here Now! – Technology You Must Leverage to Thrive,” featuring Mike Tupy, director of central station technology at Vivint Smart Home, Ken Green, CEO of ItsPayd, and Justin Bailey, president and COO of AvantGuard.

Tupy opened the session with an overview of several topics. He started with the alarm panel, saying that he hopes attending companies aren’t installing any more systems on POTS lines. Keeping users upgraded is important, he noted, and even if it comes at a fee. His comparison: people will pay to upgrade their cell phones, so why not their security system?

Monitoring companies can also look at their receivers, he said, as a way to increase more accounts coming in or help with redundancy.

Green brought up the changes in paths of communication and how to best reach customers, specifically hitting upon the value of text messages. He offered several reasons for why companies should look into offering text messages: it can provide a competitive edge, it can improve customer experience, it offers flexibility, and it can help reach new younger customers—the millennials.

Bailey covered uses for analytics and other data analysis tools. Staffing is one problem that affects a lot of monitoring centers, he noted. The right analytic tools can provide a better picture of where the best operators are coming from and metrics can show how and why a great operator is a great operator.

Certain tools can also look into alarm traffic and whether the number of operators on staff is perhaps too light or too much.

Tupy added that looking into historical data can also help, such as with knowing roughly what to expect on the Fourth of July as opposed to a more typical Wednesday.

Younger generations that are entering the work force now can be accustomed to plenty of feedback, Bailey said, and the right dashboards can provide information on how an employee has been doing or how they’ve improved.

At this year’s Opening Keynote Luncheon, Scott Stratten, president of UnMarketing, presented “The Age of Disruption: Everything Has Changed and Nothing is Different.”

Stratten said that the most effective marketing happens not through marketing campaigns but through interactions between employees and customers. “The front line affects your bottom line,” he said; companies often want good word of mouth but that means doing things that would be worth talking about. Creating stories that evoke an emotion makes them more likely to be shared, Stratten said.

Brands and how they are perceived can change, Stratten said. For instance, he asked the audience to shout what came to mind when they thought of The Ritz-Carlton. Some attendees said “expensive” or “luxury.”

Stratten told the story of a child losing their stuffed animal at a property of The Ritz-Carlton. The child’s parents said that the stuffed giraffe, named Joshie, was just on an extended vacation and would return. A laundry worker found Joshie, recognized its importance, and brought it to the attention of a front desk employee. Joshie was sent back to its family, along with pictures of the toy lounging at the beach or in the spa, working for The Ritz-Carlton—even with a new ID badge made for the giraffe.

Asked again how the audience would define the hotel brand, attendees used words like “caring.”

Tuesday, June 19

I landed late this afternoon in warm Nashville, Tenn., for this year's ESX. It was great to see some familiar faces at the opening reception. I'll be updating this blog with daily updates on the educational sessions I'm attending, the keynote sessions and some of my meetings from the show floor. Be sure to check back for more perspective on the show! 

Live from ESX in Nashville

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Tuesday, June 19, 2018

Thursday, June 21

A key theme for the second full day of ESX was meaningful and interactive education, as the morning and late afternoon educational sessions had something for everyone.

I had the good fortune to start my day moderating a session—“Top 5 Disruptive Technologies Impacting The Commercial Market”—featuring a stellar panel of Steve Butkovich, chief technology officer, CPI Security and Rodger Reiswig, VP, Industry Relations, Johnson Controls Inc., who really played well off each other, presenting their perspective and expertise on each of the five disruptive technologies we decided were most impactful today.

The Top 5 Disruptive Technologies Impacting The Commercial Market that we collectively decided on are:

1.    Cloud-based Solutions
2.    Cybersecurity (IoT, Adaptive Risk, etc.)
3.    Mobile/5G Connectivity
4.    AI/Machine Learning
5.    Biometric Identity Solutions
 
As a group we came up with a definition for what disruptive technology is: "Technology that displaces, replaces or improves on an existing technology or business process and protocol in the marketplace, producing something new and more efficient."

Reiswig and Butkovich looked at how each of these technologies are changing and disrupting what is currently in place, the benefits and potential for each within security, as well as some excellent use cases and examples to illustrate their points.

I also sat in on highly informative session, “Industry Outlook - What You Need to Know,” featuring Jeff Kessler, managing director, Institutional Research, Imperial Capital and Blake Kozak, principal analyst, Smart Home and Security Technology, IHS Markit.

Kozak presented first looking at IHS research on the total equipment market (by technology type) for 2017, pointing out that IHS estimated the total security market in 2017 is worth about $31 billion. By 2021, Kozak said the market is estimated to reach $42 billion globally. Not surprisingly, video surveillance equipment was the leading technology at more than $18 billion.

What was surprising is how much video surveillance dwarfed others on the list, including access control as the next closest at $4 billion, followed by entrance control, intruder alarms, enterprise storage, consumer video surveillance and mobile video and body worn cameras. The two fastest growing areas over the next five years will be enterprise storage and consumer video, like Nest, Kosak said.

Kozak also presented a global forecast for the electronic access control equipment market that showed a CAGR of 6.2 percent from 2016-2021. The global market was worth $4 billion in 2017 and will grow to over $5 billion by 2021. Of this amount the U.S. represents about $1.2 billion or about 33-35 percent. The U.S. market will not decline.

Kozak also got into cybersecurity, noting that recent data suggests that more than 420 million companies were hacked, including data breaches, in 2011, which increased to 4 billion breaches in 2016, “more than a 200 percent increase in a short time,” he pointed out. 

Kessler looked at monitoring trends and how they are affecting the residential and commercial markets and the convergence of physical and logical security.

Kessler presented some interesting findings from a recent survey that Imperial did with 400 police agencies looking at “who gets the first response from a verified call” when given a choice between a professionally monitored security system versus a self monitored DIY system. Interestingly, 331 out of 400 agencies said they give priority to professionally monitored systems, which Kessler astutely pointed out is good news for monitoring companies as it shows the value of professional monitoring today.

Wednesday, June 20

Great to be here in Nashville for ESX 2018, which is off to a great start, from the opening celebration on Tuesday, June 19, at the Country Music Hall of Fame, to a packed first full day on June 20 that featured a stellar—and hilariously funny—keynote presentationfrom from Scott Stratten, president, Unmarketing, entitled “The Age of Disruption: Everything Has Changed and Nothing is Different.” at the Opening Keynote Luncheon (more on this later).

At the OpenXchange breakfast on Wednesday, ESX chairman George De Marco led a diverse panel that included Michael Simmons, CEO, Driveway, Mike Soucie, senior product marketing manager, Google, and Jeremy Warren, chief technology officer, Vivint Smart Home. The group looked at how disruptive technologies are changing the security landscape.

The panel also looked at how the world we live in is becoming more connected and more automated, from our home to our car to our place of work. The group discussed the relevance of integration services, how to adopt IoT offerings and how to provide more value to customers by taking the complexity out of making a wide variety of devices work together for a truly intelligent home. They also tackled topics such as data privacy and the role of the integrator and dealer in an ever-increasing DIY industry.

Looking at the future of the smart home, Warren said it is “not about the devices, but about the platform that ties it all together.” As the home becomes more of a “thoughtful home,” Warren asked, “What services will homeowners be willing to pay for in the future?”

Soucie added, “Devices should fade into the background,” noting that there are opportunities to “monetize solution bundles.”

The group also got into a good discussion on privacy. With the increase in video and data being produced today, homeowners are becoming more comfortable “trading privacy for convenience,” De Marco pointed out.

De Marco also moderated the counterpoint session of the day, “How will MAGA affect You and the Industry?” featuring Robert Few, managing partner, The Connection Xchange and Kirk MacDowell, president, MacGuard Security Advisors Inc., who looked at how MSO’s, Apple, Google and Amazon (MAGA) is impacting and reshaping the security industry and challenging security dealers today.

Both panelists agreed that MAGA is good for the industry, as they are raising greater awareness for a residential market that has been stuck around the 20 percent penetration rate for as long as anyone can remember. Few said that he believes that these entrants are helping already to drive this penetration rate up into the high 20s.

“I am excited they are here,” Few said. “They make our businesses better.”

Few also pointed out dealers really need to focus on connecting with their customers. “Engagement is key,” he said. “The more, the better.”

This counterpoint session provided some valuable opportunities for the audience to participate and guide the discussion. There was some good discourse around questions about competing with MAGA on pricing and creation costs, as well as installation, support and maintenance, which are key areas where dealers and integrators can differentiate themselves, the panelists pointed out.

Moving to the opening keynote luncheon, Stratton started out looking at the importance of brand, but from a slightly different perspective. He gave a great example of the great extent Ritz-Carlton’s employees went to get a lost teddy bear, Joshie, back to a family that had stayed at the hotel. Hotel staff went above and beyond, overnighting Joshie back to the family, along with sending pictures of Joshie enjoying his extended stay at the pool, Joshie working at the hotel, etc., as well as a Joshie employee badge—the ultimate customer service response that started with the laundry room staff member who found the bear all the way to the front desk person who made sure this issue was resolved.

“We all want word of mouth,” said Stratton, noting that many times companies aren’t doing things that are worthy of it. His example also illustrates the need for great leadership that is willing empower and trust their employees to do the right thing. For example, the Ritz-Carlton, he said, allows an employee $2,000 to make things right with a guest who has any issue or needs special attention.

“The frontline changes the bottom line,” said Stratton, for better and for worse, depending on the tone and direction from leadership, which is something that is often mistaken for management. “From 30,000 feet up you can’t see the cracks on the ground,” said Stratton, noting that leadership requires that you listen to your employees.

What made this presentation so great was the way Stratton weaved in funny stories and witticisms that resonated with everyone in attendance, from millennials to Gen Xers to baby boomers. 

Following the keynote, and the expo hall ribbon cutting, the winner of the ESX 2018 TECHVISION Challenge Best-of-Show competition was announced. DMP's Virtual Keypad and Dealer Admin took home the top prize.

In addition to the Innovation Awards, attendees honored the recipient of ESA's 2017 Morris F. Weinstock Person of the Year Award, Tom Donaldson, during the Opening Celebration. “I’m honored that anyone would take a moment to think that I could stand with these gentlemen,” said Donaldson as he received the award.

The Monitoring Association's 2018 Excellence Awards were also announced and congratulated, including: Patricia Fody, Vector Security, Operator of the Year; Carmelo Mosca, Affiliated Monitoring, Manager of the Year; and Beth Bailey, ADT LLC, Support Person of the Year. Affiliated Monitoring took home the association's coveted Monitoring Center of the Year award.

Headed to ESX in Nashville?

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Wednesday, June 13, 2018

I am excited to be heading to Nashville next week for ESX 2018, especially with Security Systems News as the premier media sponsor once again this year. As always, we love supporting this key industry conference each year.

If you don’t find me at the SSN booth, roaming the trade show floor, or at one of the many keynote events lined up this year, come and check out one or both of the two interesting sessions that I will be moderating this year.

The first one, “Top 5 Disruptive Technologies Impacting The Commercial Market,” is on Thursday, June 21, from 8:00-9:15AM in room 101 D, and features two great speakers—Steve Butkovich, chief technology officer, CPI Security and Rodger Reiswig, VP, Industry Relations, Johnson Controls Inc. I don’t want to reveal what those “Top 5” technologies are just yet, but one will be cloud. You will have to come to the session to find out the other four!

The second session that I am moderating, “Proven Customer Care Programs: Tips For Getting Started” is on Friday, June 22, from 11:00AM-12:00PM in room 101 A, and features two excellent speakers—John Bazyk, vice president of sales, Command Corporation, and Philip Pearson, president, Smart Home Consulting Group. Each of these speakers has a unique perspective on the topic and brings a wealth of information, resources and guidance on how to engage with your customers, lower attrition and improve retention and profitability long term.

Looking forward to a great week of education, networking and fun—Pub Crawl anyone?

See you in Nashville!

 

ESX announces 2018 keynote speaker

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Tuesday, February 20, 2018

ESX recently announced the keynote speaker for its 2018 show in Nashville, Tenn. Scott Stratten, a disruptive marketer, best-selling author, and president of UnMarketing, will talk about the current business climate on the ESX Main Stage, Wed., June 20 from 11:30 a.m. 12:45 p.m. in Nashville’s Music City Center.

"Today’s business climate is changing at an unprecedented rate,” Stratten said in the announcement. “Every week, it seems there is a new strategy, social media site or technology that is a ‘must use’ or a ‘game changer.’ What we lose in this endless quest for the next bright shiny business object is that at the core of business while everything has changed, nothing is different. Trust, connection, consistency and service will always trump any new app to hit the market."

His presentation, titled “The Age of Disruption: Everything Has Changed and Nothing is Different,” is no stranger to the limelight. His clients include Walmart, Microsoft, IBM, Toyota, Pepsico, and Edelman.

“At ESX, he will draw on information learned while writing his five best-selling business and marketing books to teach ESXers about the Millennial myth, social media, and how customers make buying decisions in a digital world,” the announcement read. “Stratten’s presentation is one of three Main Stage events at ESX intended to educate, energize and inspire audiences to elevate their personal and professional lives.”

The ESX Opening Keynote Luncheon is sponsored by Security Dealer Network and endorsed by Security Systems News.

Registration for ESX is open and early-bird pricing is in effect for a limited time; Premium Passes are currently priced at $199 for a limited time.

ESX 2018 registration is open

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Wednesday, November 1, 2017

In mid-October, ESX opened registration for ESX 2018, to be held in Nashville, Tenn., June 19-22. “To open the event to even more industry professionals, ESX is launching registration with budgeting season in mind,” the announcement read.  

"It takes people to drive profits," ESX chairman George De Marco said in a prepared statement. "At a time when market competition has never been fiercer, it's important to invest in your people—to fuel their development. Launching registration early allows business owners and management to plan for ESX, while in budgeting mode. I urge you to think hard about professional development programming for you and your team — I'm confident there's no other event that can deliver the same impact to your business."

Additionally, ESX is currently offering its full-access Premium Pass at $199. The event will feature new technologies, perspectives ideas and best practices relevant to electronic security and life safety companies.

According to the announcement, “Educational programming will address such topics as: building sales teams, increasing leads, driving profits with doorbells, cameras and door locks, tracking top KPI's, customer care programs, creation cost analyses, organic vs. acquisition growth, disruptive technologies, cyberattacks, attracting and retaining operators, and more.”