A distributor of security and home automation devices that use the internet of things

Abstract

Integration, Intelligence, and the Internet of Things within the Security Industry. This is a Business Venture Proposal for a bolt-on business to Elvey Security Technologies, an existing company distributing security products to installers of such products. Context is provided explaining the company, where and how it operates, and the industry within which it currently operates. A link between Elvey Security Technologies and the new Business Venture offers synergies and opportunities that will benefit the new entity in the short term and the business as a whole in the long term. An analysis of technology in the security industry, as well as the relatively new Internet of Things (IoT) technology and devices, is provided. The Proposal refers predominantly to the residential market (not commercial/industrial companies and businesses) because this is the key target market for the new business. The current status of the security industry is discussed and how the IoT is shaping its current and future prospects. The end-user of the technology is analysed as the driver to making the technology and related services necessary and of a potentially lucrative industry. Studies and market research performed by large corporations and consultancies are offered as support for the Business Venture. Trends and spend on IoT devices and services are briefly introduced to underpin the opportunity. Interviews and surveys are conducted with other distributors and customers (installers of security systems) within the security industry. Market research on related IoT in the retail sector also presented. Market analysis from a segmentation of the prospective customer base and route to market, as well as from active competitors, is given. The value proposition is evaluated in relation to proposed cost structure, recurring revenue streams, and resource requirements to prove sustainability of the business and how it will evolve within this fast-paced environment. Future plans for later sustainability of the Business Venture are also presented. Business models employed by distributors and suppliers of technology are challenged by the current problems being experienced and changes that have been introduced within the security technology industry. New ways of creating revenue streams through the use of IoT are introduced. These proposed new revenue streams are a departure from the conventional business model and are accompanied by market research and case studies in which these i models work well and have been successful. The associated risks and their required mitigation actions are described. The need for not only the technology and applications, but also the back-end services that will be provided by the business, is demonstrated. Discussion is presented on how these needs are currently met and, more importantly, how they are not being met and plans to address the deficiencies. A live case study is provided to articulate the Business Venture in action.