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ESX 2019, one the key security industry conferences, wrapped up last week in Indy, with the Electronic Security Association (ESA) and The Monitoring Association (TMA) organizing another great event. As the premier Media Sponsor for ESX each year, Security Systems News is always proud and honored to support the conference.

As I said in my introduction of the opening keynote, it is inspiring to be in a room filled with so many professionals who are so “passionate” about security. This passion is what differentiates them from others, and makes them so successful at what they do. This passion for security is also what made ESX 2019 stand out.

One of the ways that SSN has tried to bring better and more-timely content from key conferences like this is through live videos and social media. Throughout my wrap-up and SSN Managing Editor Ginger Schlueter’s wrap-up coverage you will find links to live videos (mostly SSN Live Twitter Feeds), as well as footage of the SSN Video Interviews that were done on the Expo floor at the ESX Central Stage.

The conference started with what has become a staple at ESX, the Open Exchange Breakfast, which always seems to deliver a high-level content focused on industry specific topics. This year was no different, as ESX Chairman George De Marco moderated an interactive panel that included Alex Pachikov, Founder, Sunflower Labs, and Nate Williams, Entrepreneur-in-Residence, Kleiner Perkins.

Williams, who founded UNION Labs, spends his time these days discovering the next big businesses at the intersection of Connectivity (IoT), DataScience (AI/ML) and Autonomy/Automation as an Entrepreneur-in-Residence at Kleiner Perkins.

Williams said that “security” is one of those areas that “couldn’t be hotter” as more and more IoT devices are connected and exist on a platform that must be secured. The sensorfication of security, he noted, will continue at an ever-increasing pace, and security is going to need to keep up, even stay one step ahead. And as Silicon Valley continues to innovate in the space, partnerships with these companies can be very advantageous to more traditional players within security.

He also pointed to the potential to mine and use all of the data that is being generated today and in the future — from our phones, our cars, our homes, cities, etc. — pointing out that the “breadth and depth of it is enormous,” noting that the data can help security professionals run their companies smarter and better serve their customers in the process.

When it comes to the truly smart home, Williams pointed out that there is still a “divide between the dream of the connected home and reality.”

Pachikov, who is a founding member and longtime leader of business development at Evernote, has since become a specialist in emerging trends in the mobile and robotics industries. His Sunflower Labs’ company features an autonomous drone-based security solution that he demonstrated for attendees, showing just how far drone technology has come over the past few years. You can tell that he has spent years perfecting the system, overcoming many challenges that first existed for this technology, such as flying in bad weather, which he showed the audience how he was able to overcome.

Pachikov said he believes the “next revolution will come from autonomous drones” because they offer many unique advantages, including:
•    Coverage of large properties (up to 150m radius);
•    Tracking of moving targets;   
•    Proactive deterrence; and
•    Standalone or integrated with existing security systems.

Overall, he said, “The time is right and technology is ready … I am excited to bring this to market.”

As Williams pointed out, ultimately it is about “capturing your customer” and finding out how to address their “pain points” and provide the right solutions for them, whether it is through technology, or services, or both. Pachikov’s drone system is a good example, he said.

Another highlight of ESX this year was the Opening Keynote Luncheon: Making an Impact, which was delivered by the amazingly charismatic Dr. Rick Rigsby (click here for the full keynote), who spoke about how important it is for us to get back to the basic values — kindness, compassion, ethics, morals, decency, to name just a few — that many times get overlooked in today’s “look at me” society we live in.

Dr. Rigsby referred many times his book, “Lessons from a Third Grade Dropout,” which is based on the timeless common-sense wisdom learned from his father, who as a third grade dropout taught himself how to read and write, all while working for his family at an early age, and supporting and guiding the moral compass of a large family as an adult.

Rigsby was quick with inspirational and thought-provoking quotes throughout his gripping presentation, where he asked attendees to pull their heads out from the insanity of the day-to-day and look at the bigger picture that is life itself. My favorite of his witticisms — “Ego is the anesthesia that deadens the pain of stupidity.” For more on Rigsby, I highly suggest you give his keynote a listen — just make sure you have a Kleenex handy!

Moving to the Expo hall, I was able to have some great conversations with many of the exhibitors as well as with many leaders within the industry during the SSN Live Interviews that were conducted on the ESX Central Stage. Below is a short recap and link to the interviews that I did on both days of the Expo floor:

Tuesday, June 4

Ivan Spector, President, and Celia Besore, Executive Director, The Monitoring Association.
During our conversation, these two key leaders of this important organization shared their thoughts on what the association is focusing on these days, how monitoring companies and stations are evolving and what is to come moving forward for professional security monitoring.

Gretchen Gordon, President, Braveheart Sales Performance
Be sure to check out my enlightening conversation with sales performance guru Gretchen Gordon, who shared many secrets of successful companies, including how top companies today are finding and retaining good employees.

Stan Martin, SIAC
It was nice to sit down with the head of the Security Industry Alarm Coalition and get an update on what SIAC is doing to combat the Sandy Springs Alarm Ordinance that has sparked such controversy over the past year.

Jeremy Mclerran, Sr. Director of Marketing at Qolsys Inc.
During our interview, Jeremy tells SSN about the company’s latest panel, which took home First Place in the ESX TechVision Challenge, a culmination of the ESX Innovation Awards, which were given out at the show.

Mark Hillenburg, Executive Director of Marketing, DMP
Mark speaks with SSN about DMP, which took home two ESX Innovation Awards this year.

Wednesday, June 5

Dina Abdelrazik, Senior Analyst, Parks Associates
SSN speaks with Dina about where the smart home is today, including the latest Parks research on smart home adoption, the future for smart home automation and what dealers and monitoring companies need to do to stay on top.

Merlin, Guilbeau, Executive Director and CEO, ESA
Check out my conversation with the head of ESA, who shares with SSN some details on the latest initiatives the organization has going, including a workforce development initiative with SIA that couldn’t come at a more critical time, as this is a major concern for everyone in the industry.

Mike Jagger, President, Provident Security
During my talk with a former ESX keynote speaker who runs a highly successful security company, Jagger shared some refreshing views on the industry that may alter the way you look at topics such as false alarms.

Steve Firestone, President, Select Security
During my talk with the head of one of the most successful and fastest growing companies in security today, Steve shares some of the secrets of Select’s success, as well as some of the areas of focus for ESA, which he serves on the Board of Directors for and helps guide strategy.

In addition, sitting in on the many educational sessions, and having the opportunity to moderate one myself, I was reminded of how important a conference like ESX is in helping to define where we are as an industry, and how we can continue to push the industry forward together — as an industry.

In my session, Installation Performance: On Time, On Budget, On Par for Quality, I had the pleasure of leading a great panel that featured Mike Williams, Project Manager, Security Pros; Cindy Ponder, General Manager, Bates Security; and Shuvankar Roy, Vice President, Xfinity Home.

Each of them pointed out in their own way that the customer is still king, and getting the job done right for them is the first and most overriding priority. Ponder, for example, outlined how the company was able to “create efficiencies and best practices within sales and operations” that have lifted the company to that next level, cutting a 16-week backlog for commercial jobs in half, “empowering staff and lifting morale of staff,” which as she pointed out, is the goal for any company today.

It is sessions like this and speakers like Rigsby that make ESX such a memorable experience.
 

It’s my first visit to Indiana and it’s amazing to be spending my time at ESX 2019 learning about new trends and happenings in the electronic security industry. The day opened with a breakfast panel: Nate Williams from Kleiner Perkins and Alex Pachikov of Sunflower Labs, both of which highlighted focusing on the customer as well as the customer experience as it relates to security solutions created and offered. Education sessions followed and then Rick Rigsby took the stage as the luncheon keynote speaker, who divulged getting back to the basics when it comes to excelling in the security industry as well as life in general. Rigsby’s motivation that he shared with the audience can be experienced on Twitter @SSN_Ginger. 

Once the showroom floor opened, our Editor, Paul Ragusa, took the central stage, interviewing leaders within the industry. The knowledge shared can be seen on my Twitter @SSN_Ginger. 

Tomorrow’s agenda is filled with time on the showroom floor, education and more motivational keynote speakers, so stay tuned for a recap of things learned at ESX 2019 and be sure to follow me @SSN_Ginger for live Tweets and videos of the action! 

The smart home continues to grow in awareness among homeowners, with approximately 22 percent of U.S. Internet households reporting owning a smart home device in Q4 2018, up from 17 percent in Q4 2017, according to The NPD Group. Alongside ownership growth, 2018 saw an 18 percent dollar sales growth in home automation devices compared to 2017, and NPD’s latest Future of Tech forecast expects the category to reach $2.5 billion by the end of 2019.

According to the Connected Home Automation Report from NPD’s Connected Intelligence, smart home device awareness has reached 42 percent among non-owners; but growth in awareness is beginning to slow, indicating that the marketplace is maturing. Additionally, the report shows the largest increase in ownership occurred in the 35-54 age bracket, from 16 to 22 percent, a sign that the smart home concept is shifting from early adopter to mainstream consumer.

This is further evidenced by the broader scope of retailers through which purchases are being made. In fact, consumers are increasingly buying smart home devices from cable/telco providers, home improvement stores and pure play online retailers, according to the NPD Group. Out of the more than 5,000 consumers surveyed who own a smart home device, the research firm found that 13 percent indicated making at least one smart home purchase through their cable/telco provider in Q4 2018, up 6 percentage points from year ago.

The home improvement channel also realized sales growth, particularly in the smart entry category, where 27 percent of consumers reported purchasing in this channel in Q4 2018, up from 16 percent a year earlier, NPD Group found. Finally, sales through pure play online retailers saw increases in smart power and smart lighting, with 51 and 38 percent of respondents indicating purchases were made in those categories through this channel in Q4 2018, up from 38 percent and 30 percent year ago.

“As consumers become more familiar with smart home products we are seeing that they are more open to purchasing through a wider variety of channels,” said Weston Henderek, director, industry analyst for NPD Connected Intelligence. “This demonstrates the importance of having strong retail distribution across a wider number of retailer categories for smart home OEMs.”

The NPD Group Connected Intelligence Connected Home Automation Survey is based on consumer panel research that reaches over 5,000 U.S. consumers, aged 18-plus from diverse regions and demographical backgrounds.

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market.

For more information click here

With ESX 2019 just a few weeks away, SSN caught up with ESX Chairman George De Marco to talk about the upcoming conference and expo in Indianapolis, June 3-6, his views on the industry and what he thinks are the greatest challenges and opportunities within security today.

SSN: As the Premier Media Sponsor for the ESX Conference again this year, Security Systems News is excited to support and participate in the conference and expo. What are you most looking forward to at this year’s ESX Conference?

De Marco: Every year, I look forward to reconnecting with security professionals from across North American to get insights on their business challenges and near-term opportunities. However, the Indy Experience is top of mind for me. I’m very excited to head to the Indianapolis Motor Speedway for a tour and an opportunity to jump in a pace car for a quick trip around the track, especially just after the Indy 500 takes place at the Brickyard.

SSN: What do you think are the some of the key benefits of attending ESX? What do attendees have to look forward to this year?

De Marco: The key benefits for security professionals are education, networking opportunities, and quality conversations with exhibitors. For education, our peer-developed and peer-delivered content represents some of the best in the industry … it’s an opportunity for security professionals to gain knowledge about the trends, opportunities and challenges in the industry, including learning best practices from industry thought leaders. Our networking opportunities allow security professionals to spend time with their peers and colleagues in informal settings to talk shop and allow for deep conversations on how to solve everyday problems with real solutions. In addition, the exhibit hall is where dealers and integrators will have quality conversations on ways to grow revenues and improve profits.

SSN: You have some exciting keynote speakers this year. Can you talk a bit about each one and what they bring to a show like ESX?

De Marco: Every Main Stage session brings something special to ESX, whether its inspirational, business-focused, or addressing the changing competitive landscape. The OpenXchange begins the Main Stage journey with a drone company founder who has a unique perspective on security as well as an Entrepreneur-in-Residence from Kleiner Perkins, a venture capital firm that specializes in investing in incubation, early stage and growth companies.

The Opening Keynote, Dr. Rick Rigsby, will highlight a profound message about rediscovering what is really important and meaningful for organizations to consider. The General Session centers on a compelling message from Kevin Brown, called the Hero Effect, giving us insights on what it takes to reach beyond what is required and do something remarkable — personally and professionally. And our Closing Keynote focuses on taking security to the next level. A Secret Security agent and a Director of Safety from the motorsports racing company will illustrate a process to change our perspective on how we approach security, especially in the workplace and in schools. In addition, during the Closing Keynote, we will recognize recipients of ESA’s Scholarship and TMA’s Public Safety Award, including SIAC’s PDQ and Moody awards.

SSN What do you think are the top trends — technology and otherwise — impacting, shaping and affecting the industry today?

De Marco: I think the future of interaction with security systems and connected devices is beginning to take effect, from voice-recognition and voice-enabled technologies. As the interaction of voice evolves into a more natural experience for humans with their computer counterparts, the adoption of smart home devices and security-related products will grow within the home, at work, and on the road.

The definition of monitoring is being redefined beyond just dispatching police or fire services. As next-gen monitoring evolves, new services are being developed that provide consumers and businesses with personalized monitoring capabilities for their specific needs, like self-directed and on demand monitoring options and concierge-type services.

SSN: What are some of the most notable challenges — disruptive factors — for security pros today and how will ESX address these and help them to overcome them?

De Marco: I believe false alarms continue to impact the industry, highlighting the need to use technology to find a better method that significantly reduces false dispatches. With the help of video using AI and machine learning capabilities, metadata that brings context to data received from connected sensors and mobile devices and next-gen monitoring processing, the combined methodologies will greatly reduce false dispatches over time.

Our educational tracks deliver ideas and real-world solutions that help mitigate the effects of disruptive technology, offer innovative go-to-market strategies, and survive the current challenging workforce environment.

SSN: What do you think is the overall state of the industry and the forecast moving forward?

De Marco: I believe the industry has some interesting challenges ahead, especially as the competitive landscape unfolds. Disruptive companies, like Amazon and SimpliSafe, as well as the 3g sunset, margin compression, creation multiples, and the cost of customer retention programs play a major factor into lenders and buyers’ valuation methodology, which are all beginning to contribute to downward pressure for acquiring RMR contracts. In recent years, there seems to be a pivot towards commercial security and fire systems by traditional dealers and alarm companies.