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We visited Hikvision HQ

With 2.78 billion USD in revenues in 2014 and an annual growth rate of more than 60%, Hikvision aspires to become the first-ranked manufacturer of security systems in the world. The company was founded in 2001 and today it has 14,500 employees (5,400 engineers), more than 200 technology partners, 600 patents and 53 offices in China and the world. Thus, Hikvision made sure to be in position to offer to the market its complete, end-to-end security solutions aimed at individual vertical markets

By: Mahir Hodžić

 

After lengthy flights from all parts of the world, twenty-five nine editorial staff representatives from the security industry of the United States, Russia, China, Germany, France, Turkey, Poland, FinlandSweden, Bosnia and Herzegovina and other countries, gathered together at the invitation of globally renowned company Hikvision. A team representing our magazine found its place among them, which was a great honor for us. The gathering was organized in Shanghai and, on the following day, from there we set out on the trip to the company’s HQ in Hangzhou which is two and half hours away from Shanghai and it served as our place of residence in the next three days. It is interesting to note that these two cities themselves are home to more than 40 million people and that the industrial potential of the region is huge, so it is not surprising that the headquarters of the largest manufacturer of video surveillance systems in the world is located in this region of a large country such as China. The host, particularly its international marketing department team headed by Finn Wu and Ada Han, made great effort to welcome us at the highest level and make it possible for us to use our four-day visit to tour the factory, test laboratories, showroom, head office and booth at the China Public Security Expo (CPSE) trade show in Shenzhen which is dedicated to the security technology.

Current company HQ occupies 68,000 m² and it consists of two towers with 22 floors. However, a new 250,000 m² facility is being built and it will accommodate 11,000 new employees.

Complete solutions

The first day of our visit to the Hikvision HQ was marked by a press conference and a lecture during which we were informed about the company’s success and its further steps. It was emphasized that each market is interesting for them and that their presence is adapted to the needs and requirements of individual countries, so that that they do not offer the same treatment to the regions that require either IP or analog technology. The signal of the local market represents the basis of strategic and marketing decisions of the company. Hikvision is a manufacturer that provides complete security solutions with an average annual growth rate of 53% between 2009 and 2014, and with the export business revenues accounting for 26.5% of total turnover, while the share of sales of HD products in these revenues amounted to 75%.

The experience that the company acquired by working on large and demanding projects in the domestic market has become its main export product after their successful implementation. Hikvision established strategic collaboration with leading global companies in specialized sectors for the purpose of joint research and development projects, and these include Intel, Sony, Seagate, WD, Huawei and Apple, and it also established strong partnerships with distributors, system integrators and installers, as well as technology partners such as Milestone, Genetec and other software providers. The popularization of mobile technology and WiFi connection, as well as the ubiquity of intelligent terminals has laid the foundation for the Increasing demand for smart homes affected the increased demand for intelligent terminals, mobile technology and 4G/3G signal transmission. In this respect, this was followed by the development of solutions which would improve the quality of sensors, chipsets, lenses, monitors and signal transmission. Convergence of signals including audio, alarm, video, data, temperature and humidity was achieved by using intelligent technology and, in the future, it will become part of the video surveillance system offer. As it was emphasized, smart applications for buildings, logistics, cities, transportation and housing, along with the processing of large amounts of data through cloud technology, will offer a completely new approach to modern and programmed security systems.

In a specific way, smart city projects accelerate the development of management and control in the field of technology, applications and offered commercial models, and this will facilitate the civil services, city and travel management, and, ultimately, increase public safety.

Industry trends and the company’s response

For the second day, the hosts prepared a tour of the showroom, laboratory and company headquarters, and we also visited the factory plant in the afternoon. Company’s showroom features departments in which equipment and systems are presented, so we had an opportunity to get insight into a surveillance center, line of analog products, mobile video surveillance systems for security personnel, smart detection applications, face recognition, motion detection and movement detection, license plate recognition etc. Exhibition area includes overview of smart city solutions, VTM detection of objects and suspicious movements and activities, solutions intended for government agencies and organizations, smart building management, solutions for houses and apartments, cameras for sports, solutions for banks and other vertical markets.

In order to achieve the status of the leading security company in the world, Hikvision Research Institute was founded in 2014 in order to support innovative research and development of new products while taking into account market needs and innovative technology

More than 8% of annual revenues is invested in research and development. The research in this sector focuses on perceptive technology, intelligent technology analysis, data storage, cloud services and multimedia technology.

Continuous innovations led to the release of products such as 4K network cameras (8 MP/12 MP), H.265 cameras and NVRs, Smart 2.0 product line, coding technologies such as H.265+ and H.264 + for better efficiency and usage of bandwidth. With the introduction of CMMI (Capability Maturity Model Integration) model, they sought to improve the management of research and development.

At Hikvision, quality control is a comprehensive process which, apart from design and quality assurance (DQA) which involves more than 500 product testing engineers, also includes the material quality control, monitoring of the production processes and testing and quality checks before market placement.

Laboratory and test centers account for a significant share of the company’s success, so we had the opportunity to visit a laboratory for testing of equipment and departments for testing of sound, human voice and the influence of temperature, audio-video testing laboratory, departments for testing of wireless communication and radio frequency signals. All of these technologies undergo several months of testing after production and before market placement. Equipment and devices undergo tests involving pressure and movement in real-life conditions, so all data collected during tests are exchanged online via software, and the development department gives its final opinion before market distribution.

Growth and only growth…

Entire production output of the companies comes from two production facilities in Hangzhou in the area covering 100,000 m², and from a new 320,000 m² facility in Tonglu. Entire production output is automated by means of SMT (pick-and-place machines) robotic equipment and technology. The company’s manufactures more than 90,000 network cameras, 65,000 analog cameras and 5,000 PTZ dome cameras and 28,000 back-end products on daily basis. We had the opportunity to visit two floors at the factory that produces 19 different components. Behavior of employees who usually work with the German-made Siemens machines is regulated according to the 6S (sort, stabilize, cleanliness, comfort, standardization, safety) regulations used by Japanese companies.

Globalization

Globalization and localization represent the path that the company will take in the future by means of interaction and integration of that which is global and local with unique solutions. The focus of Hikvision’s business will also be its media partners, as the company, in an effort to make society more secure and achieve more success, is aware that in the framework of the development strategy and being on the “front line” of sales and the market, the media can play a major role. By establishment of new branches, increased manufacturing capacity and completed product lines and services, the company will continue to be strongly committed to its core mission – meeting the needs of its partners.

SICUREZZA 2015: TECHNOLOGY TO PROTECT US

New market areas, products and services from top industry players with tailor-made integrated solutions. More and more on offer, and double-digit (27%) growth in foreign exhibitors
Milan, 29 September 2015 – SICUREZZA 2015, the international biennial security and fire prevention fire, will run in Italy, at Fiera Milano (Rho), from 3 to 5 November.
In the run-up to the first time the fair is being held during an odd-numbered year, SICUREZZA remains a key appointment for security and fire prevention professionals. This time it is bigger and better, with 10% more exhibition space and, most notably, a 27% rise in attendance by international exhibitors.
SICUREZZA 2015 is the first step along a path that will continue in the next editions, in 2017 and 2019, with a greater number of market areas represented to reflect an increasingly evolved and integrated market with increasing international reach.
The presence of major market leaders at this edition confirms SICUREZZA as the leading Italian event. The goal now is to become the go-to event for the entire Mediterranean Basin and southern Europe. A boost in investments outside Italy, partnerships with Europe’s main media and above all increased incoming buyer planning are all underway.
A hundred and fifty top hosted buyers (40% more than last time) are coming to this year’s show. They’ll arrive with high budgets and executive decision-making powers. Through EMP – Fiera Milano’s proprietary business matching software – they are put directly in contact with exhibitors before the exhibition starts so they can set appointments and then take meetings at the stand. This creates tangible opportunities for all enterprises attending the show to expand their business and meet the world right here in Milan.
On the supply side, all sectors of the market have upped the ante. Video surveillance continues to go from strength to strength: most of the top Italian and multinational names are all here. A wider selection of products for passive security is also on show, in particular locksmiths, who this year are out in force with brands and offers of great interest such as the latest-generation, electronic locks.
Advanced products will be on show for access control; in burglary prevention there are bespoke solutions for every situation, from the home to the office right through to sensitive environments; fire prevention and surveillance have attracted a number of top players in Italy.
IT-based solutions continue to grow in importance, paving the way for a future of potential opportunities with integration into other sectors and an embrace of IoT, the Internet of Things. Massive opportunities lie in managing and monitoring technology online, and a number of interesting state-of-the-art solutions are on show.
SICUREZZA Drone Expo is a brand-new addition this year, dedicated to the use of drones for security/safety-related purposes. Many of the most interesting and beneficial uses of this agile and versatile technology are in private and public security.
Security managers, designers, installers, public officials and law and order professionals will all find tailor-made solutions for every sphere of application: banks, offices, transport, local stores, mass retail outlets, residential, critical infrastructure and smart cities.
In addition, adding more value to security where it is most needed, SICUREZZA 2015 plays host to many different vertical initiatives dedicated to a burgeoning world of applications that help industry professionals make the best choice for their needs and understand the potential of the emerging technologies on show.
EXHIBITION INITIATIVES
THE EVOLUTION OF SOLUTIONS FOR THE RETAIL TRADE
Focused specifically on security solutions for the retail trade and large-scale distribution, the Security for Retail Show (Hall 22) is being staged for the first time at SICUREZZA jointly with the Italian magazine essecome/securindex.com.
Aimed at trade professionals in the retail sector who are hunting for tools to protect their business, the area will encourage dialogue on these problems and propose customized solutions for every type of point of sale, presenting technologies and vertical solutions in a single context.
As well as showing integrated customized proposals and new ideas for linking security to the way customers are welcomed in points of sale, this area – thanks to a rich program of talk-shows, seminars and workshops organized by essecome/securindex.com – will provide an interesting chance to inform and train retailers, putting them in contact with the people who manufacture security systems and services.
INCREASING INTEGRATION BETWEEN ICT AND SECURITY
Offering a privileged overview of the increasingly digital nature of the sector, SICUREZZA and the Italian trade magazine Digitalic are once again organizing ICT Security Village (Hall 24). In a world where security tools are invariably digital devices linked to a network, which communicate with a server and a hard disk and are connected to the Internet, new expertise and new solutions are needed to protect surveillance tools and the data they record adequately. Digitalic Village will be offering concrete examples of the increasing level of integration between ICT and security and will be proposing avant-garde solutions in various fields, from recording on hard disks and memories, and protecting secure networks to protection software. From secure cabling to memories that can defend themselves from attempts to steal data, and software and systems to protect corporate assets, many interesting technologies of the latest generation will be presented in this area devoted to digital security.
THE INTELLIGENCE AND THE SECURITY OF THINGS
Another interesting vertical area will be the one focusing on IoT: the intelligence and the security of things (Hall 24): With the advent of the ‘fourth industrial revolution’, things have become smart and can communicate with each other, and everything nowadays –  whether we’re talking about infrastructures, the industrial world or private individuals –  is linked to a digital device and a network. In this context, the theme of security becomes a priority. In fact, not only have physical and logistical security converged, but security in every sphere has become a key factor for ensuring protection and constant monitoring, but also for improving efficiency and performance. With the aim of focusing attention on the future of the market, the IoT area will be bringing together companies which, even today, are taking effective steps to solve the security problems which need to be tackled, in the light of increasingly widespread intelligent devices and products. Enhancing the content further, Digitalic will organize a conference involving top experts on IoT and security, and technical workshops where case histories will be examined and future opportunities will be discussed.
WHEN SECURITY TAKES TO THE SKIES
Appearing for the first time at the show, SICUREZZA Drone Expo (Hall 22) is an initiative entirely devoted to the use of UAVs (Unmanned Aerial Vehicles, or drones) for the purposes of security and safety. It has been organized by Mediarkè, an Italian company which, for a couple of years now, has been promoting professional events of this kind in the sector, in cooperation with the trade magazine S News. At this group event, which will take place in the halls of SICUREZZA 2015, leading Italian and foreign companies specialized in the production of Unmanned Aerial Vehicles (UAVs), or which offer services employing drones, will be taking part. Finally, a special ‘flight area’ will be set aside for demo flights involving multirotor drones.
An initiative that looks at the future of security, a sphere in which UAVs are finding more and more applications, from the surveillance of flows of migrants in the Mediterranean to controlling critical infrastructures and major events, from protecting major monuments or art heritage to monitoring landslides and forest fires. And, very soon, other applications will be added to the list, such as emergency intervention in places where a natural disaster has struck, controlling critical situations from the air and even transporting drugs to isolated areas.
PROFESSIONALISM IN THE PIAZZA, BUSINESS AND HOSPITALITY
Once again SICUREZZA welcomes the Ecosystem Village (Hall 24), a perfect “piazza” for meeting up and finding out the latest industry developments.
An exhibition space is dedicated to the ecosystem of Milestone Systems’ partners, who will be showcasing the latest technologies and technical training, events and networking opportunities. The central bar is a perfect place to meet, to build and to consolidate business relations by combining hospitality and professionalism at informal or business meetings, and to share products or map out future ventures.
FROM THE PROBLEM TO THE SOLUTION.
THE BEST SOLUTION? LET THE VISITORS DECIDE
Technological innovation and advancement have prompted the industry to realize that it is necessary to go beyond an individual product-based approach: the future lies in integrated solutions, and successful case histories can help us understand how.
This is the idea that spawned the Solutions Gallery, an initiative organized by the Ethos Media Group, publisher of a&s Italy, which is showcasing 360-degree class-leading solutions (fire protection, burglary prevention, access control, building, video surveillance, etc.) in eight different vertical markets: transportation (rail, sea, air and road), retail, banking, urban security, healthcare, building, hospitality (hotel, holiday resorts), plus a miscellaneous category.
Participating companies illustrate their solution starting with how it caters to customer needs, including a case-by-case description of the location, installation type, key aspects of the system, main functions, what brands were used for the various components, and the results and benefits achieved.
Awards will be presented on SICUREZZA’s final day to the three solutions that garner the most votes at the event and online. The initiative is sponsored by sector trade associations.
Visitors to SICUREZZA will find quality and innovation, new solutions, training and increasingly-interactive spaces to discuss and leverage ideas and professionalism.
The show runs from 3 to 5 November 2015 at Fiera Milano.
THE SECURITY TO…
…SAVE TIME AND MONEY
Pre-register at www.sicurezza.it and buy your tickets. All it takes is a few clicks to avoid the queues and save 50% on the cost of entrance.
…ARRIVE SMOOTHLY AND EASILY
SICUREZZA 2015 is at halls 22 and 24, in the fieramilano exhibition centre, Rho.
We advise parking in the P1 and P2 car parks, near the western entrance (Porta Ovest).
A free shuttle bus operates to and from the metro and rail link stations for visitors who travel via public transport. Thanks to an agreement with Trenitalia, some of its high-speed trains from major Italian cities will be stopping at Rho Fiera Milano station. Download the list from www.sicurezza.it
…ALWAYS BE CONNECTED
SICUREZZA is also on twitter and LinkedIn. Follow the new LinkedIn showcase at https://www.linkedin.com/company/sicurezza-milano.
Fiera Milano Press Office
T +39 024997.6214 F +39 024997.7174

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a&s Adria – professional security magazine for providing total security solutions is a monthly circulating publication and a licenced representative of Messe Frankfurt New Era Business Media for Adriatic region, which consists of following countries: Bosnia and Herzegovina, Croatia, Kosovo, Montenegro, FYR Macedonia, Slovenia and Serbia.