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Regal broadens its strategic vision

Hi-Tech Security Solutions spent some time with Risco’s Itzik Baron and Regal’s Mel Labuschagne at the recent Securex 2008 exhibition at the Sandton Convention Centre, with a view to gaining some insight into Regal’s positioning of Risco’s products in the South African market. Risco has a rich history in the South African security industry, stemming from its Rokonet roots in alarms and intrusion detection, whilst Regal Security itself is growing steadily, and becoming a significant player in the local market.

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Hi-Tech Security Solutions: I would like to get some sense of where Risco has come over the last several years and where it is going, from a global perspective and then try and marry that to what Regal Security is doing in South Africa and what its ambitions in South Africa are.

Itzik Baron: The company started with Rokonet in 1980. The decision to broaden our strategy to incorporate a new integrated strategy started in 2000/01, and by 2002 we had a clear vision based on technology leadership. We did not want to simply provide a product, but to raise the level of service by providing a more integrated service offering.

Today, Risco’s has four divisions ­– Integration, Intrusion, Access Control and CCTV – which provide integrated security, building management, and IP/GSM receiver software, sophisticated detector technologies, and IP-based security and access control systems – which can be found in commercial, industrial, institutional and residential installations around the world.

HSS: Let us take a step back and revisit the Rokonet roots of the company. To what extent does the intrusion market still drive Risco’s innovation? If at all?

IB: Intrusion is still the core of the company but we are aiming to touch all areas of security including fire, access control and CCTV, primarily through acquisition as we will not try to develop everything from scratch.

HSS: Something must be underpinning that vision, Risco’s strategic intent. What guides Risco to make the acquisitions in the areas that it does?

IB: We believe that IP and integration is the future.

HSS: How are customers responding to this more holistic integrated solutions offering? Are you finding that your solutions are customer-driven, or are you finding that you have to really educate customers about the sophistication of your solutions?

IB: It is very much market dependent. Some markets are slower in this development, so we need to educate customers more. At the higher end of the market, understanding is more developed.

HSS: How do you see the South African market? In the context of your presence in Europe and then the Americas? Is South Africa seen as a progressive market in adopting these technologies or is there a lot of education that needs to take place?

IB: With regards to the high end (like banks) in some cases I see them as more advanced than many of our other markets. They are looking at smarter solutions, so there is definitely advanced thinking. At the lower end of the market, it is different.

HSS: Mel, from your perspective, how have South African users taken to the evolving Risco products over the years?

Mel Labuschagne: Risco themselves, in terms of R&D, have been really assertive. R&D in companies can take a long time, but Risco has resourced themselves really well to make quick progress, in terms of what the South African market demands.

We have found that whilst Risco positions itself quite strongly for intrusion, it has really made good headway with respect to access control, is well advanced in terms of fire, and CCTV, and its SynopSYS software already offers a real convergence platform.

So certainly, from our point of view, we feel that they are one of the more progressive security companies in the world. They have delivered on what they have promised, which is quite admirable.

HSS: To what extent do you think the market is beginning to see Regal/Risco as being a supplier of the most sophisticated solutions, not simply the intrusion based solutions of its formative years?

IB: If you look at how Risco as a company has changed over the years, you will see too, that this is mirrored by similar changes at Regal. We see the fit as perfect, as Regal evolves to offer services which perfectly match Risco’s vision of the future.

HSS: Not only has Regal evolved in terms of its service offerings in recent years, but its footprint is much different than it was five to 10 years ago, and its customer base is changing too. Regal has traditionally had a predominance of mid- to lower-tier installers as customers, but is increasingly looking at playing in the higher-end of the market. Do you get a sense that the lower-end of the market is attuned to the sophistication of Risco’s products? Are we falling behind the technical innovation curve, in terms of our ability to install, or is the market moving with technology trends?

ML: It is a very good question, and whilst we are fully aware of the implications of us making the strategic change in direction (to cater to the higher-end customer), first and foremost, Regal will never forget its roots.

In the last two years, we have opened 11 new branches, so as to get closer to the entry-level market. Training remains our top priority for staff, and users/installer of our products.

We have also employed product specialists to look after the brands, to look after the training, and to provide the necessary technical support.

IB: Today the gap between competitors is very narrow, products are technically all feature rich, and whilst I can come with some few new features, today, very soon other vendors will have something similar, and more. So the differentiator is simple. It is service.

HSS: Are there any specific products that you launched at Securex 2008?

ML: Yes, the new Agility 2-way flexible wireless solution, is a first in South Africa.

IB: If I can say a few words about Agility. It is targeted for residential use, and comes with IP, GSM and PSTN communications options. Interestingly in Europe, the demand is only for IP communications, they do not touch the other options (PSTN, analogue lines, GSM). With ADSL becoming more readily adopted, and prices dropping, we expect that these trends will be true in South Africa too. Perhaps not immediately. But the benefits of IP are obvious.

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