Network Video Can Help Combat Economic Squeeze

With the economic downturn, retailers are being challenged to find new ways to do more with less — without compromising their bottom line. One often overlooked resource for helping stores curb expenses is their video surveillance (CCTV) system.

By moving away from outdated analog camera-based systems to network camera-based systems, retailers can save precious capital by sharing servers, storage modules and bandwidth with other data communications activity. But network video can do so much more to help retailers squeeze additional value from their investment in video surveillance.

Downsizing without upsizing risk. Retailers can augment lean in-store loss prevention staffing with eyes at a central monitoring station. Because the technology is networked, regional or central station staff can monitor network cameras remotely to track activity in high-risk areas. So even with fewer LP personnel in the store, retailers can still keep a close eye on aisles and checkout stations, on stockrooms and even security-tagged merchandise passing through doorways.

Centralized monitoring provides additional benefits such as ease of training, coverage for personnel taking time off and reduced turnover. Retailers can also assign these surveillance system experts special monitoring duties, such as keeping a closer watch on specific high-risk products or preventing organized retail crime.

Tightening store operations. Large retail chains that are rolling out network video technology are already reporting added value in the millions of dollars by using surveillance video to check on merchandising compliance and other activity. Instead of corporate or regional representatives traveling to the stores or requiring store managers to walk the aisles, staff at a central monitoring station can review live video to make sure locations are adequately staffed, correctly stocking shelves and displaying time-sensitive signage on schedule.

Corporate can also use surveillance video to remotely detect if employees are leaving customers unattended when they could be converting sales.

Adding a revenue stream from vendors. A number of forward-thinking retailers are giving some of their suppliers secure access to in-store video covering their particular product shelves to help them better stock and merchandise their items. Offering this valuable insight to the supply chain can strengthen relationships and possibly lead to better contract terms. It could also provide retailers with a potential revenue stream, as vendors might be willing to pay for such direct business intelligence.

Using cost-effective, best-of-breed components. Network video systems are built from best-of-breed components, which offers many advantages, including the ability to easily take advantage of newer technology (like higher megapixel cameras for greater coverage) or to move quickly to benefit from price drops for any system component.

Smaller retailers can leverage the technology by allowing cameras to perform sensor-specific tasks. For example, they can tie network cameras with onboard intelligence into fire, alarm and burglary systems for more comprehensive store safety and security.

Leveraging the breadth of products. Network video systems offer many choices for retailers transitioning from analog systems. Retailers can tie their existing analog cameras to network video encoders to reap the advantages of network video in stores equipped with older technology. Encoders enable the retail chain to bring all store systems — those with newer network cameras and those with legacy analog cameras — onto the same network infrastructure, which greatly simplifies system management and operator training.

These “hybrid” systems provide a logical transition to network cameras as older analog counterparts fail or when management decides it needs enhanced image quality.

As retailers deal with tightening budgets in this economic climate, making prudent investments that allow them to do more with less is imperative. Network video offers the opportunity to upgrade existing infrastructure, while at the same time increasing the effectiveness of loss prevention and making store operations more efficient.