ROI=Greater Value for the User

Access Control & Security Systems (09/05) Vol. 48, No. 10, P. 40 ; Gompers, James

Return on investment (ROI) is a concept that the security industry can leverage to help provide end users with more value. When calculating ROI, any factor that causes a positive impact on an end user's bottom line should be considered; these factors can include lower operating costs, lower insurance costs, reduced initial cost of ownership, reduced long-term cost of ownership, reduced need for labor/personnel, improved efficiencies, time savings, and less exposure to liability and loss. An analysis of ROI can demonstrate to potential customers just how valuable a security technology can be. There are several types of security technologies that particularly benefit from an ROI analysis, including radio frequency identification systems (RFID). An ROI on RFID technology consists of comparing changes in losses based on inventory audits, and this simple type of ROI calculation has allowed many security vendors to sell their RFID systems. The CCTV and Internet protocol TV (IPTV) sectors offer ROI, as do IP cameras, optical turnstiles, and smart cards. The ROI benefits related to smart cards include using smart cards for multiple applications, such as access control, parking, loyalty programs, biometrics, and point-of-sale. Security vendors and distributors should work with dealers and integrators to provide ROI resources and tools, because end users will eventually begin expecting cost justifications when they are introduced to a product.

Security Management Daily – October 5, 2005