Homeland Security – Marketing Point of View

Homeland Security – Marketing Point of View

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17404389_sBy Lova Drori

Since 9/11 and especially over the past decade people concerned with defense and security are dealing with different axioms involving Home Land Security (HLS) that occupy them both morning and night. Some of the axioms, which require deep examination, are:

♦ Countries around the world are going to increase their HLS budget at the expense of defense and other budgets.

♦ There is a lot of money to be made in this business and security companies that want to sustain continued growth must turn some of their activities into this direction despite the problem of reduced defense budgets.

♦ Defense Industries must update their existing technology anyway and should move into this area of business.

Before examining the axioms, let us try to define what HLS involves. In practice, HLS can be generalized to include almost everything elementary relating to security like weapons, local policing with radio communications, simple television cameras  to more sophisticated options like high boundary fence detection and monitoring means including active measures against path electricity, and firing systems.

Defining areas of ​​operation is usually set by the user in many cases. Often times, the potential customer and their executive bodies have a very different definition of what they require or their definition is not necessarily clear. Apparent confusion, or sweeping generalization, can be seen in every trade magazine publication dedicated to the subject. It’s possible to find anything from a pistol to air defense systems or barbed wire to manned or unmanned integrated air, sea and land detection systems and controls.

If you are trying to identify a customer the first rule of any marketing plan must be observed in order to make a sale.  Often times that is not easy when it comes to HLS. It is frequently found that there are no central bodies responsible for the issue of HLS, even if such a government office is called by that title like the USA.  In the majority of countries the definition of “security issues” is more appropriate than the general classification of “HLS.”   A dealer in security issues will find that ten to thousands of entities can fall under this classification.  In the U.S. for example there are at least some relevant entities whose interests fall under this definition. When trying to find funding sources or regional governments like a State or City you will find that most of their budget is operational and the procurement budget deals with everything from general security to security enforcement measures.

A small enough number of security programs exist in appropriate settings which in my opinion, reflects on the bombastic use of a heading like “homeland security.” These will include the high fence built between the U.S. and Mexico, control of the Amazon region in Brazil and Peru, system control and security at sea and beach areas where huge oil reserves were discovered in Brazil, as well as the border fence between Egypt and parts of the Western Territories Green Line of Israel. Setting up a fence between Israel’s northern borders with Syria is a security system which is more than HLS.

Brazil was mentioned twice but we can add another example for that country as well.  There is the matter of securing the Olympics and the World Cup which is expected to take place there in the coming years.  HLS started with grandiose plans like an air defense system against assault, similar to the events on 9/11.  In the end I believe command and control systems were decided on along with a lot of policing. Is this truly HLS? I wonder.

In relation to the axioms listed above:

♦ Security budgets will continue to rise due to the increase in global terrorism and homeland security issues.

♦ Finding money for HLS projects and receiving orders will not be a simple issue. If budget money exists those who will make decisions will do so based on their ability to define a designated procurement program.  This is unlike defense budgets where it is easier to identify new procurement programs.

♦  The traditional security industry has the knowledge and appropriate technology that answers security requirements. However, while the  number of those competing on active security projects involves a small number of competitors (generally less than ten or a lot less), the security industry could find itself facing dozens of competitors, some with standard commercial technology (cheaply made and mass produced) as well as facing a wide number of decision makers. It is not a simple matter as we are not dealing with the same rules of conduct and often times are facing an order that was made by an entity that doesn’t recognize the differences between something that meets his needs to that which looks good and is inexpensive. This is definitely a completely different playing field.

So what to do? Give up? Not necessarily.

The security industry or industries working in the area of security who want to succeed must adapt themselves to several general rules, most of them offering directions as to the how and why of not to proceed. I will list some but not all of them.

♦ Do not be afraid of defining security issues, even if within this company it will be listed under HLS. Define all of the products / technologies / capabilities in which the company has good capability, experience and relevant products. Decide if you want to be suppliers of systems / technologies or systems integrators. This responds immediately to the defined issues of the customer.

♦ Do not compete against advanced and expensive systems when a simple camera and monitor and a Jeep with personnel provides a solution.

♦ Select agents / advisors who specialize in that area of expertise. Not always are those working in the security field suitable for this activity  due to differences of a client and the size of the transaction.

 ♦ Differentiate between security systems which will sit idle in a warehouse most of the time from security systems that will be operational all the time. This will require a good deal of maintenance. Companies can “fail” economically when service is required in a faraway place. It is recommended that a local partner be taken who will handle installation and maintenance. In the long-term it is possible that this  partner will bring in additional work in the continuation of the project.

♦  Distinguish, within the company, activities which involve guarding from activities involving security. The different form of management along with the separation of fields will help contribute towards the building of new and compatible patterns.

Lova-Drori-Credit-Rafael1By Lova Drori, MIPAS – Marketing Ideas Processing & Support

Mr. Drori has retired recently from the position of Executive VP Marketing at RAFAEL Advanced Defense Systems Ltd,

Mr. Drori in a member of i-HLS Advisory Board