How to demonstrate that the security management solution you chose contributes to the success of the company?
By Sergio Correa*
The current uncertain economic context demands that all investments of the company be justified with solid arguments. Security management solutions are no exception, especially when executives expect security professionals to be able to demonstrate return on security investment (ROSI).
New parameters for security investments
The old methods for calculating ROSI were complex and obtaining the figures depended on data that was difficult to verify. A more tangible way to justify security investments is to classify ROSI into three levels: security effectiveness, risk reduction, and profitability for the enterprise.
1. Safety effectiveness: protection of persons and assets
The first level of security effectiveness represents the basic reason why executives invest in security management solutions: the protection of people and assets. To this end, visible and common systems such as security cameras and access control devices are used. Organizations can reduce their capital investment (CapEx) and operating expenses (OpEx) by integrating these differentiated technologies into a single computer network.
Demonstrating the value of security effectiveness is problematic in itself, as companies cannot determine with certainty whether there have simply been no incidents or whether the security solution prevented such incidents from occurring. At its most basic level, the effectiveness of security ensures a secure environment in the enterprise.
2. Risk reduction: improving business continuity
The second level is risk reduction, which aligns with the goals of executive management. Security managers identify external and internal risks to the company by asking, "How will the organization benefit financially by protecting against these risks?" This kind of solution allows you to better understand the situation, strengthen business continuity and help organizations avoid the financial ramifications of unforeseen incidents.
Schneider Electric helped a leading global medical research firm reduce risk when new government regulations threatened to disrupt existing processes. Management drew up an inventory of the substances subject to the regulations and designed new safety processes for them, protecting the company and facilitating compliance. After 30 months, the team observed the following:
A 30% reduction in the time needed to respond to an incident.
A 430% reduction in the number of unjustified alarms.
A decrease in the costs of security personnel.
A decrease in the administrative cost of preparing reports for compliance purposes.
Assigning a monetary value to risk reduction is possible because most executives can easily quantify the cost of closing the company for a few hours or a few days. They can also calculate the possible financial liability in the event of an accident.
3. Profitability for the company: improving business performance
The level of ROSI with the greatest impact corresponds to a value to the company that transcends security: when security contributes vitally to success, profitability and continuity. This is achieved by determining how security technology can add value by making the company's core processes more efficient.
For example, Schneider Electric helped a major automaker generate added value in its production plant. Optical lathes were integrated with the access control devices of each assembly line to count the operators and check their credentials at the beginning of the day. The production line did not work in the absence of trained staff members, thus reducing the risk of making costly mistakes and compromising quality, as well as ensuring its proper functioning.
To achieve maximum ROSI value, it is critical to make safety an essential part of the corporate culture. When people, processes, and technology work together in a specifically designed symmetry, organizations reap benefits that go beyond operational boundaries.
Schneider Electric has global safety expertise and multiple success stories that reflect all three levels of ROSI. Our security solutions can integrate numerous disciplines in this field into a single system. The unique overview of the entire security domain provides useful real-time information that facilitates decision-making and streamlines incident response. To generate even more value, the security infrastructure is easily and affordably integrated with other building systems, such as lighting and energy, building, power and COMPUTER systems.
For more information about Schneider Electric and its comprehensive video surveillance and security technologies and projects, visit www.schneider-electric.com.mx
* By Sergio Correa is Channel Manager of the Buildings Division of Schneider Electric Mexico, a global specialist in energy management and with operations in more than 100 countries, which offers integral solutions for different market segments, holding leading positions in energy and infrastructure, industry, buildings and data centers, as well as a wide presence in the residential sector. Through its commitment to helping people and organizations "Maximize Energy Use" in safer, more reliable, more efficient, productive and green ways; the company's more than 140,000 employees reached a turnover of more than 24 billion euros in 2012. www.schneider-electric.com.mx
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