Lessons From The Future

 

 

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Volume II
Lessons From The Future

THE WAY TO GO -- FOR SECURITY  

Few North American companies are "with it" in the sense that they are using the newest equipment, the latest manufacturing techniques and modern thinking, simultaneously. But one such company is nearby. They aren't into a business with a lot of romance and glamour. They make home security systems. The units are small and unobtrusive, easy to install and operate, and sell at a reasonable price. The company is EverGuard Security Systems Ltd. of Richmond, British Columbia.

The company was recently backed financially by Adrian J. Robson, 42, who worked for Xerox for four years, and then founded Bedford Software of Canada. Bedford quickly became a household name as the company took over a good segment of the marketplace for small business computer accounting software. Two years after being listed on the Toronto Stock Exchange, Robson sold the major assets to Computer Associates Intl. Robson joined EverGuard in January, 1990 as an investor and director and subsequently assumed the role of President. He brought fresh and practical ideas and some of the staff associated with him in previous ventures, into the operation. The small company looks like it will really be one to be proud of in a few years, if Robson and his creative crew of experienced start-up engineers, marketers and operators stick together.

Most impressive is the series of right moves they have made. They selected a field with high growth potential: security. They selected the almost-untapped segment of that industry to concentrate on: the individual residence. Only four percent of Canadian homes and less than 10 percent of American homes have any kind of a security system. This leaves them outside of the so-called industrial "zoned wireless" market that's heavy with competing companies of all sizes and ethics. EverGuard probably has the most modern robotized (the chief robot is called Kato) small manufacturing operation in western Canada. Reminiscent of Citizen Watch's "factory-in-a-box" operation in Japan. I emphasize small, (about 1,500 sq. ft.) because they chose an inexpensive office and plant in suburbia, not a flashy downtown office in the high-rent district. The put the money in the latest highly-automated equipment and skilled staff.

The company has 30 human employees (Kato has her own crew) who currently produce about 1,000 units (for no apparent reason called SNIF) a month. That's already an annual retail value of more than $5 million. They could quickly ramp-up to 3,000 units without straining existing facilities, just by adding one or two more shifts. Total investment to date in robotic and other equipment is in the range of $2 million.

One advantage of moving so fast -- since Robson moved in they have gone from napkin to full operation in 18 months -- is that EverGuard has stolen the lead in their segment and moved their product to market before others realized this market existed. Their first product, a self-installed home and small office wireless security system, sells less than $500. Two years ago I paid $500 just for the installation of a non-SNIF unit for my houseboat. You need use no tools, nor drill holes -- just peel the protective backing from an adhesive strip and press the unit against the wall. To activate is almost as easy: key any four digit security number into the entry keypad. To de-activate, simply key the number a second time. It's a modular system, so if you want to get fancy in the future you can add extra door and window magnets, entry keypads, etc. when, and if, necessary.

What's inside that box? A powerful micro-processor (proprietary part designed by EverGuard's own engineer's protects cloning by others) with surrounding components to perform what used to require bulk and much higher cost. The monitoring unit receives radio signals from peripheral sensors and sounds an alarm when an intrusion occurs. If it's not a false alarm the police will follow. You can set the unit, through the access keypad, to monitor only doors and windows, even when you -- or your pet -- are home alone. They do that by deactivating the motion sensor that detects motion. When you go out, that goes on. Remember to take your pet with you or deactivate the motion sensor, a simple task.

EverGuard's highly automated, computer-driven monitoring system covers all North America from Vancouver. One attendant can handle 10,000 installations quite satisfactorily.

This company has turned a formerly expensive system into an appliance hooked up to a $16-a-month "call the cops" monitor.

In merely two months, after a year and a half of making sure they had the right manufacturing, distributing and marketing systems and motivated crew, this company has jump-started to a 1,000 unit-a-month production.

Although their slogan, "The Cost of Preventing a Break-in is now a Steal" is a little campy, the operation appears impressive. All businesses -- no matter what their present size -- are going to have to move this quickly and efficiently to survive. Another product they are working on also looks interesting. It's something people have been talking about for years and are anxious to try ... the allpurpose "Panic Button"! More information: Randy Aeberhardt, VP Monitoring, Customer Support Department, EverGuard Security Systems Ltd., Unit 560-5600 Parkwood Way, Richmond, BC, Canada V6V 2M2. Phone: 604/273-SNIF. Fax: 604/273-9448.

 

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