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ICT as a main driver to sustain a new strategy development, analysis of a Security Services company

Please note that this is a "public version" of this EMBA project paper, where the confidential information have been removed.
I joined Protectas as a Chief Information Officer in October 2012. The decision of the Management Board to develop a new strategy was decided in early 2012. One of the consequences of this decision was to change the IT organization because it was perceived that its contribution to leverage Information and Communication Technologies as a main driver to develop new added value services for Protectas was considered unsatisfactory.
Protectas sells a complete set of security services for the private and public sectors. These security services are mostly delivered by security agents doing rounds at a customer site or mobile patrols. These services are all connected to a monitoring center where alarms are treated and actions taken according to specific procedures. The lack of service differentiation makes the competition intense, with no real possibility to develop a tailored value chain and thus a sustainable competitive advantage. Also, the security services industry in Switzerland is not very well regulated which makes barriers to entry for competitors easy to overcome. This situation has had negative consequences for the profitability of Protectas which has a cost structure with relatively high fixed costs.
For the last ten years many new competitors entered the security services industry with very aggressive prices in the most profitable segments. This situation put Protectas under pressure and it is one of the main reasons why a new strategy has been decided in 2012 both by Protectas and Securitas AB, the mother company based in Stockholm. This new strategy is based mainly on technological innovation through the development of new services around security, specifically with the Remote Video Surveillance (RVS). This new business model will bring added value for the customers by reducing the cost of the services and for Protectas should provide higher margins by reducing the fixed costs to deliver the services. With this new strategy, Protectas and the Securitas Group will be able to differentiate from their competitors, increase profitability and secure and augment the customer base.

Autor: Yannick Hauser
Verlag: iimt University Press
ISBN: 978-3-905814-43-9

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