Pelco Surveillance in trouble

Christian Sandström holds a PhD from Chalmers University of Technology, Sweden. He writes and speaks about disruptive innovation and technological change.

Pelco – one of the largest manufacturers of analogue CCTV cameras recently announced that around 4 percent of its

workforce will be laid off.

The company had another minor layoff in late 2008.

The industry is currently experiencing a shift from analogue to digital internet-based video surveillance.

The shift means that a company like Pelco has to acquire plenty of new skills in order to sustain is position.

With an analogue tradition, however, it is difficult to remain competitive when the competence base of

the industry is shifting.

Pelco is therefore facing the challenge of transforming the company, while at the same time

having to coordinate layoffs and streamline its existing business.

Shifts to digital technology tend to be fast and violent.

New products quickly lose their value.

So if Pelco manages to renew its business…

… paradise is still not waiting for the company.

On the contrary…

… competition will be tougher than ever before.

Acquiring new skills is not easy for an established firm, and it’s even more difficult if it has already been wounded.

Is Pelco heading for the graveyard?

Is Pelco heading for the graveyard? We’ll see.

Find out more:

www.christiansandstrom.org