Canon, Uninnovative, Struggling For Years

Author: John Honovich, Published on Feb 11, 2015

Canon has gone from nothing to arguably the most powerful video surveillance manufacturer in 8 months.

All they had to do was spend $3+ billion USD to get there.

***** ** ***** ****** ****? *** *** **** ***** ** their ******** **** **********?

*** ****** ** ****** ***. ** **** ****, ** ******* Canon's **** - **** ********** *** *** ******** **** ****.

*** **** * ***** **** ********* ********* ****** *** ******** electronics, ** ******* *** ***** ******* *******. ***** *** *** been **** ** *********** ** ****.

******, **** *** **** * *****, ******* *** **** **** have **** **** ** ****:

*** *******, **** ** $** ******* *** ******* ** *** down ** *** $** ******* *** *****.

*****'* **** ******** ***** *** ****** ******** (~**% ** *******) and ******* ******* (~**%).

** *******, ***** *** **** **** ** **** *** *** past * *****:

** * ****** ** ****, ***** ****** ******* ******* ** their '******** *** ****** *****', ***** *** ********* **** **** over *** **** * *****. *******, ***** ** ********* ******* ***********,

"** *** ******* *******, ** ******** *** ******* ****-** ** launching *** ******** **** *** ******** *** * ******* ** indoor ************ ** *** *** ** **** *** ******** ***** results **** ************* ************ *** ****** ** *** ******."

**** ** ****** *** ** ********* *** **** ***, **** importantly, *** **** ****, **** ******* ********* ******.

*******

************, *** * ********** *******, ***** *** ******* ***** ** the ***** ******* *** ***** **** ***********, ******* ******** ********** competitors **** ******* *** ***** ******* ****** *** **** **** period.

** *** ****** ****, ***** ********** ****:

"****** *** ***************-**** ******* ******* ********* ** **** ***** ********** due ** *** ******** ********. ** *** ******* ******* *******, demand ********* ** ****** ** **** ********* ********* *** ******** markets."

***** *** ****** ****** ** ******** ** **** **** *** obvious *** ********** ***** **** **** *********** ******* ** ******** devices / ********** / *******. ** **** ***** *** **** with ****, *** **** ***** ****** ** ** ** ***** the ********** ** ************ *** *****?

Innovate **** **** *** *********?

***** ** ***** ***** ******, ** ** **** ** ********** why ***** **** ***** ********** ***. *** ******* ******* ** be ********** ****-****** *** ****** ** **** ******* *** *******.

*** ***, **** **** ****** **** * ****** (** ************) whose ****** **** ** ************* ********* *** *** ** ***** attack ** ***-**** ******* ************* **** **** ***** ** ****** against.

**'* ********** ** ******* **** ***** *** *** **** *** Milestone***************** *********** **** *** *** *** **********.

*** *** *********** ** ** ***** *** *** ******** **** a '***** ********', ** ******** *****-******* *** *** *********** *****. But **** ***** ****** **** **** * *** **** ** trying ** *** *** *** *******? *** **** ******** ********* such * ********* *** ******* **********?

** ***, *** ********** **** *** **** ** *** *** two *************, ***** ** ** ********** ************ ***** ** **, but ***** ** **** **** *** **** ******* ** ***** for *** **** * *****.

Comments (10)

"Demand for interchangeable-lens digital cameras continued to face harsh conditions due to the economic slowdown. As for digital compact cameras, demand continued to shrink in both developed countries and emerging markets."

Canon was simply unable to innovate to deal with the obvious and inevitable shift away from traditional cameras to Internet devices / smartphone / cameras. If they could not deal with that, how does Canon expect to do so given the challenges IP surveillance now faces?

Dealing with it would be one thing but they don't even seem to acknowledge the change in technology away from compact cameras and DSLR cameras to mobile device cameras as you mentioned. Sure there will most likely be a small market for those devices but the overwhelming majority of people will use their mobile device over a standard digital camera.

Will this be a pattern with their share of the surveillance industry? How will they adapt to the continuous changes?

The Japanese was the king during the analog age, but currently, they have lost in the digital evolution. IP cameras are based on SOC (system on chips), which requires the rapid development of both hardware and software. It is high tech labor intensive, and Japanese doesn’t have the labor resources to compete.

What else would Canon need to do to become nigh unbeatable, besides execute this properly? These seem like big moves now that the picture is coming into focus. Would adding analytics and a more fleshed out access control product make them a real direct threat to Avigilon? Would having access to lower end product (Axis is not cheap) do it? Burglar alarm (yawn)?

Clearly they are willing to drop the cash, may as well go for everything now before someone else reacts quicker.

Austin,

Analytics and access control would make sense if they are building a solution, though it remains to be seen if and when Canon is going to sell even Axis and Milestone as a solution.

To get the Avigilon benefits, there needs to be a tight coordination / integration of sales and marketing as well, which won't happen if both Axis and Milestone remain independent.

I do think a super Avigilon solution would be a strong play for Canon, if they are willing to put it together.

Consumer compact cameras business is declining like crazy for the last 2 years down to 50% from where it was in 2012. Smart phone is one reason for the loss. You cannot expect imaging companies to produce phones or tablets to cover up the loss. It is not their business. Companies like Canon and Nikon have been hit hard. When you examine the graphs above, Canon has coped with it pretty well. Now they are trying to recover by moving their focus to different product groups they have.

I wonder how the uptick in dSLR has offset the loss in point and shoot. Anywhere close to a wash, or more like saving the Titanic with a leaky bucket?

John,

I think you are right on the mark here. "Super Avigilon" will not be easy to pull off. Canon is in need of a strong U.S. CEO who has experience in the industry and has led a Japanese company. That person would need to assimilate Milestone and AXIS and that includes cutting redundant management. Very few candidiates like this but they are out there. Independant companies running simultaneously in this case is a doomed strategy.

John,

I don’t think you’re seeing the potential here. Let’s consider what might be (hypothetically) possible.. First off, Ray Mauritsson no longer needs to report to those shareholders (or worse, those pesky customers). Now he can report to somebody in Japan! He’ll have lots of additional meetings and presentations to give, all the while being under the gun to deliver sales and revenue. If Ray doesn’t work out, then maybe it’d be good to replace him with somebody a little more engrossed in Canon’s culture. Speaking of Canon’s culture, of course it’s so much larger, mature, and sophisticated than the Axis way of doing business no doubt Axis can benefit from their supply chain practices, project management, and product management processes. The middle management at Axis has so much to gain from those 3AM conference calls and will probably need to put together another slide deck for that meeting.. Of course, if there are hiccups it might be due to Axis not really understanding how Canon works, and more meetings, maybe even moving some people around might be in order. Speaking of moving people around, there’s probably a lot of redundancy in the services provided by IT, HR, finance, marketing, product support, and oh yeah, supply chain & manufacturing. If Axis can save money by using Canon’s services, it will go straight to the bottom line! So those can probably be consolidated—smooth as silk. And given the cost of real estate these days I’m sure some physical facilities should be consolidated too—moving is a highly productive activity. When the dust settles the opportunities for sales synergy are endless. For example when a Canon dealer is closing on a RadPRO D2-50RF Dynamic Digital RF Radiography and Fluoroscopy machine he can sell some IP cameras too! Because of course there’s no reason they can’t go to market the same way (since they both use electricity), and if you squint a little the customers look a lot alike (mostly humanoid). I’m happy for Axis AND Canon in this deal.

Invention is different than innovation. Innovation is when there is actually a major market impact, which their financial results and overall production position shows that there has been little of.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes at the 2019 Barnes Buchanan Conference. However, despite that narrative, it is a "great...
Struggling ASCMA / Brinks Home Security Gets Stock Delisting Warning on Jan 08, 2019
Struggling Ascent Capital Group (NASDAQ: ASCMA) has disclosed a warning from NASDAQ that ASCMA faced delisting unless they reverse their downward...
Scam Research And The $86 Billion IP Camera Market on Dec 19, 2018
Scam. The most widely cited research numbers in many, if not most, industries come from a growing number of Indian 'market research firms'. We...
Imperial Capital Security Investor Conference 2018 Review - ADT, Resideo, Alarm.com, Arlo, Eagle Eye, ACRE, More on Dec 14, 2018
Imperial Capital Security Investor Conference is an event matching industry executives with financiers that frequently leads to future funding...
The 2019 Video Surveillance Industry Guide on Dec 10, 2018
The 300 page, 2019 Video Surveillance Industry Guide, covers the key events and the future of the video surveillance market, is now available,...
Axis: "No One Wants To Buy A Camera" on Nov 09, 2018
Axis has, in its own description, made a bold declaration: The industry is changing so rapidly that the following statement might seem bold but...
Resideo IPOs, Then Plunges on Oct 31, 2018
ADI and Honeywell Homes management have been touting their spinout and IPO for months, including appearing on Wall Street as they widely shared on...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...

Most Recent Industry Reports

Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Hikvision Chairman Praises United Front on Feb 14, 2019
Hikvision’s controlling shareholder held a meeting last month praising the United Front, a Communist Party organization known for its secretive...
Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
Cisco Meraki Cloud VMS/Cameras Tested on Feb 13, 2019
Cisco Meraki says their cameras "bring Meraki magic to the enterprise video security world". According to Meraki, their magic is their management...
Uniview / UNV Favorability Results 2019 on Feb 12, 2019
Uniview / UNV, the self-proclaimed #3 China manufacturer, while starting late, has been working to make inroads internationally. In IPVM's 2019...
Nortek Mobile Access Reader BluePass Examined on Feb 12, 2019
Nortek's Linear access control division claims to make mobile credentials "more secure and easier to use than ever before" with their BluePass...
Solink Raises $12 Million - Company Profile on Feb 12, 2019
Most industry professionals have never heard of Solink, a company whose tagline is: It's time to revolutionize the way business uses...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact