How to Calculate Video Surveillance ROIs

Author: John Honovich, Published on May 15, 2008

ROI calculations are powerful but can be distorted. While they hold the promise of identifying objective value, they can often obscure the truth.

The goal of this review is to help the security manager better understand supplier ROI calculations and allow the manager to modify or adjust for accurate and realistic results. Integrators and manufacturers could also benefit from applying these principles.

Good ROI calculation require understanding operational details more than they do math or money. Once you understand the operational details, the math and money are simple.

Here are the 4 principles in preparing a ROI calculation:

  • Understand the alternative to this proposed investment
  • Understand the full cost
  • Understand the technological deficiencies of this investment
  • Verify that operational assumptions are correct

*** ************ *** ******** *** *** ** *********. ***** **** hold *** ******* ** *********** ********* *****, **** *** ***** obscure *** *****.

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**** *** *********** ******* ************* *********** ******* **** **** **** do **** ** *****. **** *** ********** *** *********** *******, the **** *** ***** *** ******.

**** *** *** * ********** ** ********* * *** ***********:

  • ********** *** *********** ** **** ******** **********
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  • ********** *** ************* ************ ** **** **********
  • ****** **** *********** *********** *** *******

[***************]

Principle #*: ************

*** **** ***** ***** ** **** ** *** ******** ** to ****** ** *********** **** ** ******* *** *** *** relevant ** **** ****. **** ****** **** ** ****. *** topical ******* ** **** ****. **********, **** **** ****** **** they ***** *** ** ******** *********** ********** ** *********** **** applications **** *** ** ****** *******. ***** ********* ****, **** an *** ***********, **** ** ********** ******* **** ** *** same ******. ** **** *** **** ***** *** * ******** manager ** ******* ** *** ** * *** ** ** nothing ******* ****** ******** *** * *** ** ***** ******** a *** ** ** *********** ** * ***. ** **** a ******** **** *** *** ***, ** ***** ** ** compared ** * ***.

*** ********, ** ** *** **** "$**,***" *** * *** cost "$*,***", *** ********** *** ******* ** *********** *** *** would ** $*,*** (*** ******* *** *** *** **** *** DVR). ** *** **** ****, *** *** ***** **** ***** returns ** ********* **** ** ******** *** **** *** ***, thereby *********** **** ************* ******* **** ** *********** ********** *** application ***********. ** *** ** *** **** **** ******** *** simply ********* ** *** ** ** *** ****** * ***, you ***** ** ******* ***** ** ****** ***** *** * NVR **** * *** ***** **** ********* *** **** *****.

****: * ***** **** ***** ******** **** ***** **** **** so **** ** *** * ********* ** ****. **** ** a ******** ** *** ******* ***** **** ** ******* *** purchasing *********.

********* ****** ********* ***** ******** ****** *********** *** **** *** sometimes ******* *** ************. *** ********, * ****** ********** ******** a ******** ***** ** ****** ******* ***** ** ******** ** (2) * ********* ******* *** ******** * *** **** **** outdoor ****. *** ***** ********* **** *** ********* ****** ******** was ******** *******. **** ********** ** ********** ******* *** *********** here ** ****** ***** * ** * ****** *******. **** is **** **** ******** ******** *** ***** *** **** **** as *** *********** *** **** ** *** ********* ****** ******** is ************* ****** **** ****** *******.

****: *** ********* ******* ** **** ******** *** ******* **** higher *** ** ***** **** ** ***** ********** ********** ***** due ** ***** ******* *******. * ** *** ********* ** the ******, ****** *** ****** ** *** *** ********* ************* was ***** ****.

*** ******** ******* *** ********* ****** ****** *********** ** ************* the ********* ****** ********* ************ ** *** ******** ***** *******. Specifically, **** ***** ****** **** * ********* ****** **** ***** not ** ****** ** ** *********** ****** ****** ****** ** factored ** *** *** *** ********* *******. ** *********** * license ***** *** ******** ** ******* * * ****, *** megapixel ****** ****** *** ****** *** **. *** ** *** case ***** ** ****** ** *********** **** *** *** *** a ***** *****, ** ****** ****** ***** ** ******* ******* and *** ********* ****** ****** *** *** ******.

**** *********** ** ********* ******* *** ** *** *** ** truly ********* ** ******** ***, **** ** * ******** ******.

Principle #*: ********** *** **** ****

*****, ****** ******** **** ***** *** ******** *****. ***** ****** hidden ***** **** *** **** **** **** *** **** *************.

*** ** *** ****** ***** ** ***** ********* ** *** need *** **********. ********* ** *** ***** ** ***** ******, you *** **** ** ******** ********* ** ****** *** ****** the ******. **** **** ***** ****** ***** ***********. *** *** be **** ** *** *** ********** ** **** ** ********* but *** *** **** ** ******** ***** *********** ********* ** bring ** ** **** *****. **** **** *** ********** **** if *** ******** ***** *** ****** *** ****** **** **.

********* ******* *** ******* ******* ** ******** *****. **** ********* cameras, ** ** *** **** *** ********* ****** **** *** the ********* **** ** *** ******* *** *********. ****** *** megapixel ******* ** ********** *** **** **** *********** *********** **** analog *******. ****, ** *** ***** **** ******** ********** ** megapixel *******, **** **** ******* ******** ******* ***** (*** ***** network *****).

*****, ***** **** *** ** *********** *** * **** ******** most ******* *** ********** **** *** ****.

Principle #*: ************* ************

**** * ****** ******** *** ** ***, ******* ** ******* that *** ********** ***** ** **********. **** *** ********** **** sometimes ***** *** *** ** ** *** ****. ****, *********, the ********** ***** *** *** ** *** ************* *** **** it **.

**** ** *** ** *** *** ****** **** ***** *********. It ** **** ** *** **** ********* ********* *** *** potential ** ****** ****** *************. *******, ** ******* ** *** well ** *****. ** ** ***** *** **** **** ********** have * *** ** ****, *** ****** *** *** **** properly ****** ***** *****. **** *** ****** *** ********* **** reduction *********. *********, *** *** **** ** *** * ********* camera ** ******* ******* ****** *** ***** ** * **** dark **** ** *****. **** ********* ******* **** ****** **** low ***** **********. ** *** **** ********** ** ***** ***** during **** ****, **** *** *** ******** ****.

*********, *** ****** *** **** *** ** ** *** **** to *** ** **** **** ********* **** ** ***** ** many ***** ** *** ********** ***** *********** *******.

********* ****** **** *** ******'* *********** *** *** **** **** that *** ************* ************ *** ********* ** *** *** ***********.

Principle #*: *********** ***********

********* *** **** **** **** ******* ** ** *** *********** realities ** * ******** *******. ***** ***** ******* *** **** optimistic ** ****** ** *** ***** **** ************'* *********. ******** of ***** *********** ******* **** *** ********, ****** ** ********* per *****, ****** ** ********** **** **** ****** **** *****.

*****, *** **** ** *** *** ********** **** ***** *********** assumptions *** ** * ****** ******** ***. ******* **** ** your ****** ******* *** **-****** ** ********* *********** ******. *** much **** **** *** ****** ****** **** ***? *** **** incidents *** **** *** *** ****** ***** **** *** *** system **** *** ***** *** **** ***?

**'* ******** ***** ** ****** **** *** ****** ***********, ** be ***** ** ****** *** *** ************.

*** ********* ** *** ********* ****** ** *** *********** ****. By ***** ***** * **********, *** *** ****** ****** *** determine *** ***** *********** ** ****. ******** ****** ***** *** problems **** * *********** *** *** ****** *** **** **** suppliers ******.

******** ****** *** ********** *** *********** *** *** **** ** rewarded **** ** ******** *** ********* ******* ** ******* ******** value.

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