Panasonic System President is Out

Author: John Honovich, Published on Aug 19, 2015

The architect of $1+ Billion Panasonic North America 'solution' oriented business is out.

In this note, we share feedback from Panasonic, examine his controversial plan and what this means for the security division.

*** ********* ** $*+ ******* ********* ***** ******* '********' ******** business ** ***.

** **** ****, ** ***** ******** **** *********, ******* *** controversial **** *** **** **** ***** *** *** ******** ********.

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

"Pursue ***** *************"

********* ********* *** ********* ** ***** *******, * **-**** ********* *******, ******:

"***** ******* *** **** ********* ****** ************** ******* ** ***** America ** ****** ***** *************.  ********* ****** ***** **** ** his ****** *********. *** *** *********** ******, ****** *. ******, Chairman *** *** ** ********* *********** ** ***** *******, **** serve ************ ** ********* ** ********* ****** ************** ******* ** North *******"

*** *************, **** ******* ***** ** *** *******, *** **** he *** ******** ** ****** ***** ************* ***** ******* ***** weakness ****** *** ********.

The ******* ****

**** ** *** *** ******** **** *********'* *****-******* ********, *** simply ** ******** *** ****** ********** **** **** (*.*. *** *** *** **** ********* ********, ********** *** ******* ********).

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

"** ****** ******** ******* ** *********’* ********-**-******** ****** **** * new, ****** ********** ****** ********* ********* *******.... *****-******* ********** **** ********** ** *** ***** *** ********* *****.  Silos **** ****** ****.... ******* ********* *** ***** *** ********* ******** ****** ******** *******, placing ********** *********** ** * *********** ****."

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

"** ******** ** **** ***** ******** (****) **** ***** ** 'end-user ******' *** ***** ***** ****** ** *** *******. ** wanted ** '*** *** *** ****' *** ** '**** *** wide' **** *** ** ***** ********."

Problems **** *******'* ****

**** ******* ****** **** *** ********** ***** ** ************ *** challenges (*.*., *** *****'* ********) *** ********* *** ****** ** cross **** ****** **** **** ***** *********. ** ** **** to ****** ** **** *** **** ******** ****** ** ******* when ********* ** ******* **** * ******* ***** ** ********.

Potential ******

** **** ****** ***** ** **** *** ******** / ************ business ** ******* **** ************* *** ******* ** *** ******** needs ** ***** ********* *** *******, ** *** ********* ******.

****** *** ************ ****** ** ***** **** ******* ********** (******* competition, ***.), ********* *** **** * **** **** ******** ********* ***** *******'* ***(*** **** *******) *** *** ******* **** ** *** ****** **** **** their* *********** *******. **** ** **** ** ******* ***** ******** ***** *** ********* focus *** **** ***** ** *** **** **** ******* **.

Comments (9)

This has been a long time coming. Japan HQ assigned Rance a Japanese handler or sorts six months ago or so - no one knew what he did, but he was always around, and treated with obvious deference. There is no doubt that he was asked to resign.

Rance's conflict goes much deeper than just numbers, it's also ideology. Panasonic does not want to be a solution company, they want to be a product company. I fought that fight every day. There is an old guard who has been at Panasonic for 15+ years. These guys bought nice boats and sent their kids to college by pushing Toughbooks, and they don't want to change. 80% of police cars have a Toughbook in them, and the in car camera system is just as strong. Rance tried to change that culture, and it needs to change. Panasonic has a huge amount of momentum, and can run for a long time on the skinny Toughbook margins, but entropy catches everyone eventually.

Panasonic culture will not allow them to disrespect the opinions of senior folks who are anti-solution sales. They are, quite literally, waiting for these people to die so that they can change. We'll see if they last that long.

1, excellent feedback. So do you think it would be better for Panasonic to be a 'solutions' company?

They need to be a solutions company, there is no margin in hardware. Panasonic makes pretty much everything. If they could figure out how to do it, they could bring down some really interesting projects. Look at an Emergency Operations Center. Panasonic makes the computers, monitors, video wall, projectors, phones, HVAC, lighting, generators, kitchens, battery backups, and probably other stuff I'm forgetting. They also have relationships with installers/integrators who could do all the work with Panasonic as a prime. It's great money if they could pull it off.

Can you really pull that off? "I am going to sell you some Panasonic IP cameras, a Panasonic refrigerator, a Panasonic battery backup and a Panasonic scanner?"

I see the sales potential of selling end to end within a given area (like end to end video surveillance or end-to-end kitchen equipment) but selling across different areas of businesses seems a lot harder, yes/no?

If you are high enough up the deal, you can do it. It's really a total company transformation - you're becoming a Halibuton of sorts. You aren't working with the security director, you're working with the Architect.

Sure, but how often can you get that high up, that you get a corporation to mass purchase all your products? And what happens the rest of the time for companies who are not bulk buying kitchen, car and surveillance equipment from the same manufacturer?

Everytime a rep with a company that does a lot of different things says he'll get this person or that person who deals with that other product division to contact me, it rarely ever happened. It's like they're averse to leads from inside their own company for some reason. (Maybe there's a profit sharing rule common in that scenario, so sales people in different divisions spend more time on outside leads so they don't have to share commission with fellow corporate sales people...?)

Update: In the past year, Panasonic has built their own traditional security focused sales force to complement their manufacturer rep firms.

Still missing Rep Firms in certain key areas. The Southeast (6 states) specifically has been without for almost 2 years. Hear there is another shakeup in management happening now.

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

Axis Guardian - Cloud VMS for Alarm Companies on Jun 19, 2018
Axis has struggled to deliver a cloud-based managed service video platform. Video service providers have utilized AVHS for over a decade, and have...
Hikvision Corrects False Cybersecurity Announcement on Jun 18, 2018
Hikvision has corrected a false cybersecurity announcement that claimed a British government-sponsored program endorsed the cybersecurity of...
Security Sales Course Summer 2018 on Jun 14, 2018
Based on member's interest, IPVM is offering a security sales course this summer. Register Now - IPVM Security Sales Course Summer...
IPVM For PR / Marketing People on Jun 13, 2018
This post helps PR and Marketing people understand and productively work with IPVM (as much as possible given our independent, often critical,...
ReconaSense - The AI / Access Control / Analytics / IoT / Video Company Profile on Jun 12, 2018
One company's ISC West booth stood out for displaying a light-up tower of buzzwords. The company, ReconaSense, pledged to be 'making sense of it...
H.265 / HEVC Codec Tutorial on Jun 07, 2018
H.265 support has improved significantly in 2018, with H.265 camera/VMS compatibility increased compared to only a year ago, and more manufacturers...
Bosch IVA Video Analytics And Motion+ VMD Tested on Jun 06, 2018
Bosch's video analytics now ship on nearly every model, from indoor domes to high-end 5MP starlight cameras.  In this test, we evaluate Bosch's...
Dahua's Terrible Cybersecurity, Buys Credibility From PSA And SIA on Jun 04, 2018
Dahua has a terrible cybersecurity track record. But American organizations, like the Security Industry Association (SIA) and the PSA Security...
Hikvision PanoVu 20MP Flexible Camera Tested on Jun 01, 2018
Hikvision has released their first repositionable multi imager cameras with integrated IR included, atypical in competitors. We bought and tested...
Oncam 12MP Fisheye Camera Tested on May 29, 2018
Oncam has made their name since the early 2000s as a fisheye specialist, focusing only on panoramic cameras. To see how this specialist stacks up...

Most Recent Industry Reports

IPVM Vulnerability Scanner Released on Jun 18, 2018
IPVM is proud to announce video surveillance's first and only cybersecurity vulnerability scanner. This tool allows quickly and simply...
Hikvision Corrects False Cybersecurity Announcement on Jun 18, 2018
Hikvision has corrected a false cybersecurity announcement that claimed a British government-sponsored program endorsed the cybersecurity of...
July 2018 IP Networking Course on Jun 16, 2018
The last chance to save $50 on registration is this Thursday, June 21st. Register now and save. This is the only networking course designed...
The Dumb Ones: PSA's Bozeman On Cybersecurity on Jun 15, 2018
The smart ones are the hundred people who flew to Denver and spent $500+ on a 1.5-day conference featuring Dahua as a 'cyber responsible partner',...
Amazon Ring Launches $10 Monthly Professional Alarm Monitoring on Jun 15, 2018
Amazon's Ring has announced an alarm system with 24/7 professional alarm monitoring for $10 per month, a fraction of the $30+ per month traditional...
Axis Releases First New Access Controller In 5 Years (A1601) on Jun 15, 2018
It has been 5 years since Axis 2013 entry in the physical access control market, with the A1001 (IPVM test). Now, Axis has released its second...
Hikvision 12MP Fisheye Camera Tested (DS-2CD63C2F-IV) on Jun 14, 2018
Hikvision's DS-2CD63C2F-IV is their flagship panoramic camera, with a 12MP imager, 15m integrated IR, smart codec, and more. We tested the 63C2 in...
Four Major Outdoor Camera Install Problems on Jun 14, 2018
Over 140 integrators told us the top four camera installation mistakes that lead to unexpected problems and failures. Their comments often...
Security Sales Course Summer 2018 on Jun 14, 2018
Based on member's interest, IPVM is offering a security sales course this summer. Register Now - IPVM Security Sales Course Summer...
China Public Video Surveillance Guide: From Skynet to Sharp Eyes on Jun 14, 2018
China is expanding its video surveillance network to achieve “100%” nationwide coverage by 2020, including facial recognition capabilities and a...

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