Video Intelligence in the Retail Industry. A 3xLOGIC Discussion Guide

Transcription

1 Video Intelligence in the Retail Industry A 3xLOGIC Discussion Guide

2 Staggering Facts: Retail shrinkage accounted for over $119.1B or 1.45% in lost retail sales last year. Apparel/clothing supplanted home improvement and DIY (do-it-yourself) as the industry with the highest shrink rates (1.87%), although pharmacy/health and beauty (1.79%) and home improvement and DIY (1.77%) followed closely behind. Loss-prevention spending in North America now represents 0.43 percent of retail sales the highest percentage of any region worldwide. On the average, shoplifters steal $237 worth of goods per incident, while employees steal an average of $1,944 more than 8-times higher. The Global Retail Theft Barometer 2011 Source: The Global Retail Theft Barometer 2011 The numbers speak for themselves. Reducing employee theft within your organization is one of the quickest ways to grow your bottom line. Rev Page 2 of 16

3 E mployee theft is the single largest cause of shrinkage in retail environments today. Millions of dollars disappear from Point-of-Sale (POS) terminals in retail stores on a daily basis due to fraudulent or criminal employee activities. The ability to effectively detect and deter cashierrelated shrinkage is a top priority for retailers worldwide. One way that retailers are confronting this epidemic is by identifying the telltale patterns of these crimes so-called POS exceptions. Exceptions to the Norm POS exceptions are transactions that differ from the norm. These can include: Manually entered values, which could be a sign of system manipulation; Product returns with no item present, no customer present, or no supervisor present; No-sales when the cash register is opened but no transaction is registered. The art of identifying and capturing these exceptions is the basis behind exception-based reporting solutions. By incorporating video data as a complement to the transactional data captured by your typical POS-based exception reporting tools elevates the effectiveness of these tools by delivering both video images accompanied by textual data resulting in a more complete picture of any event in question. By establishing a set of user-defined exception-based rules, Loss Prevention (LP) managers can receive real-time alerts anytime that events or actions fall outside of these parameters. In this way, Loss Prevention can not only increase its effectiveness, it can begin to transform itself from a reactive to a responsive, proactive resource for the entire organization. Now instead of reacting to accusations leveled by store managers regarding the source of their losses, LP departments can leverage transactional data and surveillance video to identify trends and capture details that can lead to improved loss prevention, as well as improved operational efficiencies and overall store performance. Aberdeen research shows that 76% of top performing retailers use some form of data mining and exception- based reporting tools to organize data analyses and help build a knowledge culture around loss prevention. Aberdeen Group Retail Loss Prevention Systems Q3, 2009 Rev Page 3 of 16

4 Capture the Exceptions Capture the Criminal With POS and other store systems currently networked, retailers are using IT strategically today to streamline business processes and optimize profits. By synchronizing network surveillance video with POS transactional data in conjunction with video analytics and user-defined exception-based rules, retailers now have a powerful tool kit for analyzing and detecting fraud. This intelligent approach to loss prevention can help uncover errors, training or skill deficiencies, as well as questionable or dishonest practices. 82% of the worst performing retail companies are not measuring the unit and category- level impact of loss prevention. As a result, these companies overlook the indicators that may improve store performance and lead to a positive payback on loss prevention investments. Aberdeen Group Retail Loss Prevention Systems Q3, 2009 Enhancing Your Loss Prevention Initiatives With the advances in network technology and network video integration, surveillance systems have the ability to monitor, identify and tag transactions deemed to be suspicious. Intelligence inherent in some network digital surveillance systems can alert staff to potential thefts and suspicious behavior while it is happening. By defining the rules, or exceptions you are interested in tracking, you drive the investigation into uncovering how these exceptions are impacting your operation. Your system actively monitors your environment and identifies transactions in real-time deemed to be suspicious. Reports can be generated by a variety of parameters including cash register, time, employee number, amounts, exception kind, and transaction type, and accessed from any computer connected to your network. When coupled with the relevant video clips, you have a true picture of what truly transpired. Rev Page 4 of 16

5 Now you can leverage technology and be proactively driving the investigation actively uncovering errors, inefficiencies, questionable or dishonest practices. As a result you detect sooner and respond quicker enabling more timely resolution of issues encountered. This enhanced responsiveness and effectiveness to your loss prevention initiatives is not only reflected in your organization s bottom line, but in your department s financial validation as well. This same intelligence opens the door to new in-store research methods that can positively impact a store s operations and bottom line. Analytics a Natural Extension Video analytics is a natural extension to video supported exception-based reporting, and not limited only to loss prevention activities. Video analytics can help increase operational and employee efficiencies using video you may already collect. Examples of a few of the video analytics that can be enabled include: Queue Monitoring automatically alerting store managers when queues exceed pre-defined thresholds at tills or customer service kiosks. Dwell Times assess the time shoppers linger in front of an end cap or a promotional poster in an effort to evaluate the effectiveness of a marketing campaign. People Counting monitor the number of people entering or leaving your store. Appearing Objects receive real-time alerts when aisles are obstructed. Video analytics can be a valuable and effective tool helping you detect gaps in training or management, or help you spot and praise good behavior. Analytics can help you grow revenues by transforming the way your customer data and behavior is analyzed and reported. Rev Page 5 of 16

6 More Coverage Less Cameras With IP megapixel cameras, and the new hemispheric and panoramic video formats, you are assured of greater detail and more coverage with fewer cameras. Resolution is Key While resolution is the desired outcome to your investigations, video resolution is key to capturing the details critical to that investigation, and high-detail resolution is what IP video is all about. Gone are the days relying on grainy low-resolution analog images that often failed to provide conclusive evidence in theft prosecutions or insurance fraud cases. Traditional high-resolution analog cameras can only provide the equivalent of 0.3 Megapixel resolution, where network digital cameras can deliver resolution exceeding 10 Megapixels, cover a larger area, and provide superior digital pan/tilt/zoom capabilities over their analog counterparts. The larger format images provided by megapixel cameras, combined with their higher pixel counts, result in an image that can be examined using post-event digital zoom without pixilation. Rev Page 6 of 16

7 Video Intelligence in the Retail Industry Raw images from analog cameras and Megapixel cameras can look very similar but looks can be deceiving. The differences become apparent when you zoom-in in an effort to identify who is in your photo. Who could you identify? Network Video With nearly every aspect of retail operations computerized and networked, it s natural to add video surveillance to the list. The advent of digital video IP cameras has allowed surveillance video to enter the IT world. Network cameras have IP addresses just like any other network device. As such, network cameras can be monitored, managed and updated just like any network device. In addition, IP-based surveillance solutions give you the power to have zero point of failure through the use of industry standard architectures such as SMART, RAID and SNMP. Now you can be notified of potential or real problems before they negatively impact your system. Network connectivity also gives you the option of connecting all of your disparate systems such as Point-of-Sale, access control, cooling systems, to your digital video recorder giving you a complete picture of your operation in real-time and in review. Rev Page 7 of 16

8 Cost of Ownership While some components of an IP-based video surveillance system may be more expensive than analog alternatives, when the total cost of ownership is calculated, IP has been shown to be more cost effective overall due to: 1. Reduced Cabling Costs only one cable is required to carry video, audio, telemetry and in most cases, power to the camera due to Power over Ethernet (PoE). 2. Ability to Re-purpose Resources organizations can leverage their existing network infrastructures and cabling to install IP-based systems making the cost of migration lower than expected due to reduced cabling requirements. 3. Increased Storage Efficiency compression techniques such as H.264 and 3xLOGIC s exclusive AZTECH compression technology reduce the size of Megapixel video files to the size of standard analog images while maintaining the detail, resolution and quality of the Megapixel camera. This coupled with advances in recording profiles where the camera only records when an alarm is tripped maximize the effectiveness of images captured with minimal impact on storage resources. Surveillance video can also be transferred to off-site storage just like any other data and stored on standard servers. Migration to IP is not an either/or situation. Hybrid digital video recorders support any combination of analog, Megapixel cameras, including Super HD, 180 and 360 panoramic and hemispheric cameras. This flexibility allows users to add Megapixel cameras in key areas, yet still be able to purchase or keep low-cost analog cameras for less demanding locations. Anytime, Anywhere Access IP-based video surveillance systems allow users to capture and distribute video, audio, and transactional data over any kind of IP network. With an Internet connection, authorized users are able to monitor multiple stores from a single location. By having your cameras connected to a network, you can achieve a higher level of surveillance with fewer cameras and less people. Rev Page 8 of 16

9 The Benefits Are Many Users that have deployed intelligent network video surveillance solutions reference a number of benefits as a result of their deployment, including: Reduced shrinkage Identifying and addressing areas of risk in a more timely manner Improved operational efficiencies and customer service Ability to detect sooner and respond faster Proactively combat theft and fraud Enable more timely resolution of customer disputes Identify areas where operational or training improvements needed Grow revenues by transforming the way customer data and behavior is analyzed/reported Optimize staffing decisions Synchronizing video data with POS data records Enable users to quickly drill-down and access relevant data using video analytics Ability to capture and interpret conversion rate data Integrate visual intelligence (video data), audio data, and transactional data into a robust exception-based reporting system Capture and analyze customer traffic patterns and behaviors. Summary By leveraging network digital IP cameras and exception-based reporting, the tools are now available to retailers to effectively detect and deter cashier-related shrinkage. LP departments can now leverage transactional data and surveillance video to identify trends and capture details that can lead to improved loss prevention, as well as improved operational efficiencies and overall store performance. Rev Page 9 of 16

10 About 3xLOGIC 3xLOGIC is a leading provider of intelligent video surveillance software and hardware that seamlessly integrates audio data, video data and transactional data. This logical union is known as the VIGIL platform of video surveillance solutions. VIGIL employs the latest advances in video surveillance hardware powered by 3xLOGIC s full-featured suite of VIGIL video management application modules. At 3xLOGIC, our focus is on improving the management of both systems and processes resulting in: Identification of inefficient practices and personnel Reduction in shrinkage and losses Enhanced customer experience Decreased in-store labor costs Reduction in regional management and travel costs 3xLOGIC can address your concerns about protecting your current camera investments as well as minimizing cost and increasing efficiency by integrating multiple camera networks (analog, IP or Megapixel) from multiple vendors across multiple locations managed seamlessly. 3xLOGIC s video analytics and exception-based reporting enables users to extract and analyze needed business intelligence where they need it, when they need it. 3xLOGIC integrates the software and intelligence into our robust family of VIGIL digital video recorders enabling our retail customers to improve their operational efficiencies while growing their bottom line by seamlessly integrating audio, transactional data, and surveillance video. 3xLOGIC video surveillance solutions are engineered to support current and future technologies, protocols and standards saving you time and money while minimizing your risk. With over 40,000 installations in leading retailers like Best Buy, Nike, and Toys R Us, 3xLOGIC is the expert provider of intelligent video surveillance systems. Rev Page 10 of 16

11 All of 3xLOGIC s video surveillance solutions are: Engineered to expand and grow as needed Designed by users, not engineers sitting in a lab Incredibly easy to use, install, and service Able to provide the best quality video, audio, and data possible with today's technology The best value on the market! Rev Page 11 of 16

12 Frequently Asked Questions: How can video surveillance help us/me improve our operations and customer service? 3xLOGIC s intelligent video surveillance solutions are engineered to help you safeguard your inventory, ensure that your money is not mishandled, and that your customers and employees are safe within your stores. With 3xLOGIC s video management systems you have the ability to view all aspects of your operation providing you a more complete and accurate picture of your business. Have you ever had a cooler go out and you lost all of your dairy products? 3xLOGIC s intelligent solutions can connect to your coolers temperature sensors and provide automated alerts if they show signs of failing. It can also integrate with your POS system and generate an alert when something goes out of range. You can be notified in the event an employee rings up something at the register and no customers are present. In doing so, we provide you with information that can help you more effectively manage your business. Is it possible for us/me to integrate multiple camera formats in a unified surveillance environment and access them remotely? Absolutely. 3xLOGIC s hybrid video recorders support any combination of analog, IP, or Megapixel cameras, including Super HD, 180 and 360 Panoramic or Hemispheric cameras. This flexibility allows you to add Megapixel cameras in key areas, yet still be able to purchase or keep low cost analog cameras for less demanding locations. And with VIGIL Central Management (VCM) and VIGIL Virtual Switch you can manage any number of DVR s connected over an IP network from a single location with ease. You can virtually travel to any of your locations at the click of your mouse. Rev Page 12 of 16

13 How can we/i ensure that reliable data is available to my managers to help them make informed decisions when they need it? 3xLOGIC s intelligent video surveillance solutions capture video images and audio data, as well as transactional data, and makes them easily accessible through an SQL database. The database is cross-indexed, so using 3xLOGIC s exclusive SmartSearch utility, you can search transactional data, date/time-stamp information, and audit trails for easy retrieval and review. 3xLOGIC s exception-based reporting module is pre-programmed to flag critical transactions, such as voids, no sales, and item corrects, providing you both visual data as well as transactional data surrounding any potential mishandling of your money. Video footage of the transaction and immediately before it are combined with the corresponding point-of-sale data and labeled for easy retrieval and review. How can we/i capture better customer data and behavior and analyze it? 3xLOGIC s intelligent video surveillance solutions serve as your eyes and ears within your stores regardless of their physical location. All images and data are available at all time, so you can remotely monitor your store locations as events take place, or review images and transactions previously recorded via your laptop or your PC. The recording process continues undisturbed, even while images are being viewed to ensure complete integrity of your digital video data. VIGIL s Video Analytics also allows you to automatically detect, classify and track video content in order to provide real-time alerts and automatic analysis according to predefined rules and scenarios (including dwell-time, tripwire, motion alarms, appearing/disappearing objects, and transactions without customer present), thereby optimizing the decision making process of security and operation personnel. Rev Page 13 of 16

14 How can digital video surveillance help us/me reduce management costs? By integrating your audio, transactional data, and High Definition video into a unified network you can literally see and hear exactly what s going on within your stores at any time, regardless of their physical location. Now you can be at two places at the same time. It is predicted that digital network Internet Protocol (IP) cameras will outsell analog cameras by Why should I consider IP video cameras? Improved Image Detail High-definition digital IP video delivers a minimum resolution 3-time greater than standard analog cameras. The result is greater surveillance area coverage supported by larger and more detailed images that allow for dramatically improved forensic analysis using post-event digital zoom on recordings without pixilation. This means users achieve greater coverage with fewer cameras. Digital video also support new formats including 180- and 360-degree panoramic cameras which further expand coverage with a minimum of cameras. Ease of Deployment and Redeployment Network IP cameras have IP addresses just like any other network device. As such, they can be monitored, managed and updated the same as any other network device. Does migration to IP mean rip and replace? No, just the opposite. 3xLOGIC s hybrid video recorders support any combination of analog, IP or Megapixel cameras, including Super HD, 180- and 360-degree panoramic cameras. This flexibility allows you to add IP or Megapixel cameras in key areas, yet still be able to purchase or keep low-cost analog cameras for less demanding locations. Businesses can choose a migration plan transitioning from analog to IP over time, on their schedule. Rev Page 14 of 16

15 What is AZTECH Compression and What Makes It So Unique? AZTECH is an exclusive video codec developed by 3xLOGIC to specifically meet the needs of data-intense digital surveillance video. Compared with traditional MJPEG, AZTECH can reduce the amount of video storage needed by percent without any additional visual losses. When compared with the commonly used H.264 standard, AZTECH is roughly identical in storage when recording in real time at 30 frames per second. However, when recording at a frame rate of 1-15 images per second (typical for most security applications), AZTECH can save up to an additional 50 percent of storage space compared to H.264, which was developed for the broadcast industry and designed to run at 30 images per second. AZTECH is optimized for Megapixel security recording. AZTECH is able to compress the files size as much as 1/10th the size of the video stream leaving the Megapixel camera. Megapixel camera streams can be recompressed making using Megapixel not only a reality, but truly usable for the first time. You can remotely view Megapixel cameras using a fraction of the bandwidth. Storage requirements for your video are also greatly reduced. The following chart compares the size of AZTECH compressed Megapixel video to the video files produced by an IQeye camera itself. Rev Page 15 of 16

16 Focused On Your Success Our success relies solely on the success of our authorized partners. Together we are forging new opportunities and delivering solutions that exceed our client s expectations and allow them to operate their businesses more effectively. Our partner program is built on a foundation of mutual trust and mutual gain a program in which each benefits from the strengths of the other, and in doing so provides the highest level of customer satisfaction and service possible. In doing so, we enable you to focus on what you are best at; while together we meet the direct needs of the client. If we can be of any further assistance, do not hesitate to contact us. We re here to help you succeed! 6510 West 91 st Avenue Westminster, CO Toll Free: 877 3XLOGIC Office: Rev Page 16 of 16