Securitas AB Annual Report 2005

Securitas Systems
Bell Security, acquired in 2004, is today a fully-integrated part of the company. Jon Morris (left), Project Manager
at Bell Security, discusses an installation with a customer. Service Technician Matt Daniels (right), installs an alarm
in Tower 42, the tallest building in London’s fi nancial district.
Other companies within Securitas Systems have adopted
the product, which offers distinct benefi ts for customers,
especially banks with their own communication
networks and high demands on reliable, cost-effective
alarm monitoring.
Objectives and strategies
Securitas Systems has two main fi nancial objectives:
■ annual sales growth of 8–10 percent
■ a return on capital employed exceeding 20 percent
Sales growth of 8–10 percent is estimated to be reasonable
and is important in order to create portfolio growth
and a reasonable profi tability level. Signifi cantly lower
growth would mean the loss of market share.
The long-term objective of at least a 20 percent return
on capital employed is important in order to maintain
focus on capital use and profi tability in a business where
acquisitions are part of the strategy. Acquisitions should
offer the potential to reach this objective within 2–5
years. The timeframe varies depending on the size of
the acquisition, whether it marks the launch of a new
segment or new geographical market, or whether it
complements an established business.
To create growth and improve profi tability, Securitas
Systems follows a strategy focused on customer segmentation,
centralized purchasing and acquisitions.
The value chain
Product Development
Specifi cation of
end user needs
Sales and project
management
Customer segmentation
One of the main reasons for segmenting customers is
that it provides the basis for a greater understanding of
their security needs. This knowledge makes it possible
to adapt the entire value chain to each customer’s needs.
Segmentation also facilitates identifi cation and integration
of acquisitions. All acquisitions must be specialized
in a specifi c segment.
Banking and fi nance
The strongest established segment in Securitas Systems
is Banking and fi nance. The offering consists of security
solutions for banks’ head and regional offi ces, comprising
products, installation and a number of services such
as “helpdesks”, alarm monitoring and response, remote
monitoring and training of alarm and security specialists.
Retail chains
Retail chains typically have many similar units spread
out across a large area, often an entire country or several
countries. Customers want a uniform security concept,
an overview over costs and functions, and some form of
functional guarantee. This segment is growing quickly in
Europe and the USA, and Securitas Systems will expand
its presence in the segment.
Service and
maintenance
Anna Jansson deputy branch manager at
the Security Center in Stockholm. Thanks
to state-of-the-art technology, operators are
able to identify the signal in question when
an alarm goes off, and thus quickly determine
the type of response required.
Monitoring and
customer support
A clear value chain allows Securitas Systems to enhance its offering to the customer. The offering is based on pure installation
and service concepts which are adapted to various segments, such as banking and retail chain customers. Product development
and production lie completely outside Securitas Systems’ value chain. Technical solutions and systems are procured via
selected external partners in order to obtain favorable pricing and be able to infl uence product functionality and design.
58 SECURITAS 2005