INTERVIEW: The complex business of security systems
Editor Leigh Funston interviews the vice president of security solutions and services with Thales Australia, Pierre Maciejowski.
ASM: How do you rate the Australian security sector compared to other security markets of interest to Thales overseas?
Maciejowski: We can't argue that the security sector in Australia is more interesting for Thales than the Middle East, than Europe or Asia. In this country, we represent a pretty small security market for Thales overall. Even though the Australian security market is pretty small for Thales compared to other markets, Thales is willing to develop its security business in Australia because we are very strong here in other market segments such as defence and air-traffic management. We do think that we are well positioned to build our security business in Australia.
ASM: Are there any segments of the security market in Australia that have particular appeal to Thales?
Maciejowski: Our first major security customer in Australia was Woolworths - we provided the security access systems and products for their new, state-of-the-art Sydney headquarters facility. We do not consider that the type of security infrastructure we provided for Woolworths will be the main driver for our growth in this country. We are a systems integrator and we are looking for security programs that require mission-critical equipment.
ASM: How difficult has it been to convince Australian organisations to
embrace the need to boost their security products and services?
Maciejowski: It is not easy. But we have strong credentials in project management and in the delivery on a worldwide basis of extremely complex programs. We have used these credentials to win significant contracts. For example, in Australia Thales recently completed the APEC 2007 security accreditation system for APEC attendees. We have also just been announced as the preferred supplier to build the communications and surveillance subsystem for the Sydney suburban rail passenger vehicle public private partnership project as the subcontractor to Downer-EDI Rail. Wherever there is complex system integration required for IT security systems then Thales is able to bring high level capabilities and proven performance to the assignment.
ASM: What comment would you like to make about the increased market demand for integrated security solutions?
Maciejowski: As a systems integrator, we take an overall approach based on the best solution that we can provide and a very open technology solution. We use some Thales products and systems and integrate those with equipment we have sourced from other suppliers including some highly capable SMEs to provide a solution to meet the specific needs of each client. For example, that is how we approached the APEC 2007 security accreditation project and it is the same way we are tackling the train system contract in New South Wales. Thales' use of commercial, off-the-shelf products and systems is a real advantage for the customer in terms of maintaining the system after installation and all the cost benefits that go with that approach.
ASM: What more can you tell us about the prestigious APEC contract Thales won and completed successfully?
Maciejowski: The customer was looking for a partner who could mitigate its risk. For prestigious contracts such as APEC, we were able to demonstrate our ability to work with our Australian partners on the national network and also work with leading companies based overseas. Our approach was not to source just Thales technology for the APEC project but rather to use the technology drawn from companies around the world that best suited the needs of the contract.
ASM: How much of an advantage is it for your security business in Australia to be able to leverage off the security credentials of Thales' international operations?
Maciejowski: Over the last five years Thales has developed a very comprehensive, high-performance knowledge management system for each of the Thales Group member entities to share. Our open access to this system provides an ongoing competitive advantage for our Australian business.
ASM: What sort of market share are you looking to achieve in the Australian security sector in say, five years time?
Maciejowski: We are not going to chase every security contract in every section of the security market. We are going to look at contracts in three main vertical markets. The first one will be transport. The second one will be Government. The third will be what we call mission-critical industry; for example, the mining industry. We are seeking about 25 per cent market share in the high technology end across these three market sectors. Existing contracts and trials will mean we are off to a good start in transport and in Government we have just entered the top 10 IT system suppliers. The mining industry is a new one for us. It is a booming market and one in which we will be pushing to gain significant, high-value contracts.
ASM: Are there any major security contracts that you are targeting on the horizon?
Maciejowski: It is very difficult to be specific and mention actual contracts. We have identified 12 multi-billion-dollar potential investments that are set to take place in Western Australia over the next two to three years. A number of the opportunities are communications-related and we will be pursuing those with a partner, Alcatel Lucent. In transport, there are a large number of significant contracts and we will be competing fiercely for those. Our win with Downer EDI Rail to supply the Communications and Surveillance Subsystem and its integration for the City Rail/Railcorp Project underlines our capabilities in transport. All the IT and the e-ticketing programs that may happen in Australia are also important for us. We understand that each state will be launching a train protection system to improve security of trains. We are a world leader in such systems work and we will be competing keenly for all relevant contracts.
ASM: Are there any plans for R&D in security to take place in Australia?
Maciejowski: We will use local industry capabilities and also the R&D capabilities residing in Thales Australia. It is clear that Thales Australia is going to be the centre of excellence for technologies related to the secure accreditation system to leverage off what we have done for APEC. Thales will develop in this country, technologies relevant to security accreditation. We will become the centre of excellence on a worldwide basis for Thales in security accreditation systems.
ASM: Are you able to talk about a timetable for the development of the centre of excellence in Australia for secure accreditation systems?
Maciejowski: Before we launch into an R&D program, we need to understand what the worldwide market is for very secure accreditation systems. Of course, there will be follow-up events to the APEC meetings and of the leaders' summit held in Australia. We need to understand if there is an opportunity for secure accreditation systems for major events such as international sporting fixtures or meetings that require high-level security. We are going to launch this research analysis work very soon.
ASM: I would have thought the demand for such accreditation systems would be enormous?
Maciejowski: Yes, but we are at the high end solution part of the market. So the question is: how many events require the level of accreditation security that APEC in Australia required?
ASM: And no doubt you will be working with Thales overseas in terms of identifying new markets?
Maciejowski: Yes and with their technology as well because in that domain all the R&D Thales has done internationally in biometrics will be a key component of our future offer.
ASM: How do you rate Australian CEOs in terms of how their approach to integrating security into overall risk management?
Maciejowski: Well, when the CEO understands the impact of security on their balance sheet they become very interested in dealing with security. If companies providing security systems and products are unable to communicate the link between security and the balance sheet and revenue, then CEOs in Australia and overseas become less and less interested in the subject.
ASM: Do you have any particular techniques to be able to get CEOs to link security and their balance sheets?
Maciejowski: It depends on the market you are in. It is pretty easy to manage in the aviation industry because you know that people will not travel unless they feel secure. In port protection, the investment levels are still very low around the world because people have not made the link between security and an increase in their business. There is no single model, you need to look at it industry by industry.
ASM: Are there any other comments that you would like to make?
Maciejowski: We are focused on the high end of the security technology market including complex CCTV. Thales in Australia is focused on the risk mitigation that we can provide to our customers.
About the author: Leigh Funston is a former Editor of Australian Security Magazine.