Change is a formidable force that often evokes fear and uncertainty in individuals, organizations, or even whole branches. This also applies to the access control industry. Lee Odess encapsulates this sentiment with the following phrase in one of his Access Control Executive Brief’s: “Change is hard. Change has a level of the unknown. Change challenges people. Challenge threatens institutional norms.” As the access control industry undergoes significant transformations, it encounters three key challenges that demand attention and resolution. In this blog article, we’re summarizing Lee Odess’s knowledge on this topic and will delve into these challenges and explore the crucial role of risk-taking in order to overcome them.
1. Digital Transformation
The first challenge is the ongoing digital transformation, which is unlike anything the industry has experienced in its 30-year history. In the past, the industry had the luxury of adopting new technology at its own pace, as its primary focus was on security. However, with the rapid and extensive digital transformation taking place now, the industry must adapt to disruptive changes throughout its entire ecosystem. Rapidly.
“It’s not just the technical disruption, it’s impacting business, processes, channels, communications, and various other aspects. All the way through the entire industry and it’s happening rapidly, widely and deeply.” say Lee Odess.
2. Demographic Issue
The second challenge is demographic-related. Lee Odess sums up the demographic issue:“The industry’s workforce is predominantly male and ageing, including myself. Many executives in our industry are at the end of their careers, where they usually avoid taking risks.”
This demographic issue faces the dilemma of embracing digital transformation while being hesitant to take risks and concerned about their retirement. The question arises whether they have the motivation to drive the necessary changes while feeling threatened by the potential impact on their livelihoods. “I would argue that most do not, and we don’t want to talk about that at all as an industry, but I think it does affect how adoption is happening in our industry,” explains Lee Odess. Although this topic is often ignored in discussions, it impacts adoption in the access control industry.
3. Incentives
The third challenge revolves around incentives. Many companies, particularly large public ones, are incentivized for incremental growth based on legacy products and technologies. These incentives extend from the Board, to the C-suite and leadership teams, creating a trickle-down effect. As a result, there is a bias towards maintaining the status quo and incremental improvements rather than fully leveraging the value created by digital transformation.
“Overcoming these challenges requires strategic and holistic approaches, as they are not solely technical but deeply ingrained in human nature.”, says Lee Odess in an interview.
To fully embrace the benefits of digital transformation, the industry needs to address both the demographic challenges and the misaligned incentives.
The Answer: Embracing Calculated Risk
Introducing more risk into the industry, if done correctly, can reap substantial benefits and spur innovation. According to Lee Odess, one of the calculated risks that businesses should consider is to allocate more resources to new products while reducing reliance on outdated ones. He suggests that the access control industry, which in his estimate currently relies on old products 95% of the time and introduces new ones just 5% of the time, should shift towards an 80% reliance on existing products and a 20% focus on innovation. He stresses that this increase in innovation doesn’t undermine current practices but rather complements them, and can be managed without disrupting the majority of ongoing operations.
His appeal for businesses: Foster a culture that values innovation. Get comfortable with risk-taking. This will also attract talents. By providing space for individuals with an appetite for risk to experiment and learn from failures, pockets of creativity, curiosity, and experimentation can emerge. These pockets of innovation act as catalysts for driving overall industry progress and generating new ideas.
Additionally, it is important to recognize the value of professional marketers in leadership roles within organizations.
“Hiring skilled marketers and empowering them to tell compelling stories can reshape industry narratives and enable effective communication in both online and offline channels. Investing in marketing talent and embracing an omnichannel approach will yield exponential payoffs in the long run.” say Lee Odess.
In summary, the main challenges faced by the industry currently are the need to adapt to the digital transformation, navigate the demographic shift, and align incentives to drive transformative change. These challenges are not merely technical, but also deeply rooted in human nature, which require strategic and holistic approaches to overcome. To play a role in the future of the industry, it is essential to be open-minded on all levels. Not only regarding new products and technologies, but also in embracing new talents and being receptive to failure as a learning opportunity.
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