The Business Case for Video Analytics: Understanding the Real ROI

  • By Asaf Weisbrot
  • Nov 06, 2024

For security professionals who may be hesitant to invest in video analytics, now's the time to reconsider. In a newly released Omdia report commissioned by BriefCam (now Milestone Systems), the research firm uncovered a compelling story: more than 85% of North American and European organizations that use video analytics achieve a return on investment within just one year. The study, which surveyed 140 end users across multiple industries, demonstrates that security technology is no longer just for security — it's a cross-organizational tool that delivers measurable business value far beyond traditional safety applications.

From Cost Center to Value Generator
Traditionally, the security industry has struggled with the "cost center" label. But video analytics is helping change that narrative. While protecting people and assets remains paramount, today's solutions can deliver quantifiable benefits that catch the attention of business decision makers across departments and organizations.

Take the banking and finance sector, where according to the research, nearly all users report achieving ROI within 12 months. Or look at manufacturing, where nine out of ten organizations see returns within the same timeframe. These aren't just isolated success stories; they represent a fundamental shift in how businesses now can view video security technology.

For instance, while loss prevention, a security application, leads the pack when it comes to the value add of video analytics, with users reporting significant savings in time, resources, and direct costs, that's just the beginning. Organizations are also finding substantial returns in reduced frontline security costs, streamlined reporting processes, and enhanced operational efficiency.

Making the Business Case
For security professionals, the ability to articulate these benefits is vital. When it comes to traditional security benefits, internal site security and staff safety consistently rank as top priorities and video analytics excels at both. Modern AI-driven video analytics solutions reduce false alarms, improve response times, and handle complex security tasks more efficiently than traditional methods.

But beyond improved security, organizations implementing video analytics report significant improvements in their daily operations through automated reporting features that save staff time and improve accuracy. Resource allocation becomes more precise through data-driven insights, while compliance and regulatory requirements become substantially easier to manage and document. These efficiency gains often translate directly to the bottom line.

The business intelligence capabilities of today's video analytics systems open up new value propositions. Organizations can gain deep insights into customer behavior to support marketing and sales decisions, while traffic pattern analysis helps optimize space utilization. Queue management capabilities improve both customer service and staff deployment efficiency. Some organizations are even discovering applications in inventory management and supply chain optimization.

These operational benefits often emerge as unexpected bonuses for organizations that initially deployed the technology for security purposes. Forward-thinking organizations are already pushing their video analytics to deliver even more value by exploring advanced applications like predictive maintenance, automated quality control, and real-time process optimization.

What's driving this rapid ROI? The answer lies in the technology's versatility across multiple business operations. While traditional security applications remain important, modern video analytics solutions are increasingly being deployed across diverse business functions. Today's robust solutions deliver value through their ability to:

  • Reduce manual monitoring needs
  • Automate incident detection and response
  • Streamline investigation processes
  • Generate valuable business intelligence
  • Support regulatory compliance
  • Enhance operational efficiency

The research shows this versatility translates directly to bottom-line impact. Large enterprises in particular see strong benefits, with many reporting substantial savings in frontline security costs and streamlined reporting processes that extend across multiple departments.

Perhaps most compelling for security professionals is that video analytics presents an opportunity to engage with higher-level decision makers within their organizations. When the conversation extends beyond traditional security to include operational efficiency, business intelligence, and measurable ROI, it often elevates to the C-suite level. This broader business discussion helps position video analytics as a strategic investment rather than just another security expense.

Expanding Business Opportunity
For the security industry, video analytics is, and will continue to be, a critical technology. But now, video analytics also represents a unique shift that is empowering security professionals to share in delivering measurable, ongoing returns. By aligning video analytics capabilities with specific business challenges and objectives, security professionals, in partnership with video analytics solutions, are key to a sustainable business model that grows alongside customers' evolving needs.

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