Video security firm must focus on global expansion
Company focus: Netwatch
Established in Carlow in 2003 by David Walsh, group CEO, and Niall Kelly, director of technology, Netwatch deploy the most advanced video processing technologies to proactively monitor and protect their client's properties and assets.
Netwatch is unique as it proactively protects properties using live audio warnings to ward off intruders. Intervention specialists direct operations remotely from the Netwatch communication hub in Carlow, visually verifying the intruders, and intervene as soon as security is breached by verbally alerting the intruders that they are being watched with a personalised warning.
In the majority of cases intruders flee the scene upon hearing the audio warning – preventing a crime from ever taking place. In all other circumstances, the authorities are notified and the intervention specialists are able to give them insight into the situation before they arrive.
Netwatch has prevented more than 40,000 crimes since 2003 and currently monitors in excess of 33,000 cameras all across the globe. It was the first company in Europe to combine specialist video technology with satellite communications to provide safe, preventative, immediate and cost-effective solutions for clients.
Senior Partner, Mazars
Netwatch should continue to focus on the many opportunities available overseas. When doing business overseas there are numerous barriers that may need to be overcome, such as identifying foreign business opportunities, locating or analysing new markets and contacting potential overseas customers. Netwatch might consider addressing these barriers through strategies such as consolidation or strategic partnerships with other security providers – where complementary benefits and relationships can be leveraged to mutual benefit, working closely with industry representative groups and national development authorities and forging greater links with companies in similar sectors – for example to foster greater knowledge sharing.
Companies expanding into international markets need to be innovative if they are to succeed in building a strong international platform. This is good news for Netwatch as it has invested heavily in cutting-edge technology which provides a safe and cost-effective protection solution for its customers.
The investment Netwatch has made in the research and development of new technology has allowed the company to expand successfully in foreign markets. Netwatch should continue to invest in technological advances to stay innovative and further develop its global offering.
Tax Partner, Mazars
The value of the Netwatch product offering is underpinned by a platform of smart and innovative technology.
For companies operating in the IT sector, the current hot topic of discussion centres around what jurisdiction the IP should be held in. This interlinks with the management of the groups effective tax rate. These issues have come to the forefront as a consequence of the broad ranging and ambitious Base Erosion and Profit Shifting project (BEPS) currently being undertaken by the OECD.
Companies have to consider where their IP is held. This could also be interlinked with decisions on where to undertake future R&D. An intrinsic element of the Netwatch product offering is live personalised audio warnings, coupled with direct interaction with law enforcement. Personal intervention is required to fulfil these elements.
As theirs is a 24-hour offering, it is practical from financial and operational perspectives if call centres were based in varying jurisdictions. It need also to be considered from a tax perspective.
While some jurisdictions may appear to be low cost, they can impose strict and difficult to navigate transfer pricing obligations. The real effect can be costly compliance obligations and a drain on internal resources. Housing outsourced services in low cost jurisdictions can be of benefit.
Business Advisory Services Partner, Mazars
The quality of the leadership team and where they focus their attention are key determinants of the success of a company.
Fast growing firms like Netwatch have a lot of competing demands – managing cashflow, obtaining finance, identifying strategic alliances, recruiting and retaining talent, expanding internationally, communicating with customers and being innovative. However, fast growing companies often have limited executive resources and may not know where to focus their time and energy.
To help, we have developed the Mazars Quick Score (see www.mazars.ie to take an online assessment of your business). This tool helps companies to analyse their business over a range of different key success factors, including:
* Business (reputation and market position)
* Strategy, product and service people (strategic management, culture and communication, change management, HR)
* Finance (operational performance, risk management, cashflows)
* Future (innovation with a vision for the future)
By using the Mazars Quick Score, Netwatch can understand where the business currently stands and what key success factors the leadership team of the business should prioritise.
Sunday Indo Business