Many retailers with CCTV cameras could benefit from video analytics, but aren’t ready to move to network cameras and aren’t familiar with the use of video encoders. Video encoders digitize analogue video signals and send digital images directly over IP networks, such as LANs, intranets or the Internet. They essentially turn analogue video systems into network video systems and enable users to view live images using a web browser or video management software on any local or remote networked computers.

Video encoders are the most cost-effective way to turn analogue video systems into network video systems. They also benefit the scalability and cost efficiencies by using video management software on any local or remote computer on a network. Once in the “digital world,” retailers can perform video analytics at the edge using video management systems. They can mix and match analogue and network cameras to make their solutions more future proof as well.

Another approach for retailers to attain the benefits of network video systems without the cost of implementing new systems is the software-as-a-service (SaaS) approach in which video analytics are outsourced to managed services firms with the proper expertise. Retailers pay monthly fees, as opposed to paying traditional licensing fees and ongoing maintenance costs. This way, they spread out the costs and can rely on outside experts to ensure that they are obtaining useful and actionable information to improve revenue, reduce costs and enhance operations.

Loss prevention groups will continue to use video analytics to reduce shrink; we shouldn’t minimize that value. But in a difficult economic environment, retailers are also finding creative ways to improve operations and merchandising with video systems. Because there are cost effective ways to move from analogue to network video systems, we can expect to see this trend accelerate.