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Scene digitalization, Hikvision's second growth curve

author:Leifeng.com

"Scenario digitalization, especially enterprise scenario digitalization, is another business direction of the company's AIoT strategy, and the company is becoming an OT (Operational Technology) vendor. ”

This is the latest statement in the section of Hikvision's 2023 annual report to shareholders.

Market demand and technological development, like the left and right foot of the business world, alternate forward, constantly giving rise to new products and new businesses.

Looking back on the past eight years, Hikvision has expanded from video perception to multi-dimensional perception, combined with AI technology, carved out the AIoT industry picture, Hikvision has initially realized the strategic transformation of intelligent IoT, and now the scene digital business is becoming Hikvision's second business growth curve.

For Hikvision, this is another trend after the accumulation of technology and product capabilities.

Scenario digitalization, a new path for digital transformation

While more and more companies are realizing the value of digital transformation, they are slow to act. This is because it is still difficult for them to quickly find the right path for digital transformation.

There are two main paths for the application of digital technology: subversion, that is, digitalization + industry, and empowerment, that is, industry + digitalization.

Subversion is the application of digital technology to change the original production methods, production relations and business processes. This path exists in many large enterprises because they have the ability to build an ecosystem and dominate the industrial chain.

Empowerment is the empowerment of existing businesses through digital technology to improve production efficiency. Driven by the development of technology and market demand, this road is entering a stage of rapid exploration.

The first and very core hurdle of digital transformation is digitalization, that is, how to perceive information and quantify it in a digital way.

In November 2022, the Ministry of Industry and Information Technology (MIIT) issued the Guidelines for the Digital Transformation of Small and Medium-sized Enterprises, giving clear instructions: give priority to promoting the collection of data resources, from easy to difficult, from point to surface, and use small, fast, light and accurate products to lower the threshold for transformation. For large enterprises, it is also necessary to explore how to lower the "data threshold".

There are multi-dimensional and multi-type data "signals" in the physical world, and in the process of collecting data resources, the diversity of perception means will determine the breadth and depth of information acquisition.

It can be said that establishing rich perception is the first and most critical step in serving digitalization.

The more abundant the perception methods and dimensions of the machine to understand the physical world, such as spectrum, sound, temperature, and pressure, the more comprehensive and detailed the information obtained, and the more accurate the decisions generated by AI processing and analysis.

Comprehensive perception can help enterprises break through the boundaries of capabilities in the process of digitalization and stand out in the new market competition and opportunities.

The third industrial revolution brought about "informatization", which made enterprises shift from emphasizing material manufacturing to processing and utilization of information.

At this stage, although enterprises have made achievements in IT informatization, there is still a lack of sufficient data support for the most important business processes, as well as products and solutions based on data to achieve intelligent control and intelligent decision-making.

The fourth industrial revolution has brought a wave of "digitalization", more advanced and intelligent tools and systems, data that is difficult to obtain in the information age can be fully explored, and the value of intelligent IoT data can be better released.

But at the same time, the personalized and fragmented side of enterprise needs is also more prominent.

In this context, the scene digitalization proposed by Hikvision can be said to be an effective way to achieve digital transformation.

Scene digitalization can apply a variety of perception technologies, combined with AI, to all aspects of customer operation, providing lighter and more effective digital transformation solutions to solve various scenario problems of enterprises.

To do this, you have to have real skills.

After 21 years of continuous innovation and accumulation, Hikvision has built three major technology systems: IoT perception, artificial intelligence, and big data.

IoT sensing technology conducts comprehensive data collection and builds a foundation for subsequent data analysis and intelligent decision-making. Eight years ago, Hikvision started with visible light, and systematically extended to both ends until it covered the full spectrum, and then gradually expanded from video to multi-dimensional sensing technologies such as audio, temperature, and pressure.

Scene digitalization, Hikvision's second growth curve
Scene digitalization, Hikvision's second growth curve

In the digital era, data is as valuable as coal and oil, and it is AI that can harness this energy.

Hikvision has been investing in AI research since 2005, and has large-scale applications in the fields of license plate recognition, biometrics, and perimeter prevention. Entering the era of large models, the Guanlan large model was innovatively launched. Today, Hikvision's AI open platform based on large models has been widely used in vertical industries such as security, transportation, electric power, steel, coal, and security inspection, generating more than 100,000 models and landing in more than 20,000 projects.

Hikvision not only applies AI technology to various perception products, but also combines AI technology with big data technology, starting from multiple dimensions such as data collection, data storage, data processing, data analysis, data governance, data security, and data application, and has established a complete set of big data technology system.

To better serve the digital transformation needs of fragmented enterprises, it is also inseparable from the close collaboration of R&D, manufacturing, and marketing.

Hikvision's past 30,000+ models of hardware products are the best proof of its service fragmentation capabilities. Today, in response to the typical application needs of digital transformation, Hikvision has launched a wealth of new digital products.

Scene digitalization, Hikvision's second growth curve

Along the way, Hikvision has relied on technological innovation to form unique advantages in product design and production and seize market opportunities. Then, the advantages will be fed back to production and R&D, promote continuous technological innovation, and optimize products. At the same time, we will take into account both baseline products and customized products, taking into account large-scale needs and personalized needs, forming a virtuous circle.

Scenes, dive into the scenes!

In China's manufacturing and other industries, in addition to the IT level, there are many scenarios that need to be digitized at the OT operation level.

Since most manufacturing enterprises focus on the physical world and lack digital advantages, it is one of the key steps for manufacturing enterprises to achieve digital transformation by using rich perception capabilities to collect multi-dimensional and multi-type data.

In the face of the application needs of complex scenarios, how does Hikvision provide digital products and solutions for different customers and different scenarios based on rich perception technologies?

This can be seen from the cooperation between Hikvision and Huaxin Cement.

In the production process of building materials, in order to make the aggregate (the main material of concrete) conveyed to the next link evenly proportioned, it is necessary to open or close each discharge port in a timely manner according to the shape of the pile. In the past, the detection of this link mainly relied on cameras or manual on-site visual inspection, with low accuracy and a certain lag.

After using Hikvision's millimeter-wave volume radar, the scanning of the warehouse with a height of more than 100 meters and 10,000 tons can be completed within 2 minutes. It not only reduces the labor intensity of staff inventory, but also improves the quality stability by 60%.

Scene digitalization, Hikvision's second growth curve

Another example is assisting the Quanzhou Kitato factory in the detection of foreign objects in canned food.

For food production, foreign object detection is at the heart of quality management. At the Kitato Group's Quanzhou plant, the daily output of canned food is as high as 600,000 units, and it is difficult to meet the efficiency and quality requirements by relying on manual inspection alone.

Xiduoduo introduced Hikvision X-ray intelligent foreign body detection system, combining X-ray and intelligent technology, to solve the interference of X-ray detection on the side wall, pull ring, bottom and other metal cans, automatically identify and reject unqualified products, improve the detection accuracy, and keep up with the "fast pace" of 650 in 1 minute, and efficiently complete the food security inspection work.

Another scenario is belt detection.

In China's industrial field, the number of belts is as high as hundreds of thousands, and once a failure occurs, it will seriously affect production efficiency and cause serious losses to enterprises, but traditional detection methods such as visible light and thermal imaging have many challenges from the application environment.

Hikvision uses optical fiber for vibration monitoring, converts signals into audio for analysis, and combines AI technology to achieve accurate abnormal diagnosis of industrial belts.

From the above cases, it is not difficult to see that Hikvision is moving from auxiliary management to the core business of users by serving a large number of market segments in non-security scenarios, and this new expansion will provide huge growth space for Hikvision's future business growth.

epilogue

Companies that have been able to transcend the times often have similar qualities: they follow the trend and have a solid foundation.

Since its establishment 21 years ago, Hikvision has undergone three transformations in the security industry from digitalization, networking to intelligence, and then expanded to the field of AIoT.

Hikvision emphasizes customer-centricity, keenly grasps the market, and then sinks down, goes deep into the "field", and adds little by little. When we look back, the technical systems, rich product lines and complete solutions that support each other will show a natural result. Leifeng.com

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