Panasonic Spin-Off Camera Manufacturer’s Growth Strategy
A Future Created through “Open Policy” and “Time-based Competition”
As I explained earlier, our open policy and time-based competition, two strategic concepts that initially appear unrelated, become closely inter-related and are simultaneously realized through the introduction of the modular concept.
For i-PRO, our current aim is to reclaim the lead position in the security camera industry, which Panasonic once held. Again, since we began on our independent journey, we have renewed our relationships with leading global VMS vendors who now consider us one of their most important partners. At the same time, the number of system integrators worldwide that use i-PRO cameras has increased by 50% compared with 2019, and system integrators who were rivals of Panasonic are starting to use i-PRO cameras. In a few years, I expect we will be able to reclaim our former lead.
But I will not be satisfied by that, because it will only signify a change in the industry hierarchy. We aim for market creation through business model innovation. The built-to-order (BTO) model started by Dell Technologies brought a new wave to the PC industry. This is referred to as the Dell Model—they can provide various customization because they introduced a modular concept before others. i- PRO’s new business model also adopts this modular concept.
What then is happening in the AI industry? Humans are said to obtain 60 to 80% of their information through sight. In the same way, 60% of the information used by AI as material for analysis is image data. By our estimate, potential demand in the AI camera market for industrial use alone is worth around 400 billion yen. As I mentioned earlier, all cameras used for AI should be unique; the required specifications and performance differ depending upon the target. Cameras have many variables that should be optimized, including angle of view, distance to the object, resolution, shutter speed, and depth of field. But there are no manufacturers anywhere in the world that customize cameras for each user.
Therefore at present, users have only two options—either pay a fairly high price to have them customized, or compromise with a standard camera available in the market. The AI market is extremely fragmented, and although cameras lie at the core, there are none that can meet such diverse needs. This is where i-PRO fits in.
i-PRO has a record in imaging technology with cameras for surveillance and medical use, and we have already expanded this technology to generic modules that we can assemble like building blocks. Essentially, we can build BTO cameras, like BTO PCs. In addition, we can flexibly adapt to user needs, for example, processing AI images on a server or the cloud, or using edge devices installed in the camera body. In the near future, there is likely to be a shift towards edge computing where cameras themselves feature AI instead of needing to send images to a server or the cloud. In this case, demand for i-PRO will grow even more.
i-PRO’s BTO cameras are derived from modules developed for surveillance and medical cameras. Through operations honed with time-based competition, we will be able to provide low-cost items in a short delivery time from just one unit. We began sales of such camera modules on a test basis in June 2022, through Amazon Japan websites. Users can also easily download the software needed to control the cameras and to analyze images. After you unpack the product and connect it to a PC, you can immediately begin image AI experiments. If it does not work as hoped, the user can replace the lens, sensor and/or interface and try again. We will gradually increase the number of modular items, expanding our range to respond to diverse needs. For engineers forced to work on-site at the client company, developing solutions through trial and error, BTO cameras are sure to be a savior.
The leading actors in the AI market, in addition to AI ventures, are engineers and programmers, including students and tech geeks. i-PRO wants to create a new market for BTO cameras and promote the advancement of AI by supporting such people. In 20 years’ time, even in 10 years, we hope people will mention us when looking back on their programming or AI industry experiences. This is our dream.