Welcome to AsiaBizTech Web Site

Top Page
Site Map
News at a Glance NEA
 • News Center
 • Internet
 • PC
 • This Week
 • Communications
 • Computer
 • Business
 • Electronics
 • Japan
 • Taiwan
 • Korea
 • China

Advanced Search

(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • Secom Offers Cyberspace Security Services, Founder Says
  • February 4, 1999 (TOKYO) — Secom Co., Ltd., which has most of its sales in the security and alarm business, also offers security services designed for such fields as medical services and information systems, according to the company’s founder.
    Secom has seen both its sales and profit increase for 34 consecutive years thanks to its top-notch management and expansion into network-based services.

    The BizTech group interviewed Ryo Iida, Secom’s director and supreme adviser founder. Iida, who founded the company, spoke mainly of its future directions.

    BizTech: What is Secom’s overall business policy?

    Iida: Secom acquires companies that suit its business policy, but we don’t hesitate to sell them once we judge that they are no longer promising. Of course, sometimes we must sell them because they aren’t sufficiently profitable. That’s the key to Secom’s business efficiency.

    In 1998, we sold Westec Residential Security Inc. and Valley Burglar and Fire Alarm Co., two home security business firms in the United States. Pricing battles are fierce for the home security business in the U.S. market. Thus, we decided to withdraw from the home security business to focus more on our U.S. corporate customers.

    Also last year, Secom sold Tokyo Internet Corp., an Internet service provider. Although the network infrastructure is important, we ourselves don’t need to be a provider of such network services.

    So far this year, Secom liquidated one of its affiliates specializing in CAD-related services on the grounds that the services are not really related to the security business.

    Secom has five pillars of business: security services, non-life insurance, medical services, information systems and education. They are interrelated and they help pave the way for integrated services.

    BizTech: Secom has been a leader in offering home security services based on networks. How will Secom differentiate itself from its major competitors?

    Iida: The company’s main asset is its service personnel stationed at 850 locations nationwide, and those staff members are ready for dispatch on a 24-hour basis. Since 1966, Secom has been steadily increasing the number of such personnel stations across the country and we train personnel to provide security services everywhere in Japan.

    Some people might think that anybody can start a security business with sensor devices and a network, but that is not true. It is most important to have well-trained staff to provide actual services.

    BizTech: Secom established Entrust Japan Co., Ltd. in December 1998 to offer security services for cyberspace. How will Secom position the business?

    Iida: Secom has so far been providing home security services for society, including prevention of intrusions into homes and even monitoring gas leakage. In the future, Secom intends to expand its business to the network security sector for the electronic or cyber community.

    Entrust Japan will provide user authentication services and sell authentication systems. Fifteen companies, including Entrust Technologies Ltd. of the United States and NTT Data Corp., have invested in the firm.

    The company will add a new service in which authentication servers located at corporate customer premises will be managed together. Secom will start the business soon because NTT Data, one of the participants in the project, has already entered the authentication business.

    As for security services for cyberspace, we will tie up with Trend Micro Inc., which has a large market share for anti-virus software products. In April, the two companies will launch a joint virus detection and recovery service.

    The service will use Secom servers to monitor and detect any virus intrusions via a network. The focus will be personal computers in homes and offices. If users cannot get rid of the detected virus with the use of the virus removal software, Secom’s staff will then visit them to do the job.

    When the cyber community is more firmly established, such authentication and monitoring services will be in demand. And there are no national borders in cyberspace.

    The authentication technologies offered by Entrust Japan have already been implemented in Europe and the United States. And I think the service will grow into a huge business in Japan.

    Related stories:
    ¥ Secom to Enter Computer Network Security Service Market
    ¥ Entrust Technology, Secom to Sell CA Software to Financial Institutions

    (BizTech News Dept.)

    News Center for more Asian news.>

    Copyright (c) 1996-2000 Nikkei Business Publications, Inc. All Rights Reserved.
    Privacy policy