May 2007
Netwatch Progress Report (Sunday Times)
Progress Report
Netwatch
The high-tech remote security monitoring system developed by Carlow-based Netwatch is now being used to protect property in Ireland, America and Spain, writes Olive Keogh
The challenges
David Walsh and Niall Kelly became interested in commercial security when a friend was attacked when responding to an alarm at his company's premises. Walsh and Kelly were convinced that a safer method of protection had to exist and set about finding it.
They identified an Australian system that met their broad requirements and customised it to suit their vision for the commercial market.
With Netwatch, intruders are picked up on a camera the minute they breach perimeter security.
An operator in a 24-hour control centre reacts with a verbal warning asking them to leave. This usually stops people in their tracks.
Netwatch can also be used to protect individuals, restrict access and monitor critical facilities such as IT installations.
The company identified its challenges as scaling up at home and abroad, developing the skills of the management team and breaking into the American market.
What the experts said
Mary Lou Nolan, from Hewlett-Packard, said that, given the high labour costs for its Irish control centre, Netwatch outsourcing possibly to India. Marc Rogers, of Deloitte, said Netwatch should capitalise on its first mover advantage with a targeted marketing campaign.
In relation to upskilling the Netwatch team, Ian Mernagh of Bank of Ireland, said the company needed to decide on its long-term objectives and identify the skills needed to achieve them.
Action taken
The firm pushed ahead with growing its business in Ireland and America. As a result, its turnover is up from €3.5m to €5.6m with good growth in profits.
A full-time sales and installation team has been located in America and the company now has 25 sites there. At home Netwatch has added another 200 customers bringing its number of installations to more than 600.
To strengthen the management team, Netwatch made key senior appointments in operations and control centre management. Walsh and Kelly have been putting a big effort into developing their leadership skills through attending courses at the Irish Management Institute and the Small Firms Association.
Conclusion
"The outlook in America is very positive," said Walsh. "Our Spanish business is also growing mainly through referrals. At home, the business is thriving and we are considering whether or not to enter the domestic sector.
"We have put time into bringing everyone up to speed on our vision for the company and we have also considered and rejected the idea of outsourcing the control centre. We fell local IT graduates are an essential part of the service we offer."