FROST & SULLIVAN BEST PRACTICES AWARD€¦ · Industry Challenges Public and private sectors globally are increasingly adopting biometric technology to improve the safety and security

FROST & SULLIVAN BEST PRACTICES AWARD

Customer Value Leadership Award 2019

FACIAL RECOGNITION - GLOBAL

BEST PRACTICES RESEARCH

© Frost & Sullivan 2019 2 "We Accelerate Growth"

Contents Background and Company Performance .................................................................................... 3

Industry Challenges ......................................................................................................... 3

Customer Impact and Business Impact ............................................................................... 3

Conclusion ..................................................................................................................... 9

Significance of Customer Value Leadership ............................................................................... 10

Understanding Customer Value Leadership ............................................................................... 10

Key Benchmarking Criteria .............................................................................................. 11

Customer Impact ........................................................................................................... 11

Business Impact ............................................................................................................. 11

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ..... 12

The Intersection between 360-Degree Research and Best Practices Awards ................................... 13

Research Methodology .................................................................................................... 13

About Frost & Sullivan ........................................................................................................... 13



Background and Company Performance

Industry Challenges

Public and private sectors globally are increasingly adopting biometric technology to improve the safety and security of citizens, customers, and visitors. Broad sectors such as law enforcement, border security, healthcare, banking and financial services (BFS), and retail are fast adopting biometric technologies to optimize their safety and security measures. In particular, facial recognition technology allows fast and easy authentication and identification of individuals in real time, which has resulted in the technology being implemented in border security, surveillance, and across a wide range of both online and offline financial applications. For instance, the BFS sector adopts advanced biometrics-integrated solutions for enabling secure digital transactions through eKYC. Also, the development of Internet of Things (IoT) and the widespread acceptance of it across sectors, availability of smart clouds, and intelligent data analytics algorithms have made it easier for faster identification and authentication using an individual’s face.

This technology not only reduces the chances of fraud, data and security breaches, and data theft, but also enhances the overall experience by eliminating long queues and lengthy waiting time for customers accessing airports, banking, healthcare, and other facilities. Government agencies and private sectors are using a wide range of biometric modalities such as fingerprint, facial, iris, and voice. Even though fingerprint biometrics find widespread acceptance and use across different industries, it comes with limitations such as lack of liveness detection.

In such situations, facial recognition proves to be immensely useful for quick authentication, identification, and liveness detection. With proliferation of high resolution cameras in electronic devices, the use of facial recognition is becoming widespread for banking and various applications or transactions. In this scenario, the modern and advanced facial recognition solution that offers high-quality safety features, liveness detection, and accuracy rates will be preferred by banking and financial institutions, government agencies, and other security-critical industries. Such a complete solution package with smart algorithms, smart cloud, IoT connectivity, and advanced data analytics to provide key insights will enjoy a competitive edge over peer products by offering high customer value and satisfaction.

Customer Impact and Business Impact

Performance Value

Dresden, Germany-based Cognitec Systems’ GmbH (Cognitec) singular focus on developing face recognition (FR) technology has enabled it to consistently render unmatched performance value for its customers. The company has leveraged its market-leading FaceVACS technology to build a broad suite of FR products that cater to a wide variety of



Side-by-side comparison of facial images

Comparing a face found in a video to a watch list, resulting in a candidate list of matches

applications. It has also expanded globally with offices in Sydney covering the Asia-Pacific region, and in Boston covering the Americas.

The product suite encompasses FaceVACS-DBScan ID for eliminating possibilities of ID fraud, as well as FaceVACS-DBScan LE with cutting-edge video inspection capabilities that prove to be particularly effective in law enforcement investigation cases. FaceVACS-VideoScan enables users to identify a person in real time from live video footage and streams accurately and faster than is otherwise possible with competing products. Cognitec has, in fact, integrated a sophisticated IP video camera into its FaceVACS-VideoScan product. Being designed with powerful capabilities, such as face detection and tracking, this specialized camera ensures images of optimal quality that make real-time face recognition possible under difficult conditions and without the need for either bandwidth resources or hardware components on a large scale.





With Cognitec’s solutions, customers no longer have to search for camera vendors that offer products compatible with their respective FR biometric devices/tools and programs to capture top-quality images of target persons. Conversely, Cognitec software also works perfectly well with the regular HD cameras available in the market as well as the ones integrated into smartphones.

Cognitec also develops the FaceVACS-Entry eGate panels that are instrumental in enabling automated angular movement of cameras for face image capture, which certainly gives it an edge over its peers in the market. The product features a mix of smart hardware that captures images and checks for a live person, and cutting-edge software that facilitates verification of live images against those saved in ID documents, even in databases.

Whereas most competing FR solution providers are start-ups with less mature FR technologies, they do not yet possess the expertise to offer high-tech cameras promising top-quality images; in contrast, Cognitec’s FaceVACS-PortraitAcquisition ensures high-quality images are produced in adherence to the ISO 19794-5 standard for the complete

Cognitec's FaceVACS-Entry panel integrated into an eGate. Automated passport check has become common at airports and other border crossing points, enabled by face recognition.



frontal photo. This has made it a tool popular with passport offices, driver's license and visa agencies for FR and identity management applications.

Backed by a team of proficient researchers, scientists, and software engineers, the company has dedicated 20 years to advance its existing set of FR algorithms with deep learning capabilities and new metrics to cater to a broader array of new applications. In July 2018, Cognitec announced the advancement of the face matching algorithm embedded into its products. New versions of all products now feature the B11 face matching algorithm that demonstrated unprecedented face identification speed and accuracy. As a result, it is now able to compare photos of faces, including passport-style photos of low quality (which are saved in national ID databases), and low quality video surveillance images, against databases containing multi-million images, and it does so more accurately than was possible with the prior B10 algorithm. Looking through millions of images in databases is a tiresome and time-consuming job. With the introduction of this algorithm (and its successor B12 released in February 2019), customers can now identify and verify persons in real time, through live camera images lacking frontal poses, and from recorded videos. Overall, the innovative algorithm used in FaceVACS Engine expedites the process of investigation, prevents/reduces fraudulent activities, and ensures safety in critical security applications.

Frost & Sullivan finds that Cognitec, with its long history of technology innovation, has successfully developed a real-time facial recognition solution that is one of the best in the market. Its algorithm is known for its extremely high accuracy across all age groups and superior performance in youth and senior age groups. The FaceVACS-VideoScan software is able to determine the age range and gender of the people seen by video cameras, and trigger an event sent to smartphone and tablet mobile devices in real-time. In addition, this solution can perform anonymous facial analysis that allows the software to count people, detect movement patterns, and identify frequent visitors and individuals in crowds. Such unique software and camera capabilities make Cognitec’s solution of superior quality in terms of performance value and position it to establish a reputation as a unique company that delivers extraordinary customer value and satisfaction.

Total Customer Experience

Perceived as a trusted vendor of market-leading FR products, Cognitec offers customers the flexibility to customize its technologies to best serve their particular needs. A "smaller footprint" algorithm present in the engine allows customers to build FR applications specifically for mobile devices. Leveraging the powerful FaceVACS product line, customers can also build server enterprise solutions for novel applications, and leverage the application programming interface (API) to seamlessly integrate into other software programs such as Video Management Systems (VMS).

Simple, reliable and well-documented programming interfaces, software development kits that are platform and use-case specific and advanced programming methodologies that come with Cognitec's software products empower both software enterprises and system integrators (SIs) to build bespoke solutions matching their exact FR needs. Apart from



enabling enrollment, identity verification, capture of images and their processing for accurate authentication, it also facilitates in identifying and tracking faces. Thus, by eliminating the need for customers to own standard solutions that may or may not match their specific application needs, Cognitec delivers a highly pleasing customer experience. Customers pay only for what they use. Furthermore, the timeliness of service that Cognitec renders to its customers in the form of local and remote technical assistance, along with customized training, consulting, and on-site support on demand, enables customers to reap utmost value from Cognitec’s products.

Additionally, the uniqueness of Cognitec’s FaceVACS-VideoScan that performs real-time identity checks against image databases, and simultaneously performs count, flow, behaviour, and demographic analysis of people in videos, sets the company apart from its peers. After real-time detection, the solution provides real-time alerts to users via mobile notifications. FaceVACS-VideoScan camera supports Real-Time Streaming Protocol (RTSP)/ H.264 video streams and hence can be integrated with digital video recording systems. The camera is also capable of producing high resolution and uncompressed images, which allows users to achieve high image quality and accuracy. Thus provision of a high performance camera coupled with cutting-edge software result in maximum customer satisfaction.

Customer Acquisition

The powerful capabilities of Cognitec’s market-leading FaceVACS suite of FR products have led to their worldwide adoption by governments and enterprises across numerous identity and security management applications beginning back in 1995. These applications range from border control and law enforcement to video security, ID management, people flow management, and voter registration. In fact, Cognitec has an addressable base of over 400 clients spread across 50 countries worldwide. Its elite list of clients in the APAC region encompass not only smart cities in India for public space checking for terrorists on watch lists, but also major casinos in Macau, for instance, for preventing banned people from entering and posing a security threat to casino patrons.

Additionally, its facial biometrics products have been adopted by drivers’ license authorities in the USA and Australia, as well as authorities that issue visas and passports to prevent instances of identity duplication for fraudulent activities. Law enforcement agencies around the world have readily selected Cognitec’s FaceVACS-DBScan LE for matching the photos and video footage of suspects against databases containing millions of images of lawbreakers and criminals.

Brand Equity

Securing the highest scores in the USA National Institute of Standards and Technology (NIST) Face Recognition Vendor Tests conducted over the years has time and again reinstated Cognitec’s positioning as a premium brand offering top-notch FR solutions for the evolving biometrics market across the globe. This position can be strongly attributed to Cognitec’s passionate persistence to build on its leading-edge FaceVACS technology and



continuously upgrade its products to effectively suit evolving biometrics authentication needs.

Operating as the only company in the world that has been firmly focused on developing state-of-the-art face recognition technologies since its establishment in the 90s, Cognitec enjoys strong partnerships with over 200 SIs and value-added resellers (VARs) spread across the world. The fact that big brands, such as Intel Corporation, licensed Cognitec’s technology for granting secure physical access control on electronic devices, namely mobile phones, laptops, personal computers, and tablets, in place of passwords clearly demonstrates the high-level performance value and customer satisfaction afforded by this well-reputed brand.

APAC Growth Potential

In the APAC market in particular, the demand for facial recognition solutions is expected to increase in the coming years within the commercial and government sectors as organizations renew their licensing agreements for database updates to maintain their photo galleries. In such a scenario, Cognitec’s appointment of Terry Hartmann to the role of Vice President in January 2017 is considered a strategic move to further solidify its competitive positioning in the APAC biometrics market that is characterized by high growth opportunities. Prior to this appointment, Mr. Hartmann led businesses in North America and demonstrated his leadership excellence in implementing biometric technologies for managing identity verification at borders for the Australian Passport Office. In fact, Mr. Hartmann has played a pivotal role in laying down the international standards (ISO/ICAO) for ePassports in the sector of facial biometrics.

Cognitec is currently leveraging Mr. Hartmann’s globally-pioneering expertise in the area of biometrics (identity and security applications) and rich experience in successfully handling global biometrics projects to accelerate its growth. Mr. Hartmann has been looking to widen the use of Cognitec’s holistic set of cutting-edge FR solutions in various applications. Cognitec strongly believes that Mr. Hartmann’s invaluable guidance is empowering its international sales and support teams to effectively fulfil existing and prospective customers’ increasing facial biometrics needs globally.



Conclusion

Dresden-headquartered Cognitec operates as the only company across the globe with a singular focus on building top-notch facial recognition products, including an IP video camera and eGate panels, which guarantees excellent performance value. Its top scores at the NIST FR vendor tests over the years are a clear testimony of its undisputed excellence in delivering products of superior capabilities and value in the FR market.

Based on its market-leading FaceVACS technology, Cognitec has designed a broad portfolio of FR products, including FaceVACS-DBScan ID, FaceVACS-DBScan LE, FaceVACS-VideoScan, FaceVACS-Entry, and FaceVACS-PortraitAcquisition. FaceVACS technology now features the B11 algorithm (launched in July 2018) and the B12 algorithm (launched in February 2019) that has further enhanced the speed and accuracy with which the company’s broad suite of products perform FR for identity verification and security management.

Today, matching images of persons in live video streams or still images against millions of images stored in databases as well as against those in photo-ID documents is no longer a tiresome and time-consuming job. Cognitec’s offerings can accurately verify persons from images or video lacking frontal poses, in real time. Accurate image verification at a faster pace expedites the investigation process and enables the reduction/prevention of fraudulent activities. Such a superior value proposition has led to the installation of its FR products in a diverse range of industries including government, airports, banks, stadiums and casinos globally.

For its strong overall performance, Cognitec has earned Frost & Sullivan’s 2019 Customer Value Leadership Award.



Significance of Customer Value Leadership Ultimately, growth in any organization depends upon customers purchasing from a company and then making the decision to return time and again. Delighting customers is, therefore, the cornerstone of any successful growth strategy. To achieve these dual goals (growth and customer delight), an organization must be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition.

Understanding Customer Value Leadership Customer Value Leadership is defined and measured by two macro-level categories: Customer Impact and Business Impact. These two sides work together to make customers feel valued and confident in their products’ quality and long shelf life. This dual satisfaction translates into repeat purchases and a high lifetime of customer value.



Key Benchmarking Criteria For the Customer Value Leadership Award, Frost & Sullivan analysts independently evaluated two key factors—Customer Impact and Business Impact—according to the criteria identified below.

Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market.

Criterion 2: Customer Purchase Experience Requirement: Customers feel they are buying the most optimal solution that addresses both their unique needs and their unique constraints.

Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company’s product or service and have a positive experience throughout the life of the product or service.

Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality.

Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty.

Business Impact Criterion 1: Financial Performance Requirement: Overall financial performance is strong in terms of revenues, revenue growth, operating margin, and other key financial metrics.

Criterion 2: Customer Acquisition Requirement: Customer-facing processes support the efficient and consistent acquisition of new customers, even as it enhances retention of current customers.

Criterion 3: Operational Efficiency Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high quality standard.

Criterion 4: Growth Potential Requirements: Customer focus strengthens brand, reinforces customer loyalty, and enhances growth potential.

Criterion 5: Human Capital Requirement: Company culture is characterized by a strong commitment to quality and customers, which in turn enhances employee morale and retention.



Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

Conduct in-depth industry research

Identify emerging sectors Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

Interview thought leaders and industry practitioners

Assess candidates’ fit with best-practice criteria

Rank all candidates

Matrix positioning of all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

Confirm best-practice criteria Examine eligibility of all

candidates Identify any information gaps

Detailed profiles of all ranked candidates

4 Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

Brainstorm ranking options Invite multiple perspectives

on candidates’ performance Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5 Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

Share findings Strengthen cases for

candidate eligibility Prioritize candidates

Refined list of prioritized Award candidates

6 Conduct global industry review

Build consensus on Award candidates’ eligibility

Hold global team meeting to review all candidates

Pressure-test fit with criteria Confirm inclusion of all

eligible candidates

Final list of eligible Award candidates, representing success stories worldwide

7 Perform quality check

Develop official Award consideration materials

Perform final performance benchmarking activities

Write nominations Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8 Reconnect with panel of industry experts

Finalize the selection of the best-practice Award recipient

Review analysis with panel Build consensus Select recipient

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform Award recipient of Award recognition

Present Award to the CEO Inspire the organization for

continued success Celebrate the recipient’s

performance

Announcement of Award and plan for how recipient can use the Award to enhance the brand

10 Take strategic action

Upon licensing, company is able to share Award news with stakeholders and customers

Coordinate media outreach Design a marketing plan Assess Award’s role in future

strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan’s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry participants and for identifying those performing at best-in-class levels.

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages more than 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS

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FROST & SULLIVAN BEST PRACTICES AWARD€¦ · Industry Challenges Public and private sectors globally are increasingly adopting biometric technology to improve the safety and security