Digital Barriers plc Award Write Up

2016 European Terahertz Security Systems

Technology Innovation Award

2016

BEST PRACTICES RESEARCH

© Frost & Sullivan 2016 2 “We Accelerate Growth”

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

Technology Attributes and Future Business Value ..................................................... 3

Conclusion........................................................................................................... 6

Significance of Technology Innovation .......................................................................... 7

Understanding Technology Innovation .......................................................................... 7

Key Benchmarking Criteria .................................................................................... 8

Best Practice Award Analysis for Digital Barriers ............................................................. 8

Decision Support Scorecard ................................................................................... 8

Technology Attributes ........................................................................................... 9

Future Business Value ........................................................................................... 9

Decision Support Matrix ...................................................................................... 10

Research Methodology ........................................................................................ 11

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

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



Background and Company Performance

Industry Challenges

Security systems employing electromagnetic waves have been one of the most prevailing forms of scanning human beings. These systems form an image of the target by sensing electromagnetic waves. Fundamentally there are two types of systems based on the method of imaging: active and passive. Active systems project the waves on to the subject and analyze the reflected waves, while passive systems analyze waves emitted from the subjects.

Amongst active systems, X ray has been used extensively for such screening purposes. However, the use of X rays has adverse health effects which has necessitated the development of alternative technologies. For this purpose ultra-high frequency ranges in the millimeter (mm) wave band and THz range of the spectrum provide the most attractive opportunities.

Use of THz imaging provides its own limitations, including low SNR (signal to noise ratio) and performance degradation in the presence of humidity and high temperature. However, UK based Digital Barriers has overcome these challenges with its innovative ThruVision technology that provides effective passive screening options for a variety of industries.

Technology Attributes and Future Business Value

Visionary Innovation

Digital Barriers effectively tapped into the terahertz frequency range for passive security screening of people. Several years of technology development in the field of sensing terahertz waves and identifying the most optimum frequency band for sensing has resulted in the company being able to bring to market its unique ThruVision technology. Digital Barriers has identified the 0.25 THz frequency as the most suitable frequency for detecting concealed objects including firearms, IEDs (improvised explosive devices), illegal powders and liquids at a distance.

The company’s core IP lies in a passive sensing technology of THz waves which can effectively be used to generate real time images of the person being screened at a distance. ThruVision THz camera systems are lightweight and can be easily deployed and operated, providing a high degree of mobility relative to active millimeter wave scanning systems that are largely immobile. Identifying the potential of THz waves, and development of a robust screening technology of waves at optimum frequency are indications of the visionary innovation exhibited by the leadership team at Digital Barriers.



Industry Impact

There is a need to limit security imaging technologies that possess health risks, as well systems that intrude the privacy of individuals. X rays are intrinsically harmful and active millimeter (mm) wave scanners add complexity by not respecting privacy rights of individuals (as it provides high resolution imagse of anatomical details). Existing scanning solutions are also limited by the infrastructure required to operate them.

The ThruVision camera solution passively senses THz waves in the far infrared range emitted from the body of objects and humans to develop a heat map based image; achieved in real-time and at a stand-off distance. The ultra sensitive camera is able to detect the smallest temperature diferential, to spot potential threats, contraband and anomalous objects.concealed under clothes.

Frost & Sullivan believes Digital Barriers’ ThruVision technology and associated products are poised to impact security and safety workflows in a number of sectors, including: mass land and air transportation, large event security, public spaces, major retail hubs, as well as major borders and customs channels. This is due to the ability to screen people whilst they are on the move so the disruption to those being screened is minimal or invisible.

The major sector where it currently operates is in customs channels, where countries can use the systems to scan all entry and exit points, viz. land, sea, and air. The passive ThruVision cameras can be used for detecting smuggled objects including cash, firearms, narcotics and other illegal substances, generating significant revenue to Customs Agencies. In the retail industry, the technology has been used to counter theft of high value products from distribution centers and warehouses (e.g. random staff screening).

The technology is also suited to enhance security of high risk buildings, military checkpoints, mass gatherings, and public spaces. But the highest impact in the near to medium term is expected to be on the transportation security industry, in areas such as railways, subways, and providing additional airport security. With high security unrest in various parts of the world, ThruVision is expected to enable a more secure and safe environment in a multitude of industries.

Product Impact

The ThruVision line of products provides passive screening at standoff ranges, where the subjects can be screened at a fast and efficient manner. Real time images that can be viewed on-site as well as remotely, with various color contrasting views offer effective detection of threats. The products are extremely compact, lightweight, mobile and easy to deploy and move about inside premises. The ThruVision product line comprises 3 systems, TS4, TS4-C, and TS5. TS4 has a range of 4-10 meters while TS5 provides an extended range from 6-15 meters. The TS4-C is able to provide full height body scanning at 3.5 meters and is aimed at high profile sites.



The sensors used in these systems are developed and manufactured in-house and provide superior sensitivity and resolution. The key advantages of the ThruVision technology include high detection rate, safe for use on humans, mobility, cost effectiveness as it requires no additional infrastructure, ease of use, and faster response times compared to traditional methods. Moreover, the images generated do not possess any privacy concerns as no anatomical details are revealed.

Scalability

Scalability of THz sensing technologies involves the operation of sensing products in diverse environments. THz waves have an inherent drawback of getting affected by warm and humid environmental conditions. Digital Barriers has been able to overcome these challenges by further developing its sensing modules to being capable of use in warmer parts of the globe. The company has already had success in different countries in Asia, and reportedly has sold its products to seven different countries in this region in 2015. Countries in Asia are characterized by warmer and more humid weather than its counterparts in Europe and North America. The ability to serve these challenging environments is testimony to Digital Barriers highly scalable THz sensing technology.

Customer Acquisition

Technology superiority of the ThruVision line of products enables Digital Barriers to acquire new customers. Even though the company is based out of UK, it has a growing presence in the APAC (Asia Pacific) region as well as North America. Digital Barriers, offers various solutions under the security umbrella, including zero latency real-time wireless surveillance capabilities used in vehicles, for safer cities and in body-worn devices along with many other applications, award winning cloud based analytics, integrated surveillance solutions using radar and ground sensors to protect remote locations, and THz sensing. The company is focusing on providing complete solutions, instead of sale of individual technologies which will enhance its ability to acquire new customers as well as the relationships with existing ones. As these solutions are interlinked and employing multiple individual solutions together will provide improved security, Digital Barriers is poised to emerge as a leader in the security, surveillance and safety markets.

Human Capital

Digital Barriers has focused on several associated technologies which marks true visionary innovation of the company. It has invested heavily in developing emerging technologies such as zero-latency wireless video distribution, cloud-based video analytics. . In its first four years of inception, Digital Barriers acquired about 14 companies to gain the technology platforms that were then leveraged to develop its current solutions. The company depends on in-house R&D for technology development and has a very strong research team which includes various experts with PhDs in a range of areas. The strong pedigree of the research team enables Digital Barriers to develop and integrate emerging



technologies seamlessly into their solutions. This is one of the critical factors that enable Digital Barriers to provide holistic security solutions in various markets.

Conclusion

Frost & Sullivan findings indicate that THz sensing technology is poised to impact people screening in various industries. Digital Barriers has tapped into this relatively unused frequency band of the electromagnetic spectrum to develop its ThruVision technology that can be used to effectively detect concealed threats in public spaces, transportation and borders. For its strong overall performance, Digital Barriers has been bestowed the 2016 Frost & Sullivan Europe Technology Innovation Award for Terahertz Security Systems.



Significance of Technology Innovation Ultimately, growth in any organization depends upon finding new ways to excite the market, and upon maintaining a long-term commitment to innovation. At its core, technology innovation or any other type of innovation can only be sustained with leadership in three key areas: understanding demand, nurturing the brand, and differentiating from the competition.

Understanding Technology Innovation Technology innovation begins with a spark of creativity that is systematically pursued, developed, and commercialized. That spark can result from a successful partnership, a productive in-house innovation group, or the mind of a singular individual. Regardless of the source, the success of any new technology is ultimately determined by its innovativeness and its impact on the business as a whole.



Key Benchmarking Criteria

For the Technology Innovation Award, Frost & Sullivan analysts independently evaluated two key factors—Technology Attributes and Future Business Value—according to the criteria identified below.

Technology Attributes Criterion 1: Industry Impact Criterion 2: Product Impact Criterion 3: Scalability Criterion 4: Visionary Innovation

Criterion 5: Application Diversity

Future Business Value Criterion 1: Financial Performance Criterion 2: Customer Acquisition Criterion 3: Technology Licensing Criterion 4: Brand Loyalty Criterion 5: Human Capital

Best Practice Award Analysis for Digital Barriers Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are illustrated below.

RATINGS GUIDELINES

The Decision Support Scorecard is organized by Technology Attributes and Future Business Value (i.e., the overarching categories for all 10 benchmarking criteria; the definitions for each criteria are provided beneath the scorecard). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies.



The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key players as Competitor 2 and Competitor 3.

DECISION SUPPORT SCORECARD FOR TECHNOLOGY INNOVATION AWARD

Measurement of 1–10 (1 = poor; 10 = excellent)

Technology Innovation Technology Attributes

Future Business Value

Average Rating

Digital Barriers 9.5 9 9.25

Competitor 2 8 6 7.00

Competitor 3 7 6 6.50

Technology Attributes Criterion 1: Industry Impact Requirement: Technology enables the pursuit of groundbreaking new ideas, contributing to the betterment of the entire industry

Criterion 2: Product Impact Requirement: Specific technology helps enhance features and functionality of the entire product line for the company

Criterion 3: Scalability Requirement: Technology is scalable, enabling new generations of products over time, with increasing levels of quality and functionality

Criterion 4: Visionary Innovation Requirement: Specific new technology represents true innovation based on a deep understanding of future needs and applications

Criterion 5: Application Diversity Requirement: New technology serves multiple products, multiple applications, and multiple user environments

Future Business Value Criterion 1: Financial Performance Requirement: High potential for strong financial performance in terms of revenues, operating margins and other relevant financial metrics

Criterion 2: Customer Acquisition Requirement: Specific technology enables acquisition of new customers, even as it enhances value to current customers



Criterion 3: Technology Licensing Requirement: New technology displays great potential to be licensed across many sectors and applications, thereby driving incremental revenue streams

Criterion 4: Brand Loyalty Requirement: New technology enhances the company’s brand, creating and/or nurturing brand loyalty

Criterion 5: Human Capital Requirement: Customer impact is enhanced through the leverage of specific technology, translating into positive impact on employee morale and retention

Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts can then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels.

DECISION SUPPORT MATRIX FOR TECHNOLOGY INNOVATION AWARD

High

Low

Low High

Futu

re B

usi

nes

s V

alu

e

Technology Attributes

Digital Barriers

Competitor 2 Competitor 3



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 players and for identifying those performing at best-in-class levels.

360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS



Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan Awards 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 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 winner

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 may 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



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 almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

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Digital Barriers plc Award Write Up

Technology

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