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Edge of Disruption: A Hybrid Distribution Paradigm

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Edge of Disruption: A Hybrid Distribution Paradigm

Hello, I’m Byron Whetstone, the CEO at American Direct and today I want to share with you some observations I have about the disruption that is underway. In our traditional business as contract hardware dealers we’re being disrupted by technology, we’re being disrupted by the manufacturers we buy products from and we’re being disrupted by competitors we never knew would be in the space. I think the battle rages around us related to who owns the door and if you’re looking at those three issues, technology comes to mind because manufacturers want us to buy products but our clients, our customers, even our general contractors want to discuss how the building’s going to perform what the field conditions are where their surveillance of video can be incorporated into the technology at the door and they want to know what services related to technology that we can provide.

In the old days we didn’t provide technology we provided mechanical doors frames and hardware. In the old days commercial integrators didn’t provide mechanical door frames and hardware they provided technology. Those two industries are on a collision course in my view and if you are not future ready it means that you are not thinking about technology. Technology as it relates to the manufacturers, again they want us to provide products that they sell we should be providing products that define value and technology defines value in the environment in which we live and so these guys want to be software companies and they want recurring revenue and those things are going to be where they head with their business and we need to be distributors that can provide those values so that we can participate in those same revenue streams so I think the new reality is our business is not about bidding jobs to general contractors users are making the tech decision and our job is to approach end users with a value-add technology design that includes technology at the edge of the door and we at American Direct want to own the door thank you.