20 INTERVIEW: KEVIN MORRISON, HARMAN
December 2015
Enterprise, entertainment, excitement
As Harman continues to increase in scope through acquisition, how is it structuring itself to make the best use of its capabilities? Paddy Baker talks to the leader of its installation unit to find out
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n case you hadn’t noticed, Harman is changing. At the end of July, the company unveiled its new logo, which, according to a statement, “represents the Company’s mission to enable seamless, connected lifestyles for the home, car, stage and enterprise through its leading audio products, infotainment systems, software and connected services”. At the same time, the company renamed many of its divisions: for instance, Harman Professional became Harman Professional Solutions Division. Also a new Connected Services Division was formed from Harman Automotive Services and two businesses acquired during 2015: Symphony Teleca, a product development and software services company; and Redbend, which provides software management and firmware upgrade services. Shortly afterwards, the company announced a new customer-centric organisational structure, which which took effect on 1 October. This divides the Professional Solutions Division into three strategic business units (SBUs): Enterprise, led by Kevin Morrison; Entertainment, led by Bryan Bradley; and Products, led by Mark Ureda. I speak on the phone to Kevin Morrison, who left his native UK to become a full-time resident
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of Dallas in July, “after going back and forward for about 18 months”. If there’s one word that keeps cropping up during our conversation, it’s excitement: for the potential of recent acquisitions, and for the opportunities that the new structure brings. So let’s look a little more deeply into that structure. The Enterprise SBU, which is where Harman’s installation business predominates, consists of three customer solutions units (CSUs): corporate, education and government – “which has long been the focus of AMX, though now we’re selling the whole Harman product portfolio to these customers”, says Morrison; large venues – comprising stadiums, convention centres, public transport; and hospitality, which includes hotels, casinos, houses of worship, and the bar, club and leisure industry. There’s a small degree of installation within the Entertainment CSU – mainly in the cinema business – but it also comprises touring (offering audio, video and lighting) and retail (that is, Harman products that are sold via retail “such as portable PA and AKG headphones”).
Enterprise growth The revenue split between Enterprise and
Entertainment is “about 50-50”, says Morrison. “But the Enterprise piece is where we think we’ll see most dramatic growth, and that really does face the install business.” So where does he see that growth coming from? “Traditionally in the install business we’ve been very transactionally based. We’ve sold speakers, or architectural lighting, or some control and audio – but we’ve not really gone out there offering the technology as a complete solution. Each of the customer solutions units has their own customer-focused marketing resources and solutions managers who really understand the application.” So, for instance, in Enterprise for example, there are experts who know how to work in higher education and understand how the collaborative classroom works. “We will develop product as well as supply product for that install market, all based on a solution.” It’s a very different model for Harman, although it’s one that AMX had had for quite some time, he says – “working with end users and the channel, and driving that back through end user forums, dealer forums and consultant forums. Now we’re doing this across the whole of Harman Professional, which I think is the right
12/11/2015 15:46