SPECIAL FEATURE

Integrating SECOM Products and Services:
Toward Realization of theSocial System Industry
Information
Services

Security
Services

Cyber tyi
Secur

OCOC MO
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Non-Life
Insurance
OM
MEDC

Medicalメディカル
Services
事業

Education
Services

GIS
Services

Since SECOM launched its first security systems for commercial establishments, the market for such services
has expanded to more than six million locations. The market for home security systems—SECOM’s other mainline of business—is currently estimated at 47 million households. With the addition of new products andservices, such as COCO-SECOM, non-life insurance and medical services, we estimate our total number ofpotential customers to be more than 100 million—evidence of our ability to tap demand by responding tosociety’s increasingly complex needs.
We continue to expand our operations in pursuit of the Social System Industry vision. In 2002, we commenced the second stage of development of the Social System Industry, the focus of which is to maximize synergies between our diverse businesses and services. We have already made a positive start, developing suchinnovative services as COCO-SECOM, a suite of services for locating people and property that integrates
security with IT and GIS, and MEDCOM, an unrestricted cancer treatment insurance policy that combines
insurance and medical expertise. In the following pages, we invite you to take a closer look at these and otherrecent initiatives.

SECOM CO., LTD. Annual Report 2002

5

SPECIAL FEATURE

The Continuing Story of Security
System Development at SECOM
Since it was founded, SECOM hasbrought a succession of groundbreaking new security systems to
success, earning the trust of its customers by faithfully offering two
things: security and peace of mind.
Underpinning this is an unwaveringcommitment to quality, which wehave realized by maintaining control
over every aspect of our services—
an approach we call the “total package system”—from research anddevelopment and the manufacture of
sensors and other equipment toplanning, installation, 24-hour monitoring, emergency response andmaintenance.
The Development Center andthe SECOM Intelligence Systems
Laboratory allow us to react swiftly
to new concepts and respond flexibly to the ever changing needs ofsociety. In recent years, we haveintegrated breakthroughs in imaging
and transmission technologies into
on-line security systems, producing
the advanced SECOM AX andSECOM IX systems. These revolutionary systems make it possible tooffer top-quality security to prevent
criminal activity. For customers
requiring self-contained systems,
we developed and commercialized
TOTAX ZETA, which integrates networking capabilities, a security system and various plant management
functions into a comprehensive
local control system for industrial
complexes and buildings.
However, ideas for new services
do not come only from leading-edge
technology and systems integration.

6

SECOM CO., LTD. Annual Report 2002

We are also continually finding
new ways to integrate the various
functions and capabilities of the
SECOM Group to create new services. COCO-SECOM services,which are a recent example, combine security with IT and GIS services to offer security for people on
the move and for mobile objects.
SECOM AX and SECOM IX—
A New Generation of Security
Systems
SECOM AX is an innovative security
management system incorporating
radically new image sensors. It
allows SECOM Control Center staff
to visually check the subscriber’s
premises using on-site image sensors
when an emergency situation arises.
The image sensors incorporate
microphones to enable Control
Center staff to communicate withpeople on the premises. These capabilities allow the staff to quickly andaccurately assess the situation, dispatch emergency response personnel if necessary and contact therequired authorities. The system
also includes speakers on thepremises so that intruders can beaddressed and crimes avoided.
SECOM IX is a remote imaging
system with special functions forpreventing robberies and othercrimes at late-night retail outlets.
It utilizes streaming video images
provided by a closed circuit television (CCTV) monitoring system andintegrated services digital network(ISDN) transmission capabilities in a
two-way security system that monitors premises operating around-theclock, such as convenience stores,
restaurants and gas stations. Whenon-site personnel observe a crime orfeel threatened, they can press anemergency button to commencetransmitting images and sound fromthe premises to our Control Center.
Or when loiterers or inebriated customers become troublesome, on-site
personnel can press the call button
or lift the SECOM Phone handset torequest remote monitoring. Witheither scenario, the Control Center
staff can use the speaker mounted in
the store to make an announcement
and reduce the chances of a crime
being committed. As more convenience stores are now being equippedwith automated teller machines(ATMs), their security requirements
are rising and the number of storesopting to use the SECOM IX systemis steadily increasing. Similarly,
these systems are being introduced
into kindergartens, day care centersand elementary schools to ward off
individuals behaving suspiciously or
seeking to commit break-ins during
daytime operating hours.
TOTAX ZETA—Integrated Security
and Equipment Management
SECOM’s long-standing expertise insetting up security systems in largescale complexes has been intricately

married with network technologies
in the development of TOTAX ZETA,a large-scale proprietary system
launched in January 2002.
“Building management system”
is a term generally used to refer tothe many systems that control building equipment, such as the electricalsystem, air conditioning, lighting,Centralized Security

sanitation, fire control system,
antitheft system, access control
system, visual monitoring system,
communications equipment andelevators. The demands placed onbuilding management systems havebeen steadily increasing to the point
where it has become difficult for
any one manufacturer to provide

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SECOM CO., LTD. Annual Report 2002

7

SPECIAL FEATURE

8

SECOM CO., LTD. Annual Report 2002

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Security and GIS
COCO-SECOM is a new suite ofservices that integrate security withIT and GIS to tap new demand.
People, vehicles and precious items
are the main focus of these services,which have made steady inroads inthe market since their debut in April
2001. COCO-SECOM services aredesigned to provide solutions torising concern about people goingmissing as a result of kidnapping or
senile dementia, for example, and toincreasing automotive and motorcycle theft. The services have created quite a stir for their novel
abilities to locate moving people andvehicles. They incorporate locating
technologies based on data from
Global Positioning System (GPS)satellites and cellular telephone basestations, together with SECOM’s
accumulated security know-how,
technologies and network expertise.
Customers can also request our

emergency response personnel to go
to the person or object in question.
Since the services were introduced, more customers haveexpressed relief at subscribing forthem than we ever could have imagined, and we have received numerous
requests for new services, which we

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satisfactory solutions. Moreover,building operators have been looking
for systems that will integrate theproducts of many different manufacturers, allowing them to pick andchoose the best equipment for theirneeds.
TOTAX ZETA is the solution
they have been seeking. This system
uses the industry standard communications protocol, BACnet, to makeconnections with equipment fromother manufacturers easy. Orders
for this system in Japan’s metropolitan areas have been brisk since
the product launch.

are incorporating into a revised
service menu. In May 2001, welaunched an automobile emergency
monitoring service. With this service, an automobile equipped witha tiny mobile transmitter sends asignal to a COCO-SECOM operations center when the vehicle is
moved from its parking spot, allowing operations center staff to alert
the owner. In September 2001, we
introduced COCO-SECOM Car
Alarm 2, which adds antitheft functions to the basic service. Suspicious
behavior is monitored while the car
is parked and an alarm sounds if an
emergency is detected. The service
was introduced to combat theincrease in thefts of luxury vehicles
and has been highly successful in
reducing customers’ concern for
their property.
In December 2001, we released
COCO-SECOM EZ. This service
operates with mobile phones provided by KDDI, adding a medical
emergency alert function to thebasic COCO-SECOM services. Whencustomers feel ill after leaving home,they can send an emergency alert signal to SECOM by mobile phone, usinga very simple procedure. As Japan’s
first mobile phone-based emergency
alert service, COCO-SECOM EZ is

attracting considerable attention
from all sectors.
We have also launched a COCOSECOM service for baggage andcargo. On November 27, 2001, a bag
containing jewelry worth approximately ¥100 million was stolen froma Shinkansen bullet train at Tokyo
Station. Fortunately for the owner,
the bag contained a COCO-SECOM
transmitter. The thief was caught
approximately an hour after notification and the goods were returned tothe owner. We were able to use thisincident as a very effective promotional tool to market this service topeople carrying or transporting cash,
jewelry or other precious cargo inbags or briefcases.
In April 2002, at the request of
corporate customers, we expanded
the COCO-SECOM service menu
with the addition of COCO-SECOM
G-Manager, which assists in the
management of automobile fleetsand sales forces. The distinguishingfeature of this service is its groupsearch function, which allows thesubscriber to pinpoint simultaneously the location of a number of
automobiles or people. An extensive
selection of packages offers rate
options for different requirements,
making COCO-SECOM G-Manager
an attractive option for most companies. The service is thus contributing
significantly to improved efficiency,
customer service and security fortransport companies, taxi firms andcompanies with large groups of sales
or maintenance staff.
We will continue to add new
COCO-SECOM services as we
increase our awareness of customer

needs, and will ensure these services
are affordable and convenient. By
doing so, we will continue to tap thegrowing market for mobile security.
A Solid Platform for Medical
Services Development
On March 1, 2002, we reorganized
our medical services business bymerging our medical services
department with three related
subsidiaries—Secom Home Medical
System Co., Ltd., Secom Care
Service Co., Ltd., and Secom Kampo
System Co., Ltd.—into a new company under the name of Secom
Medical System. This move arosefrom our realization that a flexible
organizational structure would be
required to keep decision making
apace with the changes in Japan’s
medical system and the evolving
medical services market. As theprincipal company in our medical
services business, Secom Medical
System is responsible for planningand coordinating all Group medical
services. It is also charged withmanaging and developing medical,
health and personal care services
as an integrated business, thereby
enabling the Group to ensure thehighest standard of service. The
company’s current operations
include pharmaceutical services,
home nursing services, home personal care services, health foodsales, the Hospinet remote image
diagnosis support service, an electronic medical report system andmedical equipment sales.
Our pharmaceutical services
include preparing intravenous solutions in the SECOM Pharmacy

SECOM CO., LTD. Annual Report 2002

9

SPECIAL FEATURE

cleanroom and delivering them topatients’ houses, assisting patients
to convalesce in the comfort of theirown home.
Our home nursing services
involve nurses acting under the guidance of patients’ primary doctors tovisit them at home, observe their
medical condition, treat them forbedsores or manage catheters andassist them with rehabilitation. We
are expanding our network of visiting nurse stations throughout thecountry, thereby enabling us toextend home nursing services thatfall under the national health insurance and long-term care insurance
schemes in more communities.
We also provide Medidata, an
on-line home medical support system. This system integrates medical
expertise with IT to test and transmit data on physical parameters,
including blood pressure, temperature, heart rate and blood oxygen
saturation rate. The data obtainedby an automated device in the homeis transmitted on-line to a nursing
facility, where a nurse checks it for
abnormalities and reports the results
to the subscriber’s primary physician. This paves the way for early
diagnosis even before a patient may
be aware of explicit symptoms.
As the pioneer of home-based
medical care in Japan, we provide
home personal care services. These
include dispatching a helper to assist
with personal hygiene, bathing,exercise, meals and other activities
required in daily life.
Our medical services businessalso encompasses SECOM Health
Food, a line of health food products

10

SECOM CO., LTD. Annual Report 2002

prepared from natural ingredientsin accordance with Chinese herbal
knowledge.
Hospinet integrates medical services with IT to create Japan’s first
remote image diagnosis support
service. Offered to medical institutions, this service transmits images
obtained with medical scanningequipment, such as magnetic
resonance imaging (MRI) and computerized tomography (CT) devices,
over ISDN circuits to the Hospinet
center, where our diagnostic experts
examine the data and provide consultation to the primary physician.
Hospinet is of great benefit to patients
because it assists the primary physician in correctly diagnosing andtreating the illness. From the institution’s perspective, the service makes
efficient use of the advanced diagnostic equipment in the region’s
hospitals and examination centers.
In March 2002, we launchedanother system that integrates
medical services with IT: SECOM
Ubiquitous EMR. Patients recuperating at home require treatment froma team that may involve the primary
physician, visiting physicians, visiting nurses and pharmacy. Membersof the team must share data about
the patient’s treatment. SECOM

Ubiquitous EMR is the first electronic report service for home medical care in Japan that supports ateam approach. No matter where
they happen to be, authorized personnel can quickly obtain andrecord the information required totreat the patient. We view this service as an essential part of the IT
infrastructure for team-oriented
medical treatment and, since there
are no additional burdens placed on
physicians or medical institutions,
we believe it will play a criticalrole in expanding acceptance ofhome-based medical services.

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In our medical equipment business, we are addressing the needs ofindividuals with disabilities. The My
Spoon robot, for example, helps people who have difficulty moving theirarms to eat with only minimal movement of one part of the body, essentially eliminating the need forassistance from others. Users canadapt the robot’s operational modeand control device to suit their own
capabilities and requirements.
As the examples above show, ourgoal in the medical services businessis to provide products and services
that contribute in meaningful ways
to a higher quality of life.

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SECOM CO., LTD. Annual Report 2002

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SPECIAL FEATURE

Packaging Insurance Services—
A Complete Continuum of Care
Prompted by our belief that thedelivery of true security and peace ofmind requires preparation before thefact and guarantees after the fact,
the SECOM Group entered thecasualty insurance field in 1998 byacquiring a stake in Toyo Fire andMarine Insurance Co., Ltd., which
was subsequently renamed Secom
General Insurance. Since then, we
have used our resources to maximum effect in creating a steadystream of innovative insurance
products that combine aspects of
security and medical services withinsurance. In 1998, we released
Secom Anshin My Car, an automotive insurance policy that makes useof our security network to include
on-site dispatch services with traditional insurance benefits. Then we
issued Security Discount Fire Policy,
for commercial subscribers tocentralized security systems, andSecom Anshin My Home, a comprehensive fire insurance policy forresidential subscribers. Both policies
feature reduced premiums, reflecting
the risk-lowering factor of the
security system.
In October 2001, we created
MEDCOM, an unrestricted cancer
treatment policy combining insurance services with medical expertise. MEDCOM is the first insurance
product in Japan to fund cuttingedge treatments. Although mostJapanese residents participate atsome level in the national healthinsurance scheme, its scope of coverage is limited. As effective treatment varies for each cancer patient

12

SECOM CO., LTD. Annual Report 2002

and because we believe patientsshould have access to advanced
and innovative treatments, we found
it worthwhile to offer an unrestricted
treatment policy that enables policyholders to take advantage of coursesof treatment not covered by thenational health insurance schemewithout worrying about how to fundthem. The policy is not limited tofinancial coverage; it also includes
referrals to selected top cancer
treatment centers, assistance withhospital admittance procedures,consultation with specialists and thesolicitation of second opinions. We
are proud to offer this policy and theaccompanying services as part ofour mission to provide security andpeace of mind to customers andto remove some of the worries ofcancer patients and their families.

Cyber Security—Protection for the
Wired WorldThe cyber security field has given
the SECOM Group an opportunity
to showcase its ability to fuse security expertise with IT know-how tocreate new businesses. The SECOM
Group entered the networking
business in 1985, the year the field
was liberalized and opened to
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Japan. We lost no time in establishing a solid body of expertise in
information security.
The Internet is rapidly becoming
a key tool for many activities, but
the cyber world, like the real world,
is not without its dangers. Security
measures are required to cope withunauthorized intrusions and otheron-line criminal acts. The reliabilityof the Internet also requires data
centers to be designed to ensure stability. To answer the call for security
and peace of mind in the cyberdimension, Secom Trust.net built
the SECOM Secure Data Center.
This center is the culmination of
SECOM’s expertise in physical security, cyber security, networking
technology and operations. The
Center houses customers’ servers
and sees to the operation and monitoring of the computers as well as
their connections to the Internet.
The physical safety and stability ofthe systems are protected by thebuilding’s security systems andstrictly enforced access limitations,while Internet-based intrusions andviruses are prevented by the 24-hourvigilance of our cyber security systems. We consider the SECOM
Secure Data Center to be an essential component of the infrastructurenecessary for establishing the Social
System Industry.
As part of its cyber security services, Secom Trust.net offers digitalauthentication services and network
security monitoring services. In thedigital authentication market, public
key infrastructure (PKI) services
are furnishing the Internet with aneffective means of establishingcredibility among users. SECOM
Passport for Web, which issues
digital uthentication certificates,
provides the assurance that a website is legitimate when a person
makes a purchase or other financialtransaction, and encrypts the information to protect the privacy of
individuals and companies. Similarly, SECOM Passport for Members
issues digital authentication certificates to individuals who are members of companies or organizations.
In addition, we draw on our digital
certification expertise to set up andoperate systems for organizations
wishing to establish their own digital
certificate authority. We have alreadyreceived orders to set up and operate digital certificate authorities forfour major financial institutions inJapan, based on the Identrus protocol established by major banks inJapan, North America and Europe.
We have also had the occasion todemonstrate our mastery of government public key infrastructure(GPKI) services.
Our network security monitoring
services are designed to provide security and stability for our customers’
IT systems. We monitor and reporton threats to security, as well as network operating status and network
traffic. SECOM Intrusion Detection
Service supplies around-the-clock
protection against unauthorizedaccess and SECOM Virus Monitoring
Service monitors and protects
against malignant digital viruses.
We are currently working toestablish a “Trusted Service Provider”
business, which combines cybersecurity with network services. Our

intention is to offer the same levelof creativity in providing security
for our customers’ information
assets as we have for their buildings,
equipment and other physical assets.
Toward Realization of the Social
System Industry
The integration of the SECOM
Group’s businesses and services has
just begun. As we embark on thesecond stage of development of theSocial System Industry, we plan to
package products and services tocreate unprecedented, socially beneficial offerings that will catapult theSocial System Industry into reality.
Our target markets encompass both
the workplace and the home, fixed
and mobile security, and physicaland cyber security. To win customer
acceptance, we will not just invest
our resources effectively to createcompetitive products and services.
More importantly, we will concentrate on raising customer satisfaction. When we succeed in theseobjectives, and more and more customers are enjoying the Group’s
products and services, we will transcend the second stage of development of the Social System Industry
and enter a new phase of growth.

SECOM CO., LTD. Annual Report 2002

13