Interviewee
Leo Ryzhenko, CEO at SMP Robotics, a company building outdoor security and inspection robots. His business development experience encompasses various segments of autonomous robot technology such as AI, Robotic Autonomy in extreme conditions, Deep Learning, IoT, MESH networks, as well as constant research and learning demanded by rapidly changing technology.
Transcript
Leo Ryzhenko: We started this company with some pure robotics. About 13 years ago. We started with a crazy idea like “Let's build some autonomous security guards. And that time was not technology. People don't even know what artificial intelligence is. It means no kind of right to kinda mean everything is a problem. And we soon figure out it's not gonna be a security guard, like a replacement for a security guard. It's a more fully autonomous surveillance system with ability to detect and identify potential intrusions. It's mean, it's not fully replaced security guard. It helps security guards to work much more effectively, and one security guard can serve much bigger territory with much better quality. Plus in some cases even provide the ability of security guards to work from home.
Plus it's not necessary to patrol outside because I understand in some countries, like, I don't know, in the daytime maybe it's, it's nice but if you are in a very, very hot place like a plus 50 Celsius or more, you can patrol outside too long. Or if it's a gusty wind minus 20 at night, it's also not a good time to patrol outside. It's meant for many security guards and also kinda patrolling jobs. It's not very easy because it's a weather condition and we kind of take over this situation and we let security guards stay in a nice beautiful office and just check how robots patrolling outside normally 95, 90-9% of patrolling it's mean.
Nothing happened and people can stay in a good condition. It's been in the office and just kinda watching what's going on or even sleeping because our policy is very simple. You know, a lot of security guards just sleep in in the middle of the night, you know, well it's not good people trying to figure out how not to, how that people are not supposed to sleep, but our policy is very easy, let them sleep. If nothing, if nothing happened, let them sleep. If something happens, we have a very effective way to wake up the security guard and let them figure out what's going on.
Elisa Muñoz: How's your day-to-day life? I'm pretty sure that being the CEO you must wear a lot of hats. I don't know, maybe with the engineers? How close are you with this technical side of the company?
Leo Ryzhenko: Well before it's primary technical side be, before we have to prove this is gonna work and our technology gonna work. This is primary development, the primary kind of implementation of new technology.Because even after we have our first models of the robot, we, as we start implementation, test, implementation, not not implementation, we figure out this is not our robot, not what customer is looking for. And customers very quickly explain to us what they're looking for, what they need. And we need to cut the gap between what our engineers think security robots are supposed to be, and what customers think security robots are supposed to be. It's many, many, many, many different things. Oh, first of all, different robots cannot work alone. It means if the robot is working and not communicating with another security system and security guards, it's not make sense, it just simply does not make sense. And we spend a lot of time to make sure the robot working in all this environment, it's been, we integrate our robot with different security system already exist like a visual management system, different communication system, alarm system.
It means we did integration with more than 70 different security systems and integration parts. It's more complicated and more expensive to develop a robot from scratch.
Trust me, hardware, it's not a problem. See, the biggest problem in the business side. First of all, you have to make sure that it is successful and second, that it makes money all the time.
Elisa Muñoz: Wow. I'm pretty impressed. I think it's incredible. Talking about their recording, how, how many capacity, how much capacity does a robot have?
Leo Ryzhenko: Cloud general robots don't have much capacity at all because a robot is connected to the cloud.
Elisa Muñoz: Oh okay. That's why. Okay, that was my question. That's amazing.
Leo Ryzhenko: Right. Robots have only capacity only in situations when robots disconnect from the system. In this case they work, they can work completely kindly separate without any problems. But normally robots send video through VP through a virtual private network to the visual management system. And that management system can store, I don't know, two weeks, three weeks, one month of video from all the robots and every robot has a one big camera with zoom and six cameras. It's called panoramic cameras. It means robots have eyes all around. It's mean.
It means robots don't have such things like a front and back. If somebody tried to squeeze behind the robot, the robot had exactly the same camera in the back as in the front. Plus if a robot I identify some movement or some potential intruder, they immediately zoom. They're not supposed to run to somebody. They immediately zoom in and they can zoom up to 200 meters and identify its intruder or it's some, I dunno, it's something not not related, I don't know cow or dog or something. If it's a cow or talk robot not, not gonna mention, not gonna alarm. But if it's a human or potential human robot can start to communicate directly with this human or they communicate with one of the security guards, close the security guard, notify security guard and can let them talk with potential. Because in many cases, in 95% of the situations intruders, it's not really intruders, it's kids playing around somebody to shortcut some employee trying to smoke at the wrong time, in the wrong place or something like this. It's not like a real intruder, but it's.
Elisa Muñoz: Good to have security around.
Leo Ryzhenko: Right? Yeah. It's good to have a security round and plus robots also learning how to identify the kind of real intruder from kind of, I mean real threat from kind of not from not a big problem because robots continue to learn, robots continue, it's mean. We didn't train robots on territory like for a fast day or fast two days. We create multiple roads and robots switching the roads and moving on the territory and make sure they cover the maximum kind of perimeter or maximum amount of territory. And every day he continues to learn and continue to create mathematical models of the territory. And as it's more, as more robots work on a territory as better as they work altogether.
Elisa Muñoz: I've noticed that most hard work companies struggle with purchasing, you know, like this process of procurement. Especially after the pandemic, you know?,. So why do you think it has been a challenge there?
Leo Ryzhenko: Well, yes, we do have some problems with purchasing some electronics, but again, it's not a problem with purchasing. It's a problem with the delivery type. Because right now, before we can purchase all parts from the robot for two to four weeks, it means from there purchase everything delivered. But from two to four weeks right now some parts are delivered up to 20 weeks.
Elisa Muñoz: 20. Wow.
Leo Ryzhenko: And because of that, we have to purchase it upfront. It means we have to invest more money in the parts. It means we are trying to purchase more parts to make sure we have enough reserve to satisfy all our customers. And right now we're working with multiple, we have a lot of investors who really want to invest in this business because let's say the current market situation, you know, it's very bad. The US market lost 20 trillion last year. Well, the property market is also not too good. It's mean cost of the property is also going down. You know, cryptocurrency is also not doing well. It means only one as I know very, very healthy business, which is growing like crazy. It's robotics, not not just security robots.
Elisa Muñoz: Yeah. Robotics.
Leo Ryzhenko: Indeed. All kinds of robotics. Yes. And, investors are very excited and really want to invest money.
Elisa Muñoz: That's true. I mean, talking with different CEOs and founders in the robotics industry, and talking about purchasing, most of them tell me about how they organize and about what systems they are using in order to organize.
Some of them do not have systems. Some of their teams, like their engineers, are working through Google spreadsheets or stuff like that. So I don't know, I think this process is really interesting. You know, because they are working with hardware and buying it.
Leo Ryzhenko: Well see, trust me, hardware, it's not a problem. Okay, well instead of one week they deliver in four weeks, it's not a big problem. See, the biggest problem in the business, first of all make the business successful and second, make sure the business makes money all the time. Because during the covid and all the recession, it shows business not to do well. It's mean if you kind of do sales and depend on the sale day by day. Today there was a very good sale. Tomorrow 90% down or 95% down for multiple reasons. This business, we call that robot as a service and software as a service, they create you a permanent income. It's a permanent monthly income. It means the more robots you have, the more robots you use as more monthly income you have.
Elisa Muñoz: Okay. Wow, that's a really interesting perspective from a CEO. Thank you so much for sharing Leo, and thank you so much for being here, for sharing your experiences. Last but not least, do you have any advice for future CEOs or engineers starting in the robotics industry?
Leo Ryzhenko: Well first of all, thank you for having me here and second, first of all, many people, let's say maybe like a technical co too concentrated on technical stuff, but the world is more concentrated on how to make money and how to make permanent income. This is what a core of the business, it's mean. We are not just making, making money for ourselves. We help people make money kind of on this business. I mean our distributors, we help customers, all customers to save a lot of money. And it's not just about money, it's also about security. Because for example, in California and in many different states in United States, crime is growing up 200%, 300% during last two years or three years.
And security robots can do a much better job. It's mean. Security robots are much more accurate. They never lose attention. They kind of work much better than the kind of security guard in the middle of the night who wants to sleep, who, who called you, knows it's mean. They always pay the same attention and they always kind of identifying potential, treating potential problems in the notify process. It's been a win-win-win situation. It's a win-win situation for customers who have much better security for much less money. Its quality of security has become much better.
Elisa Muñoz: Perfect. Well thank you so much for sharing. It was a true pleasure to have you here at the Builder Nation’s podcast.
Leo Ryzhenko: Thank you very much.
