CEO Eric Hutto is focused on shifting Diversified into a global technology solutions company.
SCN: You joined Diversified back in March 2022, but you've held executive positions in companies from different industries. What makes the Pro AV industry unique?
Eric Hutto: The AV industry was at an inflection point. Traditionally, it has followed the path of a conventional integrator. From my point of view, the industry was in a similar position to where the IT sector was years ago, heading where I had already been. To move forward, the focus needed to shift toward cloud adoption and bolstering cybersecurity measures. I felt that my experience within the IT services industry would be more relevant to the future of the Pro AV industry, and I could, in turn, transform Diversified from an integrator into a global technology solutions company.
EH: Our business has evolved as we have narrowed our focus to specific markets and industries. This shift allows us to take on fewer, higher-value projects, allowing us to dedicate more time to our clients. As a result, we're able to address real business challenges rather than focusing on individual project scopes. The outcome has been a growing business with a higher profitability rate, allowing us to invest in both our associates and innovative solutions.
SCN: What are some of the significant business challenges facing the Pro AV industry in general and your company specifically?
EH: The Pro AV industry needs to embrace a different approach to solving business problems. It's no longer about completing a project -- it's about delivering an outcome. This shift requires new technology, with software replacing product and AI becoming an essential part of operations. At Diversified, we've already established a cybersecurity approach, transitioned to the cloud, and are responsibly leveraging AI. Now our challenge is guiding our clients in evolving their offerings to align with this shift and developing our internal team to not only integrate products but to design, implement, and operate.
SCN: Supply chain issues aren't talked about much anymore, but what lessons did Diversified learn from that experience?
EH: We had to move from a purchasing model to a procurement approach. This meant creating a more strategic thinking organization focused on category management, working with fewer, but more aligned suppliers and partners. Additionally, we had to become less dependent on products and look to software to mitigate risk. We also looked for ways to extend product life while boosting productivity. By expanding beyond traditional Pro AV partnerships, we now co-innovate with key partners to ensure we stay relevant for the future.
[5 Sentiments from NAB Show 2024]
SCN: You and I talked about Intelligent Orchestration at your booth at the 2024 NAB Show. For those who didn't attend, what is this new service?
EH: Intelligent Orchestration is designed to automate application deployment into decentralized (cloud) infrastructure. It allows operators to set event schedules or run applications on demand, ultimately reducing financial barriers in accessing the latest media technologies. Using cloud-based and virtualized assets for production can be challenging, especially for clients that lack the in-house expertise. Intelligent Orchestration aims to abstract away that necessary expertise so that users can use cloud-based production in a more user-friendly way.
SCN: How important is managed services to Diversified's revenue strategy?
EH: It is absolutely a focus for us, as clients are always asking for ways to lower their costs. Many have had their budgets and staff reduced but are still expected to meet the same business objectives. While we've made significant progress, there is still more work ahead -- both for Diversified and the Pro AV industry as a whole.
SCN: Over the summer, we learned about Diversified's strategic partnership with Grass Valley. How does this partnership help your customers, and how important are these types of partnerships in today's Pro AV environment?
EH: For us, connecting with partners that help us accelerate innovation and bring solutions to market faster is essential. This partnership was all about velocity and gaining a competitive edge. These types of partnerships are essential to deliver results. No single company has all the talent and ideas necessary to solve every business challenge ahead. By collaborating, we are able to accelerate the industry faster.
SCN: AI continues to be quite the buzzword in Pro AV. How is AI impacting Diversified?
EH: As AI is already here and in use, our first step was to establish a policy that governs the responsible use of technology. There's so much unknown and there's no roadmap to follow. Having said that, Diversified uses AI internally to streamline our processes and reduce administrative tasks, so our talent is more focused on client engagement and solving their challenges. Until we have clearer guidelines and industry precedents, our focus is internal. That said, AI will certainly be embedded in our solutions, but always in a responsible manner.
[Viewpoint: Making AI Connections]
SCN: Is Diversified seeing more "wow" projects (eye candy) or "work" projects (productivity) in the pipeline?
EH: Our clients look to us in a consultative manner to help them understand the art of the possible, as there are bigger things to solve than just the product to deliver. Our team is taught to probe and really understand the business problem at hand so we can take a step back from the project scope and think more broadly. Our clients aren't just seeking products or services -- they want outcomes that provide a competitive edge or create experiences that attract top talent. That requires more "wow" factor than ever before. However, solutions have to be practical, affordable and pragmatic. We can't lose sight of productivity, but we have to deliver the "wow."
SCN: Diversified has also been delivering some impressive installations. What were some of your favorites from 2024?
EH: Some of my favorites include the Museum of Art + Light, Monumental Sports, and our work with a major media and entertainment company with multiple productions in New York, including morning, sports, and news production.