Cost Center to Value Driver: How Physical Security Is Transforming

Physical security is evolving from a traditional cost center into a proactive value driver, according to the 2026 State of Physical Security Report from the Genetec Research Team. Security leaders, who have historically struggled to quantify their department's value and justify budgets, are now seeing increased recognition of security's contributions to broader organizational objectives.

The transformation comes as physical security increasingly collaborates with other departments, develops business-essential data, and integrates more closely with IT infrastructure. This shift represents a significant change in how organizations view security investments and their potential return on investment.

Cross-departmental collaboration drives new value

Physical security teams are breaking out of their silos and forming partnerships across organizations, creating new opportunities to demonstrate value. According to the report, security teams are collaborating with other departments for various purposes:

• Occupancy management (10%)
• Industrial IoT (11%)
• Visitor management (14%)
• Other business outcomes (24%)

The most crucial partners for security teams include leadership, finance, and IT departments. These collaborations are enabling security to contribute to business objectives beyond traditional protection roles.

"What was once a cost center is becoming a proactive value driver," states the Genetec report, highlighting the evolving perception of security's role within organizations.

Organizations seeking to maximize this collaborative potential should consider implementing a comprehensive digital transformation strategy that integrates security systems with other operational technologies. This approach can significantly enhance cross-functional effectiveness and data utilization.

IT's growing influence in physical security

As physical security systems become more sophisticated and data-driven, IT departments are playing an increasingly significant role in purchasing decisions. This convergence is creating a more unified approach to organizational resilience by bringing together physical security and cybersecurity functions.

The integration streamlines processes and positions physical security as a business enabler rather than just a necessary expense. This collaborative approach helps organizations develop more comprehensive security strategies that address both physical and digital threats.

The growing IT presence in physical security decisions also reflects the increasing digitization of security systems, from video surveillance to access control, which now generate valuable data that can inform business decisions.

Security-IT alignment creates competitive advantage

Organizations that successfully align their security and IT departments can achieve greater operational efficiency and risk management capabilities. According to a recent Gartner study, companies with highly integrated security and IT functions demonstrate 30% better threat response times and higher overall security posture scores.

The vital role of IT transformation in business growth extends to physical security operations, creating synergies that strengthen both functions while supporting broader organizational objectives.

Leveraging security data for business insights

One of the key factors driving security's transformation is its ability to generate and analyze data that provides value beyond security applications. Security systems are now collecting information that can help organizations optimize operations, improve customer experiences, and enhance facility management.

For example, access control systems that track building occupancy can help facilities management teams optimize energy usage. Similarly, video analytics can provide retailers with insights into customer behavior and store layout effectiveness.

By contributing data-driven insights that support broader business objectives, security teams are demonstrating value that extends well beyond their traditional protective function.

Advanced analytics transform raw security data

Modern security platforms now incorporate advanced analytics capabilities that transform raw surveillance data into actionable business intelligence. These tools can identify patterns in foot traffic, detect anomalies in operational processes, and generate reports that inform strategic decision-making across departments.

Organizations are increasingly recognizing the significant benefits of comprehensive cyber security approaches that protect both digital assets and physical security systems from emerging threats.

How to use this information

Organizations can leverage this evolving security landscape in several ways:

1. Evaluate how your security team currently collaborates with other departments and identify new partnership opportunities that could drive additional value

2. Consider the data your security systems generate and explore ways this information might benefit other business functions

3. Involve IT early in physical security planning and purchasing decisions to ensure systems integrate effectively with your technology infrastructure

Measuring security's business impact

To fully capture security's value contribution, organizations should establish specific metrics that quantify the business impact of security initiatives. These might include:

• Cost savings from prevented incidents
• Operational efficiencies gained through security-generated data
• Revenue protected through business continuity capabilities
• Productivity improvements from streamlined access and security procedures

Implementing formal measurement processes helps security leaders clearly communicate their department's value to executive leadership and strengthens future budget justifications.

The transformation of physical security from cost center to value driver represents a significant opportunity for security leaders to elevate their strategic importance within their organizations. By embracing cross-departmental collaboration and leveraging security data for broader business insights, security teams can demonstrate their value beyond traditional protection roles.

As physical and cybersecurity continue to converge, organizations that position their security functions as business enablers rather than necessary expenses will be better equipped to address evolving threats while contributing to organizational success.