Kevin's speech: Meeting Demand In Russia: Innovations in The Design, Production, and Implementation of the Holography Industry's Largest Authentication Project
Holographic Dimensions, Inc., a Public Company (NASD OTC HGRM) is a vertically integrated manufacturer of holographic imagery. The Company is engaged in all facets of the holography industry including research and development, origination, mass replication and technology transfer. The Company's products are incorporated into a variety of security products including, but not limited to, credit cards, tax stamps, passports, visas, drivers licenses, event tickets, transit passes, other negotiable documents and consumer products for marketing. The Company?s customers include Merck, Lilly, NASA, The Coca-Cola Company, Hoescht Marion Russell, Ameritech, and numerous governmental agencies worldwide amongst many others.
Pursuant to Russia Decree #601 (Holographic Confirmation of Product Conformity), a wide variety of consumer products will incorporate a hologram security device to insure the authenticity of products produced in Russia, prevent their diversion and effectively insure tax collection. The project initially involves the production of over 5 billion holograms for use on liquor bottles, computer and consumer electronics products. The Company has commenced production and delivered in excess of 200,000,000 hologram security devices for the #601 program..
Project Objective:
The objective of the project was to provide a superior security technology for the #601 program, at pricing below traditional market prices, to secure one of the worlds largest economies; the emerging Russian Consumer Marketplace. These objectives necessitated the innovative development of new security technologies, higher throughput production technologies, and the establishment of a large infrastructure to administrate, distribute, track, and assess taxable revenue for the Holographic Industry's largest authentication project.
History of the Project: An Innovation In Planning
Realizing that the future of the Russian Economy, including the effective assessment of taxes, collection of revenue, elimination of counterfeit products and diversion in the marketplace, was an essential factor in economic reform, Mr. Igor Sarkisov, Managing Director of Spetsznak almost single handedly planned, drafted and successfully lobbied the necessary legislation leading to the successful implementation of the #601 program.
After an in-depth evaluation of the industry and its potential by Spetsznak, Holographic Dimensions, Inc. was chosen as the only industry supplier capable of fulfilling all requirements for the #601 Project.
Origination of The Master Holograms: An Innovation in Technology
Holography by nature is difficult to counterfeit and requires a significant investment in capital equipment and technology to create the most basic of holograms. Mastering for the initial production of holograms for the #601 Project involved the origination of 80 hybrid high-security hologram images.
Conventional security hologram technologies are time intensive in their creation. Utilizing, new technologies developed by the Company, all 80 master holograms were originated to a level of complexity exceeding the demanding specification of a security holographic image in less than 30 days.
Some of the technologies incorporated in these High Security Holograms on display include:
Conventional 2D/3D Elements Motion Picture Stereograms Fourier Encryptions Amplitude Encryptions Selective Wavelength Fluorescing Rare Earth Elements Micro-tagents Fluorescing Inks Sequential Numbering Other Security Technologies Unique to Holographic Dimensions, Inc.
The Hologram on display is actually composed of more than 1,000 discreet holographic exposures covering a wide range of known and proprietary origination technologies. The level of complexity in their design makes them statistically impossible to counterfeit. Similarly, these holograms can be easily authenticated via a number of levels of security providing for diverse application use and simple authentication in the marketplace under a variety of circumstances.
Manufacturing: An Innovation In Conversion Technology
In order to bring down manufacturing cost, without sacrificing quality and profitability, new replication and conversion technologies were developed to increase production throughput. These enhanced conversion technologies include fully rotary U.V embossing techniques and in-line, high speed, fully rotary die cutting and conversion techniques. Overall, production throughput was increased more than 200 %, resulting in the industry's most efficient production line.
Implementation of the #601 Program: Innovation In Product Distribution, Tracking, and Authentication
The key element in successfully realizing the objectives of the #601 program involves the use of a sequential number on each hologram. As the holograms are manufactured all aspects of product specification and conversion, material specifications, batch numbers of raw materials, security techniques, production personnel, shipping and other information are incorporated into an Internet accessible computer database.
On the distribution end a similar database tracks all aspects of product distribution and use. By utilizing the sequential number we can determine every aspect of production and distribution relative to that specific hologram. The resulting system is a total solution for the security needs of a project of this magnitude.
An Industry Working Together: Innovation In teamwork
This project was too big for any single Company to tackle. The successful realization of the #601 program can clearly be attributed to the teamwork amongst the Companies working on the project: Holographic Dimensions, Inc., Foilmark, and Holographic Label Converting. By carefully evaluating each other's bottlenecks in production, innovative solutions to technical and conversion problems were resolved through collaborative efforts resulting in increased production throughput and a working group whose sum is truly greater than its parts. New projects and new technologies don?t come without growing pains. As in any project of this magnitude small problems arise in the early stages, however, with careful planning and execution all are minimized as the long-term objectives of providing for a cost effective solution to the security needs of the 21st century marketplace are realized
You may recall that several years ago this same team produced the Mexico Treasury Project for which we won the HOLOPACK Award for Best Security Project/Technology. Rest assured that we should do so again in the future with this and other projects. The lesson here is teamwork. Our industry is still fragmented and threatens its very own future with petty jealousy, biased journalism, and unjustified animosity amongst its constituents. The International Hologram manufacturers Association (IHMA) is a solid step forward towards resolving these issues, however, the ability and ultimate success of its efforts still lies in the hands of its members.
Conclusions: The Results of Innovation
The magnitude of this project and others under development at Holographic Dimensions, Inc. and their implementation will make holography the standard for optical variable security devices (OVD) rather than an alternative to complimentary technologies.
What was a science is now an industry. We often forget that without the efforts of Dennis Gabor, Steve Benton, Juris Upatnieks, and Emmet Lieth we would not have an industry, or a HOLOPACK conference today. Similarly, special thanks are extended to the new generation of holography innovators working with Holographic Dimensions, Inc.; Dr. Hans Bjeklhagen, Dr. T.J. Jeong, Larry Lieberman, Dr. Nicolas Phillips, Dr. Vitalli Prisicar, & Jeffrey Weil. If it weren't for their innovations there would be no state-of-the-art technology to propel the industry growth, and integration of complementary technologies, into new markets and related applications. We also thank organizers of this conference, and the tireless efforts of their staff and directors, for facilitating the meeting of the minds and the realization of unique solutions to solve the ever-evolving needs of the security OVD marketplace that come as a result of this Conference. To this end we look forward to working with you all to maximize the opportunities at hand in this ever increasing, evolving marketplace.
I'm sure that all of those in attendance today will find Orlando to be every bit as an amenable a venue as the previous HOLOPACK conference in Amsterdam. On behalf of Holographic Dimensions, Inc. we welcome you to the State of Florida and encourage you visit our Miami Facilities
These new technologies, others under development at HGRM, and the large-scale projects that incorporate them are in the words of H.G. wells "only a small sample of things to come."
Kevin G. Brown, President & CEO Holographic Dimensions, Inc. |