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Focus AI, which specializes in industrial safety and security solutions that utilize AI video analysis, will accelerate its expansion into the system integration (SI) business and rebuild its business model under the new management team. The company’s strategy is to move away from the traditional hardware distribution model and transform into an AI solutions company with a recurring revenue base.
Focus AI announced on May 18th that it had replaced key executives, including CEO Koo Hyun-mo, chief strategy officer (CSO), chief technology officer (CTO), and chief financial officer (CFO) at the annual general meeting held on March 31st.
The new management team plans to go beyond the previous hardware distribution-centered business model centered on CCTV, NVR, and DVR, and strengthen its growth drive by focusing on software development and AI solution platforms tailored to customers.
The company has identified core strategies to expand its SI business model, diversify its sales channels, and expand its supply of industrial safety solutions. In particular, Focus AI explained that the demand for safety management at industrial sites has increased since the enforcement of the Serious Accident Punishment Act, and that it has secured inquiries from major Korean conglomerates through the provision of forklift AI safety solutions.
Sales in the public sector are also increasing. The company said its public sector sales increased from about 2 billion to 3 billion won in 2023 to 7 billion won last year, and this year’s goal is to reach 10 billion won.
Focus AI is evolving its business model by not only simply supplying hardware, but also providing integrated SI services from design, construction, operation, and maintenance. The company says that under the SI model, stock income from operation and maintenance continues even after the system is introduced, providing a stable stock sales base.
In addition, Focus AI is expanding discussions with various domestic and international partners about collaboration in the CCTV business and joint development of software in order to improve its profit structure, which was dependent on a limited number of customers.
CEO Koo Hyun-mo said, “We recognize the limitations of a hardware-centered business model and dependence on specific sales channels.This year’s main goals are to transition to a stock income structure based on SI, strengthen internal controls, and diversify sales channels.We aim to prove our trust in the market with tangible results and numbers.”
He further stated, “In parallel with improving our core business, we are also focusing on strengthening our internal accounting management and governance system.We are building alliances with major accounting firms and law firms, and comprehensively strengthening our external audit function and organizational management system.”
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Focus AI is accelerating the establishment of a recurring revenue model and diversification of revenue sources by expanding its AI industrial safety solutions and SI business.
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