Focus AI Launches New Management Team... Accelerates Transition to AI Industrial Safety SI Business

Focus AI, a company specializing in AI video analysis-based industrial safety and security solutions, is set to accelerate its expansion into the system integration (SI) business and restructure its business model under a new management team. The company’s strategy is to shift away from a traditional hardware distribution model and transform itself into an AI solutions enterprise with a recurring revenue base.

On May 18, Focus AI announced that it had replaced its main C-level executives, including CEO Koo Hyungmo, Chief Strategy Officer (CSO), Chief Technology Officer (CTO), and Chief Financial Officer (CFO), during its annual general meeting of shareholders held on March 31.

The new management plans to move beyond the previous hardware distribution-focused business model centered on CCTV, NVR, and DVR, and instead strengthen growth drivers by focusing on customer-tailored software development and AI solution platforms.

The company identified the following core strategies: expanding its SI business model, diversifying its sales channels, and increasing the supply of industrial safety solutions. In particular, Focus AI explained that, since the enforcement of the Serious Accidents Punishment Act, demand for safety management at industrial sites has increased, and the company has secured references with major Korean conglomerates by supplying forklift AI safety solutions.

Sales in the public sector have also been increasing. The company stated that public sector sales grew from around 2 billion to 3 billion won in 2023 to 7 billion won last year, and that its goal for this year is to reach 10 billion won.

Focus AI is advancing its business model by providing not only simple hardware supply but also integrated SI services covering design, construction, operation, and maintenance. The company noted that, with the SI model, recurring revenue from operation and maintenance continues even after system installation, allowing for a stable foundation of recurring sales.

In addition, Focus AI is expanding discussions on collaboration in the CCTV business and joint software development with a variety of domestic and international partners in an effort to improve its revenue structure, which has previously been reliant on a limited number of customers.

CEO Koo Hyungmo stated, "We recognize the limitations of a hardware-centric business model and reliance on specific sales channels. This year, our main objectives are to transition to a recurring revenue structure based on SI, strengthen internal controls, and diversify our sales channels. We aim to prove our credibility in the market with tangible results and numbers."

He continued, "Alongside improving our core business, we are also prioritizing enhancements in internal accounting management and governance structure. We are establishing partnerships with major accounting and law firms to comprehensively reinforce our external audit capabilities and organizational management systems."

With the expansion of its AI industrial safety solutions and SI business, Focus AI is accelerating the establishment of a recurring revenue model and diversifying its revenue streams.

This content was produced with the assistance of AI translation services.