Netwatch Horizon Spring 2024

SPRING 2024

Horizon

BE FEARLESS

TABLE OF CONTENTS

THE FUTURE IS PROACTIVE Innovations designed for change.

6

AN INDUSTRY IN TRANSITION The retail market is at a crossroad.

16

ENERGIZING THE WORLD How BELD protects its substations.

18

A PARTNERSHIP IN MOTION An interview with Pavion.

20

INDUSTRY DIVERSITY Empowering women in security.

32

PIONEERING A MORE SECURE TOMORROW Netwatch is at the forefront of fostering a safer world by leveraging advanced technology, including AI and video monitoring, to empower organizations in their quest for security. Our mission is about being a proactive force. By integrating cutting-edge surveillance technologies, we enable businesses and communities to stay one step ahead of potential threats, ensuring they can operate with peace of mind. Our commitment goes beyond the present day — we're dedicated to being a part of the positive change that will echo into the lives of future generations, envisioning a brighter, more secure future for years to come.

WELCOME Welcome to Horizon, your source for insights and analysis on the evolving landscape of the security market. In an era where change is the only constant, understanding the forces shaping our industry is essential. At Netwatch, we dedicate ourselves to illuminating the trends, technologies, and tactics that are redefining security as we know it and we share them here on these pages.

Our mission is twofold: to educate and to inform. Through in-depth articles, expert commentary, and forward-looking analysis, we aim to keep you at the forefront of the industry's shift towards more proactive solutions. We explore the integration of artificial intelligence, the expanding role of cloud computing, and other emerging technologies that are setting new standards for efficiency, effectiveness, and strategic insight in security practices.

Horizon is a platform for learning, discussion, and discovery. Whether you're a seasoned professional seeking to stay ahead of the curve or new to the field and eager to understand the foundational shifts underway, our goal is to provide you with the knowledge and perspectives necessary to navigate the future of security.

Join us as we embark on this journey together, exploring new horizons in security technology and strategy. Welcome to Horizon — where the future of security is right ahead of us.

Kurt Takahashi CEO, NETWATCH

5

THE EMERGENCE OF PROACTIVE SECURITY

By Kurt Takahashi, CEO, Netwatch 05

BY KURT TAKAHASHI

PROACTIVE SECURITY

Video surveillance systems have long served as pivotal cogs in the process of security. It provides a layer of protection that's fundamental to maintaining a secure and safe environment.

But like all facets of our modern, technologically driven society, these systems too must evolve. As we journey further into an era marked by innovation, traditional reactive surveillance systems are becoming archaic, struggling to meet the comprehensive security demands of modern organizations.

Historically, traditional video monitoring services were revered as the standard for after-hours security, adding an additional set of “eyes” over various facilities and campuses. The

primary role of video systems was to record and report incidents, allowing security personnel to react to events after they occurred. This reactive approach, however, now presents numerous challenges in a world where real-time responses are not just desired but required. These limitations become obvious as we contrast these systems with the capabilities of emerging proactive security technologies.

An example of this evolution is Proactive Video Monitoring, a technology that's setting new standards in the security landscape. Traditional security measures, including video surveillance, security guards, and fences, undoubtedly still hold

value. However, their key limitation is the inability to prevent crime. This is where PVM revolutionizes the game.

The process is three-fold: monitor, intervene, and report. At the center of the monitoring phase is intelligent software. This software identifies potential threats by detecting unauthorized activities. Once an activity is recognized, the system immediately sends an alert to an operator stationed at the monitoring center.

During the intervention stage, the operator directly interacts with the intruder via a live audio voice-down system. Guided by a set of pre-determined protocols, the operator implements an appropriate response. This could range from alerting law enforcement to informing keyholders, or taking other decisive actions, depending on the severity of the situation.

Finally, the incident reports are generated within 24 hours of the event. These reports are made accessible through mobile and web apps, providing users with immediate information about security incidents.

Of course, PVM wouldn’t be possible without intelligence. One of its key applications is in object and activity recognition, where AI scrutinizes video feeds in real-time to detect specific objects or behaviors, flagging anything unusual or suspicious.

This ability to distinguish normal from abnormal activity is facilitated by AI's robust anomaly detection capability. By learning typical activity patterns in the monitored environment, it can effectively spot deviations, treating such instances as potential threats and triggering alerts.

PVM is a versatile technology that can be effectively employed in a wide variety of environments such as: Commercial Businesses and Office Spaces: PVM can safeguard businesses and offices from theft, vandalism, and unauthorized entry. It can also help enforce security protocols during off-hours or when the premises are unoccupied.

Industrial and Manufacturing Sites: These sites often house expensive machinery and materials which can be attractive targets for thieves. PVM can monitor these valuable assets continuously, detect threats in real time, and help prevent crimes from occurring.

Construction Sites: These sites are often targeted due to the expensive equipment and materials left on site after working hours. PVM can provide round-the-clock surveillance, making it much harder for unauthorized individuals to access the area without detection.

Parking Lots and Garages: These areas can be hotspots for various forms of crime due to the presence of unattended vehicles and lack of constant human activity. PVM can monitor these spaces continuously and intervene.

In a world increasingly leaning towards digital transformation, and as technology continues to evolve at a blistering pace, the importance of cutting-edge security measures has never been more apparent. As our world continues to embrace the digital transformation and technology is rapidly advancing, security has never been more important. And solutions like PVM present the ability to help prevent crimes from ever taking place, giving organizations' peace of mind like never before.

With its proactive approach, PVM transforms the existing security paradigm and enables organizations to significantly improve their overall security stance. By identifying and addressing threats before they culminate into crimes, PVM not only contributes to enhancing security but also paves the way for a safer future, providing peace of mind for organizations.

The advent of PVM highlights the importance of staying at the forefront of technological advancement, shedding light on the reality that outdated security solutions may no longer be sufficient. In the face of evolving threats, a proactive approach to security is no longer a luxury but a necessity.

STAY INFORMED VISIT NETWATCHUSA.COM/HORIZON TO VIEW UPDATED EDITIONS.

A PERFECT PAIRING

BY ROBERT BRENT SENIOR DIRECTOR OF CUSTOMER SUCCESS NETWATCH

The security market has undergone a transformation, largely driven by new technologies. AI and the IoT have changed the landscape by enhancing capabilities, expanding coverage, and improving responses. When integrated into video systems, AI enables real-time threat detection and instant alerting, improving the effectiveness of security measures. At the same time, the IoT allows greater interconnectivity between devices. These technological advancements vastly improve outcomes.

One of the solutions to emerge from this revolution is proactive video monitoring, which represents a seismic shift from the traditional reactive security model. Traditionally, a security guard's effectiveness is tied to their immediate field of view and their ability to physically monitor their environment, both of which have natural limitations. With the help of video monitoring, they can now oversee multiple locations simultaneously. This improves their understanding of the landscape, allowing them to anticipate potential threats and respond more effectively and efficiently.

But why is augmenting guards essential?

Regardless of their skills and training, human security guards can only be in one place at a time and can only monitor a limited area effectively. Factors such as fatigue, distraction, or human error can also impact their performance.

Technology, particularly solutions like proactive video monitoring, helps to overcome these limitations by providing wider coverage, constant vigilance, and instant alerts for potential threats. This not only enhances security but also allows guards to focus their attention where it is most needed, thus optimizing their efficiency and effectiveness.

The primary benefit of proactive video monitoring lies in its ability to significantly enhance security measures. The incorporation of AI enables these systems to recognize and respond to suspicious activities promptly, reducing the likelihood of security breaches. This enables security personnel to act preemptively, drastically reducing response times and, in many instances, preventing incidents.

The idea of human augmentation is not new. One of the most classic studies on it is the article written by Douglas Engelbart, published by the Stanford Research Institute in 1962. The paper lays the foundations for the concept of the augmentation of human intellect.

Of course, the theory and idea of human augmentation has evolved over time. Each one of us is experiencing an increase in our natural abilities each day thanks to devices such as smartwatches and smartphones. This leads to our ability to communicate in ways we never thought possible.

So, what does this term mean in modern times? According to Garner, human augmentation (sometimes referred to as “Human 2.0”) focuses on creating cognitive and physical improvements as an integral part of the human body. An example is using active control systems to create limb prosthetics with characteristics that can exceed the highest natural human performance or using AI-driven technology to help identify risks more rapidly.

Technology obviously plays a crucial role in augmenting human capabilities across a broad spectrum of activities.

One area is the enhancement of efficiency and accuracy. By automating routine tasks, technology frees up humans to focus their attention and efforts on more complex, high-value activities that require critical thinking, creativity, and strategic decision-making. Additionally, automation reduces the risk of errors with manual work, leading to improved accuracy and consistency in outcomes.

Technology can also expand human capabilities, enabling us to perform tasks or make analyses that would be impossible otherwise.

For example, data analytics allows us to process and analyze vast amounts of data quickly, leading to insights and decisions that would be impossible with manual analysis.

Digital collaboration platforms enable faster communication, within teams and external stakeholders. This fosters collaboration, accelerates decision-making, and improves the responsiveness of teams.

Security technology plays an instrumental role in augmenting human capabilities to enhance safety. It broadens the scope of surveillance and threat detection far beyond human limitations. By using tools like proactive video monitoring, for example, personnel can monitor large areas in real-time, enabling them to identify and respond to threats more quickly and effectively.

Additionally, advanced features, such as AI-powered analytics, can detect anomalies and patterns that may escape human notice, further improving threat detection.

They can even anticipate potential security risks, shifting the security approach from reactive to proactive. Modern systems can provide invaluable data and insights to inform

11

decision-making, enhancing the response to security incidents. By providing accurate, real-time information, security personnel can make informed decisions swiftly, a crucial factor in mitigating risks and preventing security breaches. In emergency situations, security technology can help ensure a rapid response, initiating alerts or automated processes to ensure immediate action even before human intervention is possible.

potentially dangerous areas is necessary.

Proactive video monitoring is an advanced tool that significantly augments human capabilities in the realm of security. It expands coverage beyond the traditional constraints of a guard's physical location and field of vision.

This technology empowers more eyes on security policies, enabling security personnel to monitor multiple locations simultaneously and providing visibility into hard-to-reach areas, resulting in a more comprehensive surveillance system.

Such systems also contribute to personnel empowerment by providing a learning platform for guards. The insights derived from the data can help in training and upskilling guards, promoting a more knowledgeable, tech-savvy security workforce.

Video monitoring systems have the potential to revolutionize the role of security guards, shifting their duties from merely being reactive to a more strategic, proactive role.

Empowered with real-time data and alerts, security personnel can make informed decisions swiftly, contributing to the effectiveness and efficiency of security operations.

Additionally, proactive video monitoring leverages advanced algorithms to detect unusual activities or anomalies in realtime, extending human analytical capabilities. These systems can identify potential threats that might be overlooked by human eyes and alert security personnel instantly, allowing for quicker, more effective responses.

Another significant value is its ability to monitor situations without fatigue or lapses in attention, addressing one of the critical limitations of traditional security guards. This continuous monitoring ensures that no incident goes unnoticed, regardless of the time or conditions.

Proactive video monitoring also generates valuable data that can be used for insights and decision-making, effectively transforming the traditionally reactive nature of security work into a more strategic, data-informed role. By offering realtime data and analysis, these tools provide security personnel with crucial information, enabling them to make informed decisions and anticipate security risks.

Intelligent video monitoring enhances human capabilities by expanding coverage, improving detection and response times, and supporting data-driven decision-making, all of which contribute to a more robust and efficient security operation. By continuously analyzing the environment, systems can identify safety hazards and alert security personnel or management, facilitating early intervention.

With proactive video monitoring as an integral part of the security toolkit, the future of guarding appears to be significantly more efficient, strategic, and data-driven.

Security personnel will be able to oversee extensive areas in real time, responding swiftly to alerts. This heightened situational awareness and rapid response capability will transform the security landscape, reducing the incidence and impact of security breaches. With routine surveillance tasks handled by the system, security personnel can focus on areas that require human intervention and strategic decision-making.

With advanced technology, the role of security guards will shift from being largely reactive to strategically proactive.

Equipped with real-time data and insights from tools like PVM, they will be empowered to make informed decisions and anticipate potential security risks, effectively preventing incidents before they occur.

Call it the security guard of the future.

With the capability to monitor different environmental conditions, proactive video monitoring is highly valuable in enhancing the safety of security personnel who otherwise might be exposed to hazardous situations. This is particularly relevant in industrial settings where the surveillance of

For more information on how you can use technology, like intelligent video monitoring, to augment your guard services program, contact our team at netwatchusa.com.

DRIVING THE AI REVOLUTION AS AI ADVANCES, THE POTENTIAL FOR SECURITY AND SAFETY IS LIMITLESS. IN THIS ARTICLE, ACTUATE CEO SONNY TAI EXPLORES THE CURRENT AND FUTURE INNOVATIONS.

BY SONNY TAI, CO-FOUNDER AND CEO, ACTUTATE 13

Let’s face it: The security industry is undergoing a significant transformation, driven by advancements in cloud computing and AI technology. These changes — driven primarily by the growing acceptance of AI and the cloud — are making video surveillance more effective and automated than previously attainable.

Last year marked a turning point for the security industry, particularly with the growing acceptance of AI. AI is a game changer in video surveillance, significantly reducing false positives and detecting unauthorized individuals without the privacy concerns associated with facial recognition. Advanced analytics can analyze video frames for potential weapon threats and intruders to identify firearms. When the software detects a visible weapon or intruder, it sends an immediate alert to designated staff members, providing the exact location, type of firearm, and detailed information about the intruder.

The potential for AI in video surveillance is immense. With an stimated 100 billion video surveillance cameras installed across the United States, a vast 14

amount of unstructured data is generated daily.

The future of security hinges on the power of AI and intelligence to manage and analyze this data. Data derived from video can help security personnel quickly identify the most critical information for their business. And this is just the beginning of what AI can achieve.

One key benefit of RVM is its ability to reduce the burden on human security personnel. By handling routine tasks, video intelligence allows on-site personnel to focus on more critical aspects of security management. This improves the overall effectiveness of security operations and reduces burnout among staff.

Businesses increasingly seek to deploy technologies that can help mitigate crime, violence, and other emerging threats, and they are now looking to deploy them in a more proactive than reactive manner. This evolution in the approach to security is driven by the need to better respond to risks before they can cause damage or loss and ensure more comprehensive protection.

RVM also provides a scalable solution for businesses of all sizes.

Whether managing a small retail store or a large utility, AI-enabled systems can be tailored to meet specific security needs. This ensures businesses can invest in technology that grows with them, providing long-term value.

Remote video monitoring solutions significantly enhance security by alerting personnel to real threats in real-time rather than responding after the fact. They reduce false positives and accurately identify situations that aren’t true risks, lowering security costs. It also transforms passive security cameras into active, intelligent devices, delivering realtime alerts that enable quicker responses to prevent theft or harm.

Advanced features such as slip-and-fall detection and occupancy management further enhance the value of intelligent video. Slipand-fall detection catches and flags potential accidents, tagging the video for review, which helps reduce workplace injuries. Occupancy management minimizes loitering and improves traffic flow within buildings without collecting personally identifiable information, ensuring privacy and compliance.

Another critical feature is gun detection, which

can identify a gun with 99% accuracy and alert security staff of the shooter’s identity and location. This capability is crucial in preventing potential tragedies.

It’s important to note that businesses can maintain existing investments to leverage the power of AI. Most software is compatible with various cameras and security platforms, which allows easy upgrades without costly hardware replacements.

This ensures a smooth transition to more advanced solutions.

There’s no doubt that the rise of AI is transforming the industry and AI's current capabilities are invaluable. By focusing on its strengths and leveraging its current capabilities, the industry can continue to advance, offering better solutions for the future.

We are taking a significant step forward in security. By combining the power of intelligence with advanced monitoring capabilities, organizations can achieve a higher level of protection for their assets, staff, and facilities. As the technology continues to evolve, the potential for further improvements in security operations is vast and promises a safer future for all.

MARKET IMPACTS

1

The Security of AI According to the Security Industry Association's 2024 Security Megatrends report, AI is the overarching megatrend, claiming the top four trend spots. But the specific megatrend that must be focused on is the security of AI.

2 3

1

The camera has become the ultimate sensor, the report said. AI is permanently transforming the value proposition of video surveillance. It is now referred to as "visual intelligence" rather than just video surveillance.

Generative AI As these technologies advance, the security industry is expected to evolve in three main areas. First, large language models will be integrated into security systems. Second, generative AI will be used for content creation. Third, generative AI will be employed to Add a short teaser operational paragraph here address business challenges.

4 5

Visual Intelligence

The Regulation of AI AI will transform the security industry, with forthcoming regulations ensuring trust, transparency, and data privacy. These regulations are expected to accelerate AI technology development, requiring greater compliance and openness about algorithms.

Here's another teaser paragraph that varies in length

Making Colors Work for You

Expansion and Evolution of ROI Today, this trend encompasses all the former megatrend elements and highlights how security solutions are providing business value beyond core security needs. Essentially, it is the Add a short teaser paragraph here parent trend driving AI's transformation of video surveillance into visual intelligence.

Our Best Fashion Finds

6

SaaS Business Model With the market shifting towards security-as-a-service Arwyn and managedCosmetics: services models, changes are on the horizon. The traditional model of building out hardware, Beauty for Allsolutions will give way to a wiring, and on-premises Here's another teaser paragraph varies in length model where solutions are sold that as subscriptions tied to business outcomes.

Information courtesy of SIA’s 2024 Security Megatrends Report

RETAIL

A SAFE PLACE TO CALL HOME

BY NEAL VANSKIVER, EXECUTIVE VICE PRESIDENT OF SALES, NETWATCH When addressing concerns relating to homelessness, it's generally considered critical that those engaging in these discussions take an approach rooted in empathy and understanding. After all, most of these individuals are regular citizens who have fallen on hard times - and with inflation recently reaching a historic 9.1%, it is not difficult to imagine why homelessness is becoming an epidemic that affects virtually every region in the United States.

Areas with a high population density, often large cities such as Los Angeles, San Francisco, or New York City, have recently experienced an increase in homeless populations. These people in need are seeking shelter from the elements during the harsh seasons. More often than not, these individuals find refuge outside of retail stores and their surrounding areas.

While their desire to stay in these areas is understandable, it is not a viable long-term solution for anyone involved. In various industries, retailers have gotten used to their traditional ways

16

of encouraging unhoused individuals to seek shelter in a more appropriate area that does not interfere with day-to-day operations. Still, these methods have more than their fair share of drawbacks. For instance, they can be overwhelmingly dehumanizing toward homeless individuals, and in some cases, dangerous.

Like any form of loitering, the prospect of homeless camps and unhoused individuals making themselves at home on the doorstep of retail stores comes with its fair share of risks. For example, when people are seen loitering on business property, homeless or otherwise, it tends to drive prospective customers away from the area to do their shopping elsewhere. In addition, when groups of unhoused people form a camp outside of a business in tents or other improvised shelters, it can create a barrier between prospective customers and the entrance of the retail shop. This can eliminate a customer's motivation to enter the store, as navigating their way through

or around these camps puts both parties in an uncomfortable situation. Needless to say, when left unchecked for extended periods, this can cause severe damage to businesses in any industry.

Another way that extended periods of loitering can hurt businesses is through less-than-friendly interactions between those camping outside and customers or staff. In some cases, these individuals may solicit others for donations through aggressive panhandling tactics, which can escalate into an unpleasant confrontation between both parties involved.

When this occurs, the possibility of danger for either party involved rises, which reflects poorly on the business in question and puts them at risk of liability for any ensuing damages in such confrontations. Hence, it’s best to avoid these situations altogether. In addition to this, another way that businesses can be found liable for damages to local homeless populations is by leaving potentially dangerous items unsecured. This can include ladders, dumpsters, and any other item that can lead to bodily harm for others when left unmonitored. Additionally, when loiterers can gain access to the inside of a dumpster or climb on top of the building, businesses can be at risk of liability charges when things go wrong.

Lastly, another way businesses can suffer from extended loitering is through disrespect to the building itself through unsanitary and indecent means. When loiterers in the area treat the building as their bathroom, the sight and smell of the aftermath can be enough to drive customers away from the site, and staff members are left cleaning up after the perpetrators.

One thing remains clear: for any of these concerns to become a thing of the past, retailers' methods to relocate unhoused loiterers need to change. Over the years, it’s become apparent that when staff members try to take matters into their own hands or when authorities are brought into the picture, it becomes a no-win scenario for anyone when people in need are met with harsh words and, in extreme cases, violence.

While traditional passive methods of addressing these concerns can be easy to fall back on, a proactive approach is necessary to prevent a recurring issue from manifesting entirely. If retailers, security service providers, or anyone else seeking a solution relating to loitering on business properties are to move forward, a 24/7 solution capable of directly addressing policy violators is the best way to prevent the incidents that occur on a near day-to-day basis.

The other challenge with traditional methods is that ownership of the solution tends to fall back on employees, putting them at risk and potentially making them feel unsafe at work. Using a proactive strategy can enhance workplace safety, build employee confidence, and enhance company culture — all of which drive better customer and employee experience.

In a situation where loitering is becoming a problem for a business, a proactive video monitoring solution is a beneficial option to consider, as it removes the factors that put people at risk of confrontation. When loitering is detected, they can be firm yet politely directed to find somewhere else to take shelter without unnecessary hands-on intervention from a police officer or security guard that may put them in danger.

All interventions that take place through a PVM system are conducted remotely through a live audio warning. This is a key difference from standard remote video monitoring systems that send recorded, non-personalized messages.

While passive methods of addressing these concerns can be easy to fall back on, a proactive approach is necessary to prevent a recurring issue from manifesting entirely.

When it comes to finding a solution to incidents involving homelessness, it’s imperative that retailers invest in a solution that isn’t reactive but proactive. This is due to the fact that most reactive solutions are outdated and don’t do anything to keep any parties involved out of harm's way, which only a round-the-clock solution that relies on live interventions can do consistently.

While traditional passive methods of addressing these concerns can be easy to fall back on, a proactive approach is necessary to prevent a recurring issue from manifesting entirely. If retailers, security service providers, or anyone else seeking a solution relating to homeless loitering on business properties are to move forward, a 24/7 solution capable of directly addressing policy violators is the best way to prevent the heartbreaking incidents that occur on a near day-to-day basis.

This article originally appeared in the December 2023 edition of Retail Touchpoints. For more information on how your retail organization can leverage intelligent video monitoring, contact us at netwatchusa.com.

17

13

UTILITIES

ENERGIZING MONITORING FOR OPERATIONAL EFFICIENCY Braintree Electric Light Department is one of 41 municipal light departments organized under Massachusetts General Laws, chapter 164, and one of more than 2,200 municipally owned light departments in the country. BELD is recognized locally and nationally as an innovator in technology and new services.

It has been a stalwart of the energy sector since its inception in 1892. Headquartered in Braintree, the company serves around 16,500 customers through its five substations and employs 78 personnel. Apart from power distribution, Braintree Electric ventured into the telecommunications sector in the late 1990s, offering services such as high-speed Internet, cable TV, and telephone services. But after 20 years as a local ISP provider, BELD sold its ISP business to Comcast to support the evolving needs of the local community.

With increasing incidents of trespassing, break-ins and copper

18

thefts at substations across the country, Braintree Electric was keen on taking proactive measures to secure its facilities and ensure the safety of its communities While there were video surveillance cameras installed at its main campus, the company identified a need for a more effective security system at its substations, particularly those that were not staffed.

In an era of escalating security concerns, one of the most promising advancements that stands out is a specialized form of video monitoring tailored to intercept potential threats, deter unauthorized entrants, and eliminate criminal intent even before they can pose a significant risk to substations. Termed 'Proactive Video Monitoring' (PVM), this service is delivered through a Software-as-a-Service (SaaS) model. This approach encompasses round-the-clock video surveillance paired with instantaneous interventions by skilled operators, aiming not just to identify but also to respond to potential security breaches via live, tailored voice messages.

THE IMPLEMENTATION OF NETWATCH HAS BEEN SUCCESSFUL IN DETERRING UNAUTHORIZED ACCESS TO BELD’S SUBSTATIONS AND MITIGATING POTENTIAL RISKS ASSOCIATED WITH COPPER THEFT. In 2018, Braintree Electric partnered with Netwatch, a PVM services provider, to deliver enhanced security and video surveillance monitoring of its substations. This proactive step ensured 24/7 security, providing a heightened sense of comfort to BELD management. Netwatch's services extended to one substation near a high foot-traffic area, where incidents of individuals wandering too close to the property were quite common. The Netwatch service was also deployed to proactively monitor access to the substations by Braintree Electric personnel, verifying their identity through a keypad access code.

One of the standout features of PVM is its foundational principle: to act as a deterrent and preemptively prevent physical threats to substations. This is achieved using advanced camera technologies bolstered by sophisticated analytics. These systems are calibrated to pick up on and alert security personnel to suspicious activities in real time.

Security can oversee substations from afar, granting them the power to step in immediately upon spotting anything amiss. This not only forestalls potential crimes but also ensures that the substation's operations remain operational.

The operators who support PVM are not standard operators; they are specialists trained to monitor multiple areas simultaneously for signs of suspicious activities or impending threats. With a suite of tools at their disposal, they can deliver swift and personalized audio warnings to deter trespassers.

This system especially shines when considering the constraints of stationing security personnel at remote substations; PVM allows for broader coverage, continual oversight, and efficiency that traditional security methods struggle to match.

Central to its operation is the use of embedded artificial intelligence that has been optimized to automatically spot irregularities. Upon detecting unauthorized movements or actions, a PVM specialist intervenes. They utilize a real-time voice-down system to alert intruders of their detection and ongoing recording. This method has proven incredibly effective; a staggering 98% of would-be trespassers vacate the premises upon hearing the voice warning, effectively deescalating potential confrontations. If, however, they remain undeterred, the operator doesn't hesitate to alert law enforcement and relevant contacts, ensuring

swift and decisive action.

Once an incident is resolved and the threat or individual has left the proximity, the Netwatch PVM service delivers comprehensive reporting options. A complete incident report is automatically issued to provide a detailed account of the events with timestamps and the actions taken by the off-site monitoring teams.

The implementation of Netwatch’s video monitoring service has been successful in deterring unauthorized access to BELD’s substations and mitigating potential risks associated with copper theft. This partnership between Netwatch and BELD has also helped prevent possible damages to the organization’s infrastructure and saved the company from significant potential losses. It has also helped build consumer trust as the community is aware of BELD’s commitment to security and safety.

BELD has an eye on innovation as it looks to enhance its security further. In addition to the security enhancements provided by Netwatch, the organization is also looking to implement gunfire detection systems to reduce active shooter incidents. Overall, these initiatives are a testament to the company's commitment to ensuring the high reliability and reasonable cost of electricity to its customers in the safest, most secure manner possible.

Braintree Electric continues to closely monitor trends and threats to utilities across the country. Its leadership is actively involved with joint industry action agencies to enhance their security measures, share best practices, and safeguard their infrastructure. The company is also exploring partnerships with local associations to increase awareness about its proactive security measures and extend its implementation to other utilities.

The deployment of Netwatch at Braintree Electric exemplifies how a company can strategically invest in advanced security measures to protect its infrastructure, ensure the safety of its personnel, and maintain its commitment to service excellence.

The partnership with Netwatch has significantly contributed to Braintree Electric's ability to provide reliable and cost-effective power to its customers, reinforcing its position as a trusted provider in the energy sector.

19

A PARTNERSHIP IN MOTION

AN INTERVIEW WITH JOE OLIVERI, PRESIDENT AND CEO, PAVION 20

In today's ever-evolving security industry, forming partnerships that drive technology forward while maintaining exceptional customer service is essential.

Pavion, a leader in security, life safety, and critical communications solutions, and Netwatch, the leading provider of proactive video monitoring, represent an ideal example of a standout collaboration.

Collaboration for Security Pavion is a pioneer in leveraging technology to enhance operational efficiency and ensure positive security outcomes. The company's mission is to bring clarity and transformation to safety, security, and communication. With a focus on progressive partnerships, agile leadership, and accelerated clarity, Pavion strives to deliver solutions that protect lives and optimize operations. Their decision to align their business with Netwatch demonstrates their commitment to excellence and has been instrumental in elevating their offerings and paving the way for sustained success.

"Netwatch excels due to their exceptional customer service, cost-effectiveness, and highquality products," says Joe Oliveri, President and CEO, Pavion. "Their team consistently goes above and beyond to ensure we get the most out of our partnership while providing solutions that meet the specific needs of our client base.

This commitment aligns perfectly with our own business and service goals. Together, our dedication to innovation and excellence has enabled us to build a loyal customer base and set a high standard of technology and service delivery for the entire market."

Pavion Video Monitoring powered by Netwatch delivers intelligent video monitoring services, including 24/7 proactive monitoring, real-time intervention by highly-trained specialists, false alarm reduction, and intelligent video analytics for intrusion and anti-loitering events. It provides detailed incident reporting within 24 hours to help businesses, like technology and critical infrastructure companies, retailers, and quick-service restaurants, identify trends or emerging risks.

Proactive Video Monitoring, pioneered by Netwatch, is globally acclaimed for its ability to prevent crime before any loss occurs. By leveraging AI, the service swiftly identifies unusual activities and sends instant alerts to trained operators. These operators then deliver immediate, real-time audio interventions tailored to the specific situation, adapting as needed to effectively deter intruders. This personalized approach significantly enhances the effectiveness of the warnings, resulting in a 98% success rate in deterring perpetrators.

By delivering Pavion Video Monitoring powered by Netwatch, Pavion helps its customers in these markets reduce the likelihood of loss and theft. This proactive approach exemplifies how combining the strengths of these two companies enhances security and operational efficiency, driving innovation forward.

Growth Through Advanced Technology Over the past three years, Pavion has seen significant growth, both organically and through strategic acquisitions. The company was honored as SDM Magazine's Systems Integrator of the Year in 2022 and has continued to expand its capabilities and improve services since then, ensuring Pavion remains at the forefront of the industry.

"Our charter mandates a 10-percent growth annually, and we've achieved this by harnessing AI and data to make informed business decisions," said Oliveri. "By adding evolving technologies like Netwatch to our portfolio, we've been able to streamline our operations, optimize our strategies, and stay ahead of market trends. This data-driven approach has been instrumental in meeting our growth targets and delivering exceptional value to our clients."

Unlock the Future with AI The industry as a whole has experienced a growing interest in emerging technologies, particularly software-as-a-service and intelligent video solutions. AI and the cloud have driven this growth, Oliveri noted, because these solutions empower businesses to make accurate decisions based on insights from video footage and reduce expenses by moving system management to a cloud provider. These trends support shifting from reactive to proactive strategies, enhancing revenue, reducing costs, and improving customer experiences.

Oliveri said AI is still in its early stages but is already transforming the landscape. It can drive substantial growth by enabling more sophisticated, proactive security solutions. The future of the security industry will undoubtedly be heavily influenced by AI, and as it evolves, Pavion is ideally positioned to lead this industry transformation.

08 21

Using AI, we aim to protect our customers' businesses while optimizing their operations," said Oliveri. "AI enhances operational efficiency and helps identify new strategies to drive growth. Incorporating intelligent solutions into our business mirrors our desire to maximize efficiency and make informed decisions based on the capabilities of these advanced technologies."

The Rising Trend of Intelligent Video Monitoring The demand for proactive and remote video monitoring is increasing rapidly, driven by its costeffectiveness and efficiency compared to traditional security methods such as on-site guards. It’s also of interest due to its ability to augment human operators, who can be more efficient backed by the power of AI. "Once we demonstrate the power of remote and proactive video monitoring, clients immediately recognize the substantial cost savings and enhanced security it offers,” Oliveri said. "This technology reduces the need for on-site security personnel and provides real-time surveillance, which is far more efficient and reliable in mitigating any risks.”

Pavion has found significant success in deploying proactive video monitoring in the retail and quickservice restaurants markets. These markets have been facing evolving challenges related to vandalism, loitering, and employee and customer safety. Intelligent video monitoring has proven to provide an immediate and substantial impact. Stores equipped with these services experience a marked decrease in security incidents, and employees and customers alike feel more safe.

Another notable area of growth Pavion has experienced is within the auto industry, particularly in addressing the issue of catalytic converter thefts.

Auto dealers face significant challenges with these events, which can be highly disruptive and costly. The impact of catalytic converter theft extends beyond the replacement cost, encompassing vehicle downtime and business disruptions.

“We provide a rapid ROI for our customers,” he said.

“Pavion Video Monitoring powered by Netwatch can 22

achieve up to 75 percent cost savings compared to physical security guards, making it a superior and efficient alternative.”

The partnership between Pavion and Netwatch stands as a model of innovation, collaboration, and customer success by merging Pavion's strategic growth initiatives and operational excellence with Netwatch's advanced video monitoring solutions, this alliance promises enhanced security and operational efficiency for businesses. It also sets the stage for the industry's future, where technology and proactive strategies become increasingly central. As these technologies evolve, such partnerships will undoubtedly become crucial in shaping a secure, efficient, and technologically adept future.

06

WE BRING PEOPLE, TECHNOLOGY, AND INTELLIGENCE ...

TOGETHER

20

A BIRD’S EYE VIEW HOW CLOUD AND AI ARE RESHAPING SURVEILLANCE AN INTERVIEW WITH KEN FRANCIS, PRESIDENT, EAGLE EYE NETWORKS 24

The video security industry is undergoing a significant transformation as cloud-based solutions and artificial intelligence become integral to its future. These advanced technologies are reshaping video surveillance and monitoring, with the latest industry analysis predicting remarkable growth.

The numbers speak for themselves. According to Research and Markets, the use of AI in video surveillance is expected to achieve a compound annual growth rate of 23.80%, with a market valuation reaching $15.99 billion by 2028. Grand View Research reports that the cloud video market is expanding, with the global cloud video surveillance market projected to reach $83.3 billion by 2028.

Similarly, Novaira Insights projects that the number of cloud-connected cameras will increase at an 80% CAGR in North America through 2026. This rising demand highlights the need for data to help businesses mitigate risks and the increasing desire to leverage video data for new use cases.

Both categories are revolutionizing the industry. The shift to cloud technology in video surveillance signifies a significant move away from traditional reliance on localized servers and infrastructure. While the industry was initially hesitant to adopt cloud solutions due to bandwidth and data security concerns, substantial progress has been made over the past three years. According to Eagle Eye Networks President Ken Francis, the demand for cloud services is rising because these services offer scalable and flexible options that enable organizations to adapt to changing business and security needs. They are also now proven use cases demonstrating effectiveness.

"Today's customers are increasingly opting for cloud solutions for various reasons,” Francis said. “Some are motivated by regulatory requirements in industries like cannabis and utilities, while others aim to reduce onsite hardware costs and shift to an operational expense model. This CapEx vs. OpEx dynamic is driving the trend toward cloud.”

Much of the industry's recent growth can be attributed to these emerging technologies enhancing security capabilities. While cloud video services have defined the surveillance market in recent years, advancements in AI-enabled offerings have significantly contributed to continued momentum.

"AI, intelligent search, and false positive alarm reduction are foundational pillars for the future of video in the physical security industry," said Francis.

"Undoubtedly, AI and video surveillance will be inseparable over the next decade."

It's not just technology providers who hold this view.

While market numbers indicate significant growth, the future of AI in the security industry also heralds

an era of evolution for cloud video and remote monitoring. AI and cloud are becoming increasingly intertwined — driving advancements together.

"The increased performance that AI has enabled will be huge in automating alarm verification in remote video monitoring," said Josh Woodhouse, Lead Analyst and Founder, Novaira Insights. “Not only have we seen significant upgrades in analytics capabilities, but the cost to deploy via edge, cloud, or hybrid architecture has also significantly reduced. This will enable remote video monitoring providers to offer more streamlined, efficient services to their customers and improve the performance of their operators with pre-qualified video for review and fewer false alarms."

Francis added that advancements in AI-powered remote video monitoring solutions have given the monitoring sector the boost it needs to remain at the forefront of the market. This fact is one of the reasons Eagle Eye joined forces with Netwatch to integrate Netwatch's Proactive Video Monitoring solution with the Eagle Eye Cloud VMS. Since launching this partnership, the organizations have focused on leveraging AI and the cloud's capabilities to optimize operations and enhance safety for end customers.

"Remote video monitoring will remain the fastestgrowing segment of our industry for the foreseeable future," Francis said. "By partnering with Netwatch, we are gaining an edge. We both see the value of proactive security, and our collaboration on video monitoring projects helps propel the market forward."

It’s no surprise that advanced analytics are increasingly in demand as part of cloud video platforms. Video intelligence solutions allow users to process large volumes of data more efficiently, resulting in actionable insights.

This also leads to the growing interest in proactive solutions as organizations seek to shift their security operations away from the reactive approaches of the past. The combination of cloud and AI enables more proactive operations — providing stakeholders with the necessary data to mitigate risks.

"In today's world, security needs to be more than reactive,” Francis said. “We want to help businesses unlock the power of video to transform how they approach security. It's not just about capturing footage — it's about harnessing the power of data via AI to gain real-time insights and prevent threats before they happen. That's why we're passionate about helping our customers achieve proactive security. It results in a safer, more secure future.”

AUTOMOTIVE

THE POWERFUL CAPACITY TO DRIVE PEACE OF MIND Windsor Motors are one of the largest automotive groups in Ireland and have been a customer of Netwatch for over a decade. We started providing our services to one location and now manage multiple locations across Dublin, Galway, Meath, Louth, and Wicklow. Our long-term, close relationship with Windsor Motors has allowed Netwatch to gain a greater understanding of car dealership security, and how we can provide the protection required with the help of Proactive Video Monitoring (PVM.) Over the last number of years, The Windsor Motor Group have witnessed significant growth, and with that comes the challenge of keeping multiple premises secure and a large volume of valuable stock to protect. Whilst the Windsor Motor staff focused on looking after day to day requirements of the business, Netwatch was there to look after the day to day requirements of securing their business using our PVM. The Netwatch team reviewed each site as each location differs 26

in terms of how it can be best secured. This involved conducting an extensive site survey to assess the vulnerable areas, and proposed a technology solution to meet the needs of Windsor Motor Group. In addition to constant on-site recording, the solution across all properties includes Netwatch Proactive Video Monitoring (PVM) which includes Loiter Detection, Perimeter Protection, and Incident Reporting.

Proactive Video Monitoring provides The Windsor Motor Group with a purpose-built video surveillance and response platform and a dedicated team of intervention specialists, which are equal to specially trained security operators. This combination of video surveillance technology with the human element helps The Windsor Motor Group to efficiently protect their perimeters, facilities and valuable stock. As soon as any potential problem is detected, expert intervention specialists verify the situation and issue live, personalized audio warnings.

These have demonstrated a 98% efficacy rate in deterring bad behavior and stopping crimes.

Over the last few years, The Windsor Motor Group have moved most of their sites to what is called managed service, allowing the Netwatch Proactive Video Monitoring technology, coupled with a team of qualified Intervention Specialists, to provide peace of mind that their facilities are protected at all times.

“Our feeling was with the investment we have put in our

buildings, our vehicle, we want someone who is going to be the best, that is a decision made at the time, we are eleven years on since then, and we are very happy with our selection of Netwatch,” said Ian Moran, Head of Finance, Windsor Group.

“We do have peace of mind when we turn off the lights and close the door that our investments and our premises are being protected.”

27

COMBATING RETAIL CRIME AND FRAUD WITH INTELLIGENCE

BY GRANT GRAHAM EXECUTIVE VICE PRESIDENT OF OPERATIONS, NETWATCH 28

As retailers continue to recover from the obstacles brought on by the pandemic, the landscape of retail security is shifting drastically. Retail organizations, particularly large ones in urban areas, continue to confront persistent threats from traditional theft and more complicated criminal activities such as sophisticated break-ins and vandalism. The presence of loiterers, aggressive panhandlers, and unlawful encampments near stores exacerbates the situation, requiring an innovative solution.

Retail stores previously relied heavily on passive video surveillance equipment and on-site security guards to reduce these risks. Unfortunately, traditional methods are insufficient in today's retail world. While passive surveillance systems are critical for reporting incidents, they are reactive rather than proactive, resulting in costly false alarms and unnecessary police dispatch. Meanwhile, on-site security guards, while important, may only be in one area at a time and are frequently restricted to monitoring and reporting rather than actively interfering.

The use of AI in retail security operations provides a transformative solution to these issues. AI-powered systems can analyze massive volumes of video data in real time, detecting suspicious activity and potential threats before they evolve into crimes. This proactive method enables instant response, ranging from activating alarms to relaying live audio warnings that effectively prevent criminals.

AI allows for constant monitoring of every aspect of a retail business, eliminating the limits of human guards. For instance, AI systems can detect unusual behaviors, such as someone attempting to get access to a rooftop or lingering behind a building for a longer amount of time. AI-powered security systems can also provide dynamic live voicedowns. Unlike prerecorded messages, these live interventions are tailored to the scenario at hand, making them far more successful at deterring intruders. This feature is important for preventing theft as well as reducing vandalism and unwanted entry to restricted areas.

Implementing AI can lead to significant cost savings.

Retailers can reduce operational costs while increasing security efficiency by lowering the need for physical guards and minimizing false alarms.

Additionally, AI systems generate detailed incident reports that are required for legal and insurance claims, expanding their utility beyond security.

Beyond immediate security issues, AI-driven technologies help to create a safer and more inviting workplace for customers, employees, and the community. By successfully managing security concerns, retailers may keep their perimeters clean and more secure, preventing illegal encampments and avoiding loitering and panhandling activities that may deter shoppers.

The overall approach of combining AI with the power of human operators who are trained to make immediate decisions and engage in live audio voicedowns leads to a level of intelligence that was previously unattainable. The combination of technology, people, and intelligence is paving the way to a safer world.

As retail environments evolve, so must the techniques for protecting them. AI represents a possible road forward, combining technological sophistication with operational efficiency that traditional techniques lack. For retailers striving to protect their assets, improve consumer and staff safety, and cut operating costs, AI-powered security solutions are a required progression in their security strategy. As we look ahead, incorporating AI into retail security not only aids in the fight against crime and fraud but also enhances community trust and corporate resilience.

AI IS A MAJOR GAME CHANGER THE POWER IN SECURITY. CAMECT’S CEO EXPLORES ITS BOUNDLESS OF POTENTIAL TO TRANSFORM THE INDUSTRY. INTELLIGENCE

BY ARUP MUKHERJEE, CEO, CAMECT In the ever-evolving technology landscape, the rise of artificial intelligence (AI) stands out as a revolutionary stride toward enhancing safety and efficiency. As the CEO of Camect, a leading technology provider specializing in AI-driven analytics for video surveillance applications, I've witnessed firsthand the transformative impact of AI on the industry, particularly in reducing false alarms.

ability to discern genuine threats from benign occurrences, minimizing false alarms. AI algorithms are designed to sift through vast amounts of video data, identifying only those events that warrant attention. This capability enhances security and significantly reduces the operational burden on monitoring teams, ensuring that resources are focused where they're needed most.

The value of intelligent security solutions lies in their

The demand for AI-driven security solutions is rapidly

30

increasing, as evident in most exhibitor booths during this year's ISC West. The video monitoring sector, in particular, stands on the brink of a significant transformation. The shift from traditional sensor-based systems to AI-enhanced camera technology underscores AI's transformative power in redefining security protocols.

AI's potential to transform the industry from reactive to proactive is significant. By enabling predictive analytics, AI technologies empower security practitioners to identify risks proactively. This fact alone makes proactive security a standard everyone should strive for because it offers previously unimaginable protection.

The appeal of remote video monitoring spans various markets, especially those with high-value assets such as retail, utilities, and auto dealerships. These sectors must protect their assets and often only have evidence after an incident. Remote video monitoring offers the chance to prevent crime before it happens, reducing losses and better safeguarding infrastructure and people. Additionally, it makes remote video monitoring technologies more accessible to a broader audience.

These are the reasons why Camect partnered with Netwatch. Our strategic alliance is designed to elevate video surveillance and add proactive video monitoring services to existing infrastructure without the need to rip and replace existing hardware. By working together, our systems empower agents to respond to critical alerts more efficiently and effectively, keeping costs down for end users.

The ongoing collaboration demonstrates the synergy between modern technology and comprehensive SaaS-based services. We deliver a comprehensive offering that streamlines the detection process while delivering a new era of accuracy in monitoring. The user gains the ability to seamlessly analyze video content, pinpointing activities of interest and potential risks with unparalleled accuracy.

As we continue to pioneer the integration of AI in security, the challenge remains to educate potential users about the advantages of these solutions. While adverse events often spur the adoption of these technologies, the trend is shifting towards a more preventative approach. The increasing interest from dealers and ers alike indicates that the market is ready for this evolution.

It’s quite an exciting time to be part of the security industry. Integrating AI into technologies represents a transformative moment in the quest for safer, more reliable monitoring solutions. By harnessing the power of intelligence and data, we’re reducing false alarms and paving the way for a future where proactive security is the norm. As we look ahead, the potential of AI to transform the industry is limitless.

31

DIVERSE PERSPECTIVES

BY NICOLA OAKIE, VICE PRESIDENT OF SALES, NETWATCH

In the constantly evolving landscape of the security industry, the role of women has often been underrepresented. Yet, women have excelled across a variety of roles, from the strategic decisions made in the C-suite to the innovative campaigns crafted in marketing and sales and the groundbreaking solutions developed in engineering. Their contribution showcases an influence that enriches the industry with diverse perspectives, creativity, and resilience. This impact continues to grow and expand, reshaping the industry.

Organizations such as the California Alarm Association’s WISE (Women In the Security Evolution) and WISF (Women in Security Forum), run by the Security Industry Association (SIA), are at the forefront of championing this evolution. By highlighting the achievements of women throughout the industry, these groups provide the recognition that female professionals deserve while inspiring a new generation to explore career opportunities in security.

As we stand at the crossroads of an evolving market, the imperative to push these efforts forward has never been more apparent. The collective effort to elevate the role of women is not just about achieving equality — it’s about leveraging the full spectrum of talent available to us, ensuring that the industry not only grows but thrives in its richness and diversity.

WISE is dedicated to promoting women in the industry. By focusing on increased visibility, inclusivity, and equality, WISE is paving the way for a more diverse and empowered market. In collaboration with security solutions and service providers, such as Netwatch, there is a commitment to championing diversity initiatives and acknowledging the contributions of female leaders. WISE’s vision is to create a thought-based community of leaders who are committed to each other’s success. This vision is rooted in the belief that collective support and empowerment can lead to great achievements.

This year, WISE has taken significant steps to review and enhance its mission and direction. This includes efforts that incorporate the diverse voices of its members.

The commitment to highlight three WISE members monthly in the MIRROR publication is a testament to this effort and the group’s dedication to increasing visibility and celebrating the achievements of its members. WISE also strives to feature insights from its members on topics of inclusivity and niche services in security in a variety of mediums, all part of its mission to share knowledge and experiences that can inspire and educate others within the industry.

I am proud to be part of an organization that values diversity and supports groups like WISE. Netwatch, a provider of proactive video monitoring services, supports the advancement of women in the security sector and recognizes the important role that female leaders play in driving innovation and excellence. Netwatch actively promotes an inclusive culture that values and nurtures all talent. Through initiatives like partnering with WISE, Netwatch is advocating for gender diversity and actively contributing to the creation of a more equitable industry. Today, I am the VP of Sales for Netwatch North America.

As the electronic security industry continues to grow, the need for a diverse and inclusive workforce becomes increasingly clear. Organizations like WISE, supported by industry allies like Netwatch, are essential in this journey. By highlighting the achievements of women, advocating for equality, and providing platforms for leadership and development, we are contributing to the advancement of women while shaping the future of the industry.

As someone deeply proud to be part of this industry, I have witnessed remarkable transformations over the course of my career. By working together, we are paving the way towards an inclusive space that not only attracts but also retains top talent. Looking ahead, the role of female leaders, coupled with our efforts to support and celebrate their contributions, is essential in shaping an industry that is dynamic, resilient, and successful — an industry that people are eager to be a part of.

Together, we can achieve our shared goals and create an environment where everyone seeks to thrive.

33

A VISION FOR THE FUTURE AN INTERVIEW WITH TOM COOK, EXECUTIVE VICE PRESIDENT OF SALES AND OPERATIONS, HANWHA VISION

As the market for intelligent solutions expands, organizations are increasingly adopting a more datadriven, proactive approach to security and safety. In this evolving landscape, technology providers are finding new ways to develop strategic initiatives that ease integration between systems and open the door to new functionalities for end users.

Hanwha Vision (formerly Hanwha Techwin) has been a leader in the global video surveillance industry for more than 30 years, excelling in optical design, image processing, and cybersecurity technologies. Now focused on becoming a global vision solution provider, Hanwha Vision aims to deliver valuable and meaningful insights to customers through big data analytics utilizing AI and cloud technologies.

This mission aligns with Netwatch's comprehensive approach to security, which combines the strengths of people, technology, and intelligence. Both companies understand that a proactive approach to security is essential for protecting assets and ensuring peace of mind. By integrating Netwatch’s proactive video monitoring service with Hanwha video surveillance solutions, Netwatch and Hanwha have set new standards in the security landscape and are leading the industry toward a more robust, safer world.

"We are fortunate that Netwatch found our video surveillance solutions to be an ideal fit for their intelligent video service for remote monitoring," said

Tom Cook, Vice President of Sales Americas, Hanwha Vision. “We have fully supported integrating Netwatch's software with our cameras, and we have become their standard for camera integration in the United States."

The industry is undergoing a significant transformation, becoming a dynamic source of technological innovation and business resilience. To continue this evolution, the industry must embrace digital transformation. By challenging conventional thinking and aligning with the practices of today’s most successful businesses, the security sector can deliver new insights, creating value across the organization.

AI is a core pillar of Hanwha Vision's capabilities. The company develops its own chipsets, which are integrated into their cameras, and ensures top performance and innovation. Looking ahead, Hanwha believes that generative AI represents the future of security technology. Customizable AI that can identify anomalies and search for them across recorded times will further revolutionize the industry, Cook said, providing unparalleled accuracy and efficiency in surveillance.

"Times have changed, and physical security has evolved significantly," said Cook. "Digital transformation is upon us, and AI is now a crucial component of our industry. By embracing AI and working with companies like Netwatch, we’re ready to ride this wave of innovation and assist integrators and end users in creating more efficient and safer environments."

Intelligent security services, like proactive and remote video monitoring, have enabled Hanwha to gain further traction by providing solutions that open the door to new opportunities for integrators, extending their reach beyond traditional niches within the security industry. Cook said the increased reliance on remote video monitoring capabilities has significantly impacted service providers. Systems integrators are now working to offer a full breadth of cloud services and build recurring monthly revenue models — offering their clients more comprehensive and proactive security solutions and transforming how security services are delivered and managed.

One of the most prominent applications of AI in the video monitoring sector is the opportunity to build more proactive approaches to security. But, transforming the once-reactive industry into a proactive powerhouse requires significant effort.

Integrators find selling a service that provides proactive security appealing. Are security practitioners on the same page?

"Most end users are now looking for ways to use cameras for operational efficiency," said Cook.

"They're leveraging AI and other technologies to enhance operations, reduce costs and false alarms, and prevent vandalism. Beyond security, they're identifying issues such as conveyor belt jams or problems with expiration labels. The future is ripe for emerging use cases, and only time will tell what innovative applications businesses will develop for AI and video technology."

12 35

UTILITIES

ENERGIZING SECURITY TO PROTECT COMMUNITIES

36

The recent uptick in security-related incidents targeting U.S. electrical substations and utilities has set off alarm bells. With a 71% increase in incidents over the past year, experts predict that this worrying trajectory will continue into 2023 and beyond. More than mere numbers, these incidents pose a direct threat to citizens, neighborhoods, vital industries, and the national economy.

The increasing number of attacks on utilities poses a multifaceted challenge for city administrations, both public and private entities, and local communities. According to the Electricity Information Sharing and Analysis Center (E-ISAC), various forms of attacks such as gunfire damage, equipment sabotage, security breaches, and vandalism are on the rise. These incidents have occurred in clusters, impacting numerous regions across the country.

During a technical conference convened by the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corp. (NERC), Eric Rollison, assistant director of the U.S. Energy Department’s Office of Cybersecurity, emphasized the “heightened threat environment” surrounding the industry.

Additionally, a NERC report noted a marked increase in physical security incidents since 2020, with significant outages reported in substations in North Carolina, Washington state, and California. Varied motivations, from economic theft to ideological extremism, add layers of complexity to this issue, complicating the work of law enforcement and local governments.

Electrical substations and public utilities are critical to modern society, providing power to residences, offices, healthcare systems, and various modes of transportation. A single attack on these vital nodes can lead to a domino effect of disruptions. For example, a major power outage in a North Carolina county in December 2022 left 35,430 utility customers without power, a crisis exacerbated by evidence of tampering at two key substations.

The financial ramifications of these security lapses can also be debilitating.

Following an incident, utilities may experience surging insurance premiums, face liabilities, and even suffer reputational damage. They may also could entail penalties and the need for corrective measures to preempt future occurrences.

Protecting the U.S. electrical grid — comprising more than 55,000 substations and extensive transmission lines — is no small feat. While traditional approaches like fences, video surveillance, security by environmental design, and adequate lighting have provided some level of deterrence, they fall short.

Traditional solutions often also serve a more reactive role, aiding in post-event investigations rather than actively thwarting incidents.

Among emerging tech, proactive solutions show promise. SaaS offerings deliver the capabilities needed to get ahead of risks.

For example, remote video monitoring combines real-time video surveillance with the immediacy of operator intervention. This proactive approach empowers trained operators to intervene immediately, delivering a live, customized voice down to deter criminal behavior. Rather than just recording incidents for later review, utilities can use existing camera technology combined with video analytics to identify and counter threats in real time.

The future of security solutions for the utility and critical infrastructure sectors is centered around integrated artificial intelligence technology. AI is immensely powerful as it can enable a once-passive system, like traditional video surveillance, to automatically identify unauthorized movements or actions. Then, a remote operator immediately intervenes and delivers a personalized message. An example is, “You in the yellow shirt with the black hat.” This action informs the intruder that they’ve been identified, and if they don’t leave, authorities will be dispatched to the site.

In cases where the intruder remains unresponsive, specialists promptly contact local law enforcement and other relevant parties to ensure a rapid and effective response. This solution is particularly beneficial for providing security to remote utility sites where traditional security approaches fall short.

38

While the current threat landscape is challenging, it’s not without remedy. Innovative tech and collaborative efforts like public-private partnerships can achieve a secure and resilient energy landscape. Advanced technology and services offer immediate intervention capabilities, something not feasible with traditional methods.

The urgency for innovative, adaptive security strategies has never been greater. Through investments in technologies and protective processes, and a dedicated commitment to enhancing security measures, the industry can turn this sizable challenge into a stepping-stone for stable, long-term growth. The clock is ticking, and the risks are substantial, but a fortified and resilient energy future is attainable.

A version of this article appeared in the November issue of Power Grid International.

SEE BEYOND

Netwatch's AI video monitoring transforms security from simple observation to proactive foresight, transforming security operations into a catalyst for growth and limitless opportunities. And this is just the beginning. Explore what's on the horizon at netwatchusa.com.

Read more online at netwatch.com/horizon