SECTION I: ESTIMATION OF COSTS
| 1 | Taking into account the rest of the cost evaluation please provide an overall estimation of the total costs for full deployment/production of the R & D result. |
| … in terms of IPR protection | |
| USPTO patent 700 euros, maintenance 350 euros, file and application preparation= 1500 euros = total IPR = 2.550 euro | |
| …in terms of product development | |
| Advancing to beta version requires:
Web designer – improvement of website and aesthetics 2PM x 3000=6000 Web developer – improvement of user interface 4PM x 3000 = 12000 Research assistant – Enrichment of content= 24 PM x 2000 = 48000 Mobile developer – development of mobile applications = 12PM x 3000 = 36000 Data architect – refinement in data processing and management=5PM x 3000 = 15000 Crawling and processing nodes equipment=20000 Storage 1TB per ten cities = 10000 Testing = 5PM x 4000 = 20000 Total product development cost= 151.000 euro |
|
| …in terms of mass production | |
| There are no mass production cost | |
| … in terms of marketing | |
| There is major marketing cost at the end of year where the beta version will be launched. This cost includes mainly internet marketing through banner promotion and marketing gimmicks to divert potential users into the ClustTour site. These gimmicks include photo contests and learning the city information campaigns e.g “learning Madrid”. The intensity of the campaign will remain significantly lower in the other periods. | |
| 2 | Based on the above assessment as well as the marketing information please provide the correct estimation of the price for R&D product in correlation with costs | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Fixed costs | 50000 | 70000 | 90000 | 120000 | 140000 | ||
| Personnel | 130000 | 30000 | 40000 | 50000 | 60000 | ||
| Other running costs | 40000 | 5000 | 6000 | 7000 | 8000 | ||
| Marketing costs | 50.000 | 10000 | 10000 | 10000 | 10000 | ||
| TOTAL EXPECTED COSTS | 270000 | 115000 | 146000 | 187000 | 218000 | ||
| Price per Unit | 5 | 5 | 5 | 5 | 5 | ||
| Number of Units | 1000 | 20000 | 40000 | 60000 | 80000 | ||
| TOTAL Expected Revenues | 5000 | 100000 | 200000 | 300000 | 400000 | ||
| CASH FLOW REQUIRED (REVENUES-COSTS) | -265000 | -15000 | 54000 | 113000 | 182000 | ||
| TOTAL CAPITAL required for five years | 280.000 | ||||||
SECTION 2: QUALITATIVE FACTORS
| 3 | Dimension of identified target groups |
| Target groups related to direct sales (not including client that are using free web services are estimated to 20,000,000 users, the basis of estimation is the user sets of competitors, From the market the product aims to earn 5% market share, | |
| 4 | Evaluation of financial Risks for R&D result |
| The financial risks involve mainly product development costs for gaining competitive advantage over the competition. Technical risks are important and must carefully managed and monitored. Corrective actions must be planned to avoid implementation problems and misconfigurations. This risks cover the first year of the operational plan. The new version should be launched at the beginning of second year without delays as time to market is a crucial factor for ICT products. | |
SECTION 3: IDENTIFICATION OF FINANCING SOURCES
After evaluating all the above mentioned criteria, please tick the best financing source for the achievement of R&D result (i.e. own capitals, banking credits, venture capital, business angels, etc)
| 1. European Funding
Define relevance of the product with the following potential funding sources and comment |
| FP7 STREP Digital Content and Libraries
FP7 IST FP7 e-content |
| 2. National Funding |
| Not available |
| 3. Private funding |
| Joint ventures with private investors in the form of spin-off
Venture capital financing
|
| 4. Other |
| Partially financing of operating cost through incubators |
SECTION 3: FINAL EVALUATION
| It is requested a final evaluation considering the funding opportunities you believe most suitable for the exploitation of the R&D result, considering the possibility of the creation of a spin-off, further research, in particular, a cost/benefit analysis and a financial projection for the R&D result, type of collaboration identified (i.e. Licensing Agreement, Technical Cooperation, Joint Venture, Manufacturing Agreement, Commercial Agreement with Technical Assistance, Creation of a spin-off, Joint further development)… |
| The product requires a joined venture with global web service company in the form of spin-off. The technical excellence of the team must be matched with skills for market creation under a new business model. Great technical skills often are undervalued from poor business models. Technical and scientific innovations require also intuitive market creation plans. |
Decision of evaluation
The R&D has a high potential of exploitation
Sotiris Zygiaris
