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 | |
| There are no costs associated with IPR protection. | |
| …in terms of product development | |
Costs in this category refer to personnel and fixed costs for further research, design, implementation, and testing, in order to develop a product based on the original R&D result. The total cost is estimated at 492.000 € and concerns a period of two years.
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| …in terms of mass production | |
Costs in this category refer to post-development activities, i.e. software distribution, customer support, and maintenance. The total cost is estimated at 516.000 € and concerns a period of three years.
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| … in terms of marketing | |
| Costs in this category refer to production and distribution of leaflets, attendance in exhibitions and conferences, and published material in relevant IT magazines. The total cost is estimated at 55.000 €. | |
| 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 | 22.000 € | 2.000 € | 2.000 € | 2.000 € | ||
| Personnel | 235.000 € | 255.000 € | 235.000 € | 235.000 € | 235.000 € | |
| Other running costs | 14.000 € | 14.000 € | 14.000 € | 14.000 € | 14.000 € | |
| Marketing costs | 15.000 € | 25.000 € | 15.000 € | |||
| TOTAL Expected Costs | 271.000 € | 269.000 € | 266.000 € | 276.000 € | 266.000 € | |
| Price per Unit | - | - | 5.000 € | 5.000 € | 5.000 € | |
| Type of Unit | License | |||||
| Number of Units | - | - | 40 | 100 | 150 | |
| TOTAL Expected Revenues | - | - | 200.000 € | 500.000 € | 750.000 € | |
| CASH FLOW REQUIRED (REVENUES-COSTS) | -271.000 € | -269.000 € | -66.000 € | 224.000 € | 484.000 € | |
| TOTAL profits (CAPITAL required) for five years | 102.000 € | |||||
SECTION 2: QUALITATIVE FACTORS
| 1 | Dimension of identified target groups |
| Since the European IT market is about 260 billion € and the target of FUSION is to reach 750.000 € in revenues, FUSION is estimated to acquire a small proportion of the entire market (approximately 1/0.000). | |
| 2 | Evaluation of financial Risks for R&D result |
| The major financial risks are the following:
- Sales are at a lower level than those expected. Probability: medium Impact: high - A free toolset for Semantic Enterprise Application Integration enters the market. Probability: low Impact: high |
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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 |
| 1. EUROSTARS Call / EUREKA Programme
2. Research for the benefit of specific groups / Capacities Theme / FP7 Programme 3. ICT PSP / FP7 Programme |
| 2 National Funding |
| 1. Collaboration Programme
2. Research for the benefit of SMEs Programme
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| 3 Private funding |
| 1. Venture Capital
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| 4 Other |
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)… |
| FUSION research results are promising at a commercial level and address a real market demand, that of Enterprise Application Integration. However, the requested total capital, profit margin, competition levels in IT services and the recent economic global downturn dictate that more R&D towards the above direction is needed prior to commercial exploitation. |
Decision of evaluation (Please tick as appropriate)
The R&D result needs moderate revisions
Panagiotis Tsarchopoulos
