PART B: valorisation plan
SECTION I: The product
|The innovation potential of this product is related to:
|The current energy transmission modules in vehicles do not fully utilize the entire energy generated by the engine.
The proposed construction for embedding driving aggregates replaces existing products /or improving them without replacing/, actually several complex systems that are currently in use in the automobiles manufacturing and altogether perform the function of this product – the “Dynamic drive” type hydraulic systems and the “Tracking control” type breaking systems.
It is very important to underline the flexibility of application that this device provides:
The proposed construction also is offering cost reduction / when replacing dynamic drive expensive systems/ due to its simplified constructional concept – it is in times cheaper and easier to manufacture than the existing analogue products which rely on complex electronics and hydraulic systems. Another aspect is also to be highlighted and it is that the current analogue systems in use are requiring significant share of the automobile’s power in order to operate. The proposed aggregate is not only completely mechanical device but leads to better distribution of the engine power and thus leads to power economy in general.
It is as well a market driven innovation because it significantly improves the safety of the vehicles, especially in critical conditions as when driving off (потегляне), sudden turning and braking.
The product has features of radical innovation – though, grounded on classical mechanics it’s design and characteristics brings to a completely new approach in solving the problems in intense acceleration and deceleration (respectfully safety) in vehicles manufacturing.
|What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
|The proposed innovation holds a number of advantages for the end users:
In terms of technical characteristics, it offers significantly improved safety of the customers’ vehicles – overall and especially in critical conditions as when setting (driving) off, sudden turning and braking, slipping road-surfaces, etc. The safety tests indicate increasing between 20 and 40 %;
In terms of price positioning, the product is significantly cheaper than the existing analogs. In fact it can replace several electronic and hydraulic systems which altogether perform the function of this aggregate and perform it with lower safety indicators and notable energy consumption – about 10%. This means that the integration of this aggregate into automobile production will lead to double economy effect – once it will reduce the overall price of the vehicle and on the other hand will lead to economy of power consumption.
In terms of competitive advantage, the innovation is extremely flexible –the product is planned to be developed into two basic directions:
1. As a industry oriented product (ready made) it will be marketed directly to the automobile-building industry to be integrated in various vehicles. In this case, the proposed aggregate is proves high flexibility and convenience as it is easy to assemble to all kind of 4-tires/ also 2-tires, 3-tires, and many tires/ vehicles with no adaptation needed (only slight size adjustments);
2. As a customized product for the end market – the device can will be offer to the end users as a tuning option with the purpose to improve the vehicle performance and safety For the moment this application is limited to some automobile models only accordingly to the original construction and bearings /.
Another strong feature is the construction’s simplicity and it’s easy maintenance in comparison to the analogue systems currently used which provides comfort and economy effect to the both envisaged groups of customers.
|What is the Unique Sales Proposition of the potential product?|
|Despite the global economic crisis, the automotive industry is in bloom – most of the automobile concerns have report increased profits for 2011 and even greater plans for sales and development for the close future.
The automotive industry is distinctive because of its extremely concentrated firm structure: a small number of giant companies exert an extraordinary amount of power over smaller firms.The global scope of both lead firms and the largest suppliers was enhanced by a wave of mergers and acquisitions,
This feature appears to be advantage for the proposed innovation as if once succesfully introduced to the industry it could easily penetrate this concetrated structure;
Another important distinctive feature of the automotive industry which the proposed invention tackles is that there are few fully generic parts or subsystems that can be used in a wide variety of end products without extensive customisation. Parts and sub-systems tend to be specific to particular vehicle models in contrast to memory chips and microprocessors in the electronics industry and to fabric and thread in the apparel industry.
The proposed devise is showing extreme flexibility in terms of integration into the manufacturing process. It is practically universal and could be assembled with minimum adjustments to for a various models of vehicles and types of suspension. –the product is planned to be developed into two basic directions:
Constructively, it exceeds with its simplicity and easy maintenance all the current analogues.
It is also drastically cheaper and easier to produce – it is almost entirely built by standard automobile parts and components which is a very important property in a market with such a great price pressure.
Not to forget the significant increase in overall vehicle safety which could be achieved with this simple aggregate.
Another major trend that this innovation addresses is the eco-conscious approach introduced into the automobile industry and especially the electro-and hybrid vehicles market.
As underlined above, the proposed device is completely mechanical and not only requires zero energy to operate but improves the distribution of power when driving and thus the whole energy consumption of the vehicle.
SECTION 2: The Market
|What is the target market for the product?
Please describe the characteristics of your target market.
|As it targets an industry with high global integration and dominated exclusively by international companies, this innovation is applicable on global scale – every car manufacturer could benefit it.|
|How the product is characterized from the following options? Number of companies producing similar products in the field.
• Base – applied by all companies in the industry
• Leading – applied by a single or limited number of competitive companies
• Key –at a development stage, but has already proven its potential
|Key –at a development stage, but has already proven its potential
The device can replace several electronic and hydraulic systems which altogether perform the function of this aggregate and perform it with lower safety indicators and notable energy consumption – about 10%. Another strong point is that it also exceed the performance indicators of the existing analogue systems. For example, the “Tracking control” type systems which are used now in the process of braking the automobile are not reliable in winter conditions while in distinction of the proposed device.
|What type of market demand will be satisfied?
• Existing demand – the market is already developed
• hidden (latent) demand – the market has yet to be developed
|Existing – due to the device characteristics; To summarise the advantages of the proposed solution:
1. Reduced slipping/skidding of tires at start.
2. Better acceleration.
3. Decrease of breaking distance.
4. Improved stability and better driving on curves.
5. Higher overall safety.
Hidden – due to its extreme flexibility, could be applied in sports and racing cars, customized and transferred in other transportation systems and means.
|What is the current stage of the product’s market life cycle?
• Implementation, implementation in production (leading to a radically new product offers)
• Growth (rapid spread within the industry or outside it)
• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)
|Implementation in production (leading to a radically new product offers)
The device is ready to be demonstrated
The researcher is aiming to propose his innovation for integration in the existing automobiles that are manufactured.
|Strategic partnerships (existing or potential).|
|Automotive industry in general.
Industrial transport systems
Racing and sports automobiles both as end product and industrial technology
SECTION 3: The Competition
|What is the competition within your target market?|
|There is no similar and simple system currently in use in the automobiles.
Currently the function which this invention is designed for is performed by a combination of systems:
The “Dynamic drive” type hydraulic systems for the driving off, the traction control systems when preventing loss of traction of the driven road wheels – the “Tracking control” type breaking systems for process of stopping.
These products are complex, require electronics and hydraulic systems and thus are expensive and difficult for maintenance. They also systems in use are requiring significant share of the automobile’s power in order to operate and are functioning with lower performance indicators compared to the proposed aggregate.
|What competitive advantages will the introduction of the new product ensue?
• lower prices based on lower production costs
• product differentiation (uniqueness of the product proposal)
|• Lower prices based on lower production costs – due to its simple mechanical construction, easy installation and maintenance compared to the present analogues, the product holds a certain advantage.
• In terms of product characteristics and differentiation (uniqueness of the product proposal): the proposed invention offers significantly improved safety of the customers’ vehicles – overall and especially in critical conditions as when setting (driving) off, sudden turning and braking, slipping road-surfaces, etc. in between 20 and 40 %;
The innovation is extremely flexible and could be applied as:
1 An industry oriented product (ready made) it will be marketed directly to the automobile-building industry to be integrated in various vehicles. It is also to be taken into account that the product could be used both in combination and singularly:
ü as a complementing device to improve the function of the drive control systems,
ü and as a economic substitution of the @Dynamic drive”-types of systems for the low-cost segment of vehicles;
2. A customized product for the end market – the device can will be offer to the end users as a tuning option with the purpose to improve the vehicle performance and safety
3. Another major trend that this innovation addresses is the eco-conscious approach introduced into the automobile industry and especially the electro-and hybrid vehicles market, where the product shows indications for much more simple adaptation and integration.
|Potential products relate to the following price range:
• High price range
• Average price range
• Low price range
|• Low price range up to average for customized or more specific applications. On one hand the product is expected to be significantly cheaper compared to the present analogue and on the other hand its function is to lead to economy effect (overall vehicle’s energy consumption);|
|Potential products will be marketed:
• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)
• To markets operating on the principle of free negotiation between agents on the market
•To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)
The device is constructed almost entirely from standard automobile parts that meet all the necessary regulations on the market.
SECTION 4: Indicators
|Estimated cost of the new products||100-300 Euros per unit for serial manufacturing
200-900 Euros per unit for tuning option(end-market product)
|Expected market volume (potential / maximum number of users)||10 000 000 vehicles are marketed annually only in Europe
30 to 100% of this volumes could be encompassed by the product if applied industrially.
|Expected sales volume||10 000 000 annually as industrial application|
|Expected market share of the company (proportion between sales and total company sales in the relevant market)||1% licensing rights of the above mentioned market volumes|