SECTION I: ESTIMATION OF COSTS
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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. |
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… in terms of IPR protection |
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License file application 700 euros, maintenance 350 euros/year |
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…in terms of product development |
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A smart city engineer= 6PM x 5000 = 30.000 An smart city planner with innovation background 6PM x 5000=30.000 A PHP and MySQL programmer= 12 PM*3000=36.000 A Java programmer= 12 PM x 2000=24.000 Total= 120.000 Euro
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…in terms of mass production |
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There are no mass production costs |
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… in terms of marketing |
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The product yields a major marketing campaign after the first year of planning. In the second year a major marketing effort will be made to target markets mainly using web-marketing resources. The effort will include monthly free trial use and will involve social media marketing. The cost of marketing cost for second year is 50.000 euro, while the subsequent years is limited to 10.000 euros per year. |
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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 |
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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Fixed costs |
20,000 |
25,000 |
30,000 |
35,000 |
40,000 |
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Personnel |
120,000 |
22,500 |
45,000 |
90,000 |
135,000 |
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Other running costs |
1,500 |
7,500 |
15,000 |
30,000 |
45,000 |
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Marketing costs |
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50,000 |
10,000 |
10,000 |
10,000 |
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TOTAL EXPECTED COSTS |
141,500 |
105,000 |
100,000 |
165,000 |
230,000 |
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Price per Unit |
15000 |
15000 |
15000 |
15000 |
15000 |
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Number of Units |
1 |
5 |
10 |
20 |
30 |
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TOTAL Expected Revenues |
15,000 |
75,000 |
150,000 |
300,000 |
450,000 |
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CASH FLOW REQUIRED (REVENUES-COSTS) |
-126,500 |
-30,000 |
50,000 |
135,000 |
220,000 |
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TOTAL CAPITAL required for five years |
Total required capital = 156.500 |
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SECTION 2: QUALITATIVE FACTORS
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3 |
Dimension of identified target groups |
Targets groups for city authorities will be approached through presentations conferences and reports. The marketing plan includes a 1% market target at the end of year 5 at a cost of 15000 euro for each smart city plan.
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4 |
Evaluation of financial Risks for R&D result |
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The project is considered of high risk since the tool has not been already developed by many applicators, the advantage derives for the model. |
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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)
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1. European Funding Define relevance of the product with the following potential funding sources and comment |
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FP7 related ICT, smart cites andm sustainable cities. |
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2.National Funding |
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GSRT programmes |
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3. Private funding |
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Jeremie and venture capital funds |
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4. Other |
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SECTION 3: FINAL EVALUATION
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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)… |
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A private-public partnership schema could be developed to finance the launching of the product to the market, in terms of a joint venture. |
Decision of evaluation (Please keep only the appropriate)
The R&D has a high potential.
Nikos Zaharis
