SECTION I: ESTIMATION OF COSTS
| 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
The full cost for securing the patent and renewing it for 5 years is 1450 € .…in terms of product development For the product development 5 employees are need for a period of maximum 9 months. With a salary of 2000€ each this will cost about 90.000€. In this cost the translation of the software in English is included .…in terms of mass production The widespread se of pocket PCs can completely substitute the originally made Smarteyes device. The pocket PCs can be enriched with the features of Smarteyes in order to serve the needs of the visually impaired. What is needed for mass production are SIM cards, software licenses for voice recognition, digital maps, an Internet connection and for the full version also a RFID reader. The staff needed after the product development are 3 employees working on a full time basis. A SIM Card costs around 5 € Voice Recognition Software license costs around 70 € The RFID reader costs around 150 € The cost of digital maps depends on their quantity e.g. for Athens the cost is, eventhough free digital maps are now being developed from sites as the Openstreet *(SIM, card, Voice Recognition License and RFID reader cost are expected to fall if the orders made are large and the price is negotiated with the companies selling them) … in terms of marketing The marketing costs of the product depend on the target market. For the Greek market these are calculated around 15000€, but the cost is this high only for the first year. |
| 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 | 50.000 | 125.000 | 200.000 | 250.000 | 300.000 | |
| Personnel | 108.000 | 72.000 | 72.000 | 72.000 | 72.000 | |
| Other running costs | 1.500 | |||||
| Marketing costs | 15.000 | 10.000 | 10.000 | 10.000 | 10.000 | |
| TOTAL EXPECTED COSTS | 174.500 | 207.000 | 282.000 | 332.000 | 382.000 | |
| Price per Unit | 600 € | 600 | 600 | 600 | 600 | |
| Type of Unit | ||||||
| Number of Units | 200 | 500 | 800 | 1000 | 1200 | |
| TOTAL Expected Revenues | 120.000 | 300.000 | 480.000 | 600.000 | 720.000 | |
| CASH FLOW REQUIRED (REVENUES-COSTS) | -54.500 | 93.000 | 198.000 | 268.000 | 338.000 | |
| TOTAL CAPITAL required for five years | 1.377.500 | |||||
SECTION 2: QUALITATIVE FACTORS
| 3 | Dimension of identified target groups |
| The size of the Greek target group can be calculated as following:The percentage of the population in Greece between 15-64 is about 70%.The visually impaired persons between the ages of 15-64 are the potential users of Smarteyes So the Greek target market is calculated around 17.500The global market is calculated at about 20 million (15-64 population of visually impaired in the developing world). | |
| 4 | Evaluation of financial Risks for R&D result |
| The financial risks attached to the development of Smarteyes are small, since there is already active demand for the product, the development costs are small and there is a technical team ready to produce it. The lack of competition in the Greek market is also very important. | |
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 FundingDefine relevance of the product with the following potential funding sources and comment |
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| 2. National Funding |
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| 3. Private funding |
| Private Investor/s |
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)… |
| Taking under consideration the funding opportunities for NOESIS, the most suitable method for product deployment would be the creation of a new commercial firm. This new firm can be funded by an investor or a group of investors, who will combine private capital with european funding opportunities in order to organise mass production and promote the product in all the possible markets mentioned earlier.The team that created SmartEyes should be used as the expertise staff in charge of product development, production and technical support. |
Decision of evaluation
- The R&D result needs minor revisions and has a high potential of exploitation.
Panayotis Kotsios
