Potential market

PART B: valorisation plan

SECTION I: The product

 

1a

The innovation potential of this product is related to:

 

  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…
The simplified multifunctional universal serial bus (USB) interface was designed to allow the connection of peripherals to computers using a standardized connector, replacing the ancient parallel and serial ports. It also aims to optimize the installation of devices through the plug-and-play feature, i.e. the ability to connect and disconnect devices without rebooting the computer.

Normally the user is obliged, before using a device with USB connectivity, to install a driver and a software application, which are previously distributed through other media channels, such as Internet or CD/DVD. Clearly it represents a considerable increase in development and production costs, logistical distribution problems and a limitation to the plug-and-play automatic feature, making difficult the device’s operation, especially when designed for multi-use environment.

Starting from all these considerations, it’s clear that the innovation potential of this product is mainly related to a cost reduction and can replace already existing USB products introducing an important new technical feature.

The market is ready to receive this product, some requests at international level already occurred and confirmed the validity of the invention.

 

 

1b

What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
It aims to eliminate the need of development and installation of custom drivers and to facilitate the connection of various electronic devices, especially if they require the establishment of a communication channel to other devices that have USB connection, e.g. computers, PDAs, mobile phones and others, automatically and transparently so the user is able to fully operate them, without having to manually intervene.

The present product can improve the end user experience reducing development costs and time to market. This will be possible thanks to the file sharing and direct communication between host and device applications that are facilitated by the product.

 

 

1c

What is the Unique Sales Proposition of the potential product?
The USP of the present product is mainly represented by its ability to overcome current issues in the implementation of USB devices, as the management of composite peripherals and the development, deployment and installation of device drivers and software.

 

 

 

 

 

 

 

 

SECTION 2: The Market

 

 

2a

What is the target market for the product?

National ¨

European ¨

Global ý

Please describe the characteristics of your target market.

The product is targeting a global market as it is addressing the sector of electronic devices being represented by PCs, notebooks, mobile phones.

All most relevant studies about the development of electronics product and services usage are demonstrating a very positive selling trend of these kind of products and devices especially in the so called emerging countries. A situation that is going to increase in the next future.

Nowadays the electronic market is comparable to the automotive industry market, which in the past has represented one of the leading economic markets. This means that it is very important and there are big opportunities, but it’s also a market running very fast and therefore it’s very important not to lose time and run very fast as well.

 

 

 

 

 

 

 

2b

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

All producers of electronic devices can be possible competitors, but only one has developed a similar product in the past; this is an English company (FTDI).

The difference between Simplified Multifunctional USB and the product developed by the English company consists mainly in the additional functionalities provided by the Simplified USB. The very innovative aspect is the fact that with the new solution there is no need to develop or install additional drivers. This aspect is completely new and therefore has been protected also by an international patent.

 

 

 

2c

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

The target market is already developed and it’s represented mainly by:

- companies producing electronic devices and developers at national and international level;

- companies selling electronic devices.

Some possible clients have already been identified, and are i.e. Digikey, Mouser, Farnell, RS Components, Arrow, Avnet.

 

 

 

 

 

 

2d

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)

The product is mature, ready for the market, and is ready also for further development.

In March 2010 a patent application of a new device was filled. In May, an article about the study has been published in a prestigious Italian magazine. Many developers have demonstrated interest from Italy and also from abroad, in particular from a  major U.S. retailer of electronic components. In October, the research report by the European Patent Office has been completed with positive statements about all the necessary requirements to obtain the patent: novelty, inventive step and industrial application. Finally in March 2011 the patent has been extended abroad through the Patent Cooperation Treaty (PCT), which gives the ability to protect the invention in 142 countries.

 

 

 

2e

Strategic partnerships (existing or potential).
Collaboration with developers of complementary devices is envisaged.

 

 

 

 

 

 

SECTION 3: The Competition

 

3a

What is the competition within your target market?
The competition in the electronic market is very high. As already described in previous boxes, it is targeting a global market: the sector of electronic devices is represented by PCs, notebooks, mobile phones…devices that nowadays can be considered of common large use.

Considering the specific USB product, the main competitor is an English company that has developed something similar, but the innovative character of the present invention is absolutely new.

 

 

 

 

 

3b

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)

The product will introduce an innovative characteristic and therefore can be considered unique in its genre. From the user point of view, it will also give the possibility to reduce costs and time, as there is no need to install other drivers or applications before proceeding with the program.

 

 

 

 

 

3c

Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

The product is in the average price range and it will change depending on the number of USB ordered. The software and the complete documentation in English are included in the price.

 

Quantity Price
From 1 to 9 €21,80
From 10 to 99 €19,95
From 100 to 299 €17,10
From 300 to 999 €14,80
From 1000 on €11,90

 

 

 

 

 

3d

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

The product will be marketed to markets operating on the principle of free negotiation between agents on the market.

 

 

 

 

 

 

SECTION 4: Indicators

 

Estimated cost of the new products 5€/unit on mass production

 

Expected market volume (potential / maximum number of users) From 1k to 10k/year

 

Expected sales volume From 1k to 10k/year

 

Expected market share of the company (proportion between sales and total company sales in the relevant market) The global patent protection assures the domain of the niche market

 

 

KEYWORDS QUANTITATIVE ASSESSMENT (0-5).

 

Please put X as appropriate. 1 2 3 4 5
Added-value potential       x  
Size of future market demand         x
Competitive positioning of the product       x  

 

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