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Agenda

Agenda. Product Description Operation Plan Market Analysis Competitors Business Model Marketing Plan SWAT Model Future Development. Background. Plane crashes into the ocean – The search for the black box. Cost per day: 150K-200K $ Salvage time: 7-14 days. Up to 11KM deep.

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Agenda

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Presentation Transcript

  1. Agenda • Product Description • Operation Plan • Market Analysis • Competitors • Business Model • Marketing Plan • SWAT Model • Future Development

  2. Background Plane crashes into the ocean – The search for the black box Cost per day: 150K-200K $ Salvage time: 7-14 days Up to 11KM deep

  3. Idea Outline Avoiding mass operation with our product Communication with box: acoustic

  4. The Electronic boards process the data Flash Memory Card The Existing Box During Flight: This Cable feeds flight data and voltage from plane CSMU – crash survivable memory unit

  5. Modem Transducer modulator ControllerBoard T/R demodulator 001111010… Batteries Transmit mode 101001011… The Product Flash Memory Card Receive Mode • Plane crashes into the ocean • Controller sorts flight data • Controller enters waiting mode • Transmission from search ship arrives • Message says: “start transmission” • Board switches to Transmit mode • Board prepares file and sends it to modem • Modem modulates bits to electric signals • Transducer transduces electric signals to acoustic signals

  6. Order of transmission • Transmission is ordered due to limitedbattery power and liability • Data is sorted by: • Time – descending recency • Formal necessity – mandatory parameters first • Importance to crash investigation • Data can be sent as requested: • protocol allows specific requests • Data is compressed • In the future – self detection and sending of irregularities

  7. Operation Plan I • Considerations: • Aviation industry nature • Gap between box manufacturers and product beneficiaries • Economies to scale – few large companies dominate the market • Rigid regulation and intricate authorization

  8. Operation Plan II • First Stage – independent R&D: • Patent registration • Estimated Needs for the first stage: • Development: 6 months • Team: 6 engineers, 4 businessmen • Funding: 3M $ to raise • Meanwhile: lobbying for regulation

  9. Operation Plan III • Second Stage – engagement: • Agreement with 1+ box manufacturer/s: • Customization • Common R&D teamwork • Estimated Needs for the second stage: • Development: 1 year • Team: 3 engineers, 4 businessmen • Funding & housing : By manufacturer

  10. Year 2001 2004 2020 2020 New airplanes Upgraded New airplanes Sum Commercial Airplanes- Major market 15,000 1,000 5,000 18,400 39,650 Jet planes- Secondary Market 50,000 1,000 6,500 30,000 87,500 Sum 65,000 2,250 11,500 48,400 127,150 Market Analysis I

  11. Market Analysis II • Black box manufacturers • Major Trends: • Stable Growth • Strongly depends on airlines growth • Distribution Channels: box manufacturers • Major Players: • FAA (Federal Aviation Administration) and other regulating authorities • Commercial airplane manufacturers • Airline companies

  12. Market Analysis III • Entry Barriers: • Rigid regulation (FAA) • Conservative market • Centralized industries: • Aircraft industry • Black box industry • Huge corporations • Infrastructure dependency • Uncertainty

  13. Competitors I • Direct competitors – box manufacturers: • Honeywell (~30% market share) • L-3 Communications (~30% market share) • Smiths Industries (~20% market share) • Others: • penny & Giles • Universal Aviation • British Aerospace • EMH Technologies

  14. Competitors II • Indirect competitors – Alternative solutions: • ‘The infrastructure solution’–Broadcasting data to ground constantly Example: Refael & Elbit-Starling • ‘The partial infrastructure solution’ – Broadcasting to ground on emergency • ‘The engineered solution’ – The box detaches from plane and floats DRS Flight Safety & Communication

  15. Business Model I - Pricing • Direct costs - • Saving search costs: average of $1.5M • Insurance premium saving: $3,000-$4,000 per plane a year • Indirect costs - • Damaged reputation • Diplomatic damage in case of a suspicion for terror attack • Added revenue to box manufacturer: $5-$6K per unit • Our share - $3K per unit

  16. Business Model II-Revenue • Modest scenario: • New commercial planes: ~30% out of 1000 • Upgraded and Domestics: ~550 planes • Sum: 850 planes and 1700 boxes • Added revenues to manufacturer: 9-11M Our share: 5-6M $ • Best-Case scenario: • New commercial planes: 1000 • Upgraded and Domestics: 1000 • Sum: 2000 planes and 4000 boxes • Added revenues to manufacturer: 20-24M $ Our share: 10-12M $

  17. Development Stage I - Cost • Salaries for the 10-12 employees and consultant- $500K • Rental fee - $30K • Development of ASIC - $200K • Patents registration- $600K • Transducer Housing (Outsourcing)- $200K • Amplifier & Modem customizing - $200K • PR & Trade shows - $800K • Total costs- ~$3M

  18. Marketing Plan I • Positioning - an efficiency & safety mean to: • The Black box manufacturers • The FAA • Mediums to reach our customers - • Doron Yogev- connections with: • Black box manufacturers • The FAA • Airline companies

  19. Aviation Trade shows • Potential Trade shows: • July 2003- • Wittman Regional Airport, Oshkosh, WI • September 2003- • Harrah’s Reno, Reno, NV • Orange County CC, Orlando, FL • October 2003- • Palm Springs, CA

  20. SWOT Model I • Strengths: • New technology • Chance of regulation • Partnership • Weaknesses: • Uncertainty – Must have VS. Nice to… • Dependency on manufacturers • Trouble in funding due to high risk

  21. SWOT Model II • Opportunities: • Anti-terror approach – keenness to accept new ideas related to safety • Threats: • The box’ manufacturers’ R&D

  22. Future Development • Third stage: penetrating the marine market • Large naval vessels also carry quite similar black boxes • Entry barriers – lower • Regulation – less rigid • Atmosphere – more opened to innovations • Technical facileness – in comparison to aviation

  23. AKS ACTIVE Credits • We’d like to thank: • Dorog Yogev – Jet Link * Yoseph Statman – NASA * MichaelThompson – Honeywell * Ning Xiao – LinkQuest * Arye Cohen& Hanan – Bedek * Michael Sahar – Tadiran * Yitzhak Ben Ya’akov & Jacob Barak – El-Al * Ed Hischmeyer – FAA * EfiZahavi * Sela Meyouhas – Underwater Electronics Branch / IDF Navy * Nir Barkat – BRM * Dana Teltsch – HUJI * AviramArbel – Noytech * Arye Fredelis & Amiram – EL-AL • Dan Aks * Yuval Shafir * Moshe Bar Siman TovTal Kramer * Yoav Magen * Avi Gruber

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