SECTION I: ESTIMATION OF COSTS
| 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. |
| … in terms of IPR protection | |
| USPTO patent 700 euros, maintenance 350 euros, file and application preparation= 1500 euros = total IPR = 2.550 euro | |
| …in terms of product development | |
| Product development from digital city ver1.0 to ver 2.0 with geospatial data and interconnection capability
Integration with web based GIS applications 10 pm x 4000 = 40.000 Integration smart grids = 15pm x 4000 = 60.000 Gis platforms = 50.000 Smar grid platforms = 70.000 Refining modules to new capabilities 25 x 4000 = 100.000 Total = 320.000 |
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| …in terms of mass production | |
| There is no mass productio | |
| … in terms of marketing | |
| Creation of new business model for cities that will support the decision for purchasing the product:
The following assumptions will define the Business Model
Cost for creation of the business module 6 x 4000 = 30.000 Marketing cost for digital city ver 1.0 first year(magazines, exhibition shows)= 40.000 Marketing cost for digital city ver 2.0 third year (magazines, exhibition shows)= 40.000 The rest of the years marketing actions will be preserved at a minimum of 10.000 a 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 | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Fixed costs | 50000 | 70000 | 90000 | 120000 | 140000 | ||
| Personnel | 250000 | 350000 | 600000 | 800000 | 1200000 | ||
| Other running costs | 175000 | 50000 | 150000 | 200000 | 300000 | ||
| Marketing costs | 70.000 | 10000 | 40000 | 10000 | 10000 | ||
| TOTAL EXPECTED COSTS | 545000 | 480000 | 880000 | 1130000 | 1650000 | ||
| Price per Unit | 50000 | 50000 | 100000 | 100000 | 100000 | ||
| ver | 1.0 | 1.0 | 2.0 | 2.0 | 2.0 | ||
| Number of Units | 5 | 10 | 15 | 20 | 30 | ||
| TOTAL Expected Revenues | 250000 | 500000 | 1500000 | 2000000 | 3000000 | ||
| CASH FLOW REQUIRED (REVENUES-COSTS) | -295000 | 20000 | 620000 | 870000 | 1350000 | ||
| TOTAL CAPITAL required for five years | 295.000 | ||||||
SECTION 2: QUALITATIVE FACTORS
| 4 | Dimension of identified target groups |
| The dimension of markets is 8000 small and mid size cities from 20.000 to 1000.000 habitants’ cities in Europe Asia and Africa. The promotion requires the strategic partnership with a global context consulting organization, which will be used as the promotion channel. | |
| 6 | Evaluation of financial Risks for R&D result |
| In the emerging digital service market time to market is the most important factor of success. What is opportunity today in short time might not be anymore. Competitors are planning to enter into the market rapidly. So the competitive advantage of a ready low cost platform might not exist and over passed by competitive products.
Another risk is technological de valorization of the product due to new technologies and advanced in the internet field. |
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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)
| 1. European Funding
Define relevance of the product with the following potential funding sources and comment |
| 7th programme framework – Smart cities and future internet research area, capacities, research projects and energy projects
Interreg programmes for smart city networks |
| 2 National Funding |
| New development law that could fund the development cost for innovative actions in case of joint venture with private organization
Digital conversion and ESPA |
| 3 Private funding |
| A joint venture is required with private research organization that will finance the development and marketing cost of 295.000 required under the cash flow plan |
| 4 Other |
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)… |
| The creation of spin-off is the most suitable instrument for financing the cost of 295.000 in the form of a joint venture. Additional funding could be received to finance research and development and pilot application of the platform. |
Decision of evaluation (Please tick as appropriate)
| x | The R&D has a high potential of exploitation |
| The R&D result needs minor revisions | |
| The R&D result needs moderate revisions | |
| The R&D result needs major revisions | |
| The R&D result has no potential of exploitation |
Sotiris Zygiaris
