Commercialisation Report

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A report on how to commercial

A report on how to commercial

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  • 1. EF 571 – Innovation & High Technology EntrepreneurshipMulti-modal SurveillanceTechnologiesCommercialization PlanGroup 203/05/2012
  • 2. Project Title: Commercialisation Plan for Multi Modal Sensor technologiesModule Code: EF 571 - Innovation and High Technology EntrepreneurshipLecturer: Dr. Teresa HoganSubmission Date: 03/05/2012Declaration:We the undersigned declare that the project material, which we now submit, is ourown work. Any assistance received by way of borrowing from the work of others hasbeen cited and acknowledged within the work. We make this declaration in theknowledge that a breach of the rules pertaining to project submission may carryserious consequences.We are aware that the project will not be accepted unless this form has been handedin along with the project.Name: John F. Kennedy Student No: 11210619 Signed:_________________Name: Thomas Crean Student No: 11210663 Signed: _________________Name: James Dellinger Student No: 11210889 Signed: _________________Name: Daniel McMahon Student No: 57341865 Signed: _________________Name: David Luttrell Student No: 58405778 Signed: _________________ 2
  • 3. ContentsContents .........................................................................................................................3Product/Service Concept................................................................................................5 CLARITY: Centre for Sensor Web Technologies ....................................................5 History of Video Surveillance....................................................................................5 The Product................................................................................................................5 Use of Multi-modal Technologies..............................................................................6 Application Areas.......................................................................................................7 Security...................................................................................................................7 Defence...................................................................................................................8 Social and Sports Science......................................................................................8Technology/Operations Plan..........................................................................................8 Benefits of this Technology.......................................................................................8 Current trends, future directions, and competing technologies................................10 Technological Risk Assessment...............................................................................14Market Strategy............................................................................................................16 Market Segmentation...............................................................................................16......................................................................................................................................17 Market size & Trends...............................................................................................17 European Market......................................................................................................18 American Market......................................................................................................18 Positioning of Multimodal surveillance technologies..............................................19 Pricing of Multimodal Surveillance technologies....................................................20 Commercialisation Strategy: Spin off......................................................................20Sales Plan.....................................................................................................................21 Innovation partnership..............................................................................................21Industry Analysis..........................................................................................................22 Threat of New Entrants............................................................................................23 Threat of Substitutes.................................................................................................24 Bargaining Power of Suppliers................................................................................24 Bargaining Power of Buyers....................................................................................25 Competitive Rivalry.................................................................................................25 Environmental Analysis...........................................................................................26 PEST analysis...........................................................................................................26 Political.................................................................................................................26 Economic..............................................................................................................27 Social....................................................................................................................27 3
  • 4. Technological.......................................................................................................27Research & Development Analysis..............................................................................28 Key Researchers.......................................................................................................28 Publications..............................................................................................................28 Assessment...............................................................................................................29 Equipment................................................................................................................29 Labour......................................................................................................................29 IP Protection.............................................................................................................30 Commercialisation...................................................................................................30References....................................................................................................................31 Surveys.....................................................................................................................31 Books........................................................................................................................31 Web Pages................................................................................................................31 4
  • 5. Product/Service ConceptCLARITY: Centre for Sensor Web TechnologiesThe CLARITY centre is a research centre that is focused on two particular researchareas – Adaptive Sensing and Information Discovery. It was set up in April 2008. Itsmain office is located in University College Dublin (UCD), but has offices in DublinCity University (DCU) and Tyndall National Institute.The main theme behind the work that CLARITY carries out is ‘bringing informationto life’, and requires that large volumes of sensed information, which consists ofphysical and digital data, are analysed for use in information services. The centre isfocused on providing new ways to monitor health, support ageing populations, takeadvantage of digital media, and improve the quality of our environment (CLARITY).History of Video SurveillanceThe word ‘surveillance’ is a French term, which means to “watch over”. The conceptwas created to assist those involved with security in preventing crime. The idea wasthat areas could be monitored from afar, rather than having a guard on hand to patroleach individual territory. This helped to reduce the amount of guards on duty. It alsoaccounted for any events that may have been missed by security, as the event willhave been recorded so it can be replayed at a later stage. The use of security systemshas grown through the world in recent years. In London in 1960, there were twosecurity cameras on Trafalgar Square. In 2002, there were over 4.2 million securitycameras in the UK, which worked out at nearly one camera for every 14 people.Today, an effective surveillance system is a necessity for any large organisations(Kuklyte, J. 2010).The ProductWhen the word surveillance is heard, people automatically think of video surveillanceand the CCTV systems that they see in place in those large organisations such asairports, shopping centres, and offices. However, surveillance is not necessarilylimited to just video and image, and if it were to be limited to those two mediums, itspotential in the fields of security and analysis would be severely limited. There aremany different kinds of surveillance, such as sound, heat, movement, anything elsethat can be associated with human behaviour. The Multi-modal surveillance system 5
  • 6. aims to include these other forms of detection in order to improve the overallefficiency and effectiveness video surveillance.The system will provide industries, where security is paramount to the service theyprovide, with the ability to recognise any disturbances or threats that occur that wouldhave been missed by video surveillance, as it will be able to recognise many differentkind of disturbances and not just visual disturbances. Typically, security camerasrequire human interaction to monitor the activity that is being recorded in order torecognise any disturbances, where as this system will be able to alarm thoseresponsible for dealing with events, without any need for manned supervision. It isunique in its approach, as it will be able to adapt to the environment it is in and learnabout the events that usually occur, which will in turn allow it to react to events thatare out of the ordinary, such as movement, noise, speed of movement, particularactions, or number of people etc. The type of events that it will recognise as abnormalwill depend on the environment it is in and the kind of activity that usually takes placewithin that environment.The multi-modal surveillance system can be used in conjunction with many differentsensor types, although an audio signal is the primary type of sensor that it is designedto work with. If an organisation were to install it, it would not require any major workas it could be installed to work simultaneously with any existing surveillance systems(McDonnell, E. 2011).Use of Multi-modal TechnologiesThe use of multimodal technologies will allow the system to analyse the environmentfrom different points of view. Infrared can be used to help the system perform duringthe night, or during periods of the day when there are low levels of daylight. It canalso be used to detect movement, which would in turn trigger the cameras to beginrecording the actions of whatever has been detected. One study showed how it ispossible to differentiate the movements of particular entities. This meant they coulddecipher between a door closing and person moving for example (Pratiet. Al. 2005).Using these techniques, it is possible to differentiate between normal activity such asthe sound of footsteps, and abnormal activity such as somebody running or aconfrontation. Figure 1.0, below, shows how different events can be recorded. 6
  • 7. Sound signature examples (Jogile Kuklyte Transfer Report, 2010)Audio is another sensor that can be used to assist the surveillance process. The audiosensors can be used to detect activity and determine sophisticated pieces ofinformation such as the direction of an entity or object. The audio sensors can be setto work on a threshold, which determines the level of sensitivity they work at. Duringa quiet period where there is not much activity such as the night, the threshold islowered. This heightens the sensitivity so the system will pick up on lower sounds.During the day, when there may be more activity and therefore more sound in theenvironment, the threshold could be raised. The audio sensors can detect an activityand direct the video cameras to the event so it can be recorded (Kuklyte, J. 2010). It ispossible to install multiple audio sensors to connect with one camera. This will help todetermine the direction on which the disturbance is occurring.Application AreasSecurityThe multi-modal surveillance system will be able to improve the efficiency of most oftoday’s surveillance systems. Currently it is accepted by management that they willneed to employ a security guard or somebody else to monitor what is happeningaround their premises. This individual will continuously look at the images returnedby the CCTV cameras with intention of spotting any unusual events that may occur.This approach is very inefficient when you consider that the multi-modal surveillancesystem will monitor the images and alert security of any unusual events automaticallywithout the need for much human interaction. 7
  • 8. DefenceThe technology can be used to monitor property and the perimeter of landmasses. Anexample of where the system would be ideal is in restricted areas such as airfields andairports. During our research we met with officials working in security in the DublinAirport Authority (DAA). The idea of the meeting was to discuss how the technologywould be implemented, and to learn more about what would be required of the systemin order for it to be used in an area that requires such high measures of security. Theyagreed that the concept was a good one and the technology could definitely beemployed in any major airports or high security establishments.Social and Sports ScienceThe use of multi-modal surveillance technologies could also help to fast track ineliminating queue formation, a process improvement tool. It would be possible to usethe technology to analyse the performance and movement of athletes. Video datacould be used along with other inputs such as heart rate, breathing, heat etc(McDonnell, E. 2011).Technology/Operations PlanBenefits of this TechnologyThere are a number of benefits that this technology will bring with it. Here are someof the most notable benefits that can be expected. • The ability to detect events based on multiple inputs allows for a more sensitive form of surveillance. There are events that the multi modal surveillance system would be able to detect, that would go undetected on a uni-modal surveillance system, such as the typical CCTV system that would be in place in most establishments. • Recording audio is very cost effective and a useful addition to any surveillance system. Quite often video footage of an event can be hard to interpret, especially if there is no sound present to compliment the images and events that are being displayed on the screen. • The system can be adapted to work with any type of sensor. All that is required is that the signal is continuous and digitised so it can be interpreted correctly. The more sensors that are employed the better the results will be due to the fact that an event will become detectable in more ways. 8
  • 9. • The technology has been tested for use in indoor environments, but is still being tested for use in an outdoor environment. The idea behind the technology is that it can be used either indoor or outdoor to provide a maximum level of security (McDonnell, E. 2011)The underlying technologies driving the business of the use of multimodaltechnologies will allow the system to analyse the environment from different points ofview.Infrared can be used to help the system perform during the night, or during periods ofthe day when there are low levels of daylight. It can also be used to detect movement,which would in turn trigger the cameras to begin recording the actions of whateverhas been detected. Studies show it is possible to differentiate the movements ofparticular entities. This meant they could decipher between a door closing and personmoving for example (Pratiet. Al. 2005). Using these techniques, it is possible todifferentiate between normal activity such as the sound of footsteps, and abnormalactivity such as somebody running, screaming, or a physical confrontation.Audio is another sensor form that could be used to assist the event driven multi-modalsurveillance process. The audio sensors can be used to detect activity and determinesophisticated pieces of information such as the direction of an entity or object. Theaudio sensors can be set to work on a threshold, which determines the level ofsensitivity they work within.(Joglie Kuklyte Transfer Report, 2010) 9
  • 10. During a quiet period where there is not much activity such as the night, the thresholdis lowered when enough data has been collected for flagging of normal vs. atypicalactivities in a given area. This heightens the sensitivity so the system will pick up onlower sounds. During the day, when there may be more activity and therefore moresound in the environment, the threshold could be raised substantially to take this intoaccount. The audio sensors can detect an activity and direct the video cameras to theevent so it can be recorded (Kuklyte, J. 2010). It is possible to install multiple audiosensors to connect with one camera. This will help to determine the direction onwhich the disturbance is occurring.Current trends, future directions, and competing technologiesMoving the product to the future we need to keep an eye for developments in sensorytech as prices decline for what is perceived as expensive solutions in today’s market.Trying and integrate these into the products future development. The softwareintegration of event driven multimodal sensor CCTV into larger Enterprise ResourcePlanning (ERP) suites many organisations depend upon.Traditionally Networked Surveillance Analysis and Response FlowThe future networked analysis systems and responses will include in links to ERPsystems and out link push to IP (cell phones, tablets and offsite computers) for event,monitoring by professionals and principles when time sensitive decisions may need tobe made. Cloud storage systems will also aid the various needs for large onsitestorage as surveillance over IP grows as a sector of the market. 10
  • 11. An adaptive threshold for the difference between a model of usual scenes and the new data can be used, which allows the system to adapt to the amount of activity in the scenes. If for example, the busy street is being monitored, then the threshold for events automatically becomes higher to avoid too many false alarms. On the other hand, if the same area is monitored during the night, the threshold will gradually adapt to the evening calmness and will automatically lower during this period. Classification step is using higher-level information to group similar events and to label them. Assigning labels to semantic events has to be done manually by the user. Classification can be done for usual and unusual scenes separately. Metadata with automatically generated descriptions of the scenes and events can be saved for easier retrieval of the past events. (Jogile Kuklyte Transfer Report, 2010)Why use the addition of sound monitoring data anyway? Primarily it is better at eventdetection for certain kinds of interactions. (Uzkent, 2011) Also, audio is helpful,because of its low data storage needs, in comparison to video and its ability to addcontext to an otherwise moving picture. Long-term blue sky, thinking a securitysystem would probably incorporation the monitors five senses and have thresholdlayered event detection from many locations with deep computer learned thresholdsbuilt in for various human interventions. However, we are far from this point today. 11
  • 12. First, let’s discuss a bit where we are. One problem with video only solutions is due tothe limited resolution of most mid-market mid-range cameras. Having near-life-likeresolution and zooming capabilities would make the job easier, but in addition to thiscurrently unfeasible, it would exponentially increase the volume and size ofcomputations needed and data storage requirements. In the end it would typically betoo expensive for any practical use to roll out for a live implementation.However, multiple cameras integrated solutions with a wireless sensor networkmounting some PIR (Passive Infrared) or even active IR are the more commonsystems integrating other sensor information. These are not considered expensiveimplementations (Pratiet. Al. 2005).Other than this type of solution various enhancements to video via new software, orlimited use of higher pixel density cameras allows more use of partial imagesequences for more details observations. Many projects around improving visualsurveillance have existed in recent years.(Jogile Kuklyte Transfer Report, 2010)We have also seen that there are a number of researchers working on similar projectsin different universities. Listed below are examples of these projects and these are toname but a few. 12
  • 13. • Multimodal Surveillance: Sensors, Algorithms and Systems, Zhigang Zhu and Thomas S. Huang • Study of Robust and Intelligent Surveillance in Visible and Multimodal Framework, Praveen Kumar, Ankush Mittal and Padam Kumar • An Integrated Multi-Modal Sensor Network for Video Surveillance Andrea Prati, Roberto Vezzani, Luca Benini, Elisabetta Farella, and Piero Zappi • Adaptive Fusion of Multimodal Surveillance Image Sequences in Visual Sensor Networks, Dejan Drajic, Nedeljko CvejicAudio monitoring technology is evolving in a different way that acknowledges ourchanged mobile lifestyles. These often have to do with SIM hardware or quietersoftware solutions upon handsets to listen to private conversations (allibaba.com,2012).This market is largely being driven by the intelligence community and the (war onterror, Asian internal security services etc.) However, the changes in parabolic audiosurveillance are keeping the useful to a lesser degree than the old spy movies maysuggest.Sound integration and the fusion of that data with visual information is the uniquefeature of our product concept. However, exactly how and where the sound isintegrated matters much to the value outcomes of the application implementation.Where are the microphones located? What is the listening distance and value added atthe distance being observed. However, audio and (audio/video data fusion) is stillincredibly valuable especially in closed-in environments and limited lightenvironments, for example at night.Staying current with trends in the industry will be important moving forward. Somethat have been mentioned or encountered would be: IP push to mobile smartphonesand tablets monitoring for guards and principles; system integration with corporate 13
  • 14. ERPs; surveillance system information gathering nodes being made more mobile i.e.(conceptual mono-rail’s for large area coverage by single device like airportparameter) cellular, wifi, and UAV based nodes (smartphones, and etc being able topush into the surveillance system); cloud-based data management solutions to loweron-site implementation costs; improved and cheaper facial recognition softwareintegration; cheaper chemical sensor technologies to detect human activities; andsoftware solutions like Automated Warning and Response Engine (AWARE) fromAbeo Technical Services being implemented in at risk public spaces in New York athigh costs becoming more affordable.Technological Risk AssessmentThe primary risk is that the current system does not work or function to thespecifications identified early on as needed in monitoring both indoor and outdoorspaces. This is the primary limitation of our product concept is the lack of conclusivedata that it (along with the integrated data fusion software) functions to projectspecification.(Jogile Kuklyte Transfer Report)The detection of “Event Outliers,” threshold driven software not a usual concept,however the unique context that fusing video data with audio adds remains unique toour project. During the detection phase, the algorithm classifies outliers while updating the model. The model is refined over time so that slow seasonal changes or infrastructural changes would not disrupt the process. Adaptive Threshold Outliers are detected when the minimum distance between a new element and 14
  • 15. the ones representing the model clusters is bigger than the set threshold. Thethreshold is calculated from the accumulated shortest distance histogram.(Jogile Kuklyte Transfer Report, 2010)The histogram is updated with every new element by adding the shortestdistance from this element to the model clusters. After the training phase, thehistogram S holds values of the shortest distances dmin between the model Mand all the elements from the past. This histogram continues to be updatedduring the detection phase. Threshold this calculated as follows: histogram ofshortest distances S is sorted in the ascending order. (Jogile Kuklyte. TransferReport, 2010)The shortest distance between the element x and the clusters in the model iscompared to the value Palarm in the histogram. Palarm is set at thebeginning of the algorithm and remains constant through out. In theexperiments, Palarm was set to 0.01 as it is suggested in [13]. If the shortestdistance dmin between the model M and the new element is above thethreshold, then the new element is marked as an outlier. Otherwise the newelement x is added to the model M and the STEP 2 from the section isexecuted. (Jogile Kuklyte Transfer Report, 2010)Figure: time-space blocks - audio example. The time interval of the audiosignal of size a is transformed into the feature vector. The overlap betweenfeature vectors is of the size b. (Jogile Kuklyte Transfer Report, 2010) 15
  • 16. The audio–visual data fusion software can be accomplished in different levels.However, the data fusion is where the magic happens for this project, this is where thegreatest value added can be created quickest given that audio surveillance is notcommon and integrated audio-visual surveillance is currently not done other than ourconcept. This smart threshold event driven multi-modal process and software is wherethe largest amount of intellectual property value is currently vested. Anyone coulddecide to add audio options into video surveillance services tomorrow; however, thetesting and teasing out of useful events from a mass of data via threshold algorhitmicsort is difficult as we have learned. From a buyers perspective buying or lisencing thiscomponent would be more cost effective than redoing all of the research undertakenin development of this project.Market StrategyMarket Segmentation Looking at the Irish Market as a whole we can see that the private security industry generated €1.2 billion in revenues at the end of 2010. (See left) One may think a slight percentage of this would be a good result to achieve but if we take Europe as a whole we can see that the private security market generated €35 billion in 2010 with an average market growth of 13.30% year on year. (See Below) (http://www.coess.org/ 2012) 16
  • 17. 2008 European monitoring statistics from Monitoring and Alarm ReceivingCentresSerial 1 - Number of private monitoring centres that receive intruder alarmconnectionsSerial 2 - Number of private monitoring centre connectionsSerial 3 - Number of private monitoring centre intrusion connectionsSerial 4 - Number of alerts received by the private monitoring centresSerial 5 - Number of activations passed to the police from private monitoring centresSerial 6 - Does a sanction exist for a false alarm?Serial 7 - Number of fire connectionsSerial 8 - Number of technical connectionsSerial 9 - Number of social alarm connectionsSerial 10 - Number of vehicle tracking and tracing connectionsSerial 11 - Number of e-guarding connectionsSerial 12 - Number of detector-activated CCTV systemThe above diagram is merely to illustrate how the Irish market compares to theEuropean market as a whole in terms of the above mentioned factors. Now that wehave a better sense of what the private security market consists of we can determineour best approach to market. Not to forget out closest neighbours who in 2010 had a private security industry with generated €3.97 billion and with a population of over 62 million this means more liabilities to monitor and a perfect market to establish a new multi-modal technology.Market size & TrendsThere are two distinct markets we must analyse, the US and the European market.Multimodal sensor technology is relatively new and the closest establishments tousing these types of technologies are high liability establishments, airports forexample. The algorithm which Jogile has designed is unique to all markets and it’s the 17
  • 18. functionality of it that will be its USP. As I have stated previously the private securitymarket was worth an estimated €35 billion in 2010. As of 2007 the security industrywas worth at least an estimated $18 Billion, $10 billion for the security industry and8.2 for integrators, installers and software installers. ABI research projects significantgrowth in surveillance software year on year by 2013 (Dempsey, 2010). Withinindustrial environments (factories and manufacturing plants) the use of multimodalsensors could be used for safeguarding inventory and people for injury or theft.European MarketAccording to www.coess.org the private security market was worth an estimated €35billion in 2010 and Ireland was worth only €1.2 billion of that. The annual growth ofthe market in 2010 was 13.30% and we can assume that this has slightly increasedthus increasing the need for more advanced technologies.American Market As one can see from the survey to the left these are the annual revenues from companies who tool part in the mega trend survey 2011. What we can establish from this is that the US industry is worth a much larger proportion than the European market and in that sense tendering to enter the US market could be substantially worth while. Not surprisingly Video Surveillance is one of the most important products according to members in the electronic security association. Source: ESA’s mega trends with the US. 18
  • 19. As per the diagram to the left, video surveillance is looking at very strong growth over the next two years as per projected trends for the participant’s answers. Source: ESA’s mega trends with the US. Blue – Low Green - Medium Orange - Strict Pink - Very Strict **Level of Legislation per European country (Coess, 2012)In the Diagram above once can see each European county colour coded representingthe level of legislation each county are at in comparison to other countries. From thiswe can assume that the use of multimodal technologies may be more sought after insome countries as opposed to other counties.Positioning of Multimodal surveillance technologies.This product of multimodal surveillance sensor technologies is targeted for a diverserange of industries, some of which include: • Public and private spaces (including streets , warehouses and car parks) – where once person can monitor a range of areas as opposed to a small team constantly scanning each environment whilst trying to maintain focus. 19
  • 20. • Defence forces – the use of these technologies could advance border control areas as well as parameter control areas. • Process improvement - areas such as airports, motor tax offices and supermarkets where lengthy queues can form. This in turn can flag when a busy area has form and senior authorities can determine what may be the cause of such events. • Correctional facilities – the use of these technologies will learn these environments and in turn detect the unordinary for the ordinary through the use of a combination of sensors.According to feedback which we received from Dublin Airport Authority on the useof multimodal surveillance technologies, there is a market for these technologies intheir environment of use but, they feel that the use of sound and video is limited initself. The use of other sensory technologies would be far more sought after.Pricing of Multimodal Surveillance technologiesBased on the diverse range of industries which could benefit from multimodaltechnologies we felt the best fit practice in order to roll out this type of technologywould be licensing. We felt that getting into the hardware industry was unnecessaryand the more simplistic approach, yet beneficial was to licence the technologies toplayers already in this industry.In regards to the pricing of the licensing, we can’t put any one individual figure onthis as the licensing costs would range depending on industry, size application ect …Each application is unique and therefore it’s not a one size fits all model.Commercialisation Strategy: Spin offIn Regards to the commercialisation strategy we intend to use for our products, weconsider licencing the software more appropriate than other methods such as a spinoff i.e. - manufacturing the hardware, partnership or a joint venture. Although onemajor concern needs to be addressed in order for the technology to be licensed andthis is the IP protection and this will be the technologies only safe guard. As Patentingis expensive we recommend seeking venture capital funding, having the option to buystakes back before the technologies peak. A concern arising from this is the copying 20
  • 21. of this technology in another country. China for example where in certain areastechnology production is a major player in industry and the copying of othertechnologies can be quick and cheap. Therefore it is recommended to act rapidly onthis. We believe the initial capital for this business will be relatively low with more ofa focus of research and development.Sales PlanInnovation partnershipWe feel that an innovation partnership may be another option for thecommercialization of this product. We feel that if an Irish based company seenpotential global success for this product and could help in its establishment it may befar easier than licensing alone. We’re also aware that Enterprise Ireland provides agrant of up to 80% towards the costs of the research product and this could potentiallyfund future research and development. High potential start-ups can avail of up to€100,000 and we feel that our client’s product is a high potential start up.We also felt that Axis Communications would be a suitable partner if an innovationpartnership was to be formed. The combined expertise alongside their Europeanestablishment is a recipe for success. Axis Communication are market and technologyleaders in monitoring over IP surveillance solutions. Some other potential innovationpartnership candidates could include Mobitix, Indigo Vision. Both parties are leadersin end to end IP video security solutions and are leaders of digital security services.There are all European companies.Another route would be to sell our leap-frogging technology to one of the leaders ofthe analogue monitoring solutions struggling to adapt to the, “digital surveillance overIP solutions,” being provided by the previously mentioned leaders in the field.Potential partnerships with other firms like Pelco, Siemens Security, or BoschSecurity may given their market strength in the “analogue market” and servicing itand their deep pockets attempting to adapt to the digital revolution in securitysystems. 21
  • 22. American players to consider would be the division of the American firm UTC doingbusiness as Interlogix, which purchased GE Security a number of years back and is alarge player, but lest so in Europe. Their strength is derived from strong integrationwith lift monitoring systems that are built and managed by there UTC sibling, Otis.Audio may be very useful in the lift environment, so Otis could be approached aswell. Other possible American players in the space that may be interested inpartnering or lisencing may be: Telguard; Trieo/Northern Video; ADI; Altronix; andSecurity America.Lastly open up a Jane’s Defence Weekly and the contract procurement files of nation-states and look at talking to defence firms like BEA Systems, Boeing, Thales, andSaab Group, which integrated border control and management solutions to sovereignstates and local governments. As some Schengen compliant EU states make noiseabout some border controls possibly being re-introduced these new solutions maylikely be more technology driven than human staff driven solutions.Finally, emerging markets will increase their purchase of technologies and licences ofcutting edge concepts like audio visual surveillance fusion this will increasingly bepart of any company’s sales thoughts. China is rumoured to spend twice as much oninternal security than it does on national defence. This raises ethical questions forwestern companies, but it does drive the technology available in the marketplace.Other growth economies will continue to adapt more security products as new shinycorporate campuses invade India, Russia, Brazil, and etc.Industry AnalysisFrom analysing the surveillance industry we can obtain crucial information ondeciding whether or not multimodal surveillance technologies will be able to competein its niche segment of the surveillance and security market. The difference betweenthe different market pressures and forces may be a big factor in the sway for thedecision to commercialise the project or not. According to Michael Porter;“Understanding the competitive forces, and their underlying causes, reveals the rootsof an industry’s current profitability while providing a framework for anticipating andinfluencing competition (and profitability) over time.” (Porter, 08) 22
  • 23. This is why we believe it is a suitable model for analysing the surveillance industry asit will give a clear picture of the industry in terms of its profitability and competition.It will help us ponder how multi modal technologies will stand up against itscompetitors in the industry. It will also help shape a strategy for the technology if itwere to be commercialised.Fig 1 – Visualisation of the Porters five forces ModelSo in putting these forces into practice we must now analyse these areas to come upwith an overall theory on how the product could compete in the industry.Threat of New EntrantsNew entrants to the market space could effectively dent Multi-Modal surveillancetechnologies ability to become profitable in the industry by taking up some of thepotential market share. This could also result in potential profits being dented too. Inthe same regard barriers to entry could exist when existing players in the industryhave an advantage, such as economies of scale or regulatory protection. So how doesthis fare in the Surveillance industry? From what we have seen is that surveillance hasbeen based on the same concept since its inception and multimodal utilization forsensor event driven use of the technology would be a value add to the product.However, this aspect of the product is quite niche. In a saturated market, built up ofinfrastructure, software and security systems and in an ever growing technologicallandscape it would seem that the barriers to entry into the market are quite low. Thisreferring to suppliers with the relevant core competencies and who are adherent tostatutory legislation, which in our opinion and what we have seen from the meetingwith the DAA to be the main barriers to entry.Rating: High 23
  • 24. Threat of SubstitutesIn looking at the Irish market alone there are a number of well established companiesin the Irish market who provide surveillance systems. Taking from the DAA interviewwe have found that they chose to utilize systems provided by IBM and Niscayah forsurveillance and Oracle for event driven reporting onto their ERP. There are alsoseveral quite visible players in the market space such as Chubb and G4S who allprovide systems and solutions. The market is also fragmented into a number ofsmaller segments for smaller more niche providers. Even if you were to look up thesurveillance or CCTV page of the golden pages it would be quite apparent that thereis intense competition in the market space.Global companies such as those used by the DAA have expertise, support,infrastructure and economies of scale that this as a start-up could simply not competewith on a wide scale, this being on a cost or differentiation basis. Unless this productis piloted in the market space and comprehensive and adaptable versions of thesoftware are availed of then we believe competition would overwhelm the product.Rating: HighBargaining Power of SuppliersThe switching costs of altering products from a current system in use would be quitehigh, especially if supplying a new solution or a bespoke or tailored solution, one ofwhich we see being offered by this technology. However there would be a case foronce a contract is obtained for this service that the buyer would be locked in. Ifmultimodal surveillance technologies could be vertically integrated into the supplychain then this would be a good move as then the products offered would be intrinsicfactors for companies to purchase.We believe that due to regulatory constraints such as the Data protection act, as wellas a company’ s duty of care towards its stakeholders will on the price point but alsoimpact on the services that the product therefore must provide. Surveillance solutionsin general provide an impact on labour hours accounted for by reducing themsignificantly by being able to monitor wider areas of premises than traditional securitypersonnel only solutions. Suppliers when locked into a deal have a significant amountof control over the price point of goods and services offered, despite the fact that thereis intense competition in the industry. Looking at porters article again, security 24
  • 25. services offered the highest ROIC of 40% in the US between the period of 1992 and2006. Therefore it can be assumed that if successful the technology could demandsignificant profit from incumbent customers of the product. (Porter, 08)Rating: Medium to HighBargaining Power of BuyersNeedless to say when a company opts to buy surveillance or security product there isan intrinsic need for them inside of the business. This will therefore increase the priceof the product as there is a demand for security services. In areas of high stakeholdervalue surveillance can save a customer’s business quite a significant amount ofmoney also, in terms of claims, employee and customer theft. It may also savebusinesses money in terms of complying with statutory legislation, avoiding fineswould also be another attractive benefit for having a good security system in place.We believe that the customer due to their needs is willing to pay a premium on theproduct despite the fact that there is intense competition in the market space.According to Narayandas, “Customers also want the latest and best products and arewilling to pay premiums for them. Industries often ask vendors to reduce pricesbecause their products become commodities” (Narayandas, 05).This could be good for multimodal technologies as they provide a differentialadvantage over traditional means, while traditional products become “commodities”the new fresh outlook on the technology provided by multimodal systems couldbecome the premium edge in the market space.Rating: LowCompetitive RivalrySo how do these factors culminate in generating a competitive rivalry in thesurveillance market space? On the face of it competition does seem quite intense witha significant number of competitors and potential competitors in the marketplace.However, it goes without saying, as long as the potential commercialisation showsability to win contracts then we believe it could be commercially viable in theindustry, especially due to the high profitability seen in the US market space. If theproduct could be licensed as a vertically integrated solution, to a number ofmanufacturers or producers like Microsoft did with the Windows operating system, 25
  • 26. competition could potentially be bypassed. This is a possible commercial path for theproduct.Rating: Medium - HighEnvironmental AnalysisIn this section we plan to analyse the macro environment of which multi modalsurveillance technology would face pressures or forces from. We plan to do this in theindigenous Irish market space in order to get a better grasp of the initial environmentthe product would be entering or swaying the market in. When trying to enter anothermarket space we would state that it would be difficult to apply these points to it, asmarket and environmental pressures would be different in each sovereign territory.The benefits that this type of analysis could possibly bring to this product can be seenfrom the insights it could obtain into its environment. According to Kotter andSchlesinger 1991, “In analysing the macro environment it is important to identify thefactors that are likely to influence the organizations supply and demand levels and itscosts” (Kotter and Schlesinger, 1991)PEST analysisSo in analysing the macro environment in Ireland today in relation to multi modalsurveillance technology we have decided to use the pest framework. This will analysethe environment under four different areas. In terms of the political environment ofthe country, this basically consists of how the government and statutory bodiesspecifically intervenes in the areas of the technology, surveillance and otherapplicable sectors. Economic Pertains to the economic situation for businesses in thecountry at this current time. Social factors are any people factors that we deemrelevant to analysing the environment for our business. Technological are anyimprovements in technology that will help us sell our product.PoliticalIn the Irish market there would be two main technical statutory frameworks which thetechnology would have to comply with in order to be sold as a product to market; thefirst the communications act of 2011. This act outlines provisions for the retention ofdata in a company and the specific allowances it must include and provide as part ofits service provision. (Oireachtas, 2011) The company would also have to complywith the data protection (amendment) Act of 2003. This outlines the necessary legalcompliances needed for the processing and use of data inside an organisation. 26
  • 27. (Oireachtas, 2003) Also as part of a 2004 act, the company would have to adhere toprivate security standards if aimed toward a private market (PSA, 2004).The proposed business would also have to comply with mandatory businesslegislation for the setting up of a commercial enterprise. Acts like the Sale of Goodsand Supply of services act, Consumer Information act, Employment legislation, thecompanies act, taxation statutes and contract law should be taken into account insetting up the commercial aspects of the business. These are the main political andlegal issues that the company should be aware of when entering the Irish market.EconomicAccording to the ERSI the value of internationally traded goods and services in 2011in Ireland was equivalent to 190 per cent of GDP, which amounted to €156 billion forthe year. Compared to 2000, this represents an increase in the importance ofinternationally traded goods of 4.7 percentage points. Services are the largestcomponent of Irish output: in 2010 they accounted for 67 per cent of gross valueadded to the economy and computer products 17.2 per cent in 2009. (ERSI, 2012)These are encouraging figures which show that there is a positive trend in our forementioned industries for our product. If a product could even obtain a fraction of apercent in these industries it would mean it could become quite profitable. This alsowould mean that there is quite a considerable amount of resilient competition in themarket that FTT would have to put up with.SocialIreland was ranked 9th in the world on the ease of doing business rank. (World Bank,2012) As we have experienced the Irish workforce is well educated and well skilledemployees could be included in the project. Unemployment currently stands at 14.3%,so there are gaps for employing people, in this sector. (CSO, 2012) Howevertechnology companies have found it difficult to fill jobs in the sector. The GDP percapita of the nation is approximately $37,300, converting this into euro, would makethe wage rate around €28,400. This could mean quite a hefty wage rate in developingthe product in the Irish market comparing this to developing markets.TechnologicalAt this current time the Irish environment is showing quite a healthy climateconducive to the technology sector. As seen above nearly 20% of the balance of trade 27
  • 28. is deduced via computing related products. Incentives such as grants and job schemesare being ploughed back into the Irish Economy by the government. Also in terms ofa technological landscape, some of the big global players are setting up business onour island. As mentioned in the industry analysis IBM and Oracle have a presencehere. Cisco has recently announced jobs, as well as Apple. Google and Facebook havetheir EMEA headquarters based here in Ireland. There is a high broadband adoptionfor the general population with nearly 65% of the population having access to theservice according to the ITU (ITU. 2010).What does this mean for commercialising a product? There is a clear technologicallymotivated business landscape in Ireland. In terms of competition it may be deducedthat it may be difficult to persuade the best talent to work in the market space. Also itshows that there is intense competition in the market from global competition. Thismay inhibit our business starting out. However in taking this negative this couldpossibly mean that there could be a good opportunity to partner or licence our productinto the market space due to these big players. This could be one possible option ofdoing business by vertically aligning the product into the supply chain, as talkedabout before.Research & Development AnalysisKey ResearchersThe principle individual overseeing the development of this technology is Prof. NoelO’Connor, Principal Researcher at the Clarity Centre for Sensor Web Technologies atDublin City University. Dr. Edward McDonnell, Commercialisation Manager at theClarity Centre is overseeing potential commercialisation of the technology. JogileKuklyte, a Ph.D. student in the School of Computing at Dublin City University hasbeen working in the practical design and experimentation of the Multi-Modal systemto date. Her sole aim was solely to develop the technology and this target has nowbeen met.PublicationsThere is no evidence that a patent for such technology exists at present worldwide,though there are several other parties currently developing similar technologies. Asmentioned previously. Zhu and Huang have conducted research in the area of sensors, 28
  • 29. algorithms and systems associated with of Multimodal Surveillance. Kumar, Mittaland Kumar have conducted a study of Robust and Intelligent Surveillance in Visibleand Multimodal Framework. Finally Drajic and Cvejic have explored the ‘AdaptiveFusion of Multimodal Surveillance Image Sequences in Visual Sensor Networks.AssessmentThis technology start-up does not require significant investment in fixed assets suchas bulky machinery or equipment. Any major investment in such assets will be madeby the licensee. The business model is service-based and demand-pulled. The initialcapital is relatively small and so there is no need to worry too much about quantifyinga return on investment.It must be noted that satisfactory investment must be guaranteed to allow the researchand development process to reach the goals of the technology prior to companyregistration. This will be mainly spent on experiments and testing the technology inoutdoor environments.EquipmentThe researchers are currently using a studio containing equipment provided by theUniversity to carry out experiment and testing of the multi modal system indoors. At alater stage, the researchers may need additional space in order to carry out similarexperiments and testing in an outdoor environment. As an outdoor environment islikely to be substantially more dynamic, additional audio and visual equipment will berequired. As the product is to be licensed out, the potential licensee will be making allthe investment in infrastructure.LabourJogile Kuklyte, who was involved in the development of the technology, knows it bestand is most appropriate to be involved with assembly as well as on-going research,mainly in outdoor environments. Employees will be required to assist Jogile todevelop the technology in this area. They will need to be trained to familiarisethemselves and be brought ‘up-to-date’ with the operation of the technology.Marketing of the technology will be the other major function of the proposedcompany. A Marketing manager will be required to research and report on external 29
  • 30. opportunities, develop the marketing strategy and plan as well as managing thecustomer management relationship.Here are the proposed employees of the company: • CEO - The key researcher is the ideal selection as they are most familiar with the technology’s strengths, weaknesses and possible future development. • Marketing/sales Manager • Research Assistants (2)IP ProtectionWe believe that this technology has minimum prospects of securing patent protection,due to the complexity of the technology. It is simply a combination of audio andvisual sensors used together in an existing application environment. However,intellectual property is to be confirmed, after the company has been registered, byestablishing a brand closely associated with the multi modal technology in the mainareas of use, which should give it protection.CommercialisationFinally, we believe that the Multi-modal surveillance technology should becommercialised via means of licensing or an innovation partnership. The company isto start as a ‘spin off’ from Dublin City University to help get a flow of funding goingdirectly from the CLARITY Research Centre. The technology will be relying on itsbrand for intellectual property protection instead of a patent which it is believed thistechnology is unlikely to receive. 30
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