OAP report for Technology Entrepreneurship Venture

1. M CITY
OAP REPORT

2. Concept
Objetivo del Proyecto
□ The aim of the project is to create an interconnected city with a sensor network that will allow an improved
quality of life for the citizens through the intensive use of new technology
□ That will allow to:
Improve the efficiency in Improve the quality of Improve the competitiveness
managing and maintaining municipal services of the city
the city
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3. Concept
Problemática que resuelve
□ The principal problems to solve in a city are represented by:
Contamination and
Mobility Traffic Jams Public Safety Accessibility
Pollution
These problems compromise the economic and social prosperity of the
city
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4. Concept
Problemática que resuelve
□ Our focus is to face three of those problems
Contamination and Pollution Mobility Traffic Jams
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5. Concept
Descripción de la idea
□ The main idea of the project is to create and install a sensor network that can be modularly scaled with
new measurement systems
Intelligent parking Selective monitoring
Intelligent traffic Monitoring public Synchronization of
spaces of waste
management system lighting public transport
management system management
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6. Concept
Descripción de la idea
□ The first pilot on which this proposal is focused is the:
 Intelligent parking spaces management system
The citizen will know in real
time the congestion zones
where he is going to
The platform will analyze
The system will guide the
The sensors will monitor the data and create a real-
citizens to the nearest
the parking spaces time map of available
parking spot by GPS
parking spots
It will send the The controller will
It will send the
information to know what parking
information to the
citizens and space has been
Platform
controllers occupied
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7. Market Analysis
- The global market for wireless sensor networks has reach about 4.6 billion dollars
in 2011 from 500 million dollars that the market was in 2007 according to the ON
World potential market analysis
- The aim is to implement the solution in Spanish cities before scaling it to the rest of
the world
- Given the need for the existence of a critical mass of users in order to assess the
feasibility of the solution the potential market in Spain adheres according to the
National Institute of Statistics to 145 municipalities with a population over 50,000
inhabitants
- The pilot will be implemented in Madrid
- According to the INE data the number of vehicles in the city of Madrid is 1,990,585.

8. Market Analysis
- Spain in 2009 reached the figure of 9.709.023 smartphones according to the data
from the consulting firm Comscore. Which involves a penetration of 28% for those
mobiles.
- Extrapolating that data to Madrid would be reached a figure of 557,363 potential
buyers in the city of Madrid for mobility applications.

9. Cost Analysis
- The results are estimated as it follows:
- The investments made in the project will be offset by the sale of applications
for citizens.
- From a potential demand of 557.363 users, are estimated to be early adopters
about 60.000 users.
- With the diffusion and promotion of the product is expected to reach 40% of
the potential target within 2 years which would mean 222.945 user of the
application by that time.
- At an estimated price of 11€ per application with an annual renewable fee it
will generate profits within 3 years, offsetting the investment in 7 years.

10. Cost Analysis
Income 2012 2013 2014 2015 2016
Number of the users of the application 0 60000 220000 380000 420000
Price Application and maintenance fee 0 0 11 11 12
Net income 0 0 2420000 4180000 5040000
Costs 2011 2012 2013 2014 2015
Areas parameterization 268323 1325323 0 0 0
Wireless Sensor Network construction 123423 3235673 0 0 0
Wireless Sensor Network maintenance 0 0 163243 362344 675444
Comunications 1453 123543 323534 562344 623756
Salaries 1098385 982343 823323 762431 621473
Publicity 0 234536 672323 432213 214215
Total Costs 1491584 5901418 1982423 2119332 2134888
Results -1491584 -5901418 437577 2060668 2905112

11. Survey Results
1. Do you have an smartphone?
2. Would you buy an app that will let you locate parking spots with your smartphone?

12. Survey Results
3. If you answered yes. How much are you willing to pay for the app?
4. In case you did not want to bought it. Would you download it for free?

13. Customer Feedbak
Seeing how the survey went we can extrapolate some lessons.
1. Most people will download an app that will let them find a parking spot
2. But they are only willing to pay an amount of 0-2€ for it, and none of them were
willing to pay the 10€ we expected.
3. Even more, most of the people wanted the app free
This results disrupt our business model as it was based on an annual fee subscription
so the annual costs of the network could be covered.
- This leads to a different option:
- Instead of selling the app directly to the users, we could license the technology so
the information can be integrated in GPS or smartphone software manufactures.