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M CITY



OAP REPORT
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




                                                                                                               2
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




                                                                                                                   3
Concept
Problemática que resuelve


□   Our focus is to face three of those problems




            Contamination and Pollution            Mobility   Traffic Jams




                                                                             4
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




                                                                                                              5
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

                                                                                                                                              6
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.
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.
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.
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
Survey Results

1. Do you have an smartphone?




2. Would you buy an app that will let you locate parking spots with your smartphone?
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?
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.

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Technology Entrepreneurship Mcity 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 2
  • 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 3
  • 4. Concept Problemática que resuelve □ Our focus is to face three of those problems Contamination and Pollution Mobility Traffic Jams 4
  • 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 5
  • 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 6
  • 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.