3. 1.1 OVERVIEW
- The traffic problem in the Philippines is
among the top 3 worst in southeast
asian countries.
- MMDA had already taken the step
towards contactless apprehension
policy
4. MMDA Metrobase
- Labor intensive
manual apprehension
and CCTV monitoring
is still present
- Increasing the number
of installed CCTVs ~
Increase required
human labor to
monitor
5. a comprehensive surveillance system
using video cameras with built-in
artificial intelligence to spot traffic
violations without human
supervision.
6. 1.2 THE PRODUCT
● AICAm
○ Edge Computing
○ Scene Understanding
○ H.265 encoding
○ Mesh Network Connection
○ Smart Power Management
8. 1.3 PRODUCT VALUE
- Tailored fit for the Philippine setting
- with edge computing there is less computational load on
the servers, and less data is transferred and stored
- easier and faster means of detecting traffic violators
- less manpower operating the cameras
- organized recording of events and evidence
9. 1.4 BUSINESS MODEL
- Combination of Business Models:
- Direct Selling of AICAm
- Cloud Service Subscription
- Consultation Services
11. 2.1 MARKET DEFINITION
● The global video surveillance system market was valued at
USD 34,962.3 million in 2017, and is expected to reach a
value of USD 82,615.3 million by 2023, CAGR of 15.41%
over the forecast period from 2018 to 2023 (Mordor
Intelligence, 2018).
12. 2.1.1 TARGET MARKET
● The company targets the
governing bodies of the 145 cities
in the Philippines, consisting of
Highly Urbanized Cities (HUC’s),
Independent Component Cities
(ICC’s), and Component Cities
(CC’s).
*Source: PSA ActiveStats
14. 2.3 MARKET RESEARCH METHODOLOGY
*Source: LTO Annual Report, 2017http://www.topten.ph/2014/09/15/top-10-best-hospitals-philippines/
15. 2.4 COMPETITOR PROFILE
1. Traffic Vision
Is a software Based solution that augments existing
cameras with real time traffic analysis
1. Hikvision
Is an and to end solutions company for security and
traffic monitoring with a wide array of sensors.
Recently they also integrated cloud computing,
deep learning and big data analytics into their
system
1. Fluidmesh
Is a wireless surveillance solutions company that
uses a proprietary mesh network connection
technology to interconnect surveillance devices and
allow seamless transmission of high quality video
and audio through their proprietary communication
16. 2.5 COMPETITIVE ADVANTAGES
● Features:
○ Edge Computing
■ Less data is needed to be transferred, data is
processed within the camera itself
○ Flexibility in communication protocol
■ Use of multiple wireless communication protocol
■ Cameras can be used by authority as access points
■ Upgrade to 5G is promised
○ Easy to install
■ Fast deployment, less installation costs
17. “We comprehend what you need
to apprehend”
improves apprehension of traffic violators
18. 2.6 MARKETING STRATEGY
● We directly communicate with LGU
● We offer free trial and demo
● We design with intuitive user experience
● We seek recommendation from word of mouth
24. 3.1 BUSINESS FEASIBILITY ANALYSIS
Table B-6. NIBT and Profitability Analysis
NET INCOME BEFORE TAX 2,588,200.00 1,377,921.76 1,929,187.46 4,819,082.02 10,750,193.98
PROFITABILITY ANALYSIS
Total Capital 7,000,000
No. of Operating Yrs 5
Cumulative NIBT 21,464,585.22
Break-Even Sales Quantity 186 based on Average Selling Price of Items using Year 1 data
Break-Even Sales Revenue 4,646,333.33 based on Average Selling Price of Items using Year 1 data
Gross Profit Margin (y-o-y) 60.00% 58.40% 58.66% 58.77% 58.80%
Payback Period (years) 1.63 19.6 months
Return On Investment (%) 207 41.3 % Average per Year
25. 3.1 BUSINESS FEASIBILITY ANALYSIS
Using the target sales, annual Gross Profit Margin is on average
58.93%, Break-Even sales quantity is 186 AICAm units, while
Break-even revenue is at Php 4,646,333.33. Furthermore,
considering a Php 7 million capital, the payback period for
TRAIPI.CO is 1.63 years or 19.6 months with a return on
investment (ROI) of 207% for five years (41.3% average per
year).
Looking into the worst case scenario for TRAIPI.CO by
considering fixed target sales annually of 128 AICAm units and a
zero target market growth, payback period is 4.36 years and ROI is
15% at minimum.
26. 3.1 BUSINESS FEASIBILITY ANALYSIS
Table B-7. Estimated Cost of AICAm Unit
Components Estimated Cost
CMOS Camera Sensor 1080p 30 FPS 800.00
RK3399 ARM Based SoC 5,700.00
Connectivity Module (4G/5G/WIFI) 500.00
Solar Panel + Battery 2,000.00
Casing 1,000.00
Total: 10,000.00
27. 3.1 BUSINESS FEASIBILITY ANALYSIS
Table B-8. Breakdown of Manpower Expenses
Manpower Expenses Year 1 Year 2 Year 3 Year 4 Year 5
Worker wage rate 550.00 550.00 550.00 550.00 550.00
Number of CCTV Units 256 134 138 276 555
Unit-to-Worker Ratio 64 64 64 64 64
Number of days actually
working 180 180 180 180 180
Total Labor Cost 396,000.00 206,910.00 213,028.20 426,327.71 859,233.92
28. 3.1 BUSINESS FEASIBILITY ANALYSIS
Table B-9. Breakdown of Facilities Expenses
Facilities Cost Year 1 Year 2 Year 3 Year 4 Year 5
Cloud Server Maintenance 1,228,800.00 2,613,411.84 4,067,316.26 6,919,225.02 12,619,233.29
Phone and Internet 24,000.00 24,960.00 25,796.16 26,588.10 27,385.75
Total 1,252,800.00 2,638,371.84 4,093,112.42 6,945,813.12 12,646,619.03
29. 3.2 CAPITALIZATION
CAPITAL*
Int Rate
%/yr
Year 1 Year 2 Year 3 Year 4 Year 5
Operating Yr? (Y=1/N=0) 1 1 1 1
Debt #1 - - - - - -
Debt #2 - - - - - -
Equity #1 2,000,000 - - - -
Equity #2 5,000,000 - - - -
TOTAL 7,000,000 - - - -
Table B-1. Capitalization Structure
32. References
Fluidmesh Networks. (2018). Wireless Video Security. Retrieved November 25, 2018, from https://www.fluidmesh.com/solutions/video-security/
Francisco, K. (2016, April 13). MMDA set to enforce no-contact apprehension policy on April 15. Retrieved November 23, 2018, from
https://www.rappler.com/nation/129267-mmda-no-contact-apprehension-policy-april-15
Hangzhou Hikvision Digital Technology. (2018). Intelligent Traffic Systems - Hikvision. Retrieved November 25, 2018, from
https://www.hikvision.com/en/Solutions/Traffic
Medina, M. (2018, May 28). DID YOU KNOW: The most common traffic violations. Retrieved November 23, 2018, from https://newsinfo.inquirer.net/994758/did-you-
know-the-most-common-traffic-violations
Metro Manila Development Authority. (2017, April 17). No Contact Traffic Apprehension Policy (11 Things You Need To Know). Retrieved November 23, 2018, from
http://www.mmda.gov.ph/index.php/20-faq/2040-no-contact-traffic-apprehension-policy-11-things-you-need-to-know
Mocon-Ciriaco, C. (2018, May 1). Traffic violations main cause of accidents in Makati. Retrieved November 23, 2018, from https://businessmirror.com.ph/traffic-
violations-main-cause-of-accidents-in-makati/
Mordor Intelligence. (2018, March). Video Surveillance System Market Size, Share - Segmented by Type (Software, Hardware, and Services), End-User Vertical
(Commercial, Infrastructure, Institutional, Industrial, Defense, and Residential), and Region - Growth, Trends, and Forecast (2018 - 2023). Retrieved November 25,
2018, from https://www.mordorintelligence.com/industry-reports/global-video-surveillance-market-industry
Omnibond Systems. (2018). About - TrafficVision. Retrieved November 25, 2018, from http://www.trafficvision.com/information/
Philippines Statistics Office. (2018, September 30). Philippine Statistics Authority | Republic of the Philippines. Retrieved December 4, 2018, from
https://psa.gov.ph/classification/psgc/downloads/SUMWEBPROV-SEPT2018-CODED-HUC-FINAL.pdf
Rappler.com (2017, November 30). Metro Manila has 3rd worst traffic in Southeast Asia – study. Retrieved November 23, 2018, from
https://www.rappler.com/business/190016-metro-manila-traffic-southeast-asia-study-bcg-uber
Sy, K. (2017, September 19). FAST FACTS: Most commonly violated traffic laws in Metro Manila. Retrieved November 23, 2018, from https://www.rappler.com/move-
ph/issues/road-safety/182027-most-violated-traffic-laws-mmda
UNTV. (2017, December 19). MMDA admits lacking of equipment, personnel in traffic law enforcement. Retrieved November 27, 2018, from
https://www.untvweb.com/news/mmda-admits-lack-of-equipment-traffic-personnel/
Editor's Notes
To study: inadequate road infrastructure, massive vehicular flow, lack of traffic discipline, and poor regulatory enforcement.
Violators would not be needed to be stopped on the road, which is one cause of traffic
Traffic Surveillance Camera built for edge computing. Dedicated neural network processing unit which allows it to be compatible for AI workloads. It uses h 265 encoding for video compression and efficiency in memory storage. It uses a mesh network connection for redundancy of connectivity and a smart power management for energy efficiency. The product annotates the data using high res images and
So the main selling point is that our product can make an easier and faster means of detecting traffic violators. Thats a huge reduction in manpower needed for the very repetitive task
Additional features from standard, additional requests, troubleshooting
The target markets are the 145 cities in the philippines which is divided into 3 legal classes: HUC, Independent Component Cities and Component Cities.
Assumptions:
(1) A conservative estimate of 1.5% increase in target market size is assumed reflecting the population growth of the Philippines.
(2) The cost of each CCTV units is estimated to be Php 10,000.00 which includes the cost of built-in hardware processing modules, solar powered-modules, connectivity modules and casing.
(3) The cost of cloud server maintenance per CCTV unit is estimated to be Php 800.00.
(4) The operating expenses is expected to increase as the number of CCTV units installed increase primarily due to monthly subscriptions.
