CSC454 Business of Software

Transcription

CSC454Businessof Software
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"Our mission is to provide peace of mind to Canadian residential
property owners who are concerned about the security of their
investment by allowing them to monitor it remotely, anytime,
anywhere using a secureand intuitive web interface."
Presented to: Philip Stem
Date: Monday February23, 2004
Business
PlanDraft1.0
RemoteMonitoring
Technology
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TABLE OF CONTENTS
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1.0 ProductandService
2.0 Customers
3.0 Competition
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4.0 Other issues relatedto the competitivelandscape
5.0 BusinessModel
6.0
7.0
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4
8
ProductRoadmap
.16
20
24
Peopleand Expertise
8.0 Interviewwith SubjectMatterExperts
26
33
9.0 Appendices: Resumes
38
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RemoteMonitoring
Technology
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What we deliver
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In today's fast-pacedlifestyle, property ownersare frequentlyrequired to spend
extendedperiods of time awayfrom their property. Whether theseare owners of cottages,
summerhomes, or property managers,their demandinglifestyle often draws them away
from the placesthat they value. Even owners of a singleproperty who are required to take
frequent businesstrips often endurethis situation.While away,thesepeople maytend to
worry about the safetyand securityof their property. In responseto this, many property
ownershire additional personnel,or depend on neighborsor friends to keep an eye on
things for them during their absence.This can help to relieve someof their worries but does
not provide the superior senseof securitythat comes from seeingthings with their own eyes.
For this very reason,manyproperty owners make lengthyand inconvenienttrips simply to
make quick checkson their property. The scenarioof a cottageowner driVing 3 hours
simply to check the water level at their dock and make sure their boat is still tied up is a
familiar one to cottagers. But what if there was a solution? What if theseproperty owners
could somehowmonitor their property from distantplaces?
Remote Monitoring Technologiesprovides clientswith customizedsolutions that
meet their unique property monitoring needs.We assessthe specific needsof eachclient and
the property theywish to monitor, and provide a unique systemthat allows them to monitor
their property through a secureand easy-to-useweb interface.The customizedservicewe
provide allowsus to developan intimate understandingof eachcustomer'sneeds. When
cpmbined with the quality and securityof our software,RMT can truly deliver secureweb
/monitoring systemsthat are unmatchedin the industry. Thesesystemsallow property
owners to log into their custom monitoring website anywherein the world and view live
video, motion-sensortriggeredpictures,and temperature,pressure,and humidity readings
from their property. Customerscan setup event notification in a few easysteps. For
example,in a few easystepsa client can configure phone and email notification to several
individuals if the temperaturein their housedropped below a specifiedtemperature. With
the thermostat of their heating systemset at 18°C, they could configure the event
notification to be triggered if the temperatureof their housedropped significandy. Suchan
eventcould be causedby a heatingsystemfailure. Without RMT this eventwould go
unnoticed -after severaldaysin a Canadianwinter the temperaturewithin the house could
drop below freezing and causewater pipes to burst. The potential for extensiveproperty
damagein suchsituations, alongwith the higher stressof being awayfrom their property
and rising insurancepremiumsprovides consumerswith plenty of rationale for purchasing
an affordable Rl\ff package.
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CSC454Businessof Software:AssignmentD
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RemoteMonitoring
Technology
Business
PlanDraft1.0
What sets us apart from the competition
Remote Monitoring Technologiesprovides a secure
meansof checkingyour home's
vital signsthrough various monitoring devicesat one website,as though you were on site.
Other web monitoring solutions on the market mayprovide accessto inditidualmonitoring
devices,but without an emphasison securityand usability. At Remote Monitoring
technologieswe deliver superiormonitoring systems,customizedto your needsand running
on our high-performanceweb serversthat onlyyou can accesssecurely.
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Remote Monitoring Technologiesalso works with customersat their property to
addresstheir needsindividually. Each customeris unique. However, the competition
attemptsto provide a single"cookie cutter" solution for all their customers.Our balanced
apyroachkeepscostsdown by providing well-trained staff to quickly assessan entire site's
L1'leedswi~lQ..minute.s, while allowing the customerto sharein the excitementof installing
and configuring their new purchase. By also hosting our client sites,we can provide a low
monthly fee that allowsus to maintain and modify the sitesbasedon customerneeds.
Contrast this approachwith the competition's relianceon either customersto do all of the
work or hours billed to expensiveconsultants.Our flexibility keepsprices low enough to
undercut the competition and truly makesus the better deal,while also allowing us to
provide the right solution for eachcustomer.
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RemoteMonitoring
Technology
BusinessPlanDraft 1.0
There are a number of potential marketsfor Remote Monitoring Technologies.
Both consumersand small businessescan benefit from our product. For peoplewho own
properties and are concernedabout the safetyand securityof theseproperties, RMT can
provide peaceof mind.
Consumers
The primary consumermarket is composedof cottageownersand frequenttravelers.
Cottageowners are likely to be affluent adults betweenthe agesof 30 and 60. Travelerswill
be reasonablyaffluent adultsbetweenthe agesof 30 and 70. They may include retired
people who travel to warmer climatesfor the winter months. Membersof both thesegroups
are often awayfrom a residence,whether it be a cottageor their primary placeof residence,
and could thus benefit from beingable to monitor their property remotely. They can use
RMT to monitor their property for theft or damagesuchas broken pipes or a leakingroof.
Please note: For thepurposes ojCustolfler Market AnalYsis thefirst year ojRMT's operations,which
will be entirelY devotedto detrllopingour software and stmcturing our business,is known as try ear 0". Thus
'Jirstyear" is shortfor first year oj sales,IZ'hichwill actually be our second
year oj operaftons.
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In 1999,approximately7% of Canadianhouseholdsowned a cottagepropertyl. In
Ontario, this translatesto a market of about 300 000 cottages2.Potentially,all of these
peoplewould be interestedin RMf. SinceRMf will be transmitting video over the Internet,
the market will be restrictedto those with accessto high speedinternet. As Bell High Speed
Internet is availablein the Muskoka cottageareathis should not prove a restricting factor.
However, it is likely that many in this marketwill be reluctantto try RMT. Some cottage
owners,though, will be interestedin our web-monitoring solution, of which some of those
will make a purchase. If 5% of the cottageowners in our first year of businessin Ontario
find RMf attractive,RMT will probablybe ableto secureabout 3% of them as customers.
In the secondyear,thesefigures mayincreaseto 100/0interested,with 5% as customers.
This would result in about 9000 customersthe first yearand 15000 the secondyear. From
then on, the percentageof market shareshould increasesteadily.Growth in actualcustomers
1 http://www.rmb.ca/imageslResearch/2/1703.pdf
2 http://www.2ontariO.com/welcome/oomp_SO2.asp
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RemoteMonitoring
Technology
Business
PlanDraft1.0
is forecastedto grow from +3% in the third yearto 10%as the earlymajority phasesetsin,
after which growth rateswill normalizearound + 5% per annum.
Frequent Traveler Market Segment
Among travelers,there are about 800,000Canadianswho spendwinters awayfrom
their Ontario home.3 About 300,000of thesepeople are from Ontario. While many of
thesepeople maybe satisfiedby their current securityarrangements,some will be attracted V
by the web-monitoring. As such,we estimatethat about 5% will be interestedand 3% will
make a purchasein RMT's first year. By the secondyear,we feel that will increaseto 10%
interestedwith 5% as customers. In total, we estimatethat there will be about 9 000
consumercustomersthe first year and 15000 the secondyear.
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BecauseRMT will market solelyto consumersin its first few yearsof operation there
is little potential for alliances.A referral incentive program may be used,however, to
encouragesatisfiedcustomersto recommendnew clients.
Small Businesses, Property Managers
RMT will also be marketedtowards small businessessuchas retail stores,restaurants,
and coffee shops. RMT can be usedas a surveillancemethod by these clientsto monitor for
property damageor theft, both of which are significantconcernsfor small businesses.In
3 http://www.wlu.ca/-wwwpress/jrls/cjc/BackIssues/20.2/grenier.htlnl
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RemoteMonitoring
Technology
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Business
PlanDraft1.0
Toronto alone,there were 2939break-insper 100,000businessesin 20024. Storesmay
chooseto use the servicesas a measureto deter or evento prevent employeetheft. With a
camerainstalled in the store, it will be easyfor managersto ensurethat employeesare
working and are not stealinggoods. The clientscan have the camerasinstalled insteadthe
premisesand/or outside. While awayfrom the property, ownerscan view their business
and/ or property to assurethem that their investmentsare safe.
Property managersand warehousemanagersare anotherpotential market for RMT.
Property managersmayhave multiple propertiesto care{J't)andare likely be awayfrom these
properties for extendedperiods of time. RMT can help them monitor properties by
enabling them to accessinformation about the buildingswhile they are away. Property
managerscould set up an RMT systemto monitor plumbing and temperatureissuesthat
may affect their properties. With RMT, the property managercould be alerted anytime
there is a problem before tenantsneed be involved.
Warehousemanagerstend to have properties located in isolatedareas. They may
also store expensiveand valuableobjects in the warehousewhich needto be protected
RMT's notification serviceand website camerasystemcan help owners effectively monitor
their property without physicallyvisiting the property.
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In Ontario, there are approximately300,000small businesses5.Though some may
alreadyhave securitysystemswith which they are satisfied,the web monitoring serviceis
~ 5 ,000will be interestedin RMT shouldwe decideto
unique. We estimatethat abou
market to commercialfirms in r third to fifth year. Largerbusinessesare not part of our
target market sincewe expect t most large companieswill alreadyhave sophisticated
internal securitysystems.
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The purchasingpower held by thesesmall businessesis very high becauseof the
large number of securitycompaniesalreadycompeting to offer a similar serviceand with
which small businessesmay alreadyhave contracts. RMT will have to be competitive in
terms of price and innovative with our software ingenuityto obtain a foothold in this
market.
Salesand Marketing Plan
Sincewe estimatedIat the initial prototype will be availableafer 4 months in Year 0,
we will start marketingdIe product after about 3 mondIs. Initially, we will market dIrough
connections. That is, we will advertisedIe product through word of mouth to
acquaintances.As a small,new company,this type of marketingwill be more advantageous
dIan a public campaign. These customerswill be mostly cottageowner consumers. The
version of our product at dIis point will be a simplified betaversion. Full functionality will
not be availableso we will offer our servicesat a lower price.
O.pdf
5 http://www.tdcanadatIUstcom/smallbusiness/pdf/economics_70ct03.pdf
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RemoteMonitoring
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About 3-4 months laterwe plan to releasea new version of the product. At this
poin4 we will attempt to expand our client baseby a small advertisingcampaign. By this
time, we should have built a customerbasewho can testify to our merit. The increased
functionality will include motion detectorsand temperaturesensors. We will expandthe
marketto property managersand non-cottageproperty owners.
By about the start of Year 1, our product should be fully functional. We will release
the new product along with a more aggressivepublic advertisingcampaign. With complete
functionality and an emphasison greatserviceand support,we should achievea rating of
very satisfactoryor excellentwith most customers. The advertisingcampaignwill target
cottageowners,property managersand property owners.
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Year 0, Ql-2
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SecureWebsite- Beta version Acquaintances
who own
cottages
Year 0, Q3-4
Motion detection,alerts
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Acquaintanceswho are
either:
Cottage owners
Frequenttravellers,or
Property managers
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Year 1 to Year 4
Storageof videos
The samemarket as Year 0,
Q3-4 but expandedto
include the generalpublic.
As detennined by market
needsin Year 2
Possibleexpansionto
include commercialmarket.
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Year 3 to Year 5
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RemoteMonitoring
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.:. The websitewe provide will have a securelog-in. This gives the customerpeace-ofmind knowing that he/she is the only one looking at the house and controlling the
functions provided by our system.
.:. We will work with customersat their location to provide custom solutions basedon
their individual monitoring needs.
.:. We will modify sitesbasedon individual customer requestsand perform
maintenancelocally by hosting pages.
.:. We will provide languagesupport on our website for French, German, Simplified
Chineseand Traditional Chinese-support which most of our competitors lack.
.:. Databasesearchto recalland displayall previous eventswith video and audio, by
date and time. This ideais unique and will extend ADPRO's ideas. So far our other
competitors do not have any functionality that is equivalentto this.
.:. Video and/or photo snapshots(dependingon speedof Internet connection)will be
recorded and stored on the server'shard-drive. Sincewe store the data centrally it
lowers maintenanceand configuration costs.
.:. We are providing a web servicethat is very flexible. Only Smart Connect's digital
surveillancesite comescloseto this level of service. We will offer video archives that
Smart Connect lacksand allow continuousrecording to be archivedand compressed
~ a digital video format that can be seenremotely.
.:.J We will give more customizationthan our competitorsin setting up remote
I monitoring. More packageswill be availablesuch as the option to rent the cameras
or;o purchasethem. This will help us caterto the needsof customerswith different
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bfdgets for remote monitoring.
We will alsousewirelesstechnology(WIF!) in orderto servicethosecustomersin
someareaswherea cable/wiresetupmayposea problem.
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Their
RemoteMonitoring
Technology
Primary Competition
Background
Date/Experience
Revenue/Financial
Strenath
Apparent Market
Focus
Product Branding
Location
Strength of
Resources
ADPRO-is part of me Vision Fir(;& Sealrit'iilivision ofV1S1OO
SysteiriS.They
deliver developmentof sophisticateddigital ccrv securityand surveillance
solutions for me global market. VISions Systemsis me parent company willi meir
website at ~.vsl.com.au.
Vision Systemswas formed in 1984to acquireme ADPRO automatic
surveillancebusiness.
VisionSy~'
salesgenerntedrevenueof$130.6million for the yearof 20036.
Vision Systemshas a very large market share,mostly to largerbusinesses.They
are offering servicesin tl1reehigh technologymarkets including contract
enginee~ services,fir~_& securitv.and clinical di~ostics.
main-iJC()dUct
for branding is the ADPRO Video Central,which is a MultiSite Video SecurityManagerspecificallydesignedto monitor video and audio
from remote sites fitted with ADPRO digital recording and video transmission
sYStems.
-~Vision Systemsheadquartersare located in Australia. They also have three
branchesestablishedin Asia. Europe and North America. The penetration of
dleir products is worldwide.
One of meir resow:cestrengthsis meir reputable product line. They also have-had a long standingsince mey have been listed on me Australian Stock Exchange
since 1985.
They have acquiredtwo other businessesmconmct research and developmroi
and video rocessin technolo
ADPRO strategyis to provide digital surveillanceas a service. Their strengthlies
in the fact that they have been in the industry for over twentyyears. We can take
a defensivestrategyand learn the patterns they are taking in order to succeed.
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Strategic Alliances
I Key Strategic
Moves!
Ac uisitions
Assessment..
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Technology
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Secondary Competition
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/Date/Experience
Revenue/Financial
Strenoth
ApparentMarket
Focus
ProductBranding
D3Data provides secureand reliableonline video and securityservicesfor their
customersaddressiru!their needs for safetvand securitv.
D3Data has been-inbusinessfor about four years. They have had experiencein
dealingwith a variety of clients including Adanta Public Schools,Lincoln
County School District, US Navy SCORE, Dairy FreshCorp., and US Fish and
Wddlife.
D3Dara's current pr~uct called NETVM (NET Video Management) is
estimated to generate $2 million (US) in revenue for 2003.
D3Data targetstheir product to customers-whoare looking to monitor their
property remotelyand does not appearto have a specific customerniche.
D3Data
is able to estaWish its name through
its web presence, affiliate
program
promoting
their products, recognized parmerships with other companies, and
its appearance in articles and publications such as the Seatde Times.7 They are
associated with ISIO
improve
Location
Strength of
Resources
StrategicAlliances
KeyStrategicMoves/
Acquisitions
efficient
(www.intsi.org),
communication
an organization
to all stakeholders
industry.
D3Data is located in Mill Creek, Washington
locations.
that helps promote
and
related to the security
in the US and has no other
D3Data employsa number of support eng1neers,technology partnersand sales
personnel. D3Data belongsto omer associationsas well including me SIA
(www.siaonline.org),which provides education,research,and technical
standardsto its members.
D3Data currently has partnershipswith severalcamerasuppllers-mcludingAxis
Communicationswho are able to supply them with their network camerasand
video servers. They also have a partnershipwith PremiseSystems,Inc., which
develops software for controlling home appliancesincluding HV AC, and one
with EQUUS Computer Systems,Inc., a manufacturerofbuilt-to-order
computer systems.
D3Data will continue to developand maintain relationswith their integrators
and partnersand maximize their presencein the market by discussingccrv
and IP-basedcamerasin an upcoming exposition hosted by ISC (International
SecuritvConference)West.
Assessment.
7 http://seattietimes.nwsource.com/hbnl/businesstechnology/2001753235_d3dataOln.html
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CSC454Business
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Assignment
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RemoteMonitoring
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Background
Date/Experience
Revenue/Financial
StrenQth
ApparentMarket
Focus
ProductBranding
Location
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Smarthomeoffers homeownersand contractorsthe widest selection of
affordable home automation and remote control products oossible.
Smarthomewas founded in 1992and have sincesold 5,000products. In 1993,
Smarthomewas known asHome Automation Systemsand was partnered with a
companycalled HomeRun Automation in order to designand manufaCturean
intellie:entwhole-housecontroller.
Their revenueis generatedin their product lines such asSmartLinc, which was
the world's first two-way X-tO compatible dimmer switch.
Their market focus appearsto be individuals who wish to install homeautomationthemselvesto savemoney. One of their strengthsis the delivery of
new and innovative oroducts. However they~o not provide servi~es.
Smarthome'slines of produc-r;provide some of the latest technology. Since new
technologyis often expensive,they try to keep their product prices as low as
possible to strengthentheir market position. Most of their major projects
developedbetween2001 and 2002 when they bought new hardware designsand
so tooling began. In 2002, SmarthomeDesign releasedseveralnew products
suchas SwitchLinc. In 2003, they releasedBoosterLinc (patentpending), the
world's first 110~X-I0 signal booster for rem~!e surveillance.
Their
headquarters
are located in Irvine,
established w~Q_presence thev distribute
Calfomia
in die US. Due to their
world:'?[ide.
Strength of
Srnarthome's
Resources
they use. One specific product that they provide is the "cottage sitter" which
uses Sensaphone Technology to monitor and control temperature and water
strength of resources is due to the new innovative
tec1u1ologies
levels remotelv.
StrategicAlliances
KeyStrategic
Moves/
Acquisitions
Assessment
None matwe areawareof.
The strategythat Smarthomeis attempting is to continue to releasemore
innovative products for meir consumers. We have alreadyseenSmarthome
releasingBoosterLinc. It appearsmat dley will continue in this fashion by
providing n~w home automation systemsfor a wide range of demographics.
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Background
Axis' productsandsolutionsarefocusedon applicationssuchas security
surveillance,
remotemonitoringand documentman~t.
The companyis an
innovative~t
leaderin ~twork videoang print servers~~
Date/Experience
Axis has been in operation since 1984and has had an extensivehistory and
experiencein dIe market. Axis hasmany times been dIe firSt to introduce new
innovations suchas network camerasand video servers. They have consistendy
focusedon applying network connectivity solutions to a variety of applications
including r~ote monitoring ~d surveillance.
95% of salesare getIeratedoutside of Sweden. Axis generatesrevenue from its
networked video and print serversolutions. In its year-endreport Axis has
reported a more man 30% salesgrowdl in its largestproduct area,Networked
Video Solutions, in ham me EMEA and me US. Axis's net salesfor me January
to December 2003period amount to abo~!_$110million (Can.)~Axis continues to develop solutions for securenetWOrkcommunicationsgeared
towards smalland large businessesand entetprisesin a variety of industries. Axis
aims to strengilien its position asme market leaderin me market for networked
video and defend its position as me secondlargestplayer in me market for
networkedprinting~ervers.
Axis has a strong product brand recognizedglobally. Through continuing
product launchesfurth~!"brand recoQnitionc~stren~en its markt position
Axis's head office is located mLufld, Swedenoperattng globallywid1 offices in
Australia, China, France,Germany,Italy, japan, Korea, Ned1edands,Singapore,
Spain.Taiwan. United Kin~om and d1eUnited States.
AXlscontinues to provide or maintain leadingcore technologies through its Core
Technology Development group. Axis is informed of new and upcoming
technologiesthrough its relationshipswith universities, researchcentersand
forums.
Current alliancesinclude Bluetooth SpecialInterest Group and Microsoft
Universal Plug and Play Forum (UPnP). An alliancewith Bluetooth SIG would
be beneficial in order to use Bluetooth wireless teclmologyas part of their
product offering. An alliancewith Microsoft Universal Plug and Play Forum
allowsan easierway to interconnect their products with others through any type
of network architecture.
Axis has begunto invest in technologyand product developmentresulting in
severalproduct launches.They have also begunto focus on the development of
its saleschannelsi.e. new strategicdistribution contracts. Axis has recently
acquiredAttento a Danish software company providing software solutions for
;
Revenue/Financial
Strength
Apparent Market
Focus
ProductBranding
Location
Strength of
Resources
StrategicAlliances
~-~
Key Strategic
Moves/
Acquisitions
TP-based networked video applications.
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Technology
jus dficauon:
AXis
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Background
Date/Experience
Revenue/Financial
Strength
ApparentMarket
Focus
ProductBranding
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Name: Smart CoIUlect
Website: WWW.smartcoIUlect.net
Smart CoIUlectis a leaderin Internet video and communication. They offer web
hosting, serverco-location, video streaming,and supply a line of SmartCam web
cams used for Internet Surveillance. Smart CoIUlecthas a separatewebsite for
this serviceat www.digitalsurveillancecenter.com.
Smart Connecthas been around since about 1991. Its associationwith KTNVNews 13 "Inside Las Vegas" (ABC-TV affiliate), is strong becausethey used
their servicesto createone of the largestone-stop Internet destinations for
viewing live Las V~ web camerasJocatedat~.
yourinsidel~~.c°fI2r-c---,-The cost of a pan-tilt camerawim a built-in web server costs about $1,200to
around $3,5008.Their main consumeris K1NV-News 13 who usesaround
twentycameras. The cost of me serviceis around $2000 (per camera)x 20 =
$40,000which is smallcomparedto me revenuegeneratedby selling to a large
television news co
The company'smain market focus is very broad and general. It is open to me
generalpublic, and is used for business/home security,as well as forI
entertairunent.
They have a radler limited
amount
of products.
Their product
line concentrates
on Video Encoders, Camera Servers, and Pan Tilt. One of dIe disadvanmges
about dleir product is dleir price. It is costly for one to purchase one of dlese
cameras since p~ces range from $1QQ9 to $3000+9.
Location
Strength ofI
Resources
~-
Strategic Alliances
---
Key Strategic
Moves/
AcQuisitions
Assessment
--
This companyhas only one location and is situatedin Las vegas.
They have a good client baseand offer to design,install, and maintain hardware,
softwareand networking. Among its customersare dle Little Otapel of dle
I Flowers, Mardi Gras Food Court located in dle Rivieraand Four QueensHotels,
Park T~ers. and K1NV-News 13 "1ns~~
Vegas" (ABC-TV affiliate)~_~
Smart Connectjoins forces wim KTNV -News 13, which brings live views from
inside
Las Vee-as
straiehtmovement
to me viewers'
The
strategic
is to desktoo.
hook up with-I television so--that they ~
---~- company's
have a network to advertisetheir product. They need to be known to make
money!
8 www.smartconnect.net/products.asp?typelD=pantiltzoom
9 http://www .smartconnect.netiproducts.asp?typeID=videoservers
CSC454BusinessofSotlware:
Assignment
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RemoteMonitoring
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Competition
Product featUJ'e8:
Technology
.On-site
secureweb setVerand interface
.Network
and Internet connectivity
.Cameras for remote viewing
.Ability
to control devicesremotely
Current State
On-site
web server and interface:
.Standalone camerashave a built-in web serverfeaturei.e. no computer required
.An
on-site computer can host me web server mat can be accessedremotely
through an Internet browser. Any platform suchas MS Windows or Linux
wim me ability to connectto me Internet is supported
Network and Internet connectivity:
.Currendy,
me various waysto connectme Internet are mrough broadband
DSL or cable, WIFI (wireless),satellite,dialup, etc.
.Wtreless networking is becomingpopular especiallyin rural areas
.The
network card on a computer hosting me web servermay support up to 16
(
cameras
Camerasmay be hooked up to a single computer or through a LAN ~ocal area
t,
It
~ -~
-~ If ~\
network)
Video streamscan be recordedand men compressedfor datatransmission
through me Internet using technologiessuchas me MPEG4/Wavelet video
coding standardto suit differing connection speeds
Camerasfor remoteviewing:
t,,~Y
~~
0-(JIlt
11'
.Many
compatible surveillancecamerasexist under brands suchas Sony,
Panasonic,]VC, Axis and D-Link to name a few
.These camerasoffer many featuressuchasmotion detection monitoring. night
vision viewing, pannitlg. tilting. zooming. etc.
.StarHub
BusinessSolutions offers a remote surveillancemonitoring solution
fuat allows users to monitor different locations unlike a single location with
CcIv
systems
Ability to control devices remotely:
.The
web interface allows the userto remotely control camerasettings suchas
round-me-clock or scheduledmonitoring, and allows accessto other devices
control temperature,humidity, pressure,ligi1tinp;.
etc.
.mat
..
I
,.1\
14
.
RemoteMonitoring
Technology
Research and
Development in
Progress
Competitor's
Moves
Predictions
Business
PlanDraft1.0
.W
AP (WirelessApplication Protocol) solution being seenan alternative to
complement existing web solutions that require bulky computers,laptops or
PDAs (personaldigital assistants)I.
R&D is beingconducted in existing architecturedesign, integration with video
surveillancesystemmanufacturers,and various digital image processingand
applicationdes~si.
Axis is currendy researchingnew waysto utilize wirelesscommunications,
universal plug and play devices,and embeddedsystems
.Axis
started conducting product launchesthat recentlyunveiled the AXIS 250S
Video Serverthat allows analoglegacycamerasto interact with an on-site
computer or LAN, and AXIS 205, the world's smallestnetwork camera
.Vision
Fire and Security(ADPRO's parent company)continues to focus its
R&D on reliable securityand surveillancesolutions!.
Sensaphoneallows a home's vitals suchas temperatureand humidity to be
monitored. It would be useful if this technologycan be integrated for remote
use via the Internet
From D3Data's websitewhere dIey have had accessto a recentJ.P. Freeman
Report on dIe SecurityMonitoring Market, dIe report predicts dIat "remote and
networked video factory revenuesare expectedto increasefrom $100 million in
2001 to almost $800 million in 2006."10The report also forecasteddIat dIe IT
market's annual growth was to averagein dIe range of 40 to 50 percentover the
next five years.
* In anomer report obtained by D3Data, "Frost & Sullivan predicts mat by
2005, me network cameraand video server market will reach $790 million, up
from $74 million in 2000."11 D3Data mus emphasizes mat a convergence
betweenme IT market and me securitymarket is eminent.
I
10http://www.dJdata.com/wsContentidefault view? ~gename=mrkt
11http://www.d3data.com/wsContentidefault view? ~gename=mrkt
15
RemoteMonitoring
Technology
I
The financial risks inherent in this venture have been greatlyreduced by our principled
choice to focus on developingsoftware innovation and notto develophardwareinnovation
at the sametime aswell. David Pogue, in his well-documer(t:gccountof the birth of the
handheld industry, Piloting Palm, commentson how Jeff Hawkins' superiorproduct and
marketing wisdom were nearlyfoiled by Palm's decisionto "go it alone" (i.e. without the
benefit of a suppliernetwork). Becausethey developedtheir Palm OS and Palm Pilot
handheld at the sametime, they experiencednot only delaysin software developmentcaused
by flaws in the hardwarebut also delaysshipping the finished hardwarebecauseof
unexpectedsoftwarebugs.
Regulatory Standards
I
Business
PlanDraft1.0
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This preliminary analysisis confined to Canadianlawsand regulations,specificallythose in
Ontario. It does not attempt to addressRMT's future requirements,shouldwe decideto
expandto foreign markets,as many suchmarketshave quite different regulatory
environments.
There are many more Canadian regulations governing manufactured hardware that exist for
software. This is another case of RMf's software development focused strategy providing
big gains. For example, the T e/ecommunications
and Radiocommumcations
Acts of Canadawould'
only be applicable to RMf should we decide to manufacturer or alter hardware like wireless
cameras, but not if we act as a value-added reseller or integrator.
I
I
The StandardsCouncil of Canada,a federal crown corporation, recommendsspecific
standardsbasedon what our product seeksto accomplish,its function, and not basedon its
inherent technologyas in the Radiocommunications
Act. As is often the casein the ICf
industry, becauseour system'sfunction is so novel the StandardsCouncil needstime to
assessthe full socialimplications of our innovation before specific standardscan be
produced.There is howeverone standardthat mayapply, #ULC-S301-M88 "Standard for
Centraland Monitoring StationBurglar Alarm Systems,,12,
Though RMT is clearlynot in the
burglar alarm industry -for examplewe do not provide securityagentsto check a client's
property in the event of an incident -crafting policies to meet this stricter standardcould
enhanceour reputation for reliability.
16
/
/
RemoteMonitoring
Technology
RMT should also lobby againstnew regulationsthat could appearin Ontario modeled after
Newfoundland's "Private Investigationand SecurityServicesAct". This law setsout
financial bonding requirementsfor srnffworking in industriesrelatedto securityservices13
and could increaseliability aswell.
IndustryStandards
Similar to the situation with regulatorystandards,the only industry standardsthat could
apply to RMT were designedfor the burglar alarm industry. Nonetheless,the benefitsof
ftrtification will likely offset the $4000U.S. investmentrequired to becomestandards
/ compliant with an organizationlike Underwriters' Laboratory. Securityfirms like ADT
operating out of Toronto have long sought such certification becauseit (a)has the potential
to reduce our liability insurancecosts, (b) leadsprospective clientsto place greatertrust in
our product, and thus (c) allowsus to chargea premium price.
LegalRequirements-1 .~~
~
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.
As in anyventure, the number of legalissuesand liabilities that can be consideredis only
limited by the sheeramount of moneywe wish to expend on leP:alfees.
Someof theseissuesare generallyapplicableto most
firms, and are listed in the chart at right. The two
sl"!ecificconsiderationsare as follows:
r
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it
Intellectual Property (governedby the Patentand
~~
,I-:,~
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.I Copyright Acts)
Patentsearchesare time consumingand costly.
Unfortunately, the fact that RMT considersits
software to be novel does notimply that there are no
patents on file governing some or all of this ingenuity.
For example,a simple title searchuncoveredU.S.
Patent # 1620785:a "Warning systemfor excessive
apparenttemperatureconditions" similar to
functionality plannedin our product description. RMT
will conduct extensivepatent searchesnot in the belief that they provide some sort of
immunity from parent infringement liability -which they do not -but becausethe results
may help designour productsto avoid infringing on any patentswe do discover,thus
limiting our liability. Of coursethough software patentsare more unusualthan those for
hardwarewe will vigorouslypursue our patent and copy rights as applicable.
Privacy Protection
(governed by PIPEDA -the PersonalInformationProtectionandElectronic
Documents
PIPEDA Act;
came into effect for private ventures as of the 1stof this calendar year. The law
holds that "Organizations covered by the Act must obtain an individual's consent when
they collect, use or disclose the individual's personal information (emphasis
on keyterms
added)".RMT will be ready to batde a specific liability highlighted by this Q&A:
13http://www.gov.nf.calgsVccaltpVsecurlty-burglar-agency.stm
17
-!'¥
RemoteMonitoring
Technology
Business
PlanDraft1.0
A: Yes.The agentchargedwith enforcing the Act, Canada'sPrivacy Commissioner,has
ruled in the caseof a Railwayemployeewho filed a complaint againsthis employer, that "if2
Railwaywere using the camerasystemfor purposesother than those stated (i.e. discipline
opposedto the statedpurpose of safety),without employeeconsent,then the Railway
would likely be in a situationwhere it would be in contraventionof the PIPED Act.". Thus
"the [privacy] Commissionerrecommendedthat the companyremove the digital video
cameras".If they chose not to do so, legai liability could be incurred under the Act:4
Unfortunately, becausePIPEDA is so new there is still no casehistory asto whether this
would hold up in court, or how severethe damagescould be.
9tJDtJ.
Q: Would RMT be liable for violating PIPEDA by facilitating the coUection of
personal information by our clients?
A: Conceivably,yes. In the caseof "nanny cams", if a client were to use our remote video
monitoring functionality to observetheir nannywithout his/her explicit permissionwe
vould incur liability for facilitatingthis violation. If RMT only sold componentsthis would I
not be the case,but similar to the distinction betweenKazaawhich has not been held liable
and Napster which was,becausewe plan to store and collect surveillanceas a servicea court
might rule that we ought to have known a law was being violated.
I
I
I
Q: Would RMT be protected by Tenns of Service that required clients to agree not to
use our service for unauthorized surveillance?
~:
Not necessarily.Any legal actionwould likely name both RMT and the offending client. I
We would howeverbe ableto recoverlegal costsbyi~~l)tersuing the client !<:~brea;l of
contract -if marketing does not disapprove! -a"-"£J
~
~
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~~.
Q: What solution offers the best protection from this liability?
A: Becausethe "value" of one's privacy in terms of damageshas never been assessedin
Canada,and no caseshave so far beenheard,the liability involved is likely quite low. A small
quantity of insurancewould protect RMT from this risk, as well as an open and fair policy
for settling complaints from prospective"nannies" who feel our clientsare violating their i
PIPEDA protection. This risk is not largeenoughto affect this venture's feasibility.
I
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Suppliers of Complimentary Products & Services
The steady supply of components upon which our software will be built upon can be
secured in several ways. Market forces, which can be viewed as informal alliances, will
ensure large manufacturers of wireless network-enabled cameras like D-Link, and Motorola
are always eager to supply Value Added Resellers like RMT with cameras. Contractual
Alliances, those enforced by contract, will be negotiated when either (a) customization of
the complimentary product by the supplier is needed to best integrate it into our system, or
(b) software written by RMT for the complimentary product is unlikely to be compatible
with offerings from their competing suppliers, if any exist. Such components include
temperature sensors, water sensors, and intrusion detection devices by firn1s like Sensaphone
and SensaTronics. The only absolutely essentialcomponents -cameras and Internet access -
14http://www.privcom.gc.ca/cf-dc/2003/cf-dc_O30123_e.asp
,"
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CSC454
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18
RemoteMonitoringTechnology
Business
PlanDraft1.0
can be supplied by market forceswhile beneficial
componentslike the various sensorscan be
obtained by contract. This minimizes our dependenceon anyone supplier.
As a third alternative, some Research & Development can be directed towards exploring a
more vertical business model where we manufacture specific hardware capabilities as well.
This strategy, though expensive, would provide RMf with a "trump" card for use in the case
f su liers considering abandoning alliances 1-5 years down the road. With R&D applied
s tegically to offset our weaker supplier relationships, a threat to abandon an alliance by
such a supplier can be countered with RMT's intention to introduce a competing product.
Apple has long been rumoured to exploit a similar balance of power to ensure Microsoft
continues to release its Office suite for the Mac OS by both maintaining a private ffiMcompatible version of Mac OS and by conducting R&D experiments designed to emulate
~
Office's functionality.
I
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19
Business
PlanDraft1.0
RMT's Revenue Generation Model
Whatwe chargefor:
.The
main sourceof revenuewill be generatedby configuring a secureweb site which
RMT will host to store any datathat as a result of a customer'ssurveillanceneeds.
.In
addition our revenuewill be generatedbasedon the profit made by giving
different options to the customer.The serviceswe will provide will be customized
for eachcustomerand will be basedon their individual needs.
.The
various chargeswill depend on the different options we will provide to the
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customer.
0 The basic packagewill include a regular camerawithout SensaPhone
technology.The higher-pricedpackageswill include SensaPhoneand
auditory capabilitiesfor thosewho needit.
0 Chargethem on monthly basisdependingon the amount of videobandwidth and/or audio-bandwidththey consumeas a web hosting solution.
0 Routine Maintenancewill be done on a regularbasis,which will include fees
for camerarepairs if needed.
~ 0 Chargethem a flat fixed fee by signinga contract so that they can reapthe :
benefitsof reduceddiscount.
Chargebasedon the number of camerasa customerwants to haveinstalled.
)
0 Chargebasedon the type of camerarequired by the customer.
0 Chargea rental f0tJ7.forthe cameras.
I
0 Chargethe full price for the camerasif the customerwishesto buy them.
I
0 Charge for water-detectors,motion-detectors,or door contactsif the
customerwishesto buy them.
0 Chargeswill vary if the customerwants to have simply jpeg imagesor if
he/ she wants to have video feed.The choice of JPEG captureinstead of a
video feed will eliminate the need for video making this packageless
expensivesince bandwidth considerationscould be removed. This option
would be a good deal for those customerswho do not have a broadband
\f
~\
connection.
0 Team of professionalswill set up the cameraand other required equipment
0
I
0
0
on-site.
The customer will set up the cameraand other equipment. In this case,the
customercan saveinstallationcharges.
An online-alertservicewill be provided in casessuchas when the
temperaturelevel goesbeyond a certainlevel. Also, the customerwill be
chargedbasedon whether or not they need alertsto be sentto their regular
phone or cellul'4C
phone.
Chargeif th~tomer
needsaudio too.
20
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Business
PlanDraft1.0
RemoteMonitoring
Technology
0
We will have incurred costsif a customerrequiresnew functionality that is
not part of the regularpackagessuchas having the customizedinterface in a
different language(i.e. French of Chinese). This can be adjustedat anytime
but will require a servicefee.
How win you get your product to your customer?
A map ofthe main stakeholdersin thenetwork:
Technology
Supplier
alliance
alliance
A high level model is provided above. Sincewe are providing a service,we will act as
retailersto the customers. However, we will needtwo channelsof suppliers. One will be
the
technological
suppliers
in order
~ 'p!ovide
us the cust~mized
solu~onsn;eed~~~;ur--~::.:~
consumers.
The other
supplier
would
be the equipment
(in this case
the camera)suppIit!r" S-(f' -.,
I
that would give us the vital tools in order for the surveillanceto occur. We propose to have
a strategicalliancewith both the technology supplierand the equipment supplierto reduce
costs (if possible).
The Retailers:
.
I
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I
We are the retailersand in direct contact with the customer.We provide the services
of installationof equipment,maintenanceof the serversand web-site,problemresolving to the customers.As such,there is no intermediarybetweenus and the
customers.
-~-~,".,..",~..,",.,.."
21
The Suppliers -What do they Provide?
a) Sensor technoJogyto enableusersto monitor property vital signs such as temperature
will needbe accountedfor. This is an add-on feature that will meet specific functionality
that can be tailored to specificusers. Its value proposition of providing "security" and
"customization" will make this supplier'svalue-proposition.
Proposal: We will use SensaPhoneas a supplier for the sensortechnologywe are
using by creatingan alliancewith them. Their product has a patent and so one way
to be able to usetheir technologyis to make an alliance. The reasonfor this move is
that we wish to avoid having SensaPhoneas a major competitor.
./
b) Cameras suppJierswhich provide built-in serverswill be the most important supplier
becausethey will provide the hardwarefor surveillancepossible. Their value-proposition
of giving us the capabilityto offer the serviceis vital. As mentioned in the competition
section,Axis is a good tentative supplierwith its twenty yearsof experience. They have
specific camerasthat havebuilt-in servers.
Proposal: An allianceto reducethe cost of the purchaseof the cameraswill be
needed. For example,Axis would be a good choice as a partner becausethey have
built-in serversfor their cameras.
~
The Customers
Our customers-individualsor corporatecustomers-will benefitfrom the increased
~::5~de
ou is tha
securitypackages
we provide. The value-proposition from this Stakeho
their property is being protected by the servicewe are providing as etail .The ~~~~
y~
Suppliers will be able to provide customerswith both the technologyan necessary
~
07
hardwareinfrastructure.By providinga strategic alliance with the suppliers,we avoid (a)
5
competition(b)havereducedcosts.
A securewebsite will need to be developed.This website will allow customersto logon with a user-nameand a password.Once they have logged in successfully,they can
I
..
.
.
usevarious featuresprovided to them.
A dedicatedweb serverwill be neededto maintainthe website.
A dedicateddatabaseserverwill be required to store the data.
An audio serverwill be required for the customerswho wish to have audio
capabilitiesincluded in their package.
We will need to developthe software for the web basedapplication.This software
will be developedusing mw..,
XML, ASP, and VBScript/JavaScript.
22
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RemoteMonitoring
Technology
Business
PlanDraft1.0
The
t Sensorfor SensaPhone
Axis Cameras
Dedicated Server
Salariesfor web techniciansand service for
installation
.
Hidden Costs: ")
The need to compensatetechnologicalcoststhrough R&D
'7
,
We will n-quin-a R& D teamto ensun-that:
(a)
The current surveillancetechnologieswe are using are up to date, meet our
customers'demands,and are low in cost (comparedto other technology in the industry).
(b)
We provide the most securesitesavailableon the web.
I
Our R&D team will be basedin Ontario sinceOntario has one of the best R& D
(Researchand Development)infrastructures.A study by the ConferenceBoard of
Canadaranked Ontario as one of the bestlocations in the world to perfonn R&D 15
The Ontario Government allows federal R&D tax exemption. The benefitsare
summarizedbelow:
The FederalR&D tax incentives
include:
I
0 A 100%deductionof all R&D costs,includingcapitalequipment
0 A 20%investmenttax crediton ScientificResearch
and Experimental
Developmentexpenditures;b .t/?~~
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CSC454
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Assignment
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23
Business
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RemoteMonitoring
Technology
0
For small sizedCanadiancontrolled private corporations,the investment
tax credit Increasesfrom 20% to 35%, on up to the first $2 million of
R&D eachyear16
I
Given the various packageswe will be able to offer to our clients,we need to
developthesepackagesquickly to ensurethat we will be able to attract our niche market
before competitorshave time to adapt.
I
Research and Development
We will begin by purchasingcomponentsfrom our hardwarepartners. TCP lIP
capabilitywill then either be grafted onto the hardwareduring developmentor be included
already. Becausemost componentsare alreadyTCP lIP capable(c.f. Suppliersheading
under "Other Issues') initial R&D will focus mostly on the web and databasedevelopment
side and only require a minimum amount of new research.
f.., ~
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First 3-4months:
A.IIAi4t t."'J (/)l.L Irz ~
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The only major developmentefforts RMT currently foreseesare the web application,
and its attacheddatabase.Depending on the initial investmentRMT receives,developing
the securewebsite will take anywherefrom 3 -4 months. In line with project management
recommendationsin Tom Demarco'sPeopl~are, 15%of time will be devoted to planning
and design.Design priorities will include ~of-use
and securitywhile postponing
comprehensivefunctionality until a later phase. In addition, RMT will decidewhat other
technical specificatio(i)1renecessaryfor the hardware. At the end of this phasea beta
version will be releasedwith video monitoring, ~.fmage capture capabilityincluded.
Software suchaswww.joeionsoftware.com'sFogBugzwill be usedto track bugsand priority
will be assignedto those that justify the cost of repairing them. With only a small setof
featuresto implement and test,this will allow us to quickly releasetwo reliable packagesto
our test market. The majority of the revenuegeneratedwill initially be from residentialand
cottageowners. At this stageRMT will still be spendingmore on developmentthan we take
in from salesto our test sales,but the burn rate will be minimized by conservativespending.
Next 2-3 months:
During this phase,RMf will further negotiatewith the hardwarevendor to purchase
detectionequipmen,t.'j;rlis will introduce products that will allow clientsto detectmotion,
water level, temper!t6re level, etc. This will be gearedtowards the cottageowners and
property managers.Property managerswill benefit the most becausethis will allow them to
monitor their building's vitals for malfunction i.e. heating systemand becausetheir level of
investmentis highest. The water level detectiondeviceis just as useful for cottageowners
due to time savedtraveling for naught if the water level is too low to go boating. The
hardwarethat allows for this functionality will be sold as an option and bundled in some
packageswith the video monitoring/image capturesequipments.
-~~--~-~'-"~'"","".,.,.~
24
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Another useful featureto be developedduring this phaseis customized"alerts".
Some detection devi@ready have similar capability(i.e. a motion detector alertsthe alarm
company). This featurewill make our systemsmore responsivethan traditional alarm
systems. For sometraditional alarm companies,if an alarm goesoff, the companywould
call the owner and askif he/she want the police sent. If there were a falsealarm, the owner
of the house could be assessed
a fine. RMT hasan advantagebecauseif an owner is alerted
to motion in their property, the ownerwould first be able to checkin real time whether it is
a falsealarm or whether a robbery is in progress.
Sincethe sensorswill be purchasedfrom selectsuppliers,RMT need only implement
an interface for theseaccessingthe datathey provide on our web site. This coding will take
lessthan one month. A new beta version will then be releasedto acquaintancesand eager
customersfor a ttial run of one month. Data collected from the beta version will help in
fixing bugsusing the samemethodologyas the previousphase. The full releasewill follow
after bug fixes.
Next 2-4 months:
The final featureto be addedin our first year will allow for accessingarchived video
and images. This will be ~@i"fa)e the purchaseof severalexpensivedatabaseservicesand
so is postponed until the l~tp~e
of development. Clients will receivean initial allotment
of archive spaceon meseservers,and more will be availableat a fixed price per 1001m.
This servicewill be targetedtowards thosewho only expectto checkmeir property once a
week or monm. If a problem occurs mesecustomerswill certainlywant to checkthe
archivesto detenninewhen it first occurred. With the addition of this feature,RMT will
have a wide variety of packagesto appe-&;)tomany cottageowners and frequenttravelers.
Customersshould not find this functionality in anyway limiting.
Databaseprograrnmingand implementing the web application may take more time
than the previous phase. Initially, a free beta versionwill be releasedto a few selectedclients
for a trial run lasting approximatelyone month. Data collectedwill aid in designingqueries
useful for all clients. The initial set-upand developingof software for the databaseserver
will take at most a little over one month. The full releasewill follow after bug fixes.
"""""'"
CSC454BusinessofSoftware:
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Andrew Ash
.Working
for the Office of the Premier of Ontario, Andrew has recentlymanageda
high performanceweb applicationthrough the complete softwarelifecycle.The
project as deliveredmet or exceededall of its benchmarks.
.Posses a strong intuitive sensefor marketing and communicationissues,having
managed several winning election campaigns which are generally won or lost on
one's ability to meet the public's needs and wants.
.Andrew
looks forward to graduating with an Hon. B.Sc. in Computer Science with
minors in Political Science and English in about six weeks.
Andrew Smith
.As
an avid cottager for almost 15 years,Andrew hasan intimate understandingof
this targetmarket, and a network of contactsin cottagecountry
.As he is currently taking CSC318(Interactive Design of ComputationalMedia), and
has a strong artistic backgroundin various media,Andrew will also be able to
contribute in the designof userinterfacesfor client websites
.After
completing a year internship with ResearchIn Motion, Andrew hasgained
professionalproject management,automation development,software
documentation,and software quality experience
.As
a fourth year studentof the SoftwareEngineeringS.pecialist.program,
~drew.
has a wide set of software design,analysis,documentationand tmplementationskills
in various programming languages
Anthony Ku Ong
.Anthony
is a 4th year student completinga Hon. B.Scwhich will include a Computer
ScienceMajor and Minors in Mathematicsand Philosophywith an interest in the
Visual Arts
.To
the venture capitalis4Anthony offers: (a)a working knowledgeof web
development;(b) excellentresearchskills;and (c) strong graspof organizational
theories from both a macro and micro perspectivegainedduring two management
courses
.Anthony
also has experiencein formal report writing from CSC340,and has some
knowledgeof how organizationsand businessesare conducted theoreticallyfrom
."..."""'"
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26
.
Business
PlanDraft1.0
managementcourses.For examplein CSC340,in a group of three, we conducteda
feasibility study and requirementsanalysison designinga new ordering and inventory
tracking system(including interface)for Merkley HeadgearLtd
Huy Ung:
Technological
knowledge-web developmentand design,databases,c/c++, java.
Management
Courses
-familiarity of OB (OrganizationalBehaviour) theory and
OrganizationalStructures.
Analytical skills -good at analyzingfiguresand datawhen provided.
Researchskills -good
Creative-could come up with innovative ideasto promote and@'i} products.
Contacts-Knows peoplewho are currently invol'?i)n developingE-business. In
addition, peoplewho are also in the computer industry for 10+ yrs.
Mark Maglaque
I
Programming
anddesign
skiDs-database design(CSC228and CSC343),web
developmentdesign(CSC309)and knowledgeof scripting languages(CSC209)
AnalYtical;~searchandmting skiDs-Ability to break down a problem into simpler
ones;Experience in effectivelyusing a variety of researchtools suchas the Internet;
Has previouslytakenanalyticaland writing coursessuchas Information Systems
Analysisand Design (CSC320)and The Design of Interactive Computational Media
(CSC318)
C~ativeskiDs-Exploration of creativeand experimentalapproachesto solving
I
problems
Priya Mosur
.Priya is a fourth year of an information systemsspecialistwith a minor in economics
.Experience in prograrnming(Java,C, C++, SQL) as well as knowledgeof the
businessworld
.Studied accountingand in group organization
.Experience writing formal reports
Shalini Valchandani
Shaliniis a 4th year SoftwareEngineeringstudent.Shecompletedher B.Sc.(major:
Computer Science)in November 2003. At present,she is in the processof completing
an Hon. B.Sc. in SoftwareEngineering.Shalinihas experiencein designingand
developingweb-basedapplicationsand has alsoworked as a graphic designerand
systemsengineer.
Contributions that she can make to the team:
.Graphic
design,web design& development
.Software design& development
,
,...,
CSC454
Business
of Software:
Assignment
D
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,~"~~,~~~"""",,,.,.,
27
.
RemoteMonitoring
Technology
Business
PlanDraft1.0
Marketing, finance and accounting
Schedule for Hiring of Additional Staff
The following chart indicatesduring which quarterof eachgiven year additional staff will
be hired in various areas.The total number of staff in anygiven year can be detennined by
addingthe number of staff in eachcolumn to the left to the additional component for that
year. The year is indicated by the column headings.Descriptions of eachstaff areaare
provided in the next section.
Pleasenote that our group members'contributions are not included in thesestaff
requirements.
Q4.
1 Gr:e-Staff. part-time
Tech. Consultants
Q4. 1-2 CoreStaff.
as needed
part-time asneeded
5 CoreStaff
10-20part-timestaff
Q4. 2 Core Staff.
2 CoreStaff
4-8part-timestaff.
Web and DB Dev.
Q2. 2-3 Core Staff, parttime asneeded.
None
Q4. part-timeasneeded
5 CoreStaff
2 Core Staff.
part-time asneeded
CustomerService
Sales& Marketing
3 Core Staff:
part-time asneeded
2 Core Staff for new
features.
3 Core Staff to get beyond
5 Core Staff
the chasm
Q3. 1 CoreStaff to
HR
managehire of Q4
None,outso~ed.
I
Financial
None
Q4. 1 Core Staff to
facilitate new hires in
Years 3-4
None, outsoun:ed
1 C.A.internally.
None,outsoun:ed
None,outsourced.
None, too early.
Possibly 1-2 Core Staff.
None, outsoUICed.
Law
None, too early
Hardware R&D
28
RemoteMonitoring
Technology
Business
PlanDraft1.0
~
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Positions of Relevance to our Venture
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Field Technicians
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Numerous field technicianswill be neededto setupand maintainRMT systemsat client
sites. As our businessgrows, the number of thesetechnicianswill likely grow quickly. We
will be looking for individualswith prior hands-ontechnicalexperiencein installations. Our
Field Technicianswill be provided with training in the various hardwarecomponentslike
camerasand sensorstrained but must alreadypossessexcellenttroubleshootingskills.
Technology Consultants
A competitive advantageof our organizationis mat we addressme needsof eachcustomer
individually. This will require a skilled team of consultantswho can provide individual
treatment on a speedyand mus cost-effectivebasis. Our team memberswill acquire mis
experiencein me initial stagesof establishingour organizationand use it to train new recruits
aswe bridge me technologylifecycle "chasm".
Customer Service
Our customer serviceand support needswill vary greatlyas a function of new features
implemented in our software developmentlifecycle,and the technologylifecycle aswell.
This maymake staffing needsin this areaerratic. Managementin this areawill emphasize
flexibility by using both a core of full-time experiencedtier-l staff and tier-2 part-time
recruits.This will allow us to match our staffing levelsto rising and falling customerservice
needs.Our brand imageemphasizesthe high qualityof our product so this areawill be a top
priority. We will recruit experiencedcustomerservicemanagersand employeesto make up
our tier-l core support staff during the initial stages.
Web and Database Developers
RMT will leverageour group's web developmentexperienceuntil our management
responsibilitiesovertake developmentones. This will likely occur after successfulearlysales
but before crossingthe chasm. The software is designedto be scalablebut some staff time
will be allocated for the customneedsof our higher profile clients.Maintenanceof all client
siteswill be managedin a centralinterfaceand require little staff resources.
Sales and Marketing
,
29
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RemoteMonitoring
Technology
..
Business
PlanDraft1.0
As our organizationattemptsto bridge the chasmto early majority in our third to fourth
year HR will needto scout for experiencedsalesand marketingprofessionals. Considering
that none of our current personnelhave anyprofessionalexperiencein salesand marketing,
this will be a departmentfulfilled almost entirely by new hires. In the very earlystagesof our
venture, we can use our group's trusted contactsto establisha "foothold" in the market
place.
Human Resources
I
To ensurethat our employeesare properly managed.and that we recruit the best talent
possible for our company,we will require experiencedHuman ResourceManagers. As our
businessbeginsto grow, thesepersonnelwill becomemore critical. In the early stagesin
establishingour company,this position can likely be filled by current memberswith advice
I
I
from outside consultants.
Financial
We will be requiring financial personnelincluding CharteredAccountants,and Portfolio
Administrators. As none of our current personnelhave any professionalfinancial
designations,we will contract out for theseservices.
Law
I
I
I
As none of our current personnelpossessany fonnal training or degreesin Law, we will
need immediateassistancefrom externalattorneys. We will be looking specificallyfor
attorneyswith experiencein Intellectual Property, patents,security,privacy issues,and
licensing agreementsto ensureour venture is protected from liability. Initially, our company
will only be concernedwith providing secureweb monitoring solutions for our customers.
Our attorneyswill need to establishagreementsso that our companyoperatesin compliance
with all legalrequirements. As we also wish to use technologyfrom suppliers (monitoring
hardware)and complementaryservicesand infrastructure (ISPs)we will at some stagealso
need to draft strategicallianceagreements.
I
Hardware Research and Development
I
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As a route for expansion,developingour own remotemonitoring hardwareholds great
promise. With little electronicsor computer engineeringexpertisewithin our group, we will
need to recruit individuals with theseskills if we wish to expand into this niche. This
decisionwill only be made by managementif one of our hardwarealliancesappears
vulnerable.
N~Ay,'~~,','NA'"
.."",.",
30
RemoteMonitoring
Technology
Business
PlanDraft1.0
I
I
Contacts
For the contactslisted below, we have noted if they have any relation to any of our group
members,asthis addsto the value or strength of that contact.
Claude Bagley (Decoustics Limited -President)
.As
the presidentof this organizationfor over 15 years,Claudehas extensive
experiencein running a business.As a CharteredAccountant, Claudeis also a
potential candidatefor outsourcing of finance-relatedwork for our organization.
Claudeis a personalfriend of Andrew Smith and family.
I
1
Bob Careless (Woodbine Entertainment -Corporate Secretary)
.Bob
has extensiveexperiencein the financialworkings of companies,and has
performed many auditsof companies. The insight that Bob can provide us about
the financial viability of our own companycould prove to be very valuable. Bob is
also a CharteredAccountant. Bob is a personalfriend of Andrew Smith and family.
Elliot Gauer (Gauer Construction Ltd. -President)
.Elliot
leadsa large construction and renovationsbusinessthat would be interestedin
adding value-addedto their offerings through RMT. Elliot is a personalfriend of
I
t
Andrew Ash
Ryan Gonsalves(CanadaTeachersPensionFund-Portfolio Administrator)
.Ryan can manageour finn's investmentcapital,and be a source of excellent
investmentadvice. Ryanis a personalfriend of Andrew Smith
Morris Greenbaum (Greenbaum & Sons Construction Ltd. -Founder)
.Morris
has built thousandsof homes over the courseof his careeraround the
Toronto areaas well as in Hamilton. Morris and his sons are family friends of
Andrew Ash's and maybe interestedin bundling an RMT packageas an option with
some new homes on a trial basis.
I
Mike Larzaradis (Research In Motion Limited -President and Co-CEO)
31
Business
PlanDraft1.0
RemoteMonitoring
Technology
In making our client sitesPDA compatible,BlackBerryis a first choice. Mike could
provide us with the resourcesand contactswithin his organizationto make this a
reality.
Patte Seaton (VP -Bell Canada)
.As
a VP of Bell Canada,Patte can provide us with the contacts,information, and
resourcesnecessaryto help realizea possiblestrategicalliancewith this major ISP.
Mrs. Seatonis an acquaintanceof Andrew Smith
Chris Smith (Insystems
Technologies
-VP
of Development)
.Chris hasexecutivemanagementexperiencein severallargetechnology companies.
His industry insight, experience,and personalcontactsmakehim a very strong
contact for our business. Chris is Andrew Smith's Father.
I
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..
32
.
RemoteMonitoring
Technology
Business
PlanDraft1.0
I
Interview Protocol
I
.
A brief overview of our business,including a review of our Product and Service
section by the interviewee,followed by a summaryprovided by the interviewer
emphasizingspecific points about what we are offering, and what makesus different
from the competition
A brief overview of our businessplan including how we intend to makemoney, and
the strategicalliancesthat we intend to develop
A brief overview of our assumptionsabout the needsof customers,and our target
markets
A semi-structuredquestionand answerperio~ targetingthe expertiseof our
particular interviewee
Notes:
I
We attempted to contact executives at ADT, but our calls were not returned. We did speak to
some personnel over the phone at ADT about the areas their seNice covers, but did not get the
inteNiews we desired. However, we feel that the following two interviews with executives in both
a similar space, and with a Chartered Accountant provided us with invaluable feedback about our
I
business.
I
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33
Business
PlanDraft1.0
I
Interview #1
Interviewee: Chris Smith
Background Infonnation
.VP
of Development-Insystems Technologies
.Previously a VP of Development at Adexa, and Ironside Technologies
.Each of thesebusinessessharethe common attribute of aggregatingvarious
applicationsand datainto a singleportal in real time
.They provide event-drivenreports and notifications basedon monitoring the status
dynamic data,and receiving inputs from various applicationsand systems
Purpose
I
I.
1
We chosethis particular intervieweebasedon his executivemanagementexperience
in severalcompaniesin a similar spaceto our own business.We hope that he can provide
insight into the feasibilityof our business,and give us ideasabout what may make us
successfulin the monitoring systemniche.
Meeting Summary
.Our
main advantage,and what is most unique about the systemswe deliver is that
we provide a port!! to multiple systemsand applications,to aggregatethem, and to
simplify monitoring for our customers. This is very similar to the products Chris has
worked with and has seensucceedin the past. This is where our valueis, and it
should be our emphasis.
.The
port!! should provide a simplified view of all of the aggregatecomponents. The
usershould be able to selectspecific componentswithin the portal, and view a more
detailedpagebasedon the selectedcomponent
.Event
logs basedon particular eventsshould be viewableat the port!!, along with a
complete record of the event,and a record of anynotifications or reactionsmade by
the system. The eventlogs should be linked to particular components, for example,
the specific camerawhich recordedthe event
.The
questionof whether or not we needa computer at the client site was raised,as
this will influence the number of customersthat can afford the system
.Packaged solutions for particular environmentsmust be developed. This can include
a packagefor an areawithout power, and just phone line connections. Packages
should be developedto addressdifferent consumerswithin eachtarget market
CSC454&~in~sof Software:AssignmentD
34
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RemoteMonitoring
Technology
.We will need to detem1ineaccuratelythe cost of eachpackage,both in initial setup
and monthly cost. This will help us to get a better idea of how we compare to
competitors.
.We will needvolume before we can get anywholesaledeal or strategicalliancewith
suppliers. Early on in the business,we should not assumethat we will have the
demand that will allow us to by in largevolume. This considerationshould be
worked into the businessmodel
.Before we can achievethe demand for products that will necessitatelarge-scale
purchasing,we will need to carefullydetem1inewho can give us the bestprices for
the equipmentwe want at retail quantities(B1E was mentioned)
I
.Alliances with ISPswere emphasized: We can provide a strong incentive for a major
ISP to developa strategicalliancewith us. Becauseour systemsrequire an internet
connection, new customerswho do not have an existingone will need to get one.
Thus, our systemscan activelysellinternet connections for ISPs. If we can make a
deal to dealwith a singleISP,we will both certainlybenefit. We mayalso have
customersthat have a different ISP from our strategicalliance,which will also allow
us to transfer customersfrom other ISPs. The potential for a mutually beneficial
alliancewith an ISP should be carefullyaddressed.
.There will be major securityconcernsif we decideto do home automation (changing
temp etc.). We maywant to start simple,and expandinto the home automation
market.
.We will likely be able to begin modestly, employinginterns and co-ops. Some
managementexperienceearly on will be needed.
.We will require lawyersto establishthe written contracts that we will have with our
customers
.Part-time/outsourcing lawyersand CA's to do the minimal amount of work as
required for our businessmay be the bestidea in the earlystages
.The
biggestproblem will be establishingour initial customerbase. We needto be
very specific about packagesthat we intend to deliverand how much they will cost
.Deals with cottageassociationsand neighborhood watch programs should perhaps
be considered
.The
barrier for other companiesto enter into our market is very low, and we run the
risk of having competitors quickly latching onto our idea
.There
.It
is not true IntellectualProperty in our business
will be very difficult to "go big," and we may want to keepa "low-key" approach
in our salesand marketingbefore we are establishedto avoid having competitors
taking notice, or feeling threatenedenoughto enterinto our niche
RemoteMonitoring
Technology
Business
PlanDraft1.0
Interview #2
Interviewee: Bob Careless
Background Information
.Corporate
Secretary-Woodbine Entertainment
.Chartered
Accountant
.Previously
an Auditor for Ernst and Young
Purpose
We chosethis particular intervieweebasedon his knowledgeof the financial side of
businesses.We hope to gather infonnation about financial issuesthat mayarise in our
venture, and personnel that we mayneed to makethis ideaa reality. With his business
insight,we hope go get his personalopinion about the feasibilityof our businessplan.
Meeting Summary
.Bob
thinks that we should concentrateon where the value is within our markets. We
should look for high value clients that have valuableproperty, and are at risk of theft
or damage. He believesthat we would find the most successin targetingmediumsizedindustrial, commercialand warehousingbusinessesthat cannot afford
conventional, closed-circuitsecuritysystems
.We should considerconventional securityor monitoring systemsas competitors, and
comparethe product and servicewe offer to them. We should presentour systems
as an affordable alternativeto thesesystems.
.We
should concentrateon crime rates in industrial/commercial areassuchas
Markham and Scarboroughthat have recentlyhad very high theft rates,and do not
currently have an adequatesecurityor monitoring system.
.Wealthy home ownersin the GTA should also be an initial targetmarket. Someof
thesehome owners may actuallybe able to have someonemonitoring their property
remotely. This maybe more appealingto them than having someoneat their home,
especiallyif they do not have a personalrelationshipwith this person.
.We should targetareasin the GT A where the property value is high, and where
home ownerswould be willing to pay for our service. Thesepeople have a lot to
loose in the evenof theft or damage.
.We needto determinethe specificcharacteristicsof the businesseswe would target
in the GTA, to developa keenunderstandingof their needs. We have focusedto
36
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CSC454
Business
of Sotlware:
Assignment
D
""""""""""""""""""""~"'~='.""h._'"'~~="',,
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37

CSC454 Business of Software

Transcription

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