iCare - School of Computing
Transcription
iCare - School of Computing
2009 Juhong Li, Tolulope Akintokun Colm Counihan & David Mc Cague iCare 08/2009 iCare Business Plan 2009 - 2010 Page 1 of 105 DCU Business School- MSc. Electronic Commerce Documents Version: final version Version Date: 31-07-09 Authors: Colm Counihan David Mc Cague Juhong Li Tolulope Akintokun Project Supervisor: Dr. Cathal Gurrin Technical Supervisor: Dr. Alan Smeaton Business Supervisor: Dr. Peter Byrne Declaration : We the undersigned declare that the material submitted is our own work. Any assistance received by way of borrowing from the work of others has been cited and acknowledged within the work. We make this declaration in the knowledge that a breach of the rules may carry serious consequences. iCare Business Plan 2009 - 2010 Page 2 of 105 Acknowledgements iCare would like to thank Dr. Cathal Gurrin for his constant help and support throughout the duration of the practicum. iCare would like to thank our technical supervisor, Prof. Alan Smeaton and our business supervisor , Dr. PJ Byrne for all their help and advice. The guidance given by all the above was very much appreciated. iCare would especially like to thank all those who took the time to complete our survey and all the support provided by our friends and family. iCare Business Plan 2009 - 2010 Page 3 of 105 Contents 1.0 Executive Summary ............................................................................................................ 10 1.1 Introduction.................................................................................................................... 10 1.2 Products and Service ...................................................................................................... 10 Products and Service ........................................................................................................ 10 1.3 The Market ..................................................................................................................... 11 1.4 Our Strategy ................................................................................................................... 11 1.5 Financial summary ......................................................................................................... 12 2.0 Industry overview .............................................................................................................. 13 2.1 Introduction.................................................................................................................... 13 2.2 Trends ............................................................................................................................. 13 2.3 Market Assessment ........................................................................................................ 13 2.4 Level of Mainstreaming .................................................................................................. 15 2.5 Drivers and Barriers of the Telecare Industry ................................................................ 16 2.6 Target Markets: .............................................................................................................. 17 2.7 Market Share .................................................................................................................. 18 2.8 Competitor Analysis ....................................................................................................... 19 2.9 SWOT Analysis ................................................................................................................ 20 2.10. Value Proposition ........................................................................................................ 22 3.0 Product and Services .......................................................................................................... 24 3.1 Introduction.................................................................................................................... 24 iCare Business Plan 2009 - 2010 Page 4 of 105 3.2 The SmartlinQ Handset .................................................................................................. 24 SafeLinQ - Location Tracking Service................................................................................... 27 iCare – 24/7/365 Monitoring Centre ................................................................................... 27 Future premium service offerings ........................................................................................ 27 iCare – 24/7/365 Emergency Callout Service ....................................................................... 27 iCare customer care team .................................................................................................... 28 4.0 Business Strategy ............................................................................................................... 29 4.1 Vision .............................................................................................................................. 29 4.2 Growth strategy ............................................................................................................. 29 Short Term Goals: ............................................................................................................. 29 Long term Goals:............................................................................................................... 29 4.2 Strategic Objectives........................................................................................................ 29 Strategic Partnership ........................................................................................................ 29 Financial ............................................................................................................................ 30 Enhanced National Presence ............................................................................................ 31 Public and Social Partnerships .......................................................................................... 31 Benchmark against existing competitors ......................................................................... 31 Develop and provide additional services ......................................................................... 31 4.4 Strategic Model .............................................................................................................. 32 4.5 Partnerships ................................................................................................................... 33 Device manufacturers....................................................................................................... 33 Mobile network operators ............................................................................................... 33 iCare Business Plan 2009 - 2010 Page 5 of 105 Organisations that support the elderly ............................................................................ 33 The department of Health and the HSE ........................................................................... 33 Home Care organisations ................................................................................................. 33 Partnerships that we may need to enter in the medium to long term; ........................... 33 4.6 Business Model .............................................................................................................. 34 5.0 Sales and Marketing........................................................................................................... 35 5.1 Methodology .................................................................................................................. 35 5.2 Findings .......................................................................................................................... 36 5.3 Irish Market .................................................................................................................... 37 5.4 Marketing Mix ................................................................................................................ 39 Product ............................................................................................................................. 39 Price .................................................................................................................................. 39 Place.................................................................................................................................. 40 Promotion ......................................................................................................................... 40 6.0 Technology Overview......................................................................................................... 41 6.1 Introduction.................................................................................................................... 41 6.2 Telecare systems ............................................................................................................ 42 6.3 Mobile Telecare – Core Technologies ............................................................................ 44 6.4 Mobile Telecommunications .......................................................................................... 44 6.5 GPS ................................................................................................................................. 49 6.6 Commercial tracking services......................................................................................... 60 GPSGate ............................................................................................................................ 60 iCare Business Plan 2009 - 2010 Page 6 of 105 Other Commercial Tracking Services ................................................................................ 61 6.7 Free mobile tracking services ......................................................................................... 61 6.8 DIY Tracking Solutions .................................................................................................... 62 6.9 Data Plans ....................................................................................................................... 63 6.10 Google Maps ................................................................................................................ 63 6.11 Risk Factors................................................................................................................... 64 6.12 Conclusion .................................................................................................................... 65 7.0 Management ...................................................................................................................... 66 8.0 Finances ............................................................................................................................. 68 8.1 Financial Objectives........................................................................................................ 68 8.2 Assumptions ................................................................................................................... 68 8.3 Funding ........................................................................................................................... 68 8.4 Expenses ......................................................................................................................... 69 Staff Cost........................................................................................................................... 69 Professional Fees .............................................................................................................. 70 Phone Bills/Utilities .......................................................................................................... 70 Marketing/Promotion Cost .............................................................................................. 70 Material/Technology cost................................................................................................. 70 Office space ...................................................................................................................... 70 Insurance .......................................................................................................................... 71 Call Centre ........................................................................................................................ 71 GPS Location Service Provider .......................................................................................... 71 iCare Business Plan 2009 - 2010 Page 7 of 105 Postage ............................................................................................................................. 71 SMS Service Provider ........................................................................................................ 71 8.5 Pricing ............................................................................................................................. 71 8.6 Sales Projection .............................................................................................................. 72 8.7 First Year Sales Forecast ................................................................................................. 74 8.8 Annual Trading Profit and Loss ................................................................................... 75 8.9 Implementation .............................................................................................................. 76 Milestones ........................................................................................................................ 76 Figures............................................................................................................................... 76 8.10 Cash Flow Projections (Yr 1, Yr2, Yr3) .......................................................................... 77 References ............................................................................................................................... 78 Books, White papers, articles, press releases and Journals:................................................ 78 Websites: ................................................................................................................................. 79 Primary Research ..................................................................................................................... 84 Interviews ............................................................................................................................. 84 Appendix A – SmartLinQ Detailed Specification ...................................................................... 85 Appendix B – iCare Monitoring Centre Process....................................................................... 86 Appendix C – Telecare Alarm – High Level System Diagram ................................................... 87 Appendix D – Telecare Alarms – Existing Technology ............................................................. 88 Appendix E – Mobile Network Coverage in Ireland (Vodafone).............................................. 89 Appendix F – easy-to-use and entry level mobile phone handsets ......................................... 90 Appendix G – GPS Trackers ...................................................................................................... 92 iCare Business Plan 2009 - 2010 Page 8 of 105 Low-end ................................................................................................................................ 92 Mid-range ............................................................................................................................. 92 High-end ............................................................................................................................... 95 Appendix H – Where are they now ? ....................................................................................... 96 Appendix I – Primary Research : User Interview and Questionnaire ...................................... 97 Users Interview: ................................................................................................................... 97 Appendix J – Cash Flow Charts ............................................................................................. 100 iCare Business Plan 2009 - 2010 Page 9 of 105 1.0 Executive Summary 1.1 Introduction iCare, a limited liability company, was founded in 2009 by a group of students on the MSc. ECommerce program at Dublin City University. iCare’s driving force is the desire to help elderly people live, longer , healthier and more independent lives. iCare aim to be the leading provider of mobile telecare solutions to the elderly people living in Ireland. iCare hope to achieve this goal by engaging in a number of partnerships with the following companies; SafelinQ UK O2 Ireland Call Management Services Ireland 1.2 Products and Service Products and Service iCare provides a Personal Emergency Response service which enables our customers to get assistance 24 hours a day, 7 days week and 365 days a year regardless of their location. Our system involves a number of key elements An Easy-to-use, GPS enabled mobile phone A Web based Location tracking service A 24/7/365 Monitoring centre iCare intends to provide a 24/7/365 call-out service to its customers by the end of year one. We hope to partner with a Home Care company such as Home Instead to provide this service. iCare Business Plan 2009 - 2010 Page 10 of 105 1.3 The Market According to the 2007 census1 there are over 470,500 people within the 65+ age bracket living in the Republic of Ireland. Our market with mainly consist of people who live alone or who have health and security concerns. Our primary market will be the elderly population living alone. Other considerations undertaken by the group were age related health concerns, mainly dementia, as this disease in the early stages doesn’t affect the mobility of the sufferer and a large proportion of the population live within their own homes. Today there are currently more than 40,000 people in Ireland with dementia, with 50,000 carers. the cost of treating and caring for people suffering from dementia in Ireland is €400 million per annum (O’Shea 2008) With regards to the Telecare market within Ireland we see that there is high penetration within the Irish market, with 13% to 15% of the 65+ demographic utilising some form of Telecare(predominately 1st generation). This translates into approximately 60,000-70,000 people. 1.4 Our Strategy iCare’s corporate strategy is one of differentiation. We are differentiating ourselves from the existing Telecare providers by offering a similar standard of service to customers not only within the home but also outside the home. iCare hopes to obtain first mover advantage by being the first company on the Irish market to sell the SmartlinQ phone. iCare seeks to become the sole reseller of SafelinQ products in the Republic of Ireland. iCare expects by the end of year one to provide a 24 hour call out service for our customers. 1 Central Statistic Office http:// www.cso.ie iCare Business Plan 2009 - 2010 Page 11 of 105 We hope to provide this service by to combining with an existing Home Care organisation. The current Telecare providers on the Irish market do not provide this service. iCare in particular will target the following organisations; Organisations supporting the elderly Organisations supporting those suffering from Dementia Active retirement groups Social clubs and Organisations with elderly members Providing mobile phones specifically designed for the elderly person is not a market that is being pursued heavily by the high street retailers. iCare differentiates themselves from the retailers by focusing on providing easy to use mobile phones to elderly customers. We intend to differentiate ourselves from the companies in the GPS personal tracking area by combining a GPS Tracker with an easy-to-use mobile phone. The elderly person therefore only has to have one SIM, one contract and carry one device with them at all times. 1.5 Financial summary Financial Overview Year 1 € Year 2 € Year 3 € Revenue 226,500 552,000 1,008,000 Cost of Sales 90,000 120,000 180,000 Gross Margin -15% 31% 59% Total Expenditure 267,595 420,500 635,100 Profit and Loss -41,095 131,500 372,900 Cumulative P&L -41,095 90,405 463,305 iCare Business Plan 2009 - 2010 Page 12 of 105 2.0 Industry overview 2.1 Introduction In looking at the industry overview, we will see the current market trends the limitations of the current market our target market the key drivers and barriers to the telecare market within Ireland. 2.2 Trends When looking at the telephone and healthcare industries we can see that there are certain trends driving the rate of change within them. In recent years there is near total mobile coverage in Ireland and 100% penetration for mobile phones. This has lead to greater saturation within the mobile market, however there is still a niche market in the form of the elderly sector, i.e. easy-to-use phones, coupled with the increasing elderly population demographics and we can identify a profitable niche market. Another driving factor in the market trends is the emphasis on keeping people at home longer and living more independent lives in order to reduce costs and increase comfort in treating patients with mild Dementia. This policy is being actively undertaken by such bodies as the HSE and the Irish Alzheimer’s Society. 2.3 Market Assessment The worldwide population is rapidly growing and is expected to reach 7 billion by 2015 2. However certain segments of the population are growing at a faster rate than others. The 2 U.S. Census Bureau, Population Division; http://www.census.gov/ipc/www/idb/worldpopgraph.php iCare Business Plan 2009 - 2010 Page 13 of 105 current trend is for the older population (65+) to grow quicker especially within developing countries3. This is due to numerous factors, some include; better health services, better medicine and greater economic power within these countries to provide services for this demographic. We will discuss in further detail how this will put significant economic and social pressure on people and governments. Population Aged 65+ 1950-2045 16 14 12 10 8 % of Total 6 4 2 2040 2034 2028 2022 2016 2010 2004 1998 1992 1986 1980 1974 1968 1962 1956 1950 0 Source: Population Division of the Department of Economic and Social Affairs of the United Nations The primary concern of this trend is a phenomenon known as Epidemiological transition. According to the World Health Organisation 4 this occurs when infectious disease predominates, with high maternal and child mortality, to a state where premature mortality is low and chronic diseases predominate. These diseases include ischemic heart disease, cancer, stroke, arthritis, chronic obstructive pulmonary disease, dementia, and depression. This will have the affect of increased prevalence in diseases and ailments that are associated with old age, resulting in severe pressure (financial and emotional) upon both family and services. 3 http://esa.un.org/unpp/p2k0data.asp 4 World Health Organisation http://www.who.int iCare Business Plan 2009 - 2010 Page 14 of 105 Our goal is to provide a platform for a more independent and informed lifestyle for the elderly and sufferers of related ailments. This will allow the carer to gain respite and piece of mind and the sufferer knows that they can get assistance at any time. The aim of our service is to offer support and peace of mind for both user and carer. Looking at the Telecare Industry, there are various generations of technology available to choose from, however the level of penetration is very limited for 2 nd and beyond generations. The 1st generation consists of the generic product/service offering currently being offered on the market throughout most of the EU (EU27). This technology consists of social alarms, based on a landline in the home. The 2nd generation consists of additional sensors within the home, however with the exception of the UK; penetration in the EU has been limited. 2.4 Level of Mainstreaming Sourced: ICT & Ageing; European Study On Users, Markets and Technology5 By analysing the charts we can see that there is a very high penetration in the Irish and UK markets. The UK is the leading market in implementing the technology and is spearheading the application of the latest technology. 5 http://www.ict-ageing.eu/?pageid=246 iCare Business Plan 2009 - 2010 Page 15 of 105 Penetration of Social Alarms (% of older people aged 18 16 14 12 10 8 6 4 2 0 Series1 SI JP FR IT NL HU DE ES US DK FI SE IE UK Sourced: ICT & Ageing; European Study On Users, Markets and Technology6 2.5 Drivers and Barriers of the Telecare Industry There are many drivers motivating the increase of Telecare with Ireland and the UK. The main driver is the support it has been receiving from the respective governments. There has been public provision for the acquisition of the devices and services. Generally half of the up-front cost of implementation is covered by the government and then the subsequent payments is paid by the client/user. Another indication of Telecare’s growing popularity is how social alarms have become part of the social care service for both the HSE and the NHS. Another component of its penetration is the security concerns that many elderly people and their families may have for their safety, in an increasingly fast paced world. However there are barriers that will have a greater impact on the expansion of Telecare. The main one is the saturation of the market especially within the UK and Ireland. Levels of implementation seem to have stabilised at quite different levels, According to the World Research Centre they can vary considerable 15% in the UK, 6-10% in the Nordic countries and 3% in Germany and the Netherlands. 6 http://www.ict-ageing.eu/?pageid=246 iCare Business Plan 2009 - 2010 Page 16 of 105 From now on there will be significant less public provision/funding for the implementation of Telecare. There are various reasons for this, the primary one is that the 1 st generation has become reasonably mainstream. 2nd generation telecare systems are an extension of the existing 1st generation platform. The government may see its role in the development of Telecare as being over. The Irish government removed public supports for telecare systems in April 2009. Considering the economic downturn and the crisis in public finances it is possible that public funding for telecare may not be available in the future. Other barriers can include geographical/infrastructural disparities i.e. Broadband penetration though this is no longer a major concern. 2.6 Target Markets: Our primary target market comprises of Elderly people who may be isolated and alone Their carers/family members who may not be able to invest the time and energy that they would wish to . The organisations that support this demographic. those who may be suffering from ailments associated with growing old. Persons suffering with Dementia. We have seen from our primary research, that there is a sizable quantity of sufferers and carers who would benefit from our service/product. Even though dementia affects people of a younger age, the benchmark age seems to be 65, from the age of 65 the likelihood of dementia doubles for every 5 years after 65. The symptoms of dementia include: Loss of memory − for example, forgetting the way home from the shops, or being unable to remember names and places, or what happened earlier the same day. Communication problems − a decline in the ability to talk, read and write. iCare Business Plan 2009 - 2010 Page 17 of 105 Our target market will include all parties involved in the above circumstances. The user would be able to utilise the simple technology to aid them in living independent lives in familiar surroundings. People need to feel that they are connected to other people. Knowing that there will be someone at the end of the line, who can provide help if needed and more importantly provide reassurance to the person, is a key factor in our service. Secondly, carers and family members will have peace of mind, in knowing that they will always have a means to contact the person and know where they are, even if the patient is unable to supply this information. Thirdly we will be targeting the health services within a geographical market. Our product/service is designed to facilitate greater independence for the patient, resulting in less time spent within a nursing home and/or hospital and reducing costs for the health service. 2.7 Market Share Due to their ages, the disruption, and issues of trust between the patient/carer there tends to be a high degree of customer lock-in existing in the industry. Our target market includes newly diagnosed patients, their carers and the supporting organisations. By targeting those who may live alone, we will be initially entering a potential market of 300,800 people within the Irish market. We hope that by offering the generic/traditional service but in a mobile environment, supported by a call out service iCare will make significant inroads into the market. In the short term we will be focusing on acquiring market share, and building up our brand name. To this end we will be entering the market at a lower price point than our competitors. Looking at Dementia, we will be mainly targeting new customers, rather than trying to appropriate customers from our competitors. Within Ireland there was approximately 4,000 new cases diagnosed in 2008, while there is a staggering 163,000 new cases per year in the UK. These figures don’t take into account the number of carers or family members who are affected. iCare Business Plan 2009 - 2010 Page 18 of 105 2.8 Competitor Analysis Within the Telecare alarm systems market there are numerous existing competitors in the UK and Ireland. These companies vary in size, product offering and price (see table below). At the moment none of the incumbents are providing a mobile service. However iCare are aware that Age Concern in the UK has undertaken trials with the SmartlinQ and that a provider in Ireland has been enquiring about the Laipac s911 GPS locator bracelets. Eircom Phone Watch: (Ireland) Eircom Phone Watch offers a home monitoring service including a pendant for use by the user. A Generic Telecare service is provided 7; however there are extra services provided for household security. Task Community Care: (Ireland) TASK provides a 24/7 monitored alarm system from their base in Portrane, Co. Dublin. Their system provides a pendant or watch for the elderly and disabled user. They are also involved in the lone worker monitoring market. Emergency Response: (Ireland) Emergency Response, based in Bunclody , Co.Wexford is a member of the Tunstall group, has gained significant market share. They have an expanded product offering including generic services such as alarm and monitoring alongside fall detectors, Bed/Chair occupancy detectors and extreme temperature detectors. Age Concern (UK) Age Concern is one of the biggest providers in the UK. It is a charity based organisation and offers generic services/products in a telecare range. 7 Generic Service; relates to a watch or pendant being provided to the user. Communications are made to the call centre through use of a land-line router. The call centre can notify the emergency centres and/or carers/family. iCare Business Plan 2009 - 2010 Page 19 of 105 Kompanyon (UK) Kompanyon have numerous products that can be supplied to a customer, like Tunstall they provide a Bed Occupancy Alarm, Pill box alarm and Food Alarm, on top of the usual pendantpanic button. From looking at the above competitors we see that they all offer the same product/service – the household emergency button. Some like Tunstall and Eircom have a greater variety of products that can be built upon the basic alarm system, to create an even greater sense of security for the customer. It also strikes us as being a relatively congested market, with very little in the way of services being differentiated. However we believe that we are different by the fact that none of the above competitors offered mobile services to their customers. All of the offered services are home and land-line based. We can facilitate our customers living a more independent life not only from nursing homes and carers but from the confines of their home too. 2.9 SWOT Analysis Strengths: Simple and easy devices and system. Monthly telephone allowance for the elderly can pay for this phone Scalable operation- relatively easy to incorporate more technology. Processes are also scalable Front end automation allows simple and straightforward use of the device. Large and growing market Personalised service High level of customer lock-in Stable Revenue Forecast format iCare Business Plan 2009 - 2010 Page 20 of 105 Weaknesses: High number of incumbent players within the Industry. Saturation of the mobile phone market – there may not be demand among the elderly for a new phone if they already have one. High costs to establish ourselves within the market. i.e. Call Centre Hard to acquire existing customer based (high degree of lock in) iCare’s lack of experience in the industry Lack of recognition for the iCare brand The cancellation of the government grant for alarms Opportunities: Growing Market 100% mobile phone coverage in Ireland Growing popularity of eCommerce internet usage Many possible avenues for growth Competitors specialise in limited aspects i.e. home-based communication only. Threats: Possibility of substitute’s products entering the market. Possible rejection of new technology by the older population- issues with privacy. With the grant cancelled, our competitors will be more focused on cost, as opposed to service in the future. Possible Widespread introduction of an enhanced 112 service (all mobile phones can be located for emergency calls- Handsets being GPS enabled) iCare Business Plan 2009 - 2010 Page 21 of 105 The introduction of paid mobile tracking services into Ireland, as in the UK. Constant introduction of better technology entering the market at cheaper price, e.g. Bluetooth panic buttons Handsets that remove the need for a call centre by contacting a list of contacts automatically and persistently until there is a response. 2.10. Value Proposition In an industry where there is such a high degree of competition and such a low grade of differentiation in the market, how do we propose to create the value needed to sustain a company? The primary element within our business strategy/model that differentiates us from the other players within the market is our service. We offer a mobile platform for sufferers. Our technology will present the user with a point of contact to the call centre and to the carer. This profile can then be present to the emergency service if/when a problem arises allowing for speedier treatment and recovery. There are many benefits to providing a more mobile platform. From our market research 8 we know that regular participation in moderate physical activity can delay functional declines. It can reduce the onset of chronic diseases in both healthy and chronically ill older people. For example, regular moderate physical activity reduces the risk of cardiac death by 20 to 25 percent among people with established heart disease. Whereas our competitors offer numerous services they are all centred on a permanent router based within the home. This router has a limited range that ties the sufferer to the home and if he/she chooses to leave the proxy of the home, the service can no longer be provided. This is the primary difference between our product/service to that of our competitors. iCare hopes to partner with a home care organisation in order to offer a call-out service to our customers by the end of year one. 8 Do older adults want playgrounds? Merz and Forrester, 1997 iCare Business Plan 2009 - 2010 Page 22 of 105 iCare Business Plan 2009 - 2010 Page 23 of 105 3.0 Product and Services 3.1 Introduction iCare will provide the following products and services. SmartLinQ Easy-to-use, GPS enabled mobile phone SafeLinQ Web based Location tracking service 24/7/365 iCare Monitoring Centre iCare intend to provide the following services as soon as it is feasible to do so. 24/7/365 iCare Call Out Service iCare Customer Care 3.2 The SmartlinQ Handset One of the key elements of a telecare or personal alarm system is the physical device that the customer uses to call for assistance. In the case of the Home Based telecare systems this is a medical pendant. The functionality of the medical pendant can also be implemented by a wrist watch such as the Tunstall ‘minuet’ watch. The medical pendant connects with a base station which routes the alarm signal to the monitoring signal over the fixed telephone line (landline) or perhaps over the GSM mobile phone network using a GSM module. If the customer steps out of range of the base station the pendant or wrist watch will not function as required. The customer will not be able to use their telecare system to get assistance. The mobile telecare system is the solution to this shortcoming of the existing telecare system. A key element of the mobile personal alarm system is the device which replaces the medical pendant or panic button. There are a number of devices that are available that can perform this function. iCare Business Plan 2009 - 2010 Page 24 of 105 iCare has evaluated many of these potential devices and has decided on one particular device which fits the functional requirements of the mobile telecare system and the usability requirements of our customers. The SmartLinQ Personal Safety Mobile Phone (see Appendix A for detailed spec) SmartLinQ is one of the most powerful personal safety devices available. SmartlinQ combines the latest GPS technology with widely available GSM standards. The SmartLinQ is a quad band GSM device that can communicate via GPRS as well as SMS. SmartlinQ has the following features; Emergency button 4 pre-programmable buttons Track and Trace via GPS Adjustable safety zones ( Geofence ) Motion sensor ( “Man Down” ) GSM Quadband iCare Business Plan 2009 - 2010 Page 25 of 105 The SmartLinQ Mobile is a powerful easy-to-use GPS location device and mobile phone. It is small in size and lightweight. The SmartLinQ Mobile also enables iCare’s customers to call four pre-programmed telephone numbers and receive phone calls just like a normal mobile phone. When the customer slides the emergency button up, their current position will automatically be sent to iCare’s monitoring centre and the four pre-programmed numbers will simultaneously be dialled in sequence. In addition to the Emergency button there is also a “Man Down” motion sensor which performs a similar emergency response sequence. Along with the SmartLinQ handset the customer will get the following accessories. Battery Travel charger Handsfree headset User guide The following accessories for the SmartLinQ are also available to purchase through iCare. 900 mAh battery Travel charger iCare Business Plan 2009 - 2010 Page 26 of 105 Car charger Desktop charger Handsfree headset Case Belt clip SafeLinQ - Location Tracking Service The SmartLinQ phone is tightly integrated with SafelinQ’s Location services platform. iCare will be using this platform to track their customers when they call for assistance. SafelinQ also provide MyTraQ client software which allows 3rd party mobile devices (such as other mobile handsets to be tracked on the SmartLinQ platform. iCare can rely on SafeLinQ to provide them with a stable, solid and robust platform for tracking our customers SmartLinQ Personal Safety Mobile phones. The SmartlinQ mobile phone and the SafelinQ platform have been accepted by Age Concern in the UK already. iCare – 24/7/365 Monitoring Centre iCare’s Monitoring service will be provided 24 hours a day , 7 days a week, 365 days a year by Call Management Services, Based in Cork City. We will provide training to Call Management staff on how to use the SafelinQ Tracking platform. iCare will regularly review recordings of calls to ensure that customer calls are being dealt with appropriately. Please see Appendix B for the typical iCare Monitoring centre call process. Future premium service offerings iCare – 24/7/365 Emergency Callout Service iCare noticed that none of the existing Telecare providers on the market offer a call out service for customers in the event that none of their assigned contacts are available to assist. iCare can relieve the burden on the emergency services and our customers nearest and dearest by providing an extra layer of assistance and support. iCare Business Plan 2009 - 2010 Page 27 of 105 iCare customer care team iCare’s customer base are typically not downloading the latest apps for the iPhone or logging on to Twitter. iCare realises that the elderly customer needs a little extra customer support. In the future iCare customer care staff will call out to our customers’ houses and teach them how to set up and use their SmartLinQ handsets. If there is a problem with one of the Handsets iCare customer support will call out to our customers’ residence and provide a replacement phone on the spot if required. iCare does not have the capacity to offer this service from the beginning but management believes that this service could be a key means to differentiate ourselves from the competition and to increase customer satisfaction. iCare Business Plan 2009 - 2010 Page 28 of 105 4.0 Business Strategy 4.1 Vision iCare’s vision is to be the leading provider of Mobile Telecare and Mobile Personal Alarm Services to the elderly and vulnerable in Ireland. 4.2 Growth strategy Short Term Goals: Acquire €12,500 funding from each of the directors. We need to assess the performance of Call Management Ltd, who will handle the callback aspect of the business. Introduction of the product onto the market. iCare hopes to acquire a 900 customers by the end of our first year in operation. This averages out as 75 new customers per month. Medium Term Goals: Develop marketing and sales campaign to expand customer base By end of the 3rd year; 3,900 customers After year 3, iCare hopes to introduce its Call-out service nationwide. Long term Goals: Seek new features to remain competitive and secure new users Reassess market trends and competitors and identify new market opportunities collaboration with Clarity to develop and test telehealth products. By end of the 5th year the business should acquire 7,500 customers. 4.2 Strategic Objectives Strategic Partnership iCare aim to be the preferred supplier of SafeLinQ hardware and software in the Irish market and O2’s preferred supplier of Mobile Personal Alarm and Telecare services. iCare Business Plan 2009 - 2010 Page 29 of 105 iCare will retain a good relationship with Dublin City University. In particular we intend to collaborate with The Department of Electronic Engineering in investigating new sensors with application to the Telecare and Telehealth industry. We also hope to be able to offer students internships with our company in the future. Financial iCare will aim towards closing with a positive cash flow position by the end of the first financial year, being a profitable business by year 2 and generating no more than 30% of revenue for sales of new devices. The 70% balance of revenue will thus be generated from monthly monitoring fees. Revenue: iCare looks to generating revenue from two main areas, these are from the sale of devices and Monitoring fees. Devices: These will be sold to users at €150 each. A device consist of two component parts, which are primary device at a cost of €100 each and sim card at a cost of €5 each. Sale of each item will yield a 43% once-off profit to the business. This fee is viewed by the business as a switching cost for users. It is however reduced compared to fees charged by existing service providers for their devices. Devices will be sold at €100 each during the first 3 months of operation. This discount of 33% is meant to encourage sales and improve user take up at launch of the product. Monitoring fees: These will be charged upfront via direct debit at €20 each month. Monitoring fees have been identified as the main revenue generation avenue for the business as it generates a continuous stream barring user switching to other service providers. iCare Business Plan 2009 - 2010 Device Sales Device Sales Monitoring Fees Monitoring Fees Page 30 of 105 Device Sales Monitoring Fees iCare will thus be setting up a sustainable business model which will enable long term business growth. This will be complemented with the provision of delivery of valuable and quality customer service. Enhanced National Presence The incumbents in the telecare market have been in the business for many years. By the end of year 2 we want to be the First choice provider of Telecare for new customers in both the Mobile and Home based Telecare markets Public and Social Partnerships iCare will strive to build up our profile and relationships with organisations that support the elderly and Government agents such as the department of health and the HSE. These groups are a major source of information to our target market. If they endorse our product we will increase our customer base. Benchmark against existing competitors We aim to achieve better response times and higher customer satisfaction rates than our competitors in the home based telecare markets Develop and provide additional services iCare hope to collaborate with Clarity and DCU researchers in the development of new applications in the Telecare and Telehealth field. iCare Business Plan 2009 - 2010 Page 31 of 105 4.4 Strategic Model iCare hope to achieve first mover advantage in the Irish Telecare market. While there are some GSM/GPS offerings on the Irish market they are invariably going after the Lone Worker market. iCare are the first company on the Irish market to provide a mobile telecare or personal alarm service to the elderly. iCare realise that devices combining GSM mobile phone and GPS tracking technology have been commercially available since 2005 ( for example the GlobalSat TR101). There was no major take up or mainstream interest in these devices when they came out. Our coming to the Telecare market coincides with the convergence of GPS and Easy-to-use mobile phone technology in the form of the SmartLinQ mobile phone. The reduction in the price of mobile phone and particularly mobile data plans is also a factor which will grow our market share. None of our competitors in the Irish telecare market are providing a mobile telecare service for the elderly. We believe that we will capitalise on demand in the form of elderly people who will want the security of Telecare or Personal Emergency Response system not only within the home but also outside the home. As we know from the ComReg stats many elderly people have mobile phones. Many elderly people are not comfortable with using the mainstream mobile phones. The Usability factors that attract the young, such as extra functionality and smaller devices, are factors that are off-putting to the older user. They and are familiar but not yet comfortable with using mobile phones. iCares core product is an easyto-use ( more on these in the technology overview ) mobile phone as well as being a personal alarm system. iCare will play to our strengths, our knowledge of our customers, our technical know-how, our contacts in the Healthcare industry and our contacts with groups and organisations that support the elderly. We can rely on our Technology partner SafeLinQ and Communications partner O2 to provide us with first class products and services that our customers in turn can rely on. The pricing of our products and service compares favourably to; existing monitored telecare alarm systems ( both for initial and ongoing costs ) pay monthly mobile phone contracts ( the SmartLinQ is a mobile phone ) iCare Business Plan 2009 - 2010 Page 32 of 105 GPS Trackers and tracking services 4.5 Partnerships It is very important that iCare carefully grow their relationships with their selected partners and forge new partnerships in order to grow our business. Device manufacturers iCare will strive to foster our relationship with SafeLinQ and hopes that it will grow alongside our customer base. Mobile network operators A successful relationship with o2 is also crucial to the success of our business. Organisations that support the elderly We need to engage with organisations such as Age Action and encourage them to become “brand advocates” for iCare The department of Health and the HSE If we can demonstrate the value of our service to the HSE and the department of health then we can grow our business especially if the grant available for telecare systems is reinstated and extended to include mobile telecare systems. Home Care organisations Companies such as the Home Instead franchise may be interested in carrying out our callout service Partnerships that we may need to enter in the medium to long term; Alarm monitoring service providers/Call Centres: iCare may need to partner with them in the future to deal with expansion in customer numbers. Telecare providers: iCare Business Plan 2009 - 2010 Page 33 of 105 They may be able to partner with us in selling our products and services to their existing customers rather than coming into the market with a rival product. It is possible that we may be able to outsource our call answering service to them or even buy them out. Mobile handset retailers If demand is higher than expected for our products then we may need to partner with a high street retailer to distribute our phones and/or deal with returns. 4.6 Business Model Our customers are charged a fee to purchase the SmartlinQ phone and are charged ongoing monthly fees on a contract of 12 months. iCare are out-sourcing the monitoring of the alarms and the handling of emergency calls to Call Management Ireland Ltd. This will reduces iCare’s labour costs and also allows us to utilise the existing experience of Call Management to run the call centre. Margin on selling phones – we buy for €100 and sell for €150 Margin on monitoring fees – iCare incurs an expense of €9 per customer and charge €20 per customer. The cost of the monitoring service consists of a combined O2 data plan, SafelinQ GPS location service subscription and monitoring service fee iCare Business Plan 2009 - 2010 Page 34 of 105 5.0 Sales and Marketing 5.1 Methodology We had access to many forms of secondary information but for the purposes of drawing up a business plan. In going about the primary research we decide that interviews were the most appropriate form of information gathering. The interviews focused on both of our direct and indirect customers (Carers and Users) as well as more academic sources such as Dr. Mark Hawley head of the Medical Physics and Clinical Engineering from Barnsley Hospital NHS Foundation Trust R&D and Dr. Mary Kirwan of the DCU School of Nursing. We also focused on certain elements of the industry i.e. Call Centres and experienced incumbents from the industry itself. When talking to carers and users we decided that that the desired information would be two fold. The first approach reflects the users’ needs, and their habits with existing technology and services. The second approach deals with the carers’ proficiency with the internet and software. It also considers how approachable would they be with the system and service offered. In relation to the actual interviews we decided that we would have to keep the interviews short and to the point. We hoped that this would result in practical information but without antagonising the interviewees, especially the user segment, who mightn’t be very keen on discussing his/her fragilities. However during the interviews we found that it was quite difficult keeping it just to the questions. We decided to change our interviewing tactics. We shifted from asking (and keeping to the pre-defined) questions to a more open conversion, while guiding it to the information we wanted. This had the affect of making the interviewee more relaxed and the experience more pleasant. We endeavoured to keep the interview/conversations between 10-15 minutes. If there was a need for confirmation then we could e-mail the carer at a later stage. iCare Business Plan 2009 - 2010 Page 35 of 105 5.2 Findings For the primary element of the market research we undertook numerous interviews with users of the technology and academics who have undertaken research within the area. We conducted an interview with Dr. Mary Kirwan, a lecturer the School of Nursing department at DCU. Mary provided us with a number of important leads for the team to follow in relating to secondary information, the organisations that may support this demographic and services dealing with the elderly. For the user segment we focused upon; their motivation for use, the frequency of use, and who they would call in a given situation. The data pointed to the primary motivation being fear of accidents and security concerns. We found that most users’ don’t utilise it for outdoor use (many feel restricted to the home). Many don’t understand the full functionality of their devices nor do they want to, from this we confirmed our assumptions that a simple user interface is preferred. However our main discovery was that all competitors’ business models didn’t utilise the web in any significant way. The services currently on the market are generic and the primary means for differentiation is cost (in most cases the cost to the users family and the relevant health service). There are ‘potential’ competitors in the shape of personal GPS trackers and GPS phones that are becoming more available to the public. However there are few who offer a follow up service such as iCare. Another segment of the market that we interview was the carers of the users. This is a varied demographic including social workers, family members and neighbours. Security is a major concern for elderly people. It is reassuring to know that there is human contact at the end of the receiver and that they can summon assistance if required. A mobile telecare system would be beneficial, allowing similar reassurance when they are outside their homes. The more technology we can implement to make the person feel more secure the more attractive the device and service. It is also important to balance the sophistication of the background technology with ease of use for the customer. Another issue that we may need to discuss is the computer ability of the carer. iCare Business Plan 2009 - 2010 Page 36 of 105 The role of the carer within the model would not only be as a point of contact, but also a continuous point of information. The carer can log onto the site and update the user’s details, i.e. a change in circumstances, address etc. While we are confident that carers would be able to use the internet sufficiently there were some exceptions to this. It may be necessary for carers to be given some training in accessing the system and information about how it works. Worldwide there is an estimated 29.8 million people with dementia, with the number expected to be 81.1 million by 2050.9 According to the report “Implementing Policy for Dementia Care in Ireland” 10 commissioned by Alzheimer’s Ireland some international studies suggest that caring for a person with cognitive difficulties gives rise to high levels of stress. A prime example of this is the fact that over 75% of carers faced with caring for a dementia patient feel some degree of distress due to the behaviour of the person under their care. Almost two-thirds of carers report that they feel completely overwhelmed. The majority expressed a desire for an average 2 hours time off a day. It is clear to iCare that carers need more help and support. iCare hopes to be a source of help to these Carers and the people they care for. 5.3 Irish Market According to the 2007 census 11 there are over 470,500 people within the 65+ age bracket living in the Republic of Ireland. There is a sizable proportion of elderly people living alone. According to the 2002 census, 21.4% of men and 42.7% of women over the age of 65 live alone. 43.7% of the population in the 60-74 age brackets is living in a rural environment. This means that there is greater costs and trouble in providing necessary services for those who need them. This has the affect of creating a market for more remote monitoring. On average it costs €9,000 to care for a person with dementia. As the number of people with dementia grows (see chart) we can see that the cost of care for families and government is 9 Alzheimer’s Society of Ireland http://www.alzheimer.ie/eng 11 Central Statistic Office http:// www.cso.ie iCare Business Plan 2009 - 2010 Page 37 of 105 considerable. We must also consider the opportunity cost of people being unable to work due to caring obligations. People With Dementia 120,000 Axis Title 100,000 80,000 60,000 People With Dementia 40,000 20,000 2036 2034 2032 2030 2028 2026 2024 2022 2020 2018 2016 2014 2012 2010 2008 2006 0 Sourced: Alzheimer’s Society of Ireland From the chart we can see that the number of people with dementia is forecasted to nearly treble in the next 30 years with the Republic. There are currently more than 40,000 people in Ireland with dementia, with 50,000 carers. This number is expected to be in excess of 104,000 people by 2037. The cost of dementia according to O’Shea 2004 12 is €400 million per annum. This puts significant pressure on family resources or/and government funding for carers. In 2006, over 57% of that value is informal care without compensation, which is incurred by the family putting financial strain on top of emotional strain. With regards to the Telecare market within Ireland we see that there is very high penetration within the Irish market, with between 13-15% of the 65+ demographic utilising some form (predominately 1st generation) of Telecare. This translates into approximately 60,000-70,000 people. 12 The Costs of Caring for People with Dementia and Related Cognitive Impairments; iCare Business Plan 2009 - 2010 Page 38 of 105 5.4 Marketing Mix Product Our product/service offering is 2 fold. Our device consists of a mobile 2-way communication platform, linking the individual with a call centre, via a “comm;” button or panic button. The purpose of such a button is to establish if a problem has/is occurring and to then contact the emergency services or the carer/family. The second service offered by our device is the GPS function. The purpose of this function is to provide an idea of the location if/when they get into difficulty. A main symptom of dementia is forgetfulness and hence an increase probability of getting lost. What makes our service unique is the fact that our service is based upon mobile technology and will eventually offer a call out service as an extra layer of security for the user (in the initial phases of roll out, this service will be limited to the greater Dublin area), this means that iCare will not be limited to around the users home but practically anywhere they wish to travel, facilitating a more independent life-style for the sufferer. Price There are numerous issues that we needed to consider when deciding upon a pricing strategy. The most crucial is the current economic downturn and the discontinuation of funding and grants provided from the government. This has change the landscape o the industry moving the main differentiating focus from service provided to price. We feel that the market will support a cost of €150 for the device (including installation and registration) – comparable to the O2 Emporia phone. We will be charging a subscription fee of €20 per month. The initial fee is significantly cheaper than our competitors (see competitor table). This will allow us to acquire significant market share, especially from the new customers/users coming onto the market. This pricing strategy will allow us to reach our breakeven point at the close of the 2nd year in operation. iCare Business Plan 2009 - 2010 Page 39 of 105 Place We are hoping to position ourselves in the market as a more interactive service both for the patient and the family/carers of the patient. We will provide the standard care service (panic button) however we will also be providing a GPS function. We will place ourselves in a position where we will be desirable for all new carers/users in the market at a lower end of the market. This has become more important due to the growing cost sensitivity of the market due to the withdrawal of government grants in the area. The core group of elderly people who are the target for our products will be in their 80’s.Their children (indirect customers) are going to be in their 50’s. Neither group are high users of the internet. We will need to distribute our product through both traditional means (phone sales) and through groups that have regular contact with the market e.g. Home Care providers, clinics. iCare will have an online presence through the icarealarm.com website. iCare believes that there is not the need or demand for an actual high street presence, however if a need arises, then we can go through high street distributors already operating in the market. Promotion iCare believes that word of mouth will be the best source of advertising for our products. iCare intends to advertise in regional and local media ( newspapers and radio stations ) . iCare has allocated €13,000 for the first 5 months for promotion and a regular allocation of €1,000 per month after, for the first year. We will advertise our products through the organisations that are in touch with and support the elderly, for example the active retirement groups , organisations such as Age Action, the Alzheimer’s society, Public Health Nurses , Social Workers, Home Care providers, GP’s both on a national and community level. We believe that this will provide total access to the relevant parties within the market. ICare intend to offer a special promotion for the first three months. Under this promotion, customers will be able to purchase the handset for the discounted price of €100. iCare Business Plan 2009 - 2010 Page 40 of 105 6.0 Technology Overview 6.1 Introduction iCare originally planned to design our own GSM/GPS Personal alarm and manufacture this device in China. The Design of the device shared some similarities with the original telecare pendants. Our initial vision was to build a GPS Receiver into a watch-phone form factor similar to the Chinese w688 or the new LG watch-phone (GD910). The watch-phone was to feature a panic button that the wearer could press when in need of assistance. The panic button was to be hardwired to send an SMS to the monitoring centre, containing the GPS coordinates of the wearer as read by the inbuilt GPS receiver. When iCare initially proposed this design we were not fully aware of the technology available already on the market. The main technical areas that we looked at while researching our business plan were Existing Telecare systems Mobile phones ( entry level ) Mobile phones (easy-to-use) GPS Personal Trackers GPS Location Services We shall discuss these areas in detail in this section. In the previous section entitled Products and Services we outlined iCare’s chosen technologies. The SmartlinQ mobile phone The SafelinQ GPS Location service. In this section we explain some of the reasons behind our choice of technology. We discuss some alternatives to iCare’s chosen technology. iCare Business Plan 2009 - 2010 Page 41 of 105 6.2 Telecare systems The market that iCare is aiming to cater for can often be referred to using the following terms. Telecare Personal Emergency Response ( PERS ) Social Alarms Medical Pendant Alarms 2 of the main manufacturers in this area are Phillips Tunstall Group The Tunstall Group are part of the Continua Health Alliance, a collection of firms that aim to achieve interoperability and standards between their equipment in the Healthcare arena. The alliance includes Nokia and IBM. A typical PERS system consists of an electronic device such as a medical pendant ( see appendix D for more details ) that lets the person wearing it summon help using a panic button during an emergency. It can also consist of a monitoring sensor that automatically alerts the respective people to send help in case of distress. In case of automated PERS systems a sensor (or sensors) can be placed on the person being monitored, such as a heart or blood pressure monitor device or it can be placed throughout the house like a motion sensor or a sound sensor. The panic button or the monitoring sensor when activated sends a radio signal to a security panel or a console located within the house, which in turn would contact the monitoring station using a standard wired phone line or through a wireless mobile network. The PERS system can also be integrated with other security systems such as fire and residential security systems. Once the monitoring centre is notified of the emergency, it can respond appropriately based on the medical history of the client by sending the required medical help. The client can also pre-program responses, such as calling close relatives or neighbours, which gives the customer and relatives added peace of mind. Appendix C shows a typical PERS system with monitoring centres and response systems. iCare Business Plan 2009 - 2010 Page 42 of 105 Typically a home based Telecare or PERS system can be purchased, rented or leased. If purchased, the system requires a once-off equipment and installation cost and a monthly recurring monitoring cost. The system when rented from manufacturers, local distributors, hospitals, or social service agencies requires a monthly fee dependent on the complexity of the system and sensors. This rental fee also includes the monitoring cost. Details of the costs of such systems on the Irish and UK markets are provided in the Marketing section. Home based Telecare and PER systems are mature technologies at this stage having been available widely since the 1980’s. Telecare systems typically integrate with the POTS fixed line telephone system but systems have in recent years been paired with GSM modules which can send the emergency call to the monitoring centre over the mobile GSM network. There are some usability issues with regards to the telecare systems. In trials for sensors such as fall detectors and bed monitors, alongside false alarms and failure to detect falls, some of the users felt that they didn’t like the fact that they were being monitored (Brownswell & Hawley, 2004). iCare believes that devices which are intended to help people who are capable of living independently to live independently should not reinforce the impression that they are dependent. Telecare systems were introduced at a time before mobile phones were as commonplace as they are today. While end users are happy with the ability to get assistance at the touch of a button if they are at home, the range of the medical pendant does not stretch far beyond their front door. If the elderly person falls on their way to Bingo, if an Alzheimer sufferer gets lost on coming back from the newsagents or if the elderly person feels unwell their medical pendant will not get them the help they need. It is seen as being important to a person’s quality of life that they remain physically, mentally and socially active. Existing Telecare systems assist the elderly person living alone to remain living independently. iCare’s goal is to provide assistance to the independent living elderly person outside of the home. The main Technologies necessary to implement such a support service are available. It is iCare’s mission to apply these technologies in achieving this worthwhile goal. iCare Business Plan 2009 - 2010 Page 43 of 105 6.3 Mobile Telecare – Core Technologies iCare’s corporate mission is to extend the safety net provided by existing home based telecare alarms to the world outside. iCare’s mobile telecare system combines 2 separate core technologies. Mobile Telecommunications ( GSM and GPRS ) Global Positioning Systems ( GPS ) 6.4 Mobile Telecommunications There are many different products on the market for mobile telecommunication. One of the most ubiquitous consumer electronic devices over the past few years is undoubtedly the mobile phone. Figures from the commission for communications regulation in Ireland, ComReg, indicate a high level of mobile phone penetration. ComReg’s Quarterly Key Data report for the three months to the end of September 2005 indicated that mobile phone ownership had reached 100%, with some 4.05 million subscribers nationally13. The GSM (Global System for Mobile) mobile phone network now covers most of the geographical area of Ireland. Vodafone, one of the main network operators in Ireland, claims to have 99.5% coverage14. GSM is the most common mobile system in the world. It enables a phone user to roam (use the same handset) across all countries that have GSM networks. The mobile phone network operators typically have other types of networks including GPRS (General Packet Radio Service ) and 3G ( 3rd generation mobile communications system ). GSM and GPRS coverage are fundamental prerequisites of a mobile telecare network such as iCare’s. Please see Appendix E for a map taken from Vodafone’s corporate website indicating Vodafone’s coverage across Ireland for its different networks. You will notice that some coastal and mountainous areas in the west of Ireland are without coverage at the time of writing. 13 http://www.rte.ie/news/2005/1220/mobilephones.html 14 http://www.vodafone.ie/businessservices/coverage/ iCare Business Plan 2009 - 2010 Page 44 of 105 From the ComReg figures and anecdotally we know that many elderly people have mobile phones. From our own experience we know that when it comes to using mobile phones some elderly people text like teenagers while others leave their phones in a drawer and never use them. From speaking to groups who support the elderly, in fact Age Action have in the past run courses for elderly people teaching them how to use mobile phones, there are a number of usability issues for elderly people with mobile phones. They can’t read the screen The buttons are too small The speaker volume is too low Deteriorating eyesight and hearing as one grows older can explain the user experiences reported above. Mobile phones are seen by carers and support groups as being extremely beneficial to elderly people. The elderly person can use the mobile phone to contact someone if they need assistance or in the case of an emergency when they are not at home or are away from their corded telephone handset. In addition , and more importantly from the point of view of the carer , if the elderly person cannot be contacted on the landline or may be out of the home they have another method by which they can contact them. While many elderly people own a mobile phone they also tend to have a landline telephone in their home, often showing a preference to using the land line over the mobile phone. There is a common misconception that retired or elderly people receive free land line rental. The reality is that as part of a package of household benefits available from the Department of Social and Family Affairs, they are entitled to a €26 per month telephone allowance. This allowance can be used to pay for their landline or their mobile phone (it can be used to purchase credit for PAYG phones). iCare has spoken to carers who have indicated that a family member may be funding the elderly persons mobile phone while the elderly persons telephone allowance covers the line rental on the land line. The mobile phone is more often used by the elderly person to receive calls then to make them. The preference towards using the landline over the mobile phone could be related to the 3 factors above. In particular the mobile phone signal in some areas can be weak which can lead to a poor sound quality relative to that on the mobile phone. Traditional fixed line corded handsets such as that displayed in the image below are more iCare Business Plan 2009 - 2010 Page 45 of 105 suited ergonomically to a common use case for an elderly person; at home, sitting in their armchair with the phone beside them, having a long conversation with their daughter or favourite grandchild on the phone. The traditional corded phone is always in the same place, it is never stuck away in a drawer or down the back of the sofa, doesn’t need to be charged and doesn’t have any complicated features or settings that can be changed by a curious grandchild. Elderly people over the age of 80 tend to be more comfortable using a mature technology such as the fixed land line phone. The traditional corded phone handset is a piece of equipment that they have been using for the last 20 or 30 years and they can use it to accomplish the required objective of answering or making a phone call quite easily. They don’t have to spend time or effort having to get to grips with learning to use a new user interface (the mobile phone). Mobile phones have been adopted by the mainstream since the late 90’s in Ireland. Recently retired people do not exhibit the same patterns of usage or preferences towards the land lines as those who retired before the widespread introduction of mobile phones in Ireland. In the future we expect to see higher usage rates of mobile phones among the elderly relative to use of traditional corded handsets. In response to the reported usability issues for mobile phones among the elderly a number of mobile phones that have been designed with this demographic in mind. The most common phone targeted at the elderly population in Ireland is the Emporio Life, available from O2 stockists in Ireland for €149.99 with €50 free call credit on PAYG. The Emporio Life Plus (successor to the Emporio Life) boasts an impressive 250 hours standby time. The buttons and screen are oversized. It also includes a hands free loudspeaker. Most importantly in the context of Telecare the Emporio Life Plus has some impressive emergency features. The Emporio Life Plus (See Appendix F) has a single emergency panic button on the rear. This button when depressed can send an SMS to up to 5 different numbers at the same time. According to the Matomobile website there are 20 million people in the UK, in the over 50 age group, who are looking for a phone that is easy to use. They also mention that 250,000 units of the Emporio Life Plus phone have been sold across Europe. However I did speak to iCare Business Plan 2009 - 2010 Page 46 of 105 someone in O2 Ireland who off-the-record was not impressed with the reported sales of this phone in Ireland. The Amplicom MT500 is another phone targeted at the elderly market. It is a big button, big screen mobile phone with a loud ringtone, loud speaker and strong vibrating alert. There is an induction coil built into the handset so it is fully hearing aid compatible. There are several other phone models targeted at the elderly and Easy-to-use market. Again they seem to be high quality phones with basic functionality. They feature big displays and big buttons and have long standby times (Battery life is a usability feature of mobile devices that affects all users).These handsets range in price from £59.99 to £149.99 sterling on PAYG. Some network operators offer easy to use phones, such as the Emporio Life Plus, for free with a monthly contract. Contacting of people in emergency situations is an important use case for mobile phones for the elderly and many handsets have some type of emergency/SOS/panic function that can send multiple SMS messages at the press of a button. While they may bear more of a resemblance to a calculator than an iPhone, it is unlikely that they will be a target for theft. Finally we will comment on the Easy project’s, Easy 5 mobile phone. This has quite a different design from all mainstream and easy-to-use phones. The easy 5 is probably the most basic, easy-to-use mobile phone on the market. In the table below the first thing the reader may notice are the 5 oversized buttons, each programmed to speed dial a stored number. Next they will notice that there is no screen on this mobile phone. It is therefore easy-to-use but possesses a much smaller form factor than the other big screened, big buttoned easy-to-use phones. There is no capability to send or receive SMS. The Easy 5 is suited to use by someone who may receive calls from a number of different people but who themselves will make a number of calls. Our discussion of the easy-to-use mobile phones is to give the reader an idea of the usability issues reported by elderly people in relation to mobile phones. These are issues that also must be considered also in the design of a mobile telecare user interfaces. The long battery life, oversized buttons, loud speaking volume features of Easy-to-use mobile phones are also features of the SmartlinQ phone and are ideal features for a mobile telecare end user device. iCare Business Plan 2009 - 2010 Page 47 of 105 In addition to the easy-to-use phones we must also consider that elderly people will own and use mainstream phones. Mainstream, mass marketed phones, tend to be cheaper than the Easy-to-Use phones. They are also more widely available. O2 in Ireland only offer one recognised Easy-to-use phone, the Emporio Life Plus and one child’s phone, the Firefly. On the other hand the mobile operators and handset retailers such as Carphone Warehouse sell many entry level phones which can sell well amongst all age demographics due to their lower price. In relation to entry level phones Age Action Ireland recommend the Nokia 2600 and Nokia 2680 phones (Age Action organise training courses for the elderly in using both mobile phones and PCs). It is worth noting that both of these handsets have in built support for Bluetooth, Java and GPRS. We will explain the significance of this in the section on GPS tracking solutions. It is necessary to mention at this point that GPRS functionality is available on all O2 prepaid plans at a rate of 0.02c per KB up to a maximum of 0.99c per day15. iCare view both easy-to-use and mainstream mobile phones as being beneficial to the elderly user from a usability point of view in normal conditions. The basic functionality of these phones is a positive under normal conditions. In an emergency situation the simplified SOS functionality can be effective , assuming the user can reach their phone. The problem of the user not being able to reach their phone will in the future be solved by use of wearable Bluetooth panic buttons. An Irish company, Securecom, has patented the Bluetooth Panic Button design. Bluetooth Panic Buttons are not in production at time of writing. The other main usability problem is when the user presses the SOS button the person who receives the emergency message may not be able to determine the user’s location. The phone message does not contain details of the user’s location. In the next section we will discuss a technology that can resolve this shortcoming, GPS. 15 http://www.o2online.ie/wps/wcm/connect/O2/About+O2/Terms+and+Conditions/Speak+easy/Internet+on+yo ur+Mobile+tariff as at 25/07/09 iCare Business Plan 2009 - 2010 Page 48 of 105 6.5 GPS The Global Positioning System (GPS) is an always on, all-weather, accurate system for determining a geographic location (GPS provides latitude, longitude and altitude measurements).It is a satellite based system that is owned, supported and maintained by the US Department of Defence. A GPS receiver gets radio signals from several satellites through its inbuilt antenna. By measuring the exact time each signal arrives at the receiver, the receiver can calculate how far away each satellite is. By using this information the GPS receiver can calculate its own position. All this complex computation is performed by a chip such as the SIRF Star III or the U-Blox UBXG-5000.GPS is free to use for civilians and since 2000, the previous selective availability (SA) of GPS for civilian use has been turned off .Prior to this event GPS readings for civilian users were not as accurate as for US government users. With SA turned off GPS systems are frequently accurate to plus or minus 20 metres (Thurston ,2003 ). Geocoding, the process which connects addresses to coordinates improves the accuracy even further. Devices such as Verify&Locate’s SAZO GPS product (available in the UK ) claim a maximum accuracy of 5 metres . GPS is now a multi-billion dollar market. In recent years we have noticed GPS enabled devices such as in-car satellite navigation systems (SATNAV) becoming mainstream. We have also noticed a large decrease in the price of SATNAVs and GPS receivers in general. One of the global technology trends of the last 2 years is the convergence between mobile phone technology and GPS technology. On the Irish market in the past year several high end phones such as the iPhone and Nokia e71 were released with built in GPS receivers. While not yet a mainstream consumer product, there are numerous GPS enabled tracking devices on the market. In the US, the Enhanced 911 mandate issued in 2001 by the FCC (Federal Communications Commission) specified that all mobile phones must indicate their position for 911 emergency calls. Its current implementation phase specifies that mobile network operators must provide, if requested by a PSAP (Public Safety Answering Point), the call centre who answers the emergency call, the location of the mobile phone that made the call. GPS and more recently A-GPS (assisted GPS), is one of the main technical approaches followed by mobile handset manufacturers and mobile network operators in the US to comply with the mandate. The main benefits of enhanced 911 are iCare Business Plan 2009 - 2010 Page 49 of 105 The emergency call can be directed to the correct call centre for answering the call. The emergency services can be directed to the exact location of the call. Considering the introduction of the unified 112 emergency number across Europe, iCare believe it is possible that the European Union may implement a similarly enhanced 112 system in the years to come. We can expect to see GPS enabled phones becoming more prevalent in the future. In fact even at present there is some evidence that GPS enabled phones and to a lesser extent PDAs (Personal Data Assistants ) are displacing sales of dedicated GPS Navigation devices. Smartphone “where am I” applications such as Google Latitude (free of charge to use) are also making an appearance. The trend towards convergence between GPS and mobile phones is something that the telecare industry will no doubt be watching closely. Though less obvious to the mainstream consumer than SatNavs or GPS enabled Smartphones there is also a plethora of GPS enabled devices that are used for tracking of a variety of assets, people and vehicles. Trackers are battery powered units of varying size that take GPS readings and either logs that information in the devices local memory for offline analysis at a later date or transmits that data using the mobile phone network for others to monitor in real-time. For example a vehicle can be concealed in the vehicle and can utilise GPS readings to determine not only the location of the vehicle but also the speed of travel and route taken. In the section on enhanced 911 services we introduced the acronym A-GPS, Assisted GPS. One of the prerequisites for an ordinary GPS receiver to take readings is that there must be line of sight between the receiver and the sky. The GPS signal is constantly on but it is sensitive to the slightest obstructions. The line of sight pre-requisite is important to be aware of when we discuss GPS tracking devices. Assisted GPS combines the regular GPS signal with assistance servers that are accessible over the mobile telephone network that can obtain the assisted GPS enabled device’s position even when there is not line of sight by utilising data from the nearest mobile phone tower. As far as iCare is aware Assisted GPS is not commercially available outside of the US at time of writing. We spoke earlier about the current trend in the convergence between GPS and Mobile phone technology particularly in high end Smartphones and the likelihood of us seeing more GPS enabled mobile phones in the future. At the moment there are already some products on the iCare Business Plan 2009 - 2010 Page 50 of 105 market that offer mobile communication combined with a personal tracking capability are fewer in number. In this discussion we include both voice and SMS communication methods and both 1 way and 2 way communication between device and monitoring centre under the general heading mobile telecommunication. We will demonstrate later on that the level mobile telecommunication functionality provided differs between the various devices. The SmartlinQ mobile phone enables GPS Location and 2 way mobile phone communication. Personal tracking is a segment of the overall GPS tracking industry. GPS is increasingly being used to track assets in particular vehicles. The personal tracking industry is divided into a number of segments. Lone Worker Protection Security personnel Parolees Children Elderly people and/or Dementia sufferers iCare have investigated a number of dual capability devices. It is our belief that many of the devices at the mid range and higher end are more suited to the Lone Worker Protection and Security segments than they are to Telecare. Our belief is based on 2 factors. The cost of the devices and monitoring is above the price that we believe the Telecare market is willing to bear. The costs are significantly higher than the current Telecare alarm systems available on the Irish market. The devices are geared towards continuous tracking. Our end users do not want or need to be continually tracked. Knowledge of their location is only required when the end user raises an alarm. There are several products at the lower end of the market which have combined mobile communication and personal tracking capabilities. The lower end of the market typically comprises of Chinese made devices available from multiple sellers from unknown manufacturers on sites such as EBay, Globalsources and Alibaba ( See Appendix G). From speaking to people in the Irish security industry, the Chinese made devices are cheap but the quality is not good. The CEO of one Irish based security company I spoke to said that “if you iCare Business Plan 2009 - 2010 Page 51 of 105 want the device to still be working in a years time don’t buy one of these devices”. Appendix G contains 2 of the most common low-end personal GPS/GSM Trackers (also referred to as “bugs”). Some of the terminology used when discussing the features of the GPS devices may require some explanation for the benefit of the reader: The Sirf Star III chipset refers to the microprocessor that processes the GPS signal. It seems to be one of the most commonly used chipsets and is accepted as being relatively accurate. Geofencing refers to the ability of a user to set up a virtual fence around a geographic area and an event , such as a the sending of an SMS to whoever is tracking the device, can be triggered when the tracker ventures outside the boundary of the Geofence. Voice monitoring capability is provided to a mobile phone that calls the phone number associated the SIM card contained in the Tracker .In the case of some trackers this appears to enable the mobile phone caller to listen to audio recorded through a microphone on the unit. In the case of the CVHS-G42 2 way voice communication is available. iCare systems have not put this claim to the test however due to the small size of the unit we either doubt the claim or else would not be confident that the unit would not suffer from a common usability issues experienced by elderly users of mobile phones , the speaker volume. OTA( Over The Air ) configuration refers to the ability to be able to change the device settings in real time over the GSM network via SMS. For example in the case of the TK102 Send SMS t030s005n+password to the unit, it will report the Geo-info at 30s intervals for 5 times.(s: second, m: minute, h: hour) Typically the Trackers are configured to only accept phone calls and SMS messages from a list of numbers configured using the accompanying software. iCare view their target market segment as being price sensitive so the price of these low end devices is attractive in comparison to the mid-range devices. Mid-range devices typically have iCare Business Plan 2009 - 2010 Page 52 of 105 retail prices ranging from €150 up to €400. iCare predict that by q2 2010 low end GPS tracking devices will be available for as little as €50. Wholesale prices for these units could at present be as low as €40. iCare believe that the recommended retail price of €150 for the SmartlinQ will be attractive to our customer base. iCare ,through contacts in China, have priced the manufacture of a small production. run of low end GPS/GSM tracker watches at €40 per unit ( not including design fees , shipping or IP protection fees ).From the inception of iCare, iCare’s technical department has given serious consideration to the idea of designing a GSM/GPS tracker with the same form factor as the w688 watch phone ( see image to the right ). iCare’s technical department has advised against pursuing this objective for a number of reasons. The necessary volumes of orders – iCare would need to place an order for thousands of these devices with the manufacturer in order for it to be economically viable to manufacture them. By the time iCares customer base grows into the thousands of customers, cheaper and/or better quality devices will be available. Time to market – the product will have to be designed, prototyped and tested. Then a production line will have to be set up. The finished product will then have to be certified by NSAI before it can be marketed. Warranty – if the units are faulty who is responsible who will provide replacement devices. Quality – if the devices are manufactured in China can we be sure that the quality is (at best) the same quality as the low end tracking devices that are already on the market. iCare are aware that the target segment is price sensitive. In fact when somebody who works with the elderly was asked would elderly be likely to use a mobile telecare system they answered “They would if it was free”. However the target market also expects quality and a high level of customer service. The low end devices may improve in quality in the future but at the moment their reputation amongst professionals in the market is not good. The quality of documentation at the low end is invariably poor. Configuration of these devices is not trivial for the inexperienced or elderly user. The elderly market segment expects quality, robust, unsophisticated products and prefers if they are easy to use. They are typically not iCare Business Plan 2009 - 2010 Page 53 of 105 happy to replace a product every year. Once they have become familiar with using a product they will not want to replace it at all. iCare cannot afford to allow their reputation to be damaged by poor quality associated with low end hardware. iCare shouldn’t completely rule this option out in the future if the quality improves. In year 1 and 2 iCare should rule out offering low end equipment and should not pursue the option of designing and manufacturing devices. There are a number of mid-range tracking devices (see Appendix G), some have a similar form factor to the previously mentioned low end tracking models. Others have form factors which are more similar to mobile phone handsets. Finally at the upper limit (€300-€400) of the midrange there are some recently released devices that have similar form factor to watchphones. Most of the mid-range devices claim to support A-GPS, which enables tracking indoors and faster TTFF (Time To First Fix). However iCare is not aware at this point if the Irish mobile networks support A-GPS. The market for mid range tracking devices is catered for by products manufactured by the following companies. Laipac Technology ( Canada ) GlobalSat (Taiwan) Holux (Taiwan) Verify & Locate/SAZO (UK ) Teletikom ( Lithuania ) StarsNav (Taiwan) The s911 personal locator is in a similar form factor to a mobile phone. Not only is it a GPS tracker but it can also be used as a mobile phone. There are 3 speed dial buttons which can be associated with phone numbers for voice communication. The s911’s SOS button sends out 3 alert messages, voice, SMS and email over GPRS. The Laipac devices integrate with a Location service called LocationNow (www.locationnow.com ). LocationNow tracks the personal units using GPRS information sent from the units themselves. LocationNow.com currently uses Google Maps and MS Virtual Earth for mapping. The s911 personal locator has the following dimensions iCare Business Plan 2009 - 2010 Page 54 of 105 100 * 45 * 25 mm. The life of the s911’s 1100mAh battery is 8-10 hours when transmitting every 2 minutes with a constant GPS lock. It will last 3 days while the GPS receiver is in idle (off) mode. The optional 1500mAh batteries life expectancy is 40% longer then the 1100mA battery. The Bracelet locator is close to iCare’s originally proposed design to build a GPS personal tracker with SOS button and 2 way mobile voice and SMS communication. It contains features such as a 3 axial accelerometer which can detect impact and/or falling. An alarm can also be set to go off if the bracelet has been removed from the wearer’s wrist. The Bracelet locator is similar in size to the Watch phones such as the w688 that we mentioned earlier. Building a personal tracker into a form factor such as the bracelet or watch is dependent on the size of the components that go into the device. The Battery required to power all the components, including GPS and GSM modules, microphone and loudspeaker for an acceptable length of time is perhaps the biggest obstacle to reducing the overall size of the device. The s911 has the following dimensions 68.9 * 48.2 * 22.8 mm (Band area not included) At time of writing iCare are not aware of the weight of the device. iCare believes that the medical pendant is an excellent user interface (see Appendix D). It is small, discrete and simple to use. We believe that independently living elderly persons may not be happy to wear a device with the same dimensions as the s911 bracelet Locator as a wrist watch. Earlier in the section on existing Telecare systems we mentioned Tunstall’s minuet watch. The minuet watch is a Swiss made watch containing a radio transmitter that can trigger a PER alarm in the same fashion as a standard medical pendant. The Tunstall minuet has the following dimensions. 46 * 38 * 13 mm (L * W * D ). Weight 24g The minuet watch is close to the ideal form factor for a wrist wearable PER alarm in our opinion. However the technology is not available at time of writing to fit all the necessary components for a mobile GPS personal tracker with 2 way voice communication into a device with similar dimensions to the minuet. iCare believe that in the future a Bluetooth Panic iCare Business Plan 2009 - 2010 Page 55 of 105 Button in a watch format may become the main mobile telecare user interface( when combined with a Bluetooth and GPS enabled mobile phone). It is the opinion of iCares technical department that the both the s911 personal and bracelet locators match and in fact exceed the requirements for a mobile PER alarm. We feel that the cost of these devices may be in excess of the ceiling at the upper end of what the majority of the elderly independently living market is willing to pay. People suffering from Alzheimers or who are less capable of living independently and elderly people in higher socio economic groups may be a fertile market for these devices. They are high quality and feature rich. The Geofence and tamper detection capabilities of the bracelet are noteworthy. These features could be useful for nursing home residents who are at risk of going missing or who forget to wear the bracelet. Laipac technology are a Canadian based company. Laipac was actually founded by a Taiwanese national and they also have an R&D centre in Taiwan. One of the main international resellers of Laipac devices is an Irish based company, Global Defence Security Systems ( www.globaldefence.ie ) . Global Defence are Laipac’s main reseller in the South and South-East Asian markets and have negotiated several big deals with organisations in the region. iCare have spoken to Global Defences CEO Mr. Cormac Kelly. Mr. Kelly said that while interest has been expressed by an organisation dealing with Alzheimers patients in the Irish market there has been no sales of s911 products to Irish Telecare providers. Laipac also have a wireless alarm system called the The LP-1500. This wireless alarm system includes key ring panic buttons and GSM dialer so the user does not have to have a fixed land line. Therefore Laipac can provide technology solutions for a company who is looking at the homebased and mobile telecare markets. GlobalSat Technology Corporation is a Taiwanese based company who specialise in GPS products such as Receivers and Trackers. GlobalSat products are resold in the UK and Ireland through a company called Easy Devices. iCare have been in contact with Mr. Sahail Chohan at Easy Devices. Mr.Chohan has informed us that Easy Devices could support iCare with regard to devices (current and those in the pipeline) that would be useful for our purposes. He recommended that the TR-203 seems the most appropriate as it is small and has voice monitoring capabilities. iCare initially were interested in GlobalSat’s TR101 and TR102 devices iCare Business Plan 2009 - 2010 Page 56 of 105 which share the some basic functionality with the s911 personal locator mentioned above. The TR101 only supports GSM while the TR102 supports GPRS. iCare note that there have been reports of the GPRS capability not working ( see www.gpspassion.com for further details ) on the mobile networks in several European countries .The TR101 has been available since 2005 and the TR102 was released in 2006. The TR102 device was carried by the electronics retailer Maplins and the online retailer Expansys but this no longer seems to be the case ( possibly due to issues with GPRS ).The more limited functionality of theTR101 could be suitable for the needs of the Irish mobile telecare market. It communicates the devices position using SMS but is also capable of being used as a mobile telephone. The TR101 was considered as a candidate for iCares entry level mobile PERS unit. The TR101 is over 4 years old at this stage. Therefore iCare would need to weigh up the risks between selling a device which may have had its faults ironed out over the course of its lifespan versus a device that is no longer supported by its manufacturer. For example if the mobile operator made a change to its network which prevented the unit from performing the company would be unlikely to release a new fix. Easy Devices also informed me that there will soon be a replacement device for the TR-102 ( the device that suceeded TR101) with more advanced features. One particular weakness of the GlobalSat products is that the TR101 and TR102 send the PER alert via SMS only. The SMS contains the devices GPS coordinates (longitude and Latitude) and the recipient can enter these coordinates into Google Maps or MS Virtual Earth to display the devices location. This method is dependent on the mobile operators network and SMS message centre sending the message in a timely fashion. iCare would prefer if a Voice channel could also be opened up and a voice call put through to the specified emergency phone number when the user presses the emergency button as well as sending the devices location by SMS . Easy Devices are capable of providing complete tracking packages for iCare’s monitoring centre. They will soon be offering the services with voice monitoring and recording. Similarly they can also assist were we to partner with other telecare providers. iCare are curious to find out details of the replacement for the TR102. While we see value in the TR203 device in terms of its function and size the lack of 2 way communication is not ideal. The TR203 could be used in addition to the elderly person’s mobile phone. iCare iCare Business Plan 2009 - 2010 Page 57 of 105 believes that while it may be able to obtain discounts on the wholesale purchase of TR203 units from Easy Devices it might not be able to undercut them on the retail price of the item. The retail price of £229 per unit is too high for the iCare’s potential customer base in the Ireland. If we contrast the TR203 with the SmartlinQ phone, The SmartlinQ has a lower retail price and can also be used as a mobile phone. Holux are a Taiwanese company and have built a good reputation in the entry level and mid range GPS Receiver markets with popular products such as the GPSSlim236, M-1000 and the M-241 Logger. They also have 2 offerings in the personal tracker market both using the MTK chipset. Starsnav and Teltonika appear to have good reputations amongst the GPS Tracking community online. Unfortunately iCare have not been able to get any pricing information from either company. Teltonika also manufacture GSM gateways so if a relationship was established with Teltonika iCare could also look into purchasing hardware, support and knowhow from them for the purposes of setting up our own Call Centre at a future date. Ms Aileen Huang Marshall at StarsNav informed iCare that StarsNav are currently in negotiations with an Irish company for distribution of their products to the Irish market. Verify and Locate offer 2 easy-to-use, personal tracker handsets on their corporate website , the SAZO GSM and the SAZO GPS. They appear to be in the process of setting up their own monitoring service under the Soloaid and Soloalert brands through the branded websites, Soloaid.co.uk and Soloalert.co.uk. All enquiries on the latter website are directed to Verify and Locate’s Head Office in Middlesex. The Solo Mini is advertised on the Solo branded websites but not on the main Verify and Locate website. The SAZO GPS appears to report location via SMS. A person can send an SMS to the device and obtain the devices position in an SMS response. Each one of these requests costs 25p. The customer will be charged for a minimum of 10 locations per month. The credits can be purchased in bundles of 20 locations, 100 and 220 locations for £8, £35 and £55 credits respectively. Verify and Locate also have a mobile tracking service called Loc8me which reputedly can locate any mobile phone in the UK, accurate to 5m for GPS enabled and accurate to 50m for non-GPS enabled phones. The mobile must be registered to use the service at a one off cost of £25 or a monthly registration fee of £5. iCare Business Plan 2009 - 2010 Page 58 of 105 iCare would be interested in conducting a trial with both the Solo Mini and the SAZO GPS on the Irish market. However Verify and Locate’s pricing model is not compatible with iCare’s business model. To conclude the report on Personal Tracking devices we will briefly mention the high end of the market. There is no need to cover this area in great detail as the prices for the hardware and monitoring services place them firmly in the Lone worker monitoring space. They are too expensive for iCare’s target customers. The first product iCare looked at is the My-Bodyguard which is manufactured by a company called My-Bodyguard BV based in the Netherlands. The My-Bodyguard units and monitoring services are resold in Ireland by a company called Safecom ( www.safecom.ie ). Safecom is an independently owned Irish company that has been in operation since 2002. They specialise in the lone worker protection and vehicle tracking markets. They are also active in the Telecare sector. They refer to their Telecare offerings under the heading of Call Alarms. They sell the Intellink medical pendant, fixed alarm system. They also sell the Concept Grouped Call system. Both of these are Chubb products. iCare did not contact Safecom as they are an obvious competitor for us on the Irish market. iCare were made aware through a personal contact in the security industry that the devices are priced at €700 and monitoring is priced at €375 per year. The specs for the My-Bodyguard device as listed on the Safecom website are surprisingly similar to the specs for the Teltonika GH1202. Perhaps they are the same basic device with the addition of a Sarantel antenna on the My-Bodyguard . My-Bodyguard BV also have a product called My-SOS. iCare suspect that this could be a stripped down version of the My-Bodyguard targeted at the PERS/Telecare market but were unable to get this information from the manufacturers. The Second range of products at the High-end are from a company called Twig. Twig is the “telematics” wing of a company called GeoSentrics that is based in Salo, Finland and Amsterdam. Their products the protector and the discovery are high-performance combined mobile phones and personal trackers. iCare Business Plan 2009 - 2010 Page 59 of 105 6.6 Commercial tracking services GPSGate GPSGate is one of the market leaders in the provision of commercial GPS tracking devices. GPSGate Server is a web based tracking platform developed by Franson Technology. The GPSGate server is capable of tracking multiple GPS enabled devices such as mobile phones, GPS locators and PDAs. It has 2 main applications. Vehicle Tracker Buddy tracker GPSGate offers 2 server solutions Subscription service hosted by GPSGate ( SaaS) Server software ( 1 licence per user ) The basic subscription fee costs €37.50 per month for 5 user accounts. Each mobile phone or device being tracked requires a separate user account. Additional user accounts can be added for €7.50 per month. If one of GPSGate’s customers wished to host GPSGate server on one of their own servers they can purchase a one year, 5 user licence for €79. One year of email support is available for €399. iCare spoke to GPSGate CEO , Mr. Johan Franson , with regards to iCare’s requirement for a tracking service. iCare does not require real-time , continuous tracking of its customers. Our customers need to be located only from the time they call for assistance until the time assistance has arrived. Mr. Franson said that it would be possible to get a special pricing suited to our customers low usage patterns for the tracking service. iCare’s proposed rate of €10 per tracked customer per year was not rejected by Franson. However this rate would be dependent on volumes of users to make this pricing worthwhile for Franson. Also it was based on a rate of 5 locations per month per user. GPSGate has an excellent reputation amongst the GPS Tracking industry. From what iCare can gather the GlobalSat range of devices works well with GPSGate but there seems to be problems getting them to work with other custom made solutions. iCare Business Plan 2009 - 2010 Page 60 of 105 iCare believe that the pricing model and functionality of GPSGate Server is well suited to an organisation who needs reliable, continuous real time Tracking of valuable assets, vehicles and lone workers. However until we obtain a large number of customers their service is not an economical option for iCare. Other Commercial Tracking Services There are a number of other proprietary tracking services offered by the handset manufacturers. Laipac technologies offer a tracking service called LocationNow. Location now is an additional service with a monthly subscription fee. GlobalSat offer a free web based tracking service called GSTraq. They also have a mobile version of this service which can be accessed from a smartphone or PDA. Loc8me is a mobile phone tracking service offered in the UK by SAZO/Verify and Locate. There pricing model includes an upfront registration fee and then a fee of 25p for every location. Phantom Eye in Australia and MTN in South Africa provide similar services with a per location pricing model and a minimum charge per month. iCares service offering is for location provision in the event of a call for assistance only. The price per location models are more suited and clearly marketed to parents keeping track of their children. iCares chosen provider for the mobile handset, SafelinQ already provide a location service for their SmartlinQ and QlinQ mobile phones. iCare have spoken to SafelinQ’s UK office and they informed us that the handsets must be used in connection with their locating service platform ( SafelinQ ) 6.7 Free mobile tracking services There are a number of open source, free to use, mobile phone tracking applications. iCare have looked at 2 of these applications. LocateMe Instamapper iCare Business Plan 2009 - 2010 Page 61 of 105 Both of these services are powered by Google Maps. LocateMe is intended to be used for personal mobile phone tracking. A Java midlet is installed on the mobile phone handset. The server application is installed on the user’s web server. The LocateMe server is available in PHP/MySQL or .NET implementations. Instamapper also requires a Java midlet to be installed on the mobile handset. In contrast to LocateMe Instamapper is a free hosted service. That is the developers of Instamapper host the application free of charge to the user. How long this will continue is unknown however people who are happy with the application can make a donation using PayPal to pay for its continued support. Instamapper at present will only work on a GPS enabled phone. The current version of the Instamapper midlet is not compatible with external Bluetooth receivers. We must also mention the Google Latitude service which Google has made available to use free of charge. This allows Smartphone users to share their location and check the location of their friends. This application is more suited to Smartphone users for social networking then for iCare’s customers. J2me applications such as LocateMe can be installed on any mobile phone which supports Java. An entry level phone such as the Nokia 2600 can support Java. It also has support for Bluetooth which means that it can access GPS readings through a Bluetooth GPS receiver. The phone also supports GPRS so if fitted with a data SIM it could upload GPS coordinate data to a webserver. In theory this means that the Nokia 2600 could be used as a combined GSM mobile phone and GPS personal tracker. When the entry level phones come preenabled for GPS it will make this outcome more likely. 6.8 DIY Tracking Solutions iCare believes that the Nokia 2600 combined with a Bluetooth GPS Receiver is a workable DIY mobile phone tracking solution. However it is not a workable solution for iCare’s customer base. This verdict is based on 2 factors. The fact that the solution needs the user to carry 2 devices is not ideal from a usability point of view especially considering that our users are elderly. This means an extra device that needs to be charged in order for the solution to work. The fact that the receiver communicates to the phone over the Bluetooth protocol iCare Business Plan 2009 - 2010 Page 62 of 105 means that the phone will have to have Bluetooth switched on permanently. This will lead to the handsets battery being consumed more rapidly. Ultimately iCare customers require a single, easy-to-use handset. When entry level GPS enabled phones become the norm then iCare will look at incorporating these handsets into our service. 6.9 Data Plans All tracking services recommend the user to have a data plan. The charge for uploading and downloading data on a mobile phone without a data plan can be very expensive. Mobile phone tracking in real time typically works by taking readings from the GPS receiver and uploading it to a website over GPRS. Continuous mobile phone tracking can generate a considerable amount of data. Data transfer over GPRS without a data plan can be very expensive. 02 currently offer a 250mb data plan for 7.50€ per month on contract. This plan would be suitable for mobile phone tracking. For a user on pre-paid phone O2 charges 99c per day for any data up to 50mb. This would make tracking on a basic pre-paid SIM very expensive. It is for this reason that iCare will be negotiating a wholesale data plan with the mobile operator. All our customers mobile phones will be fitted with data SIMs and the data sent from the individual handsets will be paid for at iCare’s wholesale data rate. iCare will pay the monthly subscription charge on the individual SIMs. The costs will be recouped from the customer’s service plan with iCare. All calls made on the customer’s phone will be charged to the customer directly by O2. We will cover this in some more detail in the financial section. 6.10 Google Maps Perhaps the most famous mapping service on the web is Google Maps. This is a free to use (for non-commercial purposes) service. iCare do not expect Google to charge customers directly to use this service. It is possible that Google may gain revenue in the future from displaying location based advertisements on the map. For example a Google adwords advertisement could appear for Dublin City University School of Business when Google maps renders a map of the Glasnevin/Whitehall area. Google could display an advertisement for Ikea when Google Maps renders a map of Ballymun. iCare Business Plan 2009 - 2010 Page 63 of 105 Google publishes an API for Google Maps enabling web developers to embed mapping functionality in their websites. iCare initially planned to use the free Google Maps service to display the location of the elderly person based on their devices GPS coordinates when the call for assistance arrives. The call centre operator could quite easily distribute the elderly persons coordinates to the responder/carer by SMS or Email. Google Maps is free of charge for use and is accessible and very easy to use for anyone who has internet connectivity through their PC or mobile handset. All the user has to do is enter the relevant GPS coordinates into the Google maps search window and Google maps will serve back a map displaying the location of the supplied coordinates. 6.11 Risk Factors Future demand for dedicated personal tracking devices such as those we have spoken about in this section is hard to gauge. iCare notes that a number of devices performing similar functions that have not been successful over the last few years ( See Appendix H). Here are just a few of the potential future risks facing a company offering Location Tracking products and services. Customers purchase GPS personal locators that do not require the service of a monitoring centre. Free GPS tracking services offered by device manufacturers. The retail prices of hardware reducing. Quality of hardware increasing. A company makes a short term equipment purchasing decision based on cost (i.e. to purchase low end , unproven technology ) and the equipment causes problems and loss of customers A company offers quality hardware and the customers are not willing to pay for this quality. Entry level phones fitted with GPS as standard Easy-to-use mobile phones fitted with GPS locator and panic button as standard. iCare Business Plan 2009 - 2010 Page 64 of 105 Customers are happy to just buy a personal “sonic alarm” to attract attention for less than €10. 6.12 Conclusion iCare have rejected their original plan to design a GSM/GPS Personal alarms and have them manufactured in China. iCare will be a reseller of SmartlinQ Personal Emergency mobile phones on the Irish market. The SmartLinQ mobile phone combines the best usability features of an Easy-to-use mobile phone with all the required functionality of a GPS Personal Locator. iCare will utilise SafelinQ’s own proprietary Location service so there is no requirement to build our own custom solution or pay a commercial tracking service provider at rates more suitable to the asset/vehicle tracking market than the occasional tracking of elderly people in need of assistance. In the future iCare can extend their service to customers without SmartlinQ handsets by installing SafelinQ’s MyTraq software on other compatible handsets. iCare Business Plan 2009 - 2010 Page 65 of 105 7.0 Management Judy Li ( Company President and Human Resources Manager ) Judy Li has a very special place in the history of iCare. It was Judy’s idea, the product of many years of working in the healthcare industry that lead to the formation of iCare in 2009. Judy comes from Dalian in China and has been residing in Dublin for the last 5 years. She speaks Mandarin as well as fluent English. Judy has a very impressive academic background, graduating with International Business BA Degree from American College Dublin on 2008, She holds a degree in Computing Information Management from LiaoNing Financial University in China and is about to graduate from the MECB program in DCU. Judy is currently a class representative for the MECB program at DCU. Judy has nearly 5 years experience in the health care industry, predominantly in the area of care for the elderly. Judy as well as being the company president will act as the Public Relations Officer for the company. Judy’s other position will be as HR and training manager. Judy will have responsibility for evaluating and negotiating with potential partners for the future iCare call-out service. Colm Counihan (Chief Technical and Operations Officer) Colm has 10 years experience in Application Development and Support. He has worked in the role of developer on several key projects for Irish companies such as goireland.com and international companies such as AIG. Colm has a varied educational background, graduating with a BA from NUI Maynooth in 1995 and the Graduate Diploma in IT from DCU in 1998. Colm responsibility will be to ensure that the company operates smoothly. Colm has key responsibility for the evaluation and acquisition of technical products and services for iCare. Colm is iCare’s manager for the companies relationships with our handset provider, SafelinQ, our hosting company , Digiweb and our network operator , O2 Ireland. iCare Business Plan 2009 - 2010 Page 66 of 105 David Mc Cague (Chief Marketing Officer) David graduated with a B.A. in Business Studies (specializing in eCommerce) from DCU in 2008. He is due to graduate from the MECB program at DCU in 2009. He has worked with companies such as Intel Ireland, focusing on training and induction issues. David will head our Sales and Marketing department. David will be focusing on market trends, dealing with customer feedback, coordinating promotion and advertising to our customers and the general public. Tolu Akintokun (Chief Financial Officer) Tolu hails from Nigeria and has lived in Dublin for the last four years. He has previous experience in the Nigerian financial industry having worked in numerous commercial banks namely Diamond bank, Intercontinental bank and Standard Chartered Bank. He also holds the Qualified Financial Adviser(QFA) designation from the Institute of Bankers in Ireland and speaks fluent English. Tolu graduated with a B.sc (Hons) in Mass Communication from the University of Lagos and holds a graduate Diploma in Management from the ICM, UK (2008). He is soon to receive a Master in E-Commerce from DCU 2009. Tolu will act as Chief Financial Officer for iCare. His role within the business includes drawing up cash flow statements, seek funding, meeting reporting requirements and regulating iCare’ expenditure to ensure a healthy cash flow for the company. iCare Business Plan 2009 - 2010 Page 67 of 105 8.0 Finances 8.1 Financial Objectives 1. iCare will aim towards closing with a positive cash flow position by the end of the first financial year. 2. iCare will be a profitable business by end of year 2. 3. No more than 30% of revenue will be generated from sale of devices while the balance of 70% will come from monthly monitoring fees. 8.2 Assumptions Subscribers to the service will sign a one year contract hence there will be a continuous generation of monitoring fees of €20 from each user per month for the next 12 months at the minimum. This is aside from the once-off device procurement fee of €150. VAT will not be applied on services due to Revenue exemptioni Tax has not been applied on profit re P&L The business will be managed by the 4 employees who also will double as directors. €12,500 funding provided by each employee will entitle each to 25% stake in iCare. 8.3 Funding iCare as a business looks to generating its initial funding by applying for the Enterprise Ireland Innovation Fund/equity business start up grant. Success with this will avail the business with a substantial amount in start up funds which could rise up to €150,000. As it is not certain that this application will be successful, a more definite source of funding has been identified. This include personal investments of €12,500 from all four directors adding up to a total of €50,000. A bank overdraft not exceeding €1,000 will also be obtained from the bank to improve cash flow during the first financial year. iCare Business Plan 2009 - 2010 Page 68 of 105 The business plan has therefore been drafted with consideration of the funding limitations. The initial investment is thus €50,000 from all four employees/directors to be combined with a bank overdraft. The Bank of Ireland, which has a bountiful business start-up package will be appointed as bankers and has been identified as the potential source of the overdraft. The overdraft will be in place for a period of 24 months in anticipation of unforeseen circumstances and will be negotiated at an interest rate not exceeding 10% per annum. There is likelihood for additional funding to be raised from venture capitalists upon successful take off of the business. This will be explored after the first year of operation onwards. Funds thus generated will be utilized in modernizing and expanding the business to the standard in existence at that time. The financial projections of the business does not however reveal any need for this as cash flow and P&L both indicate positive positions by end of second year of operation. 8.4 Expenses Staff Cost All directors will be paid a monthly sum of €1,670 for a 40 hour week during the first year of operation. This adds up to €20,040 each with an overall annual total of €80,160. Increase in staff remuneration after the first year of operation will be aligned with the financial success of the business. This has been pegged at an increase not exceeding 20% per annum. The business understands the need to maintain a positive cash flow especially with consideration of the net positive cash flow position of €8,905 at end of first financial year. iCare Business Plan 2009 - 2010 Page 69 of 105 Professional Fees The sum of €5,000 has been set aside as professional fees for the business during the first financial year. This includes Accountant fees, Tax Advisor fees and Solicitor fees relating to the business. Adequate provision has been made for substantial increase of this amount for subsequent years. Phone Bills/Utilities All directors will be equipped with a mobile phone at a cost of €300 per annum. The total amount for this is €1,200. The call handling aspect of the business will be outsourced to Call Management Ltd. Even though the reception at the Invent Centre will handle all phone calls to the office, payment of the phone and broadband bill has been provided for at €100 per month. Marketing/Promotion Cost While the marketing director will champion the business marketing efforts, all directors will be involved in marketing activities during the first year of operation. A product launch will be conducted and €20,000 has been set aside for marketing and promotion cost including business lunches, marketing materials and public relations. Material/Technology cost Purchase of two servers at €1,000 each, total €2,000. One will be used as primary server and the other will serve as backup. Four laptops will be acquired at €600 each and €200 has been set aside for the purchase of a laser printer. Office space Office space will be sourced from the Invent centre. Our inquiries with Ms. Meave Freeman of Invent revealed that office space adequate for 4 to 5 people will cost €1,400 per month. This is inclusive of other utilities except phone and broadband but inclusive of use of board and meeting rooms iCare Business Plan 2009 - 2010 Page 70 of 105 Insurance This will cover operation of the business in the form of Public Liability Insurance at an initial premium of €3,600 per annum. Other service providers such as Call Management Ltd and SafelinQ, the GPS Location Service Provider are also insured for the services they provide. Call Centre Call back activities in the business end will be outsourced to a Call Management Ltd. from the onset. The initial cost of €160 will cater for all calls for the first 3 months when the user base is estimated to reach 150. Payment for this service is being provided for at 5% of total subscription income every month thereafter. GPS Location Service Provider The user location aspect of the business will also be outsourced to SafelinQ. Payment for this service will be at a rate of 10% of total monthly subscription. Postage Goods bought by users will be posted to them nationwide through An Post. Each item posted will cost €5 and will be delivered to the addressee within 2 business days after despatch. SMS Service Provider The user activation of the device involves the transmission of data across the GSM network. This has been outsourced to O2 a local mobile phone service provider. Payment for this service will be remitted at a rate of 20% of total monthly subscription. 8.5 Pricing Equipment will be sourced on a just-in-time procurement basis at a unit cost of €100. The device will only be ordered from the supplier upon user request being generated. This amount having been paid by users would be used to pay the supplier of the device. No storage cost will be incurred as minimal inventory will be held within the office space. Sim cards for the primary device will be acquired from O2 free of charge while a wholesale data plan price will be applied for every new sim activated. Total cost of each unit of the device will be €100 to the business and sold onwards to users at €150. While a contract of 12 months will iCare Business Plan 2009 - 2010 Page 71 of 105 be in place for each device sold, a monitoring subscription fee of €20 will be applied upfront each month by direct debit. 8.6 Sales Projection iCare’s market will be based on the established telecare market which numbers between 60,000-70,000 people in Ireland. iCare will focus primarily on a select segment within this category, mainly servicing the more mobile demographic. These are early stage sufferers of dementia who still have a high degree of independence and mobility. This translates into approximately 4,000 new cases diagnosed each year. While taking into account other service providers currently in the market and potential future entrants, the business aims to capture 7,500 or about 10% of the estimated market size within five years of operation. iCare Business Plan 2009 - 2010 Page 72 of 105 This has been broken down in the following manner. Estimated No. of Customers Cumulative No. of Customers Year 1 900 900 Year 2 1,200 2,100 Year 3 1,800 3,900 Year 4 1,800 5,700 Year 5 1,800 7,500 Unit sales 2000 1500 1000 Unit sales 500 0 Unit sales Year 1 Year 2 Year 3 Year 4 Year 5 900 1200 1800 1800 1800 Year on year Target Market growth iCare Business Plan 2009 - 2010 Page 73 of 105 5 yr User Acquisition projection 2000 1500 1000 No. of Users 500 0 No. of Users Year 1 Year 2 Year 3 Year 4 Year 5 900 1200 1800 1800 1800 5 year sales projection 8.7 First Year Sales Forecast Year 1 Sales Forecast €140,000.00 12th €120,000.00 11th 10th €100,000.00 9th €80,000.00 8th €60,000.00 7th 6th €20,000.00 5th €0.00 4th on th 1 M on th 2 M on th 3 M on th 4 M on th 5 M on th 6 M on th 7 M on th 8 M on t M h9 on th 1 M on 0 th 1 M on 1 th 12 €40,000.00 3rd M 2nd 1st Monthly sales revenue forecast and Chart (1yr) Month 1 2 3 4 5 6 7 8 9 10 11 12 Unit Sold 50 50 50 50 50 50 100 100 100 100 100 100 Monthly sales forecast and Chart (1yr) iCare Business Plan 2009 - 2010 Page 74 of 105 8.8 Annual Trading Profit and Loss Sales Less Cost of Sales Year 1 Year 2 Year 3 € € € 226,500 552,000 1,008,000 90,000 120,000 180,000 Gross Profit 136,500 432,000 828,000 Less Expenses Equipment 4,600 0 1,000 Staff costs 82,565 98,880 126,000 Rent & rates 18,000 18,000 18,000 Postage 4,500 6,000 9,000 Phone & Broadband 2,400 2,400 2,400 Professional fees (acct/legal) 5,000 12,900 14,000 Call centre 5,130 18,600 36,900 GPS Location Services 9,900 37,200 73,800 Maintenance & repairs 19,800 74,400 147,600 0 0 0 20,000 26,000 18,000 Insurance 3,600 4,320 6,000 Sundry expenses 1,500 1,800 2,400 0 0 0 600 0 0 Contractors Others Advertising/promotion Loan repayment Interest & bank charges Total expenses 177,595 300,500 455,100 Net Profit -41,095 131,500 372,900 iCare Business Plan 2009 - 2010 Page 75 of 105 P&L Projections 250000 200000 Profit in € 150000 100000 50000 P&L Projections 0 -50000 0 1 2 3 4 -100000 Years of Operation 8.9 Implementation Milestones Business becomes profitable within 2 years of Operation Positive cashflow position by end of 1st years Acquire 2000 users within 3 year Figures Profit and Loss Year 1 -€49,575 Year 2 €78,700 Year 3 €208,752 iCare Business Plan 2009 - 2010 Page 76 of 105 8.10 Cash Flow Projections (Yr 1, Yr2, Yr3) CASHFLOW PROJECTIONS iCare Year 1 to 3 Opening balance Year 1 Year 2 Year 3 € € € 50,000 0 0 127,500 180,000 270,000 Other income 99,000 372,000 738,000 Total income 276,500 552,000 1,008,000 90,000 120,000 180,000 4,600 0 1,000 80,160 96,000 120,000 2,405 2,880 6,000 18,000 18,000 18,000 Phone 2,400 2,400 2,400 Postage 4,500 6,000 9,000 Sundry Expenses 1,500 1,800 2,400 Professional fees 5,000 12,900 14,000 Call centre 5,130 18,600 36,900 SMS carrier (O2) 9,900 37,200 73,800 19,800 74,400 147,600 0 0 0 20,000 26,000 18,000 3,600 4,320 6,000 600 0 0 0 0 0 267,595 420,500 635,100 8,905 131,500 372,900 8,905 140,405 140,405 513,305 Incoming Initial investment Sales Outgoing Purchases/Materials/Cost of Sales Equipment Employee wages PRSI Rent & rates Contractors SMS Service Provider Others Advertising/promotion Other Insurance (Public Liability Insurance) Interest & bank charges Loan repayments Total expenses Net cash flow Balance B/F Cumulative Cash Flow iCare Business Plan 2009 - 2010 8,905 Page 77 of 105 References Books, White papers, articles, press releases and Journals: Jeff Thurston, Thomas K.Poiker, J.Patrick Moore(2003), Integrated Geospatial Technologies - A Guide to GPS, GIS and Data Logging, Wiley & Sons Brownsell S, Hawley M (2004), Fall detectors: do they work or reduce the fear of falling? ,Housing Care & Support, Feb 7, pp 18-24 Thurston, Jeff; K.Poiker, Thomas; Moore, J.Patrick (2003); A Guide to GPS, GIS and Data Logging, Wiley & Sons; Integrated Geospatial Technologies – O’Shea, Eamon Dr; (2000); The Costs of Caring for People with Dementia and Related Cognitive Impairments; Centre for Ageing Studies O’Shea, Eamon Dr; (2007); Implementing Policy for Dementia Care in Ireland; The Alzheimer’s Society of Ireland O’ Shea, Eamon Dr; (2003); Costs and consequences for the carers of people with dementia in Ireland. Dementia, 2, 2, pp 201-219. Hajjar, Ihab M, et al; (2007); The Use of the Internet in Geriatrics Education: Results of a National Survey of Medical Geriatrics Academic Programs; Gerontology & Geriatrics Education, Vol. 27(4) 2007 Colvin, Jan, et al; (2004); Caregivers of Older Adults: Advantages and Disadvantages of Internet-based Social Support; Blackwell Publishing 2004, Family Relations Vol. 53, No. 1 Madan, Sonvira, et al; (2002) Dedicated to elderly care: Geriatric Medicine on the Internet; Vol. 45, No. 6, 793–801 Beauchamp, Natasha, et al; (2005) Worksite-Based Internet Multimedia Program for Family Caregivers of Persons With Dementia; The Gerontologist Vol. 45, No. 6, 793–801 Older people enjoy longer, healthier and more active lives; Office for National Statistics (UK) Fahey, Tony, et al; (2007) A Social Portrait of Older People in Ireland Social Inclusion (Building an Inclusive Society); The Economic and Social Research Institute Tullet, Michael; (2005) Admissions to Skilled Nursing Facilities From Assisted living Facilities; Journal of Nursing Care Quality, Vol. 20, No. l,pp. 16-25 McKeown, Fiona; (2007) The Experiences Of Older People On Discharge From Hospital Following Assessment By The Public Health Nurse; Journal of Clinical Nursing 16, 469– 476 iCare Business Plan 2009 - 2010 Page 78 of 105 Kharicha, Kalpa, et al; (2007) Health risk appraisal in older people 1: are older people living alone an ‘at-risk’ group? British Journal of General Practice, April 1; 57(537): 271– 276. Sourced Xinhua; Aging population poses tough challenges for China; http://www.chinadaily.com.cn/english/doc/2004-06/09/content_337985.htm Accessed on the 03/06/09; Posted: 2004-06-09 10:56 Merz, Ruth D; Forrester, Mathias B; (1997); Do older adults want playgrounds? McGivern, Yvonne; O’Neill, Desmond; (2007) Irish Ageing Studies Review, Independent Living; Housing, Transport and Technology The Irish Gerontological Society; Vol 1, Issue 1 (2007) McCrone, Paul et al; (2008); The cost of mental health care in England to 2026; King’s Fund; ICT & Ageing; European Study on Users, Markets and Technologies World Research Centre, empirica & WRC 10/2008ecutive Irish Financial Report; Annual Report and Financial Statements 2008 Websites: World Health Organisation CURRENT AND FUTURE LONG-TERM CARE NEEDS http://www.who.int/chp/knowledge/publications/ltc_needs.pdf Alzheimer Society of Ireland http://www.alzheimer.ie/eng Alzheimer’s Society (UK) http://alzheimers.org.uk The American Geriatrics Society http://www.americangeriatrics.org iCare Business Plan 2009 - 2010 Page 79 of 105 Information on Irish Population Trends http://www.watsonwyatt.com/news/featured/wef/ireland.pdf Population Queries http://esa.un.org/unpp/p2k0data.asp SmartLinQ Mobile Phone – http://www.safelinq.co.uk/gb/consumer/products/smartlinq/index.html O2.ie Payment Plans – http://www.o2online.ie/wps/wcm/connect/O2/Home/Explore+Services/Price+plans/ iCare web hosting provider http://www.digiweb.ie Phillips Telecare products http://www.lifelinesys.com/ Tunstall Group http://www.tunstall.co.uk Emergency Response LTD - Irish telecare provider http://www.emergencyresponse.ie Task Community LTD - Irish Telecare provider http://www.taskltd.com Commission for communications in Ireland http://www.comreg.ie Vodafone Ireland Network coverage map https://www.vodafone.ie/coverage/ Age Action Ireland iCare Business Plan 2009 - 2010 Page 80 of 105 http://www.ageaction.ie/ Department of Social and Family affairs - Telephone Allowance http://www.welfare.ie/EN/Schemes/HouseholdBenefits/Pages/hb.aspx Matomobile.co.uk - UK retailer of Easy-to-Use mobile http://www.matomobile.co.uk/ O2 online shop - Nokia entry level phones http://www.o2online.ie/wps/wcm/connect/O2/Home/Shop/ Carphone Warehouse - Irish and UK high street mobile phone retailer http://www.carphonewarehouse.ie/ U-Blox - manufacture of GPS modules http://www.ublox.com/ FCC - Enhanced 911 services http://www.fcc.gov/pshs/services/911-services/enhanced911/Welcome.html Marketplace for technology products particularly those manufactured in China http://www.globalsource.com GPS Tracking Devices : Laipac Technologies - manufacturers of s911 http://www.laipac.com GlobalSat Technologies http://www.globalsat.com.tw/eng/index.htm Holux http://www.holux.com/JCore/en/home/index.jsp Verify and Locate / SAZO iCare Business Plan 2009 - 2010 Page 81 of 105 http://www.verifyandlocate.com/ Teltonika http://www.teltonika.lt/en/ StarsNav http://www.starsnav.com My-Bodyguard BV http://www.my-bodyguard.eu/uk/index.php GeoSentric /Twig /Benefon http://twigworld.com/pages/en/home.php Tracking Services: LocationNow http://www.locationnow.com GPSGate http://www.gpsgate.com/ GSTraq http://traq.gstraq.com LocateMe http://www.websmithing.com/portal/Default.aspx Instamapper http://www.instamapper.com/ Google Latitude http://www.google.com/intl/en_us/latitude/intro.html Others: iCare Business Plan 2009 - 2010 Page 82 of 105 Google Maps http://maps.google.com/ SafeGuardian http://www.claytoncommunications.com/ Resellers: GlobalSat's resellers in the UK & Ireland http://www.easydevices.co.uk Laipac resellers in Ireland and South East Asia http://www.globaldefence.ie My-Bodyguard resellers in Ireland http://www.safecom.ie B2C GPS product retailers: Semsons http://www.semsons.com Expansys http://www.expansys.ie Maplins Http://www.maplins.co.uk Digiweb - database server hosting http://hosting.digiweb.ie/virtual-servers/ VAT Rates: Medical & Health Ambulance services http://www.revenue.ie/en/tax/vat/rates/decision-detail-02531.h iCare Business Plan 2009 - 2010 Page 83 of 105 Primary Research Interviews Pat Keogh (CEO) Call Management Karl Quinn, Commercial Development Associate , National Digital Research Centre(NDRC ) John, Owner of an alarm company Terry Kelleher, Home Carer Interview: Dr.Mark Hawley, head of medical physics and clinical engineering at Barnsley University Interview: Sile, Public Health Nurse, Larkhill Medical Centre, Dublin 9 Interview: Susan, Chief Organiser of St.Gabriel’s Active Retirement Group, Clontarf, Dublin 3 (voluntary organisation) Caroline, Public Health Nurse, Botanic Avenue Medical Centre, Dublin 9 Interviewee at Age Action Ireland preferred not to supply name. Zhenxing Zhang, Research Masters Student working with NDRC at Dublin City University Dr. Mary Kirwan, Nursing school, DCU Dr. Pat Hartigan, CEO Securecom Technologies Cormac Kelly, CEO Global Defence Security Systems Participants 1- 7, potential users (Interviews undertaken between 29/6/09 – 16/07/09 (see Appendix I for further details ) iCare Business Plan 2009 - 2010 Page 84 of 105 Appendix A – SmartLinQ Detailed Specification General Dimension (mm - H/W/D) Weight (g) Hardware GPS baseband GSM band Receiver Speaker Indicator LED x3 Keyboard backlight Vibrate mode GSM Antenna GPS Antenna Memory System interface Earphone interface RF Test Interface Temperature Software Ring tone Voice codec Two path audio GPS OTA Motion sensor Speed sensor iCare Business Plan 2009 - 2010 86 x 46 x 16.8 mm 72 g SIRF GSC3F Quad band GSM 850/900/1800/1900 20 x 11 mm 20 x 11 mm Charge LED GSM status indicator LED GPS status indicator LED LED - Navy blue Yes Internal antenna Internal antenna 32M bits FLASH + 16M bits RAM Proprietary 2.5 mm jack For use by mobile network operators for FR network testing. Normal working conditions: -10 to 55 C Limited working conditions: 55 to 65 C 16 channel polyphonic MIDI for incoming calls FR, EFR, HR, AMR Earphone and Receiver SiRF Star III chipset Receive 20 channels, L1 1575.42 MHz, C/A code 1.023 MHz chip rate DGPS accuracy 1 to 5m, typical 0.05m/s Acquisition rate (TTFF defined at 95% of first position local station) Standard GPS mode: Hot start <1 second, average in open sky Warm start <38 second, average in open sky Cold start <42 second, average in open sky Over the air command settings from the SafeLinQ server using the SafeLinQ proprietary protocol. Sends out alert information when activated and shock is detected. Sends out alert information when activated and speed threshold is met. Page 85 of 105 Appendix B – iCare Monitoring Centre Process Start Of Process Customer decides to use our service Information is sent to our Database Carer inputs users Information onto our website/ Database Device sends out a SMS message with a unique identifier and last known GPS location Call Center contacts the user. Customer feels that they’re in trouble and presses the button on the device. Call centre, assesses if button pressed by accident Yes Call Cancelled No Call Centre assess the nature of the difficulty, While examining the profile If medical emergency No Contacts designated Point Of Contact, with GPS Data Accessing the Database Yes Contacts the emergency Services with medical profile and last known GPS Call centre maintains contact with user until Carer and Emergency services arrive upon the scene iCare Business Plan 2009 - 2010 Once confirmation has been given by the carer that situation is at hand. CC terminates the connection Page 86 of 105 Appendix C – Telecare Alarm – High Level System Diagram iCare Business Plan 2009 - 2010 Page 87 of 105 Appendix D – Telecare Alarms – Existing Technology Big Button Medical Alert Telephone Typical Medical Pendant alarm with necklace attachment Lifeline 400 – base unit with Hands-free, 2 way communication connecting the end user with the monitoring centre. Can accept inputs from a number of different sensors ( see left ) Fall Sensor – can integrate with base unit such as Lifeline 400 iCare Business Plan 2009 - 2010 Tunstalls “minuet” wristwatch Medical pendant. Carbon Monoxide detector - can integrate with base unit such as Lifeline 400 Page 88 of 105 Appendix E – Mobile Network Coverage in Ireland (Vodafone) 3G 3G/GSM(GPRS) GSM(GPRS) Source: http://www.vodafone.ie/businessservices/coverage/map/ as at 24/07/09 iCare Business Plan 2009 - 2010 Page 89 of 105 Appendix F – easy-to-use and entry level mobile phone handsets Emporio Life Plus Standby time – 250 hours Emporio Life Plus(rear view) Button which can be pressed in an emergency PAYG* - £149.99 Amplicon MT5300 Loud ringtone, loud speaker volume, strong vibrating alert. PAYG - £89.99 Amplicon MT5300 ( rear view ) Single button that can be pressed in emergency *PAYG – Pay As You Go (also known as Prepaid). All PAYG prices referenced are UK prices and are UK VAT inclusive unless otherwise stated. Easy 5 PAYG - £69.99 Italian designed, easy-to-use phone for the elderly person. Useful for person who mainly uses phone to receive calls rather than make calls. Can be fitted with neck strap. Weighs : 60g iCare Business Plan 2009 - 2010 Page 90 of 105 Binatone Big Button Orange backlit large display, easy to read. Cheapest phone in the “easy to use” market segment PAYG – £59.99 Rear view Notepad Nokia 2680 Bluetooth , Java, GPRS, Camera, FM Radio PAYG - €59 plus €50 call credit iCare Business Plan 2009 - 2010 Doro Phone Easy 388 Black buttons against white background, buttons are easy to see. Rear view Emergency button PAYG - £89.99 Nokia 2600 Bluetooth , Java, GPRS, Camera, FM Radio PAYG - €49 plus €50 call credit Page 91 of 105 Appendix G – GPS Trackers Low-end Referred to as the TK102 Retail price : €60 - €70 ( not including shipping or tax ) Sirf III Chipset(GPS) , GSM/GPRS module ,Voice Monitoring, Geofence, Movement Alert, OTA configuration Referred to as the CVHS-G42 Retail price: €80 - €120 GPS, GSM, GPRS, Geofence. Device claims to allow 2 way voice communication. It is small, light and the visible loop design above indicates that it can be worn on a key ring or necklace. Mid-range Laipac Technology S911 – Personal Locator SOS Panic button , GPS, GSM, GPRS, Geofence, 3 speed dial buttons, 2 way voice communication, GSensor to detect for impact , falls etc., over speed alert. Power management - the device shuts off the GPS receiver if it has not been moved for a period of time. Optional battery upgrade. RRP - €220 S911 – Bracelet Locator SOS Panic button , GPS, GSM, GPRS, Geofence, Tamper detection, 2 way voice communication, Accelerometer to detect for impact , falls etc., over speed alert. RRP - €380 GlobalSat Technologies iCare Business Plan 2009 - 2010 Page 92 of 105 TR203 79.1 * 41.6 * 18 mm Voice monitor, GeoFence, Logger which can store over 10,000 locations, Free web tracking service (see below ) or bundled server software. Voice communication is not 2 way. Motion sensor GPS, GSM, GPRS £229 from EasyDevices including free web tracking. $199 from Semsons.com Holux Tracker 007 76 * 42.5 * 20 mm GPS,GSM,GPRS Can operate in Geofence, Continuous tracking and position lock modes. OTA administration via SMS. Configuration is also possibly by USB. Standby time – 110 hours. SOS button. No voice communication. TR102 Similar specs to the TR101 (see left ) however the TR102 supports GPRS and therefore can be tracked in realtime. Tracking solutions include bundled server software for tracking up to 5 TR102s through a single PC GPS, GSM, GPRS €170 from Expansys. £210 from EasyDevices. Holux Tracker 005 57 * 43 * 21 mm GPS,GSM,GPRS Mini USB, similar features to 007 but longer battery life time on standby – 140 hours, shorter time to charge – 2.5 hours. No voice communication. n/a iCare Business Plan 2009 - 2010 n/a TR101 115 * 45 * 22.5 mm Standby time – 100 hours. Talk time 5 – 6 hours. 1300mAh battery. 7 buttons: Power On/Off key, Emergency key, personal numbers on speed dial * 3, Lock key and Answer/Reject key. GPS , GSM £155 from EasyDevices on PAYG from Orange. £139 from Maplins. StarsNav PT-33 86 * 57 * 26.8 mm GPS,GSM,GPRS Geofence, Stop/Motion alert, Panic button. Microphone for remote voice monitoring. Device is quite bulky. n/a Page 93 of 105 Starsnav PT-35 90.5*39*15.5 mm GPS,GSM,GPS 2 way voice communication, long life battery. StarNav claims up to 3 years standby in deep sleep mode. Panic button and panic input. Stop/Motion alert. N/A Teltonika GH1202 92*44*18 mm GPS,GSM,GPS 2 Way voice communication. Geofence. Weight 80g. Panic button. Teltonika GH1201 91*44*19 GPS,GSM,GPS Very similar to the GH1202 in function. The Battery is less powerful in the GH1201. N/A N/A Verify And Locate Solo Mini ( manufacturer unknown ) – soloaid.co.uk and soloalert.co.uk , both have the same contact address as verify and locate. 43 * 35 * 17mm GPS/GSM N/A SAZO GPS – www.verifyandlocate.co.uk n/a – “size of a credit card and the thickness of a small matchbox” UK product – works on PAYG on all the UK mobile networks. Red SOS button sends SMS to all contacts with GPS co-ordinates. Geofencing capability. Stores last known position in memory and transmits in event that GPS reading cannot be obtained in an emergency. Can accept voice calls from any phone. Geofence GPS/GSM/GPRS Contradictory information on the website in the FAQ it say s £99.99 for the handset. In the pricing section it says one payment iCare Business Plan 2009 - 2010 Page 94 of 105 of £99.99 and 12 subsequent payments of £9.99 per month or a single payment of £169.99. there is a charge of 25p for each location request and the user will be charged for a minimum of 10 per month. Mobile operator charges are extra. High-end Twig Protector n/a Twig Discovery €749 with man down alert. €599 without iCare Business Plan 2009 - 2010 My-BodyGuard €700 My-SOS n/a Page 95 of 105 Appendix H – Where are they now ? SafeGuardian Wherifone G560 Clayton Communications This single button, GPS enabled personal locator and cellular phone (analog network only) was released in 2004. Its single button connected the user with a monitoring service that offered both emergency and non-emergency concierge/location based services (the nonemergency calls were charged at $1.25 per minute) It is no longer available. Wherify Wireless There have been reports about the inaccuracy of Wherify devices GPS location function. The Wherify Child Locator was marketed through Toys R’ Us. The Wherify Pendant was demonstrated at CES in 2005 but a production model was never released onto the market. Sales of the Wherifone and the Wherify watch were disappointing. Wherify Wireless merged with Lightyear Network Solutions and are now concentrating on a location based software platform. The Wherify products were intended to be worn by children and though some reviews comment that the watch was too heavy to be worn by a child (the watch could only be unlocked using a USB key). The buttons and screen (and probably the speaker volume) would mean that the Wherifone would be unsuitable for use by iCare’s target market. iCare Business Plan 2009 - 2010 Wherify Child Locator phone Wherify pendant Page 96 of 105 Appendix I – Primary Research : User Interview and Questionnaire Users Interview: Q1: What age Bracket do you fall into? 70-75 ______ 75-80 ______ 80-85 ______ Age Series1 3 3 1 0 70-75 75-80 80-85 <70 Q2: Do you live alone? Yes No Do You Live Alone 14% Yes No 86% iCare Business Plan 2009 - 2010 Page 97 of 105 Q3: How often would you have visitors/helpers? Once a week; < 3 times a week; > 3 times a week; Daily; How Many Times A Week Was The Client Visited Once a week < 3 times a week > 3 times a week Daily Q4: Did you have an alarm? Yes___ No____ Do You own Your Own Alarm Axis Title 8 6 4 Series1, 1 2 0 Yes iCare Business Plan 2009 - 2010 No Page 98 of 105 Q5: What was the reason for getting the alarm? Security ____ Fear Of Accident ____ Pressure from family/carer ____ Motivation for Alarm 1 2 Security Reasons Fear Of Accident Pressure from Family/Carer 3 Q6: Who would you contact if you need assistance? Family member___ Carer ___ Neighbour ___16 Who Would You Contact 6 5 4 3 Series1 2 1 0 Family Member Neighbour Carer 16 If the user needed to contact a neighbour(2) or carer (1), then there would also be contact made with family member iCare Business Plan 2009 - 2010 Page 99 of 105 Q7: How often would you press the button? Daily17; Once a week; Once a fortnight; Once a Month; Never; Frenquency of Use 2.5 2 1.5 Series1 1 0.5 0 Daily 17 Once a Week Once a Fortnight Once a Month Never Loneliness is the primary factor, not medical. iCare Business Plan 2009 - 2010 Page 100 of 105 iCare Business Plan 2009 - 2010 Page 101 of 105 iCare Business Plan 2009 - 2010 Page 102 of 105 iCare Business Plan 2009 - 2010 Page 103 of 105 iCare Business Plan 2009 - 2010 Page 104 of 105 iCare Business Plan 2009 - 2010 Page 105 of 105