Agenda
• Product Description
• Operation Plan
• Market Analysis
• Competitors
• Business Model
• Marketing Plan
• SWAT Model
• Future Development
Background
Up to 11KM deep
Cost per day: 150K-200K$ Salvage time: 7-14 days
Plane crashes into the ocean– The search for the black box
The Existing Box
During Flight:
This Cable feeds flight data and
voltage from plane
The Electronic boards process the
data
Flash Memory Card
CSMU – crash survivable memory unit
The Product
Receive ModeTransmit mode
101001011…
001111010…
Flash Memory Card
• Plane crashes into the ocean• Controller sorts flight data
• Controller enters waiting mode• Transmission from search ship arrives• Message says: “start transmission”
• Board switches to Transmit mode
• Modem modulates bits to electric signals• Transducer transduces electric signals to acoustic signals
• Board prepares file and sends it to modem
T/RController
Board
Transducer modulator
demodulator
Batteries
Modem
Order of transmission
Transmission is ordered due to limitedbattery power and liability• Data is sorted by:
• Time – descending recency• Formal necessity – mandatory parameters first• Importance to crash investigation
• Data can be sent as requested:• protocol allows specific requests
• Data is compressed• In the future – self detection and sending of irregularities
Operation Plan I
Considerations:
• Aviation industry nature
• Gap between box manufacturers and
product beneficiaries
• Economies to scale – few large companies
dominate the market
• Rigid regulation and intricate
authorization
Operation Plan II
First Stage – independent R&D:
• Patent registration
• Estimated Needs for the first stage:
• Development: 6 months
• Team: 6 engineers, 4 businessmen
• Funding: 3M $ to raise
• Meanwhile: lobbying for regulation
Operation Plan III
Second Stage – engagement:
• Agreement with 1+ box manufacturer/s:
• Customization
• Common R&D teamwork
• Estimated Needs for the second stage:
• Development: 1 year
• Team: 3 engineers, 4 businessmen
• Funding & housing : By manufacturer
Market Analysis I
Year 2001 2004 2020 2020
New
airplanes UpgradedNew
airplanes Sum
Commercial Airplanes- Major market 15,000 1,000 5,000 18,400 39,650
Jet planes- Secondary Market 50,000 1,000 6,500 30,000 87,500
Sum 65,000 2,250 11,500 48,400 127,150
Market Analysis II
• Black box manufacturers• Major Trends:
• Stable Growth• Strongly depends on airlines growth
• Distribution Channels: box manufacturers
• Major Players:• FAA (Federal Aviation Administration) and other regulating authorities• Commercial airplane manufacturers
• Airline companies
Market Analysis III
Entry Barriers:
• Rigid regulation (FAA)
• Conservative market
• Centralized industries:
• Aircraft industry
• Black box industry
• Huge corporations
• Infrastructure dependency
• Uncertainty
Competitors I
• Smiths Industries (~20% market share)
• Others:
• penny & Giles
• Universal Aviation
• British Aerospace
• EMH Technologies
• Direct competitors – box manufacturers:
• Honeywell (~30% market share)
• L-3 Communications (~30% market share)
Competitors II• Indirect competitors –
Alternative solutions:• ‘The infrastructure solution’ –
Broadcasting data to ground constantly
Example: Refael & Elbit-Starling• ‘The partial infrastructure solution’ –
Broadcasting to ground on emergency• ‘The engineered solution’ –
The box detaches from plane and floats
DRS Flight Safety & Communication
Business Model I - Pricing
• Direct costs -• Saving search costs: average of $1.5M• Insurance premium saving: $3,000-$4,000 per plane a year
• Indirect costs -• Damaged reputation• Diplomatic damage in case of a suspicion for terror attack Added revenue to box manufacturer: $5-$6K per unit Our share - $3K per unit
Business Model II-Revenue• Modest scenario:
• New commercial planes: ~30% out of 1000• Upgraded and Domestics: ~550 planes Sum: 850 planes and 1700 boxes Added revenues to manufacturer: 9-11M Our share: 5-6M $
• Best-Case scenario:• New commercial planes: 1000• Upgraded and Domestics: 1000 Sum: 2000 planes and 4000 boxes Added revenues to manufacturer: 20-24M $ Our share: 10-12M $
Development Stage I - Cost
• Salaries for the 10-12 employees and
consultant- $500K• Rental fee - $30K• Development of ASIC - $200K• Patents registration- $600K• Transducer Housing (Outsourcing)- $200K• Amplifier & Modem customizing - $200K• PR & Trade shows - $800K
Total costs- ~$3M
Marketing Plan I
• Positioning - an efficiency & safety
mean to:• The Black box manufacturers• The FAA
• Mediums to reach our customers -
Doron Yogev- connections with:• Black box manufacturers• The FAA• Airline companies
Aviation Trade shows
Potential Trade shows:•July 2003-
• Wittman Regional Airport, Oshkosh, WI•September 2003-
•Harrah’s Reno, Reno, NV•Orange County CC, Orlando, FL
•October 2003-•Palm Springs, CA
SWOT Model I
• Strengths:
• New technology
• Chance of regulation
• Partnership
• Weaknesses:
• Uncertainty – Must have VS. Nice to…
• Dependency on manufacturers
• Trouble in funding due to high risk
SWOT Model II
• Opportunities:
• Anti-terror approach – keenness to
accept new ideas related to safety
• Threats:
• The box’ manufacturers’ R&D
Future Development
Third stage: penetrating the marine market
• Large naval vessels also carry quite
similar black boxes
• Entry barriers – lower
• Regulation – less rigid
• Atmosphere – more opened to innovations
• Technical facileness – in comparison to
aviation
Credits
We’d like to thank:Dorog Yogev – Jet Link * Yoseph Statman – NASA * Michael
Thompson – Honeywell * Ning Xiao – LinkQuest * Arye Cohen
& Hanan – Bedek * Michael Sahar – Tadiran * Yitzhak Ben
Ya’akov & Jacob Barak – El-Al * Ed Hischmeyer – FAA * Efi
Zahavi * Sela Meyouhas – Underwater Electronics Branch /
IDF Navy * Nir Barkat – BRM * Dana Teltsch – HUJI * Aviram
Arbel – Noytech * Arye Fredelis & Amiram – EL-AL
Dan Aks * Yuval Shafir * Moshe Bar Siman Tov
Tal Kramer * Yoav Magen * Avi Gruber
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