Feasibility BUS-W233 Presentation
OMNI 360 Dome Shape Camera
Agenda
Introduction of Product
The OMNI 360
In car security system Dome Shape Camera Online video streaming Basic Model: - Rechargeable battery & Solar Energy - Night Vision - 360 degree - Code Protected Switch Advanced Model: + Better Video and Audio Capability
Value Creation, How?
OMNI 360 offers value through:
Basic & Advanced models Customer services for installation problems, storage, and playback support Outsourcing Production in order to decrease total costs
Outsource to Hong Kong and Mainland China Hong Kong: Leading exporter of car accessories and parts (experience) Mainland China: Growing economy and lower production costs
Value Creation, How?
OMNI 360 offers value through: (Con't)
Partner with a car manufacturer to sell our product for use in new car manufacturing Eventually sell to retail outlets who then sell to end users
Value Creation, Who?
1.
Our Company Omni Security
Credibility by partnering with car manufacturers Expand internationally by gaining market share through car manufacturers within a couple of years
2.
Car Manufacturers
Auto companies' cars worth more with innovative accessory Offers competitive advantage over others that do not have the technology Increased quality & desirability of Cars
Value Creation, Who?
3. Retail Outlets
Increase profit through the sale of our product New innovative products Security Assurance 24/7 with access to video feed with any internet connection Reliable evidence in case of car theft, vandalism, accidents, and insurance claims.
4. Customers / End Users
Internal Source of Advantage
Networking & Resource Leverage Negotiate with Chinese (outside source) for manufacturing Lower product costs Negotiate with car manufacturers as added option for their vehicles Gives us exclusivity with major manufacturer Access to larger market
Internal Source of Advantage
Technology & Innovation
Our product combines several forms of technology
Video capabilities including 360 degree view
Live video streaming available via the internet Solar power energy to run camera 24/7 Alarm system that contacts you and the authorities
Expert researchers and engineers
Improve current product and innovate to expand product line
Differentiation
Sources of differentiation
Patented technology Unique product
The Product
Dome shaped camera attached to the inside roof of the vehicle Provides 360 degree view of the car and surrounding area Camera runs on solar power and rechargeable battery when car is off
Differentiation
The Product
Reserved energy helps provide 24/7 surveillance of the vehicle Video feed downloads to a database and is streamed live via the Internet Can go back and view footage from any point in the last 5 days Can view video of vehicle even if vehicle is stolen; video is not recorded onto an onboard memory card
Differentiation
Innovation & Continued Leadership
Will look for alternative energy sources in improve efficiency and effectiveness of camera Continued Research & Development Smaller Better designs video quality Added features Expanded product line
Operating Leverage:
Fixed Costs:
Economic Model
Distribution warehouses Delivery infrastructure Servers to store video data Web interface Construction Delivery to automobile manufactures and eventually dealerships and retail outlets Primarily composed of fixed costs, meaning our business carries a high risk of not breaking even, but once we do achieve break even, profit will accelerate quickly.
Variable Costs:
Total Costs:
Volumes: High Volume: We plan to have our device in most of our automobile manufacturing partners' model and eventually in retail outlets and dealerships Distribution Warehouses: built to accommodate appropriate inventory size but we hope to quickly move our product from the manufacturer to the customers
Servers: built to accommodate the necessary storage and traffic Goal: To pass competitor's systems such as OnStar in prevalence
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Economic Model
Margins: At first: high margins (premium product, low cost of outsourced manufacturing) This will help us establish the product's reputation Eventually: margins may drop when we move into retail outlets and dealerships as we drop price to increase volume. Revenue Sources: Fixed: selling the camera units Variable: service fees
Our time, scope and size ambition
Ideally, we hope to create a growth model business in Omni Security. We realize that establishing our desired brand reputation and market share will take a significant amount of time, effort, and initial investment. Profits will continuously be reinvested into research and development in order to maintain an industry lead. One benefit to our business model is that there are built-in points where we can evaluate the course of business and redesign our model if needed. For example, we may have trouble partnering with a automobile manufacturing company. At this point, we can shift to a speculative model in an attempt to sell the company or to a subsistence model to recover our investments and exit the industry.
Internal Consistency
Sourcing
Profiles of Hong Kong Major Manufacturing Industries
http://info.hktdc.com/main/industries/t2_2_2.htm
Auto sales plunge again
http://money.cnn.com/2008/08/01/news/companies/auto_sales/index.htm
United States Department of Transportation - Federal Highway Statistics 2006 http://www.fhwa.dot.gov/policy/ohim/hs06/driver_licensing.htm Crime in the United States 2007 http://www.fbi.gov/ucr/cius2007/data/table_12.html Hot Wheels: Vehicle Theft Continuing to Decline https://www.nicb.org/cps/rde/xchg/nicb/hs.xsl/72.htm Automobile customizing defies stereotypes http://www.consumerreports.org/cro/cars/new-cars/news/2006/car-customizing-defiesstereotypes-consumer-reports-10-06/overview/1006_car_personalization.htm Prius to get solar-powered air conditioning, newspaper says
http://www.usatoday.com/money/autos/2008-07-07-prius-solar-powered-air-conditioning_N.htm
New cars will skimp on fuel but not on amenities
http://www.usatoday.com/money/autos/2008-07-06-small-cars-loaded_n.htm
On Board System, Mobile Watchman http://www.mobilewatchman.com/
Thank You!