Periodic Reporting for period 1 - AIRIMGO (ADVANCE IRIS RECOGNITION IN MOVE)
Reporting period: 2015-07-01 to 2015-12-31
Summary of the context and overall objectives of the project
The need for individuals identification is becoming one of the major problems faced worldwide. Accessing critical facilities demand high-security in both civil and military buildings. Moreover, the increased flow of people in the international area, due to increasing mobility, has become this need one of the principal challenges to face.
Current Identification systems pose problems of slowness, excessive queues, uncomfortable process for users of several facilities throughout the EU as well as inability to control certain areas and control degradation caused by the high volume of movements to be controlled, tiredness or lack of human resources. Increasing the security levels associated with access to these areas and speed control emerged in these processes becomes a great need.
SHS, founded in 1991, employs over 70 people, 30% of them dedicated to I+D+I projects. The estimated 2014 revenue is around € 3 million from which 500 M. to 700 M. € is our annual investment in I+D+I. The main I+D+I lines carried out by the company focus on people and commodities identification, by the development of several projects resulting on identifying people solutions.
The main objective of the proposed innovation is the placing on the market of a new generation of biometric identification devices which respond to the above need, streamlining interaction process and static presentation of users in identification processes without compromising the reliability and process safety. This process will be conducted in motion, real‐time and in a non-intrusive way. This way, the system under development contributes to solve the current problems of recognition and access control: slow recognizing and therefore access and consequent generation of queues, uncomfortable process for users of different facilities, inability for controlling certain areas and control degradation itself caused by volume of movements to be controlled, tiredness or lack of human resources), taking advantage of the business opportunity identified.
SHS has currently got an in-real environment tested prototype to access an individual installation. It is in TRL according to the provisions of Appendix G of the work program. A link to the demo video of the current prototype and its technical specifications can be downloaded from:
http://www.shsconsultores.es/descargas/AIRIM.m4v(opens in new window)
http://www.shsconsultores.es/descargas/Datasheet_AIRIM.pdf(opens in new window)
In December 2014, SHS successfully presented the novel concept ´s idea of AIRIMGO to the Phase 1 of SME instrument to drive its launch to market.
As a result of the conducted analysis, the potential feasibility of the proposed innovation has been proved, because of its degree of novelty as well as for the existing potential market and the economic viability of the project. For that reason, it is expected to present the proposal to the Phase 2 of SME instrument.
Current Identification systems pose problems of slowness, excessive queues, uncomfortable process for users of several facilities throughout the EU as well as inability to control certain areas and control degradation caused by the high volume of movements to be controlled, tiredness or lack of human resources. Increasing the security levels associated with access to these areas and speed control emerged in these processes becomes a great need.
SHS, founded in 1991, employs over 70 people, 30% of them dedicated to I+D+I projects. The estimated 2014 revenue is around € 3 million from which 500 M. to 700 M. € is our annual investment in I+D+I. The main I+D+I lines carried out by the company focus on people and commodities identification, by the development of several projects resulting on identifying people solutions.
The main objective of the proposed innovation is the placing on the market of a new generation of biometric identification devices which respond to the above need, streamlining interaction process and static presentation of users in identification processes without compromising the reliability and process safety. This process will be conducted in motion, real‐time and in a non-intrusive way. This way, the system under development contributes to solve the current problems of recognition and access control: slow recognizing and therefore access and consequent generation of queues, uncomfortable process for users of different facilities, inability for controlling certain areas and control degradation itself caused by volume of movements to be controlled, tiredness or lack of human resources), taking advantage of the business opportunity identified.
SHS has currently got an in-real environment tested prototype to access an individual installation. It is in TRL according to the provisions of Appendix G of the work program. A link to the demo video of the current prototype and its technical specifications can be downloaded from:
http://www.shsconsultores.es/descargas/AIRIM.m4v(opens in new window)
http://www.shsconsultores.es/descargas/Datasheet_AIRIM.pdf(opens in new window)
In December 2014, SHS successfully presented the novel concept ´s idea of AIRIMGO to the Phase 1 of SME instrument to drive its launch to market.
As a result of the conducted analysis, the potential feasibility of the proposed innovation has been proved, because of its degree of novelty as well as for the existing potential market and the economic viability of the project. For that reason, it is expected to present the proposal to the Phase 2 of SME instrument.
Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far
The following Works have been performed:
MARKET AND USER STUDY: a market analysis has been designed to show the existence of an important market and to prioritize, in a clear and efficient way, the commercial and internationalization strategy that bets adapt to the possibilities of SHS. Some countries have been selected in order to do a deeper study in order to obtain clear conclusions that could be projected easily to other geographical areas. These countries have been the German speaking countries (Germany, Austria and Switzerland) and Spain.
Based on the study, the Total Available Market (TAM) for access control systems within the EU area is 18,200 units per year. A conservative estimate of 5% of the TAM yields a Served Available Market (SAM) of 910 units per year for a high value solution with iris recognition in motion. Although being from the start the only competitor we would assume a conservative 30% capture of the SAM, then a Target Market of 273 systems can be expected for sales within the EU. The Target Market for whole would be around 1,000 systems per year.
ACCES SECURITY SYSTEMS IN USE TODAY
Once the analysis of manufacturers have been done, we can state that to our knowledge there is no company with a biometric system based on Iris Recognition in motion
PATENT IDENTIFICATION
In order to detect the closest prior art to the innovation project of interest, a search of English‐language global patent and non‐patent literature, relating to a new recognition system in buildings, to improve the security and the speed of the recognition in order to make this more comfortable for users and more efficient for the management of the building, have been conducted
After analyzing the above patents, we do not find any clear evidence which could generate any conflict about the commercialization of the product developed in AIRIMGO project, so that we are free to operate over the proposed line
NEEDS FOR PRODUCT DEVELOPMENT:
The following Technical development needs have been identificated:
- Near infrared sensitive sensors for catching the biometric characteristics from the identified user's iris..
- Design and establishment of a high performance and high speed picture catching system with little user interaction
- Define the possible changes and improvements of the current identification methods and algorithms based on the biometric technology of iris recognition
- Design, integration and setting
- System validation.
Also, have been identificated the Supliers and collaborators needed for the project developmente, as well as material and human resources.
ECONOMIC-FINANCIAL ANALYSIS
The economical analysis shows that this project execution is going to suppose an important growing impulse for the company, as a facturation level of about 10 times the current one is estimated. It will be necessary to implement and define a set of mechanism and strategies to dose this growth. In that sense, our collaborators are crucial for allowing SHS to adopt variable geometry strategies during the product consolidation.
INTELLECTUAL PROPERTY MANAGEMENT
We have identificated the main Results to be protected and Analysis of the mod protection as copyright, patents, trade marks and domain names. Intellectual Property exploitation will be aimed at a Direct Use: Core to the competitiveness of the product .
COMMERCIAL STRATEGY
Due to the structure of SHS and the nature of the product and potential customers, it is recommended to establish distribution channels to sell and offer 1st level technical maintenance rather than trying to develop an own network of sales force and technical support. Nonetheless, this does not mean that SHS does not have to visit key and relevant customers. In fact, due to the disruptive of the technology and functionality of AIRIMGO, it is highly recommended to visit some key customers to, somehow, “prescribe” the solution. This is being done in customer like Federal Police in Germany or Guardia Civil in Spain.
It will be absolutely necessary to find one partner in any single channel. Furthermore, the method should try to start in any channel with the candidate who has the widest distribution net but no biometric system yet to offer. According to our experience if there are products in concurrence to another product in a product range, the strategy is never successful. Sometimes partners just close gaps in their portfolios but without taking big actions to sell these new products. They keep them for just those cases where they would lose the order if they do not have them. It is a long way to educate sale teams for changing their favorite products. At least, it costs time and money.
ANALYSIS OF EXPORT STRATEGY
The export strategy is clearly defined within the general commercial strategy. Considering the three defined drivers of this design (technology eagerness, geographical situation and market size), it is clear to SHS what the export strategy should be to be efficient in the commercial investment, especially at the first stages of its development.
This strategy clearly identifies different priorities when approaching the potential market:
1. Priority 1: UE market, with clear orientation to German-speaking countries, Spain and France. In this stage it will be a key commercial point to get solid customer references and strategic partners
2. Priority 2: rest of UE, UK specially and Europe
3. Priority 3: Americas, both latin America and North America
MARKET AND USER STUDY: a market analysis has been designed to show the existence of an important market and to prioritize, in a clear and efficient way, the commercial and internationalization strategy that bets adapt to the possibilities of SHS. Some countries have been selected in order to do a deeper study in order to obtain clear conclusions that could be projected easily to other geographical areas. These countries have been the German speaking countries (Germany, Austria and Switzerland) and Spain.
Based on the study, the Total Available Market (TAM) for access control systems within the EU area is 18,200 units per year. A conservative estimate of 5% of the TAM yields a Served Available Market (SAM) of 910 units per year for a high value solution with iris recognition in motion. Although being from the start the only competitor we would assume a conservative 30% capture of the SAM, then a Target Market of 273 systems can be expected for sales within the EU. The Target Market for whole would be around 1,000 systems per year.
ACCES SECURITY SYSTEMS IN USE TODAY
Once the analysis of manufacturers have been done, we can state that to our knowledge there is no company with a biometric system based on Iris Recognition in motion
PATENT IDENTIFICATION
In order to detect the closest prior art to the innovation project of interest, a search of English‐language global patent and non‐patent literature, relating to a new recognition system in buildings, to improve the security and the speed of the recognition in order to make this more comfortable for users and more efficient for the management of the building, have been conducted
After analyzing the above patents, we do not find any clear evidence which could generate any conflict about the commercialization of the product developed in AIRIMGO project, so that we are free to operate over the proposed line
NEEDS FOR PRODUCT DEVELOPMENT:
The following Technical development needs have been identificated:
- Near infrared sensitive sensors for catching the biometric characteristics from the identified user's iris..
- Design and establishment of a high performance and high speed picture catching system with little user interaction
- Define the possible changes and improvements of the current identification methods and algorithms based on the biometric technology of iris recognition
- Design, integration and setting
- System validation.
Also, have been identificated the Supliers and collaborators needed for the project developmente, as well as material and human resources.
ECONOMIC-FINANCIAL ANALYSIS
The economical analysis shows that this project execution is going to suppose an important growing impulse for the company, as a facturation level of about 10 times the current one is estimated. It will be necessary to implement and define a set of mechanism and strategies to dose this growth. In that sense, our collaborators are crucial for allowing SHS to adopt variable geometry strategies during the product consolidation.
INTELLECTUAL PROPERTY MANAGEMENT
We have identificated the main Results to be protected and Analysis of the mod protection as copyright, patents, trade marks and domain names. Intellectual Property exploitation will be aimed at a Direct Use: Core to the competitiveness of the product .
COMMERCIAL STRATEGY
Due to the structure of SHS and the nature of the product and potential customers, it is recommended to establish distribution channels to sell and offer 1st level technical maintenance rather than trying to develop an own network of sales force and technical support. Nonetheless, this does not mean that SHS does not have to visit key and relevant customers. In fact, due to the disruptive of the technology and functionality of AIRIMGO, it is highly recommended to visit some key customers to, somehow, “prescribe” the solution. This is being done in customer like Federal Police in Germany or Guardia Civil in Spain.
It will be absolutely necessary to find one partner in any single channel. Furthermore, the method should try to start in any channel with the candidate who has the widest distribution net but no biometric system yet to offer. According to our experience if there are products in concurrence to another product in a product range, the strategy is never successful. Sometimes partners just close gaps in their portfolios but without taking big actions to sell these new products. They keep them for just those cases where they would lose the order if they do not have them. It is a long way to educate sale teams for changing their favorite products. At least, it costs time and money.
ANALYSIS OF EXPORT STRATEGY
The export strategy is clearly defined within the general commercial strategy. Considering the three defined drivers of this design (technology eagerness, geographical situation and market size), it is clear to SHS what the export strategy should be to be efficient in the commercial investment, especially at the first stages of its development.
This strategy clearly identifies different priorities when approaching the potential market:
1. Priority 1: UE market, with clear orientation to German-speaking countries, Spain and France. In this stage it will be a key commercial point to get solid customer references and strategic partners
2. Priority 2: rest of UE, UK specially and Europe
3. Priority 3: Americas, both latin America and North America
Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)
As it has been stated, in the market research along with the economical and financial analysis, the unequivocal conclusion is that the project demonstrates a viability which guarantees a successful project. The main factors which support this conclusion are summarised in the following statements:
● The innovation that the system proposes makes it attractive to the potential customers as the same time that confers a huge strength in the protection of the needed investment.
● The analyzed potential market is greater than expected.
● The analyzed economical viability guarantees that the investment return risks are minimum.
● SHS has demonstrated along its own history that it has enough expertise, qualification and vocation to assure success in the present project.
As it has been detailed along this chapter, it is essential to count on different co-workers so as not to risk any of the goals set in several approaches of the project, like significance, quality, cost and execution time. Some of these collaboration issues are the following ones:
● Collaboration with the implementation of the commercial strategy.
● Collaboration to raise the development to a final product.
● Establishing a partner network which responds to the commercial strategy outlined in the study.
Among its commercial objectives, SHS has the necessity of consolidating our knowledge on the implementation of dynamic identification systems for moving people. This will result in a proper planning for corporate strategies which will lead SHS to a greater competitiveness and productivity.
In order to address the expected growth, it will be needed to strengthen and increase the funding lines which are currently considered by our economical-financial partners, as well as the positions which allow to absorb the estimated growing demand and offer a proper maintenance service.
SHS has a high qualified and expertised human team which has developed relevant R+D projects during the latest years. Because of that, there are 7 estimated needed positions.
The general objectives of our devices are sided with the achievement of a proper development and use of technologies, applications and services from the information society in order to contribute for a economical growing model based on the increase of competitivity and both social and regional equality advancement.
Given that, the previous reasons justify the alignment of our devices with the objectives of the use of information and communication technologies with the aim of converging with the most advanced countries from the countries around us, according to the objectives of the Lisbon Agency.
The development of these biometric devices supposes a great push for the technology based companies from the security sector, both in Andalusian and at national level, and promotes the export of technology from this sector.
Although the number of national important companies at this strategic sector is small nowadays, the current limited introduction of the biometric technology in this sector at an international level represents an opportunity for the strategic positioning.
As it has been remarked before, AIRIMGO development will lead SHS to extend its product range. This is going to complement both developed devices and management software implemented by this company. These are direct results from the development of the present project which will be implemented according to our offer among the national and international market. The economical expectations for a 6 years horizon are described in the financial analysis of the present document.
SHS has in-house experts with all the needed profiles for tackling this project development. It will imply both new inclusion for our staff and the preservation of stable ones. At a time when a lot of companies are reducing their business numbers and their activity, SHS spares no effort in investment and diversification of its commercial offer. In this sense, it follows its own compromise of promoting new research lines and activity.
Regarding the innovative effect of this device, it will lead to:
● An increase of the total R+D+i investment as it has been shown at the needed investment chart.
● A speed up for the project. In other case, we will have to double the proposed timeline for the global project.
● An increase of the project volume. If we were not awarded, our current capacity for facing the proposed objectives would need analyzing.
● The innovation that the system proposes makes it attractive to the potential customers as the same time that confers a huge strength in the protection of the needed investment.
● The analyzed potential market is greater than expected.
● The analyzed economical viability guarantees that the investment return risks are minimum.
● SHS has demonstrated along its own history that it has enough expertise, qualification and vocation to assure success in the present project.
As it has been detailed along this chapter, it is essential to count on different co-workers so as not to risk any of the goals set in several approaches of the project, like significance, quality, cost and execution time. Some of these collaboration issues are the following ones:
● Collaboration with the implementation of the commercial strategy.
● Collaboration to raise the development to a final product.
● Establishing a partner network which responds to the commercial strategy outlined in the study.
Among its commercial objectives, SHS has the necessity of consolidating our knowledge on the implementation of dynamic identification systems for moving people. This will result in a proper planning for corporate strategies which will lead SHS to a greater competitiveness and productivity.
In order to address the expected growth, it will be needed to strengthen and increase the funding lines which are currently considered by our economical-financial partners, as well as the positions which allow to absorb the estimated growing demand and offer a proper maintenance service.
SHS has a high qualified and expertised human team which has developed relevant R+D projects during the latest years. Because of that, there are 7 estimated needed positions.
The general objectives of our devices are sided with the achievement of a proper development and use of technologies, applications and services from the information society in order to contribute for a economical growing model based on the increase of competitivity and both social and regional equality advancement.
Given that, the previous reasons justify the alignment of our devices with the objectives of the use of information and communication technologies with the aim of converging with the most advanced countries from the countries around us, according to the objectives of the Lisbon Agency.
The development of these biometric devices supposes a great push for the technology based companies from the security sector, both in Andalusian and at national level, and promotes the export of technology from this sector.
Although the number of national important companies at this strategic sector is small nowadays, the current limited introduction of the biometric technology in this sector at an international level represents an opportunity for the strategic positioning.
As it has been remarked before, AIRIMGO development will lead SHS to extend its product range. This is going to complement both developed devices and management software implemented by this company. These are direct results from the development of the present project which will be implemented according to our offer among the national and international market. The economical expectations for a 6 years horizon are described in the financial analysis of the present document.
SHS has in-house experts with all the needed profiles for tackling this project development. It will imply both new inclusion for our staff and the preservation of stable ones. At a time when a lot of companies are reducing their business numbers and their activity, SHS spares no effort in investment and diversification of its commercial offer. In this sense, it follows its own compromise of promoting new research lines and activity.
Regarding the innovative effect of this device, it will lead to:
● An increase of the total R+D+i investment as it has been shown at the needed investment chart.
● A speed up for the project. In other case, we will have to double the proposed timeline for the global project.
● An increase of the project volume. If we were not awarded, our current capacity for facing the proposed objectives would need analyzing.