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Periodic Reporting for period 1 - WARDIAM PERIMETER (WARDIAM PERIMETER)

Reporting period: 2016-04-01 to 2016-09-30

Increasing criminal/terrorist attacks and in-house as well as external unethical practices are expected to be key factors that drive the global intrusion detection system market. Growing trend towards home and office security system automation may also raise demand for detection system. Growing smartphone and tablet proliferation has resulted into increased mobility, which is also anticipated to catapult industry growth. Furthermore, rising disposable income in several developed and developing countries is also anticipated to be major factor driving demand.
The industrial security systems market was €25.8 billion in 2015 and is expected to reach €38 billion by 2020, growing at a CAGR of 8.69%. Basic alarms and detection systems are great when it comes to detecting a break-in, but preventing an intrusion before the actual break-in and damage incurred to the property is out of their scope, and it will soon be a must specifically in critical infrastructure segment. This is where the real advantage of perimeter security comes into play. With proper perimeter security, one can lay down ‘levels of defense’ around their property which cannot only detect intrusions but also be able to help prevent break-ins. Setting up these ‘levels of defense’ serves a dual purpose – a perfect counter mechanism to curb the attempts of thieves, and give ample time to both the owner and nearby residents (in personal properties) and security officials (in commercial and military installations) to take appropriate action. This is where Wardiam Perimeter system from Ontech comes into play. Wardiam Perimeter system can identify a threat precisely and preventively (It can detect a potential intrusion, even before it has occurred), initiates video tracking outside, through and inside the protected premises, Discriminative (It can discriminate between people and other objects or animals due to their different magnetic signature) and real time operation (sensor technology allows for that). Overall objective of the project is to develop a first prototype that will be tested at Ontech’s premises, followed by pilot testing and validation of prototype to scale up. This will be followed by commercialization of the product focusing on key markets in Europe’s critical infrastructure.
Our feasibility study comprises a detailed technical, market and financial analysis for the successful commercialization of the Wardiam perimeter.
As part of the technical analysis, we have analyzed different activities that we will require to move from prototype stage to scaling up stage (TRL6 to TRL9) comprising of validating the prototype in our premises and our client’s premises.

Ontech has already established partnership with couple of clients and OEMs to execute pilot runs in operational environment. Ontech is also in talks with an R&D partner to develop and optimize video tracking solution for the Wardiam Perimeter system. European standard regulation compliances for security systems were studied and steps were planned to make the Wardiam Perimeter compliant with the regulations.
We also conducted an in-depth analysis of Intellectual property and freedom to operate analysis to evaluate existing patents and avoid any conflict with Wardiam Perimeter’s technology. And the result was Wardiam Perimeter has the freedom to operate globally.
Our commercialization plan incorporated several elements to identify the right strategy for business model, partnerships and elements needed to go-to-market in Europe as well as globally. We also gathered deep insights about intrusion detection systems market, about existing players and their strengths and weaknesses. We identified the segments of critical infrastructure we want to target and identified the business model to build sales channel pipeline.
Finally with detailed financial projections, we were able to analyze the profitability of Wardiam Perimeter project both in short and long run.
With the successful execution of tasks ranging from technical to financial analysis committed in Phase 1, Ontech is confident to go ahead with Phase 2 where the ultimate goal is to have commercial scaled up product of Wardiam Perimeter ready for market launch.
Wardiam Perimeter will serve to provide groundbreaking improvements in critical infrastructure security specifically in the current era of growing terrorist threats and increased criminal activities.
The Wardiam Perimeter system could make, in an efficient manner, a complete surveillance of large areas (such a walls of energy installations, water plants, etc.) and also perform it in a preventive manner (detecting a potential intruder and activating video streaming only when this potential threat is clearly detected). This system therefore would be very simple and at the same time extremely robust which can serve the following aims contributing to enhanced protection:
• Intrusion detection without any damage to property • Compact design • Reduced number of false alarms thanks to the animal immunity feature (from 90% or 40% according to the segment, to a 30% or 10%) • Flexible detection area. • Complete compatibility with any existing security devices installed at the premises.
Wardiam Perimeter will lead to significant revenue contribution to Ontech as a whole and lead to job creation both locally in Spain, Europe and globally. Through this project, we aim to create at least 8 new jobs in the short term for the development phase and more employment opportunities when the product is launched in 2018.