Periodic Reporting for period 1 - IDENTITY (Usable Digital Signature)
Reporting period: 2016-07-01 to 2016-12-31
IDENTITY solution constitutes a complete safety e-Signature system aimed at the improvement of the e-Signature usability and simplification of the signature process to assure a widening of the e-Signature use between users. The main advantages of IDENTITY against existing solutions are: (i) CLOUD: the eSignature is kept in a centralized repository (no need to keep software by user). (ii) TECHNOLOGICAL NEUTRALITY and MOBILITY: No needed a platform or device for the signature, any device with web browser can be used. (iii) SECURITY: User should enter a pin code and a second security measure. (iv) SIMPLIFICATION: No need to use an applet for authentication and signature. (v) TRANSNATIONAL VALIDITY: developed according EU standards and thanks to all advantages mentioned, IDENTITY could be used in any EU country.
The R&D phase of IDENTITY finalized in 2015, with the validation tests of the prototype developed in Viavansi servers (TRL5). There has been developed a demonstration of the system prototype (TRL6), covering the full functionality of IDENTITY in a simulated environment.
The good results obtained confirm the international market need and the technical feasibility.
Now it is necessary to validate the business plan to develop the IDENTITY final version and to progress through a large-scale demonstration in operational environment, scaling up the product to a large market.
The feasibility study output of this project wants to validate the assumptions and the first estimations presented, regarding the strategic innovation and business plan for the global market introduction as well as the operational and financial model for the next 5 years of the IDENTITY solution and its technological roadmap.
During the study, there have been significant changes in the market. Cloud signing solutions are already a reality marketed by several companies, including Viavansi that - not to be left behind - has accelerated the development and commercialization of its own cloud signature. This situation does not block the project feasibility, in fact, it is confirming that the market is ripe for solutions based on cloud signing. In the first sessions of coaching this issue was addressed and it was decided to take this opportunity to evolve IDENTITY towards a solution of digital contracts with cloud signature. Based on this new approach, a full feasibility study has been developed.
We have identified SMEs as end users of our solution. Our Partner Channels would be consider as well as clients (sell-thru), and they will provide us their SME´s portfolio being them, the one that actually are going to use the platform itself.
A comparative study of the solution with other similar products across the world has been taken. We have analysed more than 100 solutions worldwide, identifying those with that are more relevant.
The market research and it segmentation has leaded us to make important strategical changes:
Focus our commercial efforts in European countries with favourable conditions for the project: Spain, Portugal, France, The United Kingdom, Germany and Italy.
Sell-thru as a main commercial model. This forces us to identify key partners in the main segments: Banking, Utility, Retail, Insurance, Consultants, Certification Authorities (now QTSP), Software Manufacturers: CRM, ERP, ECM, DMS y other .COM, ETT, Commercial Chambres, SMEs Associations and Public Administrations (especially in Dominican Republic).
Due to the importance of partners in this solution, we have identified the need of increasing Vianvansi team by recruiting a partner's manager in addition to other commercial profiles to increase our sales force in order to fully use the approach of the sell-thru model.
In order to improve the time2market and increase our sales capacity, the product will be developed and commercialised in a consortium with our subsidiary company, VIAFIRMA S.L.
Legal framework Analysis
A comprehensive study of the European regulations and of all the target countries has been carried out (document attached). The fundamental rule governing services related to digital signature is the eIDAS regulation, which regulates the obligation to be certified as qualified providers of reliable services to be able to operate in the EU.
Technological and innovation strategy
Web and mobile applications have a very short lifetime, and they need to constantly evolve with new functionalities. Within 2016, the market has been monitored and the need of incorporating into our cloud signing solution some very competitive advantages, such as remote enrollment.
Viavansi's go-to-market strategy will focus on two models of sales channels: VIAVANSI sells-thru channel partners VIAVANSI sells-to end customers directly in one scenario. (Public Administration sector). Three steps have been defined for the approach to the channels: Qualification of channel vendors, channel partnership programs and marketing and promotion strategy. Basic, short- and long-term strategies for marketing and dissemination have been defined. The main risks have been identified and risk mitigation measures and contingency plans have been designed.
The initial price strategy is based on the prices for electronic signature services to which customers are accustomed and the prices of some online platforms for contracts that, despite not having a signature with electronic certificate, can serve as reference for the user. It will be a single price for the entire Euro zone.
The license will follow the service model with the highest growth rate in the Digital Single Market and better adapted to the characteristics of SMEs: SaaS (Software as a Service)
CANVAS model has been followed for the business analysis of our solution.
An international expansion plan has been designed, including initially, Portugal, The United Kingdom, France, Italy, Germany and Dominican Republic and two license prices, one for Europe and the other one for LATAM.
Estimation of Revenues and Expenditures
Investment: 1.500.000 €; Payback year: 2020; NPV: 4.324.509 €; IRR: 109%
The new eIDAS scenario, gives the final push to solutions related to cloud signature solutions. There are companies that offer the signature in the cloud, but rudimentarily. Our proposal makes IDENTITY to evolve, as described in the initial proposal, in order to turn it to the most advanced solution in the market, associated with the signing of online contracts.
Technical wise, our platform will be ready to deal with any size of demand, without significant surcharges. During the second half of 2016 we have evolved IDENTITY to become IDENTITY SPC, a platform for online contracts with a cloud signature. We have successfully performed the first tests in the demonstration environment, available for evaluation.
We have obtained LoI that certifies the potential of the solution and the market interest on it: Barclays Card -financial institution internationally acknowledged- and ANF -Certification Authority-, for developing our first commercial pivot. We are in negotiations, in terms of getting new LoI with other financial institutions before the end of the year.