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Periodic Reporting for period 1 - SSBUMP (SMART SPEED BUMP)

Reporting period: 2017-03-01 to 2017-08-31

Badennova SL emerged in 2009 with the aim of developing an innovative and revolutionary idea: an intelligent speed bump that only affected those drivers who dont respect the speed limit.
José A. Aguilera embarked on the entrepreneurial adventure to get enough funding and support to develop the Intelligent Speed bump getting the first patents the following year.
In 2010 came the national and international recognitions to the smart bump prototypes.
In 2012 the agreement that marked a new era in research was signed, finally the Center for the
Development of Spanish Industrial Technology (CDTI) endorsed the steps of innovation of Badennova to further research actively in road safety.
Throughout this time frame many institutions have collaborated with them, starting with the University of Malaga, the Technological Center of Plastics of Andalusia (Andaltec), the Technological Park of Andalusia (PTA), which was its first headquarters and ProMalaga, which is the current location of its facilities.
Around Badennova, a group of partners and a technical work team have been formed, in which university professors, technicians and entrepreneurs from sectors such diverse as food, alternative energies or construction are combined, always betting on R & D.
the final goal of Badennova through the SSBUMP innovative project is the fabrication of the Smart Speed Bumps with our own technology, for subsequent B2B sale (via exclusive distributors) in the international market. To do this, Badennova asks for the SME Instrument to finish the product to the 100%, and once completed the SME Instrument (phase 2) set up a production plant with sufficient capacity to provide national and international demand. This production plant will attend two aspects (main market niches):
· To introduce the SSBUMP for garages/parking or roads with low traffic circulation in the national and international market, and it is consolidated as the first choice of the clients.
· To apply the SSBUMP in the outside for all kinds of weather and high traffic density or circulation.
On the other hand, it is important to emphasize that the technology will be adopted and tested for new applications in the Transport and Mobility sector, as can be new crash barriers with new properties, central reservation in roads, clothe for motorcyclists as new helmets, etc
The following tasks were defined in the first phase of SME Instrument inside of feasibility study:
Task 1: Risk Assessment.
When an organization decides to engage in international activities, they also take on additional risk as well as opportunities.
Risks associated with entry into a potential foreign market derive from the company's ability to adapt to existing regulations in matters of road safety and environmental pollution.
The main risks the company will need to face are: Financial obstacles; Trade obstacles; Logistical obstacles; Legal barriers; Obstacles to direct investment.
Task 2: market research.
The size of the market for these products is difficult to quantify and predict. However, data has been accurate on the number of vehicles in use in Europe, and there is a direct relationship between the number of vehicles and the real needs to regulate the speed in residential áreas and the pollution that vehicles produce. The conclusions of the market study are clear as regards the growing need to control the traffic in Eurozone residential zones. These markets have the advantage of being under the umbrella of the European Union that eliminates the currency effect, facilitates paperwork and reduces costs.
On the other hand, apart from roads with a lot of vehicular traffic located in residential areas, there is another main market niche detected by the company and to which Badennova's commercial action will also be directed.
This niche consists of parking and roads with little traffic of vehicles. Many types of customers have shown interest in this type of facility. Councils, Parking, Public buildings, airports, ports, train and bus stations, Commercial and shopping centers; Large companies with own parking; Private buildings; Hotel chains; Sport resorts or stadiums; camping; residential áreas.
Task 3: user Involvement
The normalization of the use of intelligent speed bump will be very beneficial for all actors involved.
So far many types of potential users have shown interest in Badennova’s smart speed bumps.
- Cities, villages and Public organisms: Madrid City Council, Andalusia Region, etc.
- Hotels, Private buildings, car parks, etc.
- Road tools distributors: API, ATA, SAFECITY Engineering, etc.
Task 4: Business Strategy
As mentioned above, Badennova's business model consists of the search for business through strategic alliances in the different target countries.
These strategic alliances consist of distribution agreements with or without exclusivity that have the objective of supplying the local market. These agreements will always be reached with specialized distributors in the sector who have shown a correct trajectory in the market.
The company anticipates the following actions as some of them have already been started:
- 1st: Spain, Germany, UK, Sweden
- 2nd: rest of Europe
- 3rd: Chile and Argentina
- 4th: middle and Far East.
- 5th: rest of the world.
Task5: Final Dissemination and Exploitation Plans.
Due to the good acceptance of smart bumps in world markets, Badennova aims to reach a high level of internationalization in Europe during 2018.
All this without leaving aside the pretensions of reaching the maximum penetration in the Spanish market, which is in an upward phase of urbanization that offers enormous possibilities of expansion of the Badennova Company throughout the territory.
Badennova currently has an exclusive distribution agreement (subject to the compliance of specific targets) in Mexico with Eyssa. By virtue of such an agreement, Badennova hopes to achieve graciously presence in all
parts of the country.
As for the Spanish market, Badennova already has numerous distribution contracts with public and private entities.
For the future development of the business both nationally and internationally, it is necessary to obtain funds that allow, among other things, to increase the production of bundles to satisfy the demand that already exists.
On the other hand, having funds would allow the company to stop outsourcing the international commercial activity to carry out it from the company itself. The creation of a foreign branch would reduce transport costs to neighboring countries, improve customer management, provide better after-sales service and therefore offer the product at a more competitive price.
Currently R & D investment consumes almost all resources of the company.
Raising funds would also allow the company to continue researching in the field of R & D to offer an increasingly modern and environmental friendly product.
Although the company has achieved a product of spectacular quality, it is aware that it is still possible to improve both the materials characteristics and the durability of the belt, which can get better by greater investment in R & D.
One of the tests Badennova makes to its product consists of a device composed of three axles with two industrial pneumatic wheels. Each of them imitates the impact of the vehicles on the intelligent bump with great pressure to test it for resistance and aging.