TECHNICAL FEASIBILITY
Objective 1: Gauge the remaining electronics, software and integration developments to finalize the ARIA radar technology (move from TRL6 to TRL9). Key findings: We have designed, created and developed the necessary components for the production of ARIA, and the prototype for testing will be finalized in March/April of 2018.This includes the Ultra-Wideband (UWB) antennas, advanced BiCMOS node single chip UWB transceiver with microDSP and power unit. Work is also ongoing for improvements to the software for the use and customization of our device by our clients.
Objective 2: Confirm the improvements to the multi-core microDSP architecture for optimized performance of each receiver. Key Findings: We have tested the various components that have been created until now, and all evaluations have confirmed that they function as they were intended to. Once the final components will be ready, the prototype will be finalized and further testing will be done to identify all improvements that will be required, and to confirm that it does indeed function as designed.
Objective 3: Compile the operational specifications, standards compliance and future production costs. Key findings: ARIA has been developed within the bounds of the regulatory bodies, both in Europe and the USA. The functional specifications of the radar technology used in ARIA has been designed as to be able to be used without issues in regards to regulatory compliance. As for future production costs, and extensive evaluation has been done to gauge the production costs.
Objective 4: Risk assessment for all technical activities to identify areas of concern and define proper mitigation and contingency measures. Key findings: We have conducted an in-depth risk assessment to evaluate which factors are liable to challenge the production and commercialization of ARIA. With each of these risks, we have worked to identify how to mitigate each one in a credible and realistic way, so as to try to anticipate the challenges we might face in the development of this project.
Objective 5: To prepare a detailed work plan for the Phase 2. Key findings: we have defined that the ARIA project will take 20 months and will be distributed in 7 work plans.
COMMERCIAL FEASIBILITY
Objective 6: To do an extensive market research on UWB radar devices and their target applications, and to assess the current market for security solutions. Key findings: As part of the feasibility study, we have researched the security market, and the sensor the market, to evaluate what type of product is needed. We have concluded that there is an increasing need for new technology that offer better performing and more reliable sensors that consume less power, with increased capabilities in communication, and all at lower costs. These advancements are dictated by the end-users who have set these expectations for the industry, which is growing in part due to the global terrorist threat that has affected Europe and North America.
Objective 7: Confirm our Freedom-to-Operate (FTO) and patent analysis and strategy in target markets: Key findings: We have researched and evaluated the technology that is on the market, and we have found no impediment to proceed with our project. We have found that, although there are similar products, none use the technology that Cover Sistemi has designed for ARIA. Furthermore, we have established a strategy in order to commercialize ARIA, with a roll-out in Italy first to our known clients, and then to other clients (Value Added Resellers, Original Equipment Manufacturers, Dealers and Security Solution companies).
Objective 8: Consolidation and search for partner(s) to engage in a Fabless manufacturing process. Key Findings: We have been in discussion with design silicon foundry partners (AMS AG and STM electronics) for the production of ARIA’s single-chip. We are looking for a partner that will conduct the proper monitoring for failure events in the scribe lines before going to housing, and also that can assure us that have various providers in the event that one is unable to fulfil an order, thus not affecting production.
Objective 9: Overall business plan of ARIA (SWOT analysis and critical risk factor assessment). Key findings: Through a SWOT analysis and critical risk factor assessment, we have identified that we will face challenges regarding the low acceptance of new technology from security solution providers, as well as a problem when it comes to product differentiation. There are a high number of competitors on the market which also creates a challenge for the commercialization of ARIA.
FINANCIAL FEASIBILITY
Objective 10: To conduct a realistic risk/benefits assessment. Key findings: Our risk assessment has identified the various challenges we will face, and how to mitigate these risks for a successful roll-out of ARIA onto the security market. At the same time, we have also identified our unique selling points and features that have the potential of disrupting the security sensor market.
Objective 11: To assess the total investment required to complete the ARIA project and prepare it for market launch. Key findings: we have analysed the required work and investment needed for this project, and have concluded that we would need € 2,494,500.00.
Objective 12: To build a 5-year financial projections and estimate the expected profitability of this project. Key findings: We have concluded that we will generate a ROI of 2.60 after 5 years of commercialization, with a cumulative revenue of approximately €14 million.
