Hybrid Robot [a lab prototype]

Niche Markets $100M

• Special Forces• Law Enforcement• First Responders

New Markets$500M

• Security, Surveillance• Educational• Retail, Toys

TEAM 1- Hybrid Robot, University of Minnesota A Robot for Joint Ground and Airborne Operations

iCorps Journey Point of Departure

http://youtu.be/tb6o0wR9QEQ2 min video

Video locally

TEAM 1- Hybrid Robot, University of Minnesota A Robot for Joint Ground and Airborne Operations

Mike Bazakos – ELUMN, Industrial R&D and

Technology Transfer

Nikos Papanikolopoulos – PIUMN, Distributed Robotics (DR)

and Computer Vision (CV)

Steve Savitt – IMATK, Industrial R&D

and Insertion

Hybrid Robot [a lab prototype]

Dario Canelon-Suarez (PhD student)

DR Lab/Webinars

Guru Somasundaram(PhD student, CV)Interview support

OUR TEAM Ravi Sivalingam(PhD student, CV)

Lab support

Hybrid Robot Team 1 (UMN)

• Resource for ruggedization• Resource for S.W.A.P. • Resource for aero-engineering • Resource for precision manufacturing

• Develop alpha prototype

• Develop beta prototype

• Establish production

• Facilities for manufacturing

• IP (patents, etc.) • Human capital

• Funding sources

• Cost of selling • Cost of unit production • Cost of support and training • Cost of market share capture

• Asset sales or leasing • Fixed pricing with product

options • Volume pricing

• Internal sales force

• Outside sales agents

• Personal support • Dedicated

support personnel by customer segment

Existing Markets• DOD Special Ops • IEDs/Bomb squads

New Markets • Fire/police• NBC handling• Prisons

• Newness • Getting the job

done • Convenience /

usability • Job safety

THE ORIGINAL IDEA

Initial Hypothesis Tested

The optimum market would be the same as current market for the

Ground Scout Robot (Defense and First Responders)

ACADEMIAICRA Conference

UMN Mechanical EngineeringUMN CS&CE

UMN School of AgricultureDepts: Plant Pathology Biosystems Horticulture Entomology Agronomy

AGRICULTUREUMN Biosystems & Agricultural

EngineeringMN Agricultural & Water

Resource CenterMN Corn Crowers Association

MN Soybean AssociationIndividual Mid/Large Production

Farmers (1,000+ acres)

GOVERNMENTNaval Post-Graduate School

UNMC (The Marines)TSWG (DOD)

US ArmyLaw EnforcementMSP Airport PD

INDUSTRYWillow Garage

Target CorporationAlliant Tech Systems (ATK)

HoneywellLockheed Martin

3MJohnson Controls

Best Buy

We went out and talked to 108 groups & individuals

What we found!

• Potential market for agricultural applications is 10X larger

• We have a potential Market Segment Pivot: Agriculture

Typical Agriculture Customers

• Farmers with basic farming equipment (tractor, plows, etc.)

• Buy services that use more expensive equipment (aircraft spraying, harvesting machines, etc.)

Agricultural Functions Performed

• Precision agriculture• Vertical farming• Aerial surveillance of crops• Weed detection• Soil/moisture assessment• Disease assessment

Hybrid Robot Team 1 (UMN)

• Resource for ruggedization• Resource for

S.W.A.P. • Resource for

aero-engineering • Resource for

precision manufacturing

• Develop alpha prototype

• Develop beta prototype

• Establish production

• Facilities for manufacturing

• IP (patents, etc.) • Human capital

• Funding sources

• Cost of selling • Cost of unit production

• Cost of support and training • Cost of market share capture

• Asset sales or leasing • Fixed pricing with product

options • Volume pricing

• Internal sales force

• Outside sales agents

• Personal support • Dedicated

support personnel by

customer segment

• Existing markets• DOD Special Ops

• IEDs/Bomb squads

• First Responders• New markets

• Agriculture• Fire/police

• NBC handling• Prisons

• Newness • Getting the job

done • Convenience /

usability • Job safety

PIVOT: New Market Segment

Next Hypothesis Tested

The hybrid robot would have sufficient air time range and payload

capacity for intended application

What we found!

• Agricultural farms tend to be very large areas (2,000+ acres)

• Very long air times would be required (several hours vs. 15 min max supported by the hybrid robot)

• We Need a Technology Pivot: Use a separate, larger ground robot to carry, launch, recover, and re-charge the air robot

Hybrid Robot Team 1 (UMN)

• Resource for ruggedization• Resource for

S.W.A.P. • Resource for

aero-engineering • Resource for

precision manufacturing

• Develop alpha prototype

• Develop beta prototype

• Establish production

• Facilities for manufacturing

• IP (patents, etc.) • Human capital

• Funding sources• Our Loper ground robot

• Cost of selling • Cost of unit production

• Cost of support and training • Cost of market share capture

• Asset sales or leasing • Fixed pricing with product

options • Volume pricing

• Internal sales force

• Outside sales agents

• Personal support • Dedicated

support personnel by

customer segment

• Existing markets• DOD Special Ops

• IEDs/Bomb squads

• First Responders• New markets

• Agriculture• Fire/police

• NBC handling• Prisons

• Newness • Getting the job

done • Convenience /

usability • Job safety

PIVOT: New Technology [we already have it: Loper Robot]

Next Hypothesis Tested

Farmers (especially the small ones) are more likely to lease the product or buy service instead of buying the product

• Farmers want to see an actual demonstration, preferably at their farm, before they would purchase the service or the product

• Therefore one or more fairly robust prototypes would be required to be built

What we found!

• Buy product: The product must be easy to use, pay for itself in 2 years and must be working for 5+ years

• Buy Service: A typical expectation is 10+% net profit [*] increase.

• Business Pivot: Consider lease and/or service options

[*] combined benefit of cost reduction and yield increase

What we found (continued)!

• New Markets (primary focus)

• Agriculture• Infrastructure

Inspection & Protection• Niche Existing Markets (secondary)

• Special Ops• IEDs/Bomb

squads• First

responders

Getting the job done:Cheaper, faster, easier and saferProvide:Convenience & usability

• Internal sales force• Outside sales agents

• Personal support• Dedicated support personnel by customer segment

• Asset sales and service• Fixed pricing with product options• Volume pricing

• Facilities for manufacturing• IP (patents, etc.)• Human capital• Funding sources• Our Loper ground robot

• Develop alpha prototype• Develop beta prototype• Establish production

• Resource for ruggedization• Resource for S.W.A.P.• Resource for aero-engineering• Resource for precision manufacturing• Service providers

• Cost of selling/lease/service• Cost of unit production• Cost of support and training• Cost of market share capture

Hybrid Robot Team 1 (UMN)Our Final Version (has 3 pivots)

End-user DomainManufacturerUniversity of Minnesota

Hybrid Robot IP Flow

Hybrid Robot Technology Principal Investigator Robotics Lab Staff

Office of Technol

ogy Licensin

g

Robotics

Platform

CompanySales/

Lease/Service

Distribution

Network

Industry-specific Distribu

tor/ Support

Customer

Distribution Channels

RoboticCompany

Service

Sales

Large Farming Companies (>10K acres)

Medium Farms (2K<X<10K acres)

Small Farms (<2K acres)

$

Market Share Update(Beating Swords into Plowshares!)

TAM$5B

SAM$1BTarget Market $100M

TAM$500B

SAM$10BTarget Market

$1B

Military Market[Source: UMN Scout Robot experience]

Agriculture Market[Source: US Dept. of Agriculture]

Back-up slides

US Department of Agriculture

US Department of Agriculture

US Department of Agriculture

US Department of Agriculture

American agriculture landscape as of 2007

• Number of farms: 2,204,792 (75,810 more farms than in 2002)• Acres in farms: 922,095,840 (Loss of over 6 million acres since

2002)• Farms enrolled in conservation programs: 346,231 Farms

(38,547,450 Acres)• 125,000 farms produced 75% of the value of US agriculture

production• Government Payments: $8 billion, averaging $9,523 per farm.• Average per farm production expenses: $109,359• Female Operators: 306,209 (a 30% increase from 2002)

Source: USDA (US Dept. of Agriculture) - 2007 Census of Agriculture

US Department of Agriculture