RoboVac a UTC Corp.

Power Generation Engineer Juan Gamarra

Electrical Systems Engineer Diego Molina

Electrical and Software Engineer Jetmir Palushi

Market Research & Development Raymond Perez

Industrial Design and Testing Eng. Joseph Seborowski

Project Description - Technical

Omni directional - Programming

Cleans efficiently - Coordinate Tracking, Dust detection

Infrared sensors – Stair Prevention

Bumpers – Cost effective

Wireless – Self Charging

Reshape – Wall corners

Better Cleaning

Battery Suction Sensors Shape

Project Description - Business

Key Business Goals

Environmentally friendlyBe the leader in economic robotic vacuum cleanersFirst prototype to be released in mid AprilProduct introduced in fourth quarter December 2007Capture 20% of robotic vacuum cleaner sales by 2009First product serves as a platform for high end robotic vacuum cleanersInclude a two year full warranty with every vacuum sold

Primary MarketsNew robotic vacuum cleaner usersMiddle – class families ($25,000-$100,000)Average size homes (2300 sq. ft.)

Secondary Markets

Existing robotic vacuum cleaner motorProfessional cleaning servicesSchools, businessesUpper class families ($100,000 – unsp.)

Assumptions and Constraints

New product platformSelf chargingSelf dockingInfrared systemWireless systemSome devices and parts will be manufactured outside of the United States to meet the sales objective

Make or Buy MatrixItem Business function: Outsource

(Buy from others)In house

(Make by yourself)

1Conduct market research, preliminary design

X

2Research and Development (R&D)

X

3Product / process / service testing: alpha, beta

X

4 Licensing technology FROM others X N.A.

5Fabricate components

X

6Develop software

X

7Assemble components (final assembly)

X

8Test final assemblies, pack and ship

X

9Distribute product / process /service to customer

X

10 Provide after-sales service(training, adjustment, repair, replacement, refund)

X

Outsource vs. OwnOwn

Out Source R&D

Licensing

Assemble, Marketing Distribution

Customer Service

Customer

Manufacture

Components

Repairs

What Business Am I In?

Robotic cleaning solutions Cost effective Quality Highly functional User friendly Heavy-duty cleaning All size rooms (up to 500 sq. ft.)

Customer Needs

Primary and Secondary Customers

New robotic vacuum cleaner users

Unhappy robotic vacuum cleaner users

Middle – class families ($25,000-$100,000)

1.7 million potential US customers (8% of market)

Total Market Share

Year 1 = 150,000

Year 2 = 180,000

Year 3 = 216,000

Year 4 = 259,200

Year 5 = 311,040

Competitor Analysis

Patent Analysis

Existing Patents Autonomous Robotic Vacuum Cleaner Method and system for robot localization and confinement Area coverage with an autonomous robot

Potential Patents Wireless Transmitter Algorithm Unidirectional Movement

Overall Rank of Intellectual Properties = Average

Risk Analysis of Venture

-Conclusion: New Product and existing market in year 0 is medium to high risk because this is the first product for this company, customer may question reputability. However, the market for semi-autonomous robotic vacuum cleaner have escalated consistently over the last 5 years.

Finances – Summary FoMs

Finances - Summary of FoM Values

MARR 15%

IRR 33.78%

NPV $20,161,065

Payback in years 3.75 yrs

Conclusion: Excellent

Venture Capitalist

Promise 8% return (more likely to be in the area of 15-20%)

Market has shown a growth of 20% every year

Financial Model predicts an IRR a little over 33%

Payback period is within reason Risk vs. Reward

Lesson Learned

General understanding of the robotic vacuum cleaner market

Impact of engineering economics Manageability Design for manufacturability Marketability HOW TO SELL YOUR PRODUCT!!!!