Introduction to Drones & Airware1
Value Proposition2
Comparison with Competitor3
Customers & Markets4
Value Capture5
Strategic Control6
Issues & Improvements7
Introduction to Drones & Airware1
Value Proposition2
Comparison with Competitor3
Customers & Markets4
Value Capture5
Strategic Control6
Issues & Improvements7
INTRODUCTION
• Unmanned Aerial Vehicles (UAVs)– Controlled by ‘pilot’ on the ground OR autonomously via software
• Light weight and mobility permit various applications
Drones Airware
General Atomics MQ-1 Predator firing a
missile
Negative connotation
common
Military, Data collection, Agriculture & wildlifeRecreation, Commercial use
INTRODUCTION
2014: 15.22 Million
2020: 1.27 Billion
2035: 5 Billion
Annual Commercial Drone Market Size
(USD)
In 2035, UAV ops > Manned Aircraft ops
Drones Airware
Drones Airware
Founded in San Francisco in 2010
Raised over 40 Million USD in investments
Making drones more accessible for commercial useby providing novel operating system for drones
INTRODUCTION
Aerial Information
Platform (OS)
a) Flight Core
b) Ground Control Station Software
c) Configuration Manager
d) Airware Cloud
Main Product
INTRODUCTION
Examples of uses
Insurance inspection Damage assessment
Environmental monitoring
S&R
Land management
Public Safety
Survey
Mapping
Drones Airware
Range of Industries
Introduction to Drones & Airware1
Value Proposition2
Comparison with Competitors3
Customers & Markets4
Value Capture5
Strategic Control6
Issues & Improvements7
• Vertical disintegration between drone manufacturers, OS developers, application software developers, and component manufacturers
• Different capabilities are required along the value chain, hence Airware focuses on developing the brain
SCOPE OF ACTIVITIES
Value Proposition
Aerial Information
Platform
Drone manufacturerLower development and
integration cost for customized drones, solve interoperability
problem, address safety/Regulatory issuesApp developer
Single common platform, integrate aerial data into
app
Component developerLower development cost, solve compatibility issue
Development of Windows Vista
10000 employeesx
$200000/year/employeex
5 years---------------------
$10 Billion
Value Proposition
Aerial Information
Platform
Drone manufacturerLower development and
integration cost for customized drones, solve interoperability
problem, address safety/Regulatory issuesApp developer
Single common platform, integrate aerial data into
app
Component developerLower development cost, solve compatibility issue
Enterprises
•Safe, reliable and flexible OS•Inexpensive system
•Quick tailoring of drones•Compatible with fleets of
different UAVs•Integrate aerial data into existing business systems
•Common interfaceGovernmentSafety assurance
Drone leasing companies
Wider range and lower cost of applications
Introduction to Drones & Airware1
Value Proposition2
Comparison with Competitor3
Customers & Markets4
Value Capture5
Strategic Control6
Issues & Improvements7
Competitor
Independent, open-source, open-hardware project aiming at providing
autopilot system
Autopilot SoftwareNuttX real-time operating system
Autopilot HardwarePIXHAWK
PX4 Autopilot Strategy Canvas User Comparison
High
Low
Security Standardization VarietyPrice
Aerial Information Platform
PX4 Autopilot
PX4 Autopilot Strategy Canvas User Comparison
Competitor
SpecificityAPI Openness Installed base
Competitor
Aerial Information Platform
Aircrafts: Delta Drone, Altavian, Allied Drones
and Drone America
App Software: Pix4D, 2d3 Sensing, Sightline
Components: Mica Sense, Phase One,
Trillium, GE, Amimon, Swift, Sagetech, Alta
Devices
PX4 Autopilot
PixHawk: Available from:
3D Robotics Store, Unmanned Tech, BYOD, UAV store, onDrone UK
App Software: Open source
Peripherals: 3D Robotics
VS
PX4 Autopilot Strategy Canvas User Comparison
Introduction to Drones & Airware1
Value Proposition2
Comparison with Competitors3
Customers & Markets4
Value Capture5
Strategic Control6
Issues & Improvements7
Customer Selection
Enterprises and consumer use
(Final Customers)
App & Component
developers
Manufacturers
CUSTOMER SELECTION
Dangerous repair work
Major Needs
Information gathering
Inspection
Safer work environment Trucks
Current solutions
Human resource
Helicopters
Satellites
Enterprises Drone Manufacturers App & Component Developers
Enterprises Drone Manufacturers App & Component Developers
Agriculture Industry
CUSTOMER SELECTION
• Inspecting the crop field
• Collecting information for crop yield
• Spraying pesticides
Microsoft• Diverse user-base• High compatibility• User friendly interface
CUSTOMER SELECTION
• Set Airware‘s integrated platform as an ingredient brand in order to raise assurance of authenticity and trust.
• Build a powerful drone together.
Intel: 1990s branding• Valuable feature in computers• Ingredient brand
Enterprises Drone Manufacturers App & Component Developers
Similarities in
valuation
Specifications
Software
Customer review
Enterprises Drone Manufacturers App & Component Developers
CUSTOMER SELECTION
Enterprises Drone Manufacturers App & Component Developers
CUSTOMER SELECTION
• Provide a platform for third party developers for drone software and applications.
Android and iPhone• 1.5 and 1.4 million Apps• Avenue for start-ups• Network effect
Enterprises Drone Manufacturers App & Component Developers
CUSTOMER SELECTION
PIXIEPATH
• Connecting individual drones to the cloud.
• Directing the activities of fleets of drone.
FLYVER• Providing a platform to link
with android ecosystem.• Link to open source app
developers.
Introduction to Drones & Airware1
Value Proposition2
Comparison with Competitors3
Customers & Markets4
Value Capture5
Strategic Control6
Issues & Improvements7
VALUE CAPTURE
Subscription
2500 USD/year for Aerial Information Program (AIP)Includes software, cloud services, app library, support
Revenue model Indirect Crowdsourcing
Pros for Airware Pros for customers
- Guaranteed revenue for subscription period- Provides time to build customer loyalty higher avg customer lifetime value
- Customers can generate revenue, to finance Airware subscription, by leveraging drones- More cost-effective for repeated usage- Forces Airware to continuously improve to cater to customer needs better r/s
Cons for Airware Cons for customers
- Customers unsure of usage frequency may hesitate to subscribe
- Possibility of vendor lock-in
Revenue model Indirect Crowdsourcing
• Aims to accelerate commercial drone innovation by funding relevant startups
• Enables Airware to specialize in niche areas (value capture) Enhanced value proposition through future acquisitions Airware compatibility
VALUE CAPTURE
Introduction to Drones & Airware1
Value Proposition2
Comparison with Competitors3
Customers & Markets4
Value Capture5
Strategic Control6
Issues & Improvements7
Industry standard Legal protection
• Current U.S. law requires case-by-case FAA authorization to fly a commercial drone
• Establishment as industry standard with authority approval upon satisfying regulatory requirements can boost revenue sustainably
• AIP could become default standard for drone OS to attain authorization
STRATEGIC CONTROL
Industry standard Legal protection
Higher user confidence and security
More extensive compatible 3rd
party product development
Indirect Network Effects
STRATEGIC CONTROL
• Household name in microprocessors
• Provides guarantee of product quality/performance
• “Airware Inside”?
Industry standard Legal protectionSTRATEGIC CONTROL
Public disclosure of invention required
Liability of lawsuits & possible incurred costs
Restrict competitors from gaining market share (AIP only integrated drone
OS currently)
Increase product credibility
+
-
Patenting of key components of AIP source code
STRATEGIC CONTROL
• Technologies being adopted faster than ever• Other companies likely to develop similar Drone OS (e.g. AIP) in
near future• Patent protection advisable
Introduction to Drones & Airware1
Value Proposition2
Comparison with Competitors3
Customers & Markets4
Value Capture5
Strategic Control6
Issues & Improvements7
i. Government regulation
ii. Security issues
iii. Public skepticism and fear
iv. Data security
ISSUES
IMPROVEMENTS
• Enhancements to value proposition:
Introduction of safety feature into AIP to enable police to override user-directed flight of drone
Authorities more likely to approve AIP for enterprise usage Reduced chance of drone-related accidents/crimes Increased confidence in
Airware-powered drones Airware provides testing and licensing services for drone operators
IMPROVEMENTS
One-time fee
• Charge a fee for acquiring OS
• Charge for every update released and installed
Free OS
• Stop charging customers for OS and updates
• Earn revenue from developing drones and software
Contract-based fee
• Integrated service: customization, data management, etc.
• Alternative methods of value capture:
IMPROVEMENTS
One-time fee
• Charge a fee for acquiring OS
• Charge for every update released and installed
Free OS
• Stop charging customers for OS and updates
• Earn revenue from developing drones and software
Contract-based fee
• Integrated service: customization, data management, etc.
• Updates released to subscribers only to minimize piracy
• Free trial
Data management likely to be highly profitable given IoT trend
Airware can provide enterprise solutions rather than just customized drones
IMPROVEMENTS
• Alternative method of strategic control:
• Develop applications in addition to OS
• Data management and processing
• Security system
Data ownership for analytics
(upon customer approval)
Generate and sell optimized solutions
Sell data as market research
Enhanced capabilities due to IoT
SUMMARYDrones
ApplicationSoftware Components
& Peripherals
ECOSYSTEM
Potentially a winner-takes-all industry
i. Government regulation
ii. Security issues
iii. Public skepticism and fear
iv. Data security