Business Strategy

⦁ Business Model

business picture

Business picture below summarizes the Business strategy for DOB.

The key suppliers are the micromotors and WIFI modules providers, as well as the assembly company of electronic boards, because they are direct contacts of the manufacturer (Janecosystems has already made purchases for the prototypes). Janecosystems also has a commitment to procure and they guarantee us a very advantageous price of the market (in purchases of thousands of units).
In terms of customers, companies in the traditional toy sector, direct contacts through visits (who have seen the demonstrations and are interested in buying products).
Janecosystems will assess four potential revenue models in the feasibility study:

⦁ B2C – Direct sales of devices (drones and beacons). The end user can access the game server, play free basic games (pre-established) and access the paid games area with a subscription for 1 year. The basic equipment consists of 5 drones and four beacons for a price of €350, the subscription costs €40 per year.

B2B – Specific client-based developments for new or existing games. The development and/or adaptation will be provided as a service and a non-exclusive license will be provided for the use of the technology (fees calculated based on the game and the company).

B2B – Payment for use. In this case, the companies that develop their games (previous step) can place them on Janecosystems servers. Company will pay them 15% of the subscription fee of the final customer subscribed to their game.

⦁ B2B – Sales of devices (drones) adapted to specific games. A company can buy drones adapted specifically for them, even if the control software of the equipment is property of Janecosystems. The purchase volume will give the price.
In the manufacturing process of minidrones, there are two distinct phases that affect the scalable model of DOB:
⦁ Scaling in manufacturing would cover from a few units per month (500-5000, subcontracting a local company) to a higher level of manufacturing (> 5000 units*month) where Janecosystems would hire larger production companies, diversifying them according to demand and experience.
⦁ The load of the software in each equipment will be through a Janecosystems operator, who will control the security and will only need a non-specialized training, which allows easy contracting on demand.
Because players are online and play around the world, transcending markets and countries, we copy the MMPORG model where there are no physical barriers and players only need minidrones and an internet access.

Intellectual Property Right (IPR) and Legal Framework
Standards and mandatory regulations have been established in major toy markets to reduce the risk of injury from electrical and electronic devices. In addition to general toy safety, there are specific regulations that address the major electrical, mechanical and thermal hazards of electric toys. As manufacturer and potential distributor, Janecosystems will need to comply with the specific regulations for electrical and electronic toys in different countries and territories. Since the company will initially focus on the EU and USA markets, its main objective will be to obtain the CE and the FCC markings. These markings indicate the product compliance with safety requirements. In Europe, toys fall within the scope of multiple standards and directives. Battery powered electronic toys must also comply with: Toy Safety Directive 2009/48/EC, EMC recast Directive 2014/30/EU, R&TTE Directive and RED 2014/53/EU, RoHS2 Directive 2011/65/EU, WEEE recast Directive 2012/19/EU and Battery Directive 2006/66/EC. Janecosystems is already working with certified providers and is already fulfilling most of these requirements.
In terms of IPR assets, Janecosystems has already protected the invention for the «Online shared game device» with a patent in 2016 (PCT/ES2016/070631). As part of the feasibility study presented in this proposal, the company will also perform, with the assistance of a specialized firm March & asociados, a study to determine the best way to protect the IP related to the innovative «Local Positioning System» and the ultrasonic and infrared based technology. Beside the IPR, it is worth to mention that Janecosystems has also introduced, as a complementary measure, specific elements in the hardware and software to avoid reverse engineering.
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