Business Case

4. Document the Business Case

4.1 Patenting Your Idea

The UAS system consists of a unique aerial body with existing technologies incorporated to fulfill mission requirements. A utility patent would be the patent type most suitable for this UAS, as those patents cover machines, articles of manufacture, processes, and compositions of matter. Furthermore, the UAS is a utilitarian device and can therefore be effectively covered by the utilitarian patent. Assuming that no prior art exists, the team has determined that patenting this design would be beneficial to establishing a business and keeping a competitive edge in the marketplace as UAS technology continues to develop at an accelerated pace.

The process for securing a patent for the team’s UAS began with the research phase, a thorough search of current patents, patent applications, foreign patents, and other forms of prior art. The search was critical to ensure the novelty and patentability of the product. This step was completed via a literature search of the United States Patent and Trademark Office website to verify that the UAS created by the team can be considered a new and nonobvious product. The U.S. patent search generated no prior art results that could contest the proposed UAS patent. However, searching foreign patent databases produced three somewhat similar agricultural UAV designs that were patented in China within the last two years. The first patent was for an administrative UAV that analyzes the distribution and quantity of pesticides previously applied to a field and collects soil samples for testing (Pengfei 2016). The second patent was for a UAV that sprays pesticide and transmits real-time weather information back to a ground control station (Wei 2015). The final patent was for a real-time information acquisition unit for pesticide spraying and farmland monitoring (Wei 2015). All three of these devices are constructed with a very use-specific design and are primarily targeted for pesticide administration or monitoring. They are fundamentally different from the team’s proposed UAS in form and function and therefore are not obstacles to a patent application.

In order to continue the patent filing process, the team members would extend their search in the next few months to include a wider body of US patent applications to be absolutely sure that no prior art exists. After verifying that this will not be a barrier to the patent application, the team would document the invention, fill out the necessary paperwork, and submit these documents to the United States Patent and Trademark Office for review. If the patent is accepted, it will be valid for 20 years from the date on which the patent is granted. As 20 years is close to the current average lifespan of a technology company, this should be more than sufficient to establish a viable enterprise and business that can then develop improved agricultural UAS technology in the future (Regalado 2013).

4.2 Market Assessment

The proposed UAS design and product discussed above is extremely competitive in today’s market due to its extensive functionality, use of sustainable materials and manufacturing, and system integration. The system has a multitude of useful features that distinguish it from current models. The team’s product is a much more cost-efficient design than existing on-demand UAVs in the agricultural business. For example, one of the leading UAS in precision agriculture, the Lockheed Martin Indago, costs approximately $25,000 and performs tasks such as 3D mapping, crop scouting and multi spectral imaging, far fewer tasks than this UAS. It is only able to carry a weight of five pounds with the payload included. Other systems that the team found while conducting research were drones that performed no more than three tasks. The few that performed more than three tasks like the UAS aforementioned proved to be extremely expensive and most farmers are likely not able to afford them.

The UAS the team designed is not only able to perform different types of imaging in addition to 3D imaging but can also carry an eight pound payload, an additional two pound payload that can be transported to the farmer in case of emergencies, perform emergency weather checks, detect moisture, assist in conducting bioassessment, and monitor livestock. The proposed UAS design is extremely cost-effective especially when compared to current products, of high quality and undoubtedly versatile as it can perform six missions. It is arguably one of the only UAVs that can truly fulfill the purpose of assisting farmers in precision agriculture in an affordable manner.

Additionally, the product goes beyond the challenge requirements by having six missions rather than the required three, making it valuable to a wider consumer audience due to its extensive versatility of function. The UAS will be highly valued within the target market and may eventually become more widespread as it could potentially be used by other fields because of it unique varied features and design.

4.3 Cost / Benefits Analysis and Justification

Balancing the various needs of the challenge were crucial to creating the final design that maximized efforts for the logistics, survey, dash, and additional three missions, while minimizing the overall system cost. One way that the team decided to approach this situation was by using decision matrices for every component. This allowed the team to ensure that components eventually selected presented the greatest value for their cost and optimized a wide selection of criteria, from FAA compliance to durability and weight. The additional missions save the farmer time and money, as several services are able to be done through the use of just one device. Additionally, the UAS is also more cost effective to manufacture, produce, and distribute, as all the tools are in one device.

The team made tentative decisions early in the design process for motor selection and eventually selected the Tigermotor U13. Out of all the different types of motors discussed during the initial research phase, the team settled upon this $370 per unit motor. Although this is the most expensive motor, this choice was made because this motor provides significant benefits that the other motors do not offer. As mentioned earlier in section 2.3.2, 85 kV Tigermotors are powerful enough to be able to complete all of the mission requirements with just four motors instead of six as the team originally predicted. A higher number of motors would have been required to achieve the strength of the Tigermotors, ultimately raising the cost of the motors, rotors, airframe size, weight, and many other components and factors. Therefore, the team decided to select the Tigermotors after comparing the costs and benefits. Using this type of motor decreased the system complexity needed in the design making the product more cost-effective.

The team evaluated the five payload selection choices obtained during the research phase and chose the DJI Zenmuse XT camera that costs $7,400. It was this camera that had the median price among the highest price being $17,000 and the lowest price being $3,600, offering an effective balance between quality and cost. One of the main reasons behind making this selection was the weight of the camera, as it weighs the least, which increases the objective function by improving the speed with which missions can be completed. With the combined ratings in the decision matrix of cost, stabilization, weight, quality, flexibility, and functionality factors, the performance of DJI Zenmuse XT proved to be the best option for the main thermal imaging camera. The Zenmuse X5 was relatively inexpensive and was therefore chosen to supplement the XT in providing video footage on the visual spectrum.

The key components of the objective function (mission efficacy, multipurpose functionality, and system cost) are being optimized by the team’s selection of components that are multi-functional and cost-effective simultaneously. For example, in the payload selection, DJI Zenmuse XT and the DJI Zenmuse X5 are not the most economical from the components catalog but this combination of components enables the farmer to perform four additional functions which include monitoring livestock, 3D imaging, moisture detection and live video feed. Therefore, the team was able to make decisions that were cost effective for the most part, but were also willing to sometimes sacrifice optimal cost for quality and customer service satisfaction, as this build brand image and product reputation, ultimately increasing revenue.

The decisions made for the various components of the team’s UAS show the delicate balance between effectiveness of design and cost considerations. The team was able to develop a solution that has a competitive price and functionality beyond what is currently available on the market, while optimizing these criteria within the component selection decision matrices and objective function calculations.

4.4 Additional Services

The three missions required by the UAS for the challenge (the logistics mission, the survey mission, and the dash mission) were incorporated as aforementioned. In addition to these required missions, the team also decided to design three more missions to maximize the objective function and improve the marketability of the product. These missions included monitoring livestock, 3D imaging and bioassessment. Monitoring livestock would be completed through the use of an additional sensor for GPS tracking via Bluetooth and/or RFID. For 3D imaging, the team will offer processing as an additional service through the use of Autodesk software in which the data analyst must be proficient. In addition, the UAS will be able to transport soil samples and take pictures of erosion conditions in order to perform a bioassessment, assessing the quality of the landscape, crop fields, terrain, or nearby body of water, all of which can affect the general ecosystem health and functioning of ecosystem services, impacting harvest and food production.

In addition to the UAS-related services, the company’s primary additional services are data analytics for the more data-intensive missions, training for farmers and other operational personnel, and maintenance/repair of primary components. An additional fee will be charged for each of these services, although the company will make no profit from the maintenance service, merely breaking even on personnel salaries and the cost of new parts. These additional services will improve the business case for investors, generate greater revenue from consumers, and make the company’s products more attractive to consumers and investors.

4.4.1 Training

The training course for new owners to show them how to operate this UAS would run for approximately 20 hours. The training would include FAA certification, basic UAS maneuvers, operations, and simple data analysis using the C3 equipment. It will cost $475 for the trainers’ salaries, and with a $25 logistics fee, the total charge for the training will be $500. On average, FAA certification classes are about 20 hours long, and an additional ten hours would be used for other training components, but in this case, the farmer does not need to know much of the FAA regulatory information pertaining to residential areas, and so the curriculum can be somewhat truncated. The typical cost for such an FAA course is $300, and the charge for the training is an extra $175 to cover the costs of the trainers and other assistive educational materials.

It is important for the owners to obtain a FAA certification in order to use this drone on the farm and understand how the UAV functions to promote the safety of the owner and the people around the UAS. The basic maneuvers and operations of the UAV would include the fundamental driving controls and activations of the features on the system. Important mission-based actions such as detecting moisture, conducting a bioassessment, 3D imaging and the weather check function would all be a part of the operations section of the training. Simple data analysis training would include analyzing results obtained from weather checks and moisture detection. There are additional services provided with 3D imaging, however the owners will need to know how to analyze the weather checks on their own in order to make timely decisions to protect crops and livestock. Therefore, this operation will be a part of the training given to farmers prior to ownership of the UAS.

4.4.2 Maintenance

Due to the nature of the missions of the drone, its sensors will likely be the most susceptible to damage and wear, meaning they will need the most replacement and maintenance of any of the other UAV parts. The humidity sensor will need to be checked, maintained and repaired if the weather causes damage to it. For example, during a snowstorm or other winter weather conditions frequently experienced in Connecticut, snow or ice might be stuck onto the sensor which will alter the humidity or temperature reading and eventually lead to mechanical failure. The sensors may also need to be cleared of dirt and debris regularly to ensure optimal functioning. This also applies to the camera, as dirt and debris on the lens can affect the quality of the pictures. The team will charge $50 for each sensors and camera maintenance job, as an estimate of the expected working time for a repair technician earning a salary of $25 per hour. There shouldn’t be any other significant maintenance that will be required for this UAV, and infrequent electronics or communications malfunctions can be addressed by an external repair contractor. The maintenance work provided by the team will be independent of the number of systems sold, since some repairs are inevitable, and consumers should not be penalized for routine breakdowns. These estimates could be lower than true values of cost, if a large number of UAVs are sent for maintenance at once, but it shouldn’t take very long to complete the maintenance on a single UAS.

Swapping of components will be offered with an additional fee to cover the cost of purchasing the component and completing the installation. The labor fee charged for a full maintenance would be $80 as this cost will cover the work done on the UAS and travel costs associated with the work. This fee would fluctuate depending on the proximity of the location from the main site of the team, possibly incorporating international locations in the future depending on company growth, success, and expansion.

The team was careful to select components that were of high quality so as to minimize instances of failure. For example, the DJI Zenmuse XT, which had the highest quality, exemplifies that the components selected have exceptional durability. Therefore the team has decided to do yearly maintenance to make sure that the drone is working as designed and is performing all missions as required.

4.4.3 Data Analysis

As stated in section 3, the drone will be used for land survey missions, where it scans the topography of the land. There is also a soil moisture detection mission, in which the drone will be used to measure and transmit the humidity and moisture level of the soil to ensure the farmer administers water where it is most needed, optimizing crop growth and improving financial gains. Finally, the drone will have the added mission of livestock monitoring. It will track large herds of grazing animals, such as cows and sheep. The only inconvenience is that the drone will not be able to track housed animals, like pigs and chickens, however this likely will not be an issue, as the drone is suited best for corn farmers with large fields and integrated livestock grazing areas. To assist the farmer in analyzing data, the team will send a skilled technician to analyze the data and present it in a manner that the farmer can easily understand. The technician rates are detailed in Figure 2.3.5a, but to reiterate, the cost of the analyst will be roughly $35 per hour for 7 hours per mission, on average. For the technician to come out, an additional $60 per hour is added to compensate for utilities, along with a $50 service fee, for a total of $145. The cost is on a per-customer service basis and therefore may be subject to fluctuation due to weather changes. Other fees may arise as a result of complications during service. Much of the data analysis will be done by the drone software, making the appointments somewhere between 9 and 10 hours. The survey will take 7 hours, and 2 hours will be allocated to explanation and breakdown of information. Another hour may be spent discussing further actions, including the next date of a routinely supervised survey and discussions for planning.

The product is aimed towards corn farmers in the US, specifically Connecticut, where the estimated planting season is April through June, and the harvesting season is between October and November. In the recommended scheduling plan for farmers in this area, there will be five routine surveys supervised and analyzed by a technician, one in the planting season, three throughout the growing season, and one 2 weeks prior to the harvest. Should the occasion arise that the farmer requires more monitoring, a technician can easily be sent for an extra fee. The frequency of these extra visits cannot be anticipated, as each farmer may have different situations or may be more knowledgeable than others. Considering the cost of each routine visit, we expect to earn anywhere between $450 to $500 in revenue from analysis alone for each appointment.

4.5 Additional Commercial Applications

Recent demand for unmanned aerial systems has increased significantly because of drones’ capacity to perform work without the need for a human pilot. They are able to accomplish tasks that are either too dangerous or difficult for humans to complete, making them an invaluable tool for furthering technological development and scientific research. Currently, UAVs are used for scientific data collection, business and commercial developments, agricultural surveying, and a wide variety of other applications.

Although the UAS detailed in this document was designed for agricultural purposes, it can also be used for other objectives. This UAS will be ideal for agricultural purposes such as scientific research, land use surveying, and the agricultural development, as it is intended to be used on a farm. However, its functions can be extended to other areas, based on its preexisting mission designs. For example, the UAS has the ability to transport a toolbox to a farmer in the field, it should similarly be able to transport anything that is under eight pounds: delivering small packages to private recipients, transporting soil samples from a field research site, moving small tools at a construction site, or getting medical supplies to disaster zones. Furthermore, the ability to detect moisture and collect data for bioassessment will allow the UAS to be an extremely beneficial tool for environmental scientists to conduct experiments in inaccessible areas such as canyons or rainforests in a controlled, convenient and a cost-effective manner.

The periodic weather check feature of this UAS opens up the variety of additional applications, not only industrially, but also commercially. People can utilize this drone’s data to receive instant weather alerts transmitted directly to their phones to ensure their safety and be aware of any precautions they should take prior to a possible storm. Even though there are weather applications already in use for mobile phones, the Pew Research Center reports that only 64% of Americans own smartphones, and this number decreases drastically when we look at the entire population of the world. Therefore, having even one UAS per city to conduct localized emergency weather checks could save thousands of lives during extreme weather events.

Drones are also currently used as a source of entertainment by hobbyist operators. Amateur aerial photography could greatly benefit from the 3D imaging service offered by the team. Real estate and construction companies could also utilize the 3D imaging feature of the UAS for tasks such as capturing promotional photos of a property, possibly creating a 3D model of the area for sale. A 3D model of their property would help them establish the required visual to effectively accomplish their goals and market to a wider audience. The UAS can execute this task more efficiently than a professional aerial photographer would and for less cost.

Additionally, monitoring animals for mutual safety and containment is important in areas other than farming. Animal control is a significant issue facing zoos and wildlife reserves, as operators must keep track of all animals and protect them and patrons from the dangers of close contact. An aerial system could monitor these animals easily and alert personnel immediately if an issue should arise. In a situation like this, having a machine do this job would be more efficient and would save additional effort and cost.

FAA regulations that must be followed to fly a UAV in a public place. One of these regulations states that the maximum speed of a UAV cannot exceed 87 knots (approximately 100 mph). Without this restriction, the UAV would have been able to complete the missions quicker as its maximum speed exceeds this limit. Another regulation states that the UAV is only allowed to fly during the day. If this regulation was eased, companies would be able to use the UAS at night to complete the work performed during the day, providing continuous livestock monitoring and increasing the speed with which individual missions can be finished. Security companies could use the UAV for monitoring of high-risk areas without actually having to traverse the land. It would be safer and more convenient to use a UAS than a human to complete such a task at night, as the UAS is far less likely to make an error due to tiredness or poor visibility. Easing these regulations would increase the commercial potential and the efficacy of the UAS.

Selling this UAS outside of the United States would not require many major changes. The team will need to reconsider the decision to offer data processing services for 3D imaging and other forms of data collected by the UAV. This service can either be completely eliminated for international customers or offered for an additional international service fee through a digital platform such as PTC Windchill or Kanbanchi. For example, the consumer can transfer image data to the team via a cloud storage or spatial processing software, so that the team’s data analysts can stitch the images into a 3D model and send it back to the consumer. Technical translations and language barriers pose another challenge for international marketing, and the team would have to acquire external services to ensure that all training and the maintenance information is accurately translated into other languages. Finally, regulations for unmanned aircraft for private and public use vary greatly between countries. For example, the US FAA imposes line-of-sight and licensing restrictions on commercial drones, while China is implementing a cloud-based drone registration and monitoring system to prevent commercial UAVs from entering certain areas (Library of Congress 2016). This variance must be accounted for either by meeting the most stringent requirements for all countries or by not offering the product in countries where the producer can be held accountable for misuse of the product and noncompliance with national restrictions.