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History of ITC and hardships faced by CEO Zhang

Group 7
• Mrunal Dudhamal (1902140)
• Chetan Nawle (1902146)
• Niharika Agarwal (1902148)
• Nikunj Daga (1902149)
• Parimal Fating (1902158)
• Raviraj Pishe (1902164)
• Sayli Pote (1902166)
History
He was accepted to AlphaLab
He requested every Friday off
Richard Zhang had founded Gear, a Pittsburgh,
his Goldman Sachs internship
ITC in 2013 while he was a Pennsylvania accelerator that
to work on his drone startup
college student. focused on hardware
concept.
innovation.

Zhang assembled a team of


Zhang originally sought to Zhang raised seed funding
Carnegie Mellon University
develop drone hardware to from Birchmere Ventures to
graduates to build out an
detect mines or improvised build out the technology as
autonomous drone system
explosive devices (IED), hence well as the sales and marketing
that could gather the data
he named it Identif-IED. engine
itself.
History
ITC drone data services provided
ITC soon pivoted toward
construction companies real-time
developing commercial drone
intelligence to optimize
software, primarily for the
operations, gauge profitability,
construction industry.
and save costs.

Transition from 2013 to 2017:


Since its founding, the company
In order to meet customer expect
had grown from 2 to 50
ations, ITC developed an autonom
employees, raised over $7 million
ous drone system that can collect
in venture capital financing,
data on its own. As a result ITC’s
acquired over 50 customers and
client base and reputation grew.
reached $2.5 million in annual
recurring revenue.
CURRENTLY AT ITC

• Site IQ - A cloud-based software tool that converted drone images


and location data into a variety of 3D visualizations and analytics
(e.g., change detection, slope grade estimation) to help customers
accurately plan and manage construction sites and other large-
Cloud Based scale projects.
• Truck IQ - Uses sensors to track expensive trucks and machinery on
Tools the maps generated by Site IQ. Trucking companies spend
hundreds of thousands of dollars daily renting trucks for hauling
routes. A trucking company could lose 40% in productivity due to
unexpected icy roads. Truck IQ predicts these conditions by
combining drone data with GPS truck tracking.
• Almost Lost his limb
In 2013, when he was a student at the University of
Pennsylvania, Zhang almost lost a limb when his test drone
turned on him. He tried to block the drone as it flew at his face
and got 18 stitches on his arm.
• Decided to Drop out from his college
He used to drove to Pittsburg spending 12 hours on the road to
meet his investors and again drove back to class at 4pm and he
Hardships faced was very tired and obsessed and had no time to sleep properly.
After nearly failing his engineering courses, Zhang decided to
drop out of college and focus on the startup.

• Did Not Further Pursue Goldman


Sachs Internship
Zhang had an investment banking internship lined up at
Goldman Sachs in summer in which he did not go the full way.
• Extremely customer sensitive
He made it a point to visit customer sites himself along with his team.
Shapiro recalled a time when he had to retrieve a drone that the
construction customer had flown off his site into a maple sap farm in
rural Pennsylvania. “All of our customer’s valuable data was on there. It
was stuck in a tree too tall to climb, so I had to negotiate with the
neighboring farmers to let us cut it down." Shapiro said
• Build Autonomous Drone System
As Zhang accepted additional projects, he saw that it would be
impossible to efficiently scale the company while manually piloting
every flight. Customers wanted flights flown multiple times a week in
Hardships faced multiple states. It was complex and expensive to send hired drone
pilots out for every flight. Customers did not want to manually fly the
drones themselves, so Zhang assembled a team of Carnegie Mellon
University graduates to build out an autonomous drone system that
could gather the data itself.
• Regulatory
Drone regulations evolved from an outright ban on commercial drones
to limited use based on size, location, and purpose. The FAA used to
require a pilot’s license to fly a drone. It cost $7,000 and two to three
months of in-air flying time to get that certificate. By September 2016,
the FAA started allowing non-pilots to fly commercial drones with
Certificate of Waiver or Authorization (COA) by passing an aeronautical
test and background check from the Transportation Security
Administration (TSA).
• Changed his Vision
Initially, Zhang envisioned military applications such as
detecting land mines. However, he quickly changed plans a few
weeks into the accelerator. He came to realize that winning
military contracts required long sales cycles, relationships, and
product certifications that he could not afford as a newly
minted, one-man startup so he shifted his focus to construction
and other industrial markets.

Hardships faced • Transition to Subscription Construction Software


Jonathan Shapiro, who later became Account Executive in ITC
encouraged Zhang to start talking to potential commercial
customers. Zhang was connected to a superintendent of a local
construction site and showed up to do customer discovery, just
taking photos and videos. Within 24 hours, they signed the first
contract.
Thank You
SWOT ANALYSIS

Presented by :-
•Mukesh
•Paritosh Kumar
•Akash Mundra
•Paridhi Jain
•Mohit Srivastava
•Mohit Tyagi
•Pourush Bara
STRENGTHS WEAKNESSES
• End to end services • High price
• Customer orientation • Technology adoption in

S W
• High Quality construction industry
• Relevant applications • Social Media Marketing
• Support for 3rd party
developers

O T
OPPORTUNITIES THREATS
• Market Opportunity • Threats in Software
• Easing laws, regulations Market
• New industries • Threats in Hardware
• Integration with Industry Market
tools • Technical Risks
• End to end services:

Strengths • Competed with other high-end drone data software


providers, but never with low priced providers like
DroneDeploy.

• Provided full-Package of services expected by enterprise


customers.

• It offered a premium end-to-end subscription service for


an average annual price of $40,000 to $60,000 per year.

• This service included a DJI drone, customer support, and


most importantly, data storage and analysis.

• It took care of everything from government flight


permits to drone insurance.
• Customer orientation:
• “All of our customer’s valuable data was on there. It was
stuck in a tree too tall to climb, so I had to negotiate with
the neighboring farmers to let us cut it down. Whatever it
takes to put our customers first,”

• “Customers don’t have to worry about anything. The


Strengths drone does everything from taking off, to flying, to
landing,”

• “All of our best features were inspired by our customers.


Our engineers visit the sites and watch trucks all day. Our
West Coast competitors don’t do that,”
• High Quality:
• Pursued a high-price, high-quality direct sales approach.
• Relevant applications:
• Offered most of the relevant services on Site IQ instead
of providing gazillion of apps.

• Site IQ, a cloud-based software tool that converted drone


images and location data into a variety of 3D
visualizations and analytics.

• Truck IQ, used sensors to track expensive trucks and


machinery on the maps generated by Site IQ.
• Low IT integration construction:
• Construction firms took over 26 months for
New software implementations.
Weakness
• For construction industry, lack of IT staff,
employee or management reluctance, and
steep learning curves were the main barriers to
technology adoption.
• High price
• Support for 3rd party developers
• ITC did not offer the tools, documentation or
developer support for 3rd party software
developers to write applications compatible
with ITC systems
• Social Media Marketing
• ITC’s target audience did not work in front of a
computer all day, making low-cost online
marketing through social media ineffective.
• Market Opportunity:
• Analysts forecasted over $23 billion in total addressable
market opportunity in the commercial drone sector.
Opportunities
• Venture capital investment poured into the field, from
$42 million in 2012 to over $500 million in 2017
• Easing laws, regulations:
• U.S. drone regulations and laws evolved to allow
individuals to use drones for commercial purposes.
• New industries :
• Other industries also began to adopt drone technologies
included: mining, police and fire departments, insurance,
coast guards, real estate, and journalism.
• Integration with Industry tools
• Although the construction industry was not mature in
the area of software adoption, various technology
companies like AutoDesk, Trimble etc., were able to
successfully penetrate the market.
• Threats in Software Market:
• Drone Deploy: DroneDeploy, which had entered the
commercial drone market with a low-end, disruptive
platform model and had rapidly grown its user base through
an inbound viral marketing strategy.
Threats • Threats in Hardware Market:
• 3DR: 3D Robotics (3DR), a Silicon Valley startup became the
leading American drone manufacturer valued at over $360
million by 2015.

• By 2016, Chinese manufacturers introduced comparable


drones at significantly lower prices.

• By 2017, the Shenzhen, China-based company Dà-Jiāng


Innovations Science and Technology (DJI), became the
leader of the drone hardware market with over 50% share
and a valuation of $10 billion. It took the drone industry by
storm with its vertically integrated hardware and rapidly
falling price: in a single year, DJI reduced its drone prices by
70%.
• Technical Risks:
• Integrating with third-party applications also opened up
technical risks.
Thank you
Key Takeaways & Learnings

• Nikunj Garg 1901073


• Poras Narnaware 1901080
• Prabhat Kumar 1901081
• Nousha Surendran 1902152
• Pragya Jaitely 1902169
• Sayali Wathore 1903013
• Prateek Saxena 1904027
Marketing strategy should be
focussed
• Company worked on partner-ship model
• Company executives would provide a demo at site for two
days
• Company focussed on data generation and the benefits
that can be leveraged.
• Always marketed product as High end, High quality
product.

Results
Company always won bids against Drone play
Customer centric
Approach wins
• Specialized services to train drone pilots
• Complete packages so that customer don’t
have to worry about anything.

Results
• Company retained 90% of its customer with subscription renewals
• Company partnered with China-
based company Dà-Jiāng Innovations
Science and Technology (DJI), the
leader of the drone hardware market
with over 50% share.

• ITC was one of the first companies to


pivot away from building its own
Collaborate to win over drone hardware and use DJI hardware

competition
Resiliency is Important

• Company CEO initially envisioned military applications such as


detecting land mines but soon changed it because it was unfeasible.

• It was complex and expensive to send hired drone pilots out for every
flight so company CEO assembled a team to build out an autonomous
drone system that could gather the data itself
Product Development is key

•All of the best features were •Priortized customer, if they •Differentiated their product
inspired by the customers felt deal were being lost from other players
Focus on Expansion

AGRICULTURE INSURANCE OIL & GAS WASTE


MANAGEMENT
RISE OF THE DRONES
Identified Technologies
GROUP 3
• Nishtha Singh (1901074)
• Poorvika singh (1901079)
• Priya singh (1901084)
• Basupally mouniKa reddy (1901087)
• R Maurya (1901088)
QUESTION TO BE
DISCUSSED:
Explain the Technology Portfolio and Technology
Management Strategies Followed?
• Early Days: From Hobby to Hardware Startup
In 2013, as a mechanical engineering, Zhang almost lost a limb
when his test drone turned on him.
He recalled the “A PhD student in my lab flew 10 drones at once.
It was magical.” and by the time he realized that the drones an be
a game changing technology.

RISING OF • Identified technologies

DRONES……… Zhang had founded ITC four years earlier while he was a college
student.
Originally it was engaged in developing drone hardware to detect
mines or improvised explosive devices (IED), hence the name
Identif-IED
ITC had grown its customer base by 40% since the last quarter as
it pursued a high-price, high-quality direct sales approach.
Moreover, analysts forecasted over $23 billion in total addressable
market opportunity in the commercial drone sector
• Lower manufacturing cost, • Drone Deploy 2013 start-
Global Battle smart online adoption up provides cloud-based
makes drones available.
And Threat • Initially start-up would
platform for mapping
and analytics.
custom-make hardware and
software , 3D Robotics, a • It provided solution for
Silicon valley startup large organization who
initiated manufacturing of would want to have trial.
drones. It focused on crating a
• Massive changes to be
community of online-
brought due to Chinese users who could interact
manufacturers. DJI(Da -Jiang and answer each-others
Innovation) vertically question.
integrated with falling
prices.
• The Drone Deploy App
Market which featured
68 applications
Lower manufacturing cost, smart
online adoption makes drones
available.

Global Battle Initially start-up would custom-


make hardware and software , 3D
of Drone Robotics, a Silicon valley startup
Hardware initiated manufacturing of drones.

Massive changes to be brought due


to Chinese manufacturers. DJI(Da -
Jiang Innovation) vertically
integrated with falling prices.
Identifed Transition to Subscription Team function
Technologies Construction Software • Marketing- Prospective
• Customers wanted flights flown clients could be reached
multiple times a week in multiple through niche industry
states. It was complex and publications and
expensive to send hired drone conferences.
pilots out for every flight.
• Sales - The sales team
• Site IQ The company’s principal found site managers were
offering was Site IQ, a cloud- impressed when they saw
based software tool that converted all the new data they
drone images and location data could leverage.
into a variety of 3D visualizations
and analytics • Customer success
• Regulatory
• Engineering
Potential New
Markets for ITC:
• Agriculture: The primary driver of profitability in this
industry was operational efficiency. Drones could reduce
operating costs through automation by monitoring
thousands of acres of farmland in a single day, allowing for
targeted watering, fertilizing, and pesticides applications
• Insurance: Insurance companies and agents began using
drones for more safe and efficient inspections
• Oil & Gas: Oil and gas companies traditionally used ground
or helicopter crews to conduct required monthly
inspections. Drones offered a substantially cheaper,
automated solution
• Waste Management: Waste management firms could use
drones for monitoring landfill capacity. Drones surveyed
5,000 square meters of landfill in one hour, compared to 24
hours using traditional methods, and cost 80% less
ITC would have to modify its
software, such as by opening
data import/export, to make it
Platform easy and safe for third-party
applications to run on its
versus platform, and then provide
Application documentation and developer
support to help these third
parties develop the
applications
THANK YOU………..
GROUP 4

• Team Members:
• Pranav Hareendran -1902170
• Nilay Srivastava- 1902150
• Kuldeep Kothari- 1905021
• Kshitiz singh-
• Parth Sharma-
STRATEGIES EMPLOYED BY • Prasenjit das-1901083

ITC
INTRODUCTION
❑ Initial strategy was to create military applications like detecting
landmines.

❑ Identified that winning military contracts required long sales cycle,


relationships and product certifications.

❑ Changed strategy into accelerator.

❑ Identified potential in the $1 trillion construction industry.

❑ To scale the company, ITC acquired Carnegie Mellon University


graduates to build autonomous drones that could gather the data
itself.
Site IQ
❑ Cloud based software tool that converted drone images and location data
into 3D visualization and analytics

❑ Helped customers plan and manage construction sites and large-scale


projects

Site IQ: Cut/Fill Tool


Truck IQ
Sensors to track expensive trucks and machinery
on maps generated by site IQ

Need for software


40% productivity loss due to unexpected roads

ITC offered premium end to end


Conditions can be predicted, and measures can subscription for 40,000 to 60,000 with
be taken the following cost structure breakup:
TEAM FUNCTIONS

ENGINEERING
MARKETING

CUSTOMER SUCCESS

REGULATORY

SALES
MARKETING

❑ The clients could be reached effectively only through niche industry


publications and conferences.

❑ After scouting and qualification of lead, Account Executive takes the


lead.

SALES

❑ AE would establish rapport with existing customer

❑ In some cases, the sales team would contact the top executive
whereas in others they would contact the day to day workers

❑ After potential customer agrees to prospects, Proof of Concept is run


at site.

❑ For large clients, top management along with sales team gets
involved to convert the lead.
CUSTOMER SUCCESS

❑ The CS managers oversaw training of drone pilots, creation of flight


plans, and data capture implementation

❑ They assist the customer when anything goes wrong, resolve


customer grievances

❑ A CS Manager had 25 customers assigned under him

❑ As of 2017,firm retained 90% customers with subscription renewal


REGULATORY
MEASURES

• Drone regulations evolved from an outright ban on


commercial drones to limited use based on size,
location and purpose.
• Expensive Pilot license and 2-3 weeks of prior flying
time
• Certificate of Waiver or Authorization (COA) by passing
aeronautical test and background check from
Transportation Security Administration
• Submission of detailed specifications, flight patterns,
functionalities and procedures.
• Height and speed limit during daylight and otherwise
• High fines in case of non-compliance
ENGINEERING
MEASURES
• Engineering team developed and supported the
integrated ITC product technology

• All the best features in ITC products were inspired from


customers

• ITC directly integrated new features themselves into


their system in a seamless and cyber-secure way

• The team prioritized work based on its potential


business value

• Executives promised new features as incentives to close


the deal
Thanks!
Group 5
• Pradeep Kumar 1904026
• Shail Patel 1902164
• Harshil Parikh 1902157
• Prabhakar 1902168
• Parth Vaishnav 1901077
• Pawan Singh 1902162

Evolution of Drones and the Constraints in Adoption


Journey of Drones

1. In 20th century the journey started from remote controlled aircraft due to advancements in
telecommunication, navigation and sensing.
2. Lower electronics manufacturing costs, driven by the mass adoption of smartphones and other small
electronics, made drones available to a larger market of consumers and commercial users by the start of
the 21st century.
3. A typical drone consists of hardware like, GPS, sensors and cameras, which can be controlled by the
software by taking data from the hardware.
4. Most early drone startups custom built their own hardware and software, in which the software of one
company can not be used to other hardware. This changed when Chinese Manufacturer DJI started making
hardware cost-efficiently and other companies started developing versatile software.
Battle ground – Drone Hardware

1. The new hardware and software startups came into existence due to new investments : 3D Robotics
(3DR), valued at over $360 million by 2015.
2. Chinese companies entered in the marketplace of drones: Dà-Jiāng Innovations (DJI) (‘Apple of drones’)
with low prices
3. Most U.S. drone startups BY 2017, partnered with DJI for drone hardware and pivoted on developing
data analytics software or services
• Drone Deploy:
1. A disruptive cloud-based software platform for drone mapping and analytics. offered a free online
directory for finding local companies to operate and pilot a commercial drone with a low-price offering.
2. By 2016, Drone Deploy was being used in 130 countries and helped map over 5 million acres of land.
Evolution of drones
• Drones evolved from remote-controlled aircraft of 20th
century after tech. advancement in telecommunication,
sensing & navigation.
• Like smartphones, drones also have physical hardware
with controlling software.
• Early startup custom buildup their own hardware and
software.
• In the initial absence of established players, new
investment fueled both hardware and software startups.
• 3D Robotics becomes leading drones manufacturer of
north America in 2015 with total value of $360 million.
• By 2016 many Chines manufacturer came in the market
and local manufacturer were enable to compete with
them.
• By 2017, a chines company DJI has covered 70% of the
drone hardware market share in North America.
• Local companies like ITC & 3D Robotics partnered with
DJI for hardware and refocused their efforts on
developing data analytics software.
• DroneDeploy featured 68 applications on their
platform out of which 47 were for general
purpose, 9 for agriculture, 8 for construction &
4 for roofing.
• DroneDeploy’s platform was open for third
party application development.

• ITC’s principal offering was SiteIQ, a cloud


based software tool that converted drone
images and data location into variety of 3D
visualization & analytics like change
detection, slope grade estimation.
• After company gained traction with SiteIQ, it
began to build up TruckIQ.
Regulatory Constraints

EARLY STAGE EVOLUTION DURING GROWTH STAGES

• Outright ban on commercial drones • Limited ban based on size, location & purpose.

• The FAA used to require a pilot’s license for drone to • By 2016,FAA started allowing non pilots to fly
fly. commercial planes.

• It costs $6000 and 2-3 months of in air flying time to • FAA certified 23,000 commercial drone pilots
get certificate.

• Neither fly from moving vehicle nor over people • Allowed to operate under 400 feet & speed limit of
100 miles per hour
Potential New Market and Constraints

Construction Industry Agriculture


• Tracks real-time progress of construction projects with • Reduced agriculture cost by monitoring 1000’s of acres of
smartphones and laptops land in a single day
• Helps to align work completed across different • Enabled targeted watering, fertilizing and pesticide
contractors application
Constraints Constraints
• Integration of different software (eg:- DroneDeploy and • Requires distinct set of data analysis features
Autodesk )
• Usage of different data service by different contractors
can lead to compatibility issues
Insurance Oil & Gas
• Helps in construction monitoring and subsequently for • Enables 1000s of miles of oil and gas pipeline inspection
premium calculation in very less time
• Reduces safety risk and manual effort of insurance Insurance
inspectors • Helps in construction monitoring and subsequently for
premium calculation
Thank You ☺
Global battle of the Drone
hardware market and
Silicon Valley Threat
Group 2
• Pradeep Prajapati-1901082
• Raj Kantykumar-1901090
• Mrinmoy Rajkhowa-1902139
• Narendra Kumar J-1902144
• Pagalavan M-1902154
• Manish Kumar Singh-1905022
• Prashant Chandola-1905025
• Initially US manufacturers such as 3DR lead the
drone market till 2015.
• In 2016, China started making drones at much
cheaper price (1700 USD for US made where as
1000 USD for China make).
• DJI made partnership with Sony and Apple and
forced other giants (GoPro, 3DR, ITC) to exit the
hardware market.
• Chinese had good R&D compared to other
countries (DJI had more than 1500 employees in
R&D).
• US startups including 3DR and ITC, exited
manufacturing and started focusing only on data
collection and data analytics support.
2
About drone deploy
• Founded in 2013 with its headquarters in San
Fransisco, CA
• Device agnostic cloud based software platform
for drone mapping and analytics
• Inspiration “To Catch Poachers”
• Financial Stability: $2 mn in 2013, $9 mn in
2015, $20mn in 2016
• Subscription model: Freemium with low prices
• First step solution for large companies
• Performance: 40,000 flights per month, 4.5
million acres map

ADD A FOOTER 3
User as
evangelists
Online support forums

Inbound Troubleshooting
marketing experiences

Tens of
Largest user
thousands of
base
views 4
Application marketplace

● Increased business demand of


seamless integration of drone data
with their workflows.
● One click integration with companies
like Box and John Deere.
● Drone deploy App Marketplace offered
68 Applications
● General 47, 9 Agriculture ,8
Construction , 4 Roofing while 58 were
free.
● It also allowed third party developed
applications to be available on their
platform. 5
Drone Deploy - Silicon
Valley Threat
Application development in DD’s platform

Third Party Create Account – Agree T&C’s - Download


Application application template
Development Developers can run and test applications
Process:
Basic HTML, CSS & Java Script code

Company can accept and reject under


guidelines

● Collected 30% sales - as part of revenue sharing


● Partnered with hardware maker DJI.
Applications of Drones and Challenges








Introduction
• Like smartphones commercial drones had physical hardware components, flight controlling
software, embedded sensors, etc.

• Drones can collect huge data within each flights, The terabytes of data generated, equivalent
of 200 full-length movies is uploaded on cloud for storage and analytics

• Identified Technologies corp. can focus on several applications in Agriculture, Oil and gas
industry, Construction industry, waste management and insurance

• Competitor DroneDeploy customers completed 40,000 flights and mapped over 4.5 million
acres, giving company largest drone-gathered data in the world
Agriculture
• In 2017, the market for commercial drone data was led by the
construction and agriculture industries
• The primary driver of profitability is operational efficiency
• Drones could reduce operating costs through automation
• Allowed for targeted watering, fertilizing and pesticide
applications
• The legal compliance was relatively low compared to other
industries
• Addressable market – $ 5.9 Billion
• Major Competitor – Drone Deploy Market 9/68 applications
featured were related to agriculture
Oil and Gas
Industry

Companies
They are legally
Over 490,000 miles traditionally used
required, as
of liquid and natural ground or
frequently as every
gas pipelines in the helicopter crews to
2 weeks, to avoid
US conduct required
public safety risks
monthly
inspections

Drones offered a In 2017, average Market share for


substantially profit margins were drones in the
cheaper, automated less than 3% industry was over
solution $1.2 billion
Construction
Industry

• Surveying The Land For Site


Preparation
• Monitoring / Surveillance Of The
Jobsite During The Day or Night
• Multi-Site Management For The Active
Project Manager
• Better Communication and
Transportation Solutions
Waste
Management
• Monitor landfill capacity.
• Faster survey Speed of 5000 sq.m. in
one hour (in landfills, sea shore)
• Huge possibilities to use drone to
clean ocean and in solid waste
management
• Recycling and biodegradation have
improved global waste management
Insurance
• Insurance Companies started using drones
and ensured its agents are safe and efficient
inspection is carried out.
• Every year 5 million roofs are replaced, out of
which many required inspections along with
claims for insurance
• The best found alternative to avoid any risk
by the insurance agents is by using drones to
monitor and take a decision via an expert
panel
• Insurance companies State Farm and Farmers
outsourced inspections to drone software and
services companies, while AIG has its own in-
house drone team and fleet.
• The total market for drone software solutions
is worth $1.4 billion in insurance industry.
Challenges

• Limited payload and Flight Endurance: Adding extra sources of power or mechanisms to improve
their payload capacity adds to the cost of the manufacturing, Increasing the payload also reduces
the flight time of the machine
• Improper air traffic management: cannot build a highly intensive system solely for a few drones nor
can they let the drones interfere with the existing air traffic routes
• Concerns among the public about privacy, security, and safety
• Challenges for technology
• Manage complex, unpredictable situations
• Handle adverse weather
• Fly without restrictions in populated areas
THANK YOU !
Group 9
Rise of the Navaneethkrishnan Nambiar R – 1902145
Shubham Pandey – 1901076
Drones Priyankar Patel – 1901085
Priyanshu Ranjan – 1901086
Identified Rahul Sinha - 1901089
Midhun Krishnan -1905023
Technology Prarup Sahu -1905024
Market Scenario
• Global Drone Market Size – $ 5.8 billion
with roughly 276000 units sold in 2018
alone
• These Unmanned Aerial Vehicles (UAVs)
are finding increasing application across
the entertainment, agriculture, and energy
sectors, which is ultimately expected to
impact the market growth positively.
• One of the key factors driving their
demand in commercial sectors is the fact
that UAVs have the ability to perform
hazardous tasks, such as inspecting utility
pipelines, with higher precision and cost-
effectiveness as compared to the
conventional methods.
Drone Hardware
Market
• 3D Robotics (3DR), a Silicon Valley startup founded
in 2009, became the leading American drone
manufacturer valued at over $360 million by 2015.3
By 2016, however, Chinese manufacturers
introduced comparable drones at significantly lower
prices: a 3DR drone sold for $1,700 versus a Chinese
drone for $1,000.4 Even with 19% of the hardware
market, 3DR struggled to compete and was forced to
undertake a major restructuring by mostly exiting the
hardware market.

• The North American commercial drone market grew


from less than $20million in 2012 to over $400 million
in 2017.
• By 2017, the leader of the drone hardware market
with over 50% share and a valuation of $10 billion
was the Shenzhen, China-based company Dà-Jiāng
Innovations Science and Technology (DJI).7 Hailed
by some as the ‘Apple of drones,’ DJI was founded in
2006 and took the drone industry by storm with its
vertically integrated hardware and rapidly falling
price: in a single year, DJI reduced its drone prices by
70%.8 DJI had over 1,500 employees in research and
development, vastly more than 3DR. DJI further
partnered with Sony and Apple to propel its
dominance of the drone hardware market. By 2017,
most U.S. drone startups, including ITC and 3DR,
partnered with DJI for drone hardware and
refocused their efforts on developing data analytics
software for drone-generated data and/or offering
drone-related services. “By that point, it was cheaper
for me to buy a drone off the shelf and install my
own software, than to build it completely in-house,”
said Zhang. ITC was one of the first companies to
pivot away from building its own drone hardware.
CONSTRUCTION INDUSTRY: Hard Hats & Blueprints
❖ ITC’s primary customers were in the $ 1 trillion construction industry.
❖ Coordination using traditional methods was difficult within and across the firms.
❖ Relative to other industries, construction had very little adoption or use of digital technology

80% of firms spent less than 1% of BARRIERS IN ADOPTING


total sales on IT. DIGITAL TECHNOLOGY:
• Lack of IT staff
45% of construction firms used • Employee or management
software in their design process
reluctancy

34% used software for bid • Steep learning curves


management • Cost and effect of adoption
• Maturity of technology
12.3% used software to screen
subcontractors IN YEAR 2017
ADVANTAGES OF DRONE TECHNOLOGY
Drones topped the list of most used emerged
technologies by construction firms.
➢ Drone data and analysis gave construction companies a
unique advantage during the forecasting and bidding
phases.
➢ Drone allows more frequent inspection over the
construction sites.
➢ Drone gives an advantage of collecting hundreds of
millions of data points.
➢ Adverse conditions could be regularly tracked.
➢ Real-time progress could be tracked by syncing the
drones with mobile phones and laptops.
➢ Drones could be used as a collaboration tool.
➢ Drones could be used for work quality check and activity
scheduling.
India first used military drones during the 1999 Kargil war with Pakistan
where Israel supplied India with IAI Heron and Searcher drones for
reconnaissance. Since then India has procured numerous Israeli
military unmanned aircraft.

Indian Railways is using UAS for inspection and 3D mapping to bring to


life its vision of a dedicated freight corridor with a network of 3,360
Drones in km. The entire corridor will be mapped using UAS technology.

India In November 2019, Coal India used drones to check illegal mining and
pilferage, a system which it had already tested in a pilot project.

An autonomous agency of the Government of India, responsible for


management of a network of National Highways has employed the use
of drones for 3D digital mapping for Detailed Project Report (DPR) for
road widening of the Raebareli – Allahabad Highway.
Recent News

• JD.com uses logistics drones as


supplies disrupted by Corona
virus and supplies to Heibei
province in Northern China have
already started.
• The Chinese e-commerce giant
has developed seven types of
delivery drones, which have
accumulated more than 6,600
hours of flight time in more than
100 routes since October 2015,
according to a fact sheet posted
by the company in March 2019.

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