Name of entry:
E2212-b)Company
Expectation:

How does the innovation project fit with the strategy of the participating SME(s)?

What is the relevance and rationale of the innovation project for the management team of the SME(s) in a consortium?

What is the expected growth potential of your solution in terms of turnover, employment, market seize, IP management, sales, return on investment and profit etc.?

 

Answer:

The Kovex-Computer Ltd is principally engaged in research and development. Revenue comes from software development and hardware trade. The Ltd. is owned by two individuals and operates under their guidance. Software development and services increasingly dominate in its activity. Trade and service of IBM servers is involved less and less in the generation of income.

Knowledge management applications development, adaptation, and related services are included in the business strategy.

Forecast

The table below contains the calculation of expected revenue from the project product and expenses in the period following reaching the market.

 

 

2017

2018

2019

Revenues from licensing fee 10€/customer

€ 10,000

€ 50,000

€ 500,000

Revenues from services:

Installation of the framework system 200€/customer

Construction of the structure of knowledge base 100€/ customer

Uploading of contents 1500€/ customer

Renting server storage space

8€/ customer

Help Desk 100€/ customer

Total revenues from services:

 

€20,000

€50,000

 

€15,000

 

€4000

 

€80,000

 

€169,000

 

€100,000

€250,000

 

€75,000

 

€20,000

 

€400,000

 

€845,000

 

€1,500,000

€2,500,000

 

€750,000

       

        €200,000

      

       €400,000

 

€5,350,000

Total revenues:

€179,000

€895,000

€5,850,000

Service provider coworker (persons)

4

21

90

Expenses of wages for services

€ 2000/person/month

€ 96,000

€ 504,000

€ 2,160,000

Expenses of IT management

€ 4000

€ 8000

€ 16,000

Marketing expenses

€76,000

€ 430,100

€ 1,184,400

Total expenses:

€176,000

€942,100

€3,360,400

Earnings:

€3,000

€-47,100

€2,489,600

The earnings for three years: 2,445,500 euros.

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