PRECYSE Technologies brings to market a new breed of wireless asset communication technology that bridges the gap between people, IT systems and the assets that make up the physical world around us. N3, the first bi-directional, wireless asset network standard from PRECYSE takes a lip forward in RFID evolution. Coupled with the PRECYSE Smart Agent, a 'cell phone‛ build for assets, PRECYSE offers an out-of-the-box solution with the promise to build a world of networked and interconnected made-smart devices. Everything from engine parts, home appliances or cars may be in communications range, heralding the dawn of a new era; one in which today's Internet (of data and people) gives way to tomorrow's Internet of Things. (LINK long copy email)
OVERVIEW
Precyse Technologies is a rapidly growing company, what they do is they have created a device and system which allows businesses to take RFID to the next stage, they have created the "next generation Smart Asset Networks platform, taking the next step in "always on" communications, with the promise to build a world of networked and interconnected made-smart devices". (PDF FILE LINK) "Precyse solution allows organizations to communicate with the physical assets that make up global supply chains and the world around us. By doing that, corporates can shift to real time management, prevent errors as they are about to occur instead of correcting them, improve safety, security, employee accountability and more." (INTERVIEW) for example if a company such as Catepillar which is in the manufacturing of heavy equipement and with having storage facilities around the world it can be difficult to locate certain products because its very time consuming. With the use of Precyse Technologies it allows these companies to positively locate these products very fast and efficient which leads to the creative destruction of the extra staff in who's position it is to actually go and locate the products manually, their jobs would not be necessary anymore.
"Precyse Technologies become incorporated in April 2008, currently have eight employees in the research and development center in Israel and eight employees in the United States of America. Within the next 6 months they plan to double their current staff in the United States of America and grow the staff to twenty four people in total., currently they conduct roughly ten. They have created a value system which is "fun, excitement, honesty, personal growth and respect" Overall Precyse Technologies is trying to become the market leader in "developing, manufacturing and market wireless based system for locating, monitoring and communicating with physical assets and personnel".
INDUSTRY SIZE
INDUSTRY SIZE/STRUCTURE
The industry of RFID/SAN is small but very highly competitive. There are noumerous of different reports which predict how much the total market is worth. The most accurate report which I have found and the CEO of Precyse agrees with this report states that for 2011 the total market is worth $1.1 billion dollars (HONEYWELL LINK PG 5)
The Cummalative Annual Growth Rate for this year is 28% this is important because it shows us that they market is growing at a substantial speed, specialist recommend that anything lower than 25% is not a good market to get into because it is harder to make money with an industry that is not growing and in this case its easier to make money, think of it as a wave that it going up. What is even more impressive is that certain experts reports have indicated that the C.A.G.R. will not maintain the current growth rate of 28% but by "2014 the CAGR will be more than 40%" http://inventory-trackingsoftware.com/tag/rfid/
With Precyse reaching just at 10 million dollars and the total market worth 1.1 billion, they approximently own 1% of the market share, there is still lots of room to grow. As we can see currently they are still a small company within a very big industry
The RFID industry is in the growth stage, (http://www.newswiretoday.com/news/40737/GPS_Machine_Control_to_Grow_at_2328_CAGR_Until_2012/)
PAIN
Every year companies are trying to figure out how to increase their profits. This is shown by Profit = Revenue - Expenses, during these hard economic times that started in 2008 companies had to conduct massive layoffs from across the world because their expenses were far more greater than their revenue and to continue to be in business (reporting a profit) they had to lay off people to do so. It has been reported that "companies understand that the revenue stream will be flat until 2016," so companies must find other ways of either lowering there expenses or increasing their profits. It will be very difficult to increase profits because people are getting laid off and their disposable income is limited. Also companies can not continue to lay off more people because who will be filling the existing orders. "During the recession which started in 2008 trillions of dollars was lost and millions of people lost their jobs" . Companies have not succeeded because of internal problems, it is estimated that over "forty billion dollars just in the United States alone is lost every year because of lost products because warehousing is to big that they can not take to account what they already have and also to theft, employees stealing from the companies" (SUMMIT LOSS PREVENTION) Also lets take into consideration that how many employees are getting paid from these industry to prevent scenarios such as this one. There need to be a track on items on all scales, for example companies such Catepillar "hold as much as four times the inventory they really need" "in 2009 Carepillar laid off over five thousand employees" I am not saying that this can be prevented but it could have been smaller if they never wasted so much money. Boeing "which pays over 50 people to locate products and components that went missing in their Wichita product facility." Also There must be a need to automate processes which eliminates the human factor of theft cost and error. To allow companies to stay competitive in the market place. This is such a major concern of these companies that this industry has grown from $261.9 in 2006 to $1.1 billion in 2011 (LINK HONEYWELL) As we can see with that dramatic increase in the market spending companies are very alert about these problems and it shows that they will spend money to be able to save in the long run.
OPPORTUNITY
The NEED for a new way to do things
The recent economic crisis highlighted companies' vulnerability to sudden market fluctuations. We as an economy and the corporates that drive it must CHANGE the way we manage our assets. Work in process (WIP) inventories, finished products and personnel are always on the move. Not knowing where they are or what their status is in real time leads to inefficiency and waste.
In today's market many major companies continuing using the bar coding system, which I point out the Caterperlliar example and the Boeing example, they are not useful and efficient to the companies because they are continuing running into the same problem of theft and misplaced products and these products were designed for situation such as these not to occur anymore. Some of the major barcode manufactures and resellers of bar code scanners are Nexcom, Microscan and BIT Corp (LINK AUTOMATION WEBSITE). With the introduction of companies such as Precyse Technologies were able to take the suboptimal solution and actually move the suboptimal equilibrium because were solving the concern with companies have which will lead to the creative destruction of the classic bar coding system.
There is a great opportunity for RFID. It has all of the essential four qualities, attractive, durable, timely and adds value for buyer. It is attractive because it allows companies to able to save move thus continuing to report profits, it allows you to reduce theft and monitor products which is a major concern for a large majority of companies and its a very large market which industry experts expect it to grow at a phenomenal pace. It is durable because other types of RFID have been in existence for a long period of time such as the barcode, no matter what companies do they must always monitor their inventory and be able to locate products. Also so far in the market it is mostly dominanted by United States, Canada and a few other countries from around the world. The future looks very bright because of the Bric Theory which states that countries as Brazil, Russia, India and China which hold 60 % of the worlds population will become more of an impact in trades and with them coming into the photo the future of being able to track and monitor inventory will be much more crucial. China economy is expected to surpass the United States by 2060 which means China will start exporting and importanting much more. With the internet becoming an norm in our society more and more people are able to understand and use the computer. Also with the impact with cell phones becoming more versatile people are able to connect much more easily and able to get up to date stauts. Finally it adds a tremendous value for the buyer because all of the excess amount of money spent on staff to monitor and find will no longer be needed allowing the buyers to save on expenses. You are able to find these oppurtunities by observing/study trends, the major point which I would like to discuss is the Political actions. We live in a society where a large majority of products are being shipped across the world. In fact over "oversea shipping accounts for 90% of the world trade" because of their large amount of capacity they are able to haul. With so many containers and ships docking in and out the "government is starting to get scared especially from the September 11 attacks.... The government has now put a restriction on what comes in and out. This can be very bad for certain companies because certain products have a short shelf 0life and need to get to the end user immediately, the government created a C-TPAT Plus which allows containers shipping with RFID technology to none inspection upon arrival-immediate release because they are already able to know what is inside and they know where they have gone.
There are a few competitors that are in direct competition with very similar products such as Pryces Technologies who are; AeroScout, Alien Technology Corporation, IDMicro Inc and WhereNet. All of the competitors including Precyse Technologies are "using technology down-designed to Identify assets (RFID) -or- locate assets (GPS or RTLS) or measure (Sensor Networks)" but the major difference among Pryces Technologies with their competitors is that Pryces units have a battery life of 3-5 hours whereas Pryces technology equipment have a life up to 10 hours. but with poor energy performance (short battery life)" (PDF FILE) Also Pryces Technologies is the only company which are bi-directional in communications architecture which makes us more secure, with a dramatically lower infrastructure cost, in fact it follows the 10X Rule because it is more than ten times cheaper for the customer to use their product over their competition also their range distance is over ten times more than any of their competitors.
One system - many applications: by adding flexibility - we can use one network design to service many application needs including sensor networks, machine to machine (M2M) interface, real time asset location, asset (e.g. car) computer wireless interface and more. Which allows them to use the Double Dip Theory, initially with there great design and advance technology of the product they initially wanted to get in the auto industry, later on they realized that they were able to take their existing product and put it in different industries without doing any changes and it can continue to increase revenue for Pryces Technologies. Now not only are they in the "auto industry but they also provide their service in the Aerospace and National Defense Industry." Finally, the biggest distinguish among Pryces and their compeitior is their security, "based on the networks bi-directional communication link it is the first company to ever introduce a multi-layered encryption" (PDF) so if somebody does hack into the computer system nobody will be able to change the setting or affect the RFID.
Product /SOLUTION
Prycese Technology is more scalable because as they increase revenue their expenses remain the same. For instances as they sell their different types of RFID, it increase revenue for the company but in the meantime all of the framework in already in existence (hosting, technology cost) thus when a new client goes with Prycises no new cost are forwards to them just an increase in revenue.
With the creation of RFID, Prycese Technologies have been able to move the Suboptimal Solution to a new state of suboptimal equilibrium. With suboptimal solution companies were happy with how they tracked all of their inventories, which was not cost efficient and still mistakes and theft was occurring equilibrium has shifted to a new state. This state allows companies to save money and be more cost efficient and the ability to check on inventory instantly without going through all of the hassles. Also this allows companies to not over order because they are able to identify immediately what is in their warehousing and when they do ship out product they are able to tell them exactly where it is at any time. This has lead to the creative destruction of the employees who use to work in these warehousing, with the advance technology that Pryces offers there is no need to hire as many people as in the past. For instance the example of Boeing where they have 50 people running around their warehouses to locate their product, almost all position can be eliminated due to the fact of Prycese exact positioning capabilities and up to date information. With Pryces Technology evolution patent on the N3, it will allow companies to focus on what matters most and thats feeling comfortable in conducting there daily business.
TECHNOLOGY
There are many reason that makes Precyse Technology will come on top in this industry. In a matter of two years they have ten million dollars in sales, and they expect to grow more in company size. According to the opportunity for essential qualities they have all four of them. First attractive and durable, its an very attractive industry due to the market size and the growth that is occurring now and in the near future. Second timing, with more people around the world getting faster internet connection also wireless more companies especially in developing countries which are a substantial force for the manufacturing industry are able to keep there cost to a minimum. Finally create, with their dominant technology (the Precyse N3), great early success (Caterpillar tractor, the IDF, Pratt & Whitney). Therefore with there great ability to develop great technologies and with a great management team which have proven past and current success there on a great road ahead. Like Vikas Gupta said "a successful company is one who has a Grade A management team with a Grade B idea" but in this case they have a grade A idea and they have the sales to prove it. So far they have "create value through real time asset visibility. They have achieve visibility by transforming inanimate assets intelligent and communicating with them over a network. They have used software to transform asset communications into business value. Through real time asset visibility, organizations can reduce inventory turns, eliminate waste, increase productivity and gain agility. Finally they are the first company to have created/designed the first ever bi-lateral asset network technology". According to the 6 or 9 theory they have been able to attract great 9's to their team, such as John Reid who left his his Vice President of Professional Service at Bridgeway Corporation to become the Vice President of Professional Service. They also believe they should hire using the top-bottom approach. They continue to hire from the top-bottom because "they recognize what they need in the company and they believe that hiring from the top will help them overcome any obstacle in that division" (INTERVIEW)
Leadership
Precyse Technologies has been set up in a very unique way. They have attracted talent from all over the globe. The Talent Triangle first consist of the Business Acumen which means is the person in charge really knows how to run a startup. In Precyse Technologies the Business Acumen name is Rom Eizenber he holds the position of Co-Founder. Mr. Eizenberg after graduating with Masters in Engineering in Milan, he started his career with Ness Technology, where he eventually become Senior Management. He later moved to Hewlett Packer where he was a director in the RFID division. Before starting his own business he had over 11 years of experience in the RFID industry and he was able to understand what was able to improve. Thus making him start his own business, with his first loan coming from an Angel Investor he started his first company the deals within his field of RFID. Thhe had successfully started up two other companies in the RFID industry which both of them were very successful, then you sold them to a company named Electronic Arts. He brings what all great leaders must have, he has a lot of passion also he has a high internal locus of control. Though out his life when he failed he never use to blame anyone but himself, he knew that the results were caused by his actions. Expect of failing he got back up and learned from his mistakes(INTERVIEW LINK), and now he has proved the looking forward he will succeed once again. Second in out Talent Triangle we have Bill Lang, the Operation experience. "Mr. Lang was a Vice President of Sales and Business development for 2 very successful companies Casabyte and CNET. He has also established different distribution channels on 5 different continents" Mr Lang has the capabilities and skills necessary to understand where PrycseTechnologies is today and when they start to grow he knows the Operation aspect to bring them up to demand with the clients. Finally Mr. Michael Brainman, he has been in the RFID and GPS industry for over 17 years, in an interview Romi told me that "Michael understand the industry, he is able to predict future outcomes" with his 17 years of experience in this industry Michael has proven a valuable asset in RFID industry
(http://hpsweb.honeywell.com/NR/rdonlyres/C11BCE20-5AB9-4127-B413-97AFF433F0D8/66280/WirelessinPower_Whitepaper_WP0823ENG.pdf)
http://www.automation.com/suppliers/automation-product-manufacturers/product-category/bar-code-scanners-readers-equipment
