FACULTY OF MECHANICAL ENGINEERING

TECHNOLOGY ENTREPRENEURSHIP (ENT600)

“DRONE SERVICES”

PREPARED FOR:

ABU HASSAN BIN IBRAHIM

PREPARED BY:

MUHAMMAD SHAFRUL AIMAN BIN MOHD. SHAIDI 2017631858

MUHAMMAD NABIL FARHAN BIN TAJUDDIN 2017806792

MUHAMMAD NAFIE BIN NOR ASMADI 2017806732

MUHAMMAD RAZLAN BIN GHAZALI 2017806762

MUHAMMAD HILMANUDDIN BIN MUZAKKIR 2017806734

DEC 2019
 TABLE OF CONTENTS

1.1 EXECUTIVE SUMMARY…............................................................................................1

1.2 Business Service and Concept Generation….................................................................1

1.3 Target Market and Projection….....................................................................................2

1.4 Competitive Advantages................................................................................................2

1.5 Profitability.....................................................................................................................2

1.6 Management Team….....................................................................................................3

2.1 PRODUCT DESCRIPTION….........................................................................................4

2.2 Service Details to Be Produced......................................................................................4

2.3 Application of Service....................................................................................................4

2.4 Unique Features of Service............................................................................................5

2.5 Picture of Service...........................................................................................................6

2.6 Intellectual Property.......................................................................................................7

2.7 Opportunities for Expansion of the Service Line..........................................................7

3.0 TECHNOLOGY DESCRIPTION........................................................................................8

4.1 MARKET RESEARCH AND ANALYSIS.........................................................................9

4.2 Customer........................................................................................................................9

4.3 Market Size and Trends..................................................................................................9

4.4 Competition and Competitive Edges............................................................................11

4.5 Estimated Market Share and Sales...............................................................................12

4.6 Marketing Strategy.......................................................................................................13

5.1 MANAGEMENT TEAM…...............................................................................................16

5.2 Organizational Chart…................................................................................................16

5.3 Key Management Personnel.........................................................................................17

5.4 Management Compensation and Ownership................................................................21

5.5 Supporting Professional Advisors and Services...........................................................22

6.1 FINANCIAL PLAN...........................................................................................................23

6.2 Start-up Cost….............................................................................................................23

6.3 Working Capital...........................................................................................................24

6.4 Start-Up Capital and Financing....................................................................................25

7.0 PROJECT MILESTONES.................................................................................................26

8.0 CONCLUSION..................................................................................................................27

9.0 APPENDICES....................................................................................................................28
1.1 EXECUTIVE SUMMARY

1.2 Business Service and Concept Generation

Marcus Tullius Cicero had said, ‘The safety of the people shall be the

highest law’. This shows that the important to uphold the safety of a person

especially during working in dangerous environment. According to Department of

Safety and Health (DOSH) from January until June 2019 the highest

occupational accidents in Malaysia recorded are in manufacturing sector with 43

death, 98 people with permanent disability and 2328 people with non-permanent

disability. This means that manufacturing sector have the highest risk because

the workers are exposed with dangerous working condition such as inspecting in

a confined space, inspecting the machinery at higher places, exposed to

dangerous substances during working and many others. Therefore to reduce the

accident from occurred, our company, Sasa Lele Sdn. Bhd., wanted to provide

not only for manufacturing sector but for the other sectors also our services that

is drone services.

This drone services are mainly for the inspection and surveying at

dangerous workplace. There will be the qualified pilot and inspector from our

company will come to the designed places to fly the drone and do the inspections

work. By having this service to replace workers, it can eliminate the source of

harm that can lead to accident. This service not only limited to inspection, our

company also provide aerial footage services for those who wanted the aerial

view of their new places or event. Besides our company also provide aerial

searching services, weather forecasting and drone training.

1
1.3 Target Market and Projection

The target market for our services are mainly focusing on company which

deals with dangerous working environment such as working at higher places or

inside the confined space which will lead to the accident of the workers. Besides

our company also target other working sector that need some beautiful aerial

footage for their advertising or event. This service also targets the rescuer which

need our services for aerial searching and point out the location of missing

person or trapped during disaster. Another target market for our services are the

meteorology department to do the weather or disaster forecasting Since this

business is still new in Malaysia, the projection of this business might take a quite

long time which about one to two years for the customer to realize the important

of our services.

1.4 Competitive Advantages

After doing some research about this service in Malaysia, many

respondents did not have used this service before but belief that this service is

important in order to ensure the safety and increase the accuracy of work.

Therefore, it can be concluding this service is still new in Malaysia and this

means that our company have fewer competitors. There will be high chance for

our company to grow and success in the near future.

1.5 Profitability

Since this services is still new in Malaysia and our company have less

competitors there will be high chances for our company to earn profit. Our lowest

estimate for the customer will used our services are 20 services per month which
will gives us income of RM 480,000 per year for the first two year. By subtracting

working capital that is RM 188,400, our company will gain estimate profit of RM

291,600 per year for the first two year. This can be increase since our company

planned to add other drone services for the business.

1.6 Management Team

The management team is the group of individuals that operate at the higher

levels of an organisation and have day-to-day responsibility for managing other

individuals and maintaining responsibility for key business functions. The

management of Sasa Lele Sdn. Bhd. consists of Muhammad Shafrul Aiman Bin

Mohd. Shaidi as Chief Executive Officer (CEO), Muhammad Hilmanuddin Bin

Muzakkir as Chief Operating Officer (COO), Muhammad Razlan Bin Ghazali as

Chief Management Officer (CMO), Muhammad Nafie Bin Nor Asmadi as Chief

Financial Officer (CFO), and Muhammad Nabil Farhan Bin Tajuddin as Chief

Technical Setting (CTS).

2.1 PRODUCT OR SERVICE DESCRIPTION
2.2 Service Details to Be Produced

Service Drone is a new type of servicing the customer, which is human

friendly, as the drone will undergoes surveying and inspecting by human

controlling their movements. Developing new services that are inspection and

surveying using drones to very difficult or dangerous places such as in confined

space or very high places. The service is considered as new to the firm. Drones

are fantastic for getting an overview and close ups of buildings and structures.

Drones are also a safer method of inspecting tall structures. No need to send

men up in a harness or scaffolding to inspect a roof, structure or building. Drones

save loads of time, as there is no need to build scaffolding to survey a building or

structure. More importantly using drones for surveying work also saves

employees from having to take on the responsibility of dangerous work.

2.3 Application of Service

As service provider require surveying and inspecting to be high quality,

maintain or enhance service from drone stability and safety as well as utilize

safety procurement of inspecting and surveying, the reduction or replacement

with alternative spare parts for drones would clearly allow improvement in overall

operating costs while reducing waste time. Drones have become an integral part

of operations such as mapping, surveying, equipment inspection, analyze

difficult-to-monitor areas, project monitoring, and precision agriculture activities.

The deployment of drones for such operations reduces crew costs by minimizing

time-consuming ground observations. The inspection on their programs or events

occur to students by securing their safety on their place management. Moreover,

the process of the retrieve and store the data such as the recognize faces is also

faster and quicker than key-in manually using human source. The drone will

detect any suspicious movement from the human doing. The alarm triggered

when any procedure of any crime happens from the human. These steps can

ensure safety environment of students who attend in those events. Thus,

application for this servicing drone can be adaptable with the society.

2.4 Unique Features of Service

The drone include variety services that certain customer needed. The

unique features is drones are certainly the most significant and life-saving

technology to be used in anti-terror operations as they are equipped with electro-

optic, infrared and high-resolution video cameras that can track both stationary

and moving targets. They can provide 360-degree coverage and intelligent

analyzing capacity which helps to detect, locate and identify potential threats and

track terrorists. Drones provide advanced surveillance and with the use of

artificial intelligence, identifying risks and decision-making becomes more

effective and instantaneous. As technology advances, the use of drones in anti-

terror operations has seen a significant rise in recent years. Drones are now

used for advanced surveillance, reconnaissance and covert operations due to

their rapid deployment and turnaround times and precise targeting capability.

Next unique features is Traffic monitoring via drones can overcome the

limitations of traditional methods of monitoring due to its simplicity, mobility and

ability to cover large areas. High resolution real-time videos from drones can be
relayed to the command and control center to assist on-ground personnel in road

monitoring, traffic guidance, traffic activity analysis, identify and track individual

vehicles, read license plates and more. Drones can be equipped with different

type of payloads like HD camera and thermal camera for day and night

surveillance. Drones can provide on-ground situational awareness in case of

emergencies like road accidents; oil leaks etc. and also collect evidence for the

same. The data collected by drones can be analyzed to improve traffic flow and

road safety. Besides that features, in disaster management, drones are

immensely useful as they provide a birds-eye view of the entire affected area in a

very short time. Drones transmit real-time videos to first responders providing

real-time knowledge of the situation. This helps them understand about the

extent of damage inflicted on infrastructure, the state of transportation and

logistics. Drone feeds can also help in the location of stranded and trapped

survivors. This helps the disaster management team to efficiently plan rescue

missions and use their resources effectively. In disaster management, drones

can also assist in directing stranded people to safe locations and even drop first-

aid medical supplies.

2.5 Picture of Service

2.6 Intellectual Property
Intellectual property is a broad categorical for the set of intangibles owned

and legally protected by a company from outside use or implementation without

consent, For this service, the intellectual property is a process which is registered

under Ideaforge company. A process grants property rights on an invention,

allowing the process holder to exclude others from making, selling, or using the

invention. The type of process for this drone services is standard process which

offers a new situation solution to a problem. Thus, this can be applied to our

services because the inspection and surveying into the environment will bring

benefits and problem solver into data analyze or area recording. With process

protection, this company can take legal action against anyone who copies the

process that have the same steps at least within 20 years.

2.7 Opportunities for Expansion of the Service Line

Opportunities abound in the drone community. As with other emerging

technology fields, engagement models can be quite complex and involve a

variety of professionals and firms. CompTIA research identified a wide range of

people and organizations involved in procuring, preparing, operating, and

supporting these technologies. Organizations and individuals entering this market

segment must have a solid understanding of the engagement models and

customer needs. The value proposition for drone technologies varies by industry,

usage requirements, and internal capabilities. Thus, the market wide size which

increasing target market and introduce this company service through electronic

medium existed directly to the prospect customers.

3.0 TECHNOLOGY DESCRIPTION

Serviceable drone is engineered to scan and provide service at certain task it’s

given for a specific field to give to the consumer. The drone also being attached with

artificial intelligent (AI) that keep intact with the activity to carry on its given tasks until its

complete without supervise from the owner. The built-in materials for the body of the

drone to fly or moving forward where ready made in sustainable condition such as rainy

weather. These give advantage for the owner to prolong their wide away safety

procedure and avoid any crimes happening in their territory. The drone are safe to apply

its service and each of its part have it functions.

The main category in the drone have was sorting the items. The storage of any

warehouse can keep organize and avoid wasteful of time to searching items in the

warehouse. The drone will be useful in some other technology based company that

keeps forward in future plan.

4.1 MARKET RESEARCH AND ANALYSIS

The market research and analysis is an analysis of target market, competitors,

market size, market share and other relevant factors that relate to the market. It is an

important factor in determining a sustainable business. Information in this section will be

on conjecturing sale. The market analysis must be able to show that the proposed

business can capture a significant market in the industry and able to compete and

remains competitive over years.

4.2 Customer

A group of customer, which has needs, and wants that can be satisfied by

the business through the supply of goods or services. In order to be successful in

marketing any kind of product, every business owner or particularly a marketing

manager must be aware of customer’s different needs and wants and spend

more time in planning and decision making.

The major target market for the drone services is for industrial companies

who require work at high places or in confined space and we also segmented the

market based on demographic segmentation which referred to geographical

area. We chose Selangor state as our target since it has strategic location and

also lots of potential customers.

4.3 Market Size and Trends

Market size refers to the potential purchases competitor’s product within

the same market. Our market size is calculated based on the industries in

Selangor state. In determining the market size, we predict around 240 company
 per year in Selangor that will used our services. After calculation has been made,

we decided to put the price for our services at RM 2000.

Market size = Potential customer x price per service

= 240 x RM 2000

= RM 480,000

We also have estimated the potential annual growth for our services for

three years. At the early stage of our operation, we want to focus on involving

this service to the current market and create our own strategies in order to

expand our business. We have predicted the potential amount growth of our

services for 3 years is about RM 580,000.

Table 1 Market size and trends.

Market size in 2019 Market size in 2020 Market size in 2021

Demand increase 240 264 290

1% per year

Total cost (RM) 480,000 528,000 580,000

 Total market size in 3 years = RM 480,000 + RM 528,000 + RM 580,000

= RM 1,588,000

4.4 Competition and Competitive Edges

Competitors refer to the other business that offers similar or replacing

products or services to the same target market. In order to increase our sales, we

tried to make our competitors as our motivational factors. Therefore, we analyzed

our competitors by looking for their strengths and weaknesses.

Table 2 Strength and weakness of competitors.

Competitors Strength Weakness

Sky-Futures  World’s first O&G  Expensive service

confined space charges.

inspection with no  Lack in advertisement.

manned entry or

external lighting.

 Have regular customers.

DARTDrones  Easy to get in the  Does not have wide

market. customers.

DJI  Strong brand name.  The company is rarely

 Have varieties drone done service promotion.

models.
  Have good

advertisement.

Table 3 Advantages, disadvantages and added value to this service.

Product Added value Advantages Disadvantages

characteristics

 Drone service  Collect high-  Provide safe  Brand new,

for inspection quality data sets operation unfamiliar

and surveillance. that are instead using service.

accurate, manpower.

repeatable, and  Reduce

measurable to operating costs

make smarter and reduce

decision. shutdowns.

 Faster than

conventional

inspection

techniques.

4.5 Estimated Market Share and Sales

Market share refer to the portion of the market that the business can

control after taking into consideration market size and the competitors position in
 the same market. Therefore the market share and the sales of Drone Services

are indicated as shown in the table below.

Table 4 Estimated market share and sales.

Drone Services

Years

2019 2020 2021

Market share 10.0% 12.0% 15.0%

Total sales in unit 216 232 247

Total sales in RM 432,000 464,000 494,000

Based on the observation and research, the first year we only provide 216

services and the expected total sales for the first year will be RM 432,000. The

second year, we increase the production to 232 services with the total sales RM

464,000. For the third year, we increase the production to 247 units with the total

sales RM 494,000. We estimated that the total sales will be increased within

three years. However, the total sales can be changed either increase or decrease

since the market sales can be affected by many factors.

4.6 Marketing Strategy

a. Overall marketing strategy

Drone Service is a service that is introduced by our company to

give convenience to the customers in terms to provide drone-based

inspection and survey services to the industrial sector for hard to access,

linear or wide area assets. Our team support industrial clients by

delivering high-quality inspection reports and data via the Expanse

software platform in support of asset build or asset inspection

programmes. Our service may include but not limited to inspect ship

storage tanks, onshore storage tanks, chimneys, boiler rooms, vent

stacks, furnaces and other hard to access assets.

b. Pricing

Pricing strategy is price-related methods and incentives to

determine the best price that can offer by the company to the customers.

The cost, perceived value and the competition need to be considered

before setting the price. Since we are using basically a set of drone with

its compulsory accessories, we can reduce the cost by hiring the drone

manufacturers and expertise in related field to involve together performing

the job. Through that, we can save money from the drone maintenance

and other overhead costs. In addition, we will make promotion through

implementing discounted price in order to attract customers. The price per

service is RM 2000.

c. Sales tactics

A sales tactics is any action that we take to put our sales strategy

into action. We are focusing on distribute the product in Selangor. To

expand our business, we are using the online marketing to promote our
services. Moreover, we will use representative such as agent, social

medium platforms, websites and any possible approach that enable us to

deliver the services to customers.

d. Service and warranty policy

If there is any complaint from the customers, they can refer to our

company website for further action.

e. Advertising and promotion

Advertising is important to attract attention from target market. We

will promote our product through the social media such as Facebook and

Instagram. Besides, we have our own website to make it easy for

customer to purchase our services. Our company will hire the expertise

and also provide training for other employees to straighten their promoting

skills. As our services is new to the market, so we will invest more on

advertising and promotion in order to deliver our services information to

the customers.

f. Distribution

We provide our own transportation to be used for the services to be

executed at the site.

5.1 MANAGEMENT TEAM
5.2 Organizational Chart
 5.3 Key Management Personnel

a) Background

NAME AND POSITION BACKGROUND

 6 year experience in managing MIGNOM Manufacturing

MUHAMMAD SHAFRUL
Sdn. Bhd.
AIMAN BIN MOHD SHAIDI
 Bachelor in Engineering (Hons.) Mechanical UiTM
(CHIEF EXECUTIVE
OFFICER)  Can speak 4 languages.

 5 year experience as Production Manager in Samsung

MUHAMMAD NABIL
Malaysia Sdn. Bhd.
FARHAN BIN TAJUDDIN
 Bachelor in Engineering (Hons.) Mechanical UiTM
(CHIEF TECHNICAL
SETTING)  Good communication skill.

 5 year experience as Financial Manager in Samsung

MUHAMMAD NAFIE BIN
Malaysia Sdn. Bhd.
NORASMADI
 Bachelor in Engineering (Hons.) Mechanical UiTM
(CHIEF FINANCIAL
OFFICER)  Good communication skill.

MUHAMMAD HILMANUDDIN
 5 year experience as Finance Manager in Sime Darby Bhd.
BIN MUZAKKIR
 Bachelor in Engineering (Hons.) Mechanical UiTM
(CHIEF OPERATING
OFFICER)  Good communication skill.

MUHAMMAD RAZLAN BIN  6 year experience in BERJAYA LAND Sdn. Bhd.

GHAZALI
 Bachelor in Engineering (Hons.) Mechanical UiTM
(CHIEF MANAGEMENT &
SALES OFFICER)  Good communication skills.
 b) Task And Responsibilities

POSITION TASK AND RESPONSIBILITIES

 In change as a leader in all activities in the company.

 Give instruction to all workers.

 Receive reports from all managers about the

company operation.
CHIEF EXECUTIVE
 Monitor the development of the company in the
OFFICER
market.

 Responsible to the worker’s achievement and solve

employee’s problem and difficulties.

 Prepare all documentation of the company.

 Administration and manager organization matter to

achieve organization goal.

CHIEF
 Investigates and examine procedure
MANAGEMENT &
 Make recommendations for improvements.
SALES OFFICER
 Managing the working schedule, evaluating and

preparing the staff performing.

  Product Development Plan: Review, summarize,

extend, and regularly update the product

development plan and budget of the company in

concert with the development of the business plan by

the management team and the board. This will

involve establishing technical and personal credibility

with a strong, diverse scientific and engineering team

while directing their activities.

CHIEF TECHNICAL  Commercialization: Bring together the company's

SETTING diverse research, design, and product development

to deliver commercially-viable products to the

marketplace in a timely and cost effective manner,

tightly integrate with research and manufacturing to

ensure the successful introduction of products.

 Engineering Management: Work with the technical

team to implement the product development plan,

including regularly reviewing progress, adjusting

resource usage, and recommending initiation of new

projects or cessation of existing projects.

  Giving good service to customer.

 Responsible to all the operational activities in the

business.
CHIEF OPERATING
 Ensure that customer will satisfy with the business
OFFICER
agenda.

 Planning the overall operation and future expansion

of business.

 Manage credit control and evaluation.

 Manage the document flow between internal process

CHIEF FINANCIAL owner and external partner.

OFFICER  Develop the business account, policies, procedure

and auditing, budgeting and financial matter.

 Fully authorities in financial department.

 5.4 Management Compensation and Ownership

TABLE 5 Management Compensation and Ownership.

Names & Monthly Salary Share of Amount of Equity

Positions Ownership Invested
Muhammad Shafrul RM 2,500 33.33% RM 20,000
Aiman bin Mohd
Shaidi
(Chief Executive
Officer, CEO)
Muhammad RM 1,875 16.67% RM 10,000
Hilmanuddin bin
Muzakkir
(Chief Operating
Officer, COO)
Muhammad Razlan RM 1,875 16.67% RM 10,000
bin Ghazali
(Chief Management
and Sales Officer,
CMO)
Muhammad Nafie RM 1,875 16.67% RM 10,000
bin Nor Asmadi
(Chief Financial
Officer, CFO)
Muhammad Nabil RM 1,875 16.67% RM 10,000
Farhan bin
Tajuddin
(Chief Technical
Setting, CTS)
TOTAL RM 10,000 100% RM 60,000
5.5 Supporting Professional Advisors and Services

TABLE 6 Supporting Professional Advisors and Services.

Name of Professional Advisors Services Provided

Maybank Company’s Loan and Financial

Prudential Company’s Insurance

MDEC (Malaysia Digital Economy Platform for digital commercialization

Corporation)
6.1 FINANCIAL PLAN

A financial plan is a comprehensive statement of company’s long-term

objectives for security and well-being and a detailed savings and investing

strategy for achieving their objectives. The financial section consists of three

financial statements: the income statement, the cash flow projection and the

balance sheet.

6.2 Start-up Cost

A. START-UP COSTS RM
Capital Expenditure: Administrative
Business fixtures and equipment 5,000
Motor vehicles 5,000
One-Time Start-up Expenditure
Installation of fixtures/equipment (drone) 20,000
Starting inventory cost 5,000
Office supplies 1,000
Legal and professional fees 3,000
Advertising for opening 500
Other Pre-Operations Expenditure
Deposit (rent, utilities, etc.) 2,000
Business Registration & Licenses 1,000
Insurance & Road Tax for Motor Vehicle 2,000
Other Expenditure 500
Start-Up Costs 53,000
 6.3 Working Capital

Working Capital (Monthly) RM

Marketing
Advertising 500
Administrative
Salaries and wages 10,000
Rent 1,500
Utilities 1,000
Office supplies 500

Operations
Transportation 1,200
Drone Maintenance 500

Other Expenditure
Miscellaneous 500

Total Working Capital 15,700

Total Working Capital Required 1 months
 6.4 Start-Up Capital and Financing

ESTIMATED START-UP CAPITAL RM 68,700

FINANCING
Equity: Share & Venture Capital RM 60,000
Loan RM 8,700
Annual Interest Rate 4.5
Loan Duration (years) 4 years
7.0 PROJECT MILESTONES

TABLE 7 Project milestones.

ACTIVITIES DEADLINES
Brainstorming about service specification 21 September 2019
Incorporation of the venture 28 September 2019
Completion of business model and development 5 October 2019
Obtaining sales representative 12 October 2019
Signing contract with dealers 19 October 2019
Ordering of spare part kits 20 October 2019
Market testing 1 November 2019
Starting operations 10 November 2019
8.0 CONCLUSION

For the conclusion, a business plan is a simple way to present their business

ideas to potential viewers, to assist in preventing problems, and to identify growth

strategies, and tools used in the search for fundamentals. Our product, The Confined

Space Drone are so important because can make our life easier.

Nowadays we can see various industries already step up to the use of drone

technology to their work of field such as in construction, agriculture and oil and gas.

Most of the usage of the drone in the industry majority used for the inspection work. So

because of that, we want to integrate the drone technology to the advance mechanism

of inspection devices such as our drone can run through any narrow confined space as

the drone is equipped with shell to prevent the blade from collapsing with any obstacle,

can be used with low gps area, have a long usage of flight and can be equipped with

any inspection related devices such as gas testing devices which give a lot of beneficial

to them that use the drone in their industry.

By introducing our inspection drone to the industry, we can confirm that the

industry will make us as a guideline for their competent in inspection field. An addition,

we can increase the economy as well as being one of the target market of industries.

With the development of the technology in the future, we expect that we can create

another type of advance drone technologies.

9.1 APPENDICES

9.2 Company Logo

Figure 1 Company Logo.