EE3001 A+Sample Report

PRODUCT PROPOSAL
NATIONAL UNIVERSITY OF SINGAPORE

Department of Electrical and Computer Engineering
EE3001 SEM 3 AY2005/2006
SUPERVISOR : Yen Shih Cheng
GROUP : TA-01
Group Members:
Liu Zhi Qiang U048954E

Wei Dingyi U047714E
Lee Shijun, Bernard U048999X
Tan Kuan Liang U047770L
Tay Ker Yang, Ian U047768H
Lin Zhihao U047739E
Tan Wei Lun Jefferson U045932H
Lin Xinhong U045923X
CONTENTS PAGE
1. COMPANY BACKGROUND…………………………………………………... ……….. 1
1.1 Company Profile………………………………………………………………....……….. 1
1.2 Mission…………………………………………………………………………….……….. 1
1.3 Vision………………………………………………………………………………………..1
1.4 Values………………………………………………………………………….....……….. 2
2. PRODUCT DESCRIPTION…………………………………………………………….. 3
2.1 Current Situation……………………………………………………………….. ……….. 3
2.2 Product Description……………………………………………………………. ……….. 3
PRODUCT DEVELOPMENT………………………………………………………………….. …4
TECHNICAL ASPECT…………………………………………………………………………….. 5
3. TECHNOLOGY OVERVIEW……………………………………………………………. 5
3.1 INSTEON…………………………………………………………………………………. 5
3.1.1 Overview of INSTEON…………………………………………………………. 5
3.1.2 Advantages of INSTEON…………………………………………….. ………. 5
3.1.3 INSTEON Specifications………………………………………………………. 6
3.1.4 How individual INSTEON devices communicate…………………………… 9
3.1.5 Interfacing to an INSTEON network………………………………………….. 11
3.2 GOING WIRELESS……………………………………………………………………… 12
3.2.1 Overview of Wireless…………………………………………………………... 12
3.2.2 Advantages of going Wireless………………………………………………… 12
3.2.3 How does WiFi works? ……………………………………………… ……….. 13
3.2.4 Keeping your WiFi network safe and secure………………………………… 15
3. 3 BIOMETRIC TECHNOLOGIES………………………………………………………… 17
3.3.1 Overview of Biometric Technologies………………………………………….. 17
3.3.2 Fingerprint Recognition…………………………………………………………. 17
3.3.3 Fingerprint Enrolment…………………………………………………………… 17
3.3.4 Fingerprint Matching……………………………………………………………. 18

3.3.5 Fingerprint Verification………………………………………………………….. 19
4. PRODUCT OVERVIEW…………………………………………………….. ………………… 20
4.1 SECURITY………………………………………………………………………………… 20
4.1.1 Introduction………………………………………………………………………… 20
4.1.2 Key differences from traditional security systems……………………. 20
4.1.3 Layout of our security system in the apartment………………………. 21
4.2 SECURITY CONTROL UNIT…………………………………………………………….22
4.2.1 Security Panel…………………………………………………………………… 22
4.2.2 The Web Server (Enables remote access and control of security system). 26
4.3 SURVEILLANCE…………………………………………………………………………. 27
4.3.1 Camera…………………………………………………………………………….. 27
4.4 WIRELESS SENSORS………………………………………………………………….. 29
4.4.1 Motion Sensors……………………………………………………………………. 29
4.4.2 Windows and Doors Sensors…………………………………………………….. 33
4.4.3 Glassbreak Sensor………………………………………………………………... 35
4.4.4 Smoke Detector……………………………………………………………………. 37
4.4.5 Carbon Monoxide Detector………………………………………………………. 40
4.5 DOOR ENTRY…………………………………………………………………................42
4.5.1 Fingerprint Recognition Door Lock………………………………………………. 42
4.5.2 InDoor………………………………………………………………………………. 44
4.6 AUTOMATION……………………………………………………………………………. 46
4.6.1 InLights………………………………………………………………………… 46
4.6.1.2 What can InLights do? ……………………………………………….. 46
4.6.1.3 INSTEON in InLights………………………………………………….. 47
4.6.2 InLamp (300W, 120VAC) ………………………………………………………… 49
4.6.3 InWindows………………………………………………………………………….. 51
4.6.4 InCurtain motor…………………………………………………………………….. 52
4.6.5 InSink Lifter………………………………………………………………............... 53

4.6.6. InCupboard Lifter…………………………………………………………………. 54
4.7 MULTIMEDIA……………………………………………………………………………... 56
4.7.1 Multi-room Wireless Media Centre……………………………………………… 56
4.7.2 Digital Distribution Centre………………………………………………………… 57
4.7.3 Overview…………………………………………………………………………… 57
4.7.3.1 Features and Benefits………………………………………………… 59
4.7.3.2 Audio Specifications…………………………………………………… 60
4.7.3.3 Video Specifications…………………………………………………… 60
4.7.3.4 Photo Specifications……………………………………………………60
4.7.4 Multimedia Overview…………………………………………………….. ……….. 61
4.8 TELEPHONY……………………………………………………………………………… 62
4.8.1 Cisco Unified Wireless IP Phone 7920…………………………………………. 62
4.9 HEALTHCARE……………………………………………………………………………. 65
4.9.1 Overview of Healthcare…………………………………………………………… 65
4.9.2 Wireless pulse oximeter sensor………………………………………………….. 68
4.9.3 Wireless two-lead EKG…………………………………………………………… 69
4.9.4 Accelerometer, gyroscope, and electromyogram (EMG) sensor for
stroke patient monitoring……………………………………… ………………… 69
4.9.5 InHealth(for monitoring health of wearer) ……………………………………… 71
4.10 InHome Universal (Software for Controller) ………………………………………… 71
4.10.1 Overview………………………………………………………………………….. 71
4.10.2 Features…………………………………………………………………………... 73
5. TECHNICAL SUMMARY………………………………………………………………………. 75.
MARKET ASSESSMENT………………………………………………………………………… 76
6. Environment Analysis ………………………………………….........................................77
6.1 Accessing the current and internal situation ………………………………………… 77
6.1.1 Political …………………………………………………………………………….. 77
6.1.2 Economic ………………………………………………………………………….. 78

6.1.3 Social ………………………………………………………………………………. 79
6.1.4 Technological ……………………………………………………………………… 80
6.2 Business Case Justification …………………………………………………………… 82
6.2.1 Market survey ……………………………………………………………………... 82
6.2.2 Market Analysis …………………………………………………………………… 83
7. Competition’s Analysis…………………………………………………… ………………… 87
7.1 Solution Developers ……………………………………………………………………87
7.2 Home Entertainment …………………………………………………………………… 88
7.3 Home Automation & Control, Security & Surveillance ……………………………... 89
8. SWOT Analysis ……………………………………………………………………………… 90
9. Market Segmentation ………………………………………………………………………. 91
9.1 Business Market ……………………………………………………………………….. 91
9.2 Consumer Market …………………………………………………… ………………… 91
9.3 Overseas Expansion ………………………………………………………………….. 92
10. Marketing Strategy ………………………………………………………………………….. 93
10.1 Objectives……………………………………………………………………………… 93
10.2 Three Core Principles behind Marketing Strategies………………………………. 94
10.3 Key Problems faced ………………………………………………………………….. 95
10.4 Product development table…………………………………………………………… 96
10.5 Overview of 3 different phases ……………………………………………………… 97
11. Marketing Mix : 4Ps …………………………………………………………………………. 99
11.1 Product Strategy…………………………………………………………………….. 99
11.1.1 Breakdown of products ………………………………………………………… 99
11.1.2 Packaging ………………………………………………………………………... 99
11.1.3 Branding ………………………………………………………………………….. 100
11.1.4 Delivery and installation ………………………………………………………… 101
11.1.5 Support Services ……………………………………………………………….. 101
11.2 Pricing …………………………………………………………………………………. 102

11.2.1 Factors affecting pricing ………………………………………………………… 102
11.2.2 Pricing Objectives………………………………………………………………... 103
11.2.3 Competition Analysis ……………………………………………………………. 103
11.2.4 Demand Analysis ………………………………………………………………... 103
11.3Placement (Distribution) ………………………………………………………………. 104
11.3.1 Direct Sales …………………………………………………… ………………… 104
11.3.2 Internet Sales ……………………………………………………………………. 104
11.4 Promotional Strategy …………………………………………………………………. 105
11.4.1 Pre-launch : Product development ……………………………………………. 105
11.4.2 Phase 1 : Market Introduction…………………………………………………... 106
11.4.3 Phase 2 : Market Growth ……………………………………………………….. 109
11.4.4 Phase 3 : Market Maturity ……………………………………………………… 114
11.4.5 Summary of forms of Promotional Efforts …………………………………….. 115
12. Marketing Budget ……………………………………………………………………………. 116
12.1 Pre-launch : Product development …………………………………………………..116
12.2 Phase 1 : Market Introduction………………………………………………………... 117
12.3 Phase 2 : Market Growth …………………………………………………… ……….. 119
12.4 Phase 3 : Market Maturity …………………………………………………………….121
12.5 Placement ……………………………………………………………………………... 122
13. Market Control ……………………………………………………………………………….. 123
13.1 Market Contingency Plan 1…………………………………………………………... 123
13.2 Market Contingency Plan 1…………………………………………………………... 124
14. FINANCE PROJECTION…………………………………………………………………….. 125
14.1 Salary Structure……………………………………………………………………….. 126
14.2 Overall Financial Summary…………………………………………………………... 127
14.2.1 Graphs at a Glance…………………………………………………………… 127
14.2.2 Ratios at a Glance……………………………………………………………. 128
15. Pre-Launch & Phase I………………………………………………………………………… 129

15.1 Summary of Financial Standing……………………………………………………… 130
15.2 Start-Up Expenditure………………………………………………………………….. 131
15.3 Operating Expenditure………………………………………………………………... 132
15.3.1 Staff Employment and Costs………………………………………………… 132
15.3.2 Inventory Costs……………………………………………………………….. 135
15.3.2.1 Basic Package Set…………………………………………………… 135
15.3.2.2 Monthly Inventory Costs…………………………………………….. 136
15.3.3 Other Operating Costs……………………………………………………………………. 137
15.4 Sales Forecasts……………………………………………………………………….. 138
15.4.1 Expected Demand……………………………………………………………..138
15.4.2 Expected Revenue…………………………………………………………….139
15.5 Projected Income……………………………………………………………………… 140
15.5.1 Annual Income Statements………………………………………………….. 141
15.5.2 Monthly Profit & Loss Statements……………………………………………142
15.5.3 Monthly Net Profit Margin……………………………………………………. 145
15.5.4 Monthly Net Profits (Losses) – Graphical………………………………….. 146
15.6 Break-Even Analysis………………………………………………………………….. 147
15.6.1 Accumulative Data……………………………………………………………. 147
15.6.2 Accumulative Profit Graph…………………………………………………… 148
15.7 Projected Cash Flow………………………………………………………………….. 149
15.7.1 Annual Cash Flow Statements……………………………………………….150
15.7.2 Monthly Cash Flow Statements………………………………………………151
15.7.3 Monthly Cash Flow Summary……………………………………………….. 154
15.8 Projected Balance Sheet…………………………………………………… ……….. 156
15.8.1 Annual Balance Sheet…………………………………………………………………….. 156
16. Phase II………………………………………………………………………………………… 157
16.1 Summary of Financial Standing……………………………………………………… 158
16.2 One-Time-Off Purchase………………………………………………………………. 159

16.3 Operating Expenditure…………………………………………………………………160
16.3.1 Staff Employment & Costs…………………………………………………… 161
16.3.2 Inventory Costs……………………………………………………………….. 163
16.3.2.1 Add-On Packages……………………………………………………. 163
16.3.2.2 Monthly Inventory Costs…………………………………… ……….. 166
16.3.3 Other Operating Costs……………………………………………………….. 169
16.4 Sales Forecasts……………………………………………………………………….. 171
16.4.1 Expected Demand……………………………………………………………. 171
16.4.2 Expected Revenue…………………………………………………………….173
16.5 Projected Income……………………………………………………………………… 176
16.5.1 Annual Income Statements………………………………………………….. 177
16.5.2 Monthly Profit & Loss Statements…………………………………………... 178
16.5.3 Monthly Net Profits (Losses) Analysis……………………………………… 181
16.5.4 Monthly Net Profits (Losses) Graphical…………………………………….. 182
16.6 Accumulative Profit Analysis…………………………………………………………. 183
16.6.1 Accumulative Profit/Loss Data……………………………………………… 183
16.6.2 Accumulative Profit/Loss Graph…………………………………………….. 184
16.7 Projected Cash Flow………………………………………………………………….. 185
16.7.1 Annual Cash Flow Statements……………………………………………….186
16.7.2 Monthly Cash Flow Statements……………………………………………... 187
16.7.3 Monthly Cash Flow Summary……………………………………………….. 190
16.8 Projected Balance Sheets……………………………………………………………. 192
16.8.1 Annual Balance Sheet………………………………………………………...192
17. Phase III………………………………………………………………………………………... 193
APPENDIX
REFERENCES
1. COMPANY BACKGROUND
1.1 Company Profile
Our company, InHome, is a joint venture between 2 established companies, namely Cisco
Systems, the world’s most established brand for security, and Smarthome, the world’s largest
home automation retailer. Realizing that smart home technology is one of tremendous potential in
an increasingly automated and connected world of today, InHome is started to meet the need for
an integrated solution to entertainment, security, home automation and safety.
Singapore is chosen as a launching point because of the high broadband penetration rates,
educated workforce, open mindset of consumers to emerging technologies, as well as her
position as a regional IT hub.
At InHome, we package sets of products from both Cisco Systems and Smarthome to create a
totally connected, controllable and customizable home. Our emphasis on wireless technology,
user-friendly control as well as product integration will continue to be our key selling point into the
future.
Our research department at InHome is committed to analyze market demand and create new
solutions. We are also looking at future possibilities at a global stage as we identify countries
ready to embrace our technology.
1.2 Mission
InHome is dedicated to provide integrated solutions to the creation of a truly intelligent home,
utilizing minimum components to create maximum convenience.
1.3 Vision
“Bringing intelligent solutions into the homes”
Our vision is to continually provide intelligent solutions to meet the needs of homes and to be a
market leader in the provision of integrated smart home solutions.
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1.4 Values
We strive to set our skills, performance and conduct to the highest standard, continually in pursuit
of upgrading our skills and knowledge.
We maintain reliability in our consistent provision of quality products and services to our clients.
We maintain the highest level of honesty, trust and confidentiality.
We put our customer’s interest first and are proactive in anticipating and satisfying our client’s
needs.
We will work cohesively as a team, respecting yet challenging one another to give the best to our
clients.
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2. PRODUCT DESCRIPTION
2.1 Current Situation
Smarthome technologies are nothing new; they have existed as early as the 1980s. However up
till today, this technology has failed to go mainstream. The complexity of setting up, the
messiness of having wires all over your home, as well as the difficulty to control after setting up is
usually sufficient to dissuade any buyers.
2.2 Product Description
InHome is a company specializing in the integration of the entertainment, security, safety and
automation networks. Our emphasis on user-friendliness, wireless technology as well as
integrated controllers promises to meet all the needs of a modern living household.
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PRODUCT DEVELOPMENT
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TECHNICAL ASPECT
3. TECHNOLOGY OVERVIEW
3.1 INSTEON
3.1.1 Overview of INSTEON
INSTEON enables simple, low-cost devices to be networked together using the powerline, radio
frequency (RF), or both. All INSTEON devices are peers, meaning that any device can transmit,
receive, or repeat1 other messages, without requiring a master controller or complex routing
software. Adding more devices makes an INSTEON network more robust, by virtue of a simple
protocol for communication retransmissions and retries. On the powerline, INSTEON devices are
compatible2 with legacy X10 devices.
3.1.2 Advantages of INSTEON
Instantly Responsive
INSTEON devices respond to commands with no perceptible delay. INSTEON’s signaling speed
is optimized for home control—fast enough for quick response, while still allowing reliable
networking using low-cost components.
Easy to Install
Installation in existing homes does not require any new wiring, because INSTEON products
communicate over powerline wires or they use the airwaves. Users never have to deal with
network enrollment issues because all INSTEON devices have an ID number pre-loaded at the
factory—INSTEON devices join the network as soon as they’re powered up.
Simple to Use
Getting one INSTEON device to control another is very simple—just press and hold a button on
each device for 10 seconds, and they’re linked. Because commands are confirmed, INSTEON
products can provide instant feedback to the user, making them straightforward to use and ‘guest
friendly.’
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Reliable
An INSTEON network becomes more robust and reliable as it is expanded because every
INSTEON device repeats1 messages received from other INSTEON devices. Dual band
communications using both the powerline and the airwaves ensures that there are multiple
pathways for messages to travel.
Affordable
INSTEON software is simple and compact, because all INSTEON devices send and receive
messages in exactly the same way, without requiring a special network controller or complex
routing algorithms. The cost of networking products with INSTEON is held to at an absolute
minimum because INSTEON is designed specifically for home control applications, and not for
transporting large amounts of data.
Compatible with X10
INSTEON and X10 signals can coexist with each other on the powerline without mutual
interference. Designers are free to create hybrid INSTEON/X10 products that operate equally well
in both environments, allowing current users of legacy X10 products to easily upgrade to
INSTEON without making their investment in X10 obsolete.
3.1.3 INSTEON Specifications
INSTEON messages are fixed in length and synchronized to the AC powerline zero crossings.
They do not contain routing information beyond a source and destination address. INSTEON is
reliable and affordable because it is optimized for command and control, not high-speed data
transport. INSTEON allows infrastructure devices like light switches and sensors to be networked
together in large numbers, at low cost. INSTEON stands on its own, but can also bridge to other
networks, such as WiFi LANs, the Internet, telephony, and entertainment distribution systems.
Such bridging allows INSTEON to be part of very sophisticated integrated home control
environments.
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The following table shows the main features of INSTEON at a glance.
INSTEON Property Specification
Network Dual band (RF and powerline)

Peer-to-Peer
Mesh Topology
Unsupervised
No routing tables
Protocol All devices are two-way Repeaters1
Messages acknowledged
Retry if not acknowledged
Synchronized to powerline
X10 Compatibility2 INSTEON devices can send and receive X10 commands
INSTEON devices do not repeat or amplify X10
Data Rate Instantaneous 13,165 bits/sec
Sustained 2,880 bits/sec
Message Types Standard 10 Bytes
Extended 24 Bytes
Message Format, Bytes From Address 3
To Address 3
Flags 1
Command 2
User Data 14 (Extended Messages only)
Message Integrity 1
Devices Supported Unique IDs 16,777,216
Device Types 65,536
Commands 65,536
Groups per Device 256
Members within a Group Limited only by memory
INSTEON Engine RAM 80 Bytes
Memory Requirements
Typical Application RAM 256 Bytes
(Light Switch, Lamp Dimmer)
Memory Requirements EEPROM 256 Bytes
Flash 7 Kbytes
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Device Installation Plug-in
Wire-in
Battery Operated
Device Setup Plug-n-Tap™ manual linking
PC or Controller
Security Physical device possession
Address masking
Encrypted message payloads
Application Development IDE (Integrated Development Environment)
SALad interpreted language
Software and Hardware Development Kits
Powerline Physical Layer Frequency 131.65 KHz
Modulation BPSK
Min Transmit Level 3.16 Vpp into 5 Ohms
Min Receive Level 10 mV
Phase Bridging INSTEON RF or hardware
RF Physical Layer Frequency 904 MHz
Modulation FSK
Sensitivity -103 dbm
Range 150 ft unobstructed line-of-sight
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3.1.4 How individual INSTEON devices communicate
Devices communicate with each other using the INSTEON protocol over the air via radio
frequency (RF) and over the powerline as illustrated below.
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INSTEON devices communicate with each other over the powerline or through RF. INSTEON
devices that can use both the INSTEON Powerline protocol and the INSTEON RF protocol solve
a significant problem encountered by devices that can only communicate via the powerline.
Powerline signals originating on the opposite powerline phase from a powerline receiver are
severely attenuated, because there is no direct circuit connection for them to travel over. A
traditional solution to this problem is to connect a signal coupling device between the powerline
phases, either by hardwiring it in at a junction box or by plugging it into a 220 VAC outlet.
INSTEON automatically solves the powerline phase coupling problem through the use of
INSTEON devices capable of both powerline and RF messaging. INSTEON RF messaging
bridges the powerline phases whenever at least one INSTEON PL/RF device is installed on each
powerline phase. When suitably equipped with a dedicated serial interface, such as USB, RS232,
or Ethernet, INSTEON devices can also interface with computers and other digital equipment.
Network reliability improves when more INSTEON devices are in use. The drawing shows
INSTEON devices that communicate by powerline-only (PL), RF-only (RF), and both (RP).
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As an example, suppose RF device RF1 desires to send a message to RF3, but RF3 is out of
range. The message will still get through, however, because devices within range of RF1, say
RP1 and RF2, will receive the message and retransmit it to other devices within range of
themselves. In the drawing, RP1 might reach RF2, RP2, and RF4, and devices RP2 and RF1
might be within range of the intended recipient, RF3. Therefore, there are many ways for a
message to travel: RF1 to RF2 to RF3 (1 retransmission), RF1 to RP1 to RP2 to RF3 (2
retransmissions), and RF1 to RP1 to RF2 to RP2 to RF3 (3 retransmissions) are some examples.
On the powerline, path diversity has a similar beneficial effect. For example, the drawing shows
powerline device PL1B without a direct communication path to device PL4B. In the real world, this
might occur because of signal attenuation problems or because a direct path through the electric
wiring does not exist. But a message from PL1B will still reach PL4B by taking a path through
RP2 (1 retransmission), through PL2B to RP2 (2 retransmissions), or through PL2B to RP2 to
PL3B (3 retransmissions).
The figure also shows how messages can travel among powerline devices that are installed on
different phases of a home’s wiring. To accomplish phase bridging, at least one INSTEON hybrid
RF/powerline device must be installed on each powerline phase. In the drawing, hybrid device
RP1 is installed on phase A and RP2 is installed on phase B. Direct RF paths between RP1 to
RP2, or indirect paths using RF2 or RF4 (1 retransmission) allow messages to propagate
between the powerline phases, even though there is no direct electrical connection.
3.1.5 Interfacing to an INSTEON network
An INSTEON device that connects an INSTEON network to the outside world is called an
INSTEON Bridge. There can be many kinds of INSTEON Bridges. One kind, an INSTEON-to-
Serial Bridge, connects an INSTEON network to a computing device like a PC, a PDA, or to a
dedicated user interface device with a serial port. Another Bridge, INSTEON-to-IP, connects an
INSTEON network to a LAN or the Internet, either with wires (like Ethernet) or wirelessly (like
WiFi). Still other INSTEON Bridges could connect to other networks such as wired or wireless
telephony, Bluetooth, ZigBee, WiMax, or whatever else emerges in the future.
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3.2 GOING WIRELESS
3.2.1 Overview of Wireless
Wi-Fi (or WiFi, wifi), short for Wireless Fidelity, is a way of transmitting information in radio wave
form. Wi-Fi is the wireless way to handle networking. It is also known as 802.11 networking and
wireless networking. Wireless uses high frequency radio signals to transmit and receive data over
distances of a few hundred feet and uses ethernet protocol. Ethernet is the most widely-installed
local area network technology. An Ethernet LAN uses coaxial cable or special grades of twisted
pair wires.
In the near future, wireless networking may become so widespread that we can access the
Internet just about anywhere at any time, without using any wires. Therefore, wireless technology
plays one of the most important roles in the transmission and receiving of data for our smarthome.
3.2.2 Advantages of going Wireless
One of the biggest advantage of Wi-Fi is its simplicity. Wireless networks are not only easy to set
up but they are inexpensive too. The Digital Distribution Center can be connected to the Wireless
Media Adaptor, which can be located at any part of the house using radio signals. Both devices
can in fact be 100 feet (30.5 meters) apart. With the use of wireless technology, the access of
music, videos, digital photographs is made possible.
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3.2.3 How does WiFi works?
One Digital Distribution Center can allow multiple devices to

connect to the Internet.
Basically, wireless network uses radio waves, just like handphones, televisions and radios do. In
fact, communication across a wireless network is a lot like two-way radio communication. The
main concept of wireless technology used in smarthome is given below.
1. The Digital Distribution Center acts like a router which translates data and information
received from the Internet using a physical, wired Ethernet connection, into a radio signal.
It then transmits the data and information using an antenna.
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2. The Wireless Media Adaptor receives the signal and decodes it, displaying either video
and digital photographs over the television or playing music over the speakers.
Wireless network interface card that are installed inside Wireless

Media Adaptor Devices
A Wireless Local Area Network (WLAN) uses radio waves to communicate among the Wireless
Media Adaptor devices. The Digital Distribution Center which acts as a router has an antenna
which is physically connected to a conventional wired Ethernet network and serves as a bridge to
the wireless network. The antenna acts as an Access Point (AP). In order to indicate its presence
to wireless devices in its vicinity, the AP announces itself by beaconing, or broadcasting a Service
Set Identifier (SSID) approximately 10 times per second. The SSID identifies the name of the
network. Wireless Media Adaptors that are within range and equipped with a wireless network
interface card can receive the SSID, associate with the WLAN and request an IP address that will
allow them to connect to the Digital Distribution Center, download any music, video files from the
Internet as well as shared folders.
As mentioned earlier, the radios used for WiFi communication are very similar to the radios used
for walkie-talkies, cell phones and other devices. They can transmit and receive radio waves. In
the process of transmission, the radios convert 1s and 0s into radio waves and convert the radio
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waves back into 1s and 0s. WiFi radios can transmit on any of three frequency bands. Or, they
can "frequency hop" rapidly between the different bands. Frequency hopping helps reduce
interference and allows multiple devices to use the same wireless connection simultaneously.
• WiFI radios transmit at frequencies of 2.4 GHz or 5GHz. This frequency is considerably
higher than the frequencies used for cell phones, walkie-talkies and televisions. The
higher frequency allows the signal to carry more data.
• WiFi radios use 802.11 networking standards, which come in several flavors:
o 802.11b. Transmits in the 2.4 GHz frequency band of the radio spectrum. It can
handle up to 11 megabits of data per second, and it uses complimentary code
keying (CCK) coding. 802.11b is the first version to reach the marketplace.
Despite being the slowest, it is the least expensive.
o 802.11g. Also transmits at 2.4 GHz, but it is a lot faster than 802.11b. It can
handle up to 54 megabits of data per second. 802.11g is faster because it uses
orthogonal frequency-division multiplexing (OFDM), a more efficient coding
technique.
o 802.11a. Transmits at 5GHz and can move up to 54 megabits of data per second.
It also and uses OFDM coding.
3.2.4 Keeping your WiFi network safe and secure
Security is an important part of a home wireless network, as well as public WiFi hotspots. If
consumers set their wireless Digital Distribution Center router to create an open hotspot, anyone
who has a wireless card will be able to use the signal. Hence it is important to keep the network
private and safe from strangers who may tap and hack into it, thereby creating unwanted settings
in the smarthome.
To keep consumers’ network private, they can use one of the following methods:
• Wired Equivalency Privacy (WEP) uses 64-bit or 128-bit encryption. 128-bit encryption is
the more secure option. Anyone who wants to use a WEP-enabled network has to know
the WEP key, which is usually a numerical password.
• WiFi Protected Access (WPA) is a step up from WEP and is now part of the 802.11i
wireless network security protocol. It uses temporal key integrity protocol encryption. As
with WEP, WPA security involves signing on with a password. Most public hotspots are
either open or use WPA or 128-bit WEP technology.
• Media Access Control (MAC) address filtering is a little different from WEP or WPA. It
does not use a password to authenticate users. Instead, it uses the Digital Distribution
Center’s physical hardware. Each DDC has its own unique MAC address. MAC address
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filtering allows only devices, in this case the Windows Media Adaptors, with specific MAC
addresses to access the network. You must specify which addresses are allowed when
you set up your DDC router.
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3. 3 BIOMETRIC TECHNOLOGIES
3.3.1 Overview of Biometric Technologies
Biometric technologies use a wide variety of physiological or behavioral characteristics, such as a

person’s fingerprint, hand, voice, iris, face, keystroke, or signature, to verify an individual’s identity.
Fingerprint comparison is the most cost effective and widely used method of biometric
authentication. It is particularly suited to security applications because the chance of two people,
even identical twins, having the same fingerprint is less than one in a billion. Fingerprint
biometrics can be implemented in various security system designs ranging from personal
computer password replacement, to basic, stand-alone verification systems for restricted access
areas, to a multi-unit networked system with a central hub and many remote scanning units that
could be used in settings such as an airport.
3.3.2 Fingerprint Recognition
Acter AG provides the biometric fingerprint algorithm used in the example image file. This
algorithm is minutia-based and runs through three different operating modes: Enrollment,
Matching, and Verification. Fingerprint minutia are defined either as the ends of a ridge or the join
of two ridges. Figure 1 shows a fingerprint image with the ridges and minutia highlighted.
Figure 1: Fingerprint Image showing Ridges and Minutia
3.3.3 Fingerprint Enrolment
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At the beginning of this process, the algorithm scans the fingerprint image for minutia. (Since the
algorithm will reject the image if there are not enough usable minutias in the image, the quality of
the sensor image is important.) The user will be asked to place his or her finger on the sensor
several times while the algorithm takes several templates and uses these to create a master
template for that finger. Each minutia found is given a weighting based on the number of times
they matched for each of the successive templates. Accidental or single-match minutia are
dropped creating a final template of very high quality. This procedure makes future comparison
easier and more accurate, while increasing the inherent level of security by reducing the chance
of an incorrect match.
Note that the system does not store the actual fingerprint image, but only the template created
from the minutia found in the image. This increases the security of the system and prevents
someone from accessing the stored data and stealing a user’s identity. Once the template has
been completed and stored, the user has been enrolled in the system and can use the matching
and verification modes.
3.3.4 Fingerprint Matching
In order to match a fingerprint, the user is asked to place his finger on the sensor again. The
fingerprint image is extracted from the sensor and the minutias in this image are compared to
those stored in the template. Figure 2 shows a fingerprint image with the minutia selected for
matching. This vectored pattern of minutia is compared to the patterns within the template and
corresponding minutia are noted. With the algorithm provided by Acter AG, the orientation
requirements of the finger or vector pattern is eliminated as the algorithm can accommodate
rotational and translational variances.
Figure 2: Fingerprint Image showing matching of Minutia
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3.3.5 Fingerprint Verification
Within the algorithm, a set threshold determines when enough minutias from the fingerprint image
match those in the fingerprint template. If this threshold is passed, then the fingerprint image is
determined to be of the same finger that created the template. Modification of this threshold can
result in a wide variety of accuracy. The threshold value, along with the algorithm’s verification
speed, is used to determine the algorithm’s overall performance. If the threshold is lowered, then
the chance of incorrectly rejecting the correct finger, know as the False Rejection Rate (FRR), is
also lowered. At the same time, lowering the threshold also increases the chance of incorrectly
accepting the wrong finger, known as the False Acceptance Rate (FAR). Where the FAR and
FRR are equal is termed the Equal Error Rate (ERR), and is shown in Figure 3.
Moving the threshold level and the ERR to the lowest and highest extremes will lower the
accuracy of the algorithm and compromise the system’s efficacy: the lowest extreme will allow
anyone to be verified regardless of enrollment, and the highest extreme will completely block
anyone from ever being verified. The goal is to set the threshold at a level that maintains security
and also allows enrolled users to be easily recognized.
Figure 3: FAR, FRR and EER Comparison to the Threshold Level
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4. PRODUCT OVERVIEW
4.1 SECURITY
4.1.1Introduction
What is so ‘smart’ about our security system? Traditionally, security systems are installed to
protect the house from break-ins. This has not changed in our system but rather, more features
are added. We will explore these differences in the next section.
4.1.2 Key differences from traditional security systems
Remote surveillance and control
Our ‘smart’ home security system is connected to the internet via a secure server. This enables
the owner of the system to monitor and edit the settings of the security setup anywhere in the
world as long as there is an internet connection. You can now monitor your home remotely or arm
the security system if you forgot to do it from the office. You do not have to be physically back
home to be assured of your home safety anymore.
Programmable systems
Our security system is programmable in whichever way the owner wants it. For instance, it can be
programmed to automatically turn on the lights at night and turn off them in the morning to give
the illusion of someone being at home, when actually the entire family is away on a holiday.
Intelligent Sensors
Our sensors are state of the art sensors and will not be triggered unnecessarily. For example, no
more instances of pets setting off the alarm as our motion sensors are smart enough to
differentiate pets from humans. Another example will be the problem of intruders breaking your
windows and thus avoid setting of the traditional window contact alarm system. This possibility
has been precluded by using our glass break sensor which detects accurately the sound of
breaking glass.
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Wireless Connectivity
All our security components are wireless, meaning no more messy wires. It also necessarily
makes it more convenient for home owners that like to move their things around or renovate their
house every now and then.
4.1.3 Layout of our security system in the apartment
Window Contact Window Contact Window Contact
Master Bedroom Room A Room B
Smoke Smoke Smoke

Detector Detector Detector
Camera Glassbreak Camera

Window Contact
Sensor
Window Contact
Kitchen Smoke
Detector
Smoke/ Gas
Detector Living Room
Biometric
Door
Motion Detector
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4.2 SECURITY CONTROL UNIT
4.2.1 Security Panel
Smarthome Web-Enabled SecureLinc System
Overview
When the security panel detects an alarm signal from one of the wireless sensors, the system
blasts an 85dB siren that alerts the family. In addition, it can be programmed to call any private
phone number (i.e.: a friend, neighbor, office, handphone, etc.) and play a pre-recorded message.
It also supports 24-hour monitoring by commercial alarm monitoring personnel, who can dispatch
police, fire or medical response (depending on the type of alert it receives). It can even call for
non-alarm events. For example, when the kids have arrived home safely from school, the system
can notify the parents at their offices to let them know that their children have successfully
disarmed the alarm.
Specifications
Dimensions: 10 13/16" x 8" x 2 1/8" (275mm x 203mm x 55mm)
Weight: 990g (2.2 pounds) without batteries
Zones: 28 wireless, 2 hardwired
Hardwired Zone
2.2 k. E.O.L. resistance (max. resistance of wires 220)
Requirements:
Zone Types: Interior follower, perimeter, perimeter follower, delay 1, delay 2,
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24h silent, 24h audible, fire, non-alarm, emergency, gas and flood
User Codes: 8 codes, 4 digits each
Integral keypad, PowerCode hand-held transmitters, wireless

Control Facilities: commander, MCM-140+, remote telephone, local or remote
computer
Display: Single line, back lighted 16-character LCD and 4 LED indicators
AWAY, HOME, AWAY-INSTANT, HOMEINSTANT, LATCHKEY,

Arming Modes:
FORCED, BYPASS
Silent alarm, siren alarm or sounder (internal) alarm, in

Alarm Types:
accordance with zone attributes
Continuous (intrusion / 24 hours / panic); triple pulse - pause -

Siren Signals:
triple pulse (fire)
Siren Timeout: Programmable (4 min. by default)
Internal Sounder Output: At least 85 dBA at 10 ft. (3m)
Supervision: Programmable time frame for inactivity alert
Data Retrieval: Status, alarm memory, trouble, event log
315 MHz (in USA & Canada) or other UHF channels per local
Operating Frequencies:
requirement in the country of use
Receiver Type: Super-heterodyne, fixed frequency
Receiver Range: 600 ft. (180m) in open space
Antenna Type: Spatial diversity
Coding: PowerCode and/or CodeSecure™
Plug-in transformer 120 VAC, 60 Hz / 9 VAC, 1A (in the U.S.A.);

Power Supply:
230 VAC, 50 Hz / 9 VAC, 1A
Current Drain: Approx. 65 mA standby, 800 mA at full load and in alarm
Site External Siren Current

450 mA max @ 10.5 VDC when powered by AC & DC (battery)
(EXT):
Site Internal Siren Current

450 mA max. @ 10.5 VDC when powered by AC & DC (battery)
(INT):
PGM Output Current: 100 mA max.
Detector 1 & 2 Total (Sum) 100 mA max.
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Current:
High Current / Short Circuit

All outputs are protected (current limited)
Protection:
Battery Test: Once every 10 seconds
Built-in Modem: 300 baud, Bell 103 protocol
Data Transfer to Local

Via RS232 serial port
Computer:
Report Destinations: 2 central stations, 4 private telephones, 1 pager
SIA, Pulse 4/2 1900/1400 Hz, Pulse 4/2 1800/2300 Hz, Contact
Reporting Format Options:
ID, Scancom
Pulse Rate: 10, 20, 33 and 40 pps – programmable
Message to Private Phones: Tone or voice
Message to Pager: PIN No. Alarm Type, Zone No.
Operating Temperature
32°F to 120°F (0°C to 49°C)
Range:
Storage Temperature Range: -4°F to 140°F (-20°C to 60°C)
Humidity: 85% relative humidity, @ 30°C (86°F)
Approvals: FCC compliant
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Typical System Configuration
Page 25
4.2.2 The Web Server (Enables remote access and control of security system)
Powerlink Web Interface Controller
Overview
The PowerLink has a built-in secure web server, which ensures that all private information is fully
secured. Log in on site or remotely using a secure user name and password. Once connected,
the user will be able to view cameras or control home automation devices. He/ She can also view
device status, save images, adjust the system's mode and add users (up to eight).
In case of an event, PowerLink immediately informs the owner via e-mail, text message and on-
screen alerts. The alarm mode screen displays the alarm type, date and time automatically. It
also includes quick access buttons to view video cameras, mute the system siren, turn all lights
on or off, or disarm the system.
Specifications
Dimensions: 7.9" x 4.5" x 1 7/8"
Camera Ports: 4
Connections: 4 camera ports, RS-232, cat. 5
Minimum System SecureLinc security panel;

Requirements: Cable or DSL Internet connection enabled via an ethernet-based
Page 26
router;
Internet Explorer 6.0;
PC running Windows 2000 or X10;
Wi-Fi 802.11b or 802.11g access point (optional)
4.3 SURVEILLANCE
4.3.1 Camera
SmartHome wireless colour camera
Overview
The wireless colour camera connects to the Powerlink home network, enabling users to remotely
view their homes anytime, anywhere around the world as long as there is an internet connection.
Specifications
Dimensions: 5 1/2" x 2 3/4" x 1 1/2"
Connections: Direct 10/100 Ethernet cable network connection; AC power
Mounting: Tabletop, wall, ceiling
Power: 120V AC
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Block Diagram
Normal Surveillance:
PowerLinc Local Remote

Web Server Computer monitoring via
Internet
Camera Camera Camera
Page 28
4.4 WIRELESS SENSORS
4.4.1 Motion Sensors
SmartHome Pet-Immune Wireless Motion Sensor
Overview
With a coverage area of 30 by 30 feet, this fully supervised detector will keep the home secure
when the owner is not around. Upon detection of an intruder, the on-board transmitter instantly
sends an alert to the SecureLinc II Wireless Security System. With its superior transmission
range, this highly accurate unit is able to differentiate between real threats and large pets,
allowing pets to move freely while still ensuring the security of the home. Features patented
technologies such as Digital Signal Processing (DSP), "True Motion Recognition" (TMR) and 3D
"Target Specific Imaging" (TSI) Cylindrical optics.
This motion sensor is a low voltage sensor that controls indoor lighting too. The sensor fills the
room with continuous high frequency (ultrasonic) sound waves. Any movement within the
sensor’s range causes a shift in the original emitted frequency. The sensor’s receiver identifies
any change in frequency as motion and either turns the lights on or maintains lights on.
This motion sensor uses passive infrared, ultrasonic or a combined multi-sensing technology.
Occupancy Sensor provides automatic ON/OFF switching of lighting loads for enhancing
convenience, security and long-term energy savings.
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The few main purposes of this motion sensor are for the monitoring of conference rooms,
restrooms, stockrooms, stairwells and parking garages in commercial and institutional facilities,
porches, patios, hallways and backyards in residential settings.
System Description
The Passive Infrared (PIR) units respond to changes in the infrared background by turning lights
ON when people enter space being monitored, and OFF when the space is unoccupied.
The Ultrasonic (US) units transmit an ultrasound signal and monitor changes in the signals return
time to detect occupancy.
Multi-Technology units combine PIR and US sensing technologies for highly accurate monitoring
with minimum false triggering.
Below is a table which shows how the motion sensor lighting actually automatically adapts:
CONDITION EXAMPLE ADAPTIVE REASONS

Timer Left In Test Mode - The An installer accidentally The sensor automatically
sensor remains in an 6 sec. leaves the sensor in the 6 resets the timer to10 min
test mode. sec. timer test mode and the a.fter 15 .min of test mode.
lights may go off or on every
6 sec.
False-On - The sensor The sensor detects After an initial movement is

incorrectly turns the lights on. movement in the corridor or sensed, if another movement
hallway and the room lights is not sensed within the timer
turn on. setting then the delayed off
time setting is automatically
reduced.
False-Off - The sensor The sensor does not detect If motion is sensed within a
incorrectly turns the lights off. movement because an short period after the lights go
occupant sits virtually off, then the current delayed
motionless at a desk and the off-time setting is increased.
lights turn off.
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Specifications
Dimensions: 4.1" x 2.4" x 1.3" (104mm x 60mm x 32mm)
Weight: 2.5 oz. (71g)
Maximum Coverage Range: 30' x 30' (9m x 9m), 90°
Pet Immunity: Up to 40 lbs. (18kg)
3-position adjustment scale: 6 ft., 7 ft., and 8 ft. (1.8m, 2.1m, and
Vertical Adjustment:
2.4m)
3.6 Volt lithium thionyl chloride (LiSOCl2) battery, size 1/2AA,

Battery Type:
Tadiran TL-2150
Nominal Battery Capacity: 1 Ah
Standby Current: 0.015mA
Transmit Current: 12 mA (including LED)
Battery Life Expectancy: 3 years (typical use)
Detector: Dual-element low-noise pyroelectric sensor
Pulse Counter: Programmable to 1,3 or 5 pulses
Rearm Timer: 2 minutes after last alarm
Frequencies: 315, 433.92, 868.95, 869.2625 MHz
Transmission Sequence: 3 data bursts at variable intervals within 3 seconds
ID: 24-bit factory-selected code, >16 million possible combinations
Total Message Length: 36 bits
Operating Temperature: 14° F to 120° F (-10° C to 49° C)
Storage Temperature: -4° F to 140° F (-20° C to 60° C)
FRI Protection: >20 V/m up to 1000 MHz
Standards: FCC and Directive 1999/5/EC compliant
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Block Diagram
Upon detection of humans:
Wireless SecureLinc PowerLinc

Motion Security Web Server
Sensor Panel
Sounds Notifies Police,

Alarm home owner
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4.4.2 Windows and Doors Sensors
SmartHome Magnetic Door and Window Contact
Overview
This protective device monitors the opening and closure of doors and windows. Each magnetic
contact features a connection for a hardwired sensor input, making it ideal for protecting multiple
windows using standard contacts and only one wireless version. Enabled with a unique ID code,
each magnetic door and window contact is available in several optional frequencies in
compliance with international standards.
Specifications
Dimensions: 3 3/16" x 7/8" x 15/16" (81mm x 22mm x 23.5mm)
Weight: 1.2 oz. (34g), excluding battery
Battery Weight: 0.45 oz. (13g)
Frequency: 315, 433.92, 868.95
24-bit digital word, over 16 million combinations, pulse width

Transmitter's ID Code:
modulation
Overall Message Length: 36 bits
2: one internal, one external, each with a separate 24-bit

Alarm Inputs:
transmitter
Auxiliary Input Circuit Type: N.C. / E.O.L., selected with DIP switch
E.O.L. Resister Required: 47 kilo ohms
Page 33
Once every 3 minutes or one-shot, selectable via on-board DIP
Message Repetition:
switch
Signaling at 60-minute intervals via reed switch or aux. input,

Supervision:
including battery supervision
Tamper Reporting: Every 3 minutes until restored
3V Lithium CR-2-type battery, Panasonic or Sanyo only (not

Power Source:
included)
Battery Life Expectancy: 3 years (typical use)
Operating Temperature: 32° F to 120° F (0° C to 49° C)
Standards: FCC compliant
Block Diagram
Upon detection of windows/doors opening:
Manetic SecureLinc PowerLinc

Window/ Security Web Server
Door Contact Panel

Alarm home owner
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4.4.3 Glassbreak Sensor
SmartHome Wireless Glassbreak Sensor
Overview
A burglar can't open your doors or windows without setting off the door/window contacts, but what
happens when he gains access through a broken window?
The sound of glass breaking is of a particular frequency. Microphones are able to convert the
frequency to an electrical current and then send the current to the “brain” to be processed.
Before the current reaches the “brain”, it passes through a crossover, a device that only conducts
electricity of a certain frequency range. The crossover is wired so that it will only conduct current
that has the frequency of breaking glass. In this way, only this specific sound will trigger the alarm,
and all other sounds are ignored. The sensor is enabled with a unique ID command code and
available in various frequency ranges in compliance with international standards.
Specifications
UPC: 782136404388
Dimensions: 3.13" H x 4.24" W x 1.7" D (7.95cm H x 10.8cm W x 4.32cm D)
Alarm Duration: 4 seconds
Operating Temperature: 14° F to 120° F (-10° C to 50° C)
RFI Immunity: 20 V/meter from 1 to 1000MHz
Housing Material: Flame-retardant ABS
Microphone: Omni-directional 360° electret
Range: 20' (6m) radius
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Plate glass (up to 1.4"/6.4mm);
tempered glass (up to 1.4"/6.4mm);
Glass Types Detected:
wired glass (up to 1.4"/6.4mm);
laminated glass (up to 1.4"/6.4mm)
Mounting Location: Ceiling or wall
Minimum Distance From

4' (1.2m)
Glass:
Compatibility: All Caddx brand panels
Batteries: 2 CR 123A 3V Lithium
Battery Life: 5 years typical
Operational Voltage: 2.8 to 4.5V DC
Current Draw: 17 µA typical average
Transmitter Frequency: 319.5 MHz
Transmitter Conditions: Alarm, tamper, low-battery supervisory
Block Diagram
Upon detection of glass breaking:

Glassbreak Security Web Server
Sensor Panel

Alarm home owner
Page 36
4.4.4 Smoke Detector
SmartHome Wireless Smoke Detector
Overview
The alarm sounds an alarm as soon as smoke is detected, regardless of whether or not the
system is armed. It also sends a wireless alarm signal to the security control panel, where alarm
monitoring staff can quickly send fire personnel to the apartment. The alarm signal will be
repeated every 10 seconds thereafter as long as smoke is still present, and a restore report will
be sent when the smoke detection chamber clears.
Because each smoke detector is assigned a unique code at the factory, the user is able to use
more than one unit in his/her home without coding switches. The smoke detectors, which come
with mounting screws and anchors, are powered by two 9-volt alkaline batteries, which can power
the unit for up to two years. If the battery voltage drops below normal, a low-battery report will be
displayed on the LCD keypad.
Specifications
Dimensions: 5.12" x 2.95" (130mm x 75 mm)
Weight (Including Battery): 9.6 oz. (272g)
Alarm Sound Level: 85 dB at 10 feet (3m)
Operating Frequency (MHz): 315, 433.92, 868.95, 869.2625 or other frequency according to
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24-bit digital word, over 16 million combinations, pulse width
Transmitter's ID Code:
modulation
Overall Message Length: 36 bits
Automatic signaling at 60-minute intervals (315 MHz version), 15-

Supervision: minute interval (433.92, 868.95, 869.2625 MHz versions) or
according to the local standards
Tamper event (removal of the unit from its bracket) is reported

Tamper Alerts: once. Tamper restore is reported when the tamper switch is
restored
Yellow LED lights upon transmission (visible only when Switch

Transmission Indicator:
SW-1 is ON)
Power Source: 9 Volt alkaline or lithium battery
Operation Voltage: From 7.2 V to 9.5 V
Current Drain: 28 µA standby, 20 mA in operation
Alkaline: at least 1 year (for typical use) for battery types

Eveready #522, #1222, #216; Duracell #MN1604; or Gold Peak
Battery Life Expectancy:
#1604P, #1604S; Lithium: at least 2 years (for typical use) for
battery types Ultralife # U9VL, U9VL-J
Automatic transmission of battery status data as part of any

Battery Supervision:
transmitted message
Audible Low Battery Built-in horn beeps once a minute for up to 30 days when the
Warning: battery voltage drops
Operating Temperature: 32° F to 100° F (0° C to 38° C)
Relative Humidity: 10% to 85%
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Block Diagram
Upon detection of smoke:

Smoke Security Web Server
Detector Panel
Sounds Notifies Fire

Alarm Department,
home owner
Page 39
4.4.5 Carbon Monoxide Detector
Carbon Monoxide Alarm
Overview
The carbon monoxide detector accurately detects the level and exposure time of the odourless
CO2. It connects to the SecureLink network can be monitored remotely as long as there is
Internet connection. When activated, an alarm will sound and an alert will be sent out to the
owner’s cell phone and email.
Specifications
Input voltage: 12V DC, supplied by a UL Listed control panel
Standby: 8mA
Current consumption:
Alarm: 60mA max
Relay contact: 50mA @ 12V DC
Electrical configuration: NO, NC
CO alarm level: COc: 70 ppm/60-189 minutes
Operating temperature: 40F to 100F (4.4 to 37.8C)
Relative humidity: 15 to 90% non-condensing
Width:2.7" (6.9cm)
Dimensions: Length: 6.0" (15.2cm)
Depth: 1.4" (3.6cm)
Weight: 4oz (114g)
Color: White
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Altitude: +/- 3,000 feet for best performance
Listings: UL2075
Block Diagram
Upon detection of carbon monoxide:
Carbon SecureLinc PowerLinc

Monoxide Security Web Server
Detector Panel
Sounds Notifies Fire

Alarm Department,
home owner
Page 41
4.5 DOOR ENTRY
4.5.1 Fingerprint Recognition Door Lock
Biometric Deadbolt Lock
Overview
By programming unique fingerprints into the Biometric Deadbolt Lock, the owner can be sure that
only the people authorized will be able to gain entry into the home. Four AA batteries are required
to use this door lock and the Biometric Deadbolt Lock can be installed on either right- or left-hand
doors.
The Biometric Deadbolt Lock will accept up to 30 fingerprints in its system, providing keyless
access to the entire family. This lockset is designed to fit any standard wooden door that has
installation holes for a deadbolt, but a template is provided for doors without existing deadbolts,
as well. Programming is easy, and the LED display provides added convenience for programming
and user management. Mechanical keys are included for emergency entry should the occasion
arise. After correctly matching the fingerprint to memory database, the door is unlocked, and the
system will power off automatically to save electrical power. If the batteries become low, it will
alert the owner. This device non-volatile memory will retain all enrolled fingerprints and other
setup functions.
An additional feature of the Biometric Deadbolt Lock door is that household consumers will no
longer need to physically walk over and open the door themselves when there is a visitor at the
door. This door also comes with an inbuilt wireless system which is able to unlock by itself from
the controller unit.
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Specifications
EAN: 6923164412387
Dimensions: Cover: 5.9" x 3.3"x 1.4" (150mm x 83mm x 36mm)
Weight: 5.5 lbs. (2.5kg)
Scanning Window: 0.47" x 0.63" (12mm x 16mm)
Fingerprint Capture Type: Optical
Number of Users: 15
Scanning Time: <1 second>
Recognition Time: <2 seconds>
False Acceptance Rate: <1/10,000
False Rejection Rate: <2/100
Translation Tolerance: <+/- 1.2" (>< +/-3mm)
Rotation Tolerance: +/- 15°
Power Supply: 4 AA alkaline batteries
Battery Life: 300 uses
Operating Temperature: 5° F to 158° F
Humidity: 10% to 10%
Door Thickness: 1 1/2" to 2"
Approvals: CE, UL listed
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4.5.2 InDoor
Internal/external door motor (swing door)
Overview
This InDoor motor can be mounted on any internal swing door. The motor is capable of opening a
door of up to 100kg in weight, although this is reduced to 80kg if arm extender is used. (Arm
extenders are used where the gap between the top of the door and the motor is greater than
34mm, ie if mounted above above a deep architrave). The motorised door opener fitted can open
the door either by a switch located next to the door or by a remote control unit. These controls
can be set either to open the door and then close it automatically a few seconds later, or to open
or close each time the button is pushed.
Features
This door can be manually over-ride. Any physical movement will activate the motor and continue
opening the door (push and go). In terms of safety aspect, there is an inbuilt safety stop or
obstruction alert. If the door encounters an obstacle when closing, the motor will stop and reverse
to open position. The door will then attempt to close again.
Pre-emptive slowing is to ensure that if the door encounters an obstacle the last time it tried to
close, it will slow as it reaches the obstacle's position. If the obstacle is encountered again, it will
open and remain open. The motorised openers feature battery back-up so the doors can still be
opened and closed if the power fails. If there is a power failure, the switches next to the door will
not work but pushing the door or using a remote control will open the door.
The specifications of the InDoor Motor are as follows:
Runs on a 240V power supply

Runs on a 24V battery in case of a power failure
Page 44
Networked by an interface mounted external to the motor. An integrated network card,
which supplied the motor with low voltage power, would make it easier to install and
provide additional network functionality
Page 45
4.6 AUTOMATION
4.6.1 InLights
4.6.1.1 Introduction of InLights
Our lighting control systems use a method of signaling, called X10, which operates on your
home's existing powerlines. This protocol allows users to use wall and tabletop controllers,
wireless handheld remotes, keychain remote controls, and automated schedules to control the
lighting and appliances in your home. The products are easy to install and can be as easy as
replacing your current light switch(s) with one of our smart switches, or simply plugging in a lamp
module and a tabletop controller. 'X10' is the industry standard term, but it's also referred to by
others as PLC (Power Line Carrier) or DHC (Decora Home Controls) or PCC (Powerline Control
Components) or A10. Our X10 based lighting and appliance control systems are modular and can
be installed all at once throughout the entire residence, or room by room, or lamp by lamp, based
on your own particular requirements
4.6.1.2 What can InLights do?
The InHome controller provides wireless control of InLights wireless plug-in modules and wall
switches. The wireless controller is capable of controlling all lighting and other electrical
appliances in a home. Basically, InHome controllers can be any devices, for example ranging
from a laptop to a handphone or even a PDA, practically anything which can download a PC
software called the InHome Universal into it. InHome Universal is a software programme which
once installed, is able to turn that particular device into a universal controller, which in turn is able
to control all InHome automated devices. In this section, we concentrate one of InHome’s most
essential and important devices, InLights.
From the wireless InHome controller, lightings can be dimmed, turned on and off, in groups or
individually. The controller can broadcast an All Lights On command for security purposes, and
schedule lights and other electrical appliances on and off at pre-selected times.
A single button can select predetermined scene lighting levels and another can set the lighting in
Burglar Deterrent mode.
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4.6.1.3 INSTEON in InLights
InHome wireless radio frequency products utilize INSTEON™ technology to communicate and
inter-operate, and are compatible with other INSTEON ™ enabled products.
INSTEON is a wireless RF-based method for instant remote control of lighting and appliance
controls, HVAC, access control, and security. INSTEON lighting switches, AC receptacles, and
thermostats installed in user’s home or business deliver an intelligent, remotely controlled method
for all home systems. INSTEON LCD remote controls offer user-friendly programming and
provide confirmation of every command. Users can also at the same time create schedules to
turn their lights ON at sunset, and OFF at sunrise.
Besides, users can also access their home from the web to control devices when they are not
home. Have users’ computer speak in response to events, such as when they arrive home. All
INSTEON products are fully compatible.
The InLights product line from Advanced Control Technologies includes several products that are
intended to work together to provide convenient control of all of users’ home lightings and
appliances. By using the InHome controller, all of these InLight devices are linked by a state of
the art wireless communications network featuring patented INSTEON technology. This
technology insures that the commands that you give through the wireless controller are reliably
communicated by radio to the intended InLight device. The In-Lighting feature of the InHome
Universal operates up to 64 InLight devices, which include both plug-in and wall mounted
dimmers and switches. Hence, the InHome controller finds a way to route user’s commands to
the intended device through other InLight dimmers and switches. This is possible because each
of these devices are designed to retransmit the commands that are sent through them to adjacent
devices that might otherwise be out of range of the InHome controller. The INSTEON system also
provides a command that can be routed if necessary through as many as three different devices
in route to the intended device.
Communications with devices employing INSTEON technology is bidirectional. That is, when a
command is sent from a InHome controller, an acknowledgment is sent back to it by the affected
devices to confirm that the command was received. In the unusual situation in which a command
is not properly received, a message will appear on the InHome controller’s display to inform the
user.
Lastly. the InHome Universal has a property that ensures that the InHome controller goes into a
power saving mode after a period of inactivity in order to conserve battery life. Pressing any
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button will cause the unit to “wake up” and process any of your commands. The display is blank
in the power down mode.
Features
In the aspect of In-Lightings, there are some strong features of the InHome Universal which are
able to distinguish ourselves from competitors. Take for instance the InHome controller is able to
provide wireless radio frequency control of all InLight Plug-in Dimming/Switching Modules and
Wall Switches. It can dim lamps and switch lamps and appliances on and off and at the same
time provide timers, child protection and burglar deterrent. Not only can it create 64 groupings of
lamps and 32 different scene settings too but also operate up to 64 InLight Plug-In Modules and
Wall Switch Modules. Lastly, it is user-friendly and runs on a menu based operation.
There are also some other features of the In-Lighting that supports safety and security too. For
example it is able to switch on or off all connected lights with the touch of one button in case user
comes home late or hears noises in the night. The burglar deterrent feature simulates that
someone is home by randomly turning lights on or off at times that are selected by the user. The
security alarm can too use the lights to make the house look like it is occupied. The last aspect of
safety is that child protection can lock modules OFF on potentially dangerous appliances, like
toasters or space heaters, providing extra safety.
In fact, the main feature of the In-Lighting is due to its ability to provide good comfort and
convenience. It allows you to adjust various lights regardless of whether you're in the kitchen,
lying on the couch or on your way out. Moreover, each InHome controller comes pre-programmed
from the factory with a unique Home ID. This ID prevents unintended access to a user's network
of modules by neighbours or others who may also be using InLight products. If a user desires to
add additional controllers to their InHome network however, there is a provision to allow this to be
done without compromising this important feature.
Grouping activates several, or all lights, by the push of one button. Hence, there will be no more
wandering from lamp to lamp when user comes home, or you're on your way to bed. User is able
to preset different scenes with different light levels, then, with the push of a button select dinner
scene, watch TV scene, evening scene, or whatever he or she chooses. The multiple timer of the
In-Lighting allows you set lights to turn on at eight (8) preset times.
There are typically two types of In-Lightings which we are marketing. They are:
1) In-Lamp (300W, 120VAC)
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2) In-Wall Dimmer (Wall-mount, 500W, 120VAC)
4.6.2 InLamp (300W, 120VAC)
Overview
The InHome controller provides control of the In-Lamp and other lightings in a home. This In-
Lamp can easily be installed by the homeowner. A button on the Plug-in In-Lamp identifies it to
the InHome controller when pushed. It also can turn the connected load on and off.
Lamps can be dimmed, turned on and off, in groups or individually from the controller.
Using the InHome wireless controller, an "All Lights On" command can be broadcast for security
reasons, and with the “Timer” feature, lamps can be scheduled to turn on and off at preselected
times.
A single button on the InHome controller can select predetermined “scene” lighting levels
programmed by the homeowner at each Lamp Module.
Specifications:
Power: 120 VAC, 60 Hz

Signal (Frequency): 908.42 MHz
Maximum Load: 300W, for incandescent lamps only
Range: Up to 100 feet line of sight between the Wireless Controller and /or the closest
HomePro Module
Dimensions: Approximately. 4.7" x 2.3" x 1.54" (mounted in wall receptacle)
Weight: Approximately. 5 oz.
Operating Temperature Range: 32-105O F (0-40O C). Indoor use only
4.6.3 InWall Dimmer (Wall-mount, 500W, 120VAC)
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Overview
This In-Wall Dimmer can be easily be installed by the homeowner. It can directly control the on/off
or dim and brighten any connected incandescent lighting by pressing and holding. Pushing the
top or bottom of the paddle switch identifies it to the wireless InHome controller. Lamps can then
be dimmed, turned on and off in groups, or individually, from the Controller. Pushing one of six
buttons on the InHome controller can select predetermined “scene” lighting levels programmed by
the homeowner at each In-Wall Dimmer or other wireless modules.
Specifications:
Power: 120 VAC, 60 Hz

Signal (Frequency): 908.42 MHz
Maximum Load: 300W, for control of permanently installed incandescent lamp fixtures
only
Range: Up to 100 feet line of sight between the Wireless Controller and /or the closest
HomePro Receiver. Receivers however, relay the signal to the next closest receiver,
creating an RF network.
Fuses: Software plus secondary factory replaceable only fuse.
Disconnect: Load Disconnect or Air Gap Switch on face disconnects load for service
Dimensions: Approximately. 2.4"W x 4.25"H x 1.6"D.
Weight: Less than 16 oz.
Mounting: Mounting plate for 2" x 4" electrical junction box
Connections: Flying Leads: BLACK (Line) -18 AWG, RED (Load) -18 AWG, WHITE
(Neutral) -18 AWG, GREEN (Ground) - 18 AWG.
Operating Temperature Range: 32-105O F (0-40O C). Indoor use only
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4.6.3 InWindows
Overview
Windows in a house are fitted with the In-Windows for opening and closing functionality. This
motor can be operated using the switch located next to the window or through any of the remote
control devices. Windows can be opened partially or all the way. In case of power failure the
motors have a battery back-up that will allow them to be moved if required. There is also a safety
release pin mounted on the windows in case of mechanical failure.
The most special feature of the In-Window is that users need not worry about closing their
windows when they leave their house. They can even leave their windows wide open, just to
ventilate their house, without fearing that their house might get wet when it starts pouring. This is
because our In-Window has the ability to detect the moisture level in the surrounding air as well
as the presence of real rain droplets falling from the sky. With that level of sensitivity, the In-
Windows are able to automatically close by themselves without even a push on the button, but
simply the falling of raindrops onto them.
Features
This In-window motor is for side-and top-hung windows. The standard installation method is the
use of an in-built transformer. An external interface card was also fitted that provided the safety
stop feature. The motor itself resisted a forced opening attack from outside, though the mounting
bracket proved vulnerable to force applied from the side. An additional safety feature is that if the
load sensors detect an obstruction, the motor will cut out immediately. Also, the emergency
release proved awkward to remove, requiring a pair of pliers to pull out the pin. The release is
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fitted with a longer pin with a handle so it may be removed more easily in an emergency.
Currently the motor is networked by an interface mounted external to the motor. An integrated
network card, which supplied the motor with low voltage power, would make it easier to install
and provide additional network functionality (particularly load monitoring for safety purposes).
The specifications of the In-Window are as follows:
240V mains transformed to 24V using internal transformer

No back-up power
A weather forecast WF-chip that gets constant updates from the weather station
Ultra sensitive water sensor that is installed all across the frames and the glass of the
window.
4.6.4 InCurtain motor
Remote Control Shades
Overview
Curtains and blinds are fitted with motors to open and close them. The motors operate on a
standard 9-volt battery. Adding motor control to window coverings also helps your shades last
longer because eliminating the manual pulling and tugging gets rid of the associated wear and
tear. Using the Inhome controller, you'll be able to open, close or partially close shades with the
press of a button.
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The remote-control shades have a built-in radio receiver. Using the controller, it is able to
command the shades to open, close, or stop at any spot in between, and since the controller
uses radio signals, you won't need to point it directly at the shades to control them. Each remote
can control the shades on up to four windows in any room.
4.6.5 InSink Lifter
This sink lifter is capable of lifting 100kg through a distance of 500mm. There is a integrated
controller which is easy to use and reliable due to its incorporation of an integrated network card.
Specifications
The specifications of the sink lifter are as follows:
Uses 24V linkpower

Battery back-up power
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4.6.6. InCupboard Lifter
This InCupboard lifter is capable of lifting 100kg through a distance of 500mm. There is a
integrated controller which is easy to use and reliable due to its incorporation of an integrated
network card.
Specifications
The specifications of the cupboard lifter are as follows:
Uses 24V linkpower

Battery back-up power
Both the In-cupboard lifter and the In-kitchen sink lifter are both mounted on lifting mechanisms.
This allows them to be moved to the most appropriate position for use by different family
members. For example, if it is hard to reach the sink or the cupboard they can be lowered to a
more usable height. The cupboard and sink lifters are controlled using the rocker switches
located to the side of them. The sink or cupboard will only move while the switch is depressed -
letting go will stop movement. Both the sink and the cupboard can also be moved from outside
the kitchen using one of the remote control devices. In this case they will move to a pre-set
position. The lifting mechanisms can also detect any obstruction. If something is left under the
cupboard, the lifting mechanism will stop to avoid damaging what is beneath. Both lifting
mechanisms also have a battery back-up. In the case of power failure, the switches next to them
or a remote control unit will allow them to be moved a small number of times.
The design and structure of the building in which they will be installed will influence the
technologies decided on. There are a variety of ways in which communications data can be sent
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around the house, from dedicated cabling to wireless techniques. The choice of the most
appropriate transmission media will depend on the house in which they will be installed. The
homes developed by the Joseph Rowntree Foundation have so far been retrofitted with smart
homes equipment and so have relied heavily on the use of the existing power cabling as a
transmission medium. In a new build or major refurbishment project, a dedicated wiring bus
system may prove more appropriate.
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4.7 MULTIMEDIA
4.7.1 Multi-room Wireless Media Centre
The Multi-room Wireless Media Centre allows digital entertainment stored on your Windows
Media Center PC to your Home Entertainment Center, without running cables through the house.
Using a Wireless-A or Wireless-G, the Media Center displays home-made or downloaded digital
movies and your digital photographs on the television. It is also able to watch and pause live TV
shows, or record them digitally for later viewing.
The Media Centre consists of two main components. The first is the Wireless Media Adaptor
which sits by the home stereo and television and connects to them using standard consumer
electronics cables. It then connects to the Digital Distribution Centre by Wireless-A or Wireless-G
networking.
Wireless Media Adaptor
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4.7.2 Digital Distribution Centre
The second component is the Digital Distribution Center (DDC). It is the core device on the Media
Centre and allows consumers to view or listen to virtually anything that can be stored in a PC on
any entertainment system in your home. Combining the functions of digital photo archive, digital
music jukebox and digital video server, the DDC allows homeowners to easily organize, access,
control and enjoy digital photos, music and video – from any number of sources – in any outfitted
room in the home.
4.7.3 Overview
The Digital Distribution Centre has 4 main features. First, there is a Wireless Access Point, which
lets you connect Wireless-G, Wireless-B, and other performance-enhanced devices to the
network. There's also a built-in 4-port full-duplex 10/100 Switch to connect your wired-Ethernet
devices together. The Router function ties it together and lets your whole network share your
high-speed cable or DSL Internet connection.
There is also a Storage Link that easily add gigabytes of storage space onto the network using
readily available USB 2.0 hard drives -- or plug in a USB flash disk, for a convenient way of
accessing portable data files. The DDC comes with an inbuilt 120Gb hard drive and can easily
store and distribute up to 120,000 1MB photos, or up to 24,000 5MB songs, or up to 120 1GB, 2
hour MPEG4 videos or any combination thereof. There's a built-in Media Server, which streams
music, video, and photos from the attached storage device to any UPnP compatible Media
Adapter. You can also set it up so that your storage is accessible from any computers in the
house -- files can be easily downloaded wirelessly through the network. Your files can be
available publicly, or create password-protected accounts for authorized users. The new push
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button setup feature makes it easy to configure your wireless devices. Just push the button on the
router and on your Media Adaptor to automatically create an encryption-secured wireless
connection. Wi-Fi Protected Access™ (WPA) protects your data and privacy with up to 128-bit
industrial-strength encryption.
The Router can serve as a DHCP Server, has a powerful SPI firewall to protect your PCs against
intruders and most known Internet attacks, supports VPN pass-through, and can be configured to
filter internal users' access to the Internet. Advanced configuration is a snap with the web
browser-based interface.
The unique modular design of the Digital Distribution Center allows it to be placed anywhere.
From there, it can communicate with one or more Media Adapters wirelessly. The Digital
Distribution Center distributes the homeowner’s digital content (which is uploaded to it via a PC
on the network), while the Media Adaptor simply decodes that content and sends it to a TV,
stereo or other audio/video component. A Remote Control for the Media Adaptor provides
navigation via easy–to–use on–screen menus on a TV, allowing users to browse, play or view
their entire collection of music, video and photography.
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Dimensional Drawings of DDC
4.7.3.1 Features and Benefits
Centralized management, distribution and control of digital content in all the most popular
formats, enables homeowners to enjoy music, video and photos anywhere in the house,
whenever they want
Consolidates digital music, video and photos into a centralized digital library by copying
files from any networked PC in the house through a media harvesting application
DDC is not vulnerable to the crashes and viruses that afflict PCs and similar devices
Using standard audio/video cables, the Media Adaptor is connected to a TV or stereo and
communicates with the Digital Distribution Center over the home wireless network.
Provides the user convenience of a private home network for sharing Internet access,
files, printers and other equipment throughout the home
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Commercial–grade hardware firewall helps protect against unauthorized access to the
network with Stateful Packet Inspection (SPI) and Network Address Translation (NAT)
Built–in DHCP server simplifies network administration by dynamically assigning and
keeping track of IP addresses rather than requiring an administrator to manage the task
Built–in 120GB hard drive; system upgradeable for additional storage
4.7.3.2 Audio Specifications
Streams digital audio over wireless network to enabled audio/ video components (with
the Digital Player); consolidates digital audio into a central library
High–definition playback (up to 320 kbps)
Multiple digital zone capability (up to eight audio streams from a central library)
Supports MP3, Windows Media (WMA), WAV files; upgradeable for future audio formats
4.7.3.3 Video Specifications
Streams digital video over wireless network to enabled audio/video components (with the
Digital Player); consolidates digital video into a central library
Graphic interface for browsing and selecting video using a TV or PC
Multiple digital zone capability (up to four video streams from a central library)
Supports MPEG 1, MPEG 2 & MPEG 4; upgradeable for future video formats
4.7.3.4 Photo Specifications
Streams digital photos over wireless network to enabled audio and video components
(with the Digital Player); consolidates digital photos and albums into a central library
Browse photos by thumbnail, or view as multimedia slideshows
Supports JPEG, BMP (Windows Bitmap), upgradeable for future graphics formats
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4.7.4 Multimedia Overview
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4.8 TELEPHONY
4.8.1 Cisco Unified Wireless IP Phone 7920
Overview
VoIP phones are largely popular due to the cost advantages over traditional telephone networks.
VoIP calls can be placed across the internet and most internet connections are charged using a
flat monthly fee structure. Using the internet for both data traffic and voice calls can allow
consumers to get rid of one monthly payment. In addition, VoIP plans do not charge a per-minute
fee for long distance calls. All these perks make VoIP a more attractive alternative to traditional
telephone networks.
In our smart home, the whole house has an internal wireless network. This allows the wireless
VoIP phone to be used anywhere in the house without the hassle of cables.
The Cisco Unified Wireless IP Phone 7920 is an easy-to-use IEEE 802.11b wireless IP phone
that provides comprehensive voice communications. The phone supports a host of calling
features and voice-quality enhancements. Because the phone is designed to grow with system
capabilities, features will keep pace with new system enhancements.
Capabilities
Messages Offers direct access to voicemail with Menu key or Hot key
Directories Identifies incoming messages, allowing users to quickly and effectively return
calls using direct dial-back capability
Features · 6 multi-line appearance-extensions or speed dials
· Calling name and number display
· Call waiting
· Call forward
· Call transfer
· Three-way calling (conference)
· Predialing before sending
· Redial
· Call hold and resume
· Call mute
· Call park
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· Call pick-up and group pick-up
· "You Have Voice Mail" message on display
· Hot key for keypad lock
· Hot key for voicemail access
· 9 speed dials configurable in the set
· Programmable speed-dial Hot keys 2-9
· Time and date display
· Idle and call state-based soft keys
· Keypad lock and vibration icon indicators
· RF and battery-level indication
· Comfort noise generation (CNG), voice activity detection (VAD), adaptive jitter
buffer, and echo cancellation
· Language support: English, French, German, Norwegian, and Japanese
· Local phone book
Keys · 2 soft keys to access screen-based applications, features, and functions
· Hold
· Mute
· Menu
· Four-way rocker for display access
· Volume control
· Send and End, and Power
Display · 128 x 80 pixel-graphical display
· Backlit
Speaker/MIC ·Built in
Alert ·High-frequency response ringer, vibration, and visual display alerts
Multiple Ring ·More than 24 user-adjustable ring tones available

Tones
Protocol · Compatible with Cisco Unified CallManager Versions 5.0, 4.2, 4.1, 4.0, 3.3, and
later, and Cisco Unified CallManager Express Versions 3.3 and 3.2, using the
Skinny Client Control Protocol (SCCP) Compatible with Cisco Unified Survivable
Remote Site Telephony (SRST) Version 2.0 and later
· Cisco Compatible Extensions Version 2.0
Codec Support ·G.711a, G.711u, and G.729a audio compression codecs
Configuration · Dynamic Host Configuration Protocol (DHCP) client or statically
Options configured
· Alternate Trivial File Transfer Protocol (TFTP) support
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· Support for over-the-air firmware upgrades using TFTP server
Network · Cisco Discovery Protocol
Features · Automatic IEEE 802.1q (VLAN) configuration
· Site survey, traceroute (hidden feature), transparent secure roaming, and VLAN
support
· Provisioning of network parameters through DHCP
Security · Cisco Wireless Security Suite IEEE 802.1X Cisco LEAP authentication:
Optional password prompt at power-up
· 40- and 128-bit static Wired Equivalent Privacy (WEP)
· Wi-Fi Protected Access (WPA)
· WPA Pre-Shared Key (PSK)
· Cisco Centralized Key Management (CKM)
· Temporal Key Integrity Protocol (TKIP) and Message Integrity Check (MIC)
· EAP-FAST
· Optional phone lock password
· Automatic key lock
Wireless Characteristics
Wireless · IEEE 802.11b, Direct Sequence with Dynamic Rate Scaling at 1, 2, 5.5, Access
Support and 11 Mbps
RF · Up to 14, depending on regulatory domain; North America: 11; ETSI: 13;

Channels Japan: 14
Frequency ·2.4-2.497 GHz

Range
Wireless ·100-mW Effective Isotropic Radiated Power (EIRP) with scaling

Output at 1, 5, 20, 50, and 100 mW
Power
Range ·500-1000 ft (15-300m) indoors, depending on environment
Access-Point ·Cisco Aironet® access points, including the Cisco Aironet 1300,
Support Aironet 1200, Aironet 1100, Aironet 350, and Aironet 340 series, the
Cisco Aironet 1100 Series Lightweight, and the Cisco Aironet 1130
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Accessories · Desktop charger with USB
· 2.5-mm ear bud
· Choice of holster and full-cover carry cases
· Windows 2000-based administration utility for quick phone configuration
Cisco Unified Wireless IP Phone 7920 Version 3.0
4.9 HEALTHCARE
4.9.1 Overview of Healthcare
In our smart homes, some devices will contribute physiological information about the patient
(e.g.,heart rate, blood pressure), while other devices in and around the home will contribute
information about the patient’s environment (e.g., humidity, temperature, carbon monoxide level).
These physiological and environmental data will be collated to assess the patient’s state of health
and to identify external factors that may influence that state. In some cases, groups of devices will
have enough collective awareness to
function autonomously based on sensor data (e.g., A carbon monoxide detector may note levels
above a safety threshold, initiating a protocol to open the windows, sound an alarm, and activate
vital signs sensors for individuals in the house. Each device in this sequence would know the
context of its action and initiate the proper device procedures). In order to protect individuals in
the home from unforeseen catastrophes, additional devices may be dispersed around the locality
of the residence to detect air-born viruses, bacteria, and possibly chemical/biological agents.
These collective devices would provide data for automated response procedures as well as
demographic analyses yielding information about the scope and intensity of, for example, a
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disease outbreak or an attack with a biological agent. Collective intelligence technology will be
essential to analyze data from these distributed sensors.
Wireless sensor networks (also called ad hoc or multi-hop networks) are formed by small nodes
or "motes"- tiny, self-contained, battery-powered computers with radio links that enable the motes
to self-organize into ad hoc networks, communicate with each other and exchange data. Motes
form the building blocks of wireless sensor networks. Data from individual nodes moves across
the network by wirelessly hopping from node to node, typically flowing towards a super-node, or
server, with greater processing power.
A wireless network supports sensors distributed throughout the home and the immediate outside
environment. In the living room, the server serves as a central information hub for sending and
receiving sensor data, consulting with a care provider via video-conference over the cable TV line,
collating information relevant to patient state-of-health, and providing educational material on
health maintenance and emergency procedures. The home incorporates flexible switching
protocols for communicating with the outside world over multiple modalities (e.g., UHF, FM,
cellular, satellite, phone/ISDN/Tl land line). Although a temporary knowledge database and EPR
repository exists in the home, the home information system is capable of communicating securely
with remote hospital information networks and EPR repositories in order to obtain new
information relevant to patient care. Data mining capabilities allow the home network to search
large repositories for context-specific information. This information is filtered to provide
meaningful quantities of health information to both patients and physicians.
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Furthermore, occupants of the homes who are in need of medical monitoring can be further
supervised with wireless vital signs sensors. These sensors are small, wearable wireless pulse
oximeter and 2-lead EKG based on the Mica2, MicaZ, and Telos sensor node platforms. These
devices collect heart rate (HR), oxygen saturation (SpO2), and EKG data and relay it over a
short-range (100m) wireless network to any number of receiving devices, including PDAs, laptops,
or ambulance-based terminals. The data can be displayed in real time and integrated into the
developing pre-hospital patient care record. The sensor devices themselves can be programmed
to process the vital sign data, for example, to raise an alert condition when vital signs fall outside
of normal parameters. Any adverse change in patient status can then be signaled to a nearby
EMT or paramedic.
4.9.2 Wireless pulse oximeter sensor
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4.9.3 Wireless two-lead EKG
4.9.4 Accelerometer, gyroscope, and electromyogram (EMG) sensor for stroke patient monitoring.
Specifications:
• wireless vital sign sensors consist of a low-power microcontroller (Atmel Atmega128L or

TI MSP430) and low-power digital spread-spectrum radio (Chipcon CC2420, compliant
with IEEE 802.15.4, 2.4 GHz, approximate range 100 meters, data rate about 80 Kbps).
• Have a small amount of memory (4-10 KB) and can be programmed to sample, transmit,
filter, or process vital sign data.
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• Powered by 2 AA batteries with a lifetime of up to several months if programmed
appropriately.
• Basic hardware is based on the MicaZ and Telos sensor nodes, described above, and a
custom sensor board integrating the pulse oximeter or EKG circuitry is attached to the
mote devices.
These sensors can be made to be small, lightweight and wearable by the occupants of the house.
It is the scaled down version of the Telos sensors and includes a tiny, rechargeable Li-ion battery,
small USB connector, and 3-axis accelerometer. It can be used for monitoring physical activity
and motor functions.
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4.9.5 InHealth (for monitoring health of wearer)
InHealth ( cover removed for greater clarity )
4.10 InHome Universal (Software for Controller)
4.10.1 Overview
InHome Universal is a PC-based software program that allows home owners to control hundreds
of home automation devices from dozens of different manufacturers using multiple technologies.
It acts like a central universal controller for the smart home. With InHome Universal, we can
control lighting, security and home theatre all from one common interface.
InHome Universal also includes a built-in web-server thus home owners would be able to monitor
and control their homes from the internet, home network and PDA. All that is needed is to install
the software on the various components which the respective home owners are comfortable with.
The software is compatible for Windows and has PDA support. These components then
communicate wireless-ly with the various “smart” devices around the home and allow full control
of them via the internet. The software also supports voice recognition and thus the events can be
initiated by a series of voice commands.
The system and the connections between the nodes in the system are modeled below.
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The system is modeled with three different units. The first unit is the PC side which is formed of a
user interface component, the database and the web server components. An internet page has
been setup running on a Web server. The user interface and the internet front end are connected
to a backend data base server. The master node has a RS232 communication interface used for
computer and serial communications and an RF communication unit for wireless data transfer
between other nodes in the system and a microcontroller unit to manage all the data transfers.
Also there exists a low cost microcontroller to maintain the communication between nodes. The
final node in the list is the hardware connected to the actual devices to be integrated to the
system. This node is also formed of an RF communication unit to connect to the manager node
plus a component to establish communication between devices connected on the node and a
microcontroller to organize the data flow to and from the master.
As the manager unit, a computer is used here. However, it is possible to use a PDA or any smart
device with our software installed which possesses wireless transfer capabilities. Through the
internet we can access the database directly. The status changes that are reflected to the
database are transferred to the device through first the master and then to the slave nodes. The
connection to the web page is secured through the server certificate and the SSL algorithm. In
addition a login/password based access is setup to prevent unauthorized accesses. With the
internet page, authorized users can login to their home environment, monitor and change the
status of the devices of their choice.
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Microsoft SQL Server is used for the database and DB Artisan for database management. The
tables in the database are shown below. Under a single device number there may be different
states stored indicating different status of the devices at different time intervals. Thus with this
system history for each device can be stored and retrieved for later processing.
InHome Universal bridges the database with the hardware attached. Along being a user interface,
the program will with certain intervals synchronize the status of the devices to match their status
with the database value. If there is any change in status of a device in the database, this change
is synchronized with the device. Similarly the statuses of the devices are updated on the
database as the conditions on devices change.
4.10.2 Features
¾ Built-in web server allows full control of all your devices via your home network or the
internet
¾ Web server supports cascading style sheets for customization
¾ TouchPad interface for use on touch screens
¾ PDA support, control your devices with your PocketPC or PALM handheld device
¾ Password secure log-in to web server
¾ If you have a MAPI compliant email client, InHome Universal can display your local email on
a web page
¾ Send email from the web page
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¾ Supports the new INSTEON automation technology
¾ Multiuser support for web access
¾ Ability to control any X10 compatible device, including devices that support pre-set dim
commands and Extended Code dimming (models Leviton 6381, X10 LM14A/PLM21 and
others)
¾ Runs scripts created in VBScript, JScript, or Perlscript.
¾ Includes Microsoft Agent. Microsoft Agents are interactive characters that can speak and be
spoken to. HomeSeer can cause the Agent to speak in response to events.
¾ Events can also be triggered with voice commands. HomeSeer includes the "Genie"
character. Other characters are freely available on the Internet.
¾ Device commands may be imbedded in email messages. This allows you to send an email
home to turn devices on and off.
¾ Views are designed to show as many devices or events as possible on your screen, giving
the user instant status of devices
¾ View devices by device or by event, displaying all events related to a device, or all devices
related to an event
¾ Events may be triggered by time, INSTEON command received, sunrise/sunset, device
status change, device value change, infrared received, and various conditions like elapsed
time on or off, by email, or recurring.
¾ Trigger actions include, controlling INSTEON devices, launching applications, sending
EMAIL, playing sounds, sending I/R commands, triggering other events, and speaking with
or without MSAgent.
¾ Built-in TV/Video game timer which allows you to set time limits on the use of TV's or video
games. Kids are given a 4 digit password that is entered into the controller interface.
InHome Universal will then turn off the TV after a pre-determined period of time has elapsed.
Time may be set by day or by week.
¾ Full logging of all actions either performed locally or via the web.
¾ Microsoft Outlook-like user interface.
¾ InHome Universal is implemented as a 32 bit ActiveX EXE. It can be controlled by other
applications including ASP web pages.
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5. TECHNICAL SUMMARY
Control via:-
Internet Multimedia
- PC
Router Network
- PDA
Powerline
Server
Home Security Safety &

Automation Network Health Care
Network Network
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MARKET ASSESSMENT
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6. Environment Analysis
6.1 Assessing the current internal and external situation
PEST Analysis
PEST analysis is a scan of the external macro environmental factors which consists of political,
economic, social and technological.
6.1.1 Political
In Singapore, there is strong government support in the infocomm industry and hence it would be
a bonus for companies to engage in infocomm research and development businesses.
Singapore has been enjoying economic growth for the past 25 years since the National
Computerization Plan in 1981, many jobs were also created. Today, Singapore has one of the
highest internet penetration rates in the world. 66% of the households enjoy internet access,
52% of households are on broadband, all government schools enjoy broadband access and three
out of four companies use the internet for business mostly via broadband. Hence we can see
that the infocomm industry in Singapore has a massive potential to develop in the future.
Many neighboring countries such as Korea, Japan, China, Thailand and Malaysia are all making
huge investments in their infocomm infrastructure and capabilities to enhance their competitive
edge. Singapore also came up with the Intelligent Nation 2015 or iN2015 Infocomm Masterplan,
which is a 10 year plan to transform Singapore into an Intelligent Nation and Global City, powered
by infocomm.
The Intelligent Nation 2015 Masterplan’s two key aspects are infocomm infrastructure and
manpower development. The Government will catalyse the development of an ultra high-speed
national broadband network with access speed up to more than 1 Gbps, and also set up a nation
wide pervasive wireless broadband network. The Infocomm Development Authority of
Singapore’s (IDA) Wireless Broadband Market Development Programme will be supporting
wireless internet service providers to deploy WiFi and WiMax networks nationally for pervasive
indoor and outdoor coverage. In addition, the Government will also invest in training more
professionals with strong technical expertise in the infocomm industry, especially in the finance,
healthcare, education and e-government sectors.
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The Singapore Government will also be providing S$620 million worth of Infocomm tenders in
Financial Year 2006 (April 2006 to March 2007). Some of the key projects coming up include the
Human Resource Transformation project by MINDEF, the Facility Management Bulk Tender by
IDA, the Integrated Security System for Changi Prison Complex by Ministry of Home Affairs and
also the Student Hub by Ministry of Education.
6.1.2 Economic
Over the past year, favorable global economic development has boosted the performance of
Singapore’s economy. Following the broad-based expansion in Q3 2005, Singapore’s economy
continued to expand by 8.7% year-on-year, resulting in growth for the whole of year 2005 to be
6.4%.
Due to the strong expansion in the electronics, marine & offshore engineering and chemical
industries, manufacturing sector grew to 23.3% in 2005 from 14% in 2004.
Outstanding results from the services sector was observed as well, with a growth of 6.0% and
accounting for two-thirds of the economy. The wholesale and retail trade sector, being the largest
of the services industries, expanded by 13%. Retail sales remained at fairly high levels despite
the slow rise in revenue.
In 2005, a record nine million visitors visited Singapore. The hotel and restaurants segment also
grew in Q4 2005, as hotel room rates continued to be heightened by the trend of increasing
visitors over the past years. Together with that, services such as legal, accounting and IT
showed general improvements.
The employment rate continued to improve with job gains of 32,800 in the final three months of
2005. The services sector remained the main support for job creation bringing total employment
to a record high of 110,800, exceeding the 71,400 jobs created in 2004. This increased the total
number of people employed to 2.3 million and brought the unemployment rate down to 2.5% in
December last year, the lowest in four years. Hence, average unemployment rate for the whole
of 2005 dropped to 3.2%, down from 3.4% in the preceding year.
CPI inflation came in at 1.3% year-on-year in December 2005, bringing the average price
increase in 2005 to 0.5%. There is an increase in food prices, education cost, tobacco, holiday
packages, cinema tickets, outpatient medical and dental treatment, as well as public road
transport.
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The global economy is expected to grow at a steady pace in 2006. Trend is that this growth will
become less US-centric, more broad-based and firmly entrenched across the other major
industrial countries. Activities in the global IT sector are expected to be sustained at high levels,
supported by the consumer electronics segment. Sales of handphones, mp3 players, flat panel
displays and game consoles are all anticipated to grow.
Last year, the Singapore ICT sector’s estimated growth was between 6 to 8% generating about
S$37 billion in revenue. Employment in the sector had increased from 108,000 in 2004 to
111,400 last year. Demand for infocomm manpower has also strengthened with 3,000 more jobs
expected to be created this year. This is a healthy sign of demand for infocomm workers.
The infocomm sector has done very well in recent years. It has also moved up the value-chain as
companies become more innovative. Hence higher-value areas such as Infocomm Research &
Development, Digital Media, Infocomm Consultancy & Project Management and Enterprise
Systems & Integration were the biggest value and job creators.
6.1.3 Social
The total population in Singapore increased from 4,017,700 in year 2000 to 4,240,300 in year
2004. More people are living away from their parents once they got married as HDB flats are
more affordable with the CPF grants and loans etc. Together with the growing economy, people
tend to have higher purchasing power and living standards have also increased over the years.
Today, high technology and innovative gadgets are greatly sought after due to advancement in
technology.
Some of the social trends are ageing population, small office home office and higher education
level. In 2002, nearly 12% (170,000) of Singapore’s population will be aged 60 years and older
and this figure is projected to reach 30.0% (430,000) in year 2025. This would result in the
Government having to spend more on pensions, health and social welfare provisions. In addition,
elder people are more susceptible to illnesses and disability. Research is on going in the health
care technology sector to provide solutions for taking care of the ageing population. One such
example of a country facing the same trend would be the United States health care industry
which is deploying capable telehealth systems and the internet to let the patient assume a more
active role in his/her own care. Research is also carried out in Smart health care technology to
deliver highly automated, intelligent health care in the home while at the same time reducing the
cost of care.
The concept of Small Office Home Office (SOHO) is also gaining popularity in Singapore. SOHO
is a commercial unit with full comforts of the home. Far East Organization’s landmark
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development SOHO@Central is Singapore’s first purpose-built home offices, and has received
overwhelming response during its launch in 2004. With the increasing trend of SOHO, less
people will have to commute to work everyday and people will be spending most of their time at
home. NCS is a leading IT and engineering solutions and service provider in the Asia-pacific
region. Its Smart home SOHO enables its residents to enjoy high speed connectivity through the
use of a simple WiFi (wireless LAN). SOHO’s integrated fax / email / voice over IP etc also allow
the residents to share information more easily and effectively. These features would attract more
people to take up the idea of smart home SOHO in the future.
In year 2004, the mean years of schooling were 8.8 years and the percentage of residents aged
25 years and over with secondary or higher qualification is 55.1%. The figures from Statistics
Singapore show that more and more people are getting higher levels of education since year
2001. The proportion of households with access to a computer at home grew by 13% between
year 2000 and year 2005. The number of households with access to internet also increased in
tandem with the increase access to computers. In year 2005, almost two in three households
had access to internet at home, compared to one in two households in year 2000. The
pervasiveness of infocomm usage by households and individuals thus reflects the presence of a
more IT-literate Singapore population.
6.1.4 Technological
Today, there is an increase in the number of home users that adopt the Internet and broadband,
which created a demand for more home-targeted content and services. Other than plain Internet
surfing, advances in various home-networking technologies have also allowed more innovative
services to be developed. The global landscape boasts of 750 million Internet users in the homes
by 2006. The figure of Internet access from homes far exceeds that of mobile, work, and school
access, and the home networking market is fast growing with huge potential.
Today, Singapore has a 74% mobile phone penetration rate and 61% household PC ownership in
the homes. There are more than 950,000 broadband users in Singapore and increasing
competition in the broadband market has brought prices down by as much as 70% for unlimited
access plans since 2001.
Broadband and emerging home networking technologies have given rise to a range of home
applications that goes beyond plain Internet surfing, such as sharing of resources for SOHOs
(Small Office, Home Office), automation and control of home appliances and delivery of
entertainment content through various electronic devices.
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As the market progresses, advancement in bandwidth-demanding services, home network and
the convergence of data, voice, audio and video will drive demand for integrated end-to-end
solutions for homes.
Today, a high-speed broadband network is an essential infrastructure for economic development,

investment and talent attraction, education and a host of other activities. Singapore came up with
the Intelligent Nation 2015 Masterplan which aims to provide ultra high-speed broadband network
of up to 1 Gbps, and also a nation-wide wireless broadband network within 10 years.
In today’s market, there are various technologies offered to provide wireless broadband access
(WBA) service operating in both licensed and licensed-exempt frequency bands. Generally, WBA
can be divided into fixed WBA and mobile WBA.
The leading fixed WBA technology today is the IEEE 802.16-2004 endorsed by the World
Interoperability for Microwave Access Forum (WiMAX). The IEEE 802.16-2004 is a fixed WBA
system which employs a point-to-multipoint (PMP) architecture. Other fixed WBA offerings
include proprietary technologies such as those developed by SOMA Networks. SOMA Networks’
innovations cover a wide range of areas including limited interference wireless modems, radio
resource management, radio frequency technologies, PSTN voice engineering and operating
systems.
As for mobile WBA, it can be used to deliver both fixed and mobile broadband services. The
leading companies involved in developing mobile WBA technologies are ArrayComm (iBurst),
Flarion Technologies, IPWireless, Navini and Samsung. The four primary groups working on a
mobile wireless broadband standard are UMTS-TDD, 1 x EVDO, WiMAX (802.16e) and 802.20
(MobileFi).
Combining home-networking with the internet will result in what we call a smart home. A smart
home is a system whereby users can have access to the server at home even when they are
outside. These servers can be linked to various appliances such as washing machine, television,
air-con, lighting system etc. Information is key-coded from the user’s mobile phone/wireless
system to the receiver at home and users only need to use the portable remote control such as
their mobile phones to work the appliances. Countries which are now using this technology are
United States and Japan. The Infocomm Development Authority of Singapore (IDA) has
th
announced the Connected Homes Programme on 11 April 2002, which aims to test the potential
of the industry to develop and also to provide integrated end-to-end solutions for the homes and
the community.
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6.2 Business Case Justification
Market Survey Refer to Appendix B
We have conducted a survey to find out if there is potential market for our Inhome package. The
survey is constructed in a way to explore consumers’ attitude towards living in a smart home, and
also to provide some insights to the future demand for Inhome. Since the idea of smart home is
still very new and the pricing has not been clearly developed in the market, our survey hence
focuses on the underlying attitudes of the consumers and their interest towards new technology
at home.
The main objectives of the survey are:

• to access views about the key features of a smart home
• to identify concerns about living in a smart home
• to assess the level of interest in the smart home concept and to determine if people would
want to live in one
• to identify what types of consumers are the most and least likely to want a smart home
This survey is done mainly through the internet. Our sample size is a mix of people from different
backgrounds, and age group.
The survey was conducted with 300 respondents and the results are shown on the following
pages.
The first part of the survey (questions 2 to 6) aims at finding out the public’s general attitude
towards new technology. More than half of the respondents (63%) agreed that they welcome
new technology. Also, 52% of the respondents indicated that having more gadgets at home will
make life more fun. However, around half (46%) of the respondents are finding it difficult to keep
up with the latest technology, and 49% are concerned about how difficult the new technology will
be to use. It is positive to note that only a small handful (26%) of respondents felt that they do not
need any more technology in their homes. Among the respondents who showed positive attitude
towards new technology, the majority (69%) are from the age group 20-35 years old. Those that
are above 46 years old are the ones showing more concern regarding new technology as they
might be too complex.
The second part of the survey (questions 7 to 11) aims at finding out the public’s general views
about the smart home. The four questions are referring to remote access, safety & security,
entertainment, centralized control and convenience respectively. Among these five features of
the smart home, the respondents value safety & security (67%) and entertainment (65%) the
most. Having remote access (61%) is also popular among the respondents. As for centralized
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control (53%) and convenience (50%), around half of the respondents indicated that it will be
beneficial to them. The people most likely to value the benefits of smart home are those that are
aged 26-45, working and also have access to new technology (PC, DVD players, home
entertainment system etc).
The third part of the survey (questions 12 to 14) aims at finding out the concerns about smart
home technology. Questions 12 to 14 are referring to ‘system failure’, ‘lack of control’ and
‘complexity’ respectively. The problem that the respondents are most concerned about is ‘system
failure’, with 67% of them agreeing to the statement. Around half (53%) are worried that the
system would be too complex and a similar number (55%) worry about the system being difficult
to override.
The final part of the survey (questions 15 to 18) aims at finding out how interested the
respondents are in living in a smart home. The four questions are designed to assess their
current level of interest (questions 15 to 16) in the concept and their views about the future
(questions 17 to 18). The results show that more than half the people (55%) would buy smart
home technology if cost wasn’t an issue. The majority (52%) also indicated that they are
interested in the functions a smart home can offer. On top of that, around half of the people
(51%) said that they would see themselves living in a smart home in ten years’ time, and a similar
number (52%) reflected that they would want to move into a smart home should they move home.
Hence the results show that the current and future market for smart home technology is quite
positive.
6.2.2 Market Analysis
1) Current trends of the smart home market
Currently, smart homes are not the norm in the housing market. However, the signs are
encouraging. The percentage of households with home networking has grown from 9% (USA)
and 5% (Singapore) in 2002 to 12% (USA) and 8% (Singapore) in 2003. More tellingly, the sale of
wireless access points in Singapore has rose from US$4.5 million in 2003 toUS$6.5 million in
2004. Based on data from IDA Singapore, the smart home industry is expected to grow from
US$2.2 billion in 2002 into a US$9 billion dollar industry in 2006.
The 2 key enablers of smart home adoption are wireless connectivity and broadband technology.
Broadband technology will connect people’s homes to their communities and allow access to
information and entertainment services previously unattainable. Recent developments in wireless
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connectivity will allow seamless integration between the different devices and add to the
functionality, ease of use, convenience and cost –effectiveness of smart home solutions.
2) Reasons for slow growth
Reasons for the Slow Growth in the Smart Home Industry

Currently, there is no mass market for smart home solutions. Below are some of the possible
reasons:
1. There is little or poor understanding of user needs on the part of suppliers as they adopted a
narrow technology- push approach.
2. Potential customers have little information about potential benefits and have fears about issues
such as systems operations, failures, loss of privacy and other ethical issues. In other words,
potential customers are ignorant or skeptical about potential benefits.
3. There is little standardization across industries and countries and the development of common
protocols to facilitate interoperability has been slow.
4. The cost of equipment and systems are too expensive to be affordable in low – cost housing
5. Unacceptably complicated user control and difficult to understand user interface.
6. No one – stop – shop providing a full range of bundled products and services
S – Curve of New Technology Adoption

There is a standard pattern to the adoption of new consumer products – the so – called ‘S –
curve’. The chart below demonstrates how ownership of different consumer technologies has
changed over time. The graph illustrates that most technologies appear to follow an ‘S – curve’
pattern of technology adoption. This is characterized by a slow take – up in the early years,
followed by a more rapid increase in adoption which moves the product into the mass market
arena. Finally, as the market matures and take – up slows, the gradient of the S – curve become
more gentle as it approaches a maximum level of penetration. While most technologies follow the
S-curve pattern of adoption, they do so at varying rates (i.e. the S-curve varies in steepness and
shape). For example, the telephone took over 50 years to reach 80 per cent of households yet
the television took only 15 years. Similarly, the dishwasher has only reached 24 per cent market
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penetration after being in the marketplace for over 20 years, whereas the microwave has reached
almost 80 per cent penetration over a similar period.
Factors that affect take-up

A range of factors influence the take-up of new technologies as follows:
1 Economic
• price and availability
• income levels
• consumer spending levels
2 Social
• patterns of work and leisure
• gender roles
3 Consumer
• attitudes towards new technology
• needs and wants
• confidence in new technology
4 Technological
• degree of innovation
• development of competing and
complementary technologies
5 Global/political
• environmental concerns
• world events
• economic and social policies.
These factors work together to determine the final shape of the adoption curve. For instance,
rising standards of living and the increasing participation of women in the workplace were two of
the key drivers which led to the mass market adoption of labour-saving technologies (e.g.
washing machines, microwaves, etc) in the 1970s and 1980s. Rising levels of wealth have also
led to demand for more comfort in the home; over 90 per cent of households now have central
heating. Consumer attitudes towards new technologies are also important in determining
adoption. In general, consumers have become more accepting and less wary of new technology
in recent years and this has led to steeper adoption curves for newer technologies (e.g. CD
players, video recorders and mobile phones). In short, the more familiar the technology and its
use, the quicker its likely take-up. For example, the rate of adoption of colour TV, which was an
incremental improvement on the popular black and white model, was much more rapid compared
to that of the PC, where few predecessor technologies existed. It has taken 15 years for PC
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ownership to rise from 9 per cent to 45 per cent, whereas ownership of colour TV rose by a
similar level (6 per cent to 44 per cent) in only five years.
The pace of adoption is also heavily dependent on the degree to which consumers feel they need
or want the technology in question – and this is something that changes rapidly over time.
Microwaves were once seen as a luxury item but are now considered, by many, to be a necessity.
Dishwashers on the other hand are taking longer to become mass - market items. This may
reflect in part the fact that consumers still regard them as a luxury item or perhaps that many
consumers don’t have room for a dishwasher in the kitchen!
This may bode well for the adoption of Smart Home technology. Although Smart
Homes are innovative, most of their components – i.e. the household devices and appliances are
familiar. In addition, the concept of SOHO has become widely accepted and adopted. The above
factors should make the concept of smart home easier for consumers to understand and, hence,
could make them more willing to purchase.
Our new product and people’s view of it

FAQs Most Likely Asked by Consumers
Will we need to dig up our streets and disrupt the inside of our houses to make way for new
cabling?
Who will supply the technology, how will it be installed, who will maintain and update it?
Will Smart Home technologies be easy to use? Are Smart Home technologies likely to be
dangerous or stressful to use?
Will there be adequate support and backup if systems do not function properly?
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7. Competition’s Analysis
When our products take off, we will be most likely be facing potential competition from a number
of companies each specializing in different fields. The fields are categorized into solution
developers, home entertainment and home automation & control, security & surveillance.
7.1 Solution Developers:
CCH Construction System CCH is a progressing System Integrator and Solution Provider
Pte Ltd doing specialist service in the design, installation and
maintenance of security, surveillance and building automation
services.
PowerMax (Smart home security and control system) enables

users to secure their homes conveniently and manage all the
systems in their homes or offices, from lighting to air-conditioning
and appliances. It has intrusion detection with early alerts of
smoke, gas and flooding. Users can control their smart home or
smart office through a user-friendly keypad, or any phone.
CCH also has wrist-worn transmitter and fall/distress detector to

cater to elderly or sick people. The features include fall detection
monitoring, daily health reminders and notification of family
members in an emergency situation.
NCS Pte Ltd NCS is a principal IT solutions provider to the Singapore
government in the computerization of the Singapore public
administration. It is now a wholly-owned subsidiary of Singtel.
NCS Smart home comprises of Integrated Property Security

(IPS), Property Management Systems (PMS), Home Automation
System (HAS), Infotainment and Community Portal (ICP), and
Small Office/Home Office (SOHO).
IPS comprises of vehicle parking management, fire alarm system,

electronic access control systems, audio/video intercom access
system, closed circuit television and motion detection system.
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PMS comprises of IC smart card management system, account
and payable system and intranet email and management report
system.
HAS enables users to perform remote automation control. All

commands and controls to the respective smart home devices
are passed through the SMS/MMS messaging system.
IPS allows residents to experience network game, music on

demand and interactive Tv. The community portal system
provides services such as food catering and laundry cleaning.
SOHO allows residents to enjoy high-speed connectivity through

a simple WiFi (wireless LAN). There is also integrated
fax/email/voice over IP.
7.2 Home Entertainment:
Pinnacle Systems Pinnacle Systems provides digital non-linear media creation,

management, and distribution solutions for film, audio, video,
animation, games and broadcast industries.
The ShowCentre enables users to easily stream music, photos

and movies currently stored on the PC to TVs and stereo systems
elsewhere in the home. The ShowCentre can be connected to
the PC or home network with a wired or wireless connection with
the integrated 802.11g wireless support.
D-Link International Pte Ltd D-Link is a world leading supplier of network equipment. The
company designs, manufactures and markets broadband,
wireless, Voice over Internet (VoIP), digital home and office
network equipment.
D-Link’s wireless media player supports 802.11g wireless

standards with a maximum wireless signal rate up to 54 Mbps. It
allows users to access media content stored on the PC, browse
music files, watch videos and display photos all on the Tv.
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7.3 Home Automation & Control, Security & Surveillance:
Legrand Pte Ltd Legrand specializes in products and systems for electrical
installations and information networks in residential, commercial
and industrial premises.
In One by Legrand is a home automation solution designed

specifically for the home. Some of the features of In One are:
• occupancy sensors that will automatically switch on/off the
lights as the user enters or leaves the room
• scene controller to activate up to 4 scenes. A scene is a
predetermined group of actions comprising of lights on/off,
dim up/down, curtain up/down, and air-con on/off.
• Intelligent switches to control lighting from any room or any
remote control
Universal Gateway Universal Gateway International group is a leading technology
International Pte Ltd and distribution company that uses internet protocol (ip)
convergence technology to create customized digital environment
for customers. Unihome is a project by UGI and includes the
following features:
• Remote monitoring and surveillance of home via internet
• Intrusion alert via SMS/MMS/Email
• Secured-access connectivity system
• Internet phone through SIP (Session Initiation Protocol)
technology
• Media entertainment centre which stores, plays and records
rich media. Also enables remote recording via mobile phone
• Centralized platform which is accessible through the internet,
and enables users to manage, control security, estate and
personal services
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8. SWOT Analysis
Strengths Weaknesses
- strong financial resources as In – Home is a - as In – Home is a new company, consumers
collaboration between 2 established companies are unfamiliar with its brand image and In -
CISCO Systems (a Fortune 100 company) and home lacks the brand loyalty and brand
Smart Home familiarity which established companies have
- extensive R & D resources in terms of

engineers and research institutes
- distribution channels in over 130 countries

due to CISCO’s presence in these countries
Opportunities Threats
- While there are many companies offering - Tech companies like IBM have also formed
smart home solutions around, there is currently smart home labs and started developing their
no clear leader in the smart home industry and competency in intelligent home technology
there is a huge potential for growth in this
industry. If In - Home is able to capitalize on
this new technology wave, it will stand itself in
good stead.
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9. Market Segmentation
Our target markets are divided into both the business market and the consumer market.
9.1 Business market
For the business market, we will be targeting property developers (condominium, apartments,
landed properties) such as Keppel Land, Centrepoint, City Developments Limited and Far East
Organisation etc.
In phase 1 of our joint venture, we will spearhead the launch of our product in the business sector
via a joint collaboration with condominium developers such as Keppel Land, to create the first “In-
Condo” in Singapore. This will feature an automated condominium that makes use of our Inhome
system. (More detail will be revealed in the promotional section)
We hope to expand our range to apartments, landed properties, and eventually the HDB flats in
the future.
9.2 Consumer market
In phase 1, our target market is that of the innovators/early adopters group. They mainly consist
of people belonging to age group of within 20 to 50 years old. They are IT-literate and do not
mind trying out new ideas.
We further segment them into two groups – Yuppies and Middle/High Income Age Group.
The yuppies are the group of people who are aged between 20 to 26 years old and are into
technology and lifestyle. The yuppies are those that are keeping up with technology and are
adventurous in trying out new ideas and products. They would most probably welcome the smart
home technology. Since the yuppies are still young and most probably will be earning a lower
income ($2000 to $4500), we will be promoting to them the lower and middle end of our product
packages.
As for the middle/high income age group (above $4500), we are targeting those that are self-
employed and can afford their own homes. The group is further segmented into the adults group
(27 to 35 years old) and middle aged group (36 to 50 years old). The adults are those who are
IT-literate, have their own family or are into digital entertainment. Those who wish to set up Small
Office Home Office (SOHO) would find our products beneficial as it provides them with
communication and convenience. Those that are into digital entertainment would be interested in
our In Home multimedia package as it provides them with a whole new digital experience. The
middle aged adults are the ones earning a higher income, are into luxurious lifestyle or those
having elderly at home. They are more willing to spend on luxurious goods and are able to afford
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our higher end In Home packages which are a boast of their social status. We are also targeting
those who have elderly, sick or disabled at home who placed health care as their priority. The In
Home health care package would be able to provide them with more peace at mind as well as
emergency relief when the elderly, sick or disabled are left at home alone.
In phase 2, we will shift into adopting a mass-market strategy, thereby lowering prices to make it
affordable to the masses. We will have specific products looking into the various needs of the
families of different lifestyle, namely the SOHO users, the nuclear families, and the large
traditional families.
9.3 Overseas Expansion
When our products take off up in phase 2 and/or phase 3, they will have already been free of
major bugs. Henceforth, our future plan will be to venture into overseas market. First of which, we
will tap into the U.S. residential market. We had decided not to go into the U.S. market mainly due
to the logistical problems that the size of the country will bring. Thereby, after we test bed our
products in Singapore, and rectified most of the pressing concerns and technical issues, we will
be ready to expand it overseas.
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10. Marketing Strategy
10.1 Objectives
The objectives of our marketing strategy are as follows:
1. To position our company as the dominant leader in the smart home industry both in terms of
market share and R & D.
2. To position our brand as a one – stop – solution providing a full range of bundled products and
services
3. To position our product as innovative, user – friendly and secure.
The pace of technological is rapid and so are the lifestyles and demands for new functions within
the homes are changing equally fast. Once the potential benefits of Smart Home are proven, it is
more likely that more people will be prepared to purchase them – in a similar way to investment in
electricity or central heating earlier this century.
Many people have not heard of Smart Homes. In addition, a large proportion of those who are
familiar with the term are likely to have a poor idea of what it means.
Our main goal is to improve the quality of life at home and reduce costs in use.
Our products are inexpensive, easy – to – install, simple – to – operate. Moreover, our products
are modular, expandable and upgradeable and they operate on an open infrastructure with
simple user interfaces and communication protocols.
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10.2 Three Core Principles behind our Marketing Efforts
The 3 core principles that our company will adopt are as follows
1. Operational excellence – Operational excellence amounts to offering middle – of – the –

market products at the best price with the least convenience. Under this strategy, the proposition
to the customer is simple: low price or hassle – free service or both.
2. Product leadership – This part of our strategy concentrates on offering that push performance
boundaries. In other words, the basic premise of this strategy is that customers receive the best
product. In order to be a product leader, we have to build our proposition by continually innovate
our products and better our products performance.
3. Customer intimacy – The customer intimacy strategy focuses not on what the market wants but
on what customers want. Following this strategy, we do not pursue one – time transactions
instead, we cultivate long – term relationships with our customers. We specialize in satisfying
customer unique needs which are recognize through a close relationship with and intimate
knowledge of the customer. The underlying proposition of this strategy is: we have the best
solution for you and provide all the support you need to achieve optimum results.
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10.3 Key problems faced
Key Problem faced by Technology Suppliers

A common problem amongst technology suppliers is that they fail to take into account the user –
friendliness of their products. Cumbersome user interfaces and difficult to use design have
proved to be the failing of many products and companies. Motorola lost its dominant market share
of the mobile phone industry to Nokia as users perceive the latter’s products as being more user–
friendly. As such, the emphasis of marketing communications should be placed on functionality
rather than technical features in order to sell our products. Potential customers are more likely to
be interested in the improvements to their daily lives offered by our products rather than detailed
specifications. Similarly, the widespread adoption of our smart home solutions will depend largely
on its user – friendliness.
Key Experiences Gleaned from Trials by Competitors

As our company has no prior experience in the smart home industry in Singapore, it will be useful
to examine the experiences of other companies in Singapore. NCS has completed trials of smart
home solutions in 10 different condominiums and below are their experiences from the trials and
our proposed solutions to the problems.
1. Timeliness of product – Current latest technology will become mature technology at time of
purchase
Solution: The lifespan of products will be prolonged through software and firmware upgrades. As
our smart home solution is integrated with the internet, users will automatically received software
and firmware updates from our servers. This will be similar to the operating system patches
released by Microsoft. In addition, our continual investment in R & D will allow us to adapt new
technology in our new products.
2. Customer Lifestyle – The needs of individual homes vary and they are largely dependent on
the brand preference of the consumers and how price – sensitive they are.
Solution: The key feature which distinguishes our smart home solution from yesteryear’s smart
homes will be the modular nature of the technology. As our products are designed with Internet
standards in mind, customers can start out with just a few devices and build up slowly.
3. Appliances Readiness – The interoperability issue between devices from different

manufacturers are preventing the widespread adoption of smart home technology.
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Solution: This problem will be solved by the use of IEEE radio frequency protocols that have
become common standards of the industry.
4. Differentiating factor – Solutions offered by NCS have little or marginal differentiation from
competitors making it hard for NCS to position itself as a dominant leader in the smart home
industry.
Solution: We will differentiate our product through our customer – centric approach towards smart
home solutions.
A typical new product normally has 5 different phases in its product life cycle. However, based on
consumer attitudes and information collected from our marketing research, we have decided to
launch our product in 3 different phases. In order to plan our marketing strategy and have a
greater clarity of the marketing objectives in each phase, we have come up with a table as shown
below:
10.4 Product Development table
Product Pre– launch Phase 1 Phase 2 Phase 3

Early Late Early Late
Product -Generic use without - Content Specific - Personalized system
Features going into specific / - Meeting the demands of - Tailored to individual
exclusive benefits more exclusive group household’s needs and
- Basic and standard - Adaptable to a wide range demands
package of dwelling systems - Advanced Package
- Intermediate Package
Marketing Gain awareness of our Stress Maintain brand loyalty Harvesting

Objective company and our differentiation deletion
products
Topology of Innovators Early Adopter Early Late Majority Laggards

New users Majority
Targeted
Product Life Product Market Introduction Market Growth Market Maturity Sales Decline
Cycle development
Duration 7 months 2 years 3 years 1 years
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10.5 Overview of the 3 different phases
Pre launch – We will be concerned with developing and beta – testing of our products
and user inputs are critical in this phase. Involving real users in the design of our smart home
solution and in the evaluation process is critical to the development of our smart home solutions.
Involving users ensure there is an appropriate analysis of their requirements and design solutions.
The key proposition to customers is user – centered development and implementation of our
smart home solutions. Expert advice will be needed to help users understand what is possible.
However, specifications of the product must be derived from functional needs identified by users,
not only from technological possibilities, if consumer confidence is to grow. Furthermore, user
participation also promotes a sense of ownership, commitment and understanding of the design
solutions. Failure to involve users can lead to products and services which are poorly matched to
their requirements, and which seriously under-perform from a user perspective. In the long run
this is likely to result in persistent disappointment with new technologies and financial costs
arising from poor market take-up.
Phase 1 – In this introductory stage, our marketing campaign goes into full steam, with
aggressive promotions and media advertisements. Our products will be introduced at a higher
initial price, as part of a skimming strategy that will enable us to recover the costs of development
as well as capitalize on the price insensitivity of early buyers. Our primary aim is to reach out to
as many consumers as possible (create consumer awareness) and stimulate primary demand by
selling first to the techies (technophiles keen to try a new innovation), thus gaining a competitive
advantage in this market. In this stage, we will offer basic products features which customers will
find most useful. Customer will be acquired by promoting functionality and the potential benefits
of our product. In other words, the value proposition to the customer is the offer of a superior
product backed by excellent service and after – sales support. Profit margins will not be huge as
sales are not expected to take off in this phase. Here, our marketing strategy in here is
considered successful as long as potential customers are informed about the advantages and
uses of the new product concept.
Early Phase 2 – Trialability and observability is of particular importance in this phase as early
adopters do not usually have peers to ask for advice. If individuals can try a product or can
observe the way it works and benefits their lives, they are more likely to adopt it. As such, our
marketing strategy will focus on allowing potential customers to try our smart home solutions. In
this phase, the number of sales is projected to increase because of a higher demand and greater
consumer confidence. More profits can be expected initially, associated with the higher revenue.
And since the smart home market still has plenty of potential for growth, this also means that our
nearest competitors will be attracted to come up with a similar product offering. Thus even as
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demand for our smart home solutions, sales revenue and thus profits would eventually fall, as the
industry supply increases with more competitors entering the market. Consequently, the demand
for our phones might fall, with people switching to these competitive products. Hence, it becomes
important to differentiate our smart home solution from our competitors’ products. More advanced
features of our product will introduced and upgrades to the current products based on customers’
feedback will be made available. In addition to position our product as a product leader,
advertising and promotion efforts would shift towards stimulating selective demand in which
product benefits are compared with those of competitors’ offerings to gain market share.
Phase 2 & Early Phase 3 - When the market maturity stage is reached, we expect industry sales
to level off, with fierce competition faced from other companies. Companies are basically
competing to increase their volume of sale and gain a larger market share. This usually comes in
the form of non-price competition, like engaging in R&D to improve the product design as well as
using extensive advertising to accentuate product differentiation. Therefore prices of the smart
home solutions would still remain relatively stable. The task at hand henceforth is for us to defend
our market share to prevent erosion of sales and profit. In order to maintain our competitive
advantage, we will continue to differentiate our product from our competitor models and
simultaneously tweak our product offering based on customer’s feedback. Furthermore, our
advertising strategy will now focus on sustaining product credibility and stability so as to retain
customer loyalty, and hence market share. Providing better after-sales service/ technical support
will also be emphasized. At the same time, we will also reduce our overall marketing cost by
improving promotional and distribution efficiency.
Phase 3 - The decline stage occurs when sales and profit begin to drop. Harvesting strategy will
be adopted here whereby we will retain our smart home products but reduce marketing cost while
still maintaining the ability to meet customer requests. The company’s main objective in this
phase will be to clear the inventories that are still available at hand. Herein, we may shift our
advertising focus to target the laggards, who are conservative buyers that are slow to try new
ideas. This will help to reduce the sales decline.
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11. Marketing Mix : 4 Ps
11.1 Product Strategy
Objective :
- To revolutionize living
11.1.1 Breakdown of products
Products offered Existing Features

Home Cupboards Lifters Adjustable to height
appliances Sinks Lifters Automated and controllable wirelessly
Windows
Curtains and Blinds
Healthcare Wearable sensor Communicate details to controller and hospital

(In-Health) Monitor condition of wearer
Multimedia Multi-room connectivity On demand streaming from any computer

Digital Distribution Center Supports video, music and pictures
VOIP Video Phones Able to view the video image of caller
Security Biometric Door Fingerprint Recognition

Remote Surveillance Wireless colour camera
Fire Security Smoke/ Gas Detector
Anti break-in sensors Smart motion sensors, Windows and doors
sensors
Firewall from CISCO To protect against intrusion of home network
** Note the basic package (highlighted in yellow)
11.1.2 Packaging Features
1. Stores, extend shelf-life

2. Protects product during transit and prior to consumption, ensure consistent quality
3. Facilitates use of product
4. Creates image of product
5. Promote product, eye-catching
6. Eco-friendly
There will also be a simple, and easy-to-learn manual included in the package.
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11.1.3 Branding
In many ways, our name, “Inhome” represents us well. “Inhome” not only means trendy and
fashionable, but also innovativeness. Our products are offspring of the many creative ideas
targeted at improving our lives.
Furthermore, “in” also stands for integration. Our controllers are specifically designed to be
highly-compatible and customizable. We also have technical engineers who constantly update
the drivers of our devices/controllers to ensure that we leave no bug unsolved.
In addition, “In” represents interconnectivity. Imagine a house where by every component is

interconnected by a seamless network. Transfer of information from one device to the other is as
simple as a touch of a button or a click of a mouse. You can now realize this dream !
Our products are specially designed to be user-friendly and interactive. We make sure that our
consumers are spared of any technical jargon. Anyone will be capable of operating our system
via our unique user-friendly interface that displays graphical icons which is easy to understand
and use.
“Inhome” is also intelligent. Our system is able to be configured and customized to the user’s
setting, creating the most ideal environment for the occasion. For example, we have body
temperature sensor technology which would automatically regulate air conditioning and heating
systems according to the occupant’s changing needs. More importantly, we have a light control
software which helps simplify and saves the light usage in your home, making sure that no
excess energy is wasted.
“Inhome” promises stylish and elegant living. Everything is at your fingertips; you no longer have
to be worried about mundane and troublesome tasks like closing the windows when it rains, or
locking your door when you step out of you house ! We use the latest information and
communication technology to link up all the mechanical and digital devices available to create a
truly interactive, innovative, and integrated home!
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11.1.4 Delivery and installation charges
Delivery and installation charges will be waiver as long as a bundle package is purchased.
Should any buyer wish to purchase a separate modular device, we will order for them from either
of our parent companies.
Phase 1: Basic Package
Phase 2 and 3: Add-ons
11.1.5 Support Services
We aim to portray ourselves as a company which engineers innovative products with a user –
centric approach. Henceforth, after-sales follow up is important.
Toll-free telephone customer service hotline

In line with our position as user – centric company, we will set up a 24 – hour customer service
hotline. The purpose of the hotline is to answer potential customers’ enquiries on our product and
to help existing customers should they encounter any problems with our products.
Internet technical helpdesk

As most of our customers are likely to be technology – savvy, we will create an email account to
address any technical problems they may faced with our products. Moreover, there will be a
section of our website dedicated to technical questions frequently asked by customers. This is
similar to Dell’s strategy of using the internet as important channel of communication with
customers.
Warranty
As with most electronic products, all our products will come with a 5 – year warranty. However,
our 5 – year warranty will include both on – site servicing and replacement for faulty parts. This
on – site servicing is important in gaining potential customers’ confidence as any faults in our
products might lead to inconvenience and disruption to customers’ lifestyle.
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11.2 Pricing Strategy
11.2.1 Factors Affecting Pricing
1. Cost of production
a) Fixed costs, ie rental costs such as purchase of machineries, executive salaries, research
costs and advertising costs, etc.
b) Variable costs, ie costs of materials, labour costs, sales commissions, etc. Due to the many
existing modular devices already available on the market belonging to our SMARTHOME
company franchise, the bulk of the development costs will be devoted mainly to integrating the
devices together and further research on innovative and more advanced products which will be
scheduled for release in the later stages.
With regards to the various devices/functions of our Inhome units, we can tap on SMARTHOME’s
existing technology and expertise, while the part on networking aspect CISCO can offer its
expertise.
Hence, the cost of production will be kept minimal, as both companies are already equipped with
the necessary assets to venture on this project.
2. Competition from rival companies

Competition from rival companies will toughen in phase 2/3, and in order to make it affordable for
the masses, prices need to be low.
3. Market situation
The market for smarthomes related products is generally quite new in Singapore.
4. Distribution
The 2 factors affecting pricing, related to distribution are the nature of our placement, and the
crowd that frequents our placement location,
5. Image of Product
Premium product commands a higher price.
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11.2.2 Pricing Objectives
Our pricing objectives are targeted at first to recover part of our development costs at the same
time portraying a premium image (phase 1), after which it will be changed to increasing sales
revenue, late phase 2 and phase 2 and 3), leading to increase in market share and profit.
11.2.3 Competition Analysis
Since home automation system is generally quite a new idea in the local residential market, and
given its innovativeness, it will create a kind of niche market when it is introduced initially. In our
growth stage, ie phase 1 and early phase 2, we expect to face stiff competition from companies
trying to copy our ideas by coming out with similar products.
Out of which the only ones who will pose a significant threat to our share of the pie, are those
having large resources and well-established and funded research teams. These determining
factors imply that the entry barrier for this market is a high one.
11.2.4 Demand Analysis
According to the research done by the marketing department, innovators and early-adopters are
insensitive to the price. Henceforth, we can conclude that the demand curve for smarthome-
related products is relatively inelastic for innovators and early adopters.
Apart from relying on the proliferation of broadband services and the high penetration rate of PC
usage in Singapore, other trend that will affect the demand of Inhome products include the high
standard of living and the increasing trend of Small Office Home Office (SOHO) users.
We have also considered that trend of aging population in Singapore in our development of our
product, thereby realizing the importance of the healthcare aspects. This will be our main driving
force for the masses to take up our technology. Low cost would be another pertinent factor in
persuading the masses to adopt our new technology. It can be seen that 40% of the respondents
would purchase the product if it was cheap. (Appendix B: Survey results)
We will adopt the skimming strategy in the first phase of the product lifecycle so as to recoup part
of our initial investment. Market research has shown that customers whom are targeting in this
phase, ie innovators tend to be less price-sensitive. Moreover, setting a higher initial price will
give potential customers the impression that they are buying a premium product from a branded
firm.
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In the 2nd and 3rd phase, we will adopt a competitive market strategy by increasing our product
and service benefits while lowering our price. In this phase, we expect to face stiff competition.
This strategy is to target customers who are more price-sensitive and maximize our profits.
11.3 Placement Strategies (Distribution)
11.3.1 Direct Sales

ShowRooms
We plan to setup our main outlet in Suntec City which specially displays all our whole range of
Inhome products. Suntec City is ideal because it is situated in the heart of Singapore, and hence
accessible. Furthermore, it is a place whereby consumers of our target market groups, ie the
yuppies and middle-aged higher income working group, is likely to patronize.
In this outlet, we will be mainly be selling our modular devices. We will have sales personal
situated there to assist any interested customer.
There will also be a branch outlet situated in Ikea as well. There, we will mainly target those who
are shopping for furniture to fill their new homes.
11.3.2 Internet Sales

Recognizing the e-commerce capability of the internet, we will harness it to provide a more
convenient and fast means for ordering our products.
In our main website, we will display our products in the form of picture files, accompanied by
description of its features and technical specifications for those who are interested. Also, we will
be making videos, that clearly explain how smarthome functions, available for downloads and/or
streaming viewing. This website will be linked to the CISCO and SMARTHOME main website.
There will be an online technical helpdesk which is to assist users in tackling any problems that
they should encounter. Forums and guestbooks will also be placed in order to gather feedback
from the users or address any concerns that consumers may have before buying our products.
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11.4 Promotional Strategies
Advertising: Sales promotion

Phase 1:
- Aim at targeting
1. Middle-age high income working group
2. Yuppies (lifestyle)
Phase 2 and 3:
- Aim at targeting mass market
11.4.1 Pre-launch: Product Development

- To develop and test-run our product
In this stage, pioneering (institutional) advertisements or teasers will be shown on mainly the print
media, namely The Straits Times. We will also be placing our advertisements in technology
magazines such as the HWM (Hardware Magazine). These advertisements, coupled with
exclusive interviews with the media to create awareness amongst the public regarding our
innovation, will serve to generate curiosity and interest in our project. At the same time, we will
install our beta-version systems in an eclectic mix of residential units. This is aimed at rectifying
any problems or bugs that might surface during the initial testing to prevent minimal hiccups after
our launch.
We will produce a few short documentaries about our project and feature them in strategically
selected media, such as Digital life segment of the Straits Time and frequently visited IT websites
like Cnet Asia. This is specially targeted at the innovators and early adopters who have a keen
interest in our project to get to know about it in greater detail.
Meanwhile, we will release the specifications and features of our home automation system in our
website and provide succinct explanation of how our system works; making sure that it makes
sense to the layman. In there, pictures and flash videos will be available to demonstrate/simulate
the fully-automated home. There will also be an online technical helpdesk to answer any enquires
or doubts about our products.
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11.4.2 Phase 1 : Market Introduction
- To officially launch our product
- To generate awareness
Target: Innovators
This is the introductory phase whereby we officially launch the product into the local residential
market scene. In this phase, our marketing campaign goes into full steam, with aggressive
promotions and media advertisements.
The promotional strategy in this stage is opportunity-based.

It will mainly focus on providing prospective customers information to assist them in the
purchasing process. We plan to incorporate this process of “educating” the public through a
series of entertaining and informative format which reinforces our company’s image.
Product Launch
The Smart home system will officially be launched in Singapore via an exhibition.
This will be a week’s program whereby there will be an ongoing exhibition at the Singapore Expo
Hall to showcase the various features that our system can offer.
Objectives
Through this launch, we hope to
1. Officially launch our product
2. To emphasize on the 4 key points of our system, namely, security, healthcare,
multimedia, and home appliances.
3. To inform and educate the public the usefulness of our system
4. To start generating publicity and creating awareness which is the first step to building a
sound brand name for our product.
Theme : My Intelligent home

This will be our marketing tagline which outlines the crux of our product. Firstly, it represents the
ease of the controls to our house. Secondly, it signifies the automated features that the Inhome is
capable of. Also, the short and elegant phase suggests the uncomplicated and user-friendly
process involved in operating our system.
There will be booths setup with these objectives in mind:

1. To display prototype Inhome allowing people to see firsthand the benefits that the system
delivers.
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2. To distribute brochures, pamphlets and printed information to allow interested consumers
to know more, and in-depth about our products.
3. There will be personnel around to ask any doubts that the brochures fail to answer.
4. Introduce to the public “In-Condo”
Furthermore a lucky draw will be held of which the winner will take away a digital distribution
center, a product which can act as a stand-alone multimedia player, or with the full range of
multimedia components that we offer, integrate into a seamless network of entertainment.
Other Marketing efforts :

Road Shows
There will be ongoing Road Shows in certain “hotspots” in Singapore, such as Shenton way,
Suntec City and Orchard Roads. These places are most frequently patronized by higher-middle
income people of ages from teenage to middle-age. We believe that road shows are ideal for
reaching out to the masses and these 3 locations are ideal as they are often crowded with people.
Interactive contests and lucky draws will take place during these road shows and winners stand
to win our products.
These 5 road shows will be held on Saturdays. Information will be publicize in the Newspaper
Advertisements and Radio advertisements. We will also be hosting our 2 main road shows in
Orchard and Suntec City through Power98FM.
Print Media
Full-page ads will be placed in The Straits Times, and HWM magazine. In conjunction, we will be
arranging for interviews / exclusive coverage from the IT magazines to showcase our products
and explain their benefits.
In addition, we will be publishing a monthly newsletter, which will be distributed free at our Suntec
City Showroom (refer to placement), our In-Condo showrooms, and also mailed to our existing
consumers. This magazine will have the latest information of any new products that we plan to
release. It will also contain articles from users of our products.
Mass media
There will be advertisements placed also in-between television advertisements. These will be
short advertisements which show the ease of use of our products and also our innovativeness
with a touch of light-hearted comedy. The advertisements will be shown regularly so that the
masses will remember our brand name and associate it with reliability and user-centricity.
There will also be radio advertisements will be broadcasted on air in the CLASS95.0FM,
(MediaCorp) targeted at the English-speaking population, and YES93.3FM, (MediaCorp) for the
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Chinese-speaking population. These two channels are amongst the more popular radio channels
in Singapore.
Internet Promotion
We will be officially launching our website, “www.inhome.com”. In this website, we will provide
essential information related to our products and services, such as our contact, technical
helpdesk, product descriptions, features, and prices. It will be a one-stop place whereby
consumers can find everything they need to start up a Inhome.
This website will be heavily promoted in the internet, with links present in major IT, and
residential-related websites in Singapore, such as CNET asia. Our e-banners will also be hosted
in the popular goggle search engine.
Our products can be ordered online by simply filling up our e-order form.
In-Condominium Showroom
Furthermore, we will engage in a business contract with condominium developers to engage in a
project to construct the first “In-condo” in Singapore. In this project, we are able to realize and
implement our wide range of products, ranging from automated home applications to our central
multimedia player. Bearing in mind to keep the cost affordable, we will only release our basic
package products and install them in every unit.
As such, we will assist the property developers in their promotional efforts by re-emphasizing our
Inhome features and benefits. This will in turn give the property developers an edge over the
existing competitors in the local residential market.
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11.4.3 Phase 2 : Growth Stage
- Stress differentiation
- To establish a brand name
- To generate the hype in the local residential market.
Target: a) Early Adopters b) Early Majority
Consumer Market
During this stage, we will expect to face stiff competition from our rival competitors. Henceforth,
we will launch a series of competitive advertisements to establish our brand name. We will
establish an image of a user-centric and innovative company, and position our product as a
product leader. As such, we will also specially highlight our products/services’ point of differences
and additional features from the rest of our competitors, making sure the consumers know that
we are the leading brand in the market.
Advertising and promotional efforts will be shifted towards simulating selective demand in which
product benefits are compared with those of competitor’s offerings to gain market share.
The main focus of this phase will be that of mass-marketing our product.
The promotional strategy in this stage will therefore be product-orientated and priced-based.
Bundle Packages
We will bundle our products into different packages to cater to the 3 different groups.
We know that everyone has different demands and needs. Bearing this in mind, these bundles
have been arranged so that the consumers enjoy our selected range of products that suits their
lifestyle and needs. Our bundles are offered at an exclusive price, and to top that off, delivery and
installation is free-of-charge with every purchase of any of our packages.
Of course, consumers are free to add on to the packages any modular devices that they wish.
Should any consumer wish to purchase any modular devices, we will order them from either of
our parent companies to supply them with the products. Delivery and installation charges will
however not be waiver, unless there is at least a bundle package purchased.
Basic Package (already available in phase 1)

Bio-Metrics (Fingerprint recognition) Door
InWindows
InHome Universal : Basic Wireless Network within the house (c/w controller)
Energy saving lights and air-conditioner
Basic Multimedia components
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Add-ons : Package 1 (In-Office)
Full Security features
Moderate multimedia
Basic Healthcare
Basic Home appliances
Product Detail description

This package is specially designed to cater to the needs of the SOHO users. In-office’s main
selling point is the strong security features. CISCO enjoys much prestige and reputation in the
market of networking security. We know that security is of paramount importance when it comes
to business work, and it cannot be compromised. Equipped with an extensive research and
development team in CISCO, our products are guaranteed to provide you with the best security
so that you wouldn’t have to worry about your office’s documents being hacked or tampered with.
This will mainly be accomplished via CISCO exclusive routers armed with the best firewalls to
block any potential intrusions.
Within this package, we also provide multimedia features which not only facilities communication
but also allow you to enjoy yourselves after a hard day’s work. Included is the wireless telephone
VOIP video phone that allows the user to view the party at the other end. This is especially useful
in business transactions and is already growing to become an indispensable tool of the SOHO
user.
Add-ons : Package 2 (Inhome: Small families)

Full Home Appliances
Full Multimedia
Moderate Security
Moderate Healthcare

Different families have different needs. This package is tailored exclusively for the nuclear
families comprising up to 4-5 members that form the bulk of the families in Singapore. Since in
nuclear families, it is common for both of the parents to be out at work in the daytime, many a
times leaving the children at home.
Hence, we provide, in this package, a fully-automated range of home appliances ranging from
automated washing machines to sink and cupboard lifters. We also have the digital distribution
center which acts as both as a router, a hard disk and a media player at the same time.
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Bearing in mind children that may be left alone at home often only with the company of the maid,
we include special features to safeguard the children’s safety. There will be CCTVs placed
strategically in the home to ensure that the children do not get into any accidents. Parents can
view what is happening at home through the internet. Also we have a smoke detector that dial’s
the parents’ hand phone/office number in case a fire breaks out.
Add-ons : Package 3 (Inhome: Large families)

Full Home Appliances
Full Healthcare
Full Multimedia
Moderate Security

This third package is targeted at large families of size from 5 onwards. The main additional
feature of this package that differentiates itself from the 2nd package is its additional healthcare
feature. In the daytime, elderly members are often left alone at home, sometimes with the
children. As such, we have designed products specially to cater to their needs and demands. One
of which is the In-health. This wristband has special features which can monitor the elderly
member’s heartbeat and pulse. In case of any emergency heart attacks or kidney failures, calls
are made immediately to the other family members and also the hospitals so that help can arrive
without any delay. In less serious cases, calls or SMS are made to the family members to update
them of the situation. Of course, it is up to the user to customize the settings of the In-health to
suit their needs.
Other Marketing Efforts :

Public transport
In order to strengthen our publicity, we will place our advertisements in the two most common
public transports in Singapore, namely the MRT (Mass Rapid Transit) and the SBS buses,
through outdoor advertising company, the Moove Media. The main objective of this campaign is
to reinforce our image and brand in the amidst of competition from other strong contenders.
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TV program : “Inhomes in Singapore”
We will also engage in a project with the Channel 5, Mediacorp Pte Ltd to produce a weekly half-
hour family entertainment program called “Inhomes in Singapore”.
In this program, we will invite celebrities to refurbish the homes of 2 invited participants. Each of
the participants will be given a fixed budget to work with. As a part of the design criteria, the
celebrities will have to incorporate at least one of our Inhome technologies into their design. The
homes will be judged based on each of their aesthetic feature and appeal to the viewers, which
will be consolidated at the end of the program via an audience poll.
In a nutshell, this program will showcase the ease of use, convenience and user-friendliness of
our Inhome technology.
At the end of our program, we will have a lucky draw contest. Every week, a question, related to
our Inhome product, will be shown on screen and contestants only have to dial in once the
question appears and correctly answer our question to receive our prize. Every fortnight, we will
have a theme which starts in the following order namely:
1. Multi-Media
2. Home Appliance
3. Healthcare
4. Security (in order)
The prizes each week will be based on the theme of the week, for example the prize for
healthcare week will be the In-health.
This program is scheduled to last for 2 months.
Celebrity endorsements
Research indicates that celebrity endorsements can result in more favorable advertisement
ratings and product evaluation, and can have a substantial positive impact on financial returns for
the companies that use them. Celebrities are particularly effective endorsers because they are
viewed as highly trustworthy, believable, persuasive and likable.
Phua Chu Kang, played by the comedy actor Gurmit Singh, in the popular local sitcom will be
chosen for our celebrity. We find him most ideal since Phu Chu Kang’s occupation is a popular
character of whom most of the Singaporeans can identify themselves with. Even Prime minister
Lee acknowledges the influential role played by Phua Chu Kang. Phua Chu Kang, though rugged
and not very well-educated nor IT-literate often self-proclaims that his service is the “best in
Singapore and JB”. We intend to make use of that to persuade the masses, especially the
heartlanders, to take up our technology.
Page 112
Print Media
Continuation of advertisements placed in the newspaper and magazines.
Mass Media
Continuation of advertisements in television programs and radio, but this time the advertisements
will feature Phua Chu Kang and there will be a touch of light-hearted comedy involved so it not
only leaves behind a deep impression, but more importantly it will hopefully strike a similar chord
with the public and persuade them in taking up the new technology.
Internet Promotion
As in phase 1, we will continue promoting our products in the digital realm via the use of
ebanners.
Hot-Air Balloon
One of our main publicity efforts will be to provide a hot-air balloon ride. The ideal location for
hosting this service is at the open field opposite Marina Square, because it is a popular place for
family-gatherings and also frequently patronized by people from different walks of life. The hot-air
balloon will be capable of carrying 29 people up at one time to a height of 150m. The main
purpose of the hot-air balloon is to carry the message that our company is innovative and user-
centric. It will also serve to reinforce our brand name in the minds of the public, since it can be
observed clearly from far.
Sponsorship
We aim to establish our credibility and reputation through sponsoring major events such as the
National Day Parade. We plan to sponsor a sum of $200,000. Our theme, which will be in
conjunction with National Day Parade’s message: “Building your dream home”. Due to this
similarity with Singapore’s government’s constant goal to create the best home for Singaporeans,
we hope that through our sponsorship we can associate ourselves with the annual NDP events
and cast our company image in positive light. In addition, this would indirectly encourage the
press to cover positive stories about the companies and also manage any unfavorable rumors,
stories, and events should there be any.
In-Condominium Showroom
At this phase, our first In-Condo will already have been completed, thereby ushering our products
into the business market. If there is a favorable response from the public to this notion of
intelligent living for condominiums, we will continue to launch similar projects with other property
Page 113
developers. Through this, we aim to gain a strong foothold in the business segment of the local
residential market
11.4.4 Phase 3 Maturity stage:
- Reminder Advertising, ie when new features, or updates are released

- Accentuate product differentiation
- Sustain product credibility
Target: a) Late Majority b) Laggards
In this stage, we expect industry sales to level off, and there will be fierce competition from the
other major companies. Henceforth, our promotional strategy will be mainly product-orientated.
This is so as to continue to re-emphasis on the superiority of our product against the rest of the
competitors, sustaining product credibility and stability to retain our customer base.
Loyalty Bonus
In order to maintain brand loyalty, we will have discounts and freebies for consumers who have
accumulated enough points which is given for every purchase of our products, based on its price.
The loyalty bonus points can be viewed through our websites as long as any customer registers
for the products that they purchased.
Internet Promotion
We will continue to maintain our website. Whenever there is a new software upgrade or a release
of a new product, information will also be sent to existing customers who have registered for their
products. E-newsletters will also be distributed monthly, providing the latest news and updates in
the past one month.
Print Media
Advertisements will be continued to be placed in the newspaper and magazines to sustain our
credibility.
Mass Media
Continuation of advertisements in television programs and radio.
Page 114
11.4.5 Summary of forms of Promotional Efforts
In summary, the platforms of Advertisements that we will be using
- Online
- Search engines, goggle, yahoo
- E-Newsletters
- Website Advertising
- Printed Media
- Newspaper
- Magazines
- Brochures/ Pamphlets
- Mass Media
- Radio
- TV , including producing a family entertainment program
- Celebrity endorsements
- Public transport, ie mrt, buses, taxis, etc.
- Business Market
- In-Condo Showroom
- Other promotional efforts

- Exhibition, including contests, and lucky draw
- Bundle packages
- Special discounts
- Loyalty points
- Sponsorship
Page 115
12. Marketing budget
12.1 Pre-launch: Product Development (7 months)
Strategy Cost Considerations Cost

Pioneering The Straits Times (Singapore) Mon-Wed: S$39.13 p.c.cm
Advertisements: A Series Thur-Sun: S$40.74 p.c.cm
of teaser advertisements in (p.c.cm – per column cm. A
print media to arouse quarter page is approximately 3
curiosity and attract column x 30cm)
attention ahead of the
official launch Cost of advertising a quarter page
black and white between Mon-
Wed: 39.13*90
=S$3521.70
To advertise once a week for first 7 Cost for first 6 months:

months 3521.70*4*7
=S$98, 607.60
Total Cost = S$98, 607.60
Magazines (HWM – Singapore) S$7,000 per page
To advertise in every 2 months Total cost = S$7,000*3

=S$21,000
Total Cost for print media S$119,607.60
Total cost for pre-launch stage (7 months) S$119,607.60
Page 116
12.2 Phase 1: Market Introduction (2 years)
Strategy Cost considerations Cost

The Straits Times (Singapore)
To advertise twice a week, for first 12 Cost for first 12 months:

months 3521.70*2*4*12
=S$338,083.20
To advertise thrice times a week, for last Cost for last 12 months:
12 months 3521.70*3*4*12
=S$507,124.80
Total Cost = S$845,208
Advertisements will be To advertise monthly for first 1 year Cost for first year:
placed on both print 7000*12
media to generate =S$84,000
awareness
To advertise once in every 2 months for Cost for last years:
last year 7000*12
=S$84,000
Total cost = 84000+84000

=S$168,000.00
Bi-monthly Newsletter (To be available in (Pixel Tech Pte Ltd)

showrooms and mailed to existing Per monthly:
consumers) 12 coloured A4 pages:
1 unit = S$2.40
100,000 units = S$240,000
Total Cost for 2 years: S$2,880,000
Total Cost for Print Media S$3,893,208
Product Launch Exhibition Hall at Expo Hall Per day : S$25,400

For a week:
S$177,800
5 Road shows to be held : Average Cost of setting up a Road

- x 1 Shenton way Show: S$10,000/day
- x 2 Orchard Road
- x 2 Suntec City Total Cost = S$10,000 x 5
= S$50,000
Reviews in IT NIL NIL
Magazines
Page 117
Mass Media TV advertisements: Per spot : S$1,000
40 sec commercial to be placed in
Channel Newsasia
To be shown 3 times a day for first year Cost=1000*3*24*28

=S$1,008,000
To be shown 2 times a day for last year
Cost=1000*2*12*28
=S$672,000
Free Bonus Airtime Enquired:

30%
Total Cost=S$1,680,000
Radio Advertisements on Morning: 0645-1100 S$650

CLASS95.0FM Evening: 1700-2100 S$550
2 year contract Cost for 2 years: S$1200*28*2

=S$67,200
YES93.3FM Morning: 0645-1000 S$430

Evening: 1700-2000 S$360
2 year contract
Cost for 2 years: S$790*28*2
=S$44,240
Total Cost for Mass Media Ads S$1,791,440.00
Collaboration with Minimal/No cost as both parties stand to NIL

property developers in gain from this tie-up
the “In-condo” project
Total Cost for phase 1 (2 years) S$5,734,648
Page 118
12.3 Phase 2: Growth Stage (3 years)

Establish brand name and The Straits Times (Singapore)
stress differentiation
To advertise 2 days a week, for 2 Cost for 1 year:
year 3521.70*2*4*24
=S$676,166.40
To advertise 1 day per week for 1 Cost for 2 years:

year 3521.70*4*12
Print Media =S$169,041.60
To advertise once in every 2 Total cost = S$7,000*6*3

months for 3 years =S$126,000
Monthly Newsletter (To be available

in showrooms and mailed to Total Cost for 3 years:
existing consumers) S$4,320,000
Total Cost for print media S$5,291,208
Mass Media TV Program: “Inhomes in S$30,000 per episode

Singapore”
Once per week lasting for 2 months Total cost: 30000*2*4

=S$240,000.00
TV Advertisements:
Channel Newsaisa
Twice a day for 3 years S$2,016,000
Celebrity Endorsements : Gurmit S$20,000.00

Singh
Contract : 3 years
Radio Advertisements S$278,600.00
Total mass media ads costs: S$2,554,600.00
Public Transport Competitive promotion in MRTs 12-Sheets Singles
Min Advertising Period : 3 months
Display Size : 1540mm(h) x
2990mm(w)
Material Size : 1610mm(h) x
3100mm(w)
Production Cost : $600 per panel
Advertisements to be placed at Monthly Media rate:

Dhobby Ghaut MRT and Outram S$1,500 per panel
Page 119
Park for 3 years
Total Cost: 1500*36+1200
=S$55,200.00
Competitive promotion in Buses Double Decker Wholly-painted:

Total Cost for public S$3,400 per buses
transport Ads 3 buses : S$20,400
Media rate per bus :

To have 3 buses display our S$4,000 per month
products for the period of 3 years 3 years: 4000*12*3
=S$144,000.00
Per 40,000 hangars

Hangars on buses S$14,000
S$466,400.00
Total Cost S$521,600.00
To reinforce our image/ Sponsorship for National Day Cost per year : S$ 200,000
brand name Parade for 3 years Total Cost: S$ 600,000
Hot-Air Balloon Projected Costs : Per year : S$ 2 million
Expected revenue earned : Tickets for 10 minute ride:

Continued collaboration Adults - $23.00
with property developers of Children aged 3-12 years
“In-condo” project - $13.00
Toddler - $2.00
Per year : S$ 2 million

250, 000 people
NIL NIL
Total Cost for phase 2 (3 years) S$8,967,408
Page 120
12.4 Phase 3: Maturity Stage (1 year)

Reminder Advertising, The Straits Times (Singapore)
and sustain product
credibility To advertise 1 days a week, for 1 year Cost for 1 years:
3521.70*4*12
=S$169,041.60

Print Media
To advertise in once every quarter year Total cost = S$7,000*3*1
=S$21,000
Bi-Monthly Newsletter (To be available in 100,000 units = S$240,000

showrooms and mailed to existing
consumers)
Total Cost: 240000*1*6
=S$1,440,000
Mass Media TV Advertisements:
Channel Newsasia
Twice a day for 1 year S$672,000.00
Radio Advertisements:
CLASS95.0FM Cost for 1 year: S$1200*28*1

1 year =S$33,600
YES93.3FM Cost for 1 year: S$790*28*1

1 year =S$22,120
Website Hosting Fees Per year : S$240

1 year : S$240
Continued NIL NIL

Collaboration with
property developers in
the “In-condo” project
Total Cost for phase 3 (1 year) S$2,358,001.60
Page 121
12.5 Placement

Showroom in
Suntec City Suntec City Rent for Show Room, Tower Monthly Rent: S$10,000
2
Ikea Ikea Showroom Monthly Rent: S$7,000
Internet Website -Venue for providing information and Monthly : S$240

sales of product
-Also important for gathering feedback
Total Cost per monthly S$17,240.00
Page 122
13. Market Control
13.1 Market Contingency plan 1
In the event that the product development encounters problem, either in the delay of shipment of
components, or last-minute bugs that might surface, the market introduction phase and product
launch dates will be postponed. Once news of the delay has been confirmed, the marketing plan
to place teaser advertisements will be postponed nearer to the introduction stage. The
subsequent phases will be pushed back accordingly. The marketing strategy and execution plans
will remain the same for each of the phases.
However, should any of the early competitors launch a similar product before us due to this delay,
we will make the following changes to our marketing strategy:
1. Allocate additional budget of S$200,000 to boost our marketing efforts

2. Coming up with attractive bundle promotions and offer free gifts
3. Focus marketing efforts on highlighting our strengths and differences from the
competitors
4. Adding new features
The additional S$200,000 will be used to expand exposure for our products. This can be
achieved through increasing our advertising efforts in the print media and as well as potential
sponsorships / tradeshows. The aim is to position ourselves ahead of any potential strong
contenders via a more aggressive campaign.
Page 123
13.2 Market Contingency plan 2
In the event that our introduction phase does not receive good response from the public, in terms
of generating awareness and interest, we will attempt to increase our efforts in educating the
public of our products.
This can be carried out in the following means:

1. Allocate additional budget of S$500,000 to generate awareness and interest
2. Extend the introduction stage by 2 months to give the public some time to adopt our
technology
3. Offer free trial of our system to gain popularity by word of mouth
During the additional extension of 2 months, we continue to be aggressive in our campaign to

educate the users on the benefits and convenience of Inhome. The additional S$500,000 will not
only be used buy additional advertisement space in print media, but also will be use to stage
additional road shows and/or tradeshows. By offering free trial to famous local celebrities, we can
help to gain popularity as not only will our brand name be made known via word of mouth, it will
be most likely be featured in important media, such as the Television or the newspapers, in the
form of exclusive interviews with the celebrities.
Page 124
FINANCE PROJECTIONS
Page 125
14.1 Salary Structure
Projected Salary - Per Employee (in S$)
(Per Month) (Per Month)

Gross Amount Amt (Incl. CPF)#
* Project Manager 10000.00 11600.00
Finance Department
* Finance Manager 8500.00 9860.00
* Financial Analyst 5000.00 5800.00
Marketing & PR Department

* Marketing & PR Manager 8000.00 9280.00
* Marketing Executive 5000.00 5800.00
Salesman (Basic Pay) 1200.00 1392.00
Customer Service Officer 2000.00 2320.00
Product & Operations Dept

* Product & Operations Manager 8000.00 9280.00
* Product Engineer 5000.00 5800.00
* Control Engineer 5000.00 5800.00
Technician 2000.00 2320.00
Programme Designers 2000.00 2320.00
Delivery Man 1500.00 1740.00
Total Number of Executive Staff: 8 (Eight)

Total Salary Payable to Executive Staff (Per Mth): 63220.00
# CPF Contribution by Employer is at 16%.

* represents Executive Staff
Page 126
14.2 Overall Financial Summary:
14.2.1 Graphs at a Glance

Revenue & Profit Summary
20 450
Millions
Millions
400
15 350
Revenue (S$)
300
Profit (S$)
10
250 Net Profit
200 Revenue
5
150
0 100
50
-5 0
2006 2007 2008 2009 2010 2011
Year
Accumulative Profit
60
Millions
50
40
Amount (S$)
30
Accumulative Profit
20
10
0
2006 2007 2008 2009 2010 2011
-10
Year
Cash Balance
Millions
25
20
Amount (S$)
15
10 Cash Balance
0
2006 2007 2008 2009 2010 2011
Year
Page 127
14.2.2 Ratios at a Glance
Current Ratio: Current Assets / Current Liabilities
Year:
2006 2007 2008 2009 2010 2011
NA 12.59 14.39 12.26 13.37 15.56
Quick Ratio: Cash + Trade Debtors / Current Liabilities
Year:
2006 2007 2008 2009 2010 2011
NA 7,052,237.3 12,092,202.6 12,499,096.4 14,642,180.2 23,469,745.5
Leverage Ratio: Total Liabilities / Net Worth
Year:
2006 2007 2008 2009 2010 2011
0.00 0.08 0.07 0.09 0.08 0.07
Net Profit Margin: Net Profit / Revenue
Year:
2006 2007 2008 2009 2010 2011
NA 17.54% 10.60% 5.82% 4.96% 4.23%
Return on Assets: Net Profit / Total Assets
Year:
2006 2007 2008 2009 2010 2011
NA 66.23% 39.07% 32.27% 29.77% 25.66%
Return on Investment: Net Profit / Net Worth
Year:
2006 2007 2008 2009 2010 2011
NA 71.82% 41.96% 35.10% 32.16% 27.42%
*Refer to Appendix for more Explanation on Ratios

Page 128
Page 129
15.1 Summary of Financial Standing
Projected Revenue & Profit
90.0 10.0
Millions
Millions
80.0 8.0
70.0 REVENUE
Revenue (S$)
6.0
60.0
Profit (S$)
50.0 4.0
40.0 2.0
30.0 NET
0.0 PROFIT
20.0
(2.0) AFTER
10.0 TAX
0.0 (4.0)
Year 2006 Year 2007 Year 2008
Year
Accumulative Profit (Loss)

16.0
Millions
14.0
12.0
10.0
Amount (S$)
8.0
6.0
Accumulative
4.0
Profit (Loss)
2.0
0.0
June-2006
July-2006
August-2006
September-2006
October-2006
November-2006
December-2006
January-2007
February-2007
March-2007
April-2007
May-2007
June-2007
July-2007
August-2007
September-2007
October-2007
November-2007
December-2007
January-2008
February-2008
March-2008
April-2008
May-2008
June-2008
July-2008
August-2008
September-2008
October-2008
November-2008
December-2008
(2.0)
(4.0)
Month Number
Cash Flow Summary

Net Cash
14.0
Provided by
Financing
Millions
Cash Value (S$1)
12.0
10.0
Net Increase
8.0 (Decrease) in
6.0 Cash
4.0
2.0 Ending Cash
0.0 & Bank
Balance
Year
Page 130
15.2 Start-Up Expenditure
in terms of (S$)
Description Amount
1 Start-up Legal/Administrative Fees 5,000.0
2 Initial Equipment Purchase 339,500.0

a Office Furnitures 30,000.0
b Computers & Peripherals 20,000.0
c Softwares 5,000.0
d Fax Machines / Telephones 1,000.0
e Photocopying Machines 3,000.0
f Stationery 500.0
g Commercial Vehicle 280,000.0
3 Licenses, Permits & Patents 10,000.0
4 Initial Insurance 0.0
5 Initial Advertising Costs 200,000.0
6 Initial Inventory 30,000.0
7 Initial Training 1,000.0
TOTAL AMOUNT: 585,500.0
Page 131
15.3 Operating Expenditure
15.3.1 Staff Employment & Costs 2006

Pre-Launch (7 Months)
Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06
Project Manager 1 1 1 1 1 1
Finance Manager 1 1 1 1 1 1
Financial Analyst 1 1 1 1 1 1
Marketing & PR Manager 1 1 1 1 1 1

Marketing Executive 1 1 1 1 1 1
Salesperson 5 5 5 8 8 8
Customer Service Officer 1 1 1 1 1 1
Product & Operations Manager 1 1 1 1 1 1

Product Engineer 1 1 1 1 1 1
Control Engineer 1 1 1 1 1 1
Technician 0 0 0 0 5 5
Programme Designers 3 3 3 3 3 3
Deliveryman 0 0 0 0 0 0
Company Size: 17 17 17 20 25 25
Total Salary Payable: 79,460.0 79,460.0 79,460.0 83,636.0 95,236.0 95,236.0
Dec-06
Project Manager 1
Finance Manager 1
Financial Analyst 1
Marketing & PR Manager 1

Marketing Executive 1
Salesperson 8
Customer Service Officer 2
Product & Operations Manager 1

Product Engineer 1
Control Engineer 1
Technician 5
Programme Designers 3
Deliveryman 2
Company Size: 28
Total Salary Payable: 202,072.0
Page 132
Phase I ( 24 Months)
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07

Salesperson 8 10 12 15 18 20

Technician 8 10 12 15 15 15
Company Size: 34 40 44 50 54 57
Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07

Salesperson 20 20 20 20 20 20

Technician 18 18 20 20 20 20
Company Size: 60 60 62 62 62 62
Page 133

Salesperson 25 25 25 25 25 25

Technician 20 20 20 20 20 20
Company Size: 74 74 74 74 74 74

Salesperson 30 30 30 30 40 40

Technician 30 30 30 30 40 40
Company Size: 94 94 94 94 114 114

Page 134
15.3.2 Inventory Costs
15.3.2.1 Basic Package Set
USD USD SGD

Description Unit Cost Qty Subtotal Subtotal
1 Smarthome Web-Enabled SecureLinc System 274.00 1 274.00 438.40
2 Powerlink Web Interface Controller 450.00 1 450.00 720.00
3 Pet-Immune Wireless Motion Sensor 90.00 1 90.00 144.00
4 Magnetic Door and Window Contact 50.00 7 350.00 560.00
5 Fingerprint recognition door lock 274.00 1 274.00 438.40
6 120GB harddrive that is connected to PC costs 591.95 1 591.95 947.12
7 VOIP Phone 500.00 1 500.00 800.00
8 Media adapter 250.00 3 750.00 1,200.00
9 ZDP100 RF Lamp Module Plug-in 24.35 10 243.50 389.60
10 Compact Wireless-G Broadband Router 275.00 1 275.00 440.00
11 LEVITON ULTRASONIC OCCUPANCY SENSOR 45.60 10 456.00 729.60
12 ADDITIONAL KEY Tag 6.25 4 25.00 40.00
13 N1001-INT DOMESTIC DOOR MOTOR 31.25 1 31.25 50.00
14 1040-INT Mk 1 (MOTORISED WINDOW) 25.00 25 625.00 1,000.00
15 SWISH AUTOGUIDE (CURTAIN MOTOR) 12.50 5 62.50 100.00
TOTAL AMOUNT: 4,998.20 7,997.12
Page 135
15.3.2.2 Monthly Inventory Costs
Projected Costs in (S$)
Basic Sets Quantity 0 0 0 0 0 0

Costs Per Set 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12
Total Inventory Costs 0.0 0.0 0.0 0.0 0.0 0.0
Dec-06
Basic Sets Quantity 0

Costs Per Set 7,997.12
Total Inventory Costs 0.0
Phase I (24 Months)

Costs Per Set 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12
Total Inventory Costs 1,599,424.0 1,999,280.0 1,999,280.0 2,399,136.0 2,399,136.0 2,399,136.0

Costs Per Set 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12

Costs Per Set 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12

Costs Per Set 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12 7,997.12
Page 136
15.3.3 Other Operating Costs
Projected Monthly (in S$1)
For the Period: Jun2006 - Dec2008
Description Amount
# Auto Expenses 10,000.0
# Depreciation 5,658.3
# Office Rental 30,000.0
# Advertising 150,000.0
# Insurance 15,000.0
# Accounting and Other Professional Fees 10,000.0
# Utility / Phone Bills 10,000.0
# Travel and Entertainment Expenses 20,000.0
# Maintenance and Repair 10,000.0
# Assumed to be constant Monthly
Page 137
15.4 Sales Forecast
15.4.1 Expected Demand
Year 2006
Pre-Launch I (7 Months)

Units demanded (estimated) 0 0 0 0 0 0
Dec-06
Units demanded (estimated) 0
Year 2007


Year 2008


Total units demanded 11950
*Refer to Appendix for More Explanation
Page 138
15.4.2 Expected Revenue
Revenue in terms of (S$1)
Year 2006

Units demanded 0 0 0 0 0 0
Unit Revenue 11,500.0 11,500.0 11,500.0 11,500.0 11,500.0 11,500.0
Total Revenue 0.0 0.0 0.0 0.0 0.0 0.0
Dec-06
Units demanded 0
Unit Revenue 11,500.0
Total Revenue 0.0
Year 2007

Units demanded 200 250 250 300 300 300
Unit Revenue 11,500.0 11,500.0 11,500.0 11,500.0 11,500.0 11,500.0
Total Revenue 2,300,000.0 2,875,000.0 2,875,000.0 3,450,000.0 3,450,000.0 3,450,000.0

Units demanded 350 400 450 400 450 450
Unit Revenue 11,500.0 11,500.0 11,500.0 11,500.0 11,500.0 11,500.0
Total Revenue 4,025,000.0 4,600,000.0 5,175,000.0 4,600,000.0 5,175,000.0 5,175,000.0
Year 2008

Units demanded 400 550 550 550 600 700
Unit Revenue 10,500.0 10,500.0 10,500.0 10,500.0 10,500.0 10,500.0
Total Revenue 4,200,000.0 5,775,000.0 5,775,000.0 5,775,000.0 6,300,000.0 7,350,000.0

Units demanded 600 750 700 700 800 950
Unit Revenue 10,200.0 9,800.0 9,500.0 9,500.0 9,500.0 9,500.0
Total Revenue 6,120,000.0 7,350,000.0 6,650,000.0 6,650,000.0 7,600,000.0 9,025,000.0
Page 139
15.5 Projected Income
Revenue and Profit Summary
90.0
Millions
80.0
70.0
REVENUE
60.0
Amount (S$)
50.0 GROSS PROFIT

40.0
PROFIT BEFORE
30.0 TAXATION
NET PROFIT AFTER TAX
20.0
10.0
0.0
(10.0)
Year
Revenue, Expense & Profit Comparison
90.0
Millions
80.0
70.0
60.0
Amount ($1)
50.0 REVENUE
Costs of Goods
40.0
OPERATING EXPENSES
30.0 NET PROFIT AFTER TAX
20.0
10.0
0.0
(10.0) Year 2006 Year 2007 Year 2008
Year
Page 140
15.5.1 Annual Income Statements
(in terms of S$1)

REVENUE 0.0 47,150,000.0 78,570,000.0
Costs of Goods 0.0 32,788,192.0 62,777,392.0
GROSS PROFIT 0.0 14,361,808.0 15,792,608.0
OPERATING EXPENSES 2,755,168.3 5,117,416.0 5,997,160.0

Staff Costs 714,560.0 1,989,516.0 2,869,260.0
Auto Expenses 70,000.0 120,000.0 120,000.0
Depreciation 39,608.3 67,900.0 67,900.0
Office Rental 210,000.0 360,000.0 360,000.0
Advertising 1,250,000.0 1,800,000.0 1,800,000.0
Insurance 105,000.0 180,000.0 180,000.0
Professional Fees 70,000.0 120,000.0 120,000.0
Utility Bills 70,000.0 120,000.0 120,000.0
Travel & Entertainment 140,000.0 240,000.0 240,000.0
Licenses/Permits/Patents Expense 10,000.0 0.0 0.0
Maintenance & Repair 76,000.0 120,000.0 120,000.0
PROFIT BEFORE TAXATION (2,755,168.3) 9,244,392.0 9,795,448.0

Taxation Expenses* 0.0 973,383.5 1,469,317.2
NET PROFIT AFTER TAX (2,755,168.3) 8,271,008.5 8,326,130.8
Page 141
15.5.2 Monthly Profit & Loss Statements
(in terms of S$1)
Pre-Launch: (7 Months)
REVENUE 0.0 0.0 0.0 0.0 0.0 0.0

Costs of Goods 0.0 0.0 0.0 0.0 0.0 0.0
GROSS PROFIT 0.0 0.0 0.0 0.0 0.0 0.0
OPERATING EXPENSES 556,118.3 340,118.3 340,118.3 344,294.3 355,894.3 355,894.3

Staff Costs 79,460.0 79,460.0 79,460.0 83,636.0 95,236.0 95,236.0
Auto Expenses 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
Depreciation 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3
Office Rental 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Advertising 350,000.0 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0
Insurance 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0
Professional Fees 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
Utility Bills 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
Travel & Entertainment 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0
Licenses/Permits/Patents Expense 10,000.0 0.0 0.0 0.0 0.0 0.0
Others (incl Maintenance & Repair) 16,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
PROFIT BEFORE TAXATION (556,118.3) (340,118.3) (340,118.3) (344,294.3) (355,894.3) (355,894.3)

Taxation Expenses 0.0 0.0 0.0 0.0 0.0 0.0
NET PROFIT AFTER TAX (556,118.3) (340,118.3) (340,118.3) (344,294.3) (355,894.3) (355,894.3)
Dec-06
REVENUE 0.0
Costs of Goods 0.0
GROSS PROFIT 0.0
OPERATING EXPENSES 462,730.3

Staff Costs 202,072.0
Auto Expenses 10,000.0
Depreciation 5,658.3
Office Rental 30,000.0
Advertising 150,000.0
Insurance 15,000.0
Professional Fees 10,000.0
Utility Bills 10,000.0
Travel & Entertainment 20,000.0
Licenses/Permits/Patents Expense 0.0
Others (incl Maintenance & Repair) 10,000.0
PROFIT BEFORE TAXATION (462,730.3)

Taxation Expenses 0.0
NET PROFIT AFTER TAX (462,730.3)
Page 142
(in terms of S$1)
Phase I: ( 24 Months)
REVENUE 2,300,000.0 2,875,000.0 2,875,000.0 3,450,000.0 3,450,000.0 3,450,000.0

Costs of Goods 1,599,424.0 1,999,280.0 1,999,280.0 2,399,136.0 2,399,136.0 2,399,136.0
GROSS PROFIT 700,576.0 875,720.0 875,720.0 1,050,864.0 1,050,864.0 1,050,864.0

Staff Costs 114,956.0 125,860.0 133,284.0 144,420.0 150,916.0 156,020.0
Auto Expenses 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
Depreciation 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3
Office Rental 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Advertising 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0
Insurance 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0
Utility Bills 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
Licenses/Permits/Patents Expense 0.0 0.0 0.0 0.0 0.0 0.0
PROFIT BEFORE TAXATION 324,961.7 489,201.7 481,777.7 645,785.7 639,289.7 634,185.7

NET PROFIT AFTER TAX 324,961.7 489,201.7 481,777.7 645,785.7 639,289.7 634,185.7
REVENUE 4,025,000.0 4,600,000.0 5,175,000.0 4,600,000.0 5,175,000.0 5,175,000.0

Costs of Goods 2,798,992.0 3,198,848.0 3,598,704.0 3,198,848.0 3,598,704.0 3,598,704.0
GROSS PROFIT 1,226,008.0 1,401,152.0 1,576,296.0 1,401,152.0 1,576,296.0 1,576,296.0

Staff Costs 162,980.0 162,980.0 167,620.0 167,620.0 167,620.0 335,240.0
Auto Expenses 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
Depreciation 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3
Office Rental 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Advertising 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0
Insurance 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0
Utility Bills 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
PROFIT BEFORE TAXATION 802,369.7 977,513.7 1,148,017.7 972,873.7 1,148,017.7 980,397.7

Taxation Expenses 0.0 0.0 0.0 0.0 0.0 973,383.5
NET PROFIT AFTER TAX 802,369.7 977,513.7 1,148,017.7 972,873.7 1,148,017.7 7,014.1
Page 143
(in terms of S$1)
REVENUE 4,200,000.0 5,775,000.0 5,775,000.0 5,775,000.0 6,300,000.0 7,350,000.0

Costs of Goods 3,198,848.0 4,398,416.0 4,398,416.0 4,398,416.0 4,798,272.0 5,597,984.0
GROSS PROFIT 1,001,152.0 1,376,584.0 1,376,584.0 1,376,584.0 1,501,728.0 1,752,016.0

Staff Costs 189,660.0 189,660.0 189,660.0 189,660.0 189,660.0 189,660.0
Auto Expenses 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
Depreciation 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3
Office Rental 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Advertising 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0
Insurance 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0
Utility Bills 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
PROFIT BEFORE TAXATION 550,833.7 926,265.7 926,265.7 926,265.7 1,051,409.7 1,301,697.7

NET PROFIT AFTER TAX 550,833.7 926,265.7 926,265.7 926,265.7 1,051,409.7 1,301,697.7
REVENUE 6,120,000.0 7,350,000.0 6,650,000.0 6,650,000.0 7,600,000.0 9,025,000.0

Costs of Goods 4,798,272.0 5,997,840.0 5,597,984.0 5,597,984.0 6,397,696.0 7,597,264.0
GROSS PROFIT 1,321,728.0 1,352,160.0 1,052,016.0 1,052,016.0 1,202,304.0 1,427,736.0

Staff Costs 231,420.0 231,420.0 231,420.0 231,420.0 268,540.0 537,080.0
Auto Expenses 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
Depreciation 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3 5,658.3
Office Rental 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Advertising 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0 150,000.0
Insurance 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0 15,000.0
Utility Bills 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0 10,000.0
PROFIT BEFORE TAXATION 829,649.7 860,081.7 559,937.7 559,937.7 673,105.7 629,997.7

Taxation Expenses 0.0 0.0 0.0 0.0 0.0 1,469,317.2
NET PROFIT AFTER TAX 829,649.7 860,081.7 559,937.7 559,937.7 673,105.7 (839,319.5)
Page 144
15.5.3 Monthly Net Profit Margin
(in terms of S$1)
Month Revenue Net Profit (Loss) Net Profit Margin
June-2006 0.0 (556,118.3) Not Meaningful

July-2006 0.0 (340,118.3) Not Meaningful
August-2006 0.0 (340,118.3) Not Meaningful
September-2006 0.0 (344,294.3) Not Meaningful
October-2006 0.0 (355,894.3) Not Meaningful
November-2006 0.0 (355,894.3) Not Meaningful
December-2006 0.0 (462,730.3) Not Meaningful
January-2007 2,300,000.0 324,961.7 14%
February-2007 2,875,000.0 489,201.7 17%
March-2007 2,875,000.0 481,777.7 17%
April-2007 3,450,000.0 645,785.7 19%
May-2007 3,450,000.0 639,289.7 19%
June-2007 3,450,000.0 634,185.7 18%
July-2007 4,025,000.0 802,369.7 20%
August-2007 4,600,000.0 977,513.7 21%
September-2007 5,175,000.0 1,148,017.7 22%
October-2007 4,600,000.0 972,873.7 21%
November-2007 5,175,000.0 1,148,017.7 22%
December-2007 5,175,000.0 7,014.1 0%
January-2008 4,200,000.0 550,833.7 13%
February-2008 5,775,000.0 926,265.7 16%
March-2008 5,775,000.0 926,265.7 16%
April-2008 5,775,000.0 926,265.7 16%
May-2008 6,300,000.0 1,051,409.7 17%
June-2008 7,350,000.0 1,301,697.7 18%
July-2008 6,120,000.0 829,649.7 14%
August-2008 7,350,000.0 860,081.7 12%
September-2008 6,650,000.0 559,937.7 8%
October-2008 6,650,000.0 559,937.7 8%
November-2008 7,600,000.0 673,105.7 9%
December-2008 9,025,000.0 (839,319.5) -9%
Page 145
Amount (S$)
Millions
-1
-0.5
0
0.5
1
1.5
June-2006
July-2006
August-2006
September-2006
October-2006
November-2006
December-2006
January-2007
February-2007
March-2007
April-2007
May-2007
June-2007
July-2007
August-2007
September-2007
15.5.4 Monthly Net Profits (Losses) - Graphical
October-2007
Month Number
November-2007
December-2007
Profit Versus Month
January-2008
February-2008
March-2008
April-2008
May-2008
June-2008
July-2008
August-2008
September-2008
October-2008
November-2008
December-2008
(Loss)
Net Profit
Page 146
15.6 Break-Even Analysis
15.6.1 Accumulative Data

in terms of S$1
Month Accumulative Revenue Accumulative Profit (Loss)
June-2006 0.0 (556,118.3)

July-2006 0.0 (896,236.7)
August-2006 0.0 (1,236,355.0)
September-2006 0.0 (1,580,649.3)
October-2006 0.0 (1,936,543.7)
November-2006 0.0 (2,292,438.0)
December-2006 0.0 (2,755,168.3)
January-2007 2,300,000.0 (2,430,206.7)
February-2007 5,175,000.0 (1,941,005.0)
March-2007 8,050,000.0 (1,459,227.3)
April-2007 11,500,000.0 (813,441.7)
May-2007 14,950,000.0 (174,152.0)
June-2007 18,400,000.0 460,033.7
July-2007 22,425,000.0 1,262,403.3
August-2007 27,025,000.0 2,239,917.0
September-2007 32,200,000.0 3,387,934.7
October-2007 36,800,000.0 4,360,808.3
November-2007 41,975,000.0 5,508,826.0
December-2007 47,150,000.0 5,515,840.1
January-2008 51,350,000.0 6,066,673.8
February-2008 57,125,000.0 6,992,939.5
March-2008 62,900,000.0 7,919,205.1
April-2008 68,675,000.0 8,845,470.8
May-2008 74,975,000.0 9,896,880.5
June-2008 82,325,000.0 11,198,578.1
July-2008 88,445,000.0 12,028,227.8
August-2008 95,795,000.0 12,888,309.5
September-2008 102,445,000.0 13,448,247.1
October-2008 109,095,000.0 14,008,184.8
November-2008 116,695,000.0 14,681,290.5
December-2008 125,720,000.0 13,841,970.9
Page 147
Profit
Millions
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
(4.0)
(2.0)
June-2006
July-2006
August-2006
September-2006
October-2006
November-2006
December-2006
January-2007
February-2007
March-2007
April-2007
15.6.2 Accumulative Profit Graph
May-2007
June-2007
July-2007
August-2007
Break Even Point
September-2007
October-2007
November-2007
December-2007
January-2008
February-2008
March-2008
April-2008
May-2008
June-2008
July-2008
August-2008
September-2008
October-2008
November-2008
December-2008
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
55.0
60.0
65.0
70.0
75.0
80.0
85.0
90.0
95.0
100.0
105.0
110.0
115.0
120.0
125.0
130.0
135.0
Millions
Revenue
)
S$16.0 Million
(Loss)
Revenue
Accumulative
Corresponding Revenue:
Accumulative Profit
Page 148
15.7 Projected Cash Flow
Cash Flow at a Glance

14.0
Millions
12.0 Net Cash

Provided by
Cash Value (S$1)
10.0 Operations
Net Cash
8.0 Provided by
Investments
6.0 Net Cash
Provided by
4.0 Financing
Net Increase
2.0 (Decrease) in
Cash
0.0 Ending Cash &
Bank Balance
(2.0) Year 2006 Year 2007 Year 2008
(4.0)
Year
Page 149
15.7.1 Annual Cash Flow Statements
(in terms of S$1)
OPERATING ACTIVITIES
Net Profit Before Tax (2,755,168.3) 9,244,392.0 9,795,448.0
Adjustment to reconcile net profit
before tax to net cash provided 9,608.3 (5,107,100.0) (4,755,483.6)
Net Cash Provided by Operations (2,745,560.0) 4,137,292.0 5,039,964.5
INVESTING ACTITVITIES
Purchase of Investments 0.0 0.0 0.0
Purchase of Property & Equipment (PE) (339,500.0) 0.0 0.0
Proceeds from Sale of Investments 0.0 0.0 0.0
Proceeds from Sale of PE 0.0 0.0 0.0
Net Cash Provided by Investments (339,500.0) 0.0 0.0
FINANCING ACTIVITIES
Proceeds from issuance of shares 6,000,000.0 0.0 0.0
Additional Borrowings (Repayments) 0.0 0.0 0.0
Dividends Paid to Shareholders 0.0 0.0 0.0
Net Cash Provided by Financing 6,000,000.0 0.0 0.0
Net Increase (Decrease) in Cash 2,914,940.0 4,137,292.0 5,039,964.5

Starting Cash & Bank Balance 0.0 2,914,940.0 7,052,232.0
Ending Cash & Bank Balance 2,914,940.0 7,052,232.0 12,092,196.5
Page 150
15.7.2 Monthly Cash Flow Statements
(in terms of S$1)
Net Profit Before Tax (556,118) (340,118) (340,118) (344,294) (355,894) (355,894)
before tax to net cash provided (24,342) 5,658 5,658 5,658 5,658 5,658
Net Cash Provided by Operations (580,460) (334,460) (334,460) (338,636) (350,236) (350,236)
Purchase of Investments 0 0 0 0 0 0
Purchase of Property & Equipment (339,500) 0 0 0 0 0
Proceeds from Sale of Investments 0 0 0 0 0 0
Proceeds from Sale of PE 0 0 0 0 0 0
Net Cash Provided by Investments (339,500) 0 0 0 0 0
Proceeds from issuance of shares 6,000,000 0 0 0 0 0
Additional Borrowings (Repayments) 0 0 0 0 0 0
Dividends Paid to Shareholders 0 0 0 0 0 0
Net Cash Provided by Financing 6,000,000 0 0 0 0 0
Net Increase (Decrease) in Cash 5,080,040 (334,460) (334,460) (338,636) (350,236) (350,236)
Starting Cash & Bank Balance 0 5,080,040 4,745,580 4,411,120 4,072,484 3,722,248
Ending Cash & Bank Balance 5,080,040 4,745,580 4,411,120 4,072,484 3,722,248 3,372,012
Dec-06
Net Profit Before Tax (462,730)
before tax to net cash provided 5,658
Net Cash Provided by Operations (457,072)
Purchase of Investments 0
Purchase of Property & Equipment 0
Proceeds from Sale of Investments 0
Proceeds from Sale of PE 0
Net Cash Provided by Investments 0
Proceeds from issuance of shares 0
Additional Borrowings (Repayments) 0
Dividends Paid to Shareholders 0
Net Cash Provided by Financing 0
Net Increase (Decrease) in Cash (457,072)

Starting Cash & Bank Balance 3,372,012
Ending Cash & Bank Balance 2,914,940
Page 151
(in terms of S$1)
Net Profit Before Tax 324,962 489,202 481,778 645,786 639,290 634,186
before tax to net cash provided (2,294,342) (569,342) 5,658 (569,342) 5,658 5,658
Net Cash Provided by Operations (1,969,380) (80,140) 487,436 76,444 644,948 639,844
Purchase of Property & Equipment 0 0 0 0 0 0
Net Cash Provided by Investments 0 0 0 0 0 0
Proceeds from issuance of shares 0 0 0 0 0 0
Net Cash Provided by Financing 0 0 0 0 0 0
Net Increase (Decrease) in Cash (1,969,380) (80,140) 487,436 76,444 644,948 639,844
Starting Cash & Bank Balance 2,914,940 945,560 865,420 1,352,856 1,429,300 2,074,248
Ending Cash & Bank Balance 945,560 865,420 1,352,856 1,429,300 2,074,248 2,714,092
Net Profit Before Tax 802,370 977,514 1,148,018 972,874 1,148,018 980,398
before tax to net cash provided (569,342) (569,342) (569,342) 580,658 (569,342) 5,658
Net Cash Provided by Operations 233,028 408,172 578,676 1,553,532 578,676 986,056
Net Increase (Decrease) in Cash 233,028 408,172 578,676 1,553,532 578,676 986,056
Starting Cash & Bank Balance 2,714,092 2,947,120 3,355,292 3,933,968 5,487,500 6,066,176
Page 152
(in terms of S$1)
Net Profit Before Tax 550,834 926,266 926,266 926,266 1,051,410 1,301,698
before tax to net cash provided 980,658 (1,569,342) 5,658 5,658 (1,492,725) (1,044,342)
Net Cash Provided by Operations 1,531,492 (643,076) 931,924 931,924 (441,316) 257,356
Net Increase (Decrease) in Cash 1,531,492 (643,076) 931,924 931,924 (441,316) 257,356
Net Profit Before Tax 829,650 860,082 559,938 559,938 673,106 629,998
before tax to net cash provided 1,235,658 (1,224,342) 705,658 5,658 (944,342) (1,419,342)
Net Cash Provided by Operations 2,065,308 (364,260) 1,265,596 565,596 (271,236) (789,344)
Net Increase (Decrease) in Cash 2,065,308 (364,260) 1,265,596 565,596 (271,236) (789,344)
Page 153
15.7.3 Monthly Cash Flow Summary
(in terms of S$1)
Month Change in Cash Balance Ending Cash Balance
June-2006 5,080,040 5,080,040

July-2006 (334,460) 4,745,580
August-2006 (334,460) 4,411,120
September-2006 (338,636) 4,072,484
October-2006 (350,236) 3,722,248
November-2006 (350,236) 3,372,012
December-2006 (457,072) 2,914,940
January-2007 (1,969,380) 945,560
February-2007 (80,140) 865,420
March-2007 487,436 1,352,856
April-2007 76,444 1,429,300
May-2007 644,948 2,074,248
June-2007 639,844 2,714,092
July-2007 233,028 2,947,120
August-2007 408,172 3,355,292
September-2007 578,676 3,933,968
October-2007 1,553,532 5,487,500
November-2007 578,676 6,066,176
December-2007 986,056 7,052,232
January-2008 1,531,492 8,583,724
February-2008 (643,076) 7,940,648
March-2008 931,924 8,872,572
April-2008 931,924 9,804,496
May-2008 (441,316) 9,363,180
June-2008 257,356 9,620,536
July-2008 2,065,308 11,685,844
August-2008 (364,260) 11,321,584
September-2008 1,265,596 12,587,180
October-2008 565,596 13,152,776
November-2008 (271,236) 12,881,540
December-2008 (789,344) 12,092,196
Page 154
Net Cash Movement
Thousands
1,000
2,000
3,000
4,000
5,000
6,000
(3,000)
(2,000)
(1,000)
June-2006
July-2006
August-2006
September-2006
October-2006
November-2006
December-2006
January-2007
February-2007
March-2007
April-2007
May-2007
June-2007
July-2007
August-2007
September-2007
October-2007
November-2007
December-2007
January-2008
February-2008
March-2008
April-2008
May-2008
June-2008
July-2008
August-2008
September-2008
October-2008
November-2008
December-2008
0
2
4
6
8
10
12
14
Millions
Cash Balance
Cash
Balance
Balance
Change in
Ending Cash
Page 155
15.8 Projected Balance Sheet
15.8.1 Annual Balance Sheet

as at 31st December of Period (in terms of S$1)

SHARE CAPITAL
Issued and Paid Up 6,000,000.0 6,000,000.0 6,000,000.0
RESERVES
Accumulated Profits (Loss) (2,755,168.3) 5,515,840.1 13,841,970.9
SHARE CAPITAL & RESERVES 3,244,831.7 11,515,840.1 19,841,970.9
DEFERRED TAXATION 0.0 0.0 0.0
LONG TERM LIABLITIES 0.0 0.0 0.0
3,244,831.7 11,515,840.1 19,841,970.9
Represented by:
FIXED ASSETS
Land and Buildings 0.0 0.0 0.0
Less: Accumulated Depreciation 0.0 0.0 0.0
Equipment and Machinery 29,500.0 29,500.0 29,500.0
Less: Accumulated Depreciation 3,441.7 9,341.7 15,241.7
Transportation Vehicles 280,000.0 280,000.0 280,000.0
Office Furnitures 30,000.0 30,000.0 30,000.0
Others 0.0 0.0 0.0
299,891.7 231,991.7 164,091.7
LONG TERM INVESTMENTS
CURRENT ASSETS
Tax Pre-payments 0.0 0.0 0.0
Inventory / Stocks 30,000.0 30,000.0 30,000.0
Trade Debtors 0.0 5,175,000.0 9,025,000.0
Investments 0.0 0.0 0.0
Cash and Bank Balances (Overdrafts) 2,914,940.0 7,052,232.0 12,092,196.5
2,944,940.0 12,257,232.0 21,147,196.5
Less: CURRENT LIABILITIES
Current Tax Payable 0.0 973,383.5 1,469,317.2
Trade Creditors 0.0 0.0 0.0
Loan - repayable within 1 year 0.0 0.0 0.0
0.0 973,383.5 1,469,317.2
NET CURRENT ASSETS/(LIABILITIES) 2,944,940.0 11,283,848.5 19,677,879.3

3,244,831.7 11,515,840.1 19,841,970.9
Page 156
Page 157
Amount (S$) Revenue (S$)
Amount (S$)
Millions
Millions
Millions
0
10
20
30
40
50
60
January-2009
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
0.0
5.0
10.0
15.0
20.0
25.0
February-2009
March-2009
April-2009
May-2009
June-2009
July-2009
August-2009
September-
October-2009
Year 2009
November-2009
December-2009
Year 2009
January-2010
February-2010
March-2010
April-2010
May-2010
June-2010
Year
July-2010
Year 2010
August-2010
Month Number
September-
Year
October-2010
November-2010
Year 2010
December-2010
January-2011
February-2011
March-2011
April-2011
May-2011
Year 2011
June-2011
16.1 Summary of Financial Standing
July-2011
Cash Flow Summary

Project Revenue and Profits
August-2011
September-
0.0
2.0
4.0
6.0
8.0
October-2011
10.0
12.0
14.0
16.0
18.0
Year 2011
November-2011
December-2011
Millions
Net Profit (S$)
Cash
& Bank
REVENUE
Balance
Net Cash
AFTER TAX
Financing
NET PROFIT
Accumulative
Provided by
Profit (Loss)
Net Increase
Ending Cash
(Decrease) in
Page 158
16.2 One-Time-Off Purchase
in terms of (S$)
Description Amount
1 Additional Legal/Administrative Fees 0.00
2 Equipment Purchase 327,800.00

a Office Furnitures 20,000.00
b Computers & Peripherals 20,000.00
c Softwares 5,000.00
d Fax Machines / Telephones 300.00
e Photocopying Machines 2,000.00
f Stationery 500.00
g Commercial Vehicle 280,000.00
3 Licenses, Permits & Patents 10,000.00
4 Phase II Initial Advertising Costs 3,000,000.00
5 Additional Inventory 150,000.00
TOTAL AMOUNT: 3,487,800.00
Page 159
16.3 Operating Expenditure

Phase II (36 Months)

Salesperson 40 40 40 40 40 40

Technician 40 40 40 40 40 40
Company Size: 116 116 116 116 116 116


Salesperson 40 40 40 40 40 40

Technician 45 45 45 45 50 50
Company Size: 129 129 129 129 134 136

Page 160

Salesperson 40 40 40 40 40 40

Technician 50 50 50 50 50 50
Deliveryman 10 10 10 10 10 10
Company Size: 136 136 136 136 136 136


Salesperson 40 40 40 40 40 40

Technician 60 60 60 60 60 60
Deliveryman 10 10 10 10 10 12
Company Size: 146 146 146 146 146 148

Page 161

Salesperson 40 40 40 40 40 40

Technician 70 70 70 70 70 70
Deliveryman 12 12 12 12 12 12
Company Size: 167 167 167 167 167 167


Salesperson 80 80 80 80 80 80

Technician 80 80 80 80 80 80
Deliveryman 12 12 12 12 12 12
Company Size: 222 222 222 222 222 222

Page 162
16.3.2 Inventory Costs
16.3.2.1 Add-On Package Set 1
USD USD SGD

7 VOIP Phone 500.00 1 500.00 800.00
8 Media adapter 250.00 3 750.00 1,200.00
16 Wireless Glassbreak Sensor 120.00 6 720.00 1,152.00
TOTAL AMOUNT: 5,718.20 9,149.12
Page 163
USD USD SGD

7 VOIP Phone 500.00 1 500.00 800.00
8 Media adapter 250.00 3 750.00 1,200.00
16 Smarthome Wireless Colour Camera 290.00 4 1,160.00 1,856.00
17 Wireless Smoke Detector 110.00 6 660.00 1,056.00
18 Carbon Monoxide Alarm 88.00 1 88.00 140.80
TOTAL AMOUNT: 6,906.20 11,049.92
Page 164
USD USD SGD

7 VOIP Phone 500.00 1 500.00 800.00
8 Media adapter 250.00 3 750.00 1,200.00
16 Wireless Smoke Detector 110.00 6 660.00 1,056.00
17 Carbon Monoxide Alarm 88.00 1 88.00 140.80
18 Digital Distribution center 1,991.95 1 1,991.95 3,187.12
TOTAL AMOUNT: 7,738.15 12,381.04
Page 165
Projected Amount in (S$)
YEAR 2009
Set 1 Quantity 330 315 330 330 345 360

Costs Per Set 9149.12 9149.12 9149.12 9149.12 9149.12 9149.12
Set 2 Quantity 440 420 440 440 460 480

Costs Per Set 11049.92 11049.92 11049.92 11049.92 11049.92 11049.92
Set 3 Quantity 330 315 330 330 345 360

Costs Per Set 12381.04 12381.04 12381.04 12381.04 12381.04 12381.04
Set 1 Quantity 390 345 360 375 420 480.6

Costs Per Set 9149.12 9149.12 9149.12 9149.12 9149.12 9149.12
Set 2 Quantity 520 460 480 500 560 640.8

Costs Per Set 11049.92 11049.92 11049.92 11049.92 11049.92 11049.92
Set 3 Quantity 390 345 360 375 420 480.6

Costs Per Set 12381.04 12381.04 12381.04 12381.04 12381.04 12381.04
Page 166
YEAR 2010
Set 1 Quantity 540 490.2 495 525 555 600

Costs Per Set 9149.12 9149.12 9149.12 9149.12 9149.12 9149.12
Set 2 Quantity 720 653.6 660 700 740 800

Costs Per Set 11049.92 11049.92 11049.92 11049.92 11049.92 11049.92
Set 3 Quantity 540 490.2 495 525 555 600

Costs Per Set 12381.04 12381.04 12381.04 12381.04 12381.04 12381.04
Set 1 Quantity 630 600 600 675 750 840

Costs Per Set 9149.12 9149.12 9149.12 9149.12 9149.12 9149.12
Set 2 Quantity 840 800 800 900 1000 1120

Costs Per Set 11049.92 11049.92 11049.92 11049.92 11049.92 11049.92
Set 3 Quantity 630 600 600 675 750 840

Costs Per Set 12381.04 12381.04 12381.04 12381.04 12381.04 12381.04
Page 167
YEAR 2011
Set 1 Quantity 960 750 690 750 840 930

Costs Per Set 9149.12 9149.12 9149.12 9149.12 9149.12 9149.12
Set 2 Quantity 1280 1000 920 1000 1120 1240

Costs Per Set 11049.92 11049.92 11049.92 11049.92 11049.92 11049.92
Set 3 Quantity 960 750 690 750 840 930

Costs Per Set 12381.04 12381.04 12381.04 12381.04 12381.04 12381.04
Set 1 Quantity 810 690 750 950.4 1020 1080

Costs Per Set 9149.12 9149.12 9149.12 9149.12 9149.12 9149.12
Set 2 Quantity 1080 920 1000 1267.2 1360 1440

Costs Per Set 11049.92 11049.92 11049.92 11049.92 11049.92 11049.92
Set 3 Quantity 810 690 750 950.4 1020 1080

Costs Per Set 12381.04 12381.04 12381.04 12381.04 12381.04 12381.04
Page 168
For the Period: Jan 2009 - May 2011
Description Amount
# Office & Warehouse Rental 60,000.00
# Utility Bills 20,000.00
Page 169
For the Period: Jun 2011 - May 2011
Description Amount
# Office & Warehouse Rental 60,000.00
# Utility Bills 20,000.00
Page 170
16.4 Sales Forecast
Year 2009

Units demanded for set A 330 315 330 330 345 360
Units demanded for set B 440 420 440 440 460 480
Units demanded for set C 330 315 330 330 345 360

Units demanded for set A 390 345 360 375 420 480.6
Units demanded for set B 520 460 480 500 560 640.8
Units demanded for set C 390 345 360 375 420 480.6
Year 2010

Units demanded for set A 540 490.2 495 525 555 600
Units demanded for set B 720 653.6 660 700 740 800
Units demanded for set C 540 490.2 495 525 555 600

Page 171
Year 2011


Units demanded for set A 810 690 750 950.4 1020 1080
Units demanded for set B 1080 920 1000 1267.2 1360 1440
Units demanded for set C 810 690 750 950.4 1020 1080
Page 172
Year 2009

Units demanded for Package 1 330 315 330 330 345 360
Unit Revenue for Package 1 10,613.0 10,613.0 10,613.0 10,613.0 10,613.0 10,613.0
Total Revenue from Package 1 3,502,283.1 3,343,088.4 3,502,283.1 3,502,283.1 3,661,477.8 3,820,672.5
TOTAL REVENUE 13,881,624.4 13,250,641.5 13,881,624.4 13,881,624.4 14,512,607.3 15,143,590.3

Units demanded for Package 1 390 345 360 375 420 480.6
TOTAL REVENUE 16,405,556.1 14,512,607.3 15,143,590.3 15,774,573.2 17,667,522.0 20,216,693.0
Page 173
Year 2010

Units demanded for Package 1 540 490.2 495 525 555 600
Unit Revenue for Package 1 10105.20304 10105.20304 10105.20304 10105.20304 10105.20304 10105.20304
Total Revenue from Package 1 5456809.642 4953570.53 5002075.505 5305231.596 5608387.687 6063121.824
TOTAL REVENUE 21628571.71 19633936.76 19826190.73 21027778.05 22229365.37 24031746.34

TOTAL REVENUE 25233333.66 24031746.34 24031746.34 27035714.64 30039682.93 33644444.88
Page 174
Year 2011

Total Revenue from Package 2 15374416.69 12011263.04 11050362 12011263.04 13452614.6 14893966.17
Total Revenue from Package 3 12919862.86 10093642.86 9286151.431 10093642.86 11304880 12516117.15
TOTAL REVENUE 37841569.25 29563725.98 27198627.9 29563725.98 33111373.1 36659020.22

Units demanded for Package 1 810 690 750 950.4 1020 1080
Total Revenue from Package 2 12972164.08 11050362 12011263.04 15220672.52 16335317.73 17296218.78
TOTAL REVENUE 31928824.06 27198627.9 29563725.98 37463153.56 40206667.33 42571765.41
Page 175
16.5 Projected Income
Revenue and Profits Trend

450.0
Millions
400.0
350.0 REVENUE
Amount (S$)
300.0
250.0
GROSS
200.0 PROFIT
150.0
100.0 PROFIT
50.0 BEFORE
TAXATION
0.0
Year 2009 Year 2010 Year 2011 NET PROFIT
AFTER TAX
Year
Revenue, Expenses & Profit Trend

450.0
Millions
400.0
REVENUE
350.0
Amount (S$)
300.0
Costs of Goods
250.0
200.0 OPERATING
150.0 EXPENSES
100.0 NET PROFIT

AFTER TAX
50.0
0.0
Year
Page 176
16.5.1 Annual Income Statements
(in terms of S$1)

REVENUE 184,272,254.3 292,394,257.8 402,870,806.7
Costs of Goods 158,855,391.6 264,729,975.3 370,626,317.1
GROSS PROFIT 25,416,862.7 27,664,282.4 32,244,489.6
OPERATING EXPENSES 12,004,620.0 9,544,460.0 10,959,491.7

Staff Costs 4,061,160.0 4,611,000.0 6,065,640.0
Auto Expenses 360,000.0 360,000.0 360,000.0
Depreciation 133,460.0 133,460.0 93,851.7
Office Rental 720,000.0 720,000.0 720,000.0
Advertising 5,160,000.0 2,160,000.0 2,160,000.0
Insurance 360,000.0 360,000.0 360,000.0
Professional Fees 240,000.0 240,000.0 240,000.0
Utility Bills 240,000.0 240,000.0 240,000.0
Travel & Entertainment 480,000.0 480,000.0 480,000.0
Licenses/Permits/Patents Expense 10,000.0 0.0 0.0
Maintenance & Repair 240,000.0 240,000.0 240,000.0
PROFIT BEFORE TAXATION 13,412,242.7 18,119,822.4 21,284,997.9

Taxation Expenses* 2,682,448.5 3,623,964.5 4,256,999.6
NET PROFIT AFTER TAX 10,729,794.1 14,495,857.9 17,027,998.3
*Corporate Income Tax - refer to Appendix C for more information.

Notice of Assessment assumed to be issued on May of following Year.
Page 177
(in terms of S$1)
REVENUE 13,881,624.4 13,250,641.5 13,881,624.4 13,881,624.4 14,512,607.3 15,143,590.3

Costs of Goods 11,966,917.6 11,422,966.8 11,966,917.6 11,966,917.6 12,510,868.4 13,054,819.2
GROSS PROFIT 1,914,706.8 1,827,674.7 1,914,706.8 1,914,706.8 2,001,738.9 2,088,771.1
OPERATING EXPENSES 3,693,141.7 683,141.7 683,141.7 683,141.7 683,141.7 955,161.7

Staff Costs 272,020.0 272,020.0 272,020.0 272,020.0 272,020.0 544,040.0
Auto Expenses 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Depreciation 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7
Office Rental 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0
Advertising 3,180,000.0 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0
Insurance 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Utility Bills 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0
Licenses/Permits/Patents 10,000.0 0.0 0.0 0.0 0.0 0.0
Maintenance & Repair 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0
PROFIT BEFORE TAXATION (1,778,434.9) 1,144,533.0 1,231,565.1 1,231,565.1 1,318,597.3 1,133,609.4

NET PROFIT AFTER TAX (1,778,434.9) 1,144,533.0 1,231,565.1 1,231,565.1 1,318,597.3 1,133,609.4
REVENUE 16,405,556.1 14,512,607.3 15,143,590.3 15,774,573.2 17,667,522.0 20,216,693.0

Costs of Goods 14,142,720.8 12,510,868.4 13,054,819.2 13,598,770.0 15,230,622.4 17,428,183.6
GROSS PROFIT 2,262,835.3 2,001,738.9 2,088,771.1 2,175,803.2 2,436,899.6 2,788,509.4
OPERATING EXPENSES 713,301.7 713,301.7 713,301.7 713,301.7 724,901.7 1,045,641.7

Staff Costs 302,180.0 302,180.0 302,180.0 302,180.0 313,780.0 634,520.0
Auto Expenses 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Depreciation 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7
Office Rental 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0
Advertising 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0
Insurance 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Utility Bills 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0
Licenses/Permits/Patents 0.0 0.0 0.0 0.0 0.0 0.0
PROFIT BEFORE TAXATION 1,549,533.7 1,288,437.3 1,375,469.4 1,462,501.5 1,711,997.9 1,742,867.7

NET PROFIT AFTER TAX 1,549,533.7 1,288,437.3 1,375,469.4 1,462,501.5 1,711,997.9 (939,580.8)
Page 178
(in terms of S$1)
REVENUE 21,628,571.7 19,633,936.8 19,826,190.7 21,027,778.1 22,229,365.4 24,031,746.3

Costs of Goods 19,582,228.8 17,776,312.1 17,950,376.4 19,038,278.0 20,126,179.6 21,758,032.0
GROSS PROFIT 2,046,342.9 1,857,624.6 1,875,814.3 1,989,500.1 2,103,185.8 2,273,714.3

Staff Costs 317,260.0 317,260.0 317,260.0 317,260.0 317,260.0 634,520.0
Auto Expenses 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Depreciation 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7
Office Rental 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0
Advertising 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0
Insurance 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Utility Bills 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0

NET PROFIT AFTER TAX 1,317,961.2 1,129,243.0 1,147,432.7 1,261,118.4 1,374,804.1 1,228,072.7
REVENUE 25,233,333.7 24,031,746.3 24,031,746.3 27,035,714.6 30,039,682.9 33,644,444.9

Costs of Goods 22,845,933.6 21,758,032.0 21,758,032.0 24,477,786.0 27,197,540.0 30,461,244.8
GROSS PROFIT 2,387,400.1 2,273,714.3 2,273,714.3 2,557,928.6 2,842,142.9 3,183,200.1

Staff Costs 340,460.0 340,460.0 340,460.0 340,460.0 340,460.0 687,880.0
Auto Expenses 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Depreciation 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7
Office Rental 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0
Advertising 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0
Insurance 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Utility Bills 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0

NET PROFIT AFTER TAX 1,635,818.4 1,522,132.7 1,522,132.7 1,806,347.0 2,090,561.3 (1,539,766.1)
Page 179
(in terms of S$1)
REVENUE 37,841,569.3 29,563,726.0 27,198,627.9 29,563,726.0 33,111,373.1 36,659,020.2

Costs of Goods 34,812,851.2 27,197,540.0 25,021,736.8 27,197,540.0 30,461,244.8 33,724,949.6
GROSS PROFIT 3,028,718.1 2,366,186.0 2,176,891.1 2,366,186.0 2,650,128.3 2,934,070.6

Staff Costs 388,020.0 388,020.0 388,020.0 388,020.0 388,020.0 776,040.0
Auto Expenses 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Depreciation 11,121.7 11,121.7 11,121.7 11,121.7 11,121.7 5,463.3
Office Rental 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0
Advertising 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0
Insurance 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Utility Bills 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0

NET PROFIT AFTER TAX 2,229,576.4 1,567,044.3 1,377,749.4 1,567,044.3 1,850,986.6 1,752,567.3
REVENUE 31,928,824.1 27,198,627.9 29,563,726.0 37,463,153.6 40,206,667.3 42,571,765.4

Costs of Goods 29,373,343.2 25,021,736.8 27,197,540.0 34,464,722.7 36,988,654.4 39,164,457.6
GROSS PROFIT 2,555,480.9 2,176,891.1 2,366,186.0 2,998,430.9 3,218,012.9 3,407,307.8

Staff Costs 478,500.0 478,500.0 478,500.0 478,500.0 478,500.0 957,000.0
Auto Expenses 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Depreciation 5,463.3 5,463.3 5,463.3 5,463.3 5,463.3 5,463.3
Office Rental 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0 60,000.0
Advertising 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0 180,000.0
Insurance 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0 30,000.0
Utility Bills 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0 20,000.0

NET PROFIT AFTER TAX 1,671,517.5 1,292,927.8 1,482,222.6 2,114,467.5 2,334,049.6 (2,212,155.1)
Page 180
16.5.3 Monthly Net Profits (Losses) Analysis
(in terms of S$1)
Month Revenue Net Profit (Loss) Net Profit Margin
January-2009 13,881,624.4 (1,778,434.9) -13%

February-2009 13,250,641.5 1,144,533.0 9%
March-2009 13,881,624.4 1,231,565.1 9%
April-2009 13,881,624.4 1,231,565.1 9%
May-2009 14,512,607.3 1,318,597.3 9%
June-2009 15,143,590.3 1,133,609.4 7%
July-2009 16,405,556.1 1,549,533.7 9%
August-2009 14,512,607.3 1,288,437.3 9%
September-2009 15,143,590.3 1,375,469.4 9%
October-2009 15,774,573.2 1,462,501.5 9%
November-2009 17,667,522.0 1,711,997.9 10%
December-2009 20,216,693.0 (939,580.8) -5%
January-2010 21,628,571.7 1,317,961.2 6%
February-2010 19,633,936.8 1,129,243.0 6%
March-2010 19,826,190.7 1,147,432.7 6%
April-2010 21,027,778.1 1,261,118.4 6%
May-2010 22,229,365.4 1,374,804.1 6%
June-2010 24,031,746.3 1,228,072.7 5%
July-2010 25,233,333.7 1,635,818.4 6%
August-2010 24,031,746.3 1,522,132.7 6%
September-2010 24,031,746.3 1,522,132.7 6%
October-2010 27,035,714.6 1,806,347.0 7%
November-2010 30,039,682.9 2,090,561.3 7%
December-2010 33,644,444.9 (1,539,766.1) -5%
January-2011 37,841,569.3 2,229,576.4 6%
February-2011 29,563,726.0 1,567,044.3 5%
March-2011 27,198,627.9 1,377,749.4 5%
April-2011 29,563,726.0 1,567,044.3 5%
May-2011 33,111,373.1 1,850,986.6 6%
June-2011 36,659,020.2 1,752,567.3 5%
July-2011 31,928,824.1 1,671,517.5 5%
August-2011 27,198,627.9 1,292,927.8 5%
September-2011 29,563,726.0 1,482,222.6 5%
October-2011 37,463,153.6 2,114,467.5 6%
November-2011 40,206,667.3 2,334,049.6 6%
December-2011 42,571,765.4 (2,212,155.1) -5%
Page 181
Amount (S$)
Millions
-3
-2
-1
0
1
2
3
January-2009
February-2009
March-2009
April-2009
May-2009
June-2009
July-2009
August-2009
September-2009
October-2009
November-2009
December-2009
January-2010
February-2010
March-2010
April-2010
May-2010
16.5.4 Monthly Net Profits (Losses) Graphical
June-2010
July-2010
August-2010
Month Number
September-2010
October-2010
Profit Versus Time
November-2010
December-2010
January-2011
February-2011
March-2011
April-2011
May-2011
June-2011
July-2011
August-2011
September-2011
October-2011
November-2011
December-2011
(Loss)
Net Profit
Page 182
16.6 Accumulative Profit Analysis
16.6.1 Accumulative Profit / Loss Data

in terms of S$1
Month Accumulative Profit (Loss)
January-2009 12,063,536.1
February-2009 13,208,069.1
March-2009 14,439,634.2
April-2009 15,671,199.4
May-2009 16,989,796.7
June-2009 18,123,406.1
July-2009 17,183,825.3
August-2009 18,472,262.5
September-2009 19,847,731.9
October-2009 21,310,233.5
November-2009 23,022,231.4
December-2009 22,082,650.6
January-2010 18,501,786.5
February-2010 19,631,029.4
March-2010 20,778,462.1
April-2010 22,039,580.5
May-2010 23,414,384.6
June-2010 24,642,457.3
July-2010 26,278,275.7
August-2010 27,800,408.3
September-2010 29,322,541.0
October-2010 31,128,888.0
November-2010 33,219,449.3
December-2010 31,679,683.2
January-2011 33,909,259.6
February-2011 35,476,303.9
March-2011 36,854,053.3
April-2011 38,421,097.6
May-2011 40,272,084.3
June-2011 42,024,651.6
July-2011 43,696,169.1
August-2011 44,989,096.8
September-2011 46,471,319.5
October-2011 48,585,787.0
November-2011 50,919,836.6
December-2011 48,707,681.5
Page 183
Amount (S$)
Millions
0
10
20
30
40
50
60
January-2009
February-2009
March-2009
April-2009
May-2009
June-2009
July-2009
August-2009
September-
October-2009
November-2009
December-2009
January-2010
February-2010
March-2010
April-2010
16.6.2 Accumulative Profit / Loss Graph
May-2010
June-2010
July-2010
August-2010
September-
Month Number
October-2010
November-2010
December-2010
January-2011
February-2011
March-2011
April-2011
May-2011
June-2011
July-2011
August-2011
September-
October-2011
November-2011
December-2011
Accumulative
Profit (Loss)
Page 184
16.7 Projected Cash Flow
Cash Flow Summary

25.0
Millions
Net Cash
Provided by
20.0 Operations
Cash Value (S$1)
Net Cash
Provided by
15.0 Investments
Net Cash
Provided by
10.0 Financing
Net Increase
(Decrease) in
5.0 Cash
Ending Cash &
Bank Balance
0.0

(5.0)
Year
Page 185
16.7.1 Annual Cash Flow Statements
(in terms of S$1)
Net Profit Before Tax 13,412,242.7 18,119,822.4 21,284,997.9
before tax to net cash provided (12,677,550.2) (15,976,740.4) (12,457,433.3)
Net Cash Provided by Operations 734,692.4 2,143,082.0 8,827,564.6
Purchase of Investments 0.0 0.0 0.0
Purchase of Property & Equipment (PE) (327,800.0) 0.0 0.0
Proceeds from Sale of Investments 0.0 0.0 0.0
Proceeds from Sale of PE 0.0 0.0 0.0
Net Cash Provided by Investments (327,800.0) 0.0 0.0
Proceeds from issuance of shares 0.0 0.0 0.0
Additional Borrowings (Repayments) 0.0 0.0 0.0
Dividends Paid to Shareholders 0.0 0.0 0.0
Net Cash Provided by Financing 0.0 0.0 0.0
Net Increase (Decrease) in Cash 406,892.4 2,143,082.0 8,827,564.6

Starting Cash & Bank Balance 12,092,196.5 12,499,088.9 14,642,170.9
Ending Cash & Bank Balance 12,499,088.9 14,642,170.9 23,469,735.5
Page 186
(in terms of S$1)
Net Profit Before Tax (1,778,434.9) 1,144,533.0 1,231,565.1 1,231,565.1 1,318,597.3 1,133,609.4
before tax to net cash provided (4,995,502.7) 642,104.6 (619,861.3) 11,121.7 (2,089,178.5) (619,861.3)
Net Cash Provided by Operations (6,773,937.6) 1,786,637.6 611,703.9 1,242,686.8 (770,581.2) 513,748.1
Purchase of Investments 0.0 0.0 0.0 0.0 0.0 0.0
Purchase of Property & Equipment (327,800.0) 0.0 0.0 0.0 0.0 0.0
Proceeds from Sale of Investments 0.0 0.0 0.0 0.0 0.0 0.0
Proceeds from Sale of PE 0.0 0.0 0.0 0.0 0.0 0.0
Net Cash Provided by Investments (327,800.0) 0.0 0.0 0.0 0.0 0.0
Proceeds from issuance of shares 0.0 0.0 0.0 0.0 0.0 0.0
Additional Borrowings (Repayments 0.0 0.0 0.0 0.0 0.0 0.0
Dividends Paid to Shareholders 0.0 0.0 0.0 0.0 0.0 0.0
Net Cash Provided by Financing 0.0 0.0 0.0 0.0 0.0 0.0
Net Increase (Decrease) in Cash (7,101,737.6) 1,786,637.6 611,703.9 1,242,686.8 (770,581.2) 513,748.1
Starting Cash & Bank Balance ***** 12,092,196.5 4,990,458.8 6,777,096.5 7,388,800.4 8,631,487.2 7,860,906.0
Ending Cash & Bank Balance 4,990,458.8 6,777,096.5 7,388,800.4 8,631,487.2 7,860,906.0 8,374,654.1
Net Profit Before Tax 1,549,533.7 1,288,437.3 1,375,469.4 1,462,501.5 1,711,997.9 1,742,867.7
before tax to net cash provided (1,250,844.2) 1,904,070.5 (619,861.3) (619,861.3) (1,881,827.1) (2,538,049.4)
Net Cash Provided by Operations 298,689.5 3,192,507.7 755,608.1 842,640.3 (169,829.2) (795,181.6)
Purchase of Property & Equipment 0.0 0.0 0.0 0.0 0.0 0.0
Net Cash Provided by Investments 0.0 0.0 0.0 0.0 0.0 0.0
Net Increase (Decrease) in Cash 298,689.5 3,192,507.7 755,608.1 842,640.3 (169,829.2) (795,181.6)
Starting Cash & Bank Balance 8,374,654.1 8,673,343.6 11,865,851.3 12,621,459.5 13,464,099.7 13,294,270.5
Page 187
(in terms of S$1)
before tax to net cash provided (1,400,757.0) 2,005,756.6 (181,132.3) (1,190,465.7) (3,872,914.2) (1,791,259.3)
Net Cash Provided by Operations (82,795.8) 3,134,999.6 966,300.4 70,652.7 (2,498,110.1) (563,186.6)
Net Increase (Decrease) in Cash (82,795.8) 3,134,999.6 966,300.4 70,652.7 (2,498,110.1) (563,186.6)
before tax to net cash provided (1,190,465.7) 1,212,709.0 11,121.7 (2,992,846.6) (2,992,846.6) (3,593,640.3)
Net Cash Provided by Operations 445,352.7 2,734,841.7 1,533,254.3 (1,186,499.7) (902,285.4) (1,509,441.9)
Net Increase (Decrease) in Cash 445,352.7 2,734,841.7 1,533,254.3 (1,186,499.7) (902,285.4) (1,509,441.9)
Page 188
(in terms of S$1)
before tax to net cash provided (4,186,002.7) 8,288,964.9 2,376,219.7 (2,353,976.4) (7,160,489.9) (3,542,183.8)
Net Cash Provided by Operations (1,956,426.3) 9,856,009.3 3,753,969.2 (786,932.1) (5,309,503.3) (1,789,616.5)
Net Increase (Decrease) in Cash (1,956,426.3) 9,856,009.3 3,753,969.2 (786,932.1) (5,309,503.3) (1,789,616.5)
before tax to net cash provided 4,735,659.5 4,735,659.5 (2,359,634.7) (7,893,964.2) (2,738,050.4) (2,359,634.7)
Net Cash Provided by Operations 6,407,177.0 6,028,587.3 (877,412.1) (5,779,496.7) (404,000.8) (314,790.3)
Net Increase (Decrease) in Cash 6,407,177.0 6,028,587.3 (877,412.1) (5,779,496.7) (404,000.8) (314,790.3)
Page 189
Net Cash Movement
Millions
-8
-6
-4
-2
0
2
4
6
8
10
12
January-2009
February-2009
March-2009
April-2009
May-2009
June-2009
July-2009
August-2009
September-2009
October-2009
November-2009
December-2009
January-2010
February-2010
March-2010
April-2010
May-2010
June-2010
July-2010
August-2010
September-2010
October-2010
November-2010
December-2010
January-2011
February-2011
March-2011
April-2011
May-2011
June-2011
July-2011
August-2011
September-2011
October-2011
November-2011
December-2011
0
5
10
15
20
25
30
35
Millions
Cash Balance
Cash
Balance
Balance
Change in
Ending Cash
Page 190
(in terms of S$1)
Month Change in Cash Balance Ending Cash Balance
January-2009 (7,101,737.6) 4,990,458.8

February-2009 1,786,637.6 6,777,096.5
March-2009 611,703.9 7,388,800.4
April-2009 1,242,686.8 8,631,487.2
May-2009 (770,581.2) 7,860,906.0
June-2009 513,748.1 8,374,654.1
July-2009 298,689.5 8,673,343.6
August-2009 3,192,507.7 11,865,851.3
September-2009 755,608.1 12,621,459.5
October-2009 842,640.3 13,464,099.7
November-2009 (169,829.2) 13,294,270.5
December-2009 (795,181.6) 12,499,088.9
January-2010 (82,795.8) 12,416,293.1
February-2010 3,134,999.6 15,551,292.7
March-2010 966,300.4 16,517,593.0
April-2010 70,652.7 16,588,245.8
May-2010 (2,498,110.1) 14,090,135.7
June-2010 (563,186.6) 13,526,949.1
July-2010 445,352.7 13,972,301.8
August-2010 2,734,841.7 16,707,143.5
September-2010 1,533,254.3 18,240,397.8
October-2010 (1,186,499.7) 17,053,898.2
November-2010 (902,285.4) 16,151,612.8
December-2010 (1,509,441.9) 14,642,170.9
January-2011 (1,956,426.3) 12,685,744.6
February-2011 9,856,009.3 22,541,753.9
March-2011 3,753,969.2 26,295,723.0
April-2011 (786,932.1) 25,508,790.9
May-2011 (5,309,503.3) 20,199,287.6
June-2011 (1,789,616.5) 18,409,671.1
July-2011 6,407,177.0 24,816,848.1
August-2011 6,028,587.3 30,845,435.4
September-2011 (877,412.1) 29,968,023.3
October-2011 (5,779,496.7) 24,188,526.6
November-2011 (404,000.8) 23,784,525.8
December-2011 (314,790.3) 23,469,735.5
Page 191
16.8 Projected Balance Sheets
16.8.1 Annual Balance Sheet

as at 31st December of Period (in terms of S$1)

SHARE CAPITAL
Issued and Paid Up 6,000,000.0 6,000,000.0 6,000,000.0
RESERVES
Accumulated Profits (Loss) 24,571,765.0 39,067,623.0 56,095,621.3
SHARE CAPITAL & RESERVES 30,571,765.0 45,067,623.0 62,095,621.3
DEFERRED TAXATION 0.0 0.0 0.0
LONG TERM LIABLITIES 0.0 0.0 0.0
30,571,765.0 45,067,623.0 62,095,621.3
Represented by:
FIXED ASSETS
Land and Buildings 0.0 0.0 0.0
Less: Accumulated Depreciation 0.0 0.0 0.0
Equipment and Machinery 57,300.0 57,300.0 57,300.0
Transportation Vehicles 560,000.0 560,000.0 560,000.0
Office Furnitures 50,000.0 50,000.0 50,000.0
Others 0.0 0.0 0.0
358,431.7 224,971.7 131,120.0
LONG TERM INVESTMENTS
CURRENT ASSETS
Tax Pre-payments 0.0 0.0 0.0
Inventory / Stocks 180,000.0 180,000.0 180,000.0
Trade Debtors 20,216,693.0 33,644,444.9 42,571,765.4
Investments 0.0 0.0 0.0
Cash and Bank Balances (Overdrafts) 12,499,088.9 14,642,170.9 23,469,735.5
32,895,781.9 48,466,615.8 66,221,500.9
Less: CURRENT LIABILITIES
Current Tax Payable 2,682,448.5 3,623,964.5 4,256,999.6
Trade Creditors 0.0 0.0 0.0
Loan - repayable within 1 year 0.0 0.0 0.0
2,682,448.5 3,623,964.5 4,256,999.6
NET CURRENT ASSETS/(LIABILITIES) 30,213,333.4 44,842,651.3 61,964,501.3
30,571,765.0 45,067,623.0 62,095,621.3
Page 192
17 Phase III:
As the company progresses towards phase 3, the company is expecting more
competition at the home ground, and a more saturated market which has its
growth limited to the growing rate of households in Singapore. Birth rates in
Singapore are well known for being low.
Hence, the company has made preparations in Phase 2, to employ more

personnel to help further expand the company oversea. These employees will
comprise of a mix of young people - who are creative and can adapt well to
changing environment – and experienced staff who are more familiar with the
operations of the company. They will be posted overseas for familiarization of the
context they are in so as to position the company favorably when the companies
embarks on it’s expansion.
As such, the company is not planning to give a financial projection of Phase III
and ‘decline stage’ at this point in time. For the latter, it is because the company
is continuously positioning itself for growth. Even though the company may face
a decline in Singapore eventually, the slow decline rate (thanks to the company’s
well-planned and responsive measures) is more than compensated by the strong
growth overseas. For the former, as the company needs more time to research
the local conditions for the various cities out of Singapore, the company is only
able to come out with a fairly accurate projection by the end of Phase I period
(Dec 2008).
Page 193
APPENDIX
Appendix A
1)
2)
3)
4)
5)
6)
7)
8)
9)
Appendix B
Market Survey Results

1. What is your age group?
19% 22%
20-25
26-35
36-45
25% 46 and above
34%
2. I welcome new technology in my home because it saves me time and effort.
7%
19%
11%
Strongly Agree
Agree
Neutral
18%
Disagree
Strong Disagree
45%
3. Having more gadgets in the home makes life fun.
11% 13%
Strongly Agree
Agree
24%
Neutral
Disagree
39% Strongly Disagree
13%
4. I find it difficult to keep up with the latest technology for the home.
12% 14%
Strongly Agree
Agree
26% Neutral
Disagree
32%
Strongly Disagree
16%
5. I am concerned about how complicated all the new technology will be to use.
18% 15%
Strongly Agree
Agree
Neutral
20% Disagree
13%
6. I do not see the need for more technology in my home.
11%
21%
15% Strongly Agree

Agree
Neutral
Disagree
41%
7. Being able to control devices in the home when I was out would be really useful
to me.
10%
21%
14%
Strongly Agree
Agree
Neutral
Disagree
40%
8. I would really value the safety and security features a smart home could offer
8%
22%
10%
Strongly Agree
Agree
15% Neutral
Disagree
Strongly Disagree
45%
9. I would like to have smart digital entertainment system at home such as wireless
media player which could stream media content from PC.
9%
25%
12%
Strongly Agree
Agree
Neutral
14% Disagree
Strongly Disagree
40%
10. I like the idea of one remote control that could control everything in the home.
14% 19%
Strongly Agree
Agree
20%
Neutral
Disagree
Strongly Disagree
34%
13%
11. A smart home appeals to me because it would save me time and effort.
9%
16%
Strongly Agree
24% Agree
Neutral
Disagree
Strongly Disagree
34%
17%
12. I would be concerned about technical hitches and things going wrong.
8%
22%
10%
Strongly Agree
Agree
15% Neutral
Disagree
Strongly Disagree
45%
13. I would worry about the system being difficult to override.
6%
15%
24% Strongly Agree

Agree
Neutral
Disagree
Strongly Disagree
40%
15%
14. I would worry that the system would be too complex.
7%
17%
24% Strongly Agree

Agree
Neutral
Disagree
Strongly Disagree
36%
16%
15. If cost wasn’t an issue I would consider buying smart home technology for my
existing home.
13% 15%
Strongly Agree
16% Agree
Neutral
Disagree
Strongly Disagree
40%
16%
16. I am really interested in having the sort of functions a smart home could offer.
12% 14%
Strongly Agree
21% Agree
Neutral
Disagree
Strongly Disagree
38%
15%
17. I could see myself living in a smart home in ten years’ time.
14% 18%
Strongly Agree
16% Agree
Neutral
Disagree
Strongly Disagree
33%
19%
18. The next time I move I would like to move into a home with smart home
technology.
12% 14%
14% Strongly Agree

Agree
Neutral
Disagree
22%
Appendix C
1 SALES FORECAST
From the information we gathered through the survey, especially the last 2 questions that
analyses the future market or smart homes, we can now approximate a sales forecast for
our product.
According to questions 17 and 18 of the survey conducted, it is apparent that more than
half of the people surveyed agree that they could see themselves living in smart homes in
the very near future (approximately 10 years). From this we can hence expect the demand
for smart homes to increase over the next 10 years
Also the population in Singapore in year 2004 is 4,240,300 compared to 4,017,700 in

year 2000.
4,240,300 – 4,017,700 = 222,600
222,600 / 4,017,700 = 5.54%
Hence judging by a 5.54% increase in population every 4 years, we can extrapolate the
population curve for Singapore over the next 20 years. The graph is as follows.
Population estimate
6000000
5500000
5000000
year
4500000 Population estimate
4000000
3500000
3000000
1995 2000 2005 2010 2015 2020 2025 2030
population
The average household size in Singapore in 2000 was 3.7 people, down from 4.2 people
10 years ago. One-person households increased from 5.2 percent to 8.2 percent between
1990 and 2000, totaling 75000 in the latest census during year 2000. The overall number
of households increased 3.4 percent a year between 1990 and 2000. Thus,
Total no. of households in year 2000 = (75000/8.2) x 100
= 914634 units
Judging by a 3.4% growth per year, we have the following graph on the no. of
households over the next 20 years.
households estimation
2300000
2100000
no.of households
1900000
1700000
1500000
households
1300000
1100000
900000
700000
500000
1990 2000 2010 2020 2030
year
Superimposing the 2 graphs together we now have:
population and households
6000000
population/households
5000000
4000000
households
3000000
population
2000000
1000000
0
1990 2000 2010 2020 2030
year
Now that we have the number of households over the next 20 years, we can proceed to
calculate an estimation for the total demand for smart homes over the next 20 years based
on our survey results. Our survey results show that approximately 50% of the people
surveyed wish to live in a smart home in the near future; hence we will assume
conservatively that the demand for smart homes is 1% of the total number of households
by the year 2008, 8% for the next 4 years up to 2012, 10% for the following 4 years up to
2016 etc. and finally up to 15% by 2024 years’ time. Hence we have the cumulative
demand curve for smart homes as follows:
total number of units demanded

year
households (cumulative)
2000 914634 0
2008 1195120 11951
2012 1366100 40983
2016 1561600 78080
2020 1785100 178510
2024 2040500 306075

market share
0.16
0.14
0.12
percentage
0.1
0.08 market share
0.06
0.04
0.02
0
1990 2000 2010 2020 2030
year
cumulative demand
350000
300000
250000
200000
un its
demand
150000
100000
50000
0
1995 2000 2005 2010 2015 2020 2025 2030
year
Also, we are making a conservative estimate of capturing 15% of the total housing
market in 20 years. The following table illustrates our growth in market share.
total number units

year units per 4yr market share
of households demanded
2000 914634 0 0 0
2008 1195120 11951 11951 1%
2012 1366100 109288 97337 8%
2016 1561600 156160 46872 10%
2020 1785100 223137.5 66977.5 13%
2024 2040500 306075 82937.5 15%
The graph on the following page illustrates the actual demand (not cumulative) that is
approximated over the next 20 years.
demand for smart homes
120000
100000
80000
60000 demand
units
40000
20000
0
1995 2000 2005 2010 2015 2020 2025 2030
year
Hence to further break it down into the introductory and growth stages we have as
follows up to year 2008:
Sales
Forecast
Year 2007
jan-07 feb-07 mar-07 apr-07 may-07 jun-07

Units demanded
200 250 250 300 300 300
(estimated)
jul-07 aug-07 sep-07 oct-07 nov-07 dec-07

Units demanded
350 400 450 400 450 450
(estimated)
Year 2008
jan-08 feb-08 mar-08 apr-08 may-08 jun-08

Units demanded
400 550 550 550 600 700
(estimated)
jul-08 aug-08 sep-08 oct-08 nov-08 dec-08

Units demanded
600 750 700 700 800 950
(estimated)
Total units
11950
demanded
The following table is an estimated break-down of the overall sales for the years 2009-
2024.
year units total
2009 22000
2010 25000
2011 28000
2012 22377 97337
2013 17000
2014 12000
2015 8400
2016 9472 46872
2017 10000
2018 14000
2019 21000
2020 21977 66977
2021 21000
2022 20000
2023 20500
2024 21437 82937
The above-mentioned table of approximated sales is derived by following a general trend

that is steadily increasing over the years. This is in accordance to the increasing
population and increasing number of households. As mentioned earlier, our ultimate aim
is to capture 15% of the households (approximately 0.3 million units) in Singapore by
2024.
Pricing
Add-On Package 1: Year 2009
Package Costs: 9149.12
Description % of Sales Gross Profit Margin Price

1 Business to Consumers 30% 30% 11893.856
2 Business to Business 70% 10% 10064.032
Average Unit Revenue: 10612.98



Pricing




Pricing




3 Choice of Vehicle:
The Vito Passenger Coach.
The company will purchase this vehicle to ferry our employees from one site to
another. The size of this vehicle makes it possible to house 9 passengers, and a
huge load of equipment and tools to be carried by the employees.
This vehicle which provides comfortable ride is ideal of our employees to have
ample rest while being transported from one point to another. Estimated cost is at
$140K.
The Vito crewbus is available in three body lengths and can carry up to nine
people – in the utmost comfort. With full seating, you have a rear storage volume
of 430 litres for the compact Vito and 970 litres for the extra-long model. You can
of course easily create more space by the simply removing the seats.
The Vito Panel Van.
This vehicle offers much versatility which meets the requirements of the company.
Reliable machine that safeguards the good in the vehicle offers the best value to
the company. Estimated cost is at $140K.
The Vito panel van stands out from the crowd with its unparalleled versatility,
comfort and safety as well as its exceptional design.
This remarkable van boasts a loading compartment volume of up to 6.49 m³, a
cargo entry width of 1,277 mm, a wide side sliding door and an innovative load
securement system. All of these features guarantee its usefulness in a wide
range of applications.
4 Corporate Tax in Singapore:
A company is taxed at a flat rate on its chargeable income. The tax rate for the respective year of assessment
is as follows:
Year of Assessment Tax Rate Tax Rebates
1986 and before 40%

1987 to 1989 33%
1990 32%
1991 and 1992 31%
1993 30%
1994 to 1996 27%
1997 to 2000 26% YA 1999: One-off tax rebate of $10% (excluding tax on
Singapore dividend and tax on income subject to the
final withholding tax).
2001 25.5% Tax rebate:

- 50% on first tax payable of $25,500
- 5% on balance of tax payable in excess of
$25,500 (i.e. gross tax - $25,500)
- Exclude tax on Singapore dividend and tax on income
subject to final withholding tax
2002 24.5% Partial Tax Exemption
Exempt income:
- First $ 10,000 @ 75% = $ 7,500
- Next $ 90,000 @ 50% = $45,000
$100,000 $52,500
Tax rebate:
- 5% of tax payable (exclude tax on Singapore dividend
and tax on income subject to final withholding tax)
2003 to 2004 22% Exempt income per YA 2002 but without 5% tax rebate
2005 onwards 20% Exempt income per YA 2002 but without 5% tax rebate.
Full Tax Exemption for new companies:

Full tax exemption can be granted on normal chargeable
income (excluding Singapore franked dividends) of a
qualifying company up to $100,000, for any of its first
three consecutive YAs that falls within YA 2005 to YA
2009. The first YA refers to the YA relating to the basis
period during which the company is incorporated.
To qualify for the tax exemption for a relevant YA under

the new scheme, a company must –
a) be a company incorporated in Singapore
b) be a tax resident in Singapore for that YA
c) have no more than 20 shareholders throughout
the basis period relating to that YA; and
d) have all shareholders who are individuals
throughout the basis period relating to that YA.
Any company that does not meet the qualifying conditions

for any of its first three consecutive YAs falling within YA
2005 to YA 2009 would still be eligible for partial tax
exemption.
5 Financial Ratios Explanation:
Current Ratios
The Current Ratio is one of the best known measures of financial strength. It is figured as shown
below:
Current Ratio = Total Current Assets / Total Current Liabilities
The main question this ratio addresses is: "Does your business have enough current assets to
meet the payment schedule of its current debts with a margin of safety for possible losses in
current assets, such as inventory shrinkage or collectable accounts?" A generally acceptable
current ratio is 2 to 1. But whether or not a specific ratio is satisfactory depends on the nature of
the business and the characteristics of its current assets and liabilities. The minimum acceptable
current ratio is obviously 1:1, but that relationship is usually playing it too close for comfort.
Quick Ratios
The Quick Ratio is sometimes called the "acid-test" ratio and is one of the best measures of
liquidity. It is figured as shown below:
Quick Ratio = Cash + Government Securities + Receivables / Total Current Liabilities
The Quick Ratio is a much more exacting measure than the Current Ratio. By excluding
inventories, it concentrates on the really liquid assets, with value that is fairly certain. It helps
answer the question: "If all sales revenues should disappear, could my business meet its current
obligations with the readily convertible `quick' funds on hand?"
An acid-test of 1:1 is considered satisfactory unless the majority of your "quick assets" are in
accounts receivable, and the pattern of accounts receivable collection lags behind the schedule
for paying current liabilities.
Leverage Ratio
This Debt/Worth or Leverage Ratio indicates the extent to which the business is reliant on debt
financing (creditor money versus owner's equity):
Debt/Worth Ratio = Total Liabilities / Net Worth
Generally, the higher this ratio, the more risky a creditor will perceive its exposure in your
business, making it correspondingly harder to obtain credit.
Net Profit Margin Ratio
This ratio is the percentage of sales dollars left after subtracting the Cost of Goods sold and all
expenses, except income taxes. It provides a good opportunity to compare your company's
"return on sales" with the performance of other companies in your industry. It is calculated before
income tax because tax rates and tax liabilities vary from company to company for a wide variety
of reasons, making comparisons after taxes much more difficult. The Net Profit Margin Ratio is
calculated as follows:
Net Profit Margin Ratio = Net Profit Before Tax / Net Sales
Return on Assets Ratio
This measures how efficiently profits are being generated from the assets employed in the
business when compared with the ratios of firms in a similar business. A low ratio in comparison
with industry averages indicates an inefficient use of business assets. The Return on Assets
Ratio is calculated as follows:
Return on Assets = Net Profit Before Tax / Total Assets
Return on Investment (ROI) Ratio
The ROI is perhaps the most important ratio of all. It is the percentage of return on funds invested
in the business by its owners. In short, this ratio tells the owner whether or not all the effort put
into the business has been worthwhile. If the ROI is less than the rate of return on an alternative,
risk-free investment such as a bank savings account, the owner may be wiser to sell the company,
put the money in such a savings instrument, and avoid the daily struggles of small business
management. The ROI is calculated as follows:
Return on Investment = Net Profit before Tax / Net Worth

References
1. Dr Lee Boon Yang. 3rd March 2006. Singapore, totally connected, wired and
wireless. Ministry of Information, Communications and the Arts.
th
http://www.mica.gov.sg/pressroom/press_060303.htm. Accessed on 17 May
2006.
2. Infocomm Development Authority of Singapore. 2003. Connected Homes

Programme.
http://www.ida.gov.sg/idaweb/marketing/infopage.jsp?infopagecategory=&infopa
geid=I473&versionid=1. Accessed on 17th May 2006.
3. Monetary Authority of Singapore. 2006.

http://www.mas.gov.sg/masmcm/bin/pt1Home.htm. Accessed on 14th May 2006.
4. Statistics Singapore. 2003. http://www.singstat.gov.sg/index.html. Accessed on

12th May 2006.
5. NCS. 2006. http://www.ncs.com.sg. Accessed on 20th May 2006.
6. WiMAX Forum. 2006. http://www.wimaxforum.org. Accessed on 25th May

2006.
7. SOMA Networks. 2004. http://www.somanetworks.com. Accessed on 25th May

2006.
8. CHH Systems.2004. http://www.chhsys.com. Accessed on 26th May 2006.
9. Pinnacle Systems. 2006. http://www.pinnaclesys.com/PublicSite/us/Home.

Accessed on 24th May 2006.
10. D-Link International Pte Ltd. 2006. http://www.dlink.com.sg. Accessed on 27th
May 2006.
11. Legrand Pte Ltd. 2006. http://www.legrand.com.sg. Accessed on 26th May 2006.
12. Universal Gateway International Pte Ltd. 2005. http://www.unigi.com/unihome.

13. Linksys. 2006. Wireless-G Media Storage Link Router with SpeedBooster –
WRTSL54GS. Cisco Systems.
http://www.linksys.com/servlet/Satellite?c=L_Promotion_C2&childpagename=U
S%2FLayout&cid=1148435074979&pagename=Linksys%2FCommon%2FVisito
rWrapper. Accessed on 20th May 2006.
14. Lordpercy.com. 2005. Linksys Wireless Media Adapter.

http://www.lordpercy.com/linksys_wireless_media_adapter.htm. Accessed on
23rd May 2006.
15. Smart Home Systems. 2006. http://www.smarthomeusa.com. Accessed on 23rd

May 2006.
16. Cisco Systems. 2006. http://www.cisco.com. Accessed on 25th May 2006.
17. Division of Engineering and Applied Science, Harvard University. 2006.

Wireless Sensor Networks for Medical Care. Harvard University.
http://www.eecs.harvard.edu/~mdw/proj/codeblue. Accessed on 25th May 2006.
18. Intel Corporation. 2006. Sensor Network Operation.

http://www.intel.com/research/exploratory/sensornetwork_operation.htm.
19. Steve Warren, Richard L. Craft and John T. Bosma. 25th March 1999. Designing
Smart Health Care Technology into the Home of the Future.
20. Ali Ziya Alkar and Umit Buhur. 4th November 2005. An Internet Based Wireless
Automation System for Multifunctional Devices. IEEE Transactions on Consumer
Electronics, volume 51.
21. Cytech Technology. 2005. http://www.cytech-technology.com. Accessed on

27th May 2006.
22. Home-Ideas.org. 2006. Home Automation Systems. http://www.home-

ideas.org/home-automation-systems.htm?keyword=home-
automation&engine=google&contextual=no. Accessed on 28th May 2006.
23. Intellihome. 2006. http://www.intellihome.be/english/index.asp. Accessed on

26th May 2006.
24. Joseph Rowntree Foundation. 2006. Smart Homes – How does it work?
http://www.jrf.org.uk/housingandcare/smarthomes/how.asp. Accessed on 27th
May 2006.
25. Harrison, Horngren, Ismail, Chng, Samad, Mak. Financial Accounting in

Singapore and Malaysia. Published in 2005.
26. Gwen Moran & Sue Johnson. The Complete Idiot’s Guide to Business Plans.
Published in 2005.
27. Mercedes Benz website. www.mercedes-benz.com.sg Accessed on 5th June

2006.
28. Inland Revenue Authority of Singapore. www.iras.gov.sg Accessed on 1st June
2006.
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ratio.html Accessed on 10th May 2006.
30. Singapore Window http://www.singapore-window.org/sw01/010131af.htm


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PRODUCT PROPOSAL

NATIONAL UNIVERSITY OF SINGAPORE

EE3001 SEM 3 AY2005/2006

SUPERVISOR : Yen Shih Cheng

Liu Zhi Qiang U048954E

1.1 Company Profile………………………………………………………………....……….. 1

2.1 Current Situation……………………………………………………………….. ……….. 3

2.2 Product Description……………………………………………………………. ……….. 3

3.1.1 Overview of INSTEON…………………………………………………………. 5

3.1.2 Advantages of INSTEON…………………………………………….. ………. 5

3.1.3 INSTEON Specifications………………………………………………………. 6

3.1.4 How individual INSTEON devices communicate…………………………… 9

3.1.5 Interfacing to an INSTEON network………………………………………….. 11

3.2 GOING WIRELESS……………………………………………………………………… 12

3.2.1 Overview of Wireless…………………………………………………………... 12

3.2.2 Advantages of going Wireless………………………………………………… 12

3.2.3 How does WiFi works? ……………………………………………… ……….. 13

3.2.4 Keeping your WiFi network safe and secure………………………………… 15

3.3.1 Overview of Biometric Technologies………………………………………….. 17

3.3.2 Fingerprint Recognition…………………………………………………………. 17

3.3.3 Fingerprint Enrolment…………………………………………………………… 17

3.3.4 Fingerprint Matching……………………………………………………………. 18

4. PRODUCT OVERVIEW…………………………………………………….. ………………… 20

4.1.2 Key differences from traditional security systems……………………. 20

4.1.3 Layout of our security system in the apartment………………………. 21

4.2 SECURITY CONTROL UNIT…………………………………………………………….22

4.2.1 Security Panel…………………………………………………………………… 22

4.4 WIRELESS SENSORS………………………………………………………………….. 29

4.4.1 Motion Sensors……………………………………………………………………. 29

4.4.2 Windows and Doors Sensors…………………………………………………….. 33

4.4.3 Glassbreak Sensor………………………………………………………………... 35

4.4.4 Smoke Detector……………………………………………………………………. 37

4.4.5 Carbon Monoxide Detector………………………………………………………. 40

4.5 DOOR ENTRY…………………………………………………………………................42

4.5.1 Fingerprint Recognition Door Lock………………………………………………. 42

4.6.1.2 What can InLights do? ……………………………………………….. 46

4.6.1.3 INSTEON in InLights………………………………………………….. 47

4.6.2 InLamp (300W, 120VAC) ………………………………………………………… 49

4.6.4 InCurtain motor…………………………………………………………………….. 52

4.6.5 InSink Lifter………………………………………………………………............... 53

4.7.1 Multi-room Wireless Media Centre……………………………………………… 56

4.7.2 Digital Distribution Centre………………………………………………………… 57

4.7.3.1 Features and Benefits………………………………………………… 59

4.7.3.2 Audio Specifications…………………………………………………… 60

4.7.3.3 Video Specifications…………………………………………………… 60

4.7.3.4 Photo Specifications……………………………………………………60

4.7.4 Multimedia Overview…………………………………………………….. ……….. 61

4.8.1 Cisco Unified Wireless IP Phone 7920…………………………………………. 62

4.9.1 Overview of Healthcare…………………………………………………………… 65

4.9.2 Wireless pulse oximeter sensor………………………………………………….. 68

4.9.3 Wireless two-lead EKG…………………………………………………………… 69

4.9.4 Accelerometer, gyroscope, and electromyogram (EMG) sensor for

stroke patient monitoring……………………………………… ………………… 69

4.9.5 InHealth(for monitoring health of wearer) ……………………………………… 71

4.10 InHome Universal (Software for Controller) ………………………………………… 71

5. TECHNICAL SUMMARY………………………………………………………………………. 75.

6. Environment Analysis ………………………………………….........................................77

6.1 Accessing the current and internal situation ………………………………………… 77

6.1.1 Political …………………………………………………………………………….. 77

6.1.2 Economic ………………………………………………………………………….. 78

6.1.4 Technological ……………………………………………………………………… 80

6.2 Business Case Justification …………………………………………………………… 82

6.2.1 Market survey ……………………………………………………………………... 82

6.2.2 Market Analysis …………………………………………………………………… 83