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Group 5 Automated Smart Watering System Sensor and GSM
Group 5 Automated Smart Watering System Sensor and GSM
Group 5 Automated Smart Watering System Sensor and GSM
School of Engineering
______________________________________________________________________________
Submitted by:
Alagon, Mikhaela Anne
Alimpoos, Zephora Micah
Barimbad, Vince
Dotaro, Jun Carlo
Dungog, Prix John
Hernandez, Zedrex
Tumulak, Neo
Submitted to:
Dr. Mary Joan R. Ocampo, PIE, AE
TABLE OF CONTENTS
The Automated Smart Watering System is a small scale irrigation system that offers
sustainability and efficient solutions to watering our plants. Traditional sprinkler systems already
exist, but Automated Smart Watering System puts forward an advanced technology of GSM
sensors automation and precision watering.
The Automated Smart Watering System is installed on lawns and gardens, utilizing the
GSM sensor to detect the precise soil moisture level condition of the soil. When it recognizes
that the soil has become too dry for the plant, it delivers the precise amount of water needed for
optimal growth. Our product’s systems deliver water directly to the root zone, minimizing
evaporation and runoff compared to traditional sprinkler systems.
Unlike traditional sprinkler systems that mindlessly automates based on time and can
even cause uneven distribution of water to the crops, the Automated Smart Watering System
(GSM and Sensor) can be tweaked according to the crop's standard for optimal growth. It is also
connected to a mobile app for ease of monitoring of the product’s performance.
Technology has progressed to the point where automated smart watering systems are
equipped with features that elevate their performance. With improvements in the hardware,
software, and testing stages, the development of an automated smart watering system that
integrates sensors and GSM technology has advanced ahead effectively. The hardware of the
system consists of a GSM module for remote communication and sensors to track light,
temperature, and moisture levels in the soil. The software has a simple remote control interface
in addition to data analysis techniques.
The target market is middle to high income homeowners in Cebu City that own their
property and have control over their outdoor spaces and are invested in maintaining them using
home automation and technology for home improvement.
Agritech Systems Corporation, is an identified potential competitor, although the
company's offerings primarily cater to poultry farming rather than residential gardening.
Implementation Roadmap
The overall schedule for the implementation and execution of the project would be 30
weeks excluding the post-distribution. Any potential challenges and risks are acknowledged and
pre-calculated by the team, to ensure effective delivery and execution of the product.
Financial Outlook
A total of Php 5,000,000.00 will be outsourced from equity investment, loan proceeds
and grants or subsidiaries to generate the funds for start-up and the excess will be used to
develop research and new innovation for the future of the company.
Assuming a sale of the first batch with 40 units, the expected Cost of Sales is Php
98,436.80 excluding labor costs. This implies that the unit cost of sale is Php 16,000.00.
Considering that each unit is sold at a markup of 25%, then the unit selling price would be Php
20,000.00, and the total sales if all 200 units were sold would be Php 4,000,000.00. Deducting
the initial costs and investments based on the Pro Forma Income Statements, it shows that the
projected net income of the company in the first year would be Php 2,622,422.00.
SECTION 2: INDUSTRY ANALYSIS
As the heat index keeps on rising, it is essential that we give more value to the
importance of flora in the environment. Botanists, farmers, and gardeners throughout history
with a keen interest in flora have documented many uses of plants. Every green plant on the
planet has an important function: they suck in carbon dioxide and transform it into oxygen.
Carbon dioxide is a greenhouse gas that contributes to climate change and global warming.
Unfortunately, when large sections of this forest is cut down for industry, this has a huge
impact on the environment. The industrialization of cities like Cebu City without many trees and
flora can enhance the effect of global warming.
The versatile plants that live alongside us can help to prevent this. Trees and bushes
planted in these urban areas can help to absorb some of the more dangerous pollutants. This is
why it is crucial that we highlight the importance of plants in our very own homes and public
spaces as much as we can!
With the Automated Smart Watering System, we are your partners in taking care of your
plants in your home, with precision, and ease.
The Global Sprinkler Irrigation System industry was valued at US$ 1790.1 million in
2023 and is projected to reach US$ 2045 million by 2030, at a CAGR of 1.5% during the
forecast period.
The US market for Global Sprinkler Irrigation System market is estimated to increase
from USD million in 2023 to reach USD million by 2030, at a CAGR during the forecast period
of 2023 through 2030.
The China market for Global Sprinkler Irrigation System market is estimated to increase
from USD million in 2023 to reach USD million by 2030, at a CAGR during the forecast period
of 2023 through 2030.
The Europe market for Global Sprinkler Irrigation System market is estimated to increase
from USD million in 2023 to reach USD million by 2030, at a CAGR during the forecast period
of 2023 through 2030.
The Global Sprinkler Irrigation System market has witnessed rapid growth in recent
years, driven by increasing environmental concerns, government incentives, and advancements
in technology.
Industry Structure
Market Segmentation:
1. Residential Sector: Automated Smart Watering System (Sensor and GSM) will be
focusing its target market on middle to high income residents in Cebu City.
i. Small scale botanists can also benefit from the product, since Automated Smart
Watering System provides precise and accurate watering system to plants whether
consumable plants or decorative flora, whichever the consumer prefers.
2. Commercial Sector: Automated Smart Watering System (Sensor and GSM) is also
beneficial to commercialized malls and public parks that need precise small scale
irrigation in their landscapes.
i. Commercial or Government Owned Public Parks and Spaces that need automated
and precise irrigation in their landscape.
Sprinkler irrigation systems require substantial capital investment for equipment and
installation, making them more feasible to middle to high income residents and/ or a
commercialized sector that needs automated irrigation in their landscape. Additionally, one of
the major factors impeding the expansion of the global sprinkler irrigation systems market worry
is the large initial investment required for modern agricultural equipment as well as the high cost
of installation and maintenance connected with different sprinkler systems.
Nature of Participants
a. App Developer
b. GSM Module Technology Developer
Key success factors are essential elements that a company must excel in to effectively
compete in its target markets and achieve its strategic goals. These factors outline the specific
actions a company must take and the strengths it must possess to achieve success.
b. Innovation in Product: Ongoing demand for sprinkler irrigation has spurred innovations
in water resource monitoring, system efficiency, and user-friendliness. Leading players in
the market continuously enhance their products with new features and technologies.
Sensor-based systems for soil moisture monitoring, remote control panels, wireless
pumps, GPS-enabled irrigation systems, and robust materials are among the innovations.
Industry Trends
The global sprinkler irrigation system market is estimated to rise as a result of the
growing public and private support for irrigation projects in developing nations. In order to meet
the requirements of rural communities and farmers, the public and private sectors are
collaborating to provide advisory services and information. The market for sprinkler irrigation is
expanding as a result of the growing public and private backing for irrigation projects in
emerging nations.
A crucial trend that is becoming more and more popular in the sprinkler irrigation
industry is technological improvement. The technology can be used in most topographic settings
due to the adaptability of modern sprinkler equipment and its effective management of water
application.
Long-Term Prospects
Technological Advantage
The Automated Smart Watering System has a multi-year lead in data analytics and
patented technology due to its early innovation in GSM-enabled precision and sensors, giving it
a sustained technological advantage over rivals in the future.
The Automated Smart Watering System ensures that customers have high expectations
as financial benefits become clear, with up to 30% lower water bills, partnered with Metropolitan
Cebu Water District. We also take pride in lowering laborers' costs, as the consumers will not be
needing to hire a human gardener to watch for their plants and flora.
SECTION 3: COMPANY DESCRIPTION
Mission Statement
Products:
Smart Irrigation Controllers. Our intelligent controllers utilize real-time weather data, soil
moisture levels, and plant-specific requirements to deliver the precise amount of water needed
for optimal growth. With remote access via mobile apps and web platforms, users can monitor
and adjust watering schedules from anywhere, ensuring efficient water management even when
they're away.
Soil Moisture Sensors. These sensors provide accurate readings of soil moisture content at
various depths, enabling users to fine-tune irrigation schedules based on actual plant needs. By
avoiding both overwatering and underwatering, growers can maximize resource efficiency and
cultivate healthier plants.
Automated Watering System. Our systems deliver water directly to the root zone, minimizing
evaporation and watering runoff compared to traditional sprinkler systems. Coupled with smart
controllers, these systems ensure precise, targeted watering tailored to each plant's requirements,
resulting in healthier roots and reduced water usage.
Services:
Consultation and Assessment. We provide expert consultation services to assess the unique
needs of your landscaping operation. Our team evaluates factors such as soil type, crop selection,
climate conditions, and water availability to tailor a customized solution that maximizes
efficiency and productivity.
Installation and Setup. We offer professional installation and setup services for our smart
watering systems, soil moisture sensors, and other water management technologies. Our
experienced technicians ensure seamless integration and optimal performance, allowing you to
start saving water and improving yields right away.
Product Training and Education. We provide comprehensive training programs to educate users
on the features, functionality, and best practices for maximizing the benefits of our products.
Whether you're a novice gardener or a seasoned gardener, our training sessions empower you to
make informed decisions and get the most out of your investment.
Maintenance and Support. Our commitment to customer satisfaction extends beyond the initial
installation. The Automated Smart Watering System offers ongoing maintenance services to keep
your water management system operating at peak performance. In addition, our dedicated
support team is available to address any questions or concerns you may have, ensuring a smooth
experience from start to finish.
Current Status
In just two years, the Automated Smart Watering System has become the forefront of
Cebu City’s water automation market, providing cloud-connected precision watering system
solutions to over a hundred households in Cebu. We've grown quickly without sacrificing our
top-notch client support. In two years, we hope to target a nationwide service for a more
sustainable and efficient watering system in the country.
Key Partnerships
The Automated Smart Watering System is in partnership with the following company:
The global market for automated smart watering systems is experiencing rapid growth,
driven by increasing awareness of water scarcity, rising demand for efficient agricultural
practices, and advancements in technology. As climate change continues to impact weather
patterns and water availability, there is a growing need for solutions that enable precise water
management and conservation.
Demographic
Homeowners with middle to high income earners that own their property and have
control over their outdoor spaces and are invested in maintaining them using home automation
and technology for home improvement.
Geographic
Provinces or urban households with water scarcity or areas with strict water restrictions
such as Lorega San Miguel, Binaliw, Economics San Jose, Talamban and Pit-os, in Cebu City
alone, which are “severely affected” by water shortage according to the Metropolitan Cebu Water
District this April of 2024 may seek solutions to prioritizing water-efficient solutions for their
gardens.
Buyer Behavior
Homeowners may consider the process of recognizing a need for water conservation or
convenience, followed by researching available options through online resources and expert
opinions. Consumers evaluate alternatives based on functionality, reliability, and affordability
before making a purchase decision influenced by perceived value and brand trust. Post-purchase,
satisfaction is determined by the system's performance and effectiveness, shaping future buying
behaviors. Factors influencing buyer decisions include individual characteristics, external
influences, marketing efforts, and situational factors. Understanding this behavior enables the
company to tailor marketing strategies and product offerings to meet consumer needs effectively.
Competitor Analysis
Start-up Cost
Description Cost
Equipment P 98,436.80
TOTAL P 203,436.80
Fixed Cost
Description Annual Costs
TOTAL P 2,035,000
The fixed costs for the Automated Smart Watering System consists of various essential
expenditures incurred on a regular basis. Annual fixed costs include the salaries, development of
softwares, permits and licenses, marketing expenses, insurances, and regulatory expenses
contributing to an annual fixed cost of P2,035,000. These fixed costs provide a comprehensive
overview of the ongoing operational and regulatory expenses necessary for maintaining and
growing the business..
Variable Cost
Description Annual Cost
TOTAL P 798,000
The projected annual sales for the Automated Smart Watering System are at 200 units
equivalent to 8,000 sqm. in land area wherein the variable cost per unit can be calculated by
dividing the annual variable cost with the projected annual demand, entailing that for every unit,
the variable cost is P 798,000.
Revenue Drivers
Revenue Drivers Amount
Price P 20,000
Demand 200
Profit Margin
Profit Margin Calculation
Operating Leverage
Operating leverage is a cost-accounting formula (a financial ratio) that measures the degree to
which a firm or project can increase operating income by increasing revenue.
You can use the following calculation to determine the break-even point:
Break-even Point = Fixed costs / (Price per unit - Variable cost per unit)
= P 2,035,000 / (P 20,000 - P 3,990)
= 127.11 = 128 units
To break even, the company will need to sell an average of 128 units in order to turn a
profit, sales must exceed that amount. Therefore in order for it to turn a profit, more sales must
occur.
SECTION 6: MARKETING PLAN
Automated watering systems are a sophisticated approach for managing plant and garden
irrigation needs that benefit both residential and commercial users. We can construct this product
that can benefit people in their daily lives by using components such as a water sprinkler,
moisture weather sensor, motor/pump, power source, and device. A motor/pump will also be
linked to the water sprinkler and the moisture and weather-sensing gadget. The moisture sensor
is buried in the soil, while the weather sensor is located directly above the device; if the sensor
detects that the soil is dry and the weather is hot, the sprinkler will activate automatically then
the water directly goes to the root of the plant . When the moisture sensor detects that the earth is
sufficiently moist, the sprinkler will automatically turn off after a few minutes. This approach
provides practical answers for maintaining healthy, growing plants.
Price
The cost of making this kind of product will depend on the size of the property. The
variety of materials used to create the product will depend on how big the area and how
complicated the connection will be. But, the estimated price for a non-complicated connection
for a 4 sqm land area ranged from Php 10k to Php 30k.
Promotion
To increase the visibility of our automatic watering systems, we will focus on developing
a strong web presence. This entails creating an interesting and informative website that
highlights its features, benefits, and practical uses. Social Media networks will be essential tools
for targeted advertising, including visually attractive material to persuade potential consumers.
Participation in industrial events; regional gardening. Expos and collaborative actions with
environmentally conscious groups will demonstrate our commitment to community participation.
We'll create a tiered fee. system, together with welcome bonuses and reward schemes, to
stimulate adoption. Encourage customer loyalty. This comprehensive approach guarantees that
our automated watering of the system not only meets the demands of our target market, but it
also establishes a benchmark for creative and ecologically sustainable gardening solutions.
Distribution
In our Automated Smart Watering System business plan, we seek to offer extensive
accessibility through a diverse and effective channel approach. We will form agreements with
subdivisions, and barangays and carefully positioning our product where our target customers
buy. We plan to broaden our digital reach by collaborating with internet platforms and pursuing
large-scale commercial partnerships with real estate investors and gardeners. Landscaping firms.
Direct sales through our website enhance brand awareness and offer a more personalized
purchase experience. Our distribution approach will be flexible to adapt to market developments
and client preferences, ensuring accessibility across consumer categories.
SECTION 7: DESIGN AND DEVELOPMENT PLAN
Technology has progressed to the point where automated smart watering systems are
equipped with features that elevate their performance. With improvements in the hardware,
software, and testing stages, the development of an automated smart watering system that
integrates sensors and GSM technology has advanced ahead effectively. The hardware of the
system consists of a GSM module for remote communication and sensors to track light,
temperature, and moisture levels in the soil. The software has a simple remote control interface
in addition to data analysis techniques. In order to guarantee sensor accuracy and communication
dependability, preliminary testing has been carried out. The next tasks are to integrate weather
prediction data, optimize sensor location, develop power management, enhance watering
methods, improve remote monitoring features, and carry out through field testing for everyday
life usage. The goal of these plans is to develop a reliable, effective, and user-friendly irrigation
management system that will benefit users' convenience and sustainability.
The benefits of an Automated Smart Watering System (Sensor and GSM) include
reduced labor expenses, improved plant health, and water saving. But there are also some risks
and challenges associated with these systems.
● Precision and Reliability of Sensors: It can be difficult to guarantee that the sensors
deliver accurate and reliable information under a variety of environmental circumstances.
● Controlling Power: Effectively controlling power usage will guarantee extended
operation between battery changes.
● Ease of Installation: Installation can be challenging, especially for larger or
advanced systems. It might be required to work with a qualified installer for the item,
which may raise the price.
● Technical Errors: The possibility of software, GSM module, or sensor problems that
could cause the system to malfunction technically.
● Dependency on Weather: Reliance on precise weather forecast data in order to make the
best watering decisions; there is a chance that incorrect forecasts could have an impact on
system operation.
● Overruns on Cost: The possibility of going over budget because of unforeseen costs
during the software integration, hardware development, or testing stages.
● Maintenance and Assistance: supplying sufficient upkeep and support to deal with any
problems that might occur after deployment, guaranteeing system dependability over the
long run and user happiness.
● Legal Responsibility: The business could be held accountable for any injuries or
property damages brought about by an automated smart watering system.
● Financial Losses: Plant damage or wastewater leaks from an automated smart watering
system financial losses are possible.
The estimated development costs for a GSM-enabled automated smart watering system
include charges for testing, software, hardware, and maintenance. Sensors, GSM modules,
microcontrollers, and other required parts are included in the hardware expenses, which are
projected to be roughly PHP 98,000.00 based on comparable systems. The development of
methods for data analysis, decision-making, and user interface design is included in software
expenses. These prices might vary greatly based on the complexity and resources needed. Costs
associated with evaluating and verifying the accuracy, dependability, and performance of the
system are included in testing costs. The costs of maintaining and supporting the system after it
has been deployed are included in maintenance and support costs. This ensures the system's
long-term dependability and users' satisfaction. In order to cover any unanticipated costs or
difficulties that may occur throughout the development process, a contingency budget is
necessary. It is possible to determine a more detailed and accurate estimated development cost
for the Automated Smart Watering System (Sensor and GSM) by estimating and assigning
resources for these cost categories.
Proprietary Issues
Taking into account proprietary concerns is essential while creating an Automated Smart
Watering System that incorporates GSM technology and sensors. Among these concerns are
making sure that patent rules are followed by carrying out comprehensive patent searches and
consulting with legal counsel to prevent infringing already-issued patents or other intellectual
property rights. It is critical for protecting user data and maintaining privacy by using data
encryption and secure communication protocols. If third-party software or libraries are utilized, it
is important to abide by software licensing agreements and make sure the system complies with
their terms and conditions. It's also crucial to make sure hardware is compatible with current
technologies and systems, and to collaborate with hardware makers to secure any required
licenses or permits. Preventing illegal use or infringement requires protecting the system's
trademarks and brand through trademark registration and making sure the system's branding is
distinct from those of competitors. In order to guarantee legal compliance, protect the system's
intellectual property, and promote its successful development and marketability, it is important
that these proprietary concerns be addressed.
SECTION 8: OPERATIONS PLAN
An Automated Smart Watering System with sensors and GSM technology operates
generally by taking the following important steps:
● System Setup: Fitting the GSM module and sensors into the intended automated smart
watering system, making sure they are positioned correctly and connected.
● Data collection: Constantly gathering information from the sensors on the temperature,
light levels, and moisture content of the soil.
● Data analysis: To determine the best watering schedules and amounts, the gathered data
is analyzed utilizing methods and decision-making approaches.
● Watering Control: Using solenoid valves or other control mechanisms, carry out the
watering schedules and amounts determined by the analysis.
● Remote Monitoring and Control: By enabling users to check system status, watering
schedules, and other necessary information, this feature makes use of the GSM module to
provide remote monitoring and control capabilities.
● Maintenance and Assistance: Ensuring long-term dependability and user happiness
through routine maintenance and support, including resolving any problems that may
occur while the system is in use.
● Constant Improvement: Making sure the system stays updated and functional by
making constant improvements based on user input, data insights, and technology
breakthroughs.
Installation Process
An Automated Smart Watering System with sensors and GSM technology requires the
following essential procedures to be installed:
● Area Preparation: Choose the installation area and make the necessary preparations by
removing any trash, and making sure the drainage system is in working order.
● Install the Sensors: Ensure correct placement and connectivity by installing the
temperature, light, and soil moisture sensors at the right depth and location.
● Install the GSM Module: To ensure optimal connectivity and signal strength, install the
GSM module in a safe, waterproof position.
● Installation of the Control Module: Attach the sensors, GSM module, solenoid valves,
and other control mechanisms to the control module, which can be a microcontroller or
programmable logic controller (PLC).
● Installation of the Power source: Install the power source and link it to the control
module. This can be a solar panel or a battery.
● System Configuration: Assemble the data analysis methods, watering schedules, and
communication protocols according to the particular needs of the automated smart
watering system.
● Testing and Validation: After making any required changes or modifications, test the
system to guarantee correct procedure, reliability, and accuracy.
● User Training: Provide documentation and support as needed, and instruct users on how
to use the system, including its remote monitoring and control features.
Business Location
The business will be located in Cebu City, which is the city's hub. The province of Cebu's
commercial and industrial hub is Cebu City. Along with being a thriving city, it serves as a
significant center for garden landscaping and agriculture. As a result, the facility would be
conveniently accessible to the target market, who would be residents of Cebu City, both from the
north and south. Additionally, the site was selected to give the target market and other possible
clients excellent visibility.
The Facilities and Equipment for Automated Smart Watering System (Sensor and GSM):
● Control Room: A special area set aside for data analysis, remote control operations, and
system monitoring.
● Testing Area: A space set aside for performance, calibration, and validation testing of
systems.
● Storage Room: A place to keep inventory of equipment, maintenance tools, and spare
components.
● Sensors:
- Soil Moisture Sensors
● Communication Devices:
- GSM Modules for remote communication
- Microcontrollers or PLCs for system control
● Power Supply:
- Batteries or Solar Panels for energy supply
- Power Management Systems for efficient operation
● Maintenance Tools:
- Tools for system maintenance, troubleshooting, and repairs
- Calibration Equipment for sensor accuracy
SECTION 9: MANAGEMENT TEAM AND COMPANY STRUCTURE
Management Team:
Company Structure
SECTION 10: OVERALL SCHEDULE
● Implement parameters or
specifications required strictly
Week 26 - 30 Distribution
Cost Analysis:
The project involves using sensors to detect soil moisture levels and GSM technology to
automate watering (Automatic Irrigation System Using Sensors, 2018). Components required
include NodeMCU ESP8266, Soil Moisture Sensor Module, Water Pump Module, Relay
Module, and DHT11. Costs will encompass materials, labor, and overhead for producing the
system (IoT Based Smart Irrigation System Using Soil Moisture Sensor and ESP8266
NodeMCU, n.d.). Cost will include materials, labor, and overhead for producing the system.
Sources of Funds
● Equity Investment - PHP 1,200,000.00
● Loan Proceeds - PHP 2,550,000.00
● Grant or Subsidiaries - PHP 1,250,000.00
Total Sources of Funds - PHP 5,000,000.00
Uses of Funds
● Fixed Cost - PHP 2,035,000.00
● Variable Cost - PHP 798,000.00
Total Uses of Funds - PHP 2,833,000.00
Pro Forma Income Statements The following shows the projected income of the company in the
first year.
Microcontrollers 3,180.00
Assuming a sale of the first batch with 40 units, the expected Cost of Sales is Php
98,436.80 excluding labor costs. This implies that the unit cost of sale is Php 16,000.
Considering that each unit is sold at a markup of 25%, then the unit selling price would be Php
20,000, and the total Sales if all 200 units were sold would be Php 4,000,000.00.
Year 1
Operating Activities:
Investing Activities:
Financing Activities:
Year 1
ASSETS
Current Assets:
Cash 2,074,184.00
Inventory 10,000.00
Non-current Assets:
Land 250,000.00
Liabilities
Equity