6. Product Recognition Platform for Mobile Commerce - VTX Brasil

Author(s): 
Fernando Ponciano
Focus area: 
Success story of VTX Brasil from the development of a proprietary cloud based technology to define the business model and go to the market. How the company created the Product Recognition Platform with researchers from top universities in Brazil and US, how and who to offer the solution, business model definition and success cases.
Who stands to benefit and how: 
Direct Customer: Almost any kind of retailer that would like to sell their products through mobile apps, creating a new sales channel or enhancing the currently shopper experience through smartphones and tablets by offering a easier and faster way to find and purchase the desired product, anywhere and anytime. End Customer: Shoppers that would like a better experience in merchants mobile apps.
Focus of your position paper: 
VTX Brasil is a startup that spent two years researching and developing an image recognition solution partnering with PHDs from top universities such as Unicamp, USP, Virginia Tech and Unical. VTX started incubated in Virginia Tech University where image recognition researchers and artificial intelligence specialists supported the company to create and improve the technology. Back to Brazil hired a very talented team of developers (iOs, Android, Image Recognition, AI, UX designers and project manager) that understood and improved even more the technology. The patent technology from VTX was named PRP (Product Recognition Platform) and the strategy defined by the company was to focus on enhancing the mobile commerce. The problem to solve was that mobile search is awful and It is very difficult to purchase a product through the smartphone using merchants mobile apps, so the idea is to integrate our platform in merchants apps so the user can find and purchase a desired product just by opening the app and taking a picture of It, anytime, anywhere. For the business model the company defined two possibilities: 1st - Revenue Share: merchant shares the revenue from our platform sales with VTX 2nd - SaaS: monthly fee based on the number of requisitons to our system (number of pictures uploaded to our servers) VTX also partnered with Elavon - one of the biggest US payment companies - to provide a payment gateway for the users, simplifying even more the experience of purchase through mobile app. Following the strategy VTX developed big retail customers in Brazil from several areas such as: bookstores, drugstores, shoes, electronics, price grabbers and etc. All the technology runs in the VTX cloud, what makes the solution reliable, fast and capable of work anywhere in the world at anytime. The challenge now is keep growing in Brazil and expand to other countries; VTX already started that movement by US.