Next-Generation of Maintenance Skills Training System
Navy SBIR FY2014.2

Sol No.: Navy SBIR FY2014.2
Topic No.: N142-124
Topic Title: Next-Generation of Maintenance Skills Training System
Proposal No.: N142-124-0062
Firm: Creative Technologies Inc.
6255 W. Sunset Blvd.
Suite 716
Los Angeles, California 90028-7403
Contact: James Korris
Phone: (323) 472-6204
Abstract: As military systems continue to grow more complex, there is a pressing need to concurrently advance maintenance training systems to accurately assess skill acquisition and decay, while incorporating interactive stimuli. Instead of training procedural skills in isolation, we broaden the training scope to include learning problem-solving strategies, (e.g. diagnosing a problem and selecting a procedure to address it), metacognitive strategies, (e.g. assessing the effectiveness of one's current activities), and conceptual knowledge, (e.g. a cause-and-effect mental model of how a mechanical or electronic system works), all informed by current advances in learning sciences. We will design and develop a compelling game-based maintenance trainer for a U.S. Navy Gun Mount currently in use in the fleet. We will utilize intelligent tutoring systems (ITS) as they provide a realistic task environment and enable individualized coaching. The anticipated benefits include a comprehensive skill acquisition module that can track individual skill level and predict required training and refresher courses to minimize skill atrophy. In Phase I, CTI's interdisciplinary team will develop a concept and design document for a virtual environment maintenance trainer with assessment tools for skill acquisition and decay. In Phase II, a prototype system will be developed and delivered for US Navy evaluation.
Benefits: Commercialization of the VE that this project will produce has already begun with discussions with BAE Systems concerning the integration of the application into course materials for the Mk45 Mod 4 Gun Mount course number A-113-2102. As the OEM for Navy guns including the Mk 110 Mod 0, Mk 38 Mod 2 and Mk 45 Mods 2 and 4,BAE has provided advanced maintenance instruction to the U.S. Navy since 1976, producing courseware and "training the trainers". As the U.S. Government enjoys a royalty-free use of the VE application and its underlying intellectual property (IP), initial military revenue opportunities will arise from non-recurring engineering related to integration into learning management systems, access management, content revisions and support fees. If the Navy schoolhouse experiment with the VE is successful and the U.S. Navy embraces the utilization of the VE, CTI estimates this initial opportunity will produce between $500,000 and $1,000,000 in revenue in the first year. CTI's intimate knowledge of the application coupled with source-code access creates barriers to entry for competitors. Please see Appendix A for letters of interest from BAE systems and The Boeing Company. Foreign military sales and applications for the U.S. commercial market will provide a robust commercialization opportunity. We believe application licensing via U.S. Foreign Military Sales will be possible to Australia, Chile, Spain, South Korea and other potential customers. CTI's IP rights will ensure its interest in the ongoing global revenue stream for the Mk 45 Mod 4 Gunner's Mates training market.. CTI believes that the training protocols and assessment tools developed for the maintenance VE should have direct application to the development next-generation training for the commercial sector. For this opportunity, we may look to the U.S. market for career and technical education (CTE). Once termed "vocational training", CTE includes a broad spectrum, from general labor market preparation to library sciences. CTI estimates that the total market for adult CTE training in the U.S. is approximately $15.5 billion annually. In 2004-2005, 2.6% of all U.S. adults took formal, work-related courses in "vocational trades". Extrapolated to 2010 census data , this translates to a potential training audience of over 5.7 million based on reported per-student subbaccalaureate credential tuition and fees in 2008 of $2,700, In 2009, 5.3% of U.S. high school students completed at least one credit in CTE mechanics and repair . Extrapolating to 2013 enrollment data , roughly 785,000 students pursued studies this field. This could further enlarge the training audience. Of the $15.5 billion estimated total spent annually on adult vocational trades CTE, we believe 5% of the total, or $775 million, is available for interactive training aids. If there is a compelling result from the next-generation maintenance trainer experiment, there will be meaningful a business opportunity. CTI will have to move quickly, for while the technology and techniques of the next-generation approach will be protected IP, the approach could be imitated. . As with many innovations, disproportionate rewards will come to the early mover. Accordingly, CTI believes it can raise sufficient funding to initially develop VEs for five maintenance categories to include aircraft and avionics (138,900 jobs in 2012 ), heating, air conditioning and refrigeration (267,600 jobs), industrial machinery mechanics and maintenance (447,600 jobs) automotive service technicians (701,100 jobs), and telecommunications equipment installers and repairers (217,200 jobs). We estimate the cost of each VE at about $1.5 million for a total investment of $7.5 million. Add to this general selling and administrative costs sufficient to produce meaningful market penetration ($2.5 million) and the project will need $10 million total. The CTI management cohort includes the key personnel to assemble and execute the financing, product development, and business development required for this enterprise. Ms. Stephanie Granato, CTI COO, (JD Yale Law School, MS London School of Economics, BA UCLA) has extensive experience with early-stage technology financing for US companies, having represented a broad range of public and private corporate clients in a variety of industries, advising on transactions and raising capital for companies in a variety of industries. James Korris (MBA Harvard Business School, BA Yale) has developed and sold best-selling television, video game products along with myriad US DoD and IC products. Ms. Granato is admitted to the bar in California, New York, Washington, D.C. and Connecticut, and holds Financial Industry Regulatory Authority (FINRA) licenses Series 63 and 79.

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