Introduction of the Product
On the modern stage of development, society has already created a number of different approaches that can increase the flexibility and comfort of a human being. Nevertheless, there are different risks and situations when a person needs instant help in difficult situations. One of the most effective methods of reaching the maximum level of security, not to feel restricted, and reduce spending is the usage of electronic or robotic companions.
It is explained by the constant and stable work, the elimination of personal interests, diseases, and weekends of the employee (Royakkers and Est 81). It is worth highlighting that the robotic companion is the perfect option to reach the goal, namely the security and facilitation of life, by saving a balance between costs, quality, and progress. The development of the technologies today will consequently lead to a number of possibilities tomorrow. Innovations are not only about technologies; it is more about combining experience and adjusting them not only to the current market needs but to the needs of the future customer as well. Nowadays, it is evident that electronic or robotic companions will become an essential part of future life.
Analysis of the Industry (Porter’s Five Forces)
In order to get better involved in the issue, the industry should be analyzed by Porter’s five forces, namely competitive rivalry, a threat of new entry, buyer power, supplier power, and a threat of substitution.
The modern system of human support functions in relation to human needs. In case an individual needs something or wants to get help, he can consult certain institutes. However, it is not always possible, for example when a person is attacked by a criminal, and there is no time to call the police or when an individual experiences a heart attack or allergic reaction. In such a situation, the system of support that was developed by society, despite its competence, cannot provide a human being with needed help. Thus, the robotic companions are essential, and they are undoubtedly more effective in terms of instant help and reaction. So, the market is not very competitive as the robotic companions provide a number of advantages.
It is worth pointing out that this segment will turn to popular and competitive when the majority of companies realize that it can be profitable. Thus, the threat of new entry is high. The fundamental factor that will determine the success of the company is the implementation of multi-functional and effective innovation. One of the examples of the company that influenced the technological market is considered to be Apple. It changed the concept of smartphones and opened a new segment of the market. At the very beginning, Apple did not have rivals, however, with the development of technologies and understanding of other companies the true value of innovations Apple faced a lot of competitors that put the popularity of the product under threat (Wit and Meyer 65).
The robotic companions will enjoy tremendous popularity and no matter the price of the product. The target group of customers will be found. The price for innovations and specific goods is high at the beginning of the production. However, it should be stressed that in the future, the price will decrease significantly. The original price will be high as it should cover the expenses for the research and production of the goods. The high price will also serve for the popularization of the product. Robotic companions will be purchased by wealthy people, and they will establish a new trend.
As for the supplier power, it should be noted that they would not influence the price of the product as a number of companies invest in development and innovations and will be able to produce necessary details and parts for the robotic companions.
In terms of the threat of substitution, it is essential to stress that the risk of substitution is low. Although there are some risks that the product will not be popular or will be substituted, it should be noted that innovations always attract and robotic companies are likely to experience success on the market. Robotic companions will not be substituted until the time the companies invent an even more innovative product that will suit the needs of the customers better than robots. From the stated above, the conclusion can be drawn, the threat of new entry is high; the threat of substitution is low, the power of buyers is medium, the power of suppliers is medium, and competition is low.
Blue Ocean Strategy
- Eliminate the risks of the absence of help in difficult situations;
- Raise the security level and facilitate daily life;
- Reduce the level of criminal activity and death because of lack of help;
- Create a new movement in the technological industry, build social relations, and transit to the new stage of development.
Implementation Plan and Budget
First of all, the technologies should serve the needs of people with disabilities as they are the group that needs such electronic companions most of all. This way, the system will be implemented in the system of medicine, and it will provide a necessary level of promotion and help people who need it. Moreover, the company can get the support of governmental structures. In addition, the product should be positioned as the one that is vital for every human being. To increase the revenues and budget, it is essential to create a system where people will be able to invest money and obtain the product in the future with a discount.
The production of robotic companions demands a lot of resources and money. The pre-order will positively affect the production as it will provide manufacturers with enough money. However, the customers will benefit as well as they will get the product cheaper. This experience was used by Tesla Motors when they were selling solar panels and charger stations (Daim, Pizarro, and Talla 78).
Market Data
In order to choose the suitable direction of the company’s development, it is essential to examine and evaluate the market according to market data. It will consequently lead to the reduction of the risks and will increase the popularity of the product. The combination of different kinds of statistic data will be beneficial for the development of the company’s strategies and will contribute to better profits.
IPR strategy
In the sphere of production where innovations receive the priority and the primary concern, the fundamental tool for fostering the development and implementation of new technologies by a certain company is the protection of innovative ideas. The primary strategy is to develop the design of the product that will be recognizable.
Design of the MVO
While developing the innovation, a particular focus was put on its visual concept. It was considered critical that the proposed product has an attractive design. Practice shows that a large number of customers are determined by visual perception while comparing the offers of a particular product line. From this perspective, creative and friendly design is likely to ensure a competitive advantage. The draft visual concept of the proposed product is represented below.
Furthermore, a website was also designed in order to support the developed concept. It is assumed that product promotion will be more productive in case the targeted audience is informed through various media channels. Hence, the web-site includes the essential mandatories and gets the audience informed about the core values and the strategic attributes of the brand.
The site was created with the help of the Wix platform that offers unlimited opportunities in terms of concept construction. The site has a bright and playful design and a convenient interface concept. It is assumed that this platform will not only assist in raising the public awareness of the product but will also simplify the relevant connection for potential investors. Moreover, the Wix platform is a free resource so that this type of design implementation does not require any extra expenses.
The key benefit of this prototype resides in the fact that it can be accessed through the relevant Facebook page. Otherwise stated, people can reach it through the re-posted links or through the direct web link.
Implementation Plan
A consistent implementation plan determines the general efficacy of the project’s realization. Thus, it is important to ensure that the targeted timeline sets reasonable limits for accomplishing every stage. The timeline represented below shows the key milestones of the project implementation within the next months.
The timeline represented above shows that there are seven key stages that constitute the project’s implementation. First and foremost, it is the idea generation and screening that should be essentially carried out at the very beginning. At this stage, it is important to generate the general concept of the product and try to target its place in the relevant market. Thus, preliminary research has been carried out in order to examine similar offers and evaluate the demand for this kind of innovation. A thorough study of these aspects has shown that the relevant niche is not fully filled yet, and the demand for high-tech innovations keeps growing. It was likewise identified that the proposed product should essentially possess some peculiar characteristics apart from merely entertaining options. As a result, it was decided that the innovative product might carry out the assistive function. Otherwise stated, it can be positioned as a multi-functional electronic companion.
Later on, at the development stage, the concept was elaborated, and the product acquired some new parameters. The business analysis that is being currently carried out is aimed at evaluating the rivals’ offers and targeting the audience. At this point, it is assumed that the targeted audience will comprise at least four social clusters: children, high-tech lovers, wealthy class, and those who need some assistance (patients, physically challenged people, elderly people, etc.). It is also proposed that the product is outsourced with the help of a recognizable brand in order to increase the public’s interest and gain its loyalty.
As soon as all the stages described above are completed, it will be necessary to carry out the relevant beta testing and perform a powerful marketing campaign. The former is expected to determine the core flaws in the pilot version of the product and eliminate them. In addition, the sample of customers will be involved to comment on the product’s disadvantage – the received feedback will be helpful to perform the essential improvements.
The marketing campaign should get the targeted audience informed of the product’s launch and create a feeling of anticipation. As far as the beta testing is completed, the final technical implementation will be performed with due consideration of the collected customers’ reviews.
It is considered that the launch of the product is not only accompanied by a powerful advertising campaign, but the date of its release also coincides with some popular holiday. In this case, there are better chances to receive high revenues. The launch stage also implies fixing the reasonable price. The preliminary cost can be introduced at the beta testing stage, though it might turn out that the initial cost is irrelevant to the market realities and needs to be fixed. In any case, it is essential to ensure that the set price is both rational and competitive.
The final implementation stage includes evaluating the outcomes and assessing the revenues. The key target of this stage resides in identifying the factors that impede the product’s promotion. It is possible that the project’s evolution will show that some changes need to be implemented. The duration of this date is targeted at a one-year period.
Budget Plan
As long as the product is currently at the development stage, it is considered most rational to begin planning the budget in terms of expenses. The table below represents the budget plan for the next 12 months that contains the presumable expenditure items.
Therefore, as might be seen in the table above, the largest expenditure is the production expenses. It should be noted that such a phenomenon is typical of high-tech product development. Another critical expenditure is personnel expenses. From this perspective, it is highly problematic to define the expected sum of money required for the outsourcing contract. The size of expenses, in this case, depends largely on the company that will agree to collaborate – the more recognized brand it will be, the more money will have to be spent on the contract.
Meanwhile, it is essential to note that the presented budget plan reflects general prospects. Otherwise stated, it should be realized that the indicated expenses will be dispensed throughout the twelve-month period. Thus, the major part of expenses will refer to the first cycle of product development whereas its implementation will require less money. It should, likewise, be noted that the current business plan might fail to include some expenditures that are likely to arise in the course of the project’s realization. As a consequence, it is recommended that the targeted amount of expenses is rounded off to half a million dollars.
While the required expenditures are relatively predictable, it is hardly problematic to forecast the expected revenue. Moreover, the size of the revenues depends largely on the cost set for the product. The table above represents a brief overview of the expected revenues for four cycles (presuming that each of the cycles stands for three months).
The first cycle is not expected to bring any revenues, as, during this period, the product will be developed and tested. The highest revenue is expected in the second cycle that coincides with the product’s release. Practice shows that recently appeared product meets the highest demand possible. Thus, it is necessary to take into account the fact that the powerful advertising campaign will attract more customers than there will naturally be in the future. In other words, the highest sales are expected at the beginning of the product’s launch when it will be perceived as a novelty.
However, a few months later, the interest in the product might naturally fall. First and foremost, some of the customers are apt to be dissatisfied with the product’s quality. Secondly, the product will lose its innovative connotations. At this point, it is considered reasonable to cut down the cost of the product in order to maintain the revenue’s level. In the last cycle, the sales are expected to fall insignificantly as the cost-reducing approach might not be employed at this stage.
Works Cited
Daim, Tugrul, Melinda Pizarro, and Rajasree Talla. Planning and Roadmapping Technological Innovations: Cases and Tools. New York: Springer, 2014. Print.
Royakkers, Lamber, and Rinie Est. Just Ordinary Robots: Automation from Love to War. Boca Raton: CRC, Taylor & Francis Group, 2015. Print.
Wit, Bob, and Ron Meyer. Strategy: Process, Content, Context: An International Perspective. Hampshire: Cengage Learning, 2010. Print.