University of KwaZulu-Natal (Westville)

Introduction to Entrepreneurship (ENTRE2IE)

Business Canvass: BotBuddy

Verona Moodley
214506073

1
INTRODUCTION

It is common knowledge
that South Africa has had a
difficult history that has
affected the economy as a whole and posed many setbacks in the development of education,
the academia focused around Science, Technology, Engineering, and Mathematics (STEM) is
a major component in this scenario. Nelson Mandela described education as the most
powerful weapon which can be used to change the world, and with The Fourth Industrial
Revolution (4IR) bringing the rise of Artificial Intelligence (AI), Robotics and a number of
advanced technological advancements that has yet to be thought of is about to change the
world we live in, STEM plays a critical role in this advancement, introducing opportunities
for employment, entrepreneurship and major developments in education to our economy.
However, our current education system does not employ STEM education in the manner
which is needed for this advancement.

1.1 BACKGROUND

STEM Education is described as the interdisciplinary approach to learning where meticulous

academic concepts are grouped with real-world lessons as students apply their knowledge of
STEM to instances that make connections between schools, society, business and everyday
life. South Africa is Africa’s leading industrialised nation, but still victim to job losses that
are attributed to digitisation. Standard Bank released a statement this year (March 2019)
stating that they intend to implement a new banking delivery model and as a result of this
there was estimate of 1200 employees who would be cut off and 91 branches closed. They
mentioned that the cut off number may in fact be less as their new model will introduce new
opportunities.
The 4IR builds upon the 3rd Industrial Revolution but intertwines multiple technologies from
the digital, physical and biological worlds. The 1 st Industrial Revolution introduced the steam
engine and the 2nd Industrial Revolution was the invention of the internal combustion engine.
“According to the World Economic Forum, 65% of children entering primary school today
will end up working in completely new jobs that don’t exist yet. This reality poses a serious
threat to readiness for 4IR”

1.2 PROBLEM STATEMENT

We can expect the 4IR to be infused with technology that has been advanced in AI, robotics,
advanced materials, 3D printing, quantum computing, Blockchain, 5G and so much more.
This will require advancements in STEM education and cognitive skills in the current
education that South Africa operates within.
The South African education curriculum currently does nor equip learning with the right
skills or education for this advancement. Computing skills needs to be more than just having
the ability to use Excel, students need to be equipped with the ability to think analytically and
cognitively and see this advancement as a world of opportunities. But how will they be
exposed to this without the proper facilities, or infrastructure?

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2 THE PRODUCT

I have based my start-up business as a solution to the lack of training, skills, knowledge and
advances in technology. A training program that focuses on educating students and the youth
through technology itself.
The core focus of this program is based on the fundamentals of STEM, AI, Robotics, 3D
printing etc. By implementing the use of a Humanoid, a robot that resembles the shape of a
human and equipped with AI programming, as the learners personal learning tool. In the
human perspective we would describe it to be a study buddy, as its purpose is not only to
educate a human but also to learn from a human. This brought about the birth of BotBuddy, a
personal learning tool in a world of technology and humans.
BotBuddy has been designed using the fundamentals of Human-Robot Collaboration (HRC)
in manufacturing and a combination of ChatBots which are being used in many markets as
tool to respond to questions and commands quick and accurately on an application platform,
and the basics of a Humanoid to resemble a human. With the combination of these three
technologies BotBuddy has the ability to collaborate with a human and learn from gestures
and human command, with ChatBots ideology we can ensure that BotBuddy has the
necessary information, teaching techniques and cognitive skills to communicate effectively
with the learner, and with the aspects of the Humanoid, BotBuddy will give it a more realistic
experience as well as lend a helping hand.

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3 VALUE PROPOSITION

The motivation behind the entire business has been about STEM education and the 4IR. The
value proposition was also in that aspect, we aim to provide our customers with the best
technology to learn from and for them to teach as well, we want South Africa to be at the
forefront of the 4IR and by ensuring the future of today is prepared to be the pilots behind
this. We also were aware that this will provide value to our researches at university level and
at companies in this industry.
Researchers/Industries will be able to further developments in the field of science as a whole,
as well as focused developments in AI and Robotics, we can expect new technologies to
come into theory and practice which will discover new teaching mechanisms. Industries and
researchers will be able to gain more funding with the success of BotBuddy, as investors will
realize the possibility of advancement in terms of AI and robotics, this will introduce more
research and development labs within universities and therefore more individuals will have
the opportunity to contribute to the advancement. Investors who fund a particular project,
namely BotBuddy, will be able to use all their resources that will be substantial to invest in
the research and development for their business, they will be able to develop the BotBuddy’s
original programme into a Bot that will best suit their business practices, this will be able to
assist them in achieving their organisational goals as well as grow the market for BotBuddy.
Business(Investors) are currently in the process of restructuring their organisations to
accommodate for the 4IR, with that many businesses are making provision for training and
skills development, by investing in research they are also able to use this opportunity to
involve their current work force in the process behind the BotBuddy, with that they will have
a real-world understanding behind BotBuddy making it easier to adapt when it comes into
effect. BotBuddy research labs will be able to accommodate businesses workforce in the
development, therefore acquire the necessary skills and training.
Youth from secondary and primary schools will be exposed to early development programs
as BotBuddy will be more common and a useful tool in the teaching industry, youth will be
able to attend classes as well as training centres that will begin their knowledge of
programming, AI, robotics, 3D printing and more. With BotBuddy’s ability to communicate
of a human level, student will feel as though they have a kindered spirit in learning. Youth
gaining knowledge on programming etc. will mean they are preparing for the 4IR at a young
age, and possess the skills needed to be an entrepreneur and a viable work force candidate.
The youth will also have personal improvements such as being able to apply tools learnt to
their everyday obstacles.
Universities already have facilities and programs dedicated to robotics and computer science
however, the information being delivered is often outdated. The tools being used are incable
of developing the new industry, so with BotBuddy not only will universities could learn from
a robot, but they will also be able to further their knowledge by joining the research and
development of robotics and AI in general. By educating these young minds, we can access
their cognitive thinking and those who enrol to further the research and development as a
postgraduate they will contribute new, modern, innovative concepts.
We can provide value to 2 more groups, namely, manufacturers and government. As we will
be providing manufacturers with a new market to which they are able to manufacture
products and introduce a new customer market for their audience too, manufactures will also

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be taking on a greater work load and thus new job opportunities will be presented, this can
lead to expansion for their factories as well as new production equipment. The new
production equipment will mean that the innovation of BotBuddy can grow as the theory
behind BotBuddy grows. Manufacturers of AI and robotics will be able to advance the
purpose behind BotBuddy by becoming potential investors in the product. BotBuddy will be
able to prepare manufacturers for the upcoming 4IR, as BotBuddy can be customized to work
as a manufacturing tool as well, they will be able to assist in the daily engineering of the
product by using their capabilities of HRC, this will lead to a greater production efficiency,
meaning more products will be developed and prepared to be introduced to the market.
Goverments benefit from this product as it provide a new tool to delevelop South Africa’s
infrastructure more efficiently and with less the cost. BotBuddy will be able to perform their
necessary tasks at unusual hours, that would restrict humans, it will also ensure that tasks are
completed accurately and in a timely manner. BotBuddy, will also assist government when it
comes to educating woman and disadvantaged youth. Many schools in rural and undeveloped
areas lack teachers and information to educate their learners. With BotBuddy being
accessible to these areas, not only will the youth have the chance to engage in the learning
experience their teachers and parents will also be able to benefit from BotBuddy’s presence.
Goverments can also use BotBuddy to improve the health services of South Africa,
BotBuddy can be a care assistant. Who responds to individuals in aid, whether in a hospital or
in a underdeveloped area. These mentioned above will provide as solutions to the
unemployment, education and health services of South Africa, and the entire economic
growth of the country.

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4 KEY ACTIVITIES

The key activities contain the following, Product research and development, manufacturing,
marketing, and product after-sale service.
Product research and development has been inspired by recent research findings and new
products being innovated and tested. Product research and development will be an important
activity to perform as without the continuous research and development there will be little to
no innovation in BotBuddy. BotBuddy will be limited when it comes to customization and
personalisation, industries would not be able to use BotBuddy in their operation and this
would restrict their growth. Research and development would require that there be research
labs and development factories, and we expect that Universities would be a key component to
these labs and factories, students will be able to peruse their interests beyond their course
requirements and contribute to the innovation, the researching and development team will
grow in participants which will provide more opportunity to continue these activities. These
activities will also encourage students to peruse careers in the field of robotics and AI, they
will also be exposed to new technology prior to applying for job ventures, they would also be
given the tools necessary to become entrepreneurs. The research and development activities
will also attract potential investors.
Manufacturing, a prototype will need to be tested and the product will require that it be
designed, the product can be manufactured in several batches and sold into the market.
Manufacturing of BotBuddy will require that resources and materials are available during
production and programming and engineering experts will be continuously involved in the
manufacturing process as they will provide the programming and functionality.
The product after sale service comes with a product guarantee. Which contains the service of
repairing any products that have been troublesome and replace if necessary. The service is
also able to introduce new algorithms as the technology advanced over time so that
information is recent and not outdated. Customers will need to be able to assist whenever
they are in need, because we are intending to spread our product across South Africa we will
need a large amount of agents working around the clock to ensure that customers are attended
to. The after sale services will be virtual and reality, there will be the online platform where
there can be interactions with a Chatbox and there will be a physical platform where the
customer can engage in a face to face interaction. These need to ensure that they are available
at the necessary times to keep customers satisfied.
Marketing strategies need to be effective in order to meet and attract customers. We would
need to ensure that we engage in the appropriate marketing activities to attract new customers
and to keep other customers updated about the products development, we attempt to ensure
that our current customer base is made aware of the versions of BotBuddy and the hardware
accessories and changes made available, and new customers need to receive this information
so that they become aware of the new products and features, that may have not been useful to
them in the past.

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5 KEY RESOURCES

In order to ensure that BotBuddy is able to perform the tasks that is assigned to it and it’s
determined value propersition, we will be required to ensure that BotBuddy has been
equipped with the necessary resources. AI and robotics experts will contribute to the
innovation of the BotBuddy these experts will provide the consistent development and
advancement of BotBuddy, many of these experts are expected to be university
lecturers/researchers and businesses/investors. Universities will provide new findings towards
the advancement of the programming behind the operations of the BotBuddy as well as
contribute to the engineering of the BotBuddy, they obtain extensive research on the current
abilities of the BotBuddy as well as identify the weaknesses that they may experience during
operation. By identifying the strengths and weaknesses they will be able to find solutions to
these weaknesses whilst ensuring that it’s strengths are being built upon. This will allow
businesses/investors to find new information to apply the BotBuddy to their business, this
will provide additional funding to the research and development. These businesses/investors
often consist of their own experts who will provide facilities to test prototypes and provide
essential feedback, and perform related changes to the BotBuddy, these will provide more
participants involved in the development of the BotBuddy, ensure that there is sustainability
of the product and it does not become outdated.
Schools and the youth are providing a market that we can use to identify the big gaps in
education for the next generation. This will further BotBuddy’s functionality as we are able
to include the necessary features in order to eliminate the gap in the education system.
Manufacturers will provide the necessary tools and materials that will be needed to produce
and market the BotBuddy, they will also identify areas that the BotBuddy has the potential to
venture into.

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6 CUSTOMER RELATIONSHIP

We provide online customer service which is made accessible on the official website of
BotBuddy, where sales can also be transacted.
Each BotBuddy has a guarantee which can either be free or charged depending on the length
of the free guarantee period. With this guarantee the customers are committed to the care
package offered for BotBuddy, which means that customers who find that their product does
not work properly or breaks can have their product repaired and in some cases replaced
during the guarantee period.
Each BotBuddy can be customized to suite the user, it can have a more personal attribute to it
and it can also be customized to their purpose, or specific tasks. Customers are therefore able
to use their BotBuddy in any scenario. By performing customization we are able to identify
the needs of our customers and gain insights for future development and satisfaction.

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7 CUSTOMER SEGMENTS

Researchers/Industry companies and University and School education programmes.

Researchers/Industry companies could use BotBuddy to understand the developments he has
at an engineering level as well as at the technological level. By interacting with BotBuddy,
they will be able to expand their own research into fields that were previously unknown, it
will allow for the introduction of new opportunities and improve the quality of education.
Further we notice that businesses and investors who are involved in technology and
innovation are a viable target as they will be willing to fund the more practical projects as
well as share their interest in purchasing for their business goals.
Universities and School education programs, by having a BotBuddy product in any of those
environments the learners are instantly at an advantage as to those who do not, as BotBuddy
can ensure that another knowledgeable instructor is present and providing focus to those we
require it. It will also teach this students about STEM education and how they can use it to
further themselves, they can also interact with BotBuddy on a level of understanding and
communicate freely, ask questions and get a quick and accurate response which will not only
further your STEM knowledge but also improve the efficiency of the tasks you complete and
so forth.
Manufactures will be a suitable customer group as they will be able to use BotBuddy to make
their production process more efficient and introduce more customers to their business, they
can use BotBuddy as a tool or they can act as external manufacturers of BotBuddy, providing
their expertise in engineering and also be able to show the factors that HRC will be relevant.
They will be able to ensure their working environment is a suitable one and their employees
are being exposed to new technology.
Goverments are a potential customer segment as the BotBuddy will provide services in
education, health, employment and infrastructure. The society as a whole will benefit from
BotBuddy as the quality of education at every level would have improved and thus improving
the living conditions for South Africa, there will be more job opportunities, more facilities,
more entrepreneurships and technology.

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8 COST STRUCTURE

We are likely to experience costs in 5 categories; research and development, labor cost which
will include the cost of employing a working force, capital investment such as offices and
factories, manufacturing all cost involved in manufacturing, including the cost of purchasing
the materials, and marketing which is the expense of actually promoting the product based on
the channels strategy.

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9 REVENUE STREAMS

We can expect to earn an income for BotBuddy from sales, customization, maintenance,
government tenders and businesses/investors.
Sales would be the main revenue for BotBuddy, BotBuddy can be sold at either a once off
payment or over a subscription period where monthly payment will be made by the customer.
Another stream would be from customization where customers require their BotBuddy to be
more personalized so they can be more comfortable and suitable for their purposes at a cost.
Maintenance income will be collected only when the BotBuddy has reached its guarantee
period, maintenance there after can they can renew their care package with a monthly
subscription, or they will be required to pay service fees at each instance that a repair is
needed.
Government tenders would be allocated to develop BotBuddy to be distributed to rural areas
in order to ensure that BotBuddy and technology is easily assessible and made available to
advance knowledge and STEM education, it will call for a number of BotBuddy robots to
give all South African’s the same education factors as other schools. Governments will
allocate these tenders to secure the sustainable growth of the South African economy and to
prepare the youth and the country for the 4IR.
Business/investors will contribute the capital towards BotBuddy so that they are able to use
the original design as well as ensure that BotBuddy can be made more appropriate to their
business needs, they will be willing to spend more money on the development of their own
staff and the products that they use in their daily business operations. Businesses are willing
to invest in the next generation and the sustainability of their business, they will be willing to
purchase a number of BotBuddy’s to contribute to efficiency and profit. Businesses/investors
are also interested in the future of their business and the growth of their business, they are
concerned with how they will be able to survive in every market, with the 4IR approaching
they are willing to spend money in the theory behind BotBuddy as there is a lucrative
opportunity for them in the upcoming future, they will also be interested in funding the
BotBuddy because they would like to make sure that the next hiring pool consists of well
skilled, trained and appropriate candidates.

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10 KEY PARTNERS

Robotics and AI researchers, Material suppliers, Universities/schools and early learning

centres.
Researchers will be able to keep the value proposition as it will ensure that the product
follows the latest research findings for the continuation and to lead the product to fulfil its
purpose. Researchers will also be able to contribute new findings and the suitable
infrastructure for continuous research. As research deepens there is a need for more and new
technology and tools to put their theory into practice.
Material suppliers are our partners as we have to manufacture the hardware for BotBuddy and
ensure that it is equipped with the right components. They will also be a relevant partner as
they will be able to identify new materials to be used in the production of BotBuddy, they
will also be able to grow the customer audience for BotBuddy as they will promote the
BotBuddy as their client and this will then grow the interest in BotBuddy.
Universities and Schools will be our partners as they will provide the resources necessary
such as a work space and assist in the research and development of the product by enrolling
undergraduates to be tasked with certain responsibilities. Early learning centres will be our
partners as they will provide us with a more specific instruction in terms of development,
they will assist in identifying the problems and the solutions they provide us with a audience
to test BotBuddy and ensure BotBuddy has a sustainable growth. Further, universities and
schools will create programmes to keep the task of learning growing, they will include the
BotBuddy in their learning curriculum, offering it as an official course to specialize in.
Universities and schools will receive applications for a larger number of students willing to
venture in the BotBuddy programme, this will then mean that BotBuddy will be recognized
amongst the next generation of entrepreneurs and employees. With that being secured we can
confirm that the future of BotBuddy is possible.
Business who specialize in robotics will be a suitable partner as they will be able to promote
the BotBuddy through their own organisational marketing promotions, they will ensure that
the BotBuddy goals are in alignment with their goals. They will also be willing to advance
the sales and promotion of BotBuddy.

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11 CHANNELS

Our research has identified which potential marketing channels would be viable to meet our
customer. We notice that we adopt a Business – to – Business approach to our marketing
channels. We have considered a low- cost marketing strategy as we feel our partners and
social media marketing would be able to gain inbound techniques.
Using Internet marketing such as search engine optimization to grow visibility in the results,
we can gain traffic to our website for sales and therefore we increase our potential customer
base. With search engine optomization we are able to direct traffic to the official website of
BotBuddy using key terms in our design, this will expand our customer base as well as retain
current customers.
Social media is amongst the biggest and cheapest marketing mechanism. It provides a
platform that has been initialling designed to allow individuals to communicate with each
other, but has slowly developed into a platform for businesses to launch their social presence
with social media we will be able to advertise the BotBuddy and the benefits that BotBuddy
has. Social media will also use intelligent search assistant to link those searches to the
BotBuddy, which is of interest to them. The BotBuddy can also be advertised on social media
platforms as banners when clicked the user is redirected to the BotBuddy page. The
BotBuddy can also provide interactive posts that allow users to experience the virtual
BotBuddy so that they take a liking prior to purchase. On social media we can rely on the
users ability to share, repost, blog, mention, tag, etc. to generate traffic and attention towards
the BotBuddy, we expect social media to be one of the greatest influences towards BotBuddy.
Resellers are also a reliable channel as they would be offering BotBuddy to be bought from
them, most of our identified resellers would be selling second hand, used versions of the
BotBuddy at a lower price. Therefore, customers will show more interest in BotBuddy, this
will drive them to seek information on the BotBuddy and possible purchase brand new
BotBuddies too.
Partner marketing will be a appropriate channel as our partner’s goals will be aligned to the
BotBuddy goals, hence the success of the BotBuddy is important to them too. Most
Universities will advertise the BotBuddy in their course categories as well as open days
displaying the possibilities for students. Businesses/investors will also promote the BotBuddy
as they want their customers to be satisfied, they will advertise that the BotBuddy is
operational in their business and they will be sure to identify the benefits that the BotBuddy
will provide them, this will attract more sales as well as broaden the customer audience.
Businesses/investors will also be willing to deposit more capital in the innovation of
BotBuddy as their business needs grow with the needs of their customers. The BotBuddy will
then need to be able to adjust accordingly and that would introduce more and new versions of
the BotBuddy, introducing new markets for the BotBuddy.

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12 CONCLUSION

In conclusion, the BotBuddy will be the most suitable solution to South Africa and the
society as a whole, the BotBuddy will be able to address the unemployment issues that are
present, it will be able to educate the youth and advance the knowledge of South Africans.
The BotBuddy would be the starting step to the economic growth of South Africa, as it will
address the major components of the economy, it will be able to be adjusted to business
needs, educational needs, infrastructure, and employment needs.
The 4IR is the biggest change in the world, with South Africa being exposed to such
technology we can make sure that we are at the forefront of innovation. STEM education is
the most imperative factor in this development, there is not point in living in a world of
technology if our society lacks the tools needed to operate within the environment and to
continue the development and advancement of technology within South Africa.
The BotBuddy training centre is just the start, with all the factors mentioned above the
training centre is opening new markets and environments, it will work simultaneously with
the key partners whilst educating the youth and the rest of the world. The BotBuddy, will be
the perfect start to a new world.
We can expect the BotBuddy to fulfil all the goals of the south African economy and with the
listed revenue streams we can ensure that the cost structure remains at low expenses.
However, we should anticipate an increase as the innovation of the BotBuddy advances over
the years as the BotBuddy will introduce new technology and require hardware that will need
it to perform.

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