Running Head: MINIMUM VIABLE PRODUCT 1

Minimal Viable Product

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Executive Summary

This paper examines in details both short term and long term approaches for a minimum viable

product (MVP) to be effectively introduced in the market. Carrying out a detailed evaluation and

determining the validity of these strategies is very key as an organization enters into the new

market. The company needs to clearly examine and choose both the company's short and long-

term goals, mission and objectives that are in line with the future technological needs of the

market. Formulate and implement strategies and tactics, layout and policies that match with the

market structure. A minimum viable product (MVP) can be defined as an advancement system

in which another item or site is produced with adequate features to fulfill early adopters (Moogk,

2012, p.23). The final set of features are just outlined and created in the wake of considering

criticism from the item's underlying clients. his report finds it important to make critical analyses

on the minimum viable product in order to establish its suitability, adaptability and viability and

even further forecast on future market success.

The following methods of analysis are used to analyze the MVP; calculating the payback period,

Net Present Value (NPV) and Return on Investment (ROI). The analysis of all costs is clearly

shown in this report in the cost analysis section. Positive NPV gotten from the calculation shows

that it is economically and financially feasible for the company to invest in this new product.

However, a detailed customer analysis needed to determine the needs, the buying behavior,

choices, preferences of existing and the changes they wish to be made on the new product. This

helps the company to develop and implement a minimal viable product that meets the desire of

the customers The MVP should be Presented in a way that is well understood by all stakeholders

in the hospitality industry.

Table of Contents
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Executive Summary.........................................................................................................................2

Short-term Strategy to launch MVP and validation........................................................................4

Mission.........................................................................................................................................5

Vision...........................................................................................................................................5

Objectives.....................................................................................................................................6

Goals............................................................................................................................................6

Hypothesis....................................................................................................................................6

Cost-Benefit Analysis for Short Term Period.................................................................................7

Long-Term Strategy.........................................................................................................................8

Mission.........................................................................................................................................8

Goals............................................................................................................................................8

Objectives.....................................................................................................................................8

Strategies......................................................................................................................................8

Tactics..........................................................................................................................................8

Hypothesis....................................................................................................................................9

Product Roadmap and Minimal Viable Product for Virtual Reality and Augmented Reality........9

Integrations of Virtual Reality and Augmented.............................................................................10

Cost-Benefit Analysis....................................................................................................................10

Recommendation...........................................................................................................................11

Conclusion.....................................................................................................................................11

Bibliography..................................................................................................................................12
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Short-term Strategy to launch MVP and validation

Technological innovations play a very key role in shaping the marketing sector. Therefore, it is

very paramount to examine and put into consideration technological changes when launching the

minimal viable product (Adukaite et al 2012, p.50). Technological advancement in the recent

business world has made it difficult for any product to succeed in the market without embracing

the new developments. To effectively launch and implement the MVP the company needs to

apply these new technologies. Understanding the consumer need is one of the key pillars in

ensuring MVP success. The company should come up with objectives, goals, and strategies that

match the customers' technological needs. Market achievement is largely depended on the

financial constraints found inside the particular business consequently breaking down these

monetary components makes it conceivable to deal with any difficulties that might occur when

launching the MVP (Han, 2013, p.520). These Economic constraints include the procedures,

policies, and rules which ought to be adhered to by all market stakeholders. Therefore, it is very

paramount for a company to follow these set procedures and rules when launching a product if

they want to successfully enter the market.

Discussed below are some of the short term and long term strategies that can be used to ensure

that the MVP is a success.

Determining your potential customers, their preferences, and choices. This done through

consumer analysis. Consumer feedback and experiences on the online platforms in terms of

quality of services rendered in various hotels are analyzed, gaps identified and the recommended

measures put in place to improve customer satisfaction. This helps the company comes up with a

new product that meets the desires and needs of the customer's hence successful product entry

into the market. The online hotel reservation system, for instance, the use of Qloapp helps in
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curbing up these gaps evident in the hospitality industry by determining on areas which require

improvements and those have not been addressed despite the need.

Furthermore, Qloapp is designed in a manner that eliminates common challenges in the

hospitality industry. The application helps the customers to know the nearby hotels, tourism site

by just signing up using their computers (Shen et al, 2011, p.533).

Customers can still book and pay for their accommodation using the same online application.

Customers can use virtual reality glasses incorporated in this hotel app to choose their rooms.

This saves time and cost customers which would otherwise have incurred in looking for those

hotels and tourism site. The application launch mode makes is appealing to first clients thus

willing to use it and employ it their day to day activities (Buhalis et al, 2012, p.650).

Furthermore, there has been another advanced use of technology where robots controlled by

hotel app are used to render services to customers. This reduces the cost the company uses to pay

for their staff hence increased profits. However, the launch of this kind of product should be

done in accordance with customers and market needs. This new technology in the hospitality

industry was first launched by hotel schani in Austria. Many international hotels over the globe

have embraced this new technology (Wang et al, 2016. P.300).

Mission

To create customer value by providing affordable, reliable and cost efficient online booking

platform.

Vision

To be globally recognized Application that ensures e

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Objectives

 To provide a platform to manage on-desk and online bookings

 To display organized information of hotel, prices, and pictures.

 To add multiple hotels/rooms to the system.

 View of availability of rooms in real time.

 Store customer information which can be accessed anytime.

 A user-friendly interface for customers for the easy booking process.

Goals

 To efficiently and accurately link customers to hotels of their choice.

 To ensure quality and affordable hotel services across the world.

 To change prices of hotel rooms when needed.

 To provide a secure payment gateway for online transaction.

Hypothesis

There have been many challenges in the hospitality industry, accessing various tourism sites,

hotels have been a challenge to many customers, Majority of players in this industry have

realized huge losses because of poor services they provide to the customer. Inability to meet all

the consumer needs have made investing in this sector difficult and risky. However, due to

technological advancement, these problems have been drastically solved. Searching for

accommodation in various hotels has been made easy by use of Qloapp. Customers can now

book and pay for hotels and other reactional centers.

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Cost-Benefit Analysis for Short Term Period.

Cost-benefit analysis (CBA) is a methodology that is used in comparing total expenses of any

given project with its expected advantages or profits (Dasgupta, 2014, p.90). The essence of

carrying out this analysis is to aid the management in making sound investment decisions. Cost

analysis calculations are done for the first three years for the short-term cost-benefit analysis.

excel

Rate on Investment (ROI)

The number of years which is represented by (n) is three years, n=3.

ROI3 = (net benefits/total costs)

= (b0+b1+b2+b3)/(c0+c1+c2+c3)

Net present value (NVP)

NPV = [(B0 - C0)] + [(B1 – C1) / (1 + r)] + [(B2 – C2) / (1 + r)2] + [(B3 – C3) / (1 + r)3]

B = Benefits; C = Costs; r = discount rate; t = time period; n = number of time periods

Payback period

The payback period is the time span required to recoup the cost of an investment. The payback

time of a given investment or task is an essential determinant of whether to embrace the position

or undertaking.
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Long-Term Strategy

Qloapp is designed in a way that allows its users to book and pay for their accommodation.

However increased consumer needs to improved services like the ability to rate service rendered

by hotel staffs has compelled the company to come up more advanced application. The company

long term strategy is to develop a more advanced application that gives them that chance to rate

the performance of different workers in various hotels.

Mission

To develop an application that allows customers rate services rendered by hotel workers.

Goals

 To improve customer satisfaction.

 To install innovative technology in the hospitality industry.

Objectives

 To minimize costs incurred in physical booking

 Make the application suitable for various customers.

Strategies

 Increase the number of customers using this application in the hospitality industry.

 Continued upgrade of the application so as to meet continued customer needs.

Tactics

 Reduce booking delays.

 Ensured that the application is in use anytime.

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Hypothesis

A lot of marketing has been done on all social media platform. Individuals can download and

install this application using their laptops or mobile phones. The customers can login in and

search, book and pay for their accommodation at the comfort of their seats. Consumer feedback

is used to gauge the satisfaction and also for making necessary advancement.

Product Roadmap and Minimal Viable Product for Virtual Reality and Augmented Reality

Product roadmap involves determining the product work stream. This involves determining the

output of the expected application. Determining the time by which the application will be fully in

use. Organizing the workers involved in coming up with this application to work in teamwork to

facilitate easy implementation of this application. Coming up with key activities that should be

done in the process of developing and implementing this online application that allows the use of

self-driven cars. It is very important to access and communicate the risks that are likely to occur

in the process of developing the application. Coming up with possible solutions to curb up these

risks. The developer uses this response to make improvements on the app.
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The following diagram shows the product roadmap

Integrations of Virtual Reality and Augmented

Virtual reality especially the virtual reality glasses will be used by customers to choose rooms in

a hotel. Qloapp is designed with a tool that enables anybody to download it provided their phone

is connected to an internet service provider. (Zhu et al,2016, p.14). The application is used in,

searching and booking of hotels across the world. This reduces the time and makes it more

convenient for customers willing to use this service.

Cost-Benefit Analysis

Excel

Net Present Value

The discounted cash flow is calculated as follows;

Achieved by = Discounted benefits (A) – Discounted costs (B)

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Payback period

Return on investment

ROI = (Total discounted profits – total discounted cost) /total discounted cost.

Recommendation

 The company must consider the customer's feedback when developing a more advanced

application.

 The application should be developed in a manner that is easy for anybody to download,

install and use.

 The company should put into account the future technological advancement while

developing the application.

 The company must ensure that the application meets demands, needs, and consumer

expectation.

Conclusion

Technology innovation is the future of any industry thus when launching the minimal viable

product is should demonstrate the ability to cope with technology dynamics in future. The

market performance of the minimal viable product is determined by the level of understanding

the environment and customer behavior. Technology application needs to be embraced by

stakeholders to such application succeed in the hospitality industry.

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Bibliography

Adukaite, A., Reimann, A.M., Marchiori, E. and Cantoni, L., 2013. Hotel mobile apps. The case

of 4 and 5 star hotels in European German-speaking countries. In Information and

communication technologies in tourism 2014 (pp. 45-57). Springer, Cham.

Buhalis, D. and Law, R., 2012. Progress in information technology and tourism management: 20

years on and 10 years after the Internet—The state of eTourism research. Tourism

management, 29(4), pp.609-623.

Buhalis, D. and Main, H., 2014. Information technology in peripheral small and medium

hospitality enterprises: strategic analysis and critical factors. International Journal of

contemporary

hospitality management, 10(5), pp.198-202.

Dasgupta, A.K., 2014. Cost-benefit analysis. In Economic Theory and the Developing

Countries (pp. 87-97). Macmillan Education UK.

Han, D.I., Jung, T. and Gibson, A., 2013. Dublin AR: implementing augmented reality in

tourism. In Information and communication technologies in tourism 2014 (pp. 511-523).

Springer, Cham

Moogk, D.R., 2012. Minimum viable product and the importance of experimentation in

technology startups. Technology Innovation Management Review, 2(3), p.23.

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Shen, Y., Ong, S.K. and Nee, A.Y., 2011. Vision-based hand interaction in augmented reality

environment. Intl. Journal of Human–Computer Interaction, 27(6), pp.523-544.

Victorino, L., Verma, R., Plaschka, G. and Dev, C., 2015. Service innovation and customer

choices in the hospitality industry. Managing Service Quality: An International

Journal, 15(6), pp.555-576.

Wang, D., Xiang, Z., Law, R. and Ki, T.P., 2016. Assessing hotel-related smartphone apps using

online reviews. Journal of Hospitality Marketing & Management, 25(3), pp.291-313.

Zhu, Y., Zhu, K., Fu, Q., Chen, X., Gong, H. and Yu, J., 2016, December. SAVE: shared

augmented virtual environment for real-time mixed reality applications. In Proceedings

of the 15th ACM SIGGRAPH Conference on Virtual-Reality Continuum and Its

Applications in Industry-Volume 1 (pp. 13-21). ACM.