[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

FOCUS GROUP
“Define the act of communication and the role of adaptation in the social and economic existence of your chosen audience”
After conducting the focus group, I came to the conclusion that there was a major need for an interactive platform at AUS where students can be informed of events, workshops, as well as an interactive environment in which they can learn.

BUSINESS IDEA

InterACT will be a company that will sell interactive screens that will have customized software developed for the use of the screen. Each screen can be adapted to the use it is intended for. Software can be developed for sharing information, for displaying information as well as for educational purposes. With time, InterACT will grow to cover commercial advertising for malls and storefronts.

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

BUSINESS MODEL

User Research

Provided Service

The interactive screens will make money through their sales and subsequent software and displays developed for them. The screens can be commercialized because there are many universities in the UAE that can make use of the screens and will want to adopt the technology as well. Because the screens are customizable and a great medium for advertising/education, almost any organization can buy it and develop it according to what they intend to use it for.

VALUE INNOVATION
Although the idea for interactive screens is not new, the concept of applying them in a university setting is. Advertising events is usually done through posters and emails. A lot of students don’t take the time to look at these posters. Once they see the interactive advertisements they will be drawn towards it and it will provide a lot more information and engage the viewer, which will lead to more successful events. Using these interactive screens will foster a sense of community at AUS; bringing students closer together.

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

BASIC VIABILITY SCREENING
Software developers + designers

Panasonic & Interactive Technology & AUS

Customer Support FedEx

Technical expertise Universities Schools Museums Malls Storefronts Legal
Purchase rights for interactive technology Software copyrights

Strategic partnerships

Delivery & Maintenance Installations Blogs

OPERATIONS CUSTOMERS

INTERACTIVE SCREENS
ISSUES
Ethical
Use of software for purposes other than what is intended Sensitive or abusive posts

PROMOTION

Magazines Billboards Newspapers

Moral
Privacy and sharing settings for users No disclosure of private information

Word-of-mouth

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

BUSINESS ELEMENTS

TECHNOLOGICAL VALUE
Software Plug-ins Games Ads Displays Built when screens become the standard – more and more institutions and stores start using screens for education/advertising The concept of having interactive screens to aid with education or advertising creates an element of engagement for students or viewers in general, the added interactivity is beneficial for the users.

Screens
Different software developed based on purpose of screen Interactive Engaging Educational Advertising VALUE

Utility from complementary goods

Utility from installed base

User Centric Design Process
User requirements included into the whole product cycle Product engineered for the users

Technological Utility
Design optimizes product around how users can, want, or need to use the product, rather than forcing the users to change their behavior to accommodate the product.

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

ENTER MARKET AS FIRST MOVER

VHRN TEST

Most valuable resources Physical Pricing advantage over second mover Important for setting the standard & establishing selling prices Capture University Market starting with AUS, then expand into other markets  other universities, schools, museums, malls, stores Suppliers Screens Technology *Initial competitive advantage Intellectual Software Developers Design Team *Sustainable competitive advantage Technological Leadership **Initially no reputational efficiency – build up reputation with time Pre-emption of Assets Buyer Switching Costs

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

STANDARDIZATION

AUS

Introduce screens first at AUS (gradual) Keep adding more  all schools/buildings Extend to all aspects of university  health center, sports complex, etc.

Becomes a standard for advertising, news, posts, education, etc. at AUS

Once all the screens are installed, becomes difficult for AUS to switch to other technology

Switching Costs

SCALE

AUS

UAE Universities

Schools

Museums

Malls

Storefronts

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

RISK REDUCTION STRATEGY | Industry Based Risk Porter’s Five Forces
1. The bargaining power of buyers 2. The bargaining power of suppliers

Threats
AUS is the sole buyer of the screens Motion tracking software is offered by limited suppliers Other forms of interactive media Second-movers who find industry attractive Few rivals as of now – not at great risk

Strategies
Seek other universities to buy screens Seek international suppliers Diversify into other markets  Malls, schools etc.

3. The threat of substitutes 4. Barriers to entry

Constantly innovate and incorporate new forms of interactive media into screens Build brand reputation Quality products and excellent customer service

5. The threat of rivalry

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

RISK REDUCTION STRATEGY | Ignorance Based Risk Risk
Novelty in Consumption

Threats
Consumers (AUS students) don’t know how to use the technology to benefit them Have to obtain rights to the interactive technology easily Have to deliver great experience – no technical problems

Strategies
Marketing/ Promotional activities to raise awareness Workshops/ Demonstrations on how the interactive boards work

Novelty in Production

Hire highly skilled technical staff

Customer Service

First mover advantage Lower mortality risk

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

INTELLECTUAL PROPERTY ASSETS
Layout of screen displays Software that enables user to access and post content on screens Content developed for screens (ads, informational displays)

COPYRIGHTS
Protection from others copying same technology of message boards as well as other interactive features

Interactive Screens will have a design unique to screens from my company

Have to obtain rights for using motion sensor technology for advertising screens

DESIGN PATENT LICENSING - IN
Protection from rivals as screens will have a unique look Negotiate exclusive rights for the UAE Negotiate on royalty rates

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

INTELLECTUAL PROPERTY STRATEGY

Apply for Design Patent (2 years)

License in motion sensor technology

Enforce copyrights and trademarks on all creative work and software

Register patent under WIPO

License out software after it is successful

Collaboration with third-party firms R&D

Expansion to international markets

Outsource Manufacturing

New product development

New market exploration

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

BUSINESS CANVAS MODEL

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011 Period 1 Period 2 Period 3 Period 4 Period 5

Period 1

Launch basic screens w/ minimal display options

Add new model

Add new model

Period 2

Product refinement

Customized display screens

Add new model

Period 3

Market research

Product refinement

Interactivity w/ motion sensors

Add new model

Period 4

Prototype development

Market research

Product refinement

Interactive learning solutions software Product refinement Interactive table tops/whiteboards

Period 5

Research and development

Prototype development

Market research

PRODUCT ROLLOUT STRATEGY
Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

DIFFUSION STRATEGY

Diffusion Strategy  spread the word about InterACT & encourage users to adopt screens

Most difficult step in adoption cycle is making the transition between visionaries and pragmatists

Chasm needs to be crossed

1. AUS First adopters of screens for educational/ informative purposes

2. Other educational institutes Explore other uses of screens  more advanced software and graphics for museums Extensive software developed for schools – integrate into education system

3. Commercial Advertising Fun & interactive displays developed for ads and storefronts to engage customers Screens are introduced at AUS and as InterACT grows and word spreads more institutions/firms will want to adopt screens as the standard way of advertising and spreading information

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

InterACT SALES FORECAST
Invesment in Screens = AUS – purchaser of screens Ads Revenue Academic Resources Companies Stores Events/Festivals Total Number 10 15 10 5 40 1,000,000 1

Sales Payment AUS – purchaser of screens Ads Revenue Funding Total 40 purchasers |1000/month

Payment (6 months) 500,000 (one time) 480,000 500,000 1,480,000

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

InterACT SIX MONTH CASH – FLOW FORECAST
January Receipts Sales (Screens) Sales (Ads) Funding Total cash in Payments Purchases Rent, elec, tel, internet Wages Advertising Fixtures/Fittings Computers,etc Total Cash out Monthly cash Surplus – deficit Cumulative cash balance 500,000 50,000 60,000 2,000 15,000 30,000 657,000 (157,000) (157,000) 112,000 28,000 (129,000) 112,000 28,000 (101,000) 112,000 38,000 (63,000) 112,000 38,000 (25,000) 112,000 48,000 23,000 23,000 1,217,000 50,000 60,000 2,000 50,000 60,000 2,000 50,000 60,000 2,000 50,000 60,000 2,000 50,000 60,000 2,000 300,000 360,000 12,000 500,000 500,000 40,000 100,000 140,000 40,000 100,000 140,000 50,000 100,000 150,000 50,000 100,000 150,000 60,000 100,000 160,000 1,240,000 February March April May June Total (AED)

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

InterACT PROFIT & LOSS ACCOUNT FOR JAN – JUNE 2011
AED Sales Less Cost of Goods to be Sold fixed Gross Profit Less expenses: Rent, elec, tel, internet Wages Advertising Fixtures/Fittings Computers Total expenses Profit before tax, interest and depreciation charges AED 1,240,000 500,000 740,000

300,000 360,000 12,000 15,000 30,000 717,000 23,000

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

BREAK EVEN ANALYSIS
Break- Even point = Fixed Cost_______ Selling price – Variable Cost

157 Ads

Dirhams in thousands (000’s)

Sanaa Shaikh | 31197

[ENTREPRENEURSHIP FOR DESIGN: DOCUMENTATION] May 29, 2011

Sanaa Shaikh | 31197