What are the business and managerial issues associated with the idea - PowerPoint Presentation Example

The Revolutionary Refrigerator About Technology advancement brought us the brand new refrigerator. Users will experience a fresh way to operate a refrigerator differs from the past. We added a computing system into the fridge. New functions are anti-expiring system, auto sorting, transparent doors etc. The appearance: Technically, the form of our fridge has not much difference from the old ones, a door with 2 storing cabinets. However, the smart computing system is the heart of our product. Apart from that, the fridge has few stunning functions.

The Smart system: Prevent food from expiring Users just need to simply scan the barcode on package via the screen, after that, the screen will display the expired date of food for users to confirm and the system will store the data. Users will be reminded 5 days in advance before the food expired. With this function, users will be more alerted to expired food. Food List: As mentioned above, our system can store data from scanning barcodes. It means the system can show exactly what products are storing inside on the screen.

From now on, users just need to put some taps on the screen in order to know what they got in the fridge. Doors which can go transparent: Everyone knows that keep opening the fridge doors cost precious energy and money. So we definitely can make the doors goes transparent on your decision. Technically, we use a special glass substance which can change from opaque to transparent. Users can view the interior by just pressing a button on the screen. Why we have this idea? Most innovative products are user friendly and helpful.

As everyone is demanding more convenience, we know we should aim at creating a new product which deeply related to our daily lives – a smart refrigerator sounds good. Convenient and user friendly are our first priority in designing the smart fridge. In fact, we have this idea because of what customers expected us to change. We bet everyone must get at least a fridge at home, so the market of smart fridge is fruitful. Moreover, not much innovation about fridge came up recently and we think it has potential to develop.

That is why we target on fridge but not others. Advantages: 1: Your refrigerator can keep track of food expiration dates and act as a family message center via a built-in screen. Fridge will remind customer to take out the garbage 2: The transparent appearance of the fridges is attractive, special and unique. 3: The food date can be extended by the smart fridge. 4: it would entertain people who use the smart fridge, because they can listen to a lovely music or news during the cooking time. 5: The weather could always be display or family photos.

6: The fridge’s image processing can be aware what of products are put inside it and the LCD panel will display and interaction with the user. 7: Based the contents on your refrigerator, the smart refrigerator will be able to make recipe suggestions.  8: The Smart Refrigerator will be able to know if you are running low on certain items and be able to prepopulate a shopping list for you Disadvantages: 1: It might be costs to install many components into the fridge. As a result, it will become expensive when consumers purchase it.

2: it might be difficult for some people to use this smart fridge. For example elderly people who are unable to use it. 3: It is too complicated to learn and it might waste of consumer’s time to learn about the new smart fridge. 4: it might waste of electricity and other energies. 5: it would have more competitors. Business and Managerial Issues of the idea The first business aspect to consider is the demand for such an innovative product. This demand needs to be determined in quantitative terms so as to understand the feasibility of manufacturing and marketing it.

Detailed market and trade research needs to be conducted (Jolly 2005). Furthermore, the location of this demand needs to be determined for selecting the markets in which this product should be made available or distributed. Creating the prototype of this product is an expensive idea, which shows that the actual product will be also carry a higher price tag. This product will most likely be manufactured in China or Korea so the mechanics of the requisition need to be established. All of these imply complicated costing (of production) for which adequate funds will be needed and should be available before kick-starting the project.

On the product side, given high rate of obsolescence of the product (Mohr, Sengupta & Slater 2009), constant investment will need to be made to keep the product technologically updated and competitive. Patenting and registering intellectual property rights should be expedited to safeguard the business idea. Consumer analysis is also a very important business factor that needs to be conducted at the outset. The demographics, buying behaviors, likes and preferences will have to be studied. Management will need to have strong leadership in place who can lead this innovative product initiative.

The management will have financial know how and accounting background so that they can constantly monitor the financial issues associated with the product. Management will also have marketing acumen to increase the marketability of the refrigerator and satisfy the customer. Finally, the management will identify all stakeholders through detailed analysis so that they can preempt any issues that might come up later as such as with government agencies, communities, suppliers, customs officials and tax departments.

References Mohr J, Sengupta, S & Slater, SF 2009, Marketing of High-Technology Products and Innovations, 3rd ed, Pearson Prentice Hall, NJ Jolly, A, 2005, From idea to profit: how to market innovative products and services, Kogan Page & Contributors, UK