Executive Summary:
This report is an attempt to understand the tourism market in the world at a greater depth and hence coming up with a detailed proposition for a mobility application that will helps the enthusiastic travelers solve their travelling related issues. We understood that there is a need for a well conceptualized mobility app that will take the zealous travelers closer to their interest groups and hence helping them make better choices for their travelling related needs. The current scenario in the market is such that there is no good application available that is able to link the people to their interest group that can provide proactive suggestions and at the same time keeps everything pretty cost effective and manageable. The scenario here is such that a through secondary research was conducted followed by a primary research to help consolidating the needs of customers and hence coming up with a better business proposition. The attempt to this formulation has been highly iterative and finally a detailed solution has been formalized. Hypothesis testing based approach is the methodology adopted and in person interview is the base taken for the changes needed in the application. The business canvas changed post the primary analysis and all the research findings are there in the appendix section.
Problem – Solution Fit:
In order to find the fitting solution to the problem prevailing in the market. There was a need to dig into the market world and come up with a proposition. The initial problem solution fit was seen through analyzing the secondary resources, where it was hypothesized that there is certain cadre of customers available who are keen towards their travelling needs and they are unable to accomplish their needs effectively. The main cause of this issue is that people are unable to find a potent platform to exercise their need analysis. From the first set of Test and Learning card as attached in the Appendix shows it clearly that there is a need that is identified (Appendix 1 and 2) and since that analysis is purely done through internet, there is a certain level of criticality that may be linked with it. The initial draft assessment, which may also be termed as the beta version of the final app could be made through this primary set of analysis. But that is not a fool proof solution as the research is all secondary (Blank, 2013).
To further accentuate the thinking capabilities and the enhancements that are needed, another set of tests were conducted and this time real on field interviews were taken for it. The interviews synopsis is captured in the Appendix. Through that we got to analyze that, there is a need for a proactive and more systematic system that will be able to serve the customers need in a better manner. Appendix 3
See the appendix section for more details.
Market Types & Customer Personas:
Tourism is considered a niche market notably because in many societies it is viewed as a leisure commodity. Only a few tourists have time to spare during their tours. Most of the tourists are business and working people whose free time is limited. They cannot plan for their tour since this will eat time, which would otherwise be used in productive work (see persona profile 1).
The tourist is rational and knows that he or she may spend more man hours planning a tour while there are tour companies that would simply charge her a fraction of what she would normally earn during the same period. This is why a majority of the tourist enlist the services of tour guides (Bygrave, 2009).
The person profile of one client are notably busy or working, able to use apps, accompanied in tours mostly by family or significant others, decent income, open-minded aged from 16-75years.
However, we segmented the customers in three categories, parents or guardians who want family holidays, couple who require intimate holiday, young adults travelling in pairs or as a group.
Further, tourists prefer to deviate from their normal schedules and actions notably waking up early, driving to work among others. Tourist would therefore be very sceptical about them driving (Persona 1).
The customers’ expectations pose a potential market-product conflict. This is because; the company only offers an app. This means that the app is neither a substitute nor a competitor, but rather a probable support. For the customers who are willing to carpool on tour expeditions, the app can be a healthy competitor. In this case, it can be marketed alongside tour planning guide and tools and can be used by tour companies to effectively layer their product. This is the most feasible feature as it will not necessitate further intervention of the company in suggesting travels guides, routes and other tour requirements (Chan Kim, 2005). Appendix 5 & 6
According to Kim and Mauborgne (2009), product-market fit strategy is an important aspect of commercializing an idea. They argue that, using the blue ocean strategy, one can generate what would otherwise dominate the market or one that is eking its reputation of being indispensable. After thorough examination of tourists trends notably significant number of tourists prefer to be chauffeured, hate planning, are thrill chasers, have unique tastes and preference and have a problem agreeing with themselves (see value proposition test 2). This reimages our earlier stance that the app can actually replace tour companies. It is hard to pair people with similar like for like attitudes or desires towards some things. Though I may want to visit the Grampians National park, it does not mean that I am interested in the sandstone mountain ranges. So, linking people with similar interests and intentions could be a hollow concept that may not be programmable.
What we learnt was that only people with similar intentions to visit certain sites for example the Grampians among others.
Competitor Strategy:
The main competition is faced from the already established online players that are there in the open web. The difference is evident in the value that we are bringing to the market, but still the offering remains the same that is providing the travelling assistance and designing the tours.
Having identified competition, as indicated earlier, tour companies have an advantage because they offer transport and other bundled services notably accommodation, meals and guide to the notable attractions in any given tour. We therefore chose to supplement their services using our app. In that, customers will choose their preferred destinations, they will be paired up and through partnership with the tour company; a tour is scheduled and fulfilled by the tour company (Hopkins, 2012).
Blue Ocean Strategy Framework:
Step 1: Develop the problem and its approach.
In this step we did the internet based and customer meeting engagement and came up with a business proposition for a Mobility App to satisfy the travel needs of tourists. Currently there are online portals to solve the travel needs, but they are not proactive, they don’t guide about the best options and also they are not able to do group management. From the competitor’s perspective the things are not met in the full sanity as sites like SOTC, MAKEMYTRIP, THOMASCOOK are only giving generic travel advises and not a detailed ones. However, they have huge penetration in the market, which needs to be looked into.
Innovation strategy:
The main aspect is to bring the business and technology together and for that SMEs from both the domains are considered. The current apps are catering to their set of customers, but the new proposed app will unleash a different potential altogether. The customer excitement will be for proactive travel app. We will be following dominating leadership strategy as we have first mover advantage.
Framework of Innovative Strategy for Self and Competitor – Appendix 14
The strategy is a mix of Differentiation and low cost leadership, as currently all the tourism services are expensive and we have a difference in the offering and that will be provided at a competitive rates. (Appendix 15)
Step 3:
• Path 1: Look Across Alternative Industries:
– Media and Entertainment
• Path 2: Look Across Strategic Groups
– NA
• Path 3: Look Across the Chain of Buyers and Users (think Novo Nordisk insulin producer)
– NA
• Path 4: Look Across Complementary Product and Service Offerings, remove hassles)
– Mostly the entertainment and Sport Industry.
– But their proposition and offerings are different
• Path 5: Look Across the Functional and Emotional Appeal for Buyers (Think Viagra)
– Need time for self and peaceful outing
• Path 6: Look Across Time – What trends will impact the value for people (think IPod + ITune)
- Education, Sports, Adventure and Business
Step 4:
The Business Canvas – Appendix 1 and 2
The competitors in the above landscape lacks in two major offerings which are proactive, Niche and better group management. But the existing solution are better with their cash flows and they have more or less achieved their break even. However, the solution proposed will generate breakeven soon.
Technical Feasibility & Low – Fi Prototype:
The main aspect that is to be checked in the changes that are to be imbibed in the beta version and that will be gauged based on the real public review. For that a thorough set of people in the real environment are identified and based on that a questionnaire is prepared. The reactions to the questionnaire is the input for the changes that are required to be put in the existing system.
This step didn’t just give the input for technical capabilities, but also business critical inputs like incubation of business consulting folks in the system so that a better business critical decisions may be taken and analyzed in a greater depth (Kim, 2004). Appendix 11
The initial low-fi design (see labelled appendix low-fi prototype) was tested under a 20 customer review Napkin sketch-map. The questionnaire used was devised to identify usability. They suggested several changes to the prototype. The main was towards making the system more proactive and also such that it is able to do better account and group management. The same is also mentioned as the highlighted changes in the Business Canvas (Robinson, 2013).
Key Partners:
The main partnership is needed with the following teams and this will be their jobs and responsibilities:
Attached in Appendix 13.
Financials:
See Appendix for the financial analysis – including the cost strategy and break even analysis. The Break Even is expected to be achieved in 19 months. Appendix 8 & 9.
Conclusion:
The business model is set through a series of tasks on how best to capture value through service to the client. According to Tuff and Wunker (2014), there are many ways of modelling the business function of an innovation or start-ups. For applications offering information services, they propose ad supported and subscription-based models. In this idea, the chosen model is both ad-supported free accounts and subscription-based non-AD-based accounts. Using the Blank and Dorf, (2013), The Startup Owner’s Manual, other improved models can be achieved later including partnerships with tour companies and a licensing option (Tuff, 2014). Appendix 11.
The key points that are well noted and will be included are:
- Making the application very proactive so that engagement can increase.
- Making the group management easy and engaging.
- Produce cost effective outcomes.
- Ensure that people get recurring business and peer to peer engagement is high.
Appendix:
Appendix 1:
Key Partners
• Web Developers
• Application Designers
• Testing Team
• Landscape Team
• Release Team Key Activities
• Development of App Prototype
• Development of Beta Version of the App
• Development of Full Fledged Version of App
• Go – Live Value Proposition
• Ease of Setting up the tours by people
• Bridging of gap between expectation and reality of tours
• Bringing the service providers closer to customer
• A platform to club likeminded people together
• Saving money and time to come up with a defined structure of the tour Customer Relationships
• Live Support post go live
• Feedback System
• Live Customer chat system Customer Segments
• Tourists looking for a niche adventure but unable to find the correct set of people
• Tourists who are unable to find better locations for their travel needs
• Tourists seeking to group with likeminded people
Key Resources
• Developers
• Coders
• Testers
• Customers
• Management for Funding Channels
• Application Download from App Store
Cost Structure
• Development Cost
• System Cost
• Infrastructure and Architecture Cost
• Support Service Cost
• Operating Cost
• Testing Cost
• Miscellaneous Cost Revenue Streams
• Subscription Fees
• Tie ups with Tourism Service Provider
• Advertisements
• Corporate logins
Appendix 2:
Key Partners
• Web Developers
• Application Designers
• Testing Team
• Landscape Team
• Release Team
• Quality Team
• Business Insights Key Activities
• Development of App Prototype
• Development of Beta Version of the App
• Development of Full Fledged Version of App
• Go – Live
• Quality Enhancement System
• Business Value Proposition Value Proposition
• Ease of Setting up the tours by people
• Bridging of gap between expectation and reality of tours
• Bringing the service providers closer to customer
• A platform to club likeminded people together
• Saving money and time to come up with a defined structure of the tour
• Giving the touring options at the most cost effective offer Customer Relationships
• Live Support post go live
• Feedback System
• Live Customer chat system
• Guide Manager Concept
• Various Levels of Accounts Customer Segments
• Tourists looking for a niche adventure but unable to find the correct set of people
• Tourists who are unable to find better locations for their travel needs
• Tourists seeking to group with likeminded people
• Getting all the people who likes to travel under this common roof.
Key Resources
• Developers
• Coders
• Testers
• Customers
• Management for Funding
• Landscape & Release team
• Project Management Channels
• Application Download from App Store
Cost Structure
• Development Cost
• System Cost
• Infrastructure and Architecture Cost
• Support Service Cost
• Operating Cost
• Testing Cost
• Miscellaneous Cost Revenue Streams
• Subscription Fees
• Tie ups with Tourism Service Provider
• Advertisements
• Corporate logins
Appendix 3:
Outsider View What is your expectations from a Touring App How frequently do you use a travelling app For what information you usually go to online portals How will you rate this application What suggestions would you give What is the probable cost for the app as per you Would you buy it understanding the value proposition Your Final Score on 1 to 5
Name: David
Age: 24
Live: Avid Traveler
Income: Below 25000 USD Proactive
Suggestive
Budget Planning One’s a while Budget 3 More Proactive 5 Dollar per month Yes 3
Name: Linda
Age: 48
Live: Seasonal Traveler
Income: Above 100000 USD Luxury
Proper Grouping
Out of Box Suggestions Never Options 3 More Supportive 15 Dollars Per Month No 3
Name: Deepak
Age: 35
Live: Wanderer Traveler
Income: Above 100000 USD Adventure Suggestions
Proper Mapping
Suggestive Usually Interest Group 3 Give More Options 25 Dollars Per Month Yes 3
Name: Stalin
Age: 60
Live: Fun Traveler
Income: 50000 USD Safe Options
Good Tour Samples
Visitors Reviews What to use more Options 3.5 Group Management Free Yes 3.5
Name: Jenny
Age: 20
Live: Adventure Traveler
Income: Below 25000 USD Interactive
Loads of Options
Account Management What to use more Interest Group 4 More Proactive 10 Dollars Per Month Yes 4
Name: Nazarene
Age: 30
Live: Non Avid Traveler
Income: 50K<>75K Proactive Options
Mapping based on interests
Mapping with Social Media What to use more Interest Group 4 Group Management 5 Dollar per month Yes 4
Name: Eric
Age: 55
Live: Zealous Traveler
Income: Above 200000 USD Just Proper Tour Management and Supportive Usually Interest Group 2 More Proactive 10 Dollars Per Month Yes 2
Name: Marshal
Age: 16
Live: Budget Traveler
Income: Below 25000 USD Loads of options
Supportive
Analytical Occasionally Interest Group 2.5 More Supportive Free No 2.5
Name: Coen
Age: 45
Live: Luxury Traveler
Income: Above 300000 USD More upcoming Options
Niche Holiday destinations Never Niche Options 3 More Supportive 10 Dollars Per Month No 3
Name: Shashank
Age: 24
Live: Avid Traveler
Income: 60000 USD Proactive Options
Mapping based on interests
Mapping with Social Media Never Interest Group 3 Group Management Free No 3
Name: Noor
Age: 40
Live: Avid Traveler
Income: Above 100000 USD Loads of options
Supportive
Analytical What to use more Interest Group 3 Group Management 10 Dollars Per Month Yes 3
Name: Lillette
Age: 232
Live: No regular Traveler
Income: 50000 USD Upbeat and Analytical What to use more Budget 3 More Supportive 10 Dollars Per Month Yes 3
Name: Mark
Age: 39
Live: Seasoned Traveler
Income: Above 150000 USD Seasonal Recommendations
Mapping with interest groups What to use more Interest Group 4 Group Management 10 Dollars Per Month Yes 4
Name: Surjon
Age: 49
Live: Bag packer
Income: Below 50000 USD On the spot options
Proper peer group management What to use more Niche Options 4.5 Group Management 5 Dollar per month Yes 4.5
Name: Dujon
Age: 59
Live: Adventure Traveler
Income: Above 200000 USD Systematic
Interest Groups
Proactive Usually Niche Options 5 More Supportive Free Yes 5
Name: Salma
Age: 20
Live: Budget Traveler
Income: Below 25000 USD Cost Effective and better offers
Tour Mergers Occasionally Budget 3 Group Management 5 Dollar per month Yes 3
Name: Timothy
Age: 30
Live: Bag packer
Income: Around 50000 USD Proactive
Suggestive
Budget Planning What to use more Budget 3 More Supportive Free Yes 3
Name: Laila
Age: 70
Live: Interest based travelling
Income: 75000 USD Safe and New Options
Proper citing details
Peer Group Management What to use more Interest Group 3 Group Management 10 Dollars Per Month Yes 3
Name: Zain
Age: 50
Live: Luxury Traveler
Income: Above 300000 USD Upbeat and Analytical Never Interest Group 2 Group Management 10 Dollars Per Month Yes 2
Name: Nishant
Age: 24
Live: Avid Traveler
Income: Below 25000 USD Proactive Options
Mapping based on interests
Mapping with Social Media What to use more Budget 3.5 Group Management 10 Dollars Per Month Yes 3.5
Name: Lilly
Age: 30
Live: Business Traveler
Income: Above 150000 USD Proactive Options
Mapping based on interests
Mapping with Social Media What to use more Nothing 3 Group Management 10 Dollars Per Month Yes 3
Appendix 4:
Test Card
Test Design Card
Test Name (evaluative):
Problem – Fit Solution Deadline:
TBD
Assigned to:
Business And Market Strategists Duration
1 week
Step 1 Hypothesis
We believe that: There is a huge demand for better tour management in the market and people will like to collaborate with people of similar interest groups, which they are not getting right now. So this App will serve as a one stop shop for all the touring related needs of the travelers.
Criticality: 3 – Since entire business proposition depends on this.
Critical: 1, 2, 3, (1=least, 3 most critical)
Step 2 Test
To verify that we will (describe the test plan): We went ahead to do some market analysis by secondary research and came up with a solution that will serve the needs.
Criticality: 2 – Since it is just a secondary research analysis
Test Cost: 1, 2, 3, Data reliability 1, 2, 3 (1=least, 3 most)
Step 3 Metric
And measure: (what is the metric, what are you measuring?) – Customer Perception
- Customer Satisfaction Index on current offerings
- Is Interest Group a main point in Traveler’s mind
Time Required: 1 Week, so that analysis can have some level of depth
Time required:
Step 4 Criteria
We are right if?
(pass/fail) – There is a considerable set of people (which there are) who wants to make a detailed decision about their travelling needs.
Test Cost: 1 – Low as it is just an internet based research.
Data Reliability: 2 – Considerable level of authenticity can be expected
Test Cost: 1, 2, 3, Data reliability 1, 2, 3 (1=least, 3 most)
Appendix 5:
Learning Card
Test Name:
Problem – Fit Solution Deadline:
TBD
Assigned to:
Business And Market Strategists Duration
1 Week
Step 1 Hypothesis
We believed that: There is a huge demand for better tour management in the market and people will like to collaborate with people of similar interest groups, which they are not getting right now. So this App will serve as a one stop shop for all the touring related needs of the travelers.
Criticality: 3
Critical: 1, 2, 3, (1=least, 3 most critical)
Step 2 Hearing/Observation
We heard/observed that: We did observed that people are now taking their travelling needs seriously and whatever time they have with them, they wish to utilize it properly. So there is a definite audience for the application
Criticality: 2 – Since it is just based on internet based research
Test Cost: 1, 2, 3, Data reliability 1, 2, 3 (1=least, 3 most)
Step 3 Learnings and insights
From that we learned that We learned that it is worthwhile to come up with a prototype based on the learnings from the secondary research and further primary research will refine it even further.
Action Required: 3 – Since this is the base of the solution
Action required: 1, 2, 3 (1 least dramatic, 3 most)
Step 4 Decisions and actions (Next steps)
Therefore, we will: Start with the prilimary design of the application and then take it in the open market to analyze the changes further and gauge the response.
Test Cost: 10000 USD (based on calculations and few assumptions)
Data Reliability: 2 – Since currently Internet is the source of truth.
Test Cost: 1, 2, 3, Data reliability 1, 2, 3 (1=least, 3 most)
Appendix 6:
Test Card II
Test Design Card
Test Name (evaluative):
Changes Needed on primary Research (Low – Fi Prototype) Deadline:
TBD
Assigned to:
Business And Market Strategists Duration
2 weeks
Step 1 Hypothesis
We believe that: There is a huge demand for better tour management in the market and people will like to collaborate with people of similar interest groups, which they are not getting right now. So this App will serve as a one stop shop for all the touring related needs of the travelers.
Criticality: 3 – Since entire business proposition depends on this.
Critical: 1, 2, 3, (1=least, 3 most critical)
Step 2 Test
To verify that we will (describe the test plan): We went on the field and interviewed some 50+ people and then picked up 20 sample individuals and did the analysis based on that
Criticality: 3 – Since this is the on field real analysis
Test Cost: 1, 2, 3, Data reliability 1, 2, 3 (1=least, 3 most)
Step 3 Metric
And measure: (what is the metric, what are you measuring?) – Customer Perception and expectations from an App
- Customer Satisfaction Index on current offerings
- Customer current Go – To Spot for Travelling needs
- Is Interest Group a main point in Traveler’s mind
Time Required: 2 Week, so that there is enough variability in the data collected
Time required:
Step 4 Criteria
We are right if?
(pass/fail) – There is a considerable set of people (which there are) who wants to make a detailed decision about their travelling needs.
Test Cost: 3 – Since it is a primary research now.
Data Reliability: 3 – Considerable level of authenticity can be expected
Test Cost: 1, 2, 3, Data reliability 1, 2, 3 (1=least, 3 most)
Appendix 7:
Learning Card
Test Name:
Changes Needed on primary Research Deadline:
TBD
Assigned to:
Business And Market Strategists Duration
2 Week
Step 1 Hypothesis
We believed that: There is a huge demand for better tour management in the market and people will like to collaborate with people of similar interest groups, which they are not getting right now. So this App will serve as a one stop shop for all the touring related needs of the travelers.
Criticality: 3 – Since entire business proposition depends on this.
Critical: 1, 2, 3, (1=least, 3 most critical)
Step 2 Hearing/Observation
We heard/observed that: People shared some very specific changes and expectations from the applications and the average score scored by the app is 3.75
Criticality: 3 – This is from the real potential users
Test Cost: 1, 2, 3, Data reliability 1, 2, 3 (1=least, 3 most)
Step 3 Learnings and insights
From that we learned that There are certain changes around Proactive, Recommendations and Interest Group Management that is needed in the application and the same will be taken up now. Another this is the realization of some more resources and budget, as captured in the business canvas report
Action Required: 3 – Since this is the base of the solution
Action required: 1, 2, 3 (1 least dramatic, 3 most)
Step 4 Decisions and actions (Next steps)
Therefore, we will: Unleash the full potential of the application based on the results gained and then launch the application. We also realized the worth of some more teams and some new customer service initiatives
Test Cost: 100000 USD (based on calculations and few assumptions)
Data Reliability: 3 – Since this is what will go live.
Test Cost: 1, 2, 3, Data reliability 1, 2, 3 (1=least, 3 most)
Appendix 8:
Expenses 20XX
Development and Implementation – CAPITAL EXPENDITURES – Amortization by Year
Internal Fully Loaded Salaries – IT Resources 500.00
Internal Fully Loaded Salaries – Business Backfill 500.00
Internal Fully Loaded Salaries – Business Part Time 300.00
External Contractors / Vendor Costs 250.00
Rentals, Leases 0.00
Software & Software Licenses 0.00
Travel and Lodging 70.00
Training 180.00
Development and Implementation – EXPENSES INCURRED by Year
Internal Fully Loaded Salaries – IT Resources 500
Internal Fully Loaded Salaries – Business Backfill 500
Internal Fully Loaded Salaries – Business Part Time 300
External Contractors / Vendor Costs 250
Rentals, Leases 0
Software & Software Licenses 0
Travel and Lodging 70
Training 180
Hardware / Infrastructure Support – CAPITAL EXPENDITURES – Amortization by Year
Distributed Desktop 50
Data Center (e.g. Mainframe) 110
Data Network 120
Voice Network 120
Print 50
Infrastructure Deployment 100
Other Expenditures 100
Hardware / Infrastructure Support – EXPENSES INCURRED by Year
Distributed Desktop 50
Data Center (e.g. Mainframe) 110
Data Network 120
Voice Network 120
Print 50
Infrastructure Deployment 100
Other Expenditures 100
Total CAPITAL EXPENDITURES – Amortization 2405
Total EXPENSES INCURRED Development 2405
Total Development 4810
Maintenance (Recurring):
Application Maintenance 100
Software Maintenance Contract Fees 100
Infrastructure Support 100
Leases/Rentals 100
Additional Internal Staff – Full Loaded Salaries 400
Additional External Contractors / Vendor Costs 500
Other Recurring 50
Total Maintenance 1350
Capital Expenditure Position (P&L Position) 52,60
Staff Size Needed Year 1
Staff Size by Year (for deployment / implementation and maintenance of this project):
Employees 24
External Consultants 18
Outside Vendors 8
Total Full Time Equivalents (FTEs) 50
Appendix 9:
Pro-Forma P& L
Year 1 Year 2 Year 3 Year 4 Year 5
Sales $10000 $11000 $12100 $13310 $14640
Direct Cost of Sales $350 $385 $423 $465 $512
Subscription Royalty (7%) $70 $77 $84 $93 $102
Total Cost of Sales $420 $462 $508 $559 $614
Gross Margin $579 $637 $701 $771 $849
Gross Margin % 57.99% 57.99% 57.99% 57.99% 57.99%
Expenses
Payroll $60 $63 $67 $71 $75
Sales and Marketing and Other Expenses $69 $75 $82 $89 $97
Depreciation $2 $2 $2 $2 $2
Depreciation $30 $31 $33 $34 $36
Depreciation $36 $39 $43 $47 $52
Cell Phone Service $42 $46 $50 $55 $61
Legal $24 $24 $24 $24 $24
Payroll Taxes $12 $13 $14 $15 $15
Total Operating Expenses $1896 $2030 $2172 $2322 $2483
Profit Before Interest and Taxes $3903 $4340 $4840 $5396 $6000
EBITDA* $3926 $4372 $4860 $5419 $6031
Interest Expense $18 $15 $13 $11 $8
Taxes Incurred $1741 $2003 $2226 $2554 $2826
Net Profit $1980 $2187 $2485 $2732 $3095
Net Profit/Sales 19.80% 19.89% 20.54% 20.53% 21.14%
CASH FLOW CALCULATIONS
Cash Flow= Cash from Operating Activities+ Cash from Financing activites+ Cash From Investing Activities
Now:
Cash flow from Operating Activities= EBIT+ Depreciation
Cash from Financing Activities= 0 (assuming no financing activity)
Cash from Investing Activities= 0 (Assuming no investment)
CASH FLOW STATEMENT
Year 1 Year 2 Year 3 Year 4 Year 5
EBIT $3903 $4349 $4845 $5396 $6008
CASH FLOW $1500 $1500 $1500 $1500 $1500
Item Amount
Fixed costs $1500
Variable costs $0.2 per download
Price $0.99
Projected monthly sales $0.99X10, 00=$9,90
Total monthly variable costs $200
Margin $990-$2,00=$7,90
Months required to break even $15000/$7,90=19months
Appendix 10:
Persona of a Customer:
Persona Business Consultant – Top Consulting Company Globally
Fictional name Deepak
Demographics • 35 years
• Married
• Wife Works in an IT Company, One Girl Child
• MBA from Harvard
• Parents Stay Together in Bay Area
• A very avid and luxury seeking traveller
Goals and tasks • To be a successful consulting professional
• Open up a start up in educational sector soon
• Very keen for heath and hobbies
Preference for fun • Golf on weekends usually
• Likes to travel with his wife on adventure trips
Work environment • Hectic and includes 20+ days of travel monthly
• A very avid app user and uses apps for almost everything
• Keen for adventure traveling, but finds a little difficult to arrange quality outings.
Bad moments about touring • Don’t get enough traction and information about upcoming adventure touring around.
• Always looks for some good group with whom he can plan up tours.
Appendix 11:
Appendix 12:
KOLB Reflection:
A per the personal analysis of KOLB theory, there a few intruding points regarding the self-realization that are experienced. The following is the analysis:
Selecting v/s Describing:
I categorize myself in Describing because I am a detailed oriented person and never make any decision just on the basis of some superficial data. In this case I see the need for digging deep in to the topic and hence did each analysis at a great degree of depth. I hear all the comments properly and try to imbibe them all. I always see the issue in a greater depth and then take a call. Ex. In my studies I always go a head of recommended text books and in my hobbies I always read thoroughly about them and then practice them.
Reflecting V/s Inferring:
I am always an inferring kind of a person, who infer the knowledge based on core facts. Like in this example I can derive some thorough analysis about customer’s expectations. The meaning that is derived from this is that greater depth in understanding is needed. My intruding and strong mindset helped me to achieve this accomplishment.
Theorist v/s Generalist:
I am more of a theorists, who believe that one need to be thorough in one topic strongly. My experience is towards customer understanding and the theory of business startup says the same. Even if would have not followed this theory it would have led to a bigger loss, as I would have made a product not fit for market.
Panning:
- Be proactive
- Be very good in sourcing and resourcing
- Be good in customer analysis
Appendix 13:
Key partners
LEVEL 1 Responsibilities LEVEL 2 Responsibilities LEVEL 3 Responsibilities LEVEL 4 Responsibilities
Technical Team This will manage the Technical aspect of the implementation and will understand the business requirements from the Business & Functional Group Technical Manager for System Coding This person will take care of the System coding team and will interact with Business people to understand the needs and communicate it to the team Technical Consultant This role will be the consulting assignment for the technical project and will help in making recommendations for system optimization Technical Coding Team They will be doing the actual coding on the system and do the system programing
Technical Manager for Sensor Coding This person will take care of the Sensor coding team and will interact with Business people to understand the needs and communicate it to the team Sensor Technology Consultant This role will be the consulting assignment for the technical project and will help in making recommendations for system optimization Sensor Coding Team They will be doing the actual coding on the system and do the system programing
Basis Team This team will provide the skeleton of the system, on which programing and configuration will be done Basis Team for System Design They will provide the system skeleton for the IT System
Basis Team for Integrating Sensor programing in the system They will provide the system skeleton for the Sensor point of view
Landscape Team Design the system evolution and ensure that all the systems are available when needed Landscape Manager They will take care of the Landscape document and ensure that it is working as per the requirement PMP Manager He will do activities in MS Projects Landscape Team
Project Management Team They will manage the entire project and ensure that all the timelines are met Project Manager PM will ensure the project timelines and also ensure that Business Signoff is taken PMP Manager He will do activities in MS Projects Project Team
Stakeholder Management Team Ensure that all stakeholders are at same pace and everyone has a common update Stake Holder Manager
Business & Functional Consulting Team This team will interact with the Business and find the requirements and hence communicate to the concerned team Business Consulting Manager Taking care of consulting related needs and requirements Business SMEs Subject Matter Experts Business Consulting Team
Functional Consulting Manager They will lead the team for understanding and preparing function documentation Functional SMEs Subject Matter Experts Functional Consulting Team
Appendix 14:
Frame Work Strategic Dimensions Objective
Mobility app
One Stop travelling Solution
Groups Management
Proactive
Better Customer offers and management To propose a smart and highly capable mobility app in the market
Competitors Frameworks looks pretty different (to be followed), but the positive aspect is that we are going ahead with a niche capability.
Frame Work Strategic Dimensions Objective
Website
Usual Travelling Advises
No Groups Management
Not Proactive
Just counting on the fact that they are the lone players To get hold of maximum customers and don’t work on making a collaboration between the two.
Appendix 15
Dominant logic Contra logic: change element 180 degrees….
Key physical activities 1. Mobile App Development
- Developing a strong sales team The product is a novice one and is going to pioneer the market thoroughly for sure.
Key Marketing related activities 3. Strong go to market - Peer to peer marketing
Key financial processes 5. Financial finding in place
Competitors Dominant logic Contra logic: change element 180 degrees….
Key physical activities 1. Online presence - Developing a strong sales team This is generic offering which any business can follow and provide
Key Marketing related activities 3. No niche offering and no personalization - Peer to peer marketing
Key financial processes 5. They have regular cash flows
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