MGB226 Assessment 3 PDF

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Final assessment piece of MGB226. Got a 5 with my assignment....

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AMB200 Innovation, Knowledge and Creativity Assessment 3: Innovation Action Plan Tutor name: Ken Huxley Word count: 2015 words

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Table of Contents 1.

The innovation...........................................................................................................3

2.

The context & feasibility.............................................................................................4

3.

The organizational requirements for driving and implementing innovation................5

4.

Recommendations for action plan..............................................................................6

5.

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4.1

Action steps & objectives.................................................................................................6

4.2

Team requirements..........................................................................................................6

4.3

Necessary resources........................................................................................................6

4.4

Potential challenges.........................................................................................................6

4.5

Collaboration plan for implementation............................................................................6

4.6

Outcomes........................................................................................................................6

References..................................................................................................................7

1.

The innovation 1.1

The problem

Every year, there are numerous events that attract the attention of millions or even billions around the world such as FIFA World Cup, NFL Super Bowl and the Olympics (2020 NFL Draft”, 2020; FIFA.com, 2018; Sponsorship intelligence, 2012). Due to different reasons, most of the audiences choose to watch TV or listen to the radio while only few choose to attend physically instead. Although following the event from home offers certain values for viewers, it also limits the experience considerably. For example, in a tennis game, the cameras are often placed too high and too far from the court to fully demonstrate what is happening there.

1.2

The innovation

The innovation, which resembles a drone, will hover in the empty area above the stadium and record visual and audio data from different spots around the stadium. The data collected will then be transmitted immediately to a VR headset. Thus, the audience will be able to “walk” around the stadium, feel the atmosphere at the stadium and watch the game from different angles. Overall, the experience this innovation can offer is comparable to that from attending in person.

1.3

Target market

Individual hosts, who are likely to want to relive the experience from a memorial event such as a wedding, will be targeted. However, the majority of the market are event hosts who want to sell the copyright to other organizations that wish to broadcast the events. 2.

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2.

The context & feasibility 2.1

Political factors

Nowadays, it is harder to hire foreign labor due to recent policy changes to foreign skilled labor. According to the 2019 Global Competitiveness Report, Australia ranked 138 th regarding “ease of hiring foreign labor” (Schwab, 2019). As a result, the supply for employees will decrease and the salary for Australian employees will be increased. Thus, the cost for R&D, marketing and manufacturing the product will rise significantly, which will impede the development and implementation of the innovation. Assuming the manufacturing process will be outsourced to countries with high population like China or Vietnam to keep the cost down, the trade relationships with these countries are to be considered. Generally, Australia enjoys good relations with other nations (MarketLine, 2019). The free trade agreement between Australia and Vietnam is a part of the ASEAN-Australia-New Zealand free trade agreement, which was enforced on 1 January 2010 (Austrade, n.d.-a). Australia and China also have a free trade agreement which was enforced on 20 December 2015 (Austrade, n.d.b).

2.2

Economic factors

Australia has witnessed the depreciation of its currency in the past few years (Boyd, Poljak & Moore, 2019). Consequently, importing materials from other countries will be more costly,

which eventually raise the cost of the product (Marketline, 2020). As the Australian dollar is weakening, foreign customers will have to pay less to buy this product if it was to be exported. As a result, the revenue from exporting will be considerably reduced. However, on the bright side, the product being cheap to foreign customers will boost the demand which will ultimately accelerate the implementing process of the innovation.

The China-United States trade war has put Australia in an uncomfortable decision considering Australia’s economic relationship with both countries (Malik, 2006). Thus, manufacturing the product in China or importing material from China is likely to negatively affect the Australia-United States relationship in many aspects. For instance, the United States might impose a significant trade tariffs on this product.

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2.3

Social factors

As the data recorded by the innovation is transmitted to VR googles, VR google not being popular will limit the growth of the market. This is due to various reasons. The most common cause is that to customers, even though the experience with VR googles is positive for most of them, it is not worth investing 200-300 dollars (Lawrie, 2020; Roose, 2020). However, the market for this product is promising due to new consumer values. To be specific, more consumers are spending money on experience instead of ownership (Caroline Bremner, 2019). This new preference correlates with the innovation’s focus on enriching customer experience. According to (Caroline Bremner, 2019), the millennials are leading this change as 48% of them cited experiences as being more important than goods.

2.4

Technological factors

Overall, Australia’s innovation capability is not regarded positive. In 2018, Australia was granted 1,965 patents from the US Patent and Trademark office, which is much lower than the number its OECD peers receive (from 6,000 to 50,000 patents) (MarketLine, 2019). This performance can be explained by Australia’s spending on R&D, which was reported to be lower than the average of OECD countries (MarketLine, 2019). At the university level, Australia is producing a low number of science and engineering graduates. The limited capability to innovate is likely to hinder the development of this innovation within Australia. However, it should also be noted that in the resources and mining sector, the application of drones and sensors in collecting real time data is being tested and implemented continuously (Marketline, 2020).

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3.

The organizational requirements for driving and

implementing innovation This part is based on the hypothesis that my current firm is a small firm specializing in Virtual reality and Augmented reality and currently lacking necessary resources to carry out the product development process and commercialize the product.

The product is going to be developed and implemented through a strategic alliance with a big, reputable firm which concentrate on producing drones. By collaborating, the knowledge of drone-making and VR technology which are the two main components of the innovation, are combined. Our firm will not only gain access to our partner’s knowledge but also able to make use of their capital resources, distribution network, marketing capabilities and reputation (Teece, 1986). To be specific, the other firm’s financial resources will help with the product developing process. In addition, as the other firm is familiar with the drone market and already acquired a certain amount of market share, not much effort will be required to introduce the product to the market. Furthermore, the innovation product being sold by a reputable drone-making company will significantly accelerate the implementing process. Collaborating reduces the amount of capital resources and effort required for my firm, which means reducing the risks involved and enhancing my firm’s flexibility (Schilling, 2020). According to (Schilling, 2020), these factors are vital in the era where technology is changing quickly. Via this collaboration, my firm’s knowledge regarding the application of VR and AR technology will also be broadened.

4.

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4. Recommendations for action plan 4.1.

Action steps & objectives

What need to be done Form strategic alliance with a firm specializing in

Deadline 1 July 2020

drone-making Get a team of engineers, marketing people, 8 July 2020 salespeople and people with legal training Conduct market research Design the hardware for the product Develop the software for the product Get the legal requirements for the product Create a prototype Product testing & improve the product until ready

1 August 2020 1 August 2021 1 August 2021 1 August 2021 15 August 2021 15 October 2021

for market testing Market testing Review the result of market testing, finalize the

31 December 2021 14 January 2022

product Start marketing campaigns and officialy launch 31 January 2022 the product

4.2. People Engineer team

Team requirements Responsibility Create the hardware and the software for the drone Work with the marketing team to ensure it is not too costly to manufacture and the product meets the customers’ expectations Work with the legal team to ensure the product meets the safety standard and meet the government’s requirements Detect flaws, inconsistencies and rooms for improvement once the product is launched

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Marketing team

Conduct market research Develop plan for market testing Segment the market for this innovation and choose one segment to target Develop positioning statement and positioning map for the product Determine the appropriate price range and choose pricing strategy Make decisions related to the supply chain and channels for advertising and distributing

Sales team

Develop plan for market testing Look for sales opportunities and contact potential customers Develop plans for B2B and B2C sales Make sales

Legal team

Develop plans to retain existing customers Obtain the innovation patents Work with the authorities in the target market to obtain necessary product licenses Work with the engineering team to make sure the product meets the government’s regulations Write the terms & conditions for the

Manager team and I

contract of the strategic alliance Negotiate to form a strategic alliance with a drone-making firm Manage teams to make sure teams are collaborating effectively and meet the deadlines proposed

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4.3.

Necessary resources

To implement this innovation, various types of resources will be needed. First, capital resources will be necessary for the product developing phrase and the commercializing phrase. Second, raw materials will be needed to develop the prototype and mass manufacturing assuming that the technology for the product can be developed. Third, human capital will be mandatory as established above. Fourth, technology relating to Virtual reality, drone-making and collecting data in real time will be needed. Fifth, any relationship with governments or other organizations will be needed to facilitate B2B sales and accelerate the implementing process.

4.4.

Potential challenges

Potential risk/challenge Government regulations

Solution The legal team will work with the authorities and the engineer team at the same time to ensure all requirements are

Incapability to innovate within Australia

met. If the partner we choose is an Australian company, foreign experts will be invited to work in Australia. In addition, part of the product developing process can be

The uncertainty whether the market will

outsourced to engineers overseas. To make sure the innovation will be

accept the innovation and the rate of

accepted, market research will be

conducted to identity the needs and wants adoption The uncertainty whether the innovation will of the market. Major capital commitments be possible will be avoided. For example, we will just buy enough raw materials for developing a prototype for product testing. In addition, we will hire factories to manufacture our product until it is appropriate to set up our own factories. Furthermore, as mentioned above, we will form a strategic alliance with

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another firm to share the capital required and risks involved. Moreover, our firm’s money and effort will be devoted to other projects in case this innovation is not possible.

4.5.

Collaboration plan for implementation

Key individuals/organizations to be

Reason

informed/included with these actions Governments

The government should be informed and included in the product developing process to guide the product in the right direction. In addition, the government is a potential customer considering the military

Event hosts (potential customers)

application of this innovation. Potential customers should be informed in advance as they might not be familiar with this product, which might lead to slow adoption rate. In addition, involving potential customers in the NPD process is beneficial as it helps gaining insight about the customers’ needs and wants, their budget and also helps with design the user

Potential alliances

interface. Firms specializing in drone-making should be informed about the innovation as they might play a big role in developing the product. In addition, firms producing VR googles should also be involved as the popularity of VR googles is one of the main drivers for implementing this innovation. These firms can help with how to collect data so that these data can be transmitted

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immediately to their googles.

4.6.

Outcomes

Regarding the outcomes of this innovation, more people will be able to attend events around the world. By immersing themselves in the virtual world they will have a richer experience compared to watching TV or listening to the radio. New technologies will be developed so that the experience of customers will not be limit at seeing and hearing, but they will also be able to touch, smell like in the real world. The richer experience offered reduce the demand of travelling and will positively impact the environment. This innovation will accelerate the market’s adoption of VR googles. This innovation is also going to be the breakthrough in the augmented and virtual reality, leading further applications of this technology in daily life.

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5.

References

2020 NFL Draft sets all-time viewership records. (2020). Retrieved 1 June 2020, from https://www.nfl.com/news/2020-nfl-draft-sets-all-time-viewership-records0ap3000001111738

Australian Trade and Investment Commission. (n.d.-a). ASEAN–Australia–New Zealand Free Trade Agreement. Retrieved from https://www.austrade.gov.au/Australian/Export/Free-TradeAgreements/AANZFTA

Australian Trade and Investment Commission. (n.d.-b). China-Australia Free Trade Agreement (ChAFTA). Retrieved from https://www.austrade.gov.au/Australian/Export/Free-TradeAgreements/chafta

Boyd, T., Poljak, V., & Moore, T. (2019). Australian dollar touches its lowest level in 10 years. Financial Review. Retrieved from https://www.afr.com/markets/currencies/australian-dollar-tumblesbelow-us70-to-threeyear-low-20190103-h19nf

Caroline Bremner. (2019). Experience More: State of Play 2019. Euromonitor International Euromonitor Research. (2017). Megatrend: Experience More. Retrieved from https://blog.euromonitor.com/megatrend-experience-more/

FIFA.com. (2018). 2018 FIFA World Cup™ - News - More than half the world watched record-breaking 2018 World Cup. Retrieved from https://www.fifa.com/worldcup/news/more-than-half-theworld-watched-record-breaking-2018-world-cup

Lawrie, E. (2020). What went wrong with virtual reality?. BBC NEWS. Retrieved from https://www.bbc.com/news/business-50265414

Malik, M. (2006). The Australia-U.S.-China Triangular Relationship. Korean Journal Of Defense Analysis, 18(4), 151-170. doi: 10.1080/10163270609464123

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Marketline. (2019). Australia: Macroeconomic Outlook Report. Marketline. Retrieved from https://advantage-marketlinecom.ezp01.library.qut.edu.au/Analysis/TableOfContents/australia-macroeconomicoutlook-report-59595

Marketline. (2019). Country Analysis Report: Australia, In-depth PESTLE Insights. Marketline. Retrieved from https://advantage-marketlinecom.ezp01.library.qut.edu.au/Analysis/details/country-analysis-report-australia-indepth-pestle-insights-25973

Roose, K. (2020). This Should Be V.R.’s Moment. Why Is It Still So Niche?. The New York Times. Retrieved from https://www.nytimes.com/2020/04/30/technology/virtualreality.html

Schilling, M. (2020). Strategic management of technological innovation. New York, NY: McGraw-Hill Education.

Schwab, K. (2019). The Global Competitiveness Report 2019. Retrieved from http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf

Sponsorship intelligence. (2012). London 2012 Olympic Games: Global Broadcast Report. Retrieved from https://stillmed.olympic.org/Documents/IOC_Marketing/Broadcasting/London_2012_ Global_%20Broadcast_Report.pdf

Teece, D. (1986). Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15(6), 285-305. doi: 10.1016/0048-7333(86)90027-2

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