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OSU CIBER Case Competition

OSU CIBER Case Competition. Andrea Steinbrenner Jan Kraaijeveld Caitlin Parrett Ganesh Raj. Executive Summary . Situation:. Blah. Lack of revenues from filtration segment Filtration business segment in need of a successful product Global need for clean water . Goal:.

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OSU CIBER Case Competition

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  1. OSU CIBER Case Competition Andrea Steinbrenner Jan Kraaijeveld Caitlin Parrett Ganesh Raj

  2. Executive Summary Situation: • Blah • Lack of revenues from filtration segment • Filtration business segment in need of a successful product • Global need for clean water Goal: • Target the residential market to increase operating income • Use innovation to address global need of clean water Approach: Results: • Successfully launch RIMOS into market to generate NPV of $2.4 MM • Develop ClearAqua® product to meet demand for clean water and drive NPV of $10.1 MM Gain market share though US residential demand Generate funding for global expansion Implement new technologies in developing countries

  3. ART is at a critical juncture STRENGTHS Innovative culture Information Sharing Autonomous decision making CHALLENGES Credibility Low morale Slow product life cycle Strengths Challenges OPPORTUNITIES First mover advantage Partnership with internal units Increasing demand for clean water initiatives THREATS Lack of funding Business unit termination Potential competitors Opportunities Threats

  4. After two product failures, ART’s filtration segment is desperately in need of a successful product Product 2 Product 1 Target Market: Target Market: Individuals without potable water NGOs and Military Personnel Capacity: Capacity: 2,000 Liters/day 2,000 Liters/day Flaw: Flaw: Detectable odor in end product Excessive battery usage $6 MM Annual Loss Source: Case Document

  5. The filtration segment’s next product, RIMOS, has made it to the final stage of product development and is almost ready for beta testing RIMOS Development Lifecycle Product Development Product Testing RIMOS Key Attributes Target Market: US Residential Homeowners Capacity: 10,000 square feet Cost: $2,000 Retail Price $1,000 Wholesale Price Value Proposition: Reduces water usage while still giving lawns the care they deserve Source: Case Document Beta Batch Creation Market Analysis Problem Identification Prototype Business Plan Focus Group Analysis

  6. Initiatives Introduce RIMOS Introduce ClearAqua®

  7. In order to prove that the filtration unit can be profitable, ART should fast-track the RIMOS system • Reasons for Fast-Tracking • Rapid market growth • Reduced R&D costs from utilization of an existing technology • Strong managerial confidence

  8. The housing market is growing rapidly, indicating that there will be strong demand for the RIMOS system • Increase in home construction increases demand for RIMOS • Average household uses 320 gallons of water daily Source: US Census Department

  9. ART can offer consumers a strong value proposition and excellent distribution channels Value Proposition Distribution Channels Environmentally Friendly Integrated into new homes Cost Savings Lowe’s Home Depot Home Manufacturers

  10. ART can leverage its partnerships with distributors, as well as internal corporate synergies, to distribute RIMOS Source: Case Document

  11. By introducing RIMOS, the filtration unit can realize up to $2.4MM in profit Source: Case Document

  12. Initiatives Introduce RIMOS Introduce ClearAqua®

  13. Access to clean drinking water is a global problem Global Water Access Need: 1.1 Billion do not have access to clean water Availability: Low, especially in 3rd world countries Spending: Increasing, driven by NGOs Source: UN Millennium Development Goals Update

  14. ClearAqua® can have a positive impact on ART both internally and externally • “We aim to change the world through innovation and to grow our place in it through entrepreneurship.” • Positive impact on people, development, organizations and society • Integrative effect on inter-team communication within ART • Diversifying effect on ART’s product portfolio ClearAqua® has a…

  15. ART can introduce a new mini oxidation water filter called ClearAqua® to increase water availability and drive growth Key Success Factors Size Cost Availability Product Development Product Development Product Testing Market Analysis Beta Batch Creation Prototype Problem Identification Business Plan Focus Group Analysis

  16. Introducing ClearAqua® matches well with ART’s corporate goals ClearAqua® Promotes… Company Goals Social Responsibility “We aim to change the world through innovation” Innovation “Innovation and entrepreneurship are the twin engines driving this company” Employee Satisfaction “We were so excited by that decision[to continue the project]”

  17. ClearAqua® can also be a growth driver for the filtration unit Sensitivity Analysis Net Present Value ($Millions) Percent of MDG for Water Funds Source: World Bank, MDG Assessment

  18. Executive Summary Situation: • Blah • Lack of revenues from Filtration segment • Filtration business segment in need of a successful product • Global need for clean water Goal: • Target the residential market to increase operating income • Use innovation to address global need of clean water Approach: Results: • Successfully launch RIMOS into market to generate NPV of $2.4 MM • Develop ClearAqua® product to meet demand for clean water and drive NPV of $10.1MM Gain market share though US residential demand Generate funding for global expansion Implement new technologies in developing countries

  19. Questions?

  20. Our Team JanKraaijeveld Caitlin Parrett • Michigan State University ’11 • Marketing • Can iron a mean shirt • Erasmus University • International Business Administration • Likes long walks on the beach and man purses Ganesh Raj Andrea Steinbrenner • University of North Carolina ’12 • Economics, minor in Mathematical Decision Sciences • Likes Diet Coke and not telling jokes • San Diego State University ’11 • Accounting • Mega bytes are bigger than kilo bytes!

  21. Appendix 1: Corporate value chain Firm infrastructure: Autonomous decision making; holistic sharing of ideas, expertise, and knowledge Human resource management: Taking advantage of global talent by setting up departments abroad, according to the congregation of skilled employees Technology development: Developing new solutions by investigating and refining the latest trends such as ultrasound wave technology Procurement: Utilizing corporate resources and ART’s image to secure stable and reliable suppliers in order to meet production needs Marketing & Sales: Catering to the needs of the residential market by focsuing on cost leadership and sustainability Inbound logistics: Securing contracts with suppliers to ensure timely delivery of raw materials Operations: Enforce deadlines and keep a strong focus on quality control and economies of scale Outbound logistics: Ensuring timely delivery of products and information to clients by focusing on robust logistics Service: Providing excellent pre- and after sale support by having qualified engineers available to customers

  22. Appendix 2: U.S. Water Industry Revenue Source: Case Document

  23. Appendix 3: Daily Water Use in the Average US Household

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