The business idea under consideration proposes to develop a smart lock for houses and offices that can be unlocked from the mobile phone of the user. The business idea will go a long way in solving the anxiety that people face with respect to the security and safety of their houses and offices.
The nine building blocks of the business model recognise the customer segment as the people who remain busy in lot of things, the developers, investors and distributors are going to be the key partners of the business. The revenue will be generated from the sales of the product. The value proposition of the business idea is the affordability and high security factor of the product.
The critical success factors associated with the product development are Continuous improvement, Supply Chain Management and an Effective Customer Service. The assumptions are that the product is very desirable and the skills needed to develop it are readily available. However, there is some risk from the point of view of technology breakdown and market competition. The business idea looks very feasible operationally, legally, technologically as well as industrially.
Today’s generation has become a little too dependent on the technology to solve their daily life issues and challenges (Kim, 2019). The mobile trend has become so popular that people want to do everything from their phones with the help of an app.
This report studies a business idea of developing a smart lock for homes and offices that can be unlocked from the mobile phone of the user by way of an app. The report studies the market problem that this business idea is going to solve followed by the argument in favour of development of the product. The report then studies the 9 building blocks of the proposed business model of the concept. Thereafter the report takes a gander at the success factors that are critical to the development of the business idea and for ensuring its long term success. The report then analyses the risks and assumptions associated with the business idea. Lastly the study of feasibility of the business idea has been discussed followed by a conclusion that has got a few recommendations too.
People are becoming more and more reliant on their phones. They want to control everything from their fingertips. Anything and everything that can be replaced by an app is looked forward to (Watanabe et al., 2019). With the advent of AI and ML people can now control their electrical appliances as well as their car locks and much more from the time. It is but time when they want to sync in the locks of their offices and houses to their phone and use the app to operate it rather than fishing for the keys every time they have to open or lock their houses or offices.
The business idea will solve the problem of managing bunches of keys with respect to houses and officesWith the product involved in the business idea user can be doubly sure of the safety of their belonging at the house and office. The smart lock will be operable only from the mobile phone of the user (Scalisi, 2019). The lock will work on the smart engineering technology that will unlock only when it receives the required command from the app that is functioning only on the registered device (de Camargo Silva et al., 2019). The lock will operate with signal sensing system, wherein it will raise alarm on the registered device as well as around the property if anyone tries to break the program code or tries to break in physically in to the property.
The nine blocks of the business model is the plan that describes how the business intends to make money (Yao et al., 2019). In order to this, it discusses 9 critical factors that describe the strategic framework and the lean start up template. The proposed business model for the business idea at hand is as follows-
1. Key Partner: The product suppliers, distributors, and investors will be the key partners of the business.
2. Key Activities: The key activities of the business will be product manufacturing, product marketing and distribution.
3. Value Proposition: The smart lock will be very affordable and easy to set up. The lock will be resistant to the weather extremities.
4. Customer Relations: Social media network and email channels will be exploited to collect the customer feedback and to provide the requisite customer support.
5. Customer Segments: People who are associated with busy routines or lifestyle will be the targeted customers as they will be able to manage the security of their house and office from their fingertips.
6. Key Resources: The required raw material to build the lock, financial resources, technically sound workers, and manufacturing units will be the key resources of the business.
7. Channels: the products will be distributed through the company’s website and via offline stores.
8. Cost Structure: Fixed costs include staff and rent of manufacturing and warehousing units, property and business taxes. Variable costs include the costs of raw materials, distribution costs, and the marketing costs.
9. Revenue Stream: Revenue will be collected from the sales proceeds of the product.
The key interrelationships play an important role in the overall success and longevity of a business idea. The key interrelationships between the several teams and wings in this business idea begin with the survey and analysis by product team on the target customer segment for the given idea. The data so collected is going to be analysed for the business bits of knowledge. Thereafter the technical team of the business idea is going to develop the proposed product in collaboration with product team as per the market requirement. Once a demo product is ready the marketing and product team will look for the investment. Since the idea is very unique and highly desirable, funding will be received easily. After the availability of the required funds. The mass production of the product will begin along with hiring of the requisite staff for developing, marketing and selling the same. The marketing team will conduct campaigns on online and offline channels to build the sales pipeline. The sales team will work on different leads and try to convert them into sales. The sales collected from the selling of the product will be the main source of revenue. The customer support and feedback will be managed via emails and social media network.
Critical success factors refer to the elements that are necessary for an organisation in order to achieve its mission (Gerhardt & Robertson, 2019). The critical success factors necessary for this business idea are-
The lock will work on smart technology which needs to be upgraded as per the user needs and changing security related scenarios. Therefore, the product team continuously need to upgrade the technology of the lock (Avganim, 2019).
There needs to be a strategic supply chain management to ensure correct manufacturing, storage, sales and services of the product involved in the business idea (Anderson et al., 2019).
The company needs to lay emphasis on satisfying the customers and enriching their overall experience by upgrading the device as per the feedback and reviews (Boettcher et al., 2020).
Evaluation of critical risks and assumptions are a very important part of developing a business idea as it gives the company an idea about the external and internal factors that might affect its business operations (Funes, 2019).
Risks are the imminent threats that a business confronts while managing and developing its operations. The risks associated with this business idea are-
There is an imminent threat from the competitors in the market.
Intermittent errors of the product due to server outage may cause a great threat to the potential business idea. However, due to the advancement of technology this can be overcome (Robinson et al., 2019).
The product is in high demand and very desirable.
The key talent to develop the proposed product is readily available.
Market feasibility: Since a lot of people suffer from the anxiety of leaving their houses or offices unattended the demand for the smart lock is set to rise (Rai et al., 2019).
Product feasibility: With the available resources, a smart lock can be easily developed
Economic feasibility: the product idea is unique and is very affordable
Operational feasibility: the product is in high demand and the human resources required to develop and distribute it are readily available (Sikder et al., 2019).
Legal/ ethical feasibility: Key legal frameworks required to be followed by the company do not impose any threat on the business operations.
The overall development of the business idea seems to be a very lucrative realm to dive in. The idea proposed is set to generate great revenue as the product is very desirable due to the market problem that is solving. Here are a few recommendations that will ensure the long term success of the proposed business idea-
The company should keep on upgrading its features with time.
The company should lay important emphasis on mitigating the risks.
The company should ensure a proper management of the critical success factors.
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2. Yao, Y., Basdeo, J. R., Kaushik, S., & Wang, Y. (2019, May). Defending my castle: A co-design study of privacy mechanisms for smart homes. In Proceedings of the 2019 CHI Conference on Human Factors in Computing Systems (pp. 1-12).
3. Watanabe, K., Nagatomo, M., Aburada, K., Okazaki, N., & Park, M. (2019, September). Gait-Based Authentication for Smart Locks Using Accelerometers in Two Devices. In International Conference on Network-Based Information Systems (pp. 281-291). Springer, Cham.
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10. Robinson, K. T., Smith, R., Masters, G. W., & Bradetich, R. (2019). U.S. Patent No. 10,380,815. Washington, DC: U.S. Patent and Trademark Office.
11. Rai, H. B., Verlinde, S., & Macharis, C. (2019). Unlocking the failed delivery problem? Opportunities and challenges for smart locks from a consumer perspective. Research in Transportation Economics, 100753.
12. Sikder, A. K., Babun, L., Aksu, H., & Uluagac, A. S. (2019, December). Aegis: a context-aware security framework for smart home systems. In Proceedings of the 35th Annual Computer Security Applications Conference (pp. 28-41).
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