3. KIWI INC- FORANGE
Section 1: EXECUTIVE SUMMARY
Kiwi Incorporated is always trying to innovate and develop the latest and greatest in wearable,
incognito, and hands-free technology. Our newest product, the Forange, will revolutionize the wearable
technology industry by combining a tablet, smartphone, and smartwatch into a single device that fits
snugly on your forearm. By making the Forange incognito, we hope to allow more human-to-human
interactions instead of the isolation normally experienced with current consumer electronics.
The problem that we see in our technology-rich society today is that with a plethora of gadgets in
the industry to choose from for different purposes, be it a need for a small incognito smartwatch for active
people on the go or a tablet for a product with a larger screen to get work done, there’s an overload of
choices to make when it comes to buying a device in consumer electronics. With an abundance of both
pros and cons to each device, the consumer has much to consider when choosing a product. However,
choosing a device is not the only problem we see in our technology-centric society; a subproblem stems
from a user having access to so many different kinds of devices. These days people associate less and less
with others as a result of having access to all sorts of technology in the palms of their hands.Constantly
holding a screen in front of them, these people are blocking themselves from interacting with the other
people around them, opting instead to immerse themselves in the realm of technology.
Our company aims to solve these problems in a number of ways. Firstly we aim to combine the
components of each device which are most desirable into a single wholesome product: the Forange. This
device will combine together the functionalities of a smartphone, screen size and processing power of the
tablet, and the versatility and mobility of the smartwatch, As for the subproblem, the Forange sits
comfortably along your forearm with its flexible screen bending to meet the contours of your arm,
completely eliminating the need to have it in its user’s hands.With our device being so incognito, we
believe it will help bridge the gap between consumer electronics and human interaction by allowing a user
to spend less time with a device in their hands and more time associating with others.
Kiwi Inc. believes this product is the culmination of that which consumer electronics has been
striving toward for decades. The computer industry has evolved from the days of yore wherein personal
computers were huge pieces of equipment to a day where a computer fits in the hands of users in the form
of a tablet. Cellular phones have transformed from brick-sized blocks into the smartphone, a device which
is essentially now a handheld computer. In fact, the latest generations of smartphones are so advanced that
they are more of a small tablet itself. Wearable technology is a new frontier that the consumer electronics
industry is just now exploring in the forms of devices like glasses and smartwatches, allowing for
technology to be incognito and accessible for users who are on-the-go. The consumer electronics industry
and all its branches are clearly heading in the same direction: a combination of all three of these
technologies. That combination is the Forange, a standalone wearable product that offers tablet,
smartphone, and smartwatch capabilities all in a single device.
Section 2: CROSS REFERENCED DESCRIPTION
2.1 HOW TO USE THIS REPORT
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This project report highlights the preliminary project planning, conceptual design, and financial
analysis of the Forange. This project will also emphasize Kiwi’s strategic, corporate, and competitive
content at the different levels of management, development, and commercialization. As a way to use this
report, we have created two figures to help the user visualize this report and allow them to find what they
need.
● Figure 1.1: This figure is The Final Project Report Function Structure as a complete overview of
the table of contents and all elements essential to this report. It clearly shows which elements and
parts are under which section and shows a high level visualization of this report.
● Figure 1.2: This figure is The Integration which is a parallel overview of all managing,
developmental, and commercial content that demonstrates the integration of the Forange. In this
figure you clearly see in which steps to complete the MDC Framework to create a product, as
well as see which parts are connected to other parts from different segments.
While we understand that the MDC Framework is a guide that is supposed to be done
instantaneously and not as a sequential process, this Final Project Report is structured in a step-by-step
manner for ease of readability. So one way to use this report is by reading it from cover to cover and it
will take you on a journey of the Forange. The second way is to just read the executive summary which
sums up what the Forange is and why we need it in society today. Finally, to just find specific parts you
can use the table of contents or Figure 1.1 and 1.2 to specifically find what you are looking for.
Figure 2.1 Final Project Report Function Structure
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Figure 2.2 Integration
2.2 TABLE OF FIGURES
Page Figure Description
5 2.1 Final Project Report Function Structure
5 2.2 Integration of Project Report
8 3.1 Porter Model
9 3.2 Porter Force Analysis
11 3.3 Revenue Map
13 3.4 Functional Map of the evolution of the portable technology landscape
14 3.5 High level HOQ
15 3.6 Potential Set of Products
16 3.7 Building Blocks of DA
16 3.8 Influence Diagram of DA for Project 4
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16 3.9 Decision Tree of DA for Project 4
17 3.10 Folded Back Decision Tree for Project 4
17 3.11 Sensitivity Analysis for Project 4
18 3.12 Sensitivity Analysis for other Projects
18 3.13 EMV Payoff and Loss for Projects
20 3.14 Possible Research and Development Mixes
21 3.15 Lookup Table
22 3.16 Societal Needs
24 3.17 Selection Criteria
26 3.18 Design Development Structure Mix
26 3.19 GANTT Chart
27 3.20 PERT Chart
27 3.21 CPM Chart
28 4.1 QFD Deployment
29 4.2 FAST Diagram for Apple iWatch
29 4.3 FAST Diagram for Samsung Galaxy
31 4.4 HOQ
32 4.5 Function Structure for Kiwis Forange
33 4.6 Morphological Matrix Part 1
34 4.7 Morphological Matrix Part 2
36 4.8 Utility Function
37 4.9 Selection Criteria
40 4.10 Product Line Strategy
41 4.11 FMEA CPU
41 4.12 FMEA GPU
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42 4.13 FMEA Memory
42 4.14 FMEA RAM
43 4.15 FMEA Wifi Chip
43 4.16 FMEA Touch Screen
44 4.17 FMEA Wearability
44 4.18 FMEA Buttons
45 4.19 FMEA Camera
45 4.20 FMEA Speakers
46 4.21 FMEA Table
47 5.1 Scenario Input Parameters
48 5.2 Four Year Financial Analysis
48 5.3 Development Cost Sensitivity Analysis
49 5.4 Sales Volume Sensitivity Analysis
50 5.5 Product Release Roadmap
Section 3: MANAGEMENT
3.1 FIRM-LEVEL STRATEGY
Industry-Market Landscape
Before any company can enter the market with their product it is important to first analyze and
assess the target market landscape. To do so we use a Porter Model to illustrate the target market
landscape which includes: new entrants, buyers, suppliers, substitutes, complements, and rivals.
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Figure 3.1 Porter Model
Five forces that influence industry attractiveness are identified, as well as the factors (e.g.,
number of competitors, size of competitors, capital requirements) that determine the intensity of each
force and therefore the cumulative intensity of the five forces. The purpose of the five forces framework
is to relate the degree (or intensity) of competition in a given industry, as qualitatively measured by the
combined strength (or intensity) of five forces, to the attractiveness of the industry, defined as its ability to
sustain profitability (Porter, 1980).
Force: Description: Qualitative Measure:
Force 1: Rivalry There are no other products like
the Forange so the force is
extremely low.
Low
Force 2: Threat of new entrants This force is extremely high as it
is a very young technology/
product and there is a lot of
potential for a great company/
product to take a huge market
High
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share.
Force 3: Threat of substitutes As for now this force is low as
there isn’t really a substitute for
our specific product but there
are other product lines that
could be substituted for the
Forange.
Medium
Force 4: Supplier Power Suppliers have significant
leverage as we are not a gigantic
tech company and we are a
fairly new technology.
Medium
Force 5: Buyer Power Extremely high as we are a new
technology/ product that may or
may not be a hit to consumers.
High
Force 6: Power to influence Low because we do not have a
set tech/ product ecology that
we can influence other products
over.
Low
Figure 3.2 Porter Forces Analysis
Competitive Strategy:
There are three competitive strategies that tech companies usually fall under and they are cost
leadership, differentiation, and focus. Kiwi company falls in between differentiation and focus. We
believe that we have a very unique product that is like nothing else on the market but we are still aiming
for a specific group of people and we do not want our products to be extremely expensive. When first
entering the market we will be a focus company that targets consumers and enterprise customers first.
Then as we gain a foothold we will move from focus to differentiation with a very high end and expensive
product.
Technology Strategy:
Kiwi Inc’s technology strategy is to create products that are wearable, hands-free, and incognito.
While most consumer electronics companies’ tech approach is to develop high end consumer products,
we aim to go further and develop products that fall within our tech strategy. We believe that wearable
technology is the next wave of evolution in consumer electronics so we are solely focusing on this area.
With the ever busy lives of people, mobility is key. The ability to work on the go, anywhere and anytime
is important so a hands-free device is a must. Finally, we believe that technology has erected a barrier
between human-to-human interaction and we aim to break this wall down with incognito technology. We
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want to create products that are out-of-sight and out-of-mind, and if you do have to go on it it will be a
quick glance.
Market Strategy:
Our product will develop an innovative wearable technology that will allow users to partake in
hands free activities. This should help users maintain relationships with other people as opposed to how
other devices tend to isolate users from each other. This product differentiates itself from other products
in the market in wearable technology since this device is meant to replace other smart devices. Our
company serves the consumer market first, and the market of companies as they purchase more wearable
technology for their employees. This could also serve the military as hands-free technology is invaluable.
Our target audience would be for people ages 12 - 60 years old. We would want to create an image of
simplicity to our customers in order to beat our competitors. Our product will be marketed so that it will
not look intimidating to use, but a product that can assist the user and promote a more hands-free social
lifestyle.
3.2 BUSINESS GOALS
Short Term
Our company, Kiwi, plans to release its latest, innovative new product a couple months into 2018.
Over a four year period in which the product will be developed, there will first be a dip into the negative
NPV as we are spending money on development, production, ramp up costs, and marketing with no
income. There will be a swift surge in Foranges’ profit margins as it gains a foothold in the market shortly
after its release 2-3 years after development. As the market rapidly expands over the next few years Kiwi
expects to generate at least 20% more revenue as we grasp a larger share. After the initial launch of
Forange we expect to increase profit margins by at least 10% annually. Customer service is valued and we
aim to increase the amount of positive feedback we receive to 95% by focusing resources on customer
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satisfaction. During the subsequent years following the release of Forange we will aim to increase
efficiency in the company.
The following figure is a revenue map of the consumer electronics industry. It shows how much
each of the market segments is earning. As the jack-of-all trades device we are not focusing on just one of
these boxes but rather we aim to chip away a small percentage from each one into our own box. We
understand that it will be slow and little chips at first but we aim to increase that as time goes by.
Figure 3.3 Revenue Map
Long Term
The Forange is expected to continue generating rising revenue each year as its popularity
increases. Short term goals such as customer oriented service will generate a positive image for our
company and help us achieve long term goals such as increasing our customer base and profitability.We
aim to become a household name in the home of the future, and our vision is for everyone to be using our
product in their everyday lives Over the decade following the release of Forange we aspire to reach a
profit margin of 30%, with a stable increase above 5% annually and a market share of 10%. Once we
have securely anchored in a revenue we will focus resources on short term goals oriented towards creating
opportunities for acquisitions of new or existing products.
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3.3 DEVELOPMENTAL GOALS
Kiwi Inc. aims to use our competitive, technology, and market strategies in order to achieve our
business goals of stably increasing profit margins. By starting out as a focused company we hope to gain a
large number of customers at first, and then we intend to move from focus to differentiation with or new
products. As we develop new wearable technology we hope to constantly make it better and more
innovative in order to continue reaching our business goals. Furthermore we hope that by making our
technology more incognito we can help reestablish more interaction among humans, which lines up with
our market strategy. With more hands-free opportunities from our product, we hope our users will interact
with other people thus spreading more awareness of our product indirectly.
3.4 FUNCTIONAL MAPS
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Figure 3.4 Functional Map of the evolution of the portable technology landscape from 1980-2010
This functional map graphs the products released in the portable technology industry from 1980 -
2010. Its purpose is to demonstrate how the various types of portable devices are slowly being integrated
into a single stand alone device. As time has progressed the smart phone & portable computer industries
have merged into devices such as the Samsung Galaxy. Similar trends are spotted in the watch/wearable
industry latest generation of smart gear. Google glasses is a perfect example of a stand alone device that
offers features such as wearability from smartwatch functions, communication from smartphone functions
and computing from portable computer functions. Customers are demanding to have their watches,
phones, laptops, tablets, cameras, notepads, readers all condensed into a single super-smart device, the
Forange.
3.5 HIGH-LEVEL HOQ
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Step 1: Identify a potential set of products
Figure 3.6 Potential Set of Products
Step 2 and 3: Determine the payoff (EMV) and cost for each project
EMV Cost
Project 1: Smart Glasses $45 Million $450 Million
Project 2: Smart watches $71 Million $400 Million
Project 3: Smart earpieces $4.5 Million $760,000
Project 4: Forange $34 Million $10.3 Million
Note:* All these values are based off of historical data, including from other companies.
Step 4: 6-Step Decision Analysis
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DA Step 1: Building Blocks
Figure 3.7 Building Blocks of Decision Analysis for Project 4
DA Step 2: Influence Diagram
Figure 3.8 Influence Diagram of DA for Project 4
DA Step 3: Decision Tree
Figure 3.9 Decision Tree of DA for Project 4
DA Step 4: Fold Back Decision Tree
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Figure 3.10 Folded Back Decision Tree for Project 4
DA Step 5:
Project 4
Yes, we would fund a R & D program to develop the Forange because the EMV far
exceeds the cost to produce and thus would yield the most profits.
DA Step 6:
Project 4
Sensitivity Analysis +/- 10% (55%-75%)
Figure 3.11 Sensitivity Analysis for Project 4
Information for the rest of the projects:
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No, we would not fund a R & D program to develop a smart glasses because the expected
value does not exceed the expected costs and thus would be unprofitable.
Project 2
No, we would not fund a R & D program to develop a smart watch because the
cost to develop this project exceeds the expected monetary value and would be
unprofitable.
Project 3
Yes, we would fund a R & D program to develop a smart ear-piece because the expected
monetary value would produce profit given our expected costs to develop it.
Step 4: Use a boolean integer variable of i to select or reject a project
Project 1: Smart Glasses
a1 = 0
Project 2: Smart Watch
a2 = 0
Project 3: Smart Earpieces
a3 = 1
Project 4: Forange
a4 = 1
Step 5: Determine the cumulative cost & value for the selected projects
Ct = a1*C1 + a2*C2 + a3*C3 + a4*C4 = 0*$450M + 0*$400M + 1*$760,000 + 1*$10.3M
Ct = $11.06M
Vt = a1*V1 + a2*V2 + a3*V3 + a4*V4 = 0*$45M + 0*$71M + 1*$4.5M + 1*$34M
Vt = $38.5M
Step 6: Pose optimization problem
Cb(Budget) = $50M
Optimization: Ct = $11.06M < Cb = $50M
Step 7: Table of the costs
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2n
combination; n = 4
Figure 3.14 Possible Research and Development Mixes
Below is the look-up table that determines the set of projects
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# a1 a2 a3 a4 cum. cost cum. val
1. 0 0 0 0 0 0
2. 0 0 0 1 10.3M 170M
3. 0 0 1 0 760k 22.5M
4. 0 0 1 1 11M 192M
5. 0 1 0 0 400M 355M
6. 0 1 0 1 410M 525M
7. 0 1 1 0 401M 377M
8. 0 1 1 1 411M 547M
9. 1 0 0 0 450M 225M
10. 1 0 0 1 460M 395M
11. 1 0 1 0 451M 247M
12. 1 0 1 1 461M 417M
13. 1 1 0 0 850M 580M
14. 1 1 0 1 860M 750M
15. 1 1 1 0 851M 602M
16. 1 1 1 1 861M 772M
Figure 3.15 Look-Up Table for All Project Possible Combinations
Answer:
Based on the Decision Analysis Trees, our budget of $50 million, and the table look up above, the
products that we should develop are Projects 3 and 4: Smart ear pieces and Forange.
3.7 DEVELOPMENTAL FUNNEL
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A developmental funnel is a way for the product design team to brainstorm different ideas that
will match the company’s vision and mission statement. There are no limits as to what can be suggested
and all ideas are encouraged. We first decide on customer needs that we want to solve, then create societal
needs based on the customers. We then create 15 - 20 different ideas for each societal need, and use a
selection criteria to pick 5-7 ideas. We then delve deeper into each idea and from those few we select one
that we will work on.
1. Customer Needs:
a. Health/Fitness
b. Transportation
c. Communication
d. Security
e. Medical
f. Education
g. Sustainable energy
h. Incognito technology
i. Wearable technology
j. Connectivity
2. Societal Needs (2-3) based on selected criteria
High Technical Plausibility Low Technical Plausibility
High Commercialization
Potential
Wearable Technology
Health/Fitness
Transportation
Communication
Connectivity
Sustainable Energy
Incognito Technology
Low Commercialization
Potential
Education
Security
Medical
Figure 3.16 Societal Needs
From this we choose Health/ Fitness, Wearable technology, and Transportation as our 3 societal needs.
3. 15-20 ideas for each societal need
a. Health/Fitness
i. Wrist devices
ii. Eye Gear
iii. Food Scanner
iv. Waist Tech
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v. Leg Tech
vi. Mouth Chip
vii. Robot Flying Pet
viii. E-Tattoo
ix. Hearing technology
x. Nose Technology
xi. Heart Rate device
xii. Repetition counter
b. Transportation
i. Public Flying Bus
ii. Magnetize Bullet Trains
iii. Bullet cars
iv. Cyclist proximity device
v. Moving walkways around the city
vi. Automatic driving cars
vii. HUD Display for dashboard
viii. Touch screen windows screen
ix. Electrical vehicle engine upgrade
x. Game console addition to cars
xi. Terrain changing tires
xii. Gigantic slides inside buildings
xiii. Personal/Tube elevators
xiv. Jetpack/Hoverpack
xv. Application to track public transportation
c. Wearable Technology
i. Contact lenses
ii. E-Tattoo
iii. Smartwatches
iv. Forearm gadgets
v. Shoes
vi. Smart Ear pieces
vii. Smart glasses
viii. Smart Caps
ix. Smart gloves
x. Smart socks
xi. Language translating earpiece
xii. Language translating mouthpiece
xiii. Wrist devices
xiv. Jacket gadgets
xv. Helmet gadget
4. Narrow down to 5 -7 and briefly describe
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Wearable Technology Transportation Health/Fitness
Company Size
Constraint
Medium Medium Medium
Societal Needs
Satisfied
High Medium Medium
Commercialization High Low Medium
Technical Feasibility High High High
Price Attractiveness Low Medium Medium
Figure 3.17 Selection Criteria
a. E-Tattoo - Electrical nodes are tattooed onto one’s body. These nodes are then available
for programming to do a certain task, such as charging a cell phone or act as a proximity
scanner.
b. Robot Flying Pet - A flying robot that can help elderly or disabled patients. The robot will
have many capabilities to help patients return, or reach, for items in high places or long
distances.
c. HUD for dashboard - a Heads-Up Display would project features upon the dashboard so
a user could view notifications from a device while retaining the ability to see the road
ahead. Features could include maps, weather, and road conditions.
d. Touch screen car windows - a touchscreen on the passenger side windows that will allow
passengers to play, go on the web, watch videos, and other fun stuff.
e. Public Transportation Tracking - By adding a GPS device to busses, users will be able to
see in real time where their bus is and at what time it will be coming. Another useful
feature it could add is how full that bus will also be.
f. Contact lenses - An electronic contact lense that will contain a HUD. Similar to Google
glass but it will be just for the eyes. It will be voice enabled and will show things that we
already see on our smartphones and Google glass, such as a map, who is calling us,
texting us, or even watch a video. In the future it might contain features such as facial
recognition and item recognition.
g. Forearm gadgets - This gadget would be a tablet for our forearms. Current smartwatches
only act as an extension to the smartphone, meaning that they are not a stand alone device
by themselves. With this technology we can create a standalone device with features
similar to a tablet but it would become wearable technology and be incognito in a way.
h. Smart Earpieces - Earpieces that would be small enough to fit inside our ears. These
earpieces would act like a smartwatch, it would be an extension of the smartphone, that
will allow us to do things like calling, listening to text messages, notifying us if an email
arrived, and directions. It would be better than a smartwatch as we would not have to
constantly look at screens.
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5. Final Product Idea:
Our final product idea that we have chosen is that of the forearm gadget. Our idea is a forearm
gadget, similar to that of the smartwatch but for the forearm. Unlike the smartwatch however, our gadget
will be a standalone device that is meant to replace the laptop, smartwatch, tablet, and even some features
of the smartphone. We will call this product, the Forange.
3.8 PROJECT PLANNING
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Fig 4.2 FAST Diagram for Apple iWatch
Fig 4.3 FAST Diagram for Samsung Galaxy Tab
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4.3 CONCEPTUAL DESIGN
Step 1: Identify Primary Functions
The primary function of the Forange is to combine tablet and smartwatch functionalities
into a device that will attach to your forearm. Essentially, it is a tablet on your forearm. The
Forange will provide tablet functionalities such as Wifi capability, touchscreens, and a
platform/operating system for applications. The smartwatch aspect of it however, is that it will be
wearable technology that attaches to your forearm. This device is intended to be incognito - it will
be under your sleeve/out of sight and any notifications can easily be read by glancing quickly at
the screen.
Step 2: Find related products and dissect them using FAST Diagrams
Apple iWatch : See Figure 4.2 above
Samsung Galaxy Tab : See Figure 4.3 above
Step 3: Establish customer needs and technical specifications using the HOQ
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Step 6: Generate Concepts
Bundle #1
This is the Solapple, it has the ability to gain power from the sunlight and charges a state of the
art electrochemical battery. It will connect to the internet using 4G capabilities, placing
information at the users fingertips. We are calling this the Solapple because it will boast the user
friendly Mac OS running on Macintosh hardware. The display output will be the well-known
Bundle #2
This is called the Stem because it derives its power through electrical means, and
it charges through an electrochemical battery. It connects to the internet through 4G capabilities
and allows for fast and reliable connectivity everywhere.We store the information in the cloud
because that is the way of the future. It uses the Android OS and has wintel hardware (windows
and intel). It also displays information through a responsive touch screen.
Bundle #3
This will be called, the Seed because this power comes from within the human body. By using
kinetic energy, this will help to store power without having to rely on electrical outlets. This has
4G capabilities to send and receive information, as well as accessing the Internet. It will use
molecular memory to store information. It will run on an Android software, and use Wintel
hardware. The output of the information to the user will be a hologram.
Bundle #4
This will be called the Root because it will receive power through electrical wiring and hold that
energy through electrochemical battery. In order to connect to the internet, it provides 4G
capabilities in an effort to connect anywhere instead of being only restricted through Wi-Fi
connection. This bundle will be able to store information through cloud technology with its
ability to synchronize with other devices to save that information. It will use Mac OS because it
is user friendly and convenient for its consumers and will have hardware provided by Wintel. For
output information and feedback, the Root will respond with a hologram.
Bundle #5
This bundle will be called the Bud because like a flower, it will rely on solar power as its primary
source of power but will be equipped with a flywheel in order to gain a charge kinetically as well
so that it can function in times without ample sunlight. The Bud would use 4G technology just as
many of the other bundles in order for it to be a truly mobile device and to disallow it from
keeping the user grounded to Wi-Fi connectivity. The memory would use cloud technology in
order to take up as little space as possible in the actual design; by relying on cloud technology, the
Bud can have smaller on-device memory storage. The software of choice for the Bud would be
Microsoft with hardware coming from Wintel. Finally, the Bud would feature touch screens in
order for the user to interact with the device.
Bundle #6
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This will be called the Leaf, this will also rely on solar power for its energy source. In order to
store power, it will use a battery so that it can be light-weight. The Leaf will send and receive
information via Wifi in order to keep its mobility and easy of use. By using Wifi, it will store
information through cloud computing, since this is how most information is stored and it is
convenient. This will use Android software with Wintel hardware because being an efficient,
portable technology, this should be able to have a fast and reliable software. In order to output
any information, it will use a touchscreen to interact with the user.
Step 7: Utility Function
The utility function is an objective hierarchical-based tree for assigning relative weights to each
selection criteria. Below is the objective tree for the Forange.
Fig 4.8 Utility Function
Step 8: Use Utility Function to Select 1-2 Feasible Product Concepts
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Fig 4.9 Selection Criteria
After applying the utility function to the different bundles, our final decision was to go through
with concept bundle #3, the Seed.
4.4 PROTOTYPING STRATEGY
Once we have 1-2 feasible design concepts, we need to build a series of prototyping, starting with
a “proof of concept” prototype.
- look at prototyping space chart in notes
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1) develop a prototyping strategy in the prototyping space
2) critical virtual prototypes correlated w/ experimental data is useful for the following reasons
a) it’s relatively inexpensive to do prototyping with experimentally verified virtual
prototyping
3) after good functional prototypes have been created, next step is to firm up the Product architecture:
- product platform
- product design
4.5 PRODUCT ARCHITECTURE PRODUCT STRATEGY
1. Product Platform
a. Core Technology Element(s) of the Forange:
● Bendable/Flexible Touch Screen
● Fabric and Polyester ForeArm Sleeve
● Separated Hardware that is distributed evenly around the entire sleeve
● Sleeve/ Screen interwoven
● Padding both below and above the hardware
● Specialized Operating System
b. Supporting Technology Elements of the Forange:
● Stylus to interact with touch-screen
● Adjustable arm band size
● WiFi chip/antenna
● graphics processors
● computing processors
● accelerometers
● gyroscopic sensors
● flash-based memory
● charger port
● power supply
● speakers
● camera sensors
● camera chips
● camera lenses
● camera light
● microphone
● heat sensors
● buttons for lock screen and volume control
2. Use Product Platform to create Product Lines for different market segments
a. Consumer market segment
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i. Cost Efficient
ii. Cheaper Materials
iii. Customizable
iv. Limited Access to Software Features
v. Light-weight
vi. Medium performance
vii. Incognito
b. Enterprise market segment
i. High End Durable Material
ii. Enterprise Software Features
iii. Faster Processor
iv. Larger Memory
v. Cloud Database Accessible Across Other Devices via Identification
vi. Security features
vii. High performance
viii. Incognito
c. Military market
9. Very Durable Material
10. Impact/Shockproof
11. Bulletproof
12. High Performance
13. High Security
14. Silent/Incognito
15. 4G capabilities
16. anti glare
17. Extremely Reliable Service
3. Product Platform / Product Line of Forange
Below is the product platforms and product lines conceptual graph that determines which target
market segment is suited for each of the chosen alternative conceptual designs.
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46. KIWI INC- FORANGE
System Failure
Mode
Effect Severity Frequency Detection RPN Solution
CPU Over
Heating
System
Crashes
6 1 4 24 Cooling
Vent
GPU Over
Heating
System
Crashes
6 1 5 30 Cooling
Vent
Memory Memory
Failure
System
Crashes
5 1 3 15 Back up
Memory
RAM Slow
Down
Device
System
Crashes
5 1 1 5 Replace
RAM
Wifi Slow
Down
Device
Connectivity
Lost
1 3 8 24 Gigabit
Ethernet /
Hotspot
Touch
Screen
Loss of
Input
No Control for
Device
6 5 3 90 Replace
Touch
Screen
Wearability Wearable
gear
malfunctio
n
Device Breaks 8 2 7 112 Replace
Wearable
Gear
Buttons Broken Loss of
Control for
Device
3 6 3 36 Voice
Command /
Replace
Buttons
Camera Broken Loss of
Pictures &
Video
Communicatio
n
4 1 4 16 Replace
Camera
Speaker Broken or
Unclear
Loss of Sound 6 2 1 12 Replace
Speakers
Figure 4.21 FMEA Table
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47. KIWI INC- FORANGE
Section 5: COMMERCIALIZATION
5.1 FINANCIAL MODEL
Scenario Input Parameters
Figure 5.1 Scenario Input Parameters
The total target market was estimated at 87.2M users. We took (1/1000) of that and arrived at 87,200 units
at the projected sales volume. To account for the fact that we are up and coming but also will have
exclusivity to the market, we took 150% of this number and arrived at 130,800 units. From research, we
estimated the cost to conduct the research and development for our product would range roughly to
5-10M dollars. We concluded on the lower end of $6.75M. The unit price is what one would expect from
a hybrid android device, assuming we want it to sell to the target audiences we are aiming for. The unit
production cost is a scale up of the industry average for a cell phone. The mark up was attributable to the
fact that we have a curved screen, armband, and wires running throughout the device for example. The
ramp up cost of 1M is standard across industries. The marketing and support cost was conducted based on
research on what other medium sized corporations spent in this industry. The 10% annual discount factor
is average for calculations.
The base case NPV is the present value of profits expected for the next 4 years from Forange.
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48. KIWI INC- FORANGE
Base Case
Figure 5.2 Four Year Financial Analysis
The base case above shows the estimated four year breakdown of our inflows and outflows from our
product.
Development Cost Sensitivity
Figure 5.3 Development Cost Sensitivity Analysis
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49. KIWI INC- FORANGE
Trade-Off Law:
The trade-off law states that a 10% increase/decrease in development cost correlates to a
$651,000 increase or decrease respectively in NPV.
Figure 5.4 Sales Volume Sensitivity Analysis
Trade-off Law:
The trade-off law states that a 10% increase/decrease in sales volume correlates to a
$6,765,000 increase or decrease respectively in NPV.
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50. KIWI INC- FORANGE
5.2 PRODUCT RELEASE
Figure 5.5 Product Release Map
Section 6: CONCLUSION
6.1 Conclusion
With the amount of market and product research that we have done, we have been able to come
up with a clear plan for our project Forange. We want to be able to achieve the mission and vision that the
company Kiwi Inc. has set in order to develop more wearable technology to reduce the amount of
handheld devices that are being used too often today when people are out socializing.
Our business strategy between differentiation and focus shows that we have a unique product out
in the market, and we have a specific target audience and market segment. We have done a considerable
amount of product development and research to make sure that the Forange will be able to meet
expectations and perform as intended. We mainly focused on other similar products such as the
smartwatch, tablet, and smartphones. Since our product is a combination of these products, we made sure
to do include additions to make it more suitable for wearable forearm technology. Through the dissection
of different products, we were also able to come up with different concepts that could be used for
development of other wearable technology that can be developed by the company. We aim to target the
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51. KIWI INC- FORANGE
consumer, enterprise and military market segments since this is an advanced, incognito, and wearable
technology. Our product will include core technology for multiple functionalities and entertainment, with
sensitive sensors to be adaptable to the user’s movements. The top three main failure modes are
wearability, touchscreen, and the buttons that will be on our product. Since these are all physical issues
instead of software issues, these would occur most often because it will prevent the user from being able
to use the product. After reviewing our project plan, our product will be very innovative and desirable and
we expect to see a high number of users so that we will be able to make a huge change in the wearable
technology industry.
6.2 Next Steps
After going through the MDC framework and understanding the overall incorporation process of
the framework itself, we hope that Forange will be one of the 4 projects chosen to be funded within Kiwi
Inc. The Forange has shown to be a product born out of necessity, as indicated by the evolutionary growth
functional map. Moreover, the strength and growth in the industry is a strong draw factor with a CAGR of
50+%. It is ripe for a company to enter the uncharted industry and gain large market share, as they set the
precedent for those to come.
We have made our case as to why the Forange should be granted funding. With a NPV of
$52,344,325, the project is very attractive and the start of a product line that we can build on at Kiwi Inc.
The potential growth and expansion within the industry of wearables allows us to grow alongside with
new key technology entrants and advancements like projection and the like. As with any wearable
technology, the platform is the foundation to the success of our product. As the Google Play Store
continues to release new operating systems and new applications, we will continue to grow and aspire to
be a forced to be reckoned with in the wearable tech industry. We believe that upon granting of funding,
our product can be produced successfully to target the aforementioned target consumers. The price point
and projected sales numbers are expected to grow as we further build our brand and gain traction and
brand loyalty within the industry. The upside is huge and we believe it can be something big if chosen,
and our numbers reflect this fact.
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