Competitive Analysis: Business Goals  Technology Strategy Developmental Goals: House of Quality (HOQ) for Theia’s Smart Glasses Final Project Report CSE 171A Authors: Alena Fernandez Ashwin Chidambaram Brittany Cook Christopher Chiang Conrad Pereira Shen Cheng Sunny Chaubey Vaughn Fisher Professor: Subhas Desa Contents Add Headings (Format > Paragraph styles) and they will appear in your table of contents. Final Project Report: The completed project report is due either on Thursday, December 5 (in class), or (if you need more time) Tuesday, December 10 (before 5 PM, at Building E2, Room 561), or Thursday, December 12 (before 5 PM, at Building E2, Room 561). The guidelines for the final project report are as follows: · Create a clear, well-structured, and well-written “end-to-end” complete and correct project report that could be understood, used, and/or implemented by a third-party (e.g., a senior management review group, another project group, an UCSC SOE awards committee, business plan competition committee). Make sure to name your company and your product. · Include a Table of Contents. · The report should be broken up into numbered sections with captions (e.g., Section 3.5: House of Quality). · The front-end of the report should have two components. First, create a useful 1- page executive summary. Then, create a 3-5 page cross-referenced description (of the actual contents of the report) which includes (1) a block diagram, similar to a “function-structure”, showing how all the parts of the report (e.g., competitive landscape, HOQ, conceptual design) are connected to each other, and (2) a short write-up which uses this function structure to explain “how the report should be used”. · The different sections of the report should have brief but clear explanations of the work done, with all figures and tables clearly cross-referenced to the text. Each section should have a clear set of conclusions. · The sections of the report should be connected to each other to tell a coherent story. · End the report with an overall set of conclusions and guidelines, and with a detailed statement of the next steps (or future work). Executive Summary Comment by Ashwin Chidambaram: Block Diagram Conclusion and Guidelines Management (M): Perform steps 1-5 concurrently. 1. (Firm-level Strategy). Map the industry-market landscape for the technology/product, and then establish the overall competitive strategy, technology strategy, and market strategy of the technology firm.Competitive Analysis: Competition: Vuzix, Google,Everysight, Snapchat, Toshiba Competition level: High Suppliers: Luxottica, Essilor, Asahi Glass Co. Power level: Medium Buyers: People with impaired vision, regular consumers, company employees Power level: Low Compliments: Amazon (Alexa), Weather Channel (App), Google/Google Maps (App), CAD (Software) New Entrants: Apple, Amazon, Facebook, Microsoft Threat leve ...

1. Competitive Analysis:
Business Goals
Technology Strategy
Developmental Goals:
House of Quality (HOQ) for Theia’s Smart Glasses
Final Project Report
CSE 171A
Authors:
Alena Fernandez
Ashwin Chidambaram

2. Brittany Cook
Christopher Chiang
Conrad Pereira
Shen Cheng
Sunny Chaubey
Vaughn Fisher
Professor:
Subhas Desa
Contents
Add Headings (Format > Paragraph styles) and they will appear
in your table of contents.

3. Final Project Report: The completed project report is due either
on Thursday, December 5 (in class), or (if you need more time)
Tuesday, December 10 (before 5 PM, at Building E2, Room
561), or Thursday, December 12 (before 5 PM, at Building E2,
Room 561). The guidelines for the final project report are as
follows:
· Create a clear, well-structured, and well-written “end-to-end”
complete and correct project report that could be understood,
used, and/or implemented by a third-party (e.g., a senior
management review group, another project group, an UCSC
SOE awards committee, business plan competition committee).
Make sure to name your company and your product.
· Include a Table of Contents.
· The report should be broken up into numbered sections with
captions (e.g., Section 3.5: House of Quality).
· The front-end of the report should have two components. First,
create a useful 1- page executive summary. Then, create a 3-5
page cross-referenced description (of the actual contents of the
report) which includes (1) a block diagram, similar to a
“function-structure”, showing how all the parts of the report

4. (e.g., competitive landscape, HOQ, conceptual design) are
connected to each other, and (2) a short write-up which uses
this function structure to explain “how the report should be
used”.
· The different sections of the report should have brief but clear
explanations of the work done, with all figures and tables
clearly cross-referenced to the text. Each section should have a
clear set of conclusions.
· The sections of the report should be connected to each other to
tell a coherent story.
· End the report with an overall set of conclusions and
guidelines, and with a detailed statement of the next steps (or
future work).
Executive Summary Comment by Ashwin Chidambaram:
Block Diagram
Conclusion and Guidelines
Management (M): Perform steps 1-5 concurrently.
1. (Firm-level Strategy). Map the industry-market landscape for
the technology/product, and then establish the overall
competitive strategy, technology strategy, and market strategy
of the technology firm.Competitive Analysis:
Competition:
Vuzix, Google,Everysight, Snapchat, Toshiba
Competition level: High
Suppliers:
Luxottica, Essilor, Asahi Glass Co.
Power level: Medium

5. Buyers:
People with impaired vision, regular consumers, company
employees
Power level: Low
Compliments:
Amazon (Alexa), Weather Channel (App), Google/Google Maps
(App), CAD (Software)
New Entrants:
Apple, Amazon, Facebook, Microsoft
Threat level: High
Substitutes:
Vuzix, Google, Bose, Snapchat, Toshiba, Everysight
Threat level: High
Theia is a new entrant in the AR Glasses market. We are
creating a substitute product since we were not the first movers
within this market. However, since it’s a relatively new market,
there is a wealth of potential profit. For this analysis, we will
analyze current market competition:
Key players include: Vuzix, Google, Toshiba, Everysight, and
Snapchat. There are many other key players within this market
but for now, we will be focusing on the ones at the top.
Competition level is high. Companies are working hard to
capitalize on this rapidly growing market. So far, Vuzix’s AR
Glasses are considered the top performing AR Glasses.
However, their pricing is very steep so we will see how they
hold up when the New Entrants come in.
The threat level for New Entrants is high. The barrier to entry is
extremely low as we see big companies such as Amazon,
Facebook, Microsoft, and most alarmingly, Apple trying to
enter this market. Apple and Microsoft are currently in its

6. production stage for AR Glasses with Microsoft’s HoloLens
already available for preorder.
Substitutes for AR Glasses include the main competitors in the
market.
Suppliers have medium power, as there are only a few
businesses in the world that specialize in lens crafting and
frame crafting. Luxottica makes glasses frames for virtually,
most of the frame industry so if we were to use them as our
supplier, it would be hard to be in control of the pricing as they
are a monopoly within their industry.
Consumer power is very low. Since there is insubstantial price
differentiation between products, the bargaining power of
consumers is low.
There are no low-cost providers within this industry and it is
unknown if this can even be a possibility at this time, given the
technology needed for AR Glasses and our modern environment.
Potential complements include services/features such as the
Amazon Alexa, Weather Channel App, and Google/Google
Maps. These are three add-ons that could prove to be quite
useful in conjunction with AR Glasses.
2. (Business Goals). Establish the business goals and objectives
(ROI, %market share, revenue, and growth aspirations). These
business goals need to be clearly related to the (clearly stated)
vision and mission of the technology firm (also see Steps 4,
17).Business Goals
Parameter
Current Quarter Goal
Quarter
Year
5 Years
Return on Investment

7. 15%
32.65%
32.14%
33.74%
Market Share
13%
10%
12.75%
12.5%
Revenue
950 million
880 million
4.3 billion
18 billion
Gross Profit
100 million
220 million
1.6 billion
4.5 billion
This current quarter Theia’s projected revenue and market share
will increase due to the increased publicity of its wearables
technology development. However, due to increased research
and development costs, the expected return on investment and
gross profit will be lower.
3. (Developmental Goals). Define the overall development goals
to align business goals, competitive strategy, technology
strategy, and market strategy. Technology StrategyCore
Technologies
What are the core technologies that give Theia a technological
advantage over its competitors?
· Advanced R&D Capabilities with rapid turn around periods
· Extensive background in the implementation of Machine
Learning and Computer Vision
· Expertise in reverse engineering
· Years of experience in simplistic and fashionable product
design

8. Theia Development Philosophy
What is Theia's approach to product & technology development?
Falling under the wing of the highly skilled R&D team, Theia
boasts a world class team of experts. Accomplished in the
research of cutting edge technology and highly skilled in the
reverse engineering of products.
In addition, our core ideas team shall purchase companies that
are of interest to the areas of technology in which we are
developing. Product/Marketing Strategy:Theia Product
Differentiation
What differentiates the company's products from its
competitors?
· Easy to use
· Best quality of lenses and framework
· Perfect AI
· Bone conduction, which is make your ears comfortable
· 24-48 hr battery life
· Wireless charging
· Good look from designer
Theia Target Market
What markets does the company serve?
· People who have vision disability
· People who like High-tech
Marketing Strategy
The goal is to make these advertisements tell a story, to appeal
to viewer emotions and sentiment. A case study on Apple
showed that they invested less in advertising versus Microsoft,
yet outperformed them in every way. Since we are competing
with these large firms, investing in advertising might be a great
way to differentiate ourselves. We will also be greatly
emphasizing our value proposition and our goal to future proof
our technology.Target Demographic
Our key target audience will be tech-savvy consumers and
industrial consumers that can integrate our AR glasses into their

9. everyday.
Primary Target Market: B2C
· Tech-Savvy & Lifestyle Consumers
Handsfree
Lifestyle & Applications:
Different Visual Modes
Google maps, Waze
Weather, email, music, calendar, fitness tracker, video calling,
Pokemon Go
Blue-light blocking mode and polarized sunglasses mode
Secondary Target Market: B2B
· Industrial Applications Consumers
Engineering Application
Art Applications
Military Applications
i.e. Civil Engineers being able to use a specialized version of
CAD or AutoCAD in the smart glasses to provide real-time
visualization of their product (specs, dimensions)
i.e. Artists can do sketches and visualize these sketches
anywhere they go, more for a visualization tool versus making
actual art.
i.e. Military can use smart glasses as a support tool for training
or missions.
Product Planning· In House Development:
· Product Design of glasses
· Modified glasses lenses for AR version
· AI trained from data set to recognize street names from
images· OEM:
· Custom PCB sized to fit in glasses frame
· Bone conduction technologies to transmit audio
· Miniature wide angle camera

10. · QI charging electronic components
· Miniature microphone· Product Feature Offerings:
· Bone conduction audio
· 24-48 hr battery life
· Wireless charging
· Camera with ability to read street signs from images
· Give directions based on GPS
· HUD projector for customizability for general consumers ·
Product Packaging:
· Will be shipped inside single box with dimensions:
· 12” x 12” x 5”
· Inside, there will be a cavity in which glasses will sit snugly
inside while unfolded. Included will be a charging case, and
necessary cables.Sales/Advertising Channels
· Sold online via website marketplace
· Sold in retail stores that carry technology products such as
BestBuy but also try for optometrist offices
· Advertising done on social media platforms such as Facebook,
Youtube, Instagram, and possibly Hulu/TV
a. Competitive Strategy:
b. Developmental Goals:
4. Identify:
a. Technologies related to proposed product
b. Products related to proposed product
c. Construct functional map to show the evolution of these
technologies and products
Developmental Goals:Proposed Hardware
· Small, efficient PCB with enough onboard computing power to
deliver product offering
· Small, thin battery capable of being recharged and carry
enough power for at least 24 hours of continuous use
· Custom sized hardware to mimic bone conduction capabilities
· Glasses housing to be able to fit:
· Main PCB Board
· Miniature, wide angle cameras
· Audio conducting leads + relevant hardware to achieve bone

11. conduction audio
· Miniature projector to create a HUD superimposed onto
glasses lens
· Microphone Proposed Software
5. Train Neural Net using supervised learning from a video
dataset collected from approximated eye level height to
recognize street signs, street names, traffic lights, and traffic
signals.
6. Use NLP to train a personalized AI to be able to respond to
verbal cues intelligently, and with audio that is more humanistic
7. Be able to communicate with cell phone using BLE
(Bluetooth Low Energy) to relay positional data and be able to
pull directions to locations from maps applications.
8. For the AR activated version, software is required to run an
intuitive HUD
9. (Functional Maps). Create functional maps (time-based
evolutionary maps) for engineering, manufacturing, and
marketing in order to rationally decide which technologies and
products to develop. A revenue map based on product/market
segmentation is crucial for the selection of the appropriate
target markets for the new product (also see Steps 2, 6, 13,
17).Related Technologies Functional Maps
Smart augmented reality glasses revenue worldwide from 2016
to 2022. (in millions of U.S dollars).[footnoteRef:0] [0:
]
Bluetooth Audio keyword interest over time: Interest over time
x Percentage of interest[footnoteRef:1] [1: ]

12. Global Smartwatch Shipments[footnoteRef:2] [2:
]
Projected economic impact of virtual and augmented reality
technologies worldwide from 2016 to 2020 (in billion U.S.
dollars) [footnoteRef:3] [3: ]
Interest in ML technologies from 2004 to present utilizing
Google Keyword Trends[footnoteRef:4] [4: ]
Interest over time x Percentage of interest [
Summary:
We have chosen to create functional diagrams for technologies:
customer interest in machine learning, projected economic
impact of augmented reality, smart glass technology, and
Bluetooth audio technology.
All of these technologies will be used in creating different
functions of the product, and some are the main premise of the
Theia’s smart glass product. ML will be utilized to perform
analysis on user experience data. It may also be used for the
smart glass inputs to better understand the outside world. AR
may be utilized for applications that will be bundled with the
product. Lastly, bluetooth audio will be used to pair to
peripheral audio devices for an integrated user experience.
These functional maps clearly demonstrate that augmented
reality, smart glass technology, and Bluetooth audio technology
are continuing to grow in popularity and as a revenue source.
Capitalizing on these market trends by creating a product that
involves them will prove beneficial for Theia.
10. (High-level HOQ). Identify customer needs and translate
these needs into high-level technical requirements (for the
technology, products, and projects to be developed) using

13. Quality Function Deployment (QFD) and, in particular, the
“House of Quality (HOQ)”.House of Quality (HOQ) for Theia’s
Smart GlassesStep 1: Define the Problem
Use the structured problem-solving process to create an
explicit plan for developing the HOQ for your company’s line
of products. This process will include reverse engineering, and
assigning specific tasks to the group membersStep 2: Create a
Plan
1. Make a FAST diagram
a. How do smart glasses work?
b. Identify the main functions of modern smart glasses.
c. Understand and note the “why?” and “how?” of smart glass
functionality.
d. Create FAST diagram.
2. Make a list of customer needs for our product based on what
we’ve researched, assess the importance of each need using a
convenience scale.
3. Make a technical metrics list and assess each metric using a
convenience scale
4. Correlate customer needs from SP2 and technical metrics
from SP3 using a correlation matrix
5. Correlate technical metrics to each other using a convenience
scale.
6. Assess competing products using customer benchmarking and
from a technical engineering viewpoint by using a convenience
scale.
7. Set targets for customer needs and technical metrics.
8. Review work, and draw conclusions.
Step 3: Execute
1. Create a FAST diagram
a. Step 1 : First understand how the product works.
Theia glasses are a wearable device that helps businesses
improve the quality of their output thus enabling employees to
work more efficiently. We are providing hands-on capabilities
to professionals with glanceable, voice-activated assistance.
Our glasses are designed to be there in a time of need and out of

14. the way otherwise.
b. Step 2 : Make a list of all the important subsystems that are
relevant for your FAST diagram
i. Built in camera
ii. Bluetooth capabilities
iii. Optical display
iv. Microphones
v. Android Operating System and Android platform APIs
vi. Audio output via speaker, USB audio, BT audio
c. Step 3 : Make a list of the primary (or main) function, & key
sub-functions of the product (Subfunction refers to the function
of a subsystem)
i. Primary (main) function: Store and display information for
relevant time periods.
ii. Key sub-functions:
1. Use standard Android platform APIs and built in camera to
get location data from available location providers
2. Optimize user input via voice commands (at least two words)
3. Utilize audio output and optical display to give user relevant
information
a. Grocery shopping list
b. Directions to and from locations
c. Set of instructions for a task
d. Step 4 -6 :
i. Write down the main function of the system on the extreme
right of the diagram.
ii. Organize the diagram with the why to the right and the hows
to the left.
iii. creating a FAST diagram for a complex product is a trial and
error process: to minimize the trial & error work from both ends
of the diagram (using results of step 2 & 3)

15. 2. Importance of Customer Needs
Customer Needs
Importance ([Score]/10)
User Friendly Interface
7
Safety
10
Aesthetically Pleasing
8
Battery Life
9
Build Quality / Durability
8
Sizing
8
3. Make a technical metrics list and assess each metric using a
convenience scale
Metrics
Importance ([Score]/10)
Ergonomics
9
Weight
7
Boot time
7
Quality of Camera
4
Latency
10
Processing power
8
User Interface (UI)
10

16. Integration with other devices
9
Peripheral sensors (haptic motor, gyrometer, proximity sensor)
8
4. Correlate customer needs from [2] and technical metrics from
[3] using a correlation matrix.
User Friendly Interface
Safety
Aesthetically Pleasing
Battery Life
Build Quality/Durability
Sizing
Value
7
10
8
9
8
8
Ergonomics
9
low
high
high
low
high
high
Weight
7
med
high

17. high
low
high
high
Boot Time
7
med
low
low
med
low
low
Quality of Camera
4
med
low
med
med
low
low
Latency
10
high
low
low
med
low
low
Processing Power
8
high
med
low
high
low
low

18. UI
10
high
med
high
high
low
low
Integration with other devices
9
high
med
low
med
low
low
Peripheral Sensors
8
med
high
med
high
high
med
5. Correlate technical metrics to each other using a convenience

19. scale
1 = No Correlation 2 = Negative Correlation 3 = Weak
Negative Correlation
4 = Weak Positive Correlation 5 = Positive Correlation
User Friendly Interface
Safety
Aesthetically Pleasing
Battery Life
Build Quality/Durability
Sizing
Value
7
10
8
9
8
8
Ergonomics
9
2
5
5
2
5
5
Weight
7
4
5
5
2
5
5

20. Boot Time
7
4
2
2
4
2
2
Quality of Camera
4
4
2
4
4
2
2
Latency
10
5
4
2
4
2
2
Processing Power
8
5
4
2
5
2
2
UI
10
5
4

21. 5
5
2
2
Integration with other devices
9
5
4
2
4
2
2
Peripheral Sensors
8
4
5
4
5
5
2
6. Assess competing products using customer benchmarking and
from a technical engineering viewpoint by using a convenience
scale.
Customer Needs
Theia (our product)
Google Glass
Vuzix Blade
Snap Spectacles
Sony Smart Eye Glass HUD
User Friendly Interface
10
5
5
4
5
Safety

22. 7
7
7
6
7
Aesthetically Pleasing
7
9
9
4
4
Battery Life
9
7
7
5
6
Build Quality / Durability
9
9
7
5
4
Sizing
9
8
7
7
4
7. Set targets for customer needs and technical metrics.
Metric
Related Customer Need
Unit
Marginal Value
Ideal Value

23. Ergonomics
Safety, Aesthetics, Durability, Sizing
Customer Rating
4/5
5/5
Weight
Safety, Aesthetics, Durability, Sizing
oz
3
2.5
Boot Time
User friendly interface, Battery Life
ms
1500
500
Camera Quality
User friendly interface, Aesthetics, Battery Life
Mega Pixels
6
8
Latency
User friendly interface
ms
2000
500
Processing Power
User friendly interface, battery life
GHz
1.7
2
UI
User friendly interface, Aesthetics, battery life
Customer Rating
4/5
5/5
Integration with other devices

24. User friendly interface
Percent of Market
60%
80%
Peripheral Sensors
Safety, Battery life, Durability
Number of Sensors
2
4Step 4: Check Work
Overall, the HOQ and Fast Diagrams seem to be correct based
on the team’s knowledge. Our information on the products could
be improved with further research or guidance. Several other
categories could be added to customer needs and technical
metrics, but the team used the essential aspects to assess the
product. Step 5: Learn and Generalize
HOQ is a method used in product development that allows
companies to pick the parameters by which they can make a
comparison to other competing products. Using this technique
we were able to establish the important features for our product.
We established customer needs as ergonomics, weight, boot
time, quality of camera, latency, and processing power. Using
customer needs, we were able to specify the technical needs that
we need to accomplish as: ergonomics, weight, boot time,
quality of camera, latency, processing power, UI, and
integration with other devices and peripheral sensors. To choose
our technical features, we noted the importance of each feature
from a development perspective with consideration to how well
each feature coincides with customer needs. This allowed us to
see how much we had to focus on each individual facet of our
product. HOQ is an extremely useful method of aligning
company product development goals with customer needs.
11. (Aggregate Project Plan). Use probabilistic decision
analysis to develop an initial aggregate project plan, which is
the mix of products to be developed (also see Steps 13, 17):
· Research & advanced development
· Breakthrough

25. · Platform
· Incremental (Enhancements, derivatives, hybrids)
· Alliance, or partnered projects
1. (Development Funnel). Create an appropriate development
funnel to refine and firm up the aggregate project plan. The
development funnel is a process for identifying and screening
projects over time.
2. (Project Planning). Establish a cross-functional team for each
technology/product development project. Develop a project plan
using the design/development structure matrix, GANTT, PERT,
and CPM charts.
Development (D): To develop each product, concurrently
engineer (CE) steps 9-13.
1. (Quality Function Deployment). Develop a comprehensive
House of Quality (HOQ) to correlate customer needs to
technical metrics and specifications.
2. (Reverse Engineering). Dissect existing products which are
similar to the proposed new product using the Function Analysis
Systems Technique (FAST).
3. (Conceptual Design). Create a function structure (FS) for
your product, and use this FS to generate a morphological
matrix (MM). Use the MM to generate several design concepts.
Select one (or more) concepts using a utility function, which is
based on an appropriate set of weighted selection criteria.
4. (Prototyping Strategy). Develop an appropriate prototyping
strategy (physical vs. analytical; focused vs. comprehensive).
Build and test proof-of-concept and other appropriate
prototypes based on the prototyping strategy.
5. (Product Architecture/Product Strategy). Establish the
technology platform and product platform. Define the
appropriate product lines to serve the target market segments
(also see Steps 4, 6, 17).
6. (Detailed design). Develop the detailed embodiment design of

26. the product. (outside the scope of MOT I).
7. (FMEA).Perform a failure modes and effects analysis
(FMEA) of the detailed design.
8. (DFX). Perform DFX: Design for manufacturability(X=M)
and quality (X=Q). (outside the scope of MOT I).
Commercialization (C) (Steps 13-16, above, are the transitions
from D to C).
1. (Financial Model). Develop a base-case (nominal) Net
Present Value (NPV) financial model in order to determine the
expected profits (payoffs) from the product development
projects. The NPV analysis models the appropriate cash-flows
(sales revenues, development, production, marketing, and other
relevant costs). Perform sensitivity analyses on the base-case
financial model in order to understand and quantify trade-offs
between time, cost, and quality (also see Steps 2, 4, 6, 13).
2. (Robust Design). Design the product for performance and
robustness using the Taguchi “Design of Experiments” method.
(advanced topic for CSE270A only)
3. (Product Release Map). Create the product release roadmap
(closely related to Step 13).
4. (Supply Chain Management). Design the supply chain and
distribution network for your product (addressed in MOT II:
Supply Chain Management)