Technology and information management

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example1.pdf

    Tarum  Fraz   TIM  105  

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TIM  105:  Management  of  Technology   Final  Examination  

   

Date    

Goal  

Thursday,  December  01,  2016   − Read  over  final   − Complete  number  1      

Friday,  December  02,  2016   − Review  old  midterm  problem   #3  

− Complete  #2    

Saturday,  December  03,  2016   − Look  over  old  Financial   Modeling  homework  

− Complete  #3    

Sunday,  December  04,  2016   − Look  over  old  Product  Design   material  

− Complete  #4    

Monday,  December  05,  2016   − Reflect  back  on  quarter   − Complete  #5    

Tuesday,  December  06,  2016   − Check  all  work   − Print  out  assignment  and  hand   it  in    

Figure  1  –  Final  Exam  Schedule                

   

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1. Planning     Step  1:  Define  the  Problem     Look  over  all  of  the  questions  below,  and  create  a  plan  that  will  help  you  in   completing  this  exam  successfully  

− Make  a  list  of  the  tasks  that  need  to  be  done  in  order  to  complete  this   examination  successfully.    

− Use  GANTT  charts  to  create  a  schedule  for  these  tasks,  and  keep  track  of   them  accordingly.    

− When  done,  draw  conclusions  and  develop  guidelines  to  better  your  own   strategies  and  implementation  in  the  future  

  Step  2:  Plan  the  Process     1. Create  a  project  schedule  in  order  to  allocate  time  successfully  for  this  problem   2. Determine  the  goal  of  the  examination   3. Determine  all  that  is  need  to  be  done  on  a  high  level  for  each  problem   4. Create  am  activity  matrix   5. Create  a  GANTT  chart   6. Identify  the  “critical  path”  using  a  PERT  Chart   7. Keep  track  of  each  task  and  document  completion   8. Create  guidelines  as  to  how  you  can  improve  the  implementation  process  in  the  

future     Step  3:  Execution     (1) Create  a  project  schedule  in  order  to  allocate  time  successfully  for  this  

project     Goal   Time  Allocated   Determine  the  goal  of  the  examination  

  10  Minutes  

Determine  all  that  is  need  to  be  done  on  a  high  level  for  each  problem    

20  Minutes  

Create  am  activity  matrix    

30  Minutes  

Create  a  GANTT  chart    

30  Minutes  

Identify  the  “critical  path”  using  a  PERT  Chart    

30  Minutes  

Keep  track  of  each  task  and  document  completion    

30  Minutes  

Create  guidelines  as  to  how  you  can  improve  the  implementation  process   in  the  future    

30  Minutes  

Figure  1.1  –  Project  Schedule  for  #1  

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(2) Determine  the  goal  of  the  examination     The  goal  of  this  final  examination  is  to  take  everything  that  I  have  learned  from  this   quarter  and  apply  it  to  real  life  applications,  producing  high  quality  work  in  an   efficient  manner.  I  hope  to  also  use  this  this  work  and  all  that  I  heave  learned  and   apply  to  with  the  companies  I  will  work  for  in  the  future.     (3) Determine  all  that  is  need  to  be  done  on  a  high  level  for  each  problem     Problem  #1  –  Planning     i. Activity  Matrix  (A)   ii. GANTT  Chart  (B)   iii. PERT  Chart  (C)     Problem  #2  –  Product  Development     i. Review  Midterm  #3  (D)   ii. Develop  Design  Process  for  Development  (E)   iii. Dissection  of  Video  Game  Console  (F)   iv. Dissection  of  VR  headset  (G)   v. Video  Game  sensor  to  track  motion  (H)   vi. Develop  Design  Process  for  VR  Entertainment  System  (I)   vii. Product  Platform  and  Product  Lines  for  different  market  segments  (J)   viii. Develop  FMEA  for  “serious  gamer”  and  “realistic  VR”  market  segments  (K)     Problem  #3  –  Financial  Modeling     i. NPV  analysis  for  four  years  (L)   ii. Find  minimum  value  of  unit  sales  price  for  the  product  that  will  result  in  a  

positive  NPV  by  the  end  of  year  4  (M)   iii. Trade-­‐off  law  between  NPV  and  unit  sales  prices  (N)   iv. Recommendation  of  price  that  the  software  giant  should  charge  for  1  unit  (O)   v. Expected  NPV  based  off  of  the  unit  sales  price  that  results  in  a  positive  NPV  

(P)     Problem  #4  –  IT  for  Product  Design  &  Development       i. Using  the  MDC  Framework,  develop  Product  Design  and  Development  

framework  (Q)   ii. Design  an  IT  system  to  automate  steps  of  the  framework  (R)  

  Problem  #5  –  Conclusion     i. Reflect  back  on  the  quarter  and  write  down  key  lessons  learned    (S)  

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  (4) Create  an  activity  matrix    

A B C D E F G H I J K L M N O P Q R S

A A x

x

x

B x B

x

C x x C

D

D

E d

E x

F

F x

G

x G x

H

x x H

I

I x

J

x J x

K

x x K x x x x

L

L x x x

M

x M x x x

N

x x N x x

O

x x x O x

P

x x x x P

Q

Q x

R

x R

S

S

Figure  1.2  –  Activity  Matrix  for  Final  Examination    

     

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1. A,  B,  and  C  are  sequential  tasks   2. D  and  E  are  independent  tasks   3. F,  G,  and  H  are  coupled  tasks   4. I,  J,  and  K  are  sequential  tasks   5. L,  M,  N,  O,  P  are  sequential  tasks   6. Q  and  R  are  sequential  tasks   7. S  is  an  independent  tasks  

  (5) Create  a  Gantt  chart  

 

  Figure  1.3  –Gantt  Chart  for  Final  Examination  

  (6) Identify  the  “critical  path”  using  a  PERT  Chart  

   

  Figure  1.4  PERT  for  Final  Examination  

       

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(7) Keep  track  of  each  task  and  document  completion     i. Task  A,  B,  C  took  30  min  to  complete   ii. D  took  20  minutes,  E  took  15  Minutes,  F,  G,  H  took  20  minutes,  and  I,  J,  K  took  

1  hour   iii. M  took  20  minutes,  N  took  3  minutes,  O  20  minutes,  P  took  15  minutes,    and  

Q,  R,  S  took  30  minutes    

(8) Create  guidelines  as  to  how  you  can  improve  the  implementation  process   in  the  future  

  I  did  a  great  job  sticking  with  my  time  predictions.  I  have  a  pretty  busy  quarter  in   terms  of  balancing  work,  school,  and  extra  curricular  activities,  so  I  am  pretty   adamant  on  sticking  to  my  schedule  to  ensure  I  complete  and  everything  on  time.     However,  there  is  always  room  for  improvement,  and  after  analyzing  my  process,  I   believe  that  I  could  have  done  a  better  job  and  finished  it  faster  and  earlier  than  it   was  due,  so  I  would  have  time  to  work  on  other  finals.  However,  I  think  splitting  up   the  questions  allowed  me  to  not  stress  out.     Step  4:  Check  your  work     After  using  my  lecture  notes  and  previous  homework  assignments,  I  am  very   confident  that  my  work  is  correct.  After  I  was  done  with  each  sub  problem,  I  went   back  and  documented  it  on  all  of  my  charts.     Step  5:  Learn  and  Generalize     This  exercise  was  really  great  in  the  sense  where  it  allowed  me  to  stay  on  track.   Listing  out  all  of  the  things  I  needed  to  do  also  helped  me  allocate  all  of  my  time   efficiently  during  finals  week  and  not  get  stressed  out.  I  will  use  this  tactic  when   planning  out  large  assignment  so  I  can  stay  on  track  and  produce  high  quality  work   in  a  time  efficient  manner.                        

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2. Product  Development  for  a  Virtual  Reality  Entertainment    (cont.   from  midterm  problem  #3)  

  Step  1:  Define  the  Problem     As  the  manager  of  a  new  product  development  team,  you  need  to  –    

− Provide  a  written  statement  of  your  structured  process   − Dissect    

o Video  game  console   o VR  Headset   o Video  Game  motion  tracking  sensor  

− Implement  your  process   − Develop  a  product  platform  and  line  for  –    

o Serious  gamers   o Realistic  VR  experience  

− Develop  FMEA  for  serious  gamer  market     Step  2:  Plan  the  Process     1. Create  a  project  schedule  for  time  allocation   2. Write  down  a  written  statement  of  the  structured  process   3. Execute  the  framework  

  Step  3:  Execution    

Create  a  project  schedule  for  time  allocation     Goal   Time  Allocation   Write  down  a  written  statement  of  the   structured  process  

1  Hour  

Execute  the  framework   3  Hours   Figure  2.1  –  Project  Schedule  for  #2  

                       

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Write  down  a  written  statement  of  the  structured  process       (1)  Conceptual  Design  Process  

Establish  customer  need  and  technical  specifications  using  HOQ   Identify  primary  function  of  the  product   Reverse  Engineer  similar  products   Create  an  abstract  functional  representation  of  the  new  product     Create  a  Morph  Matrix     Create  a  utility  function   Select  concept  with  highest  cumulative  utility  

(2)  Product  Platform  and  Product  Line  Strategy   Determine  underlying  elements  of  the  product  platform   Segment  the  market  based  on  competitive  and  market  strategy  and   then  prioritize  each  segment   Create  product  lines  for  each  segment   Create  a  project  plan  for  each  product  line  into  its  market  segment   Create  a  product  platform  and  line  

(3)  FMEA   Look  over  handout   Create  table  with  subsystems  and  components  as  well  as  appropriate   explanations   Fill  out  corresponding  functions   Rate  S,  O,  D  functions  &  calculate  RPN   List  out  actions  to  fix  parts  that  have  an  RPN  over  the  threshold  

  Execute  the  framework    

(1)  Conceptual  Design  Process   Establish  customer  need  and  technical  specifications  using  HOQ     Using  the  specifications  I  listed  on  my  midterm,  I  will  update   appropriately  for  the  VR  system      

Customer  Needs   Importance   Ability  to  switch  between  games    

10/10  

Good  Visual  Output    

8/10  

Multi-­‐player    

9/10  

Compact  Size    

7/10  

Reset  Button   6/10   Positive  UX   10/10  

Figure  2.2  –  Customer  Needs  for  VR  System  

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  Product  Specifications  (Technical  Needs)   Measurements   Importance   Force  Required  to  push  buttons    

Lbs.   6/10  

CPU  Clock  Speed    

Hz   8/10  

Storage  Space    

MB   10/10  

Graphics  Card  GPU    

Hz   8/10  

Processor  Speed    

MHz   7/10  

Figure  2.3  –  Technical  Needs  for  VR  System     Identify  primary  function  of  the  product          

Figure  2.4  –Primary  Function  of  VR  System    

Primary  Function:  Realistic  VR  experience  for  gamers  for   entertainment  purposes  

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  Figure  2.5  –HOQ  for  VR  System  

                 

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Reverse  Engineer  similar  products    

Video  Game  Console  –  Nintendo  64    

I  wil    dissect  the  Nintendo  64  that  was  released  in  1996,  using  the  notes  given  out  in   class.  

  System   Nintendo  64   Subsystem   • Game  Handle  

• Physical  Console   • Connecting  Wires  

Components   • CPU   • RAM   • Software  Kernel   • Storage  Medium  for  Games   • Video  Output   • Audio  Output   • Power  Supply  

Fig  2.6  -­‐  Important  Subsystems  and  Components  relevant  to  Nintendo  64    

Level   Aspect   Analysis   Why?   /How?  

System      

Nintendo   Device  that  outputs  a  video  signal   or  image  in  order  to  display  a   video  game  

Why  

Subsystem   Game  Handle/Controller   A  tool  to  play  the  game  with,  can   be  a  handle,  control,  remote  

Why/How  

Subsystem   Physical  Console/User   Control  Interface  

Actual  box/physical  hardware   Why/How  

Subsystem   Connecting  Wires   Ports  to  power  Console   How   Component   CPU   “Brains”  of  the  computer   How   Component   RAM   Game  console  memory  that  can  be  

accessed  randomly   How  

Component   Software  Kernel   Connects  hardware  to  software   How   Component   Storage  of  Games   Physical  location  of  games   How   Component   Video  Output   Video  output  of  game,  can  be  a  

port    

How  

Component   Audio  Output   Audio  output  of  game,  can  be  a   port  

How  

Component   Power  Supply   How  does  the  game  console  get  its   energy  

How  

Fig  2.7  -­‐  Analysis  of  Different  Functions  of  Nintendo  64        

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The  Primary  Function  of  a  Game  Console  is  to  provide  users  with  a  form  of   interactive  media  usually  through  a  video  and  audio  output.  A  Game  Console  is  also   mostly  used  for  entertainment  purposes.  There  are  many  different  pieces  and  sub   pieces  that  come  together  in  order  to  develop  a  functional  Game  Console    

     

Fig  2.8  FAST  Diagram  of  Nintendo  64       VR  Headset  –  Oculus  Rift   I  will  further  dissect  the  Oculus  Rift  using  the  notes  given  out  in  class.  

  System   Oculus  Rift   Subsystem   • Hardware   Components   • CPU  

• Sensors   • Graphics     • Battery  

Fig  2.9  -­‐  Important  Subsystems  and  Components  relevant  to  Nintendo  64        

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Level   Aspect   Analysis   Why?   /How?  

System      

Oculus  Rift   Device  to  provide  virtual  reality   experience  for  video  games  

Why  

Subsystem   Hardware   Physical  device  to  allow  system  to   be  

How  

Component   CPU   “Brains”  of  the  computer   How   Component   Sensors   Allow  for  VR  experience  using  

advanced  algorithm  technology   How  

Component   Graphics   Allow  for  VR  experience  using   visual  technology  

How  

Component   Battery   Sustain  high  quality  VR  experience   for  a  long  period  of  time  

How  

Fig  2.1.1  -­‐  Analysis  of  Different  Functions  of  Nintendo  64    

The  Primary  Function  of  a  VR  headset  is  to  provide  users  with  a  realistic  VR   experience  for  gamers  for  entertainment  purposes.  There  are  many  different  pieces   and  sub  pieces  that  come  together  in  order  to  develop  a  functional  VR  system  

     

  Fig  2.1.2  FAST  Diagram  of  Oculus  Rift  

           

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Create  an  abstract  functional  representation  of  the  new  product     Organize  the  main  goals  and  purpose  of  the  product  with  the   appropriate  components  and  sub  functions    

  Fig  2.1.3  Function  Structure  for  VR  System  

  Create  a  Morph  Matrix      

We  will  use  all  of  the  information  above,  especially  our  function  structure  to  create   our  morphological  matrix.

Solution   Principle  1

Solution   Principle  2

Solution   Principle  3

Solution   Principle  4

Sun  Functions

Audio Speakers Headphones Input Earphones

Processing   Information

AMD Intel NVDIA

Sensors Camera X-­‐ray Heat  sensors

GUI Lens Camera Glass Goggles

Figure  2.1.4  -­‐  Function  Structure  of  VR  System  

     

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We  will  use  our  MM  (morphological  matrix)  above  to  further  analyze  our  matrix. Concept  1  -­‐  

Solution   Principle  1

Solution   Principle  2

Solution   Principle  3

Solution   Principle  4

Sun  Functions

Audio Speakers Headphones Input Earphones

Processing   Information

AMD Intel NVDIA

Sensors Camera X-­‐ray Heat  sensors

GUI Lens Camera Glass Goggles

Figure  2.1.5  -­‐  Concept  1

Figure  2.1.6  -­‐  Concept  1  Flow  Chart

Concept  1  would  have  speakers  as  its  main  audio  input  and  be  hosted  by  AMD.  The   VR  headset  would  be  based  of  AMD  products  and  use  Cameras  and  Lenses  to  sense   the  area  around  it. Concept  2  -­‐

Solution   Principle  1

Solution   Principle  2

Solution   Principle  3

Solution   Principle  4

Sun  Functions

Audio Speakers Headphones Input Earphones

Processing   Information

AMD Intel NVDIA

Sensors Camera X-­‐ray Heat  sensors

GUI Lens Camera Glass Goggles

Figure  2.1.7  -­‐  Concept  2

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Figure  2.1.8  -­‐  Concept  2  Flow  Chart

Our  second  concept  would  have  an  emphasis  on  headphones.  This  sensor  would  use   electrical  engineering  mechanisms  to  be  able  to  sense  what  is  going  on  around  it,   which  then  it  turn  would  control  movement  and  agility  based  off  of  Intel’s  products.   The  laser  it  would  have  use  x-­‐rays  and  cameras  to  scan  the  area  around  it Concept  3  -­‐  

Solution   Principle  1

Solution   Principle  2

Solution   Principle  3

Solution   Principle  4

Sun  Functions

Audio Speakers Headphones Input Earphones

Processing   Information

AMD Intel NVDIA

Sensors Camera X-­‐ray Heat  sensors

GUI Lens Camera Glass Goggles

Figure  2.1.9  -­‐  Concept  3

Figure  2.9.1  -­‐  Concept  3  Flow  Chart

Our  third  concept  will  have  use  input  as  its  main  mechanism  and  be  based  off  of   NVDIA  and  use  heat  sensors  and  glass  to  can  the  area  around  it.            

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Concept  4  -­‐  

Solution   Principle  1

Solution   Principle  2

Solution   Principle  3

Solution   Principle  4

Sun  Functions

Audio Speakers Headphones Input Earphones

Processing   Information

AMD Intel NVDIA

Sensors Camera X-­‐ray Heat  sensors

GUI Lens Camera Glass Goggles

Figure  2.1.1.1  –  Concept  4  

Figure  2.1.1.2  -­‐  Concept  4  Flow  Chart

Last  but  not  least,  this  concept  will  be  a  bit  on  the  heavier  side.  It  will  be  more  heavy   duty,  focusing  on  audio  and  GUI.  It  will  use  sensors  to  detect  where  it  is  going,  and  if   someone  is  near  it.  This  one  will  also  be  very  durable  in  terms  of  battery  life  and   shelf  life.  

    Create  a  utility  function    

Using  mechanisms  that  are  similar  to  those  above,  we  will  use  a  set  of  criteria  in   order  to  analyze  our  results.  The  set  of  criteria  we  will  use  are  -­‐  

• Low  Cost   • Aesthetic  Appeal   • Technically  possible  

Now  that  we  have  our  list  of  criteria,  we  will  weight  them  in  order  to  create  a  utility   function.  

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Criteria Weight

Low  Cost 35%

Aesthetic  Appeal 30%

Technically  Possible 35%

Total 100% Figure  2.1.1.3  -­‐  Weight  of  Criteria  for  VR  Sytem

1. Using  the  utility  function,  determine  the  best  alternative  development  

Criteria Weig ht

Concept  1 Concept  2 Concept  3 Concept  4

Low  Cost .35 5 (5)(.35)   =1.75

6 (6)(.35)   =2.1

7 (7)(.35)   =2.45

3 (3)(.35)   =1.05

Aesthetic   Appeal

.30 5 (5)(.30)=1 .5

7 (7)(.30) =2.1

5 (5)(.30)=1 .5

2 (2)(.30)=. 6

Technical ly   Possible

.35 2 (2)(.35)=. 7

9 (9)(.35)=3. 15

2 (2)(.35)=. 7

8 (8)(.35)=2 .8

Total Utility

1.00 3.95 7.35 4.65 4.45

Figure  2.1.1.4  -­‐  Utility  Analysis  of  VR  System   Select  concept  with  highest  cumulative  utility    

From  Figure  2.1.1.4,  it  is  obvious  that  the  best  alternative  development  is  Concept  4.   We  figured  this  out  by  comparing  the  weight  of  each  criteria,  for  each  concept   against  the  actual  percentage,  and  doing  the  math.  That  has  led  us  to  the  conclusion   that  Concept  2  is  best  for  further  alternative  development.

  (2)  Product  Platform  and  Product  Line  Strategy  

Determine  underlying  elements  of  the  product  platform     Core  Elements:    CPU,  GUI,  and  Sensors   Supporting  Elements:  Battery,  Headphones        

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  Virtual  Reality   Entertainment   System  

Serious  Gamers   − Realistic  VR  experience   − Quick  Performance   − Detailed  visualizations  

Casual  Users   − Not  as  much  emphasis  on   realistic  VR  experience  

− Medium  Performance   − Medium  Graphics  

Professional  Users   − High  performance   − Realistic  Experience  

Figure  2.1.1.5  –  Market  Segments  of  VR  System  

Create  a  product  platform  and  line  

  Figure  2.1.1.6  –  Product  Platforms  and  lines  of  VR  System  

  The  figure  above  is  a  conceptual  sketch  that  depicts  the  product  platforms  and  lines   of  the  VR  system.  There  are  three  market  segments  here,  serious  gamers,  casual   users,  and  professional  users.  The  serious  gamers  are  the  ones  that  are  in  it  to  win  it.   They  take  their  gaming  very  seriously,  which  means  they  purchase  high  quality  

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devices  for  high  prices.  The  casual  users  are  less  serious  and  are  just  in  it  for  the   different  experience.    The  professional  users  also  want  the  real  experience  and  are   willing  to  pay  money  for  it  as  well.

  (3)  FMEA     FMEA  stands  for  failure  modes  and  effects  analysis  and  is  a  way  of  making   sure  if  there  are  any  possible  failures  and  ways  to  prevent  it.     S  =  Severity  of  failure  mode  ranging  1-­‐8  with  8  being  most  severe   O  =  Frequency  of  failure  occurrence  ranging  1-­‐8  with  8  being  most   frequent   D  =  How  easy  it  is  to  detect  failure  ranging  1-­‐8  with  8  being  hardest  to   detect   RPN  =  S*O*D     Subsystem   Failure   S   O   D   RPN   Action   Headphones    Crackled  

hearing   2   3   1   6   Make  sure  connection  

is  good  and  wires  are   collected  

Battery   Frequent   dying  of   battery  

1   6   6   36   Find  components  and   materials  that  last   longer    

Lens   Not  clear   7   3   2   42   Clear  glass   Sensors   Does  not  

sense   1   6   4   24   Strong  algorithms  that  

detect  and  thorough   testing  

CPU   Over   heating  

7   3   4   84   Strong  CPU   components  

  Figure  2.1.1.7  –  FMEA  Table  of  VR  System    

  Most  critical  failure  modes:  

1. The  most  important  and  critical  failure  is  if  the  CPU  overheated  because  the   RPN  of  84,  this  is  obviously  a  safety  issue  and  can  be  avoided  with  strong   components  and  thorough  testing  

2. Unclear  Lenses  is  the  second  critical  failure  mode  because  that  would  defeat   the  purpose  of  hving  a  VR  system,  this  can  be  avoided  with  clear  glass  

3. Third  critical  failure  mode  is  a  battery  that  dies  a  lot.  This  would  not  be  a  fun   product  to  use  and  can  be  avoided  with  strong  components.  

           

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Step  4:  Check  your  work     When  checking  back  over  my  work,  I  do  believe  that  it  is  accurate.  I  used  both  my   knowledge  of    VR  systems    some  assumptions  I  was  able  to  make  off  technology,  as   well  as  the  Internet.    One  great  resource  I  was  able  to  utilize  was   www.howstuffworks.com  to  be  able  to  get  an  even  better  understanding  of  VR   Systems.  I  conclude  that  all  of  my  work,  assumptions,  and  data  make  sense.     Step  5:  Learn  and  Generalize     After  working  through  this  problem,  and  analyzing  the  different  attributes  that   make  a  product  or  service  successful,  both  in  terms  of  customer  needs  and   technicality,  I  have  a  better  understanding  of  how  much  detail  goes  into  the   execution  of  these  products.  It  is  extremely  important  to  match  up  technicality  with   the  viewpoint  of  the  customer,  as  well  as  have  detailed  specifications  and  how  those   specifications  match  up  with  those  of  competitors.  Also,  there  are  different  levels  of   sophistication  and  detail  when  it  comes  to  designing  different  products.  Once  those   specifications  are  clarified,  the  next  step  is  to  simply  determine  which  are  the  best,   and  have  the  most  value.  This  entire  process  is  extremely  detailed  and  strategic.    

                                             

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  3.Financial  Modeling  for  the  Virtual  Reality  Entertainment  System     Step  1:  Define  the  Problem     Model  the  impact  of  unit  sales  price  on  NPV  by  the  end  of  year  4  and  also  –    

− The  minimum  value  of  the  unit  sales  price  for  the  product  that  will  result  in  a   positive  NPV  by  the  end  of  year  4    

− The  trade  off  law  between  NPV  and  unit  sales  price   − Recommendation  for  the  software  giant  charge  to  charge  a  distributor     − Expected  NPV  based  on  rec  

Step  2:  Plan  the  Process    

1. Create  a  project  plan  for  this  problem   2. Review  Excel  Tutorial  Handout   3. Perform  4  year  NPV  analysis     4. Find  minimum  value  for  the  sales  price  that  would  result  in  a  positive  NPV   5. The  trade  off  law  between  NPV  and  unit  sales  price   6. Recommendation  for  the  software  giant  to  charge  per  unit   7. Expected  NPV  based  on  rec  

  Step  3:  Execution     Create  a  project  plan  for  this  problem     Goal   Time  Allocated   Review  Excel  Tutorial  Handout   1  Hour   Perform  4  year  NPV  analysis     2  Hours   Find  minimum  value  for  the  sales  price   that  would  result  in  a  positive  NPV  

1  Hour  

The  trade  off  law  between  NPV  and  unit   sales  price  

1  Hour  

Recommendation  for  the  software  giant   to  charge  per  unit  

1  Hour  

Expected  NPV  based  on  rec   1  Hour   Figure  3.1  –  Project  schedule  and  time  allocation  

               

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Perform  4-­‐year  NPV  analysis    

SCENARIO  INPUT  PARAMETERS   Development  Costs   $35,000,000  /  year   Sales  &  Production  Volume   500,000  units  /  year   Unit  Production  Volume     150  /  unit   Ramp-­‐up  Cost   $500,000  /  quarter   Marketing  &  Support  Cost   $2,500,000  /  year  

Figure  3.2  –  Input  Parameters  for  Financial  Model  as  given  in  handouts    

  Figure  3.3  –  Base  Case  for  4  years  

  Find  minimum  value  for  the  sales  price  that  would  result  in  a  positive  NPV     In  order  to  find  the  minimum  value  of  the  unit  sales  price  for  the  product  that  would   result  in  a  s  positive  NPV,  the  NPV  would  be  set  to  0.  This  value  came  out  to  be   $137.69.     The  trade  off  law  between  NPV  and  unit  sales  price    

  Figure  3.4  –  10%  Sensitivity  Analysis  

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  Figure  3.5  –(-­‐  10%  )  Sensitivity  Analysis  

  Figure  3.6  –  20%  Sensitivity  Analysis  

   Figure  3.7  –(  20%)  Sensitivity  Analysis  

 

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Figure  3.8  –  30%  Sensitivity  Analysis

  Figure  3.9  –(-­‐  30%  )  Sensitivity  Analysis  

         

Base  Unit  Sales   Price  

Change  in  Price   Unit  Sale  Price   Change  in  Unit   Sale  Price  

137.69   30%   105.9   44,500   137.69   20%   114.7   29,673   137.69   10%   125.17   14,896   137.69   0%   137.69   -­‐   137.69   -­‐10%   153   -­‐14,896   137.69   -­‐20%   174.1   -­‐29,673   137.69   -­‐30%   197.7   -­‐44,500  

Figure  3.1.1  –  Unit  Sales  Price  Summary  Sheet    

Figure  3.1.2  –  NPV  vs  Change  in  Unit  Price    

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The  trade  off  law  in  terms  of  the  Net  Present  Value  and  the  Change  in  Unit  price  is   $14,235,000  change  in  NPV  per  unit  price  

  Recommendation  for  the  software  giant  to  charge  per  unit     With  retrospect  to  my  expertise  in  the  field,  and  my  analysis  above  my   recommendation  would  be  to  have  the  price  be  around  $350.  This  is  because  the  VR   entertainment  system  is  still  a  bit  of  a  new  technology,  and  an  idea  people  are  still   getting  used  to.  Only  the  professional  and  serious  gamers  would  be  interested  in   purchasing  super  expensive  systems,  and  since  this  market  is  not  very  big  it  is   important  to  keep  the  price  not  to  high,  but  also  not  too  low  so  we  are  able  to  make  a   solid  profit.     Expected  NPV  based  on  rec  

  SCENARIO  INPUT  PARAMETERS  

Development  Costs   $35,000,000  /  year   Sales  &  Production  Volume   500,000  units  /  year   Unit  Production  Volume     350  /  unit   Ramp-­‐up  Cost   $500,000  /  quarter   Marketing  &  Support  Cost   $2,500,000  /  year  

Figure  3.1.3  –  Input  Parameters  for  Recommendation     Using  the  scenario  input  parameters  above,  the  expected  NPV    of  four  years  of  my   professional  recommendation  is  $  187,639,000.       Step  4:  Check  your  work     Given  the  research  that  I  have  done  and  the  things  that  I  know  as  well  as  the  lecture   and  previous  homework  I  have  successfully  completed,  I  believe  that  my  results  and   conclusions  are  accurate.  I  have  double-­‐checked  my  math  and  re  read  the  tutorial  to   ensure  my  understanding.     Step  5:  Learn  and  Generalize     Completing  a  complex  and  detailed  problem  like  this  always  reminds  me  of  the   detailed  process  in  deciding  unit  prices,  and  how  thoroughly  a  slight  change  can   affect  a  company  or  entity.  There  is  much  thought  and  work  that  goes  into  these   decisions,  as  any  move  or  change  in  price  can  have  a  huge  impact  on  the  company.              

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4. Information  Technology  for  Product  Design  and   Development  

  Step  1:  Define  the  Problem     Develop  your  own  Product  Design  and  Development  Framework  based  on  the   appropriate  modification  of  the  MDC  framework  as  well  as  your  own  IT  system  to   automate  the  stages  in  that  framework  in  the  development  of  the  VR  system.     Step  2:  Plan  the  Process     1. Create  schedule  for  this  project   2. Read  MDC  framework  handout   3. Adjust  framework  to  integrate  with  my  product  appropriately   4. Design  IT  system     Step  3:  Execution     Create  schedule  for  this  project     Goal   Time  Allocated   Read  MDC  framework  handout   1.5  Hours   Adjust  framework  to  integrate  with  my   product  appropriately    

2  Hours  

Design  IT  system    

2  Hours  

Figure  4.1  –  Problem  Schedule      

Adjust  framework  to  integrate  with  my  product  appropriately    

M  =  Management   Perform  Concurrently  

1. Firm-level Strategy- analyzes the industry and then establishes overall marketing, competitive and technology strategy. 2. Business Goals- Determine business goals of company in terms of ROI, Market Share, Revenue, and Growth. 3. Developmental Goals- Align Development goals with strategies 4. Functional Maps- Create functional maps to visualize the evolution of the company in terms of different aspects such as strategies and product releases in order to visualize the goals even better 5. Project Planning- Establish a cross-functional team for each technology/ Product development project and create Gantt, PERT, and activity matrices.  

 

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D  =  Development   Engineer  Concurrently  

  1. Reverse Engineering- Dissection of existing products that are similar to the Proposed new product using FAST diagrams 2. Quality Function Deployment- Develop a comprehensive House of Quality (HOQ) to correlate customer needs to technical metrics and specifications in order to better understand how to create this product 3. Conceptual Design- Create a function structure for the product as well as a morphological matrix to generate different iterations and concepts, and then use these concepts to create a utility function. After, weight each option and choose the one with the most utility. 4. Prototyping Strategy- Develop an actual prototype of your product based on all of the information above. 5. Product Architecture/Product Strategy-Establish the technology platform And product platform within the appropriate market segments. 6. FMEA-Perform a failure modes and effects analysis (FMEA) of the detailed Design in order to analyze the different possible failures and the dangers of them as well as ways to avoid them.  

  C  =  Commercialization  

  Financial  Model  Analysis-­‐Using  excel,  create  a  base  case  npv  financial  model  in   order  to  determine  payoffs  from  the  development  projects.  Use  this  analysis  to  also   analyze  cash  flow,  and  determine  how  sensitive  your  numbers  are  to  a  10,20  &  30%   change.     Design  IT  system     An  IT  System  that  would  integrate  and  automate  the  steps  above  is  one  that  would   save  a  lot  of  time,  simply.  A  system  that  would  be  able  to  automate  the  financial   model  in  order  to  make  it  simple  and  quicker  would  be  most  efficient  where  the   user  would  just  have  to  input  parameters  and  then  would  be  able  to  view  the  results   instantly.  A  tool  that  can  automate  this  is  a  program  or  software  of  some  sort  that   uses  algorithm  and  code  in  order  to  quickly  analyze  data  and  spit  out  the  results,   rather  than  manually  entering  in  all  data  into  excel.     Step  4:  Check  your  work     I  believe  my  work  is  correct  because  I  used  the  MDC  Framework  handout  as  well  as   the  discussions  and  notes  in  class  and  my  previous  homeowork.    

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Step  5:  Learn  and  Generalize     Going  through  the  MDC  framework  reminds  me  exactly  how  much  work  goes  into   creating  a  successful  product  or  system.  This  is  mind  blowing  to  me,  as  this   framework  only  covers  these  things  on  a  very  high  level,  and  in  reality  it  is  actually   much  more  detailed  and  tedious  to  come  up  with  products  that  are  going  to  be   successful  in  the  competitive  technology  market  that  exists  today.  I  also  am   reminded  of  how  IT  is  best  when  it  is  used  to  make  our  lives  easier  and  more   efficient.                                                                

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  5. Conclusion  

  Step  1:  Define  the  Problem     Explain  key  lessons  and  examples  that  you  have  learned  throughout  the  quarter.     Step  2:  Plan  the  Process     1. Create  a  schedule  for  this  problem   2. Review  homework,  lecture  notes  and  discussions,  as  well  as  the  group  project   3. Pick  a  few  key  lessons  as  well  as  examples  that  have  stood  out  the  most  

throughout  the  quarter.     Step  3:  Execution     Create  a  schedule  for  this  problem     Goal   Time  Allocated   Review  homework,  lecture  notes  and   discussions,  as  well  as  the  group  project  

20  Min  

Pick  a  few  key  lessons  as  well  as   examples  that  have  stood  out  the  most   throughout  the  quarter.  

1  Hour  

Figure  5.1  –  Problem  #5  Schedule     Pick  a  few  key  lessons  as  well  as  examples  that  have  stood  out  the  most  throughout   the  quarter.      

  Conclusion  

Key  Lessons   Examples   “Development”   in  FDC   Framework  

One  thing  that  really  stood  out  to  me  this  quarter   and  I  believe  that  I  will  carry  with  me,  is  the   detailed  analysis  we  did  on  the  development  of   products.  There  have  been  multiple  occasions   where  I  have  seen  this  framework  out  of  school,   and  the  fact  that  it  is  so  applicable  is  very   fascinating.  An  example  is  that  I  recently  had  an   interview  with  Accenture,  and  IT  Consulting   company.  A  portion  of  the  multi-­‐step  interview   was  a  case  study,  where  I  was  instructed  to  utilize   what  I  had  learned  in  defining  customer  and   technical  needs  and  being  able  to  rank  the   importance  and  urgency  of  those  in  order  to  

    Tarum  Fraz   TIM  105  

  Fall  16’  

  31  

successful  tend  to  the  main  issue  within  the  case   study.  Another  time  I  have  seen  this  framework   outside  of  class  is  when  I  chatted  with  an   executive  from  Plantronics,  which  is  where  I   currently  work.  This  was  the  VP  of  consumer   solutions,  and  he  chatted  to  me  about  product   management,  and  being  able  to  translate  customer   needs  into  technical  measurements,  which  was   essentially  the  HOQ  model.  

Team  work   A  skill  that  was  utilized  during  this  quarter  was   my  collaboration  skills.  I  enjoyed  working  with  my   group  in  order  to  develop  a  product.  I  was  able  to   talk  about  the  experiences  I  had  within  the  group   during  many  of  the  company  interviews  I  had  this   quarter.  

SPS   Last  but  not  least,  I  was  introduced  to  structure   problem  solving.  This  was  great  because  I  am  now   able  to  tackle  complex  problems  in  a  detailed  way,   which  is  a  very  impressive  skill  that  employers   love  to  see.  I  enjoy  answering  all  of  my  questions   using  SPS.  

Figure  5.2  –  Conclusions       Step  4:  Check  your  work     This  question  is  more  qualitative,  and  based  on  my  experiences,  so  I  believe  my   work  is  correct  as  I  am  the  one  with  this  perspective  on  they  key  lessons  I  have   learned.     Step  5:  Learn  and  Generalize     There  are  many  things  I  learned  this  quarter,  and  this  class  made  me  glad  I  chose  to   be  a  TIM  major.  Although  this  class  was  a  lot  of  work,  there  were  many  real  life  tools   I  learned  that  I  am  able  to  apply  to  many  things.    The  detailed  ways  that  companies   attack  complex  problems  is  an  important  understanding  to  have,  and  I  have  seen   first  hand  how  valuable  this  information  makes  us  Millennials  valuable  to  Silicon   Valley.  I  look  forward  to  expanding  this  knowledge  and  becoming  even  more   valuable  after  TIM  125.