Create an Innovation (Benchmark Assignment)
Maree29
CLC.GroupB.ENT435.Phase2.docxRunning head: PHASE 2 1
PHASE 1 16
GenY Xploit Implementation Plan
Ken Wiechert
Robert Varela
Lakisha Trammel
Grand Canyon University: ENT-435
06/9/2019
GenY Xploit Implementation Plan
Innovation is a team activity that involves the intersection of different fields, bringing together diverse ideas, abilities, and/or methods that result in a physical product, a process, or a service that impacts society in a timely manner (National Academy of Engineering, 2015). It is imperative to influence innovation in an organization to stay in existence with other competitors. Before Team B can embrace the final phase of implementing a plan that will captivate the audience buy-in power there are two other phases that need to take place. Phase 1 has already been established and that is to purpose several innovative ideas to nominate for our new product along with a description of the models used to circulate an extensive evaluation of each product. Team B evaluated several innovation ideas mainly using the NOMMAR model which evaluated the customer needs, technology options, potential market, business model, realistic approach, and the relevancy (Miller Competition Series, n.d.). Phase 2 will finalize the name of a product, provide a description of the GenY Xploit gaming console, what value will it provide to our customer needs, utilizing the NOMMAR model a detailed implementation plane that that will include contingency, risks, budget, time frame, target market and visuals to increase readability and professional exploits.
GenY Xploit Gaming Console
Team B unanimously nominated the GenY Xploit gaming console for our new product. Introducing the new GenY Xploit gaming console into the market arena will give gamers a whole new jolt of gaming experience. The gaming console will introduce a unique design of software compatibility that will allow gamers to perform cross-platform gaming to compete with each other online no matter what gaming console they are using.
According to Karlsson, & Nystrom (2003), “The introduction of a new product on the market can basically be made in two different ways. A product can be either totally new to the market or it can be the result of a major change in an existing product” (p 136). The Gen Y Xploit is totally a new gaming console product that has the potential to revolutionize the gaming industry all over the world. Team B is excited and ready to establish this new gaming console to the gaming community world which we feel is hungry and ready for a new gaming console to take center stage. If that is not enough, we are confident that GenY Xploit will fulfill all their desires and needs for centuries to come. Presently, the latest marketing model for the gaming industry consists between two competitors, Microsoft Xbox One X and the Sony PlayStation 4 (PS4), even though the Nintendo Switch is a gaming system they are not equally comparable. It is time to beef up the competition and incorporate another gaming console that will redefine technology innovations of gaming industries all over the world. We believe the gaming community throughout the globe is ready for a new gaming system like our Gen Y Xploit to enter this field that has been dominated by so few for so long.
The hardware capabilities are equal to the Xbox One X and PS4, duplicating the 4K resolutions and push games at sixty frames per second, GenY Xploit will boost larger capacity for resolution with higher Ram and more processing power (Wiechert, 2019)
The gaming console will also come equipped with USB and Bluetooth software capabilities to be compatible with other gaming accessories, for instance, the HP’s sequencer optical keyboard, the new reactor mouse and the upcoming Mindframe headset, (MAH UNG, 2018). GenY Xploit will also promote a Bluetooth racing style gaming chair called the Arbitrator that is designed to give every gamer an exhilarating experience. Arbitrator offers; consumer choice of upholstery and color; new technology recovery XgelT cushions that will ergonomically retain your head, neck, back and legs for those long gaming hours; adjustable headrest that includes a built-in and releases high-tech tranquil élite wireless surround sound headphones combined with adjustable dual microphone system; and a high revolutionary jolting system for a theatrical thrilling experience (Wiechert, 2019). The GenY Xploit combined with the high-tech Bluetooth racing style gaming chair will enable the most advanced technology and power that a gamer will ever need to gain respect from other gamers that simply cannot compete.
Implementation Plan
Team B has set a realistic moderate goal for the implementation of our plan to ensure we get the new Gen Y Xploit gaming console right. We have made sure that we have considered a realistic time frame while implementing our product, any budgeting constraints that we may face and have accounted for any contingencies or risks that may arise throughout this process. Our implementation plan is key to the introduction of our new Gen Y Xploit gaming system as well as the NOMMAR model we have chosen for the success of our invention.
NOMMAR Model
Team B had already chosen to use the NOMMAR model to implement GenY Xploit from Phase 1. Yet, we wanted to be open to exhaust other options before making the final decision. The only other option evaluated was product development that is based around R&D innovation reasoning’s such as understanding customer needs through Mental Imagery is a “mental simulation process that involves imagining an end user interacting with an end product, has been proposed as an efficient strategy to incorporate end-user experiences during new product ideation” (Herd and Mehta, 2019, p 36), improving product and competitive advantages all in which could be utilized to implement our new product GenY Xploit. Nevertheless, the NOMMAR model still made sense as being the one that will work best to utilize for this new innovation. The NOMMAR model uses six questions that can help ensure any innovative product or method will have the potential to make it through its beginning process stages all the way through to the final stage of completion (Terwilliger, 2011). The following is an example of the NOMMAR model that consists of the six questions including the correspondents of the GenY Xploit,
1. Customer Needs - Gamers from all over the world are ready for GenY Xploit Cross-Platform gaming system.
2. Technology Options - GenY Xploit has far more advanced technology than the Microsoft Xbox One X and the Sony PS4 combined.
3. Potential Market – Gamers from all over the world
4. Business Model – Establishes an attractive Return on Investments (ROI) for our investors,
5. Realistic Approach that consists of Three R’s;
a. Resources – Organizing alliances with Contact Manufactures, Microsoft and Sony
b. Risk – Convincing investors to fund a new gaming console that is not yet a giant in the gaming industry.
c. Resistance – IP protection
Gen Y Xploit gaming system has the answers to all of these questions and with confidence can fulfill any other questions our investors may have.
The Targeted Market
With GenY Xploit targeting gamers from all over the world of all ages that completely indulges in their desires and wants with the cross-platform gaming system that has a unique design of software compatibility that no other competitor such as Xbox One X and PS4 gaming console can produce or provide. Team B feels that there is no better time than now to take advantage of the market with the GenY Xploit gaming console. The two graph charts below provided from Digi-Capital shows good indication toward a steady trend of the continued growth within the next three years for all types of gaming systems (Merel, 2018). If these trends hold true for the next three years attacking the market now with our GenY Xploit the gaming console will not only be able to generate immediate success but promises a brilliant new exciting future for our investors in the gaming world industry. Anytime you enabling gamers across the globe to perform an unlimited variety of competing games with one another online anytime from anywhere in the world is a sure sign of success.
.
Milestones
Budget
The budget for GenY Xploit gaming system we know will be steep, anytime you designed and manufacture a new product especially in the gaming industry it requires a lot of upfront costs. The cost for creating the PlayStation 3 gaming system ranged anywhere from $18.8 to $28.2 million dollars and these expenses were just hitting the service in the developmental and marketing stages of the Sony’s PlayStation 3 (Agnello, 2013). Since then the costs of innovation in the gaming industry market had gone up considerably, it would be safe to assume that our budget for the GenY Xploit will be more than double that amount to approximately $65 million dollars in 2019 in order to develop and advertise our new GenY Xploit gaming system. Because of the price escalation and with the budgeting constraints for this gaming system it would make sense to collaborate with a Contract Manufacturing (CM) firm for the reason of lower cost and speed marketing. They are also used as an
aid to decision making and concerns the manufacture, selling, and distribution of products with the goal of reducing costs and increasing profits. It considers factors such as the available labor force, location of the firm, export market potential, and use of resources. (Industrial market research, 2007, par. 1)
There are many CM firms around the globe that already have the manufacturing capabilities, technology and hardware to produce gaming consoles that other competitive company’s like Microsoft and Sony already use. Which only makes good business sense to negotiate a contract with a CM firm to produce the GenY Xploit.
Time Frame
For the most part to innovate these highly complex gaming systems it can be very time consuming and very costly that often times determines the success of a new company that is trying to find a way in the gaming industry. Our time frame is very tight if we want to take advantage of a speed market. We will have to kick starting the process, the efforts in designing the system, fitting it all into place, keeping the operating system cool, putting it all together, putting the finishing touches on the console and finally marketing the gaming console heavily to the masses (Nelson, 2017). To ensure we will be able to be competitive with our competitors we will be looking at an aggressive year and a half time frame to get our product out into the gaming market as soon as possible. This is another reason why it makes sense to collaborate with a CM firm because this is what they do. This will allow our Original Equipment Manufacturer (OEM) business to focus more on R&D efforts in the designing and innovation process so that we can stay a head of the game and not fall behind the competition, rather than focusing on manufacturing and marketing endeavors.
Potential Risks
With any new product there is always going to be a risk and for the GenY Xploit gaming system it will be no different. One of the biggest risks we will have is finding investors that are willing to put up this kind of funding for a gaming system that is new to the market. We will have to use every resource we have that can help us bring in the investors we need to ensure our gaming system to the masses. The other potential risk our group might face is name recognition for the GenY Xploit gaming system. This is when Intellectual Property (IP) firms will have to be involved so the name can be reserved. Intellectual property is traditionally comprised of “four categories: patent, copyright, trademark, and trade secrets” (Intellectual property, n.d. par. 1). This will have to be in place before becoming alliances with any outside companies such as CM firms, Microsoft and Sony. Lastly, if Sony and Microsoft cannot reach an agreement with GenY Xploit to enable gamers to perform cross-platform gaming on their gaming console.
Contingencies
With all new products, there will always be some type of risk or reward. With GenY Xploit gaming system it will be no different and if there are any issues, we must have a contingency plan in place to address them immediately. We will also to have a contingency plan in place to protect our product from a downturn in the market within these first two years of development. We will also have to be proactive in ensuring our budget will last us this year and a half from cradle to grave. If there is any deviation on our budget, we must also have a plan in place to aggressively go after more investors. Finally, we are including an implementation milestone chart below that will show what steps we intend to take to ensure the implementation of our products will be a success for Team B.
Team B’s Implementation Milestones Chart
Like all great organizations, there must be some type of structure in place and with Team B’s GenY Xploit gaming console we are no different because we use a flatter organizational chart to explain our decision-making process. Unlike most traditional organizations who have a top-down hierarchy that will normally have a one-way communication with one person at the top with all the information and power (Morgan, 2015). We believe a flatter organizational structure tends to open up a larger variety of both communication and collaboration lines while removing the bureaucratic layers that sometimes lie within the most organization (Morgan, 2015). Leadership can make or break an innovative structure and incorporating a good support system to captivate innovation is critical for the future of an organization.
An effective innovation process architecture is the foundation on which to build for innovation-led growth. This clear, top-down, leadership establishes the framework for delivering effective innovation management – product planning, innovation portfolio management, new product development (NPD), and the complete lifecycle of ideation and product obsolescence. (Establishing an effective innovation process architecture, 2018, par. 1)
Cultivating innovation cultures in an organization are not only about teaching your hierarchy’s knowledge of how to innovate but everyone in the organization including first-line employees as well (Wiechert, 2019)
Team B’s Flatter Organizational Chart
Sales Forecast Table:
The sales forecast table for our GenY Xploit gaming system shows a reasonable amount of growth for the first three years. We do believe our gaming system will see a steady 35% increase in sales each year along with our very low one-year subscription price of $45.00 dollars a year to our Gen Y Xploit gaming store. With that said and with the higher costs of doing business we also believe that by pursuing an organizational alliance with companies like Microsoft and Sony could be very beneficial to our company. We feel these alliances could provide us with the name recognition that can allow a new company like ours to sustain these predicted yearly net profits that we are forecasting in our sales table below. With that said we do understand our budget constraints will be tight for the first year, but after the first year, the numbers look very promising for the next three years if our projections are accurate and hold true.
Team B’s Sales Forecast Table
|
Predicted Sales Forecast for Four Years |
Year 1 2020 |
Year 2 2021 |
Year 3 2022 |
Year 4 2023 |
|
Unit Sales Predicting a 35% increase each year |
175,000 Game Consoles Sold |
236,250 Game Consoles Sold |
318,938 Game Consoles Sold |
430,566 Game Consoles Sold |
|
Price Per GenY Xploit gaming system $499 |
$87,325,000.00 |
$117,888,750.00 |
$159,150,062.00 |
$214,852,434.00 |
|
One Year Subscription to Gen Y Xploit Gaming Store $45.00 |
$7,875,000. |
$10,631,250.00 |
$14,352,210.00 |
$19,375,470.00 |
|
Total Sales |
$95,200,000.00 |
$128,520,000.00 |
$173,502,272.00 |
$234,227,904.00 |
|
Overhead Costs |
Year 1 2020 |
Year 2 2021 |
Year 3 2022 |
Year 4 2023 |
|
Total Sales |
$95,200,000.00 |
$128,520,000.00 |
$173,502,272.00 |
$234,227,904.00 |
|
Companies Payroll 5% increase each year |
$16,000,000.00 |
$16,800,000.00 |
$17,640,000.00 |
$18,522,000.00 |
|
Materials Cost with 3% increase each year for inflation |
$10,000,000.00 |
$10,300,000.00 |
$10,609,000.00 |
$10,927,270.00 |
|
Marketing and Sales 3% increase each year |
$3,000,000.00 |
$3,090,000.00 |
$3,182,700.00 |
$3,278,181.00 |
|
Remaining Investment Costs to increase 4% each year for utilities machinery etc. |
$36,000,000.00 |
$37,440,000.00 |
$38,937,600.00 |
$40,495,104.00 |
|
Total Net Profit |
$30,200,000.00 |
$60,890,000.00 |
$120,755,332.00 |
$161,005,349.00 |
Conclusion
In Phase 2 the Team B finalized the name of our product, provide a description of the GenY Xploit gaming console, described what value it will provide to our customer needs, utilized the NOMMAR model, it included a detailed implementation plane that that will covered contingency, risks, budget, time frame, target market and provided visuals to increase readability and professional exploits. GenY Xploit is a new gaming console that introduces a whole new gaming experience that will allow gamers to perform cross-platform gaming and we are confident that GenY Xploit will fulfill all their desires and needs for centuries to come. Even though Nintendo Switch is a gaming system they are not equally comparable to GenY Xploit competitors of the Microsoft Xbox One X and the Sony PlayStation 4 (PS4). The GenY Xploit hardware is equal to Xbox One X and PS4 with 4K resolution and pushes games at sixty frames per second it will come equipped with USB and Bluetooth software capabilities that will give the gamers an unlimited selection of accessories to use including the GenY Xploit Bluetooth racing style gaming chair called the Arbitrator. The implantation plan is to ensure we get the GenY Xploit gaming console right. This includes using the NOMMAR model as our best option to utilize the process stages all the way through the final stage of completion. The prime market target is gamers from all over the world. Team B feels there is no better time than now to take advantage of the gaming market. The Digi-Capital graph charts show a steady trend of the continued growth within the next three years which will show signs of immediate success for our investors to grasp. Comparing with 2013 data against PS3 the predicted budget for the GenY Xploit is presently set at $65 million dollars. Collaborating with a CM firm to manufacture the GenY Xploit will help keep the cost down and speed up the market, this will also allow us to remain focused on R&D efforts to enable growth in competition. Competitors like Microsoft and Sony already use CM firms which make good business sense to collaborate with a CM firm. The time frame to innovate a new product can be very time consuming and costly that often times determines the success of a new company that is trying to find a way in the gaming industry. To ensure we will be able to be competitive with our competitors we will be looking at an aggressive year and a half time frame to get our product out into the gaming market as soon as possible. This is another reason we need to collaborate with CM firm because this is what they do. The potential risks are finding investors that are willing to put up this kind of funding for a gaming system that is new to the market, the name recognition for the GenY Xploit gaming and there are concerns that Sony and Microsoft will not collaborate with GenY Xploit to allow cross-platform gaming, in any event, that this is the situation that there will continue endeavors in arranging an agreement. Using a flattering organizational structure will open up a larger variety of communication at the same time removing bureaucratic layers that sometimes lie within most organization. The sales forecast table for our GenY Xploit gaming system shows a reasonable amount of growth for the first three years. With creating organizational alliances with or competitors Microsoft and Sony and collaborating with a CM firm the future looks promising for the GenY Exploit gaming console.
Reference
Agnello, A. J. (2013). New tech is great but how much will it cost to make a PlayStation 4 game?. Retrieved from https://www.digitaltrends.com/gaming/new-tech-is-great-but-how-much-will-it-cost-to-make-a-playstation-4-game/
Establishing an effective innovation process architecture. (2018). Retrieved from https://www.sopheon.com/establishing-an-effective-innovation-process-architecture/
Herd, K. B., & Mehta, R. (2019). Head versus Heart: The Effect of Objective versus Feelings-Based Mental Imagery on New Product Creativity. Journal of Consumer Research, 46(1), 36–52. https://doi-org.lopes.idm.oclc.org/10.1093/jcr/ucy058
Industrial market research. (2007). Bloomsbury Business Library - Business & Management Dictionary, 3856. Retrieved from https://lopes.idm.oclc.org/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=26741699&site=eds-live&scope=site
Intellectual Property. (n.d.). Retrieved from https://www.law.cornell.edu/wex/intellectual_property
MAH UNG, G. (2018). HP’s self-cooling Mindframe headset leads a new pack of high-end gaming accessories. PCWorld, 36(7), 22–24. Retrieved from https://lopes.idm.oclc.org/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=ehh&AN=130246901&site=eds-live&scope=site
Merel, T. (February 7, 2018). Reports. Retrieved from https://www.digi-capital.com/reports/
Miller Competition Series. (n.d.). Innovation workshop series. In Ideation - Miller competition series. Retrieved from http://miller.byu.edu/wp-content/uploads/2015/09/Workshop-1-Ideation.pdf
Morgan, J. (2015). The 5 Types Of Organizational Structures: Part 2, 'Flatter' Organizations. Retrieved from https://www.forbes.com/sites/jacobmorgan/2015/07/08/the-5-types-of-organizational-structures-part-2-flatter-organizations/#38f61c016dac
National Academy of Engineering. 2015. "3 What Is Innovation?”. In Educate to Innovate: Factors That Influence Innovation: Based on Input from Innovators and Stakeholders. Washington, DC: The National Academies Press. doi: 10.17226/21698.
Nelson, M. (2017). Xbox One X: What It Takes to Build a Console. Retrieved from
https://news.xbox.com/en-us/2017/10/05/xbox-one-x-what-it-takes-to-build-a-console/
Terwilliger, J. (April 5, 2011). Two models for evaluating early innovation. Retrieved from
Wiechert, K. (2019). KJW Marketing Firm. Unpublished manuscript, Department of Business, Grand Canyon University, Phoenix, AZ.
Wiechert, K. (2019). Marketing GenY Xploit Gaming Console. Unpublished manuscript, Department of Business, Grand Canyon University, Phoenix, AZ., 1-7.
Wiechert, K. (2019). Innovation Architectural Interview . Unpublished manuscript, Department of Business, Grand Canyon University, Phoenix, AZ., 1-7.
Gen Y Xploit Gaming Systems Marketing and Sales Teams
Gen Y Xploit Gaming System Design Team
Ken Wiechert
Robert Varela
Manufacturing
Lakisha Trammel
