Lamp Project 2009 Team 6 May 26, 2009 Sabina Ma Carl Rosenau Lorelyn Shannon Bruce Williams Dontay Young Daud Zoss

Agenda Deciding on a Product The Product Business Value Project Management Personal Takeaways

Deciding on a Product Our Mission Product Choices Product Selection

Our Mission Develop a product deliverable (not necessarily managed) by science/engineering student Student income of ~$200/month Product makes use of science/engineering principles

Product Choices Started with two concepts Started with two concepts Web-based shopping list with printable store map Web-based shopping list with printable store map Science/engineering-based party service for kids Science/engineering-based party service for kids Broke into two teams, each researching one idea Broke into two teams, each researching one idea Create simple prototype Create simple prototype Analyzed markets for each Analyzed markets for each

Web-based Shopping Map Concept was easy to prototype and expand Concept was easy to prototype and expand Figuring out target market was difficult Figuring out target market was difficult Who pays for service (stores, consumer, coupons)? Who pays for service (stores, consumer, coupons)? Difficult to determine profitability/student income Difficult to determine profitability/student income

Science/Engineering Party Product design more open-ended Product design more open-ended Market research was more feasible Market research was more feasible Half of team have kids near potential target market age Half of team have kids near potential target market age Easier to determine who pays (and who would want to pay) Easier to determine who pays (and who would want to pay) Parent/kid value proposition easy to explain Parent/kid value proposition easy to explain

Product Selection Engineering/Science party service Engineering/Science party service Target ages – 6 to 12 Target ages – 6 to 12 Number of participants – 6 to 14 Number of participants – 6 to 14

The Product Description Product Market Test and Feedback Product Improvements Promotional Methods Production and Delivery

Smartie Party™ Educational entertainment party service for kids Educational entertainment party service for kids Children learn basic science and engineering principles through interactive game challenges Children learn basic science and engineering principles through interactive game challenges Delivered and facilitated by energetic and friendly service reps Delivered and facilitated by energetic and friendly service reps No two parties are alike Client’s customize their service

Smartie Party™ Challenges Shake, Rattle, and Build™ Shake, Rattle, and Build™ Civil engineering Civil engineering Abe Lincoln’s Penny Floaters™ Abe Lincoln’s Penny Floaters™ Buoyancy Buoyancy Weight distribution Weight distribution

Running Smartie Party™ Promotional Methods Internet website, Fliers, Brochures, Referrals Internet website, Fliers, Brochures, Referrals Product development Design all challenges Design all challenges Production Production Material Purchase/Kitting Material Purchase/Kitting Sales management Sales management Consultation, appointments, etc. Consultation, appointments, etc. Delivery Delivery Human Resources Human Resources Recruitment and training Recruitment and training Payroll Payroll

Market Test Feedback and Observations Customer Feedback Good presentation of engineering concepts Kids enjoyed themselves Kids liked goodie bags Kids didn’t quite digest engineering principles Team Observations Setup requirements not originally foreseen Managing kids' attention spans

Product Improvements Enhance product Enhance product Include prizes, goodie bags (additional cost) Include prizes, goodie bags (additional cost) Add visual aids Add visual aids Design more challenges Design more challenges Accommodate children with disabilities Accommodate children with disabilities Provide special challenges where kids can partner up with parents Provide special challenges where kids can partner up with parents Expand target market Expand target market Team building sessions Team building sessions Franchising Franchising Expand into other geographies Expand into other geographies

Operational Improvements Online sales management system Customize service online Book appointments online Area customer service reps Saves cost on gas and travel time Sales reps Interface with larger, more lucrative clients Earn commissions

Business Value Market Analysis Market Research Value Proposition Financial Data

Kids Upper-Mid or Higher Income San Diego North County (92127 Zipcode) Country Squires Kids & Cul de sacs Upward Bound Winner’s Circle Market Analysis

Market Research Studied similar ventures found in online searches Studied similar ventures found in online searches Interviewed audience in target market Interviewed audience in target market Research at two children‘s birthday parties Research at two children‘s birthday parties Developed high level service requirements Developed high level service requirements

Educational, hands-on, creative entertainment Safe Hassle-free Low cost No two parties are alike Smartie Party™ Value Proposition

Cumulative Payback

$150 is our sweet spot 1 Year ROI vs. Unit Cost

Recommended Pricing Our price Our price Smartie Party™ - $150 Smartie Party™ - $150 Direct competitors’ prices Direct competitors’ prices Mad Science™ - $195 Mad Science™ - $195 Play Well TEKnologies™ - $275 Play Well TEKnologies™ - $275 Indirect competitors’ prices Indirect competitors’ prices Color Me Mine™ - $280 Color Me Mine™ - $280 Captain Cook’s Culinary Academy for Kids ™ - $ 390 Captain Cook’s Culinary Academy for Kids ™ - $ 390

Projected Operating Cash Flow

NPV Summary and Assumptions NPV Summary Initial Outlay5065 Operating Cash Flow Disbursement Proceeds 0 NPV35327 IRR51% Year 1 ROI:0.080 Assumptions Sale Price150 per unit Bad Debt Expense Factor1% of gross revenues Purchases and Payments Unit Cost per unit Rent0 per month General & Administrative0 per month Sales & Commission 0% of total sales, paid month following sale General Assumptions Capital Investment Required 5,065 Tax Rate35% Discount Rate8%

Project Management Actual vs. Planned Schedule Actual vs. Planned Materials Cost Project Challenges and Resolutions

High Level WBS Planned vs. Actual Schedule

Detail Plan in MS Project Planned vs. Actual Schedule

Planned vs. Actual Materials Cost

Project Challenges and Resolutions Interpersonal Communication Interpersonal Communication WikiSpace (challenge and benefit) WikiSpace (challenge and benefit) Product vs. Process Product vs. Process Task ownership Task ownership Class project assignment unclear Class project assignment unclear Balancing family, work, and LAMP Balancing family, work, and LAMP Market test logistics Market test logistics Inconvenient assignment due dates  Inconvenient assignment due dates  Keeping Bruce happy Keeping Bruce happy

Personal Takeaways Lessons Learned Leadership and Management Principles Applied Topics of Interest

Lessons Learned “When asked to build a prototype, remind yourself that it is just a prototype.” – Lorelyn “When asked to build a prototype, remind yourself that it is just a prototype.” – Lorelyn “Sometimes it’s good to just let some things go and trust others to do a good job.” – Bruce “Sometimes it’s good to just let some things go and trust others to do a good job.” – Bruce “Encouragement and appreciation are a must to help foster a team environment.” – Sabina “Encouragement and appreciation are a must to help foster a team environment.” – Sabina “Assign roles and responsibilities up front to help streamline projects.” – Dontay “Assign roles and responsibilities up front to help streamline projects.” – Dontay “Patience is a virtue. Take the time to understand who you work with.” – Carl “Patience is a virtue. Take the time to understand who you work with.” – Carl “Nothing works like a demonstration.” – Daud “Nothing works like a demonstration.” – Daud

Leadership and Management Principles Applied New Product Development – the IDEO Deep Dive New Product Development – the IDEO Deep Dive Financial Success Financial Success Project Management Project Management DISC Management Styles DISC Management Styles Effective Presentations Effective Presentations Market Positioning and Targeting Market Positioning and Targeting Performance Management Performance Management

Topics of Interests For Continued and Future Development For Continued and Future Development Effective communication Effective communication Conflict Resolution Conflict Resolution Coaching and Mentoring Coaching and Mentoring Team and Cross Functional Collaboration Team and Cross Functional Collaboration Servant Leadership Servant Leadership Agile and LEAN principles Agile and LEAN principles

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Questions?