#serv421 fall2014

SCAD HIREWIRE

Last week, the presentation for the main project Molly and I have been working on this quarter, was due. The brief for the project was to create a business plan for an innovative service. After analyzing two markets (grocery stores and fast casual restaurants) of the food industry, we identified opportunities for a new business, with innovation and trend research but also an in depth SWOT analysis, and strategy canvases (from the Blue Ocean Strategy). Even though we knew from the start we wanted to do a business plan for a healthy Food Truck, our concept got better defined and more creative after all this analytical research phase. Some details we added include a sustainable packaging system, community decisions via social networks, a nutritionist program and more (see "Enhancing Services" in service package picture). We defined our mission as a service for college communities that offers healthy and organic food that is easily accessible. Our vision was to lead students to a healthier lifestyle, helping them towards a more sustainable behavior.  In the business plan, we covered some of our research, the marketing plan, the operations plan a quick description of the team and organization, finances and the implementation roadmap. The financial plan is definitely what we struggled more with. It was scheduled for the end of the quarter and we had to make a few changes to the entire business in order to balance our costs and revenue and eventually break-even at the end of the second year. One major change we made was that originally, our business worked with only local ingredients and in this way, promoted local businesses. Unfortunately this was way too expensive and we had to cut it - get fruits and vegetables at the farmer's market but the rest would come through wholesale distribution. We also realized we would have to work on weekends for the first two years in order to reach our break-even point. Finances is definitely the chapter where we learned the most (since we don't have finance experience) and that made us realize how challenging it would be to start this business. However, now that we have numbers down, I feel like we could actually start it - after all this work, it feels almost real! This project was really fun to work on. Molly and I got along great and although we were only two, we loved working on it and got through everything together. I appreciated the freedom our professor gave us as she acted more as a guide making sure we were on the right track but still teaching us along the way. PS. Fresh Leaves is the name of our service because food is freshly made and "leaves" remind of nature but also comes from the verb leaving which associates perfectly with our delivery system: the truck!

This past class we were given the opportunity to sit and talk with entrepreneurs in the Savannah area. This meeting was set up through the Creative Coast, located here in Savannah. The Creative Coast is a developing environment of creative and innovative driven individuals striving to make their dream happen. The Creative Coast has taken over the previously known building for Sculpture here at SCAD. We were informed they strive to turn this building into a communal meetup sanctuary to have coffee and talk about ideas and what not.

This opportunity we were given was extremely helpful as we move forward with our project of developing a new to the world service along with a business plan and everything else it entails. SCAD is full of so many creative minds, but actually learning how to implement that into the real world is a huge aspect that may be missed out on in most majors. I was able to gain a fresh understanding of what it takes to start a business, or even just what it is going to take to follow through with this new to the world service project.

A few things I learned from the Entrepreneurs:

Build the company how you want; and around desired lifestyle

Train yourself to spot opportunity & find gaps through similar sectors

As a start-up, when trying to gain clients: don't show all your cards at once

Strategic plan is on a continuum; it changes everyday

Be an expertise in every aspect

Choose team wisely - need complimenting skills

We are all human: when having a roadblock - do what you need to do whether that means going to walk your dog or having a beer.. give yourself a break

For Services & Enterprises we are creating a new to the world service and creating a business plan along with a pitch. Our professor suggested we attend the Investor Pitch Day in Savannah, which took place at our SCAD Museum of Art. There were multiple pitches all lasting 10 minutes long. I can sit back and reflect on the different ideas or products or services that were being pitched, but what is more important (and the reason we were told to attend) is how the pitches were conducted and what they consisted of. One that really stuck out to me was for Aetho LLC, in which a current SCAD student is actually part of the company and was representing as the pitcher. It obviously helped that the product was very intriguing, being that it was a GoPro or Camera stabilizer for recording things such as skateboarding or snowboarding, etc. Not only the company or product, but how the SCAD student, Ian, spoke was very engaging. He started with a brief introduction then a short video, then more in depth about the investment necessary to proceed. The slides correlated with how he was speaking which really grabbed my attention. Another that stuck out was the pitch for CREATOMbuilder, done by the CEO of the company. Besides another interesting service being implemented, the slides the woman used were very simple and comprehensive. The presentation had diagrams drawn by hand that were neat and successful in getting the point across. What I learned to think about when it comes time for my pitch:

Confidence is key

Engage the audience

Don't bore with numbers and complicated diagrams

The less on the screen the better. ( I was able to see or read what was on the screen as well as listen to the speaker when this was done successfully)

Simplicity gets the point across

My partner Charlotte and I have recently dug deep into the grocery / supermarket service industry. We analyzed the brands of Publix and Whole Foods. Each have their own unique identity and customer base. Of course like every service sector, there are pain points found through the process of the customer actions, which could be worked towards increasing. We are now beginning the research into our target market for the service we will be developing. The current status of our new to the world service is the discovery stage of who the customer is and why they would want / need our service. We are currently finding the service failure aspects within the current industry of supermarkets. The most recent part of the assignment we are working towards is the customer job map, which identifies the customer through 8 steps of:

Define, Locate, Prepare, Confirm, Execute, Monitor, Modify, & Conclude

The map then goes into how companies can innovate those customer issues, with a following example of how that is possibly already implemented out there.

Today, Samsung Electronics is one of the most innovative product driven companies world-wide. Since the beginning, their vision was product driven. In 1971, only two years after their launch, the goal was to "develop models based on advanced products". 20 years later, they established an industrial design department but designers still reported to engineers, who had the final word. They were building products thinking of quality first and not necessarily of the experience. In 1996, however, the chairman decided to make a lot of changes and called this the first revolution. He announced that design was a "strategic edge and priority for investment" and that strength should be used to develop unique designs. It was all about developing a "premium brand". From that moment on, they made changes to the people hired and recruited designers worldwide to bring different perspectives, they organized a design course for senior managers and managers were supposed to "adopt a designer's mindset". In this change, they also changed their facilities into design centers by "building a state-of-the-art R&D center", creating Samsung Advanced Institute of Technology, right next to the factory and opening a design center with strategists and researchers. All these changes only brought positive outcomes as they won more and more awards including 62 design prizes worldwide just in 2005. In the second design revolution, they understood IDEO's frameworks and applied a human emotional connection to their products. They invented the Quatro refrigerator for example, which can

adapt temperatures in different compartments. It was about understanding the needs of different people and different foods. Today, Samsung is still designing for human desirability, connecting with users in an innovative manner.  Sources: Customer Intimacy and Other Value Disciplines by Treacy & Wiersema

Innovation, growth and getting where you want to go by Jacoby and Rodriguez