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1.Identify the problem to be solved or need to be filled.
2.Explain how the project will be conducted. Will it be managed using an iterative or traditional method? Include details of what is meant by iterative and traditional.
3.Describe how you believe is the best way to measure the success of the project and explain why your suggested measures are appropriate over alternative measures.

Iterative Technology vs Traditional Methods

Although smart phones provide various features to the users of the community; however, it has a number of adverse effects as well. As commented by Aehnelt and Urban (2014), one out of ten smart phone users uses the same in showers. Smart phone addiction, particularly among children, is the altering the way of interactions. This is because the users are observed to be involved more in digital interaction rather than human interactions. Hence, by introducing smart watch and increasing its popularity in Melbourne, would assist in minimising this issue.

Iterative technology denotes the current day technology used in the business houses for production. With the help of modern mechanism, it becomes possible to increase the production capacity and efficiency of the plant (Chittenden and Derregia 2015). On the other hand, traditional methods include those that emphasise on increasing production in conventional ways. However, this method consumes enormous time and effort. However, for the smart watch business plan, the primary source is to electronic paper, which consumes less power. Therefore, the targeted area is Melbourne in Australia. The technology utilised is a rechargeable lithium-ion battery, which is needed for charging the smart watches. Moreover, as smart watches need electronic or transflective paper, there would be lower power consumption and the same could be reused for the future.  Therefore, the project would be managed by the iterative method.

The success of any start-up business always relies on the utilisation of the project. Hence, the success policy of smart watch project relies on the below-stated aspects:

  • Smart watch is a sound replacement of smart phones and it is deemed to be eco-friendly.
  • As it is an alternative energy generation source, it is projected that the community individuals would like the product.
  • There would be no initial costing associated with the business plan and thus, it is economical to initiate with this project in contrast to the other projects (Chuah et al. 2016).
  • The primary unique selling proposition of the project is maximum profit with minimum investment. Therefore, the project would be valuable for the organisation along with the community people as well.

By taking into consideration all the above-discussed aspects, the smart watch business plan would be more useful compared to the other projects owing to the fact that it is budget-friendly and in addition, it would draw additional customers largely. In a similar manner, as smart watches are manufactured using a reusable energy generation source, it would assist the local community and the business houses and they do not have to rely upon other sources (Hong, Lin and Hsieh 2017).

The smart watch business is a business project, which is intended to meet the long-term needs of the community in Melbourne, Australia. Since smart watches are developed from eco-friendly products, the expectations of the community people from this project would be high. Apart from this, the smart watches are easy to be afforded by majority of the individuals owing to lower cost than smart phones, the middle-class individuals residing in Melbourne, Australia would be benefitted from this project as well. However, for obtaining feedbacks from the customers, it has been planned to start the project in the popular areas of the city. In addition, the adverse effect of smart phones would be minimised, when people start using smart watches (Beaver 2016). Thus, positive feedback would lead to rise in the number of new outlets selling smart watches in the other Australian cities.  

Success Policy of Smart Watch Project

Before initiating the smart watch business, it is necessary to determine the strengths and weaknesses of the same. Besides, the likely opportunities and threats are to be looked after by the project manager as well. Therefore, SWOT analysis is used for determining the likely feasibility of the project:

Strengths:

· Design and innovation

· 5 language control

· Useful to older persons and women

· Integration of hardware with numerous open source software and operating system

· Made in Australia

· Capability of marketing the brand

· Minimised cost of production

Weaknesses:

· New in the market

· Significantly lower profit margin

· Lack in own operating system and software

Opportunities:

· New introduction in the market

· Increasing demand for quality application processors

· Development of job opportunities for the local community

· Varying needs or preferences of the customers

Threats:

· Threat of competition

· Acceptance

· Rapid change in technology

· Variation in needs of the customers

With the increase in globalisation, people are looking for alternatives to smart phones for getting rid of the adverse effects. However, the same needs to be cost-effective and beneficial to the community as well (Hsiao 2017). The people living in Melbourne, Australia have high addiction towards smart phones and thus, the initiation of smart watch would be a step to minimise this issue. 

For starting this project, the initial investment is estimated to be $50,000. Based on this, the organisation has forecasted its net cash flows for five years, in which the cost of capital is assumed as 10%. The techniques used for analysing the investment include net present value, internal rate of return and payback period. From the above table, it could be seen that the organisation would have positive net present value of $60,027, which is a good indicator for undertaking the project (Andor, Mohanty and Toth 2015). The payback period is calculated as 2.47 years, which is lower than economic life of the project. The case is similar in case of internal rate of return as well, which is computed as 44% more than the estimated cost of capital of 10%. Hence, from the profitability perspective, the project is deemed to be feasible and it has sound business prospect (De Andrés, De Fuente and San Martín 2015).

With the emergence of new smart watch models, the smart phone users would have alternatives available, which are expected to have the following benefits:

Since people likes to stay updated, smart watches provide the option of making and receiving calls along with obtaining updates (Jeong, Byun and Jeong 2016). Moreover, it would provide alerts, text messages and updates as well.

Unlike smart phones, smart watches could be afforded easily. Smart phones are complemented largely owing to which the cell phone organisations are promoting and selling them. Moreover, the increasingly anticipated models are greatly affordable.

There would be few smart watch models, which have built-in flash drives along with cloud data, gesture control and built-in activity trackers (Kracheel, Bronzi and Kazemi 2014). By looking at the smart watch, it becomes possible to determine whether any phone call needs to be answered or not.

SWOT Analysis

The following are the major requirements needed to carry out the smart watch project:

  • Land acquisition
  • Human resources such as labour
  • Raw materials and machinery
  • Promotional and marketing activities

For undertaking this project, the organisation has made the following set of assumptions:

  • There is availability of land for plant set-up
  • All raw materials and machineries would be available for the project
  • The labour would be available at cheaper cost
  • The organisation would have the needed experts in order to manage the overall mechanism 

This business plan would have the following constraints:

Chance of imitation:

Since smart watches are not entirely a new concept, there is high chance that the models designed by the organisation could be imitated by its competitors, which, in turn, would result in reduction of net cash flows (Lyons 2016).

Low profit margin in the short-run:

Since Apple has captured a larger portion of market share, it would be difficult for the concerned organisation to match up with the quality of smart watches provided by Apple Inc. Therefore, the organisation has to minimise the selling price leading to fall in overall profitability (Morabito 2016).

The overall cost of the project is estimated at $50,000. The distribution of cost of the assumed project is discussed as follows:

Particulars

Amount

Raw material cost

$8,000

Labour charges

$12,000

Land acquisition cost

$9,000

Machinery repairs expense

$7,000

Other expenses

$14,000

Total cost

$50,000

In this case, it is estimated that the project would cost around $50,000 and no further allocation would take place in future. Therefore, the budget amount of $50,000 would be constant.

The following are the significant risks identified for the project:

  • Risk of location
  • Natural disasters
  • Financial risk
  • Electrical and mechanical failure

For managing location risk, the outlets would be opened in some popular areas of the city having crowded community. In case of natural disasters, the organisation would set aside a provision for catering to any likely damage (Ogbanufe and Gerhart 2018).  For dealing with financial risks like failure to repay debt or loan, provision for doubtful debts needs to be maintained. Finally, in case of electrical and mechanical failure, the project manager would jeep some funds aside in order to ensure adequate machine maintenance (Rossi 2014).

The estimated timeline for project completion is within a year. The project is anticipated to start from 1st April 2019 and it would be finished by 31st March 2020. The project manager of the organisation needs to perform a series of activities, which are demonstrated briefly as follows:

Date

Activity

1st April 2019

Acquisition of land

15th April 2019

Buying raw materials and recruiting labour force

15th July 2019

Appointing expert machine operator

15th September 2019

Setting up outlets

15th December 2019

Additional emphasis on marketing and promotion activities

31st March 2019

Completion of the project

Conclusion:

Based on the above discussion, it could be stated that the initiation of smart watch technology would help in resolving the adverse effects of smart phones in Melbourne, Australia. The project would benefit both the rich and the middle class segments of the society by keeping in line with eco-friendly products. The products would be made up of environment-friendly items and thus, it would curb the negative effects of the users using smart phones. For starting this project, the expected cost to be incurred is $50,000. However, it has been evaluated that the project would be favourable for the organisation, as analysed from the investment appraisal techniques used. Finally, the project needs adequate human resources and time for providing maximum benefits to the community. 

References and Bibliographies:

Aehnelt, M. and Urban, B., 2014, June. Follow-me: smartwatch assistance on the shop floor. In International Conference on HCI in Business (pp. 279-287). Springer, Cham.

Andor, G., Mohanty, S.K. and Toth, T., 2015. Capital budgeting practices: A survey of Central and Eastern European firms. Emerging Markets Review, 23, pp.148-172.

Beaver, L., 2016. THE SMARTWATCH REPORT: Forecasts adoption trends and why the market isn't living up to the hype. Business Insider, pp.1-3.

Chittenden, F. and Derregia, M., 2015. Uncertainty, irreversibility and the use of ‘rules of thumb’in capital budgeting. The British Accounting Review, 47(3), pp.225-236.

Chuah, S.H.W., Rauschnabel, P.A., Krey, N., Nguyen, B., Ramayah, T. and Lade, S., 2016. Wearable technologies: The role of usefulness and visibility in smartwatch adoption. Computers in Human Behavior, 65, pp.276-284.

De Andrés, P., De Fuente, G. and San Martín, P., 2015. Capital budgeting practices in Spain. BRQ Business Research Quarterly, 18(1), pp.37-56.

Hong, J.C., Lin, P.H. and Hsieh, P.C., 2017. The effect of consumer innovativeness on perceived value and continuance intention to use smartwatch. Computers in Human Behavior, 67, pp.264-272.

Hsiao, K.L., 2017. What drives smartwatch adoption intention? Comparing Apple and non-Apple watches. Library Hi Tech, 35(1), pp.186-206.

Jeong, S.C., Byun, J.S. and Jeong, Y.J., 2016. The effect of user experience and perceived similarity of smartphone on acceptance intention for smartwatch. ICIC Express Letters, 10(7), pp.1613-1619.

Kracheel, M., Bronzi, W. and Kazemi, H., 2014. A Wearable Revolution: Is the smartwatch the next small big thing?. IT ONE Magazine 2014, 7(December), pp.18-19.

Lyons, K., 2016. Smartwatch Innovation: Exploring a Watch-First Model. IEEE Pervasive Computing, 15(1), pp.10-13.

Morabito, V., 2016. The future of digital business innovation: Trends and practices. Springer.

Ogbanufe, O. and Gerhart, N., 2018. Watch it! factors driving continued feature use of the smartwatch. International Journal of Human–Computer Interaction, 34(11), pp.999-1014.

Rossi, M., 2014. Capital budgeting in Europe: confronting theory with practice. International Journal of Managerial and Financial Accounting, 6(4), pp.341-356.

Singh, S. and Singh, N., 2015, October. Internet of Things (IoT): Security challenges, business opportunities & reference architecture for E-commerce. In 2015 International Conference on Green Computing and Internet of Things (ICGCIoT) (pp. 1577-1581). IEEE.

Wu, L.H., Wu, L.C. and Chang, S.C., 2016. Exploring consumers’ intention to accept smartwatch. Computers in Human Behavior, 64, pp.383-392.

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