MGT802 DESIGN THINKING AND INNOVATIVE ENTREPRENEURSHIP
MGT802 DESIGN THINKING AND INNOVATIVE ENTREPRENEURSHIP
Assessment One
Automatic Shopping Cart
Student name: Sebastian Sunny
Student ID: 13525263
Table of contents
TOC h u z t "Heading 1,1,Heading 2,2,Heading 3,3,Heading 4,4,Heading 5,5,Heading 6,6," HYPERLINK l "_heading=h.gjdgxs" Introduction3
HYPERLINK l "_heading=h.1fob9te" New product idea3
HYPERLINK l "_heading=h.3znysh7" Customer problem3
HYPERLINK l "_heading=h.2et92p0" Background3
HYPERLINK l "_heading=h.tyjcwt" Current trends3
HYPERLINK l "_heading=h.3dy6vkm" Design Thinking Process4
HYPERLINK l "_heading=h.1t3h5sf" Empathy map5
HYPERLINK l "_heading=h.4d34og8" Define6
HYPERLINK l "_heading=h.2s8eyo1" Reframing around user needs6
HYPERLINK l "_heading=h.17dp8vu" Ideate7
HYPERLINK l "_heading=h.3rdcrjn" Generating diverse ideas and concepts7
HYPERLINK l "_heading=h.26in1rg" Selecting ideas7
HYPERLINK l "_heading=h.lnxbz9" List of the selected ideas7
HYPERLINK l "_heading=h.35nkun2" Prototype8
HYPERLINK l "_heading=h.1ksv4uv" Conclusion9
References10
Introduction
The sections provided below ensure delivering significant information regarding the overall ideas and reasons for an automatic shopping cart development and the required aspects, such as the prototype building using the necessary resources.
New product idea
Customer problem
The customer problem which can be associated with the overall utilisation of the current shopping carts is the difficulty of carrying the items using the card while moving from one shopping area to another within the complexes and further decreasing customer satisfaction and leading to greater time consumption of dragging the cart to the cash counter (Jiang, Zhang & Wang, 2021). Another problem to which the customers become vulnerable is the probability of faulty conditions of the cards (Stark & Stark, 2020). Background
The traditional shopping carts which have been used to date in the current market complexes involve a considerable amount of laborious work for both the customers and the employees, who are increasingly required to check and release the items that have been collected by the customers (Ritchie, Longino, Garza & Katranci, 2021). According to the opinions presented by Arciuolo & Abuzneid (2019), such equipment mainly results in larger time consumption as the employees within the cash counter have to pick up the required items for scanning one by one, further followed by packing the items up for the customer Upgrades within such equipment can, therefore, become the source of satisfaction of all the stakeholders.
Current trends
Uses of automation and robots for delivery services to customers is the current trend that can be observed through the examples provided in the research of Mazli and Azizan (2023). Several supply chain operations, according to the authors, are now currently using advanced robotic machines operated using the automated codes which are embedded within the control systems, decreasing the amount of time and effort to achieve accuracy in terms of inventory maintenance and resource extraction Anifa et al. (2022). Similar examples through pictorial representation have been provided within the research of Chauhan, Brouwer & Westra (2022).
Design Thinking process
Consumer persona 1:
Figure 1: Consumer Persona 1
Source: (self-made)
Consumer persona 2:
Figure 2: Consumer person 2
Source: Self-made
Empathy map
Empathy mapping based on 1st persona:
SAYSI am disappointed with the service.
There could have been automatic service provisions
I was expecting further improvement
THANKS
I wont experience automation advantages any time soon
I want to get rid of such time-consuming services
DOES
Explores different shopping complexes
Look for faster checkout processes upon visiting new shops.
FEELS
Disappointed
Longing
Angry
Empathy mapping based on the 2nd persona:
SAYSI am disappointed with the service.
There could have been automatic service provisions
I was expecting further improvement
THANKS
I wont experience automation advantages in the long run
I will be late in reaching my destination because of such difficulties
DOES
Explores different shopping complexes
Look for faster checkout processes upon visiting new shops.
FEELS
Hopeful
Angry
Define
Original challenge: Creating a new automatic shopping cart because of the different types of delay-based difficulties and further requirement of easier transactions while collecting the items from the stores in real-time.
Reframing around user needs
Persona 1: A communicator
Reframed version of the original challenge: to develop faster productivity in everyday life by easier usage and comfortable experiences through the development of automatic shopping carts for Saurav.
Explanation: it can be understood from the presented persona in figure 1 that the primary characteristics which the consumer possesses as a Sales assistant include identifying the sources and paths to the desired results within the shortest time period possible (Anifa et al. 2022) . Therefore, the time-oriented personality of the first customer ultimately defines the reframed version of the challenge mentioned above.
Point of view statement: Saurav needs a way to use an automatic shopping cart because of the requirement of lower time consumption and greater payment comfort.
Persona 2: A team leader
Reframed version of the original challenge: To generate further success opportunities and lower shopping discomforts for Tina by creating an automatic shopping cart.
Explanation: it can be understood from the consumer persona presented in figure 2 that the responsibilities of the second customer are much larger compared to the first customer. Therefore greater chances of increased stresses and job-based anxieties can be possible in such cases (Lange & Kayser, 2022).
Point of view statement: Tina needs a way to use an automatic shopping cart because of the requirement of lower time consumption and greater shopping comfort.
Ideate
Generating diverse ideas and concepts
The primary techniques using which the ideas and concepts regarding the development of the automatic shopping cart will take place for customer comfort will include:
Brainstorming: This process will involve the collective decision of all the members for the development of an economical way for production.
Sketching: This process will be the direct result of the brainstorming process and will allow a rough idea of the resources required and the placement of the resources.
Prototyping: This process will allow the members to bring the sketches to real-life applications. Permutations and combinations of the resource placement and working of the product will take place.
List of the selected ideas
The different selected ideas can be categorised into different types of areas based on the overall elements of the Four Categories Method
Most rational: The development of an automatic payment software and installing the software on the shopping cart through an external device.
Most delightful: The development of an automatic shopping cart with self-moving and voice-based facilities for indicating the customer the exact location of the aisle and the items to be bought.
Darling: The development of an automatic shopping cart that can significantly use an incorporated Artificial Intelligence for playing and changing songs as per the mood of the customers.
Long shot: the development of an automatic billing software and installing the software in combination with RFID on the shopping cart (Abugabah, Nizamuddin & Abuqabbeh, 2020).
Prototype
Figure 3: Overall prototype idea for Automatic shopping cart
Source: derived from Shahroz et al. (2020)
The characteristics of the overall idea will include the development of faster payment and price detection through the inclusion of the Arduino uno circuit and the combined usage of Bluetooth signal creation for online mobile scanning application payment (Ismailov & JoRayev, 2022).
The flow of operation of the automatic shopping cart can be given below as follows:
Figure 4: Flow of operation of the proposed automatic shopping cart
Source: derived from Shahroz et al. (2020)
Conclusion
The development of the proposed automatic shopping cart within the market area will include greater cost-effectiveness alongside the required customer comfort as the exact time-based requirements and greater efficiency achievement of the customers will be achieved through the proposed idea as per the analysed consumer persona.
References
Abugabah, A., Nizamuddin, N., & Abuqabbeh, A. (2020). A review of challenges and barriers implementing RFID technology in the Healthcare sector. Procedia Computer Science, 170, 1003-1010. Retrieved 14 November 2023 from https://doi.org/10.1016/j.procs.2020.03.094
Ismailov, A. S., & JoRayev, Z. B. (2022). Study of arduino microcontroller board. Science and Education, 3(3), 172-179. Retrieved 14 November 2023 from https://www.researchgate.net/profile/Alisher-Ismailov/publication/359502443_Study_of_arduino_microcontroller_board/links/62402fca8068956f3c50ea36/Study-of-arduino-microcontroller-board.pdf
Jiang, D., Zhang, G., & Wang, L. (2021). Empty the shopping cart? The effect of shopping cart item sorting on online shopping cart abandonment behavior. Journal of Theoretical and Applied Electronic Commerce Research, 16(6), 1973-1996. Retrieved 12 November 2023 from https://doi.org/10.3390/jtaer16060111
Mazli, H. N. A., & Azizan, A. Z. (2023). A Foresight Study on Baby Boomers towards Using Robots in Replacing Carts at Supermarkets. Research in Management of Technology and Business, 4(1), 330-347. Retrieved 12 November 2023 from https://penerbit.uthm.edu.my/periodicals/index.php/rmtb/article/download/11665/3606
Chauhan, A., Brouwer, B., & Westra, E. (2022). Robotics for a quality-driven post-harvest supply chain. Current Robotics Reports, 3(2), 39-48. Retrieved 12 November 2023 from https://doi.org/10.1007/s43154-022-00075-8
Anifa, M., Jeyanthi, M., Hack-Polay, D., Mahmoud, A. B., & Grigoriou, N. (2022). Segmenting the Retail Customers: A Multi-Model Approach of Clustering in Machine Learning. In Handbook of Research on Consumer Behavior Change and Data Analytics in the Socio-Digital Era (pp. 25-50). IGI Global. Retrieved 12 November 2023 from https://doi.org/10.4018/978-1-6684-4168-8.ch002
Ritchie, M., Longino, T., Garza, D., & Katranci, A. (2021). Optimised automated checkout process for major food retailers. Retrieved 12 November 2023 from https://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1057&context=egr_srdsn
Stark, J., & Stark, J. (2020). Digital Transformation of a Retail Store. Digital Transformation of Industry: Continuing Change, 73-77. Retrieved 12 November 2023 from https://link.springer.com/chapter/10.1007/978-3-030-41001-8_12
Lange, M., & Kayser, I. (2022). The role of self-efficacy, work-related autonomy and work-family conflict on employees stress level during home-based remote work in Germany. International Journal of Environmental Research and Public Health, 19(9), 4955. Retrieved 12 November 2023 from https://doi.org/10.3390/ijerph19094955
Shahroz, M., Mushtaq, M. F., Ahmad, M., Ullah, S., Mehmood, A., & Choi, G. S. (2020). IoT-based smart shopping cart using radio frequency identification. IEEE Access, 8, 68426-68438. Retrieved 12 November 2023 from https://doi.org/10.1109/ACCESS.2020.2986681
Arciuolo, T., & Abuzneid, A. S. (2019, December). Simultaneously shop, bag, and checkout (2SBC-Cart): a smart cart for expedited supermarket shopping. In 2019 international conference on computational science and computational intelligence (CSCI) (pp. 1162-1167). IEEE. Retrieved 12 November 2023 from https://doi.org/10.1109/CSCI49370.2019.00219
Designed for: Designed by: Date: Version:
Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS: Optimization and economy, Reduction of risk and uncertainty, Acquisition of particular resources and activities
What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams?
CATEGORIES:
Production, Problem Solving, Platform/Network
What value do we deliver to the customer? Which one of our customers problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying?
CHARACTERISTICS: Newness, Performance, Customization, Getting the Job Done, Design, Brand/Status, Price, Cost Reduction, Risk Reduction, Accessibility, Convenience/Usability
What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they?
For whom are we creating value? Who are our most important customers? Is our customer base a Mass Market, Niche Market, Segmented, Diversified, Multi-sided Platform
Key Resources Channels What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships Revenue Streams?
TYPES OF RESOURCES: Physical, Intellectual (brand patents, copyrights, data), Human, Financial
Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines?
Cost Structure Revenue Streams
What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing), Value Driven (focused on value creation, premium value proposition).
SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, utilities), Variable costs, Economies of scale, Economies of scope For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing, Licensing, Brokerage fees, Advertising
FIXED PRICING: List Price, Product feature dependent, Customer segment dependent, Volume dependent
DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real-time-Market
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Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
The suppliers of developing new innovative products are those companies from which different technologies such as AI, Bluetooth technology, RFID tags and so on will be bought. The partners also include companies that will supply different hardware.
The key activities will include:
Seamless customer shopping
Automatic payment option
Playing songs as per moods
The value created by the innovation are:
Creating a seamless and easier shopping experience
More personalised shopping-related suggestion
Automatic payment options
Freedom from standing in a long queue
Reducing effort to buy goods
Playing songs as per customers' mood
An effective professional relationship needs to be developed. Customer segments are not costly to attract.
Busy people mainly officegoers are target customers
Key Resources Channels The resources that the innovation are needed are:
Technologies to develop the product
Financial resources
HUmna resources to develop the product
Physical resources
Different print media will be used
A social media marketing strategy will be used
Cost Structure Revenue Streams
The product includes premium features. Therefore, it is important to follow a premium pricing strategy. Angel investors
Taking loans from banks
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